HomeMy WebLinkAbout2017-09-19 ResolutionM
Prepared by: City Clerk's Office, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5043
RESOLUTION NO. 17-293
RESOLUTION TO ISSUE DANCING PERMIT
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing
Permit as provided by law is hereby granted to the following named person and at the
following described locations upon his/her filing an application, having endorsed thereon
the certificates of the proper city officials as to having complied with all regulations and
ordinances, having a valid beer, liquor, or wine license/permit, to wit:
Blue Moose - 211 Iowa Ave.
Studio 13 - 13 S. Linn St.
Passed and approved this 19th day of September/ 2017
G.
NIA
YOR
ATTES Cie
CI CLERK
Approved by
City Attorney's Office
It was moved by Botchway and seconded by Dickens
Resolution be adopted, and upon roll call there were:
AYES:
NAYS:
ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Prepared by: Dennis Bockenstedt, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319)356-5053
Resolution No. 17-294
Resolution Naming Depositories
Now therefore, be it resolved by the City Council of the City of Iowa City, Iowa that the
City of Iowa City, in Johnson County, Iowa, approves the following list of financial institutions to be depositories of
the City of Iowa City funds in conformance with applicable provisions of Iowa Code Chapter 12C.2. The City
Treasurer is hereby authorized to deposit the City of Iowa City funds in amounts not to exceed the maximum
approved for each respective financial institution as set out below.
Maximum Balance Maximum Balance
Depository
Name
Location of Home Office
Local Location
in effect under
prior resolution
in effect under
this resolution
U.S. Bank N.A.
800 Nicollet Mall
204 E Washington St
65,000,000.00
65,000,000.00
Minneapolis, MN 55402
Iowa City, IA 52240
MidWestOne Bank
102 S Clinton Sl
Same
100,000,000.00
100,000,000.00
Iowa City, IA 52244-1700
Hills Bank & Trust Co.
131 Main St
132 E Washington St
25,000,000.00
25,000,000.00
Hills, IA 52235
Iowa City, IA 52240
Regions Bank
PO Box 387
501 12th Ave, Ste 100
35,000,000.00
35,000,000.00
Memphis, TN 38147-0001
Coralville, IA 52241
West Bancorporation, Inc.
1601 22nd St., Suite 209
229 S Dubuque
35,000,000.00
35,000,000.00
West Des Moines, IA 50266
Iowa City, IA 52240
Bank of the West
P.O. Box 73850
301 S. Clinton St
75,000,000.00
75,000,000.00
Cedar Rapids, IA 52407-3850
Iowa City, IA 52240
Wells Fargo Bank, N.A.
666 Walnut St
103 E College St
50,000,000.00
50,000,000.00
Des Moines, IA 50309
Iowa City, IA 52240
University of Iowa
500 Iowa Ave
Same
50,000,000.00
50,000,000.00
Community Credit Union
Iowa City, IA 522442240
CBI Bank & Trust
140 Holiday Rd
Same
15,000,000.00
15,000,000.00
Coralville, IA 52241
Farmers & Merchants
1550 S Gilbert St
Same
15,000,000.00
15,000,000.00
Savings Bank
Iowa City, IA 52240
Liberty Bank
6400 Westown Parkway
205 E College
25,000,000.00
25,000,000.00
Des Moines, IA 50266
Iowa City, IA 52240
First American Bank
1207 Central Ave
640 Highway 1 W
35,000,000.00
35,000,000.00
Fort Dodge, IA 50501
Iowa City, IA 52246
Two Rivers Bank & Trust
222 N Main St
805 22nd Ave
15,000,000.00
15,000,000.00
Burlington, IA 52601
Coralville, IA 52241
Cedar Rapids Bank & Trust
500 1st Ave NE, Ste 100
Same
20,000,000.00
50,000,000.00
Cedar Rapids, IA 52401
Bankers Trust 221 Third Ave SE Same 20,000,000.00
Cedar Rapids, IA 52406
NXT Bank 119 2nd St, Ste 100 Same 2,000,000.00
Coralville, IA 52241
Passed and approved this 19th day of September 2017
M or
20,000,000.00
oved by
Attes 2 t7-/1-17
City Cl®r c City Attorney's Office
Resolution No. 17-294
Page 3
It was moved by Botchway and seconded by Dickens
Resolution be adopted, and upon roll call there were:
AYES: NAYS
ABSENT: ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
r 1 CITY OF IOWA CIT
COUNCIL ACTION REPO
091917
3d(2)
September 19, 2017
Resolution Naming Depositories
Prepared By: Brian Cover, Senior Accountant
Reviewed By: Dennis Bockenstedt, Finance Director
Simon Andrew, Assistant to the City Manager
Fiscal Impact: No impact
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution Naming Depositories
Executive Summary:
The City of Iowa City maintains a list of financial institutions authorized to be depositories of the
city's funds. The list that is on file needs to be updated to reflect changes that have occurred.
Background /Analysis:
Cedar Rapids Bank & Trust has requested to have their maximum balance raised from
$20,000,000 to $50,000,000. They are close to their maximum limit and with their pending
acquisition of Guaranty Bank, they will have more funds available. The resolution naming
depositories being presented would update the list of financial institutions that the City of Iowa
City maintains.
-`�C,(()
Prepared by: Sara Sproule, Assistant Controller, & Ron Knoche, Public Works Director, 410 E.
Washington St., Iowa City, IA 52240, 319-356-508815138
Resolution No. 17-295
Resolution approving the City Street Financial Report for the
fiscal year ending June 30, 2017.
Be it resolved by the City Council of the City of Iowa City, Iowa, that the City Street Financial
Report for the period beginning July 1, 2016, through June 30, 2017, be approved.
Passed and approved this 19th day of September , 2017.
Ma or
Attek
ity Clerk
Approved by
City Attorney's Office
It was moved by sotchway and seconded by Dickens
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
the Resolution be
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
� r �
_r =
• wr®14■4
11
CITY OF 1 O WA CIT 09-19-17
COUNCIL ACTION REPO 3d131
September 19, 2017
Resolution approving the City Street Financial Report for the fiscal year
ending June 30, 2017.
Prepared By: Sara Sproule, Assistant Controller
Reviewed By: Simon Andrew, Assistant to the City Manager
Dennis Bockenstedt, Finance Director
Fiscal Impact: If not approved and submitted by September 30, 2017 the City could risk
losing annual Road Use Tax funding. For fiscal year 2018 this is
budgeted at $8,320,120.
Recommendations: Staff: Approval
Commission: N/A
Attachments: City Street Financial Report
Executive Summary:
Iowa Code section 312.14 requires all cities to submit the Street Financial Report (SFR) to the
Iowa Department of Transportation (DOT) by September 30 of each year. In accordance with
Iowa Code section 312.15, the Iowa DOT must notify the state treasurer of each city not in
compliance with this requirement. Once notified, the state treasurer will withhold the Road Use
Tax (RUT) funds allocated to the city until the city complies. If a city has not filed its report by
December 15 of the same year, RUT funds shall not be allocated to that city and all funds
withheld under this provision shall revert to the street construction funds of the cities.
Background / Analysis:
The Street Financial report is required to include revenues and expenditures in the Road Use
Tax Fund, Other Street Monies which applies to revenues and expenditures with any city
monies for street purposes only, and Street Debt which includes bonds, notes and loans for only
street related revenues and expenses for any debt service payments.
Road Use Tax receipts for the City of Iowa City for fiscal year 2017 were $8,424,638.
Expenditures covered by RUT funds totaled $7,603,366 including $5,555,125 for Roadway
Maintenance, $744,213 for Administration and $707,234 for Street/Bridge Construction.
Other Street Monies receipts were $30,943,364. This includes $11,000,000 of Local Option
Sales Tax, various Federal and State grants of $8,382,926 and the Streets/Bridges portion of
General Obligation debt of $5,712,525. Other Street Monies expenditures were $29,181,694.
The majority of this expenditure was for Street/Bridge Construction and Engineering/Consultant
Fees totaling $27,937,066. This was comprised of various projects such as the Iowa City
Gateway Project (Dubuque Street Elevation and Park Road Bridge Replacement) in the amount
of $19,565,950, the First Avenue/IAIS Railroad Crossing Improvements project in the amount of
$3,891,878, and the Washington Street Construction project in the amount of $3,284,954.
piowao T
Form 517007 (5-2017)
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
Ci(y N11111her
3715
City Street Financial Report
Cover Sheet
Now therefore let it be resolved that the city council IOWA CITY , Iowa
(City Name)
On did hereby approve and adopt the annual
(munth/day/year)
City Street Financial Report from July 1, 2016 to June 30, 2017
(Year) (Year)
Contact Information
9"6 0174:!1 PM
Fi,ea� 1Yeer
I of 10
Name
E-mail Address
Street Address city
ZIP Code
Sara Sproule
Sara-sproule@iowa-city.org
410 East Washington Street Iowa City
52240-1826
Hours
lPhone
Extension
Phon Alterative)
8:00 AM - 5:00 PM
319-356-5088
i
1319-356-5088
Preparer Information
Name E-mail Address Phone Extension
Sara Sproule & Ron Knoche Sara-sproule@iowa-city.org 319-356-5088 319-356-5138
Mayor Information
ame
E-mail Address
IStreet Address
city
Zip Code
Jim Throgmorton
im-throgmorton@iowa-city.org
1410 East Washington Street
Ilowa City
52240-1826
Extension
rone
319-356-5010
Resolution Number
Signature Mayor Signature City Clerk
GPIOWAMT
Form 517007 (5-2017)
Office of Local Systems
Ames, 1A 50010
City Name
IOWA CITY
('ihM1un;f.er
3'715
City Street Financial Report
Summary Statement Sheet
Column 1 Column 2 Column 3 Column 4
Road use Other Steeet Street Debt Totals
Tax Fund Monies
Round Figures to Nearest Dollars
FLeat Year
2017
2 o 10
Column 1 Column 2 Column 3 Column 4
Road use Other Steeet Street Debt Totals
Tax Fund Monies
Round Figures to Nearest Dollars
A.BEGINNING BALANCE
EXPENSES
1. July 1 Balance
$7,431,938
$7,002,540
$21,444,154
$35.878,632
D. Maintenance
2. Adjustments
(Note on Explanation
Sheet)
$0
$0
$0
$O
1. RoadWay Maintenance
1 $5,555,1251 $482,0251
$0
$6,037,150
2. Snow and Ice Removal
$431,071 $23,122
$0
$454,193
3. Adjusted Balance
$7,431,9381
$7,002,540
$21,444,154
$35,878,632
E.Construction, Reconstruction and Improvements
1. Engineering
$135,415
$2,157,664
$0 $2,293,079
B. REVENUES
2. Right of Way
Purchased
3. Street/Bridge
Construction
$0
$707,234
$5,307
$25,779,402
$0 $5,307
$0 $26,486.636
1. Road Use Tax
$8,424,638
$8,424,638
2. Property Taxes
$330,662
$6,982,400
$7,313,062
3. Special
Assessments
$0
$0
$0
4.Traffc Services
$0
$0
$0 $o
4. Miscellaneous
$24,853,709
$0
$24,853,709
F. Administration
G. Equipment
$744,213
$30,308
$35,851
$0
$0 _ $780,064
$0 .. $30,308
5. Proceeds from
Bonds,Notes, and
Loans
$5,712,525
$0
$5,712,525
6. Interest Earned
$46,468
$0
$46,468
H. Miscellaneous
$698,323
$698,323
7. Total Revenues
(Lines B1 thru B6)
$8,424,638
$30,943,364
$6,ga2,4o0
$46,350,402
J. street Debt
1. Bonds, Notes and
Loans -Principal Paid
$0
$0
$6,385,709
$6,385,709
C. Total Funds
Available
(Line A3 + Line B7)
$15,856,576
$37,945,904
$28,426,554
$82,229,034
2. Bonds, Notes and
Loans - Interest Paid
$0
$0
$596,691
$596,691
TOTALS
K. Total Expenses
(Lines D thru J)
$7,603,366
$29.181,694
$6,982,400
$43,767,460
L. Ending Balance
(Line C -K)
$8,253,210
$8,764,210
$21,444,154
$38,461,574
M. Total Funds
Accounted
For (K+L=C)
$15,856,576
$37,945,904
$28,426,554
$82,229,034
(QIOWADOT
Form 517007 (5-2017)
Office of Local Systems
Ames, IA 50010
City Name
IOWACITY
(' ,her
City Street Financial Report
Miscellaneous Revenues and Expenses Sheet
9/620174:11 PM
Fiscal Year
2017
3 o 10
Code Number and Itemization of Miscellaneous Revenues (Line B4 on the Summary
Statement Sheet)(See Instructions)
Column 2
Other Street Monies
Column 3
Street Debt
110 ---Parking Revenues
$698,323.00
$0.00
112—Utility Revenue
$1,531,248.00
$0.00
116-0ther Cities
$2,243.00
$0.00
118 --School Districts
$365,662.00
$0.00
121 --State Reimbursement
$29,358.00
$0.00
122 --RISE Funds
$7,635.00
$0.00
123 --Various State Grants
$517,061.00
$0.00
127--U-STEP
$10,000.00
$0.00
141 --Community Development Block Grant
$81,051.00
$0.00
144—FHWA Participation (Fed. Hwy. Admin.)
$7,767,179.00
50.00
170 --Reimbursements (misc.)
$5,601.00
$0.00
172 --Labor & Services
$62,283.00
$0.00
173 --Reimbursement For Damages
$23,817.00
$0.00
174 --Sales Tax / Local Option
$11,000,000.00
$0.00
190 --Other Miscellaneous
$3,069.00
$0.00
193 --Fines & Fees
$21,721.00
$0.00
194 ---General Fund Transfers
$2,727,458.00
$0.00
Line B4 Totals
$24,853,709.00
Code Number and Itemization of Miscellaneous Expenses (Line H on the Summary
Column 2
Column 3
Statement Sheet) "On street" parking expenses, street maintenance, buildings, insurance,
Other Street Monies
Street Debt
administrative costs for printing, legal fees,bond fees etc. (See Instructions)
230 ---On Street Parking Only
$698,323.00
$0.00
Line H Totals
$698,323.00
-
Form 517007 {5-20171
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
City Street Financial Report
Bonds, Notes and Loans Sheet
9/6/10174,11 PM
Fli Yeu
4 of 10
New
Debt Type
Debt Purpose
DOT
Issue
Issue
%Related
Year
Principal
Total
Total I
Principal
Interest
Principal
Bond ?
Use Only
Date
Amount
to Street
Due
Balance
Principal
Interest
Roads
Roads
Balance as
as of 7/1
Paid
Paid
of 6/30
General Obligation
Paving&
310
10/15/2008
$9,669,000
100
2018
$1,737,030
$1,737,030
$10,678
$1,737,030
$10,678
$0
OMSWdion
General Obligation
Paving &
312
06/08/2009
$4,531,000
100
2019
$1,497,845
$1,497,845
$55,105
$1,497,845
$55,105
$0
construction
General Obligation
Paving&
313
08/02/2010
$3,665,480
100
2020
$1,538,810
$368,030
$36,692
$368,030
$36,692
$1,170,780
Conatrudlon
General Obligation
Pai&
314
06/08/2011
$3,356,237
100
2021
$1,668,590
$364,210
$52,104
f364.210
$52,104
$1,304,380
Construdion
General Obligation
Paving &
315
06/20/2012
$4,278,319
100
2022
$2,679,256
$424,530
$54,770
24,530
$54,770
$2,254,726
Construction
General Obligation
Paving&
316
07/16/2013
$3,181,200
100
2023
$2,530,000
$341,000
$36,663
$341,000
$36,663$2.189,000
ConsWdan
General Obligation
Paving&
317
06/03/2014
$1,064,000
100
2017
$520,000
$520,000
$10,400
$520,000
$10,400
$0
ConsWdion
General Obligation
Paving&
318
06/03/2014
$5,389,756
100
2024
$4,377,731
$511,796
$110,932
$511,796
$110,932
$3,865,935
onsbvdion
General Obligation
Panning &
319
06/02/2015
$4,836,042
100
2024
$4,404,308
$441,052
$89,274
$441,052
$89,274$3,963.256
ansWdian
General Obligation
Peting&
320
06/16/2016
$6,604,165
100
2026
$6,604,165
$180,216
$140,073
$180,216
$140.073
$6,423.949
C.OnSWd0r1
General Obligation
Pacing&
321
06/15/2017
$5,712,525
100
2027
$5,712,525
$0
$0
$0
$0$5,712.525
sovdion
New Bond Totals
- $QyT$$
6.
Totals
f33,T70,2&0
$6.386.709
$596,691
$6.385.709
5596,691
$28.884.561
Qlt)WADOT City Street Financial Report
Form 517007 {5-2017)
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
Project Final Costs Sheet
For construction, reconstruction, and improvement projects with costs equal to or greater
than 90% of the bid threshold in effect as the beginning of the fiscal year.
Check here Ifthem are no entities for this year
Project Final Costs Sheet (Section A)
9/62" LYM
Fisea( 1 Yeaar
1 5 o 10 1
1. Project Number
2. Estimated Cost
3. Project Type
4. Public Letting?
5. Location/Project Description (limits, length, size of structure)
53811
$1,778,650
MISC
Yes
US Highway 6 & Sycamore St Intersection Improvements
S3824-2016PCC
$250,000
SURF
Yes
PCC Pavement Rehabilitation 2016
S3824-2015HMA
$576,000
SURF
Yes
Asphalt Resurfacing Project 2015
S3931
$3,200,000
RDSD
Yes
Sycamore St - City Limits to South Gilbert St Phase 1
S3919
$1,137,984
GRID
Yes
Rochester Ave Bridge over Ralston Creek
P3978, P3979, P3980
$261,368
RDWY
es
Sycamore St & Lower Muscatine Rd Landscape Improvements
S3824-2016HMA
$1,177,000
SURF
es
Asphah Resurfacing Project 2016
Project Final Costs Sheet (Section B)
1. Project Number
6. Contractor Name
7. Contract
Price
B. Additions/
Deductions
9. Labor
10. Equipment
11. Materials
12. Overhead
13. Total
S3811
Peterson Contractors Inc
$1,845,737
$6,685
$0
$0
$0
$0
$1,852,422
53824.2016PCC
All American Concrete
$200,487
$8,895
$0
$0
$0
$0
$209.382
53824-2015HMA
LL Palling
$689,782
$30,041
$0
$0
$0
$0
$719,823
S3931
Metro Pavers
$2,471,978
$31,615
$0
$0
$0
$0
$2,440.363,
53919
Iowa Bridge & Culvert Inc
$927,997
$56,384
$0
$0
$0
$0
$984,381
P3978, P3979, P3980
Lewis Brothers
$290,977
-$3,867
$0
$0
$0
$0
$287,110
53824-2016HMA
LL Felling
$975,733
$371,780
$0
$0
$0
$0
$1,347,513
rC a , •.ill
Form 517007 {5-2017}
Office of Local Systems
Ames, 1A 50010
City Name
IOWA CITY
City Street Financial Report
Road/Street Equipment Inventory Sheet
FIVI Year
ton
6 o 10
1.
Local Class
I.D. #
2.
Model
Year
3.
Description
4.
Purchase
Cost
5.
Lease
Cost
/Unit
6.
Rental
Cost
/Unit
7. Used On
Project
this FY?
8.
Status
268
2015
Street Sweeper Elgin Pelican Dual
$187,000
$0
$0
No
NOCH
306
2016
1 Ton Utility Cargo Van Ford E350 KUV
$34,076
$0
$0
No
NOCH
227
2016
13200 GVWR Utility Chevrolet 3500
$42,362
$0
$0
No
NOCH
222
2011
Chevrolet Colorado Extended Cab 4X4
$20,599
$0
$0
No
NOCH
302
2010
19,500 GVWR 1-1/2 Ton Basket Truck Ford F550
$80,629
$0
$0
No
NOCH
259
2010
Street Sweeper Allianz -Johnston 3000
$158,369
$0
$0
No
NOCH
224
2009
Vibratory Roller Bomag BW120AD4
$33,840
$0
$0
No
NOCH
215
2010
1/2 Ton Pickup Ford F150 XLT
$23,087
$0
$0
No
NOCH
203
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
204
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
205
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
208
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
210
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
211
2010
38000 GVWR Dump Truck/Freightliner M2106V
$105,000
$0
$0
No
NOCH
245
2009
40000 GVWR Dump Truck/International 7300
$101,
$0
$0
No
NOCH
269
2008
Street Sweeper/Allianz-Johnston 3000SP
$137,544
$0
$0
No
NOCH
293
2004
Creftco Magnum Spray Asphalt Patcher
$50,
$0
$0
No
NOCH
307
2005
Sign Truck/Ford F550
$78,521
$0
$0
No
NOCH
252
2005
37000 GVWR Dump Truck/Sterling L7500
$83,63
$0
$0
No
NOCH
IGIOWADOT
Fowl 517007 {5-2017}
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
Dcr
City Street Financial Report
Road/Street Equipment Inventory Sheet
K"port G, aIn1,-d 1
9/62017 4:11 PM
FiscalYear
1 7 o 10 1
1.
Local Class
I.D. #
2.
Model
Year
3.
Description
4.
Purchase
Cost
5.
Lease
Cost
/Unit
6.
Rental
Cost
/Unit
7. Used On
Project
this FY?
8.
Status
253
2005
37000 GVWR Dump Truck/Sterling L7500
$83,632
$0
$0
No
NOCH
233
1996
Crack Sealer / Craftco FZ100D
$16,400
$0
$0
No
NOCH
236
2003
Loader -Backhoe / John Deere 31OSG
$59,125
$0
$0
No
NOCH
237
2002
Loader -Backhoe /r -ase 580 Super M
$58,960
$0
$0
No
NOCH
242
1993
Air Compressor/ Ingersoll P185CWJD
$11,200
$0
$0
No
NOCH
243
1993
Air Compressor/ Ingersoll P185CWJD
$11,200
$0
$0
No
NOCH
244
1998
Air Compressor/ Ingersoll P185CWJD
$11,200
$0
$0
No
NOCH
280
2004
Concrete Saw / Target Pro 35111
$8,584
$0
$0
No
NOCH
294
2000
Mud Jack/Airplaco HJ25
$23,067
$0
$0
No
NOCH
312
2001
Aerial Platform / International Elliott 4700
$101,129
$0
$0
No
NOCH
316
1998
Street Paint Machine / F2 Liner AL 120EZ
$31,800
$0
$0
No
NOCH
206
2008
1/2 Ton 4 X 4 Pickup/Ford F-150
$20,696
$0
$0
No
NOCH
207
2000
John Deere/Motor Grader 772CH
$130,000
$0
$0
No
NOCH
232B
2012
550 Ib Concrete Breaker Stanley MB05502
$5,990
$0
$0
No
NOCH
230
2012
Endloader/Case 721F
$127,750
$0
$0
No
NOCH
2418
2012
550 lb. Concrete Breaker/Stanley M805502
$5,990
$0
$0
No
NOCH
298
2012
Asphalt Pothole Patcher/Falcon 2T 1 Burner
$20,036
$0
$0
No
NOCH
276
2014
37240 GVWR Flusher Truck/Freightliner 108SD
$121,016
$0
$0
No
NOCH
288
2014
37240 GVWR Dump Truck/Freightliner 108SD
$118,334
$0
$0
No
NOCH
290
2014
37240 GVWR Dump Truck/Freightliner 108SD
$118,334
$0
$0
No
NOCH
QIOWADOT
Font 517007 {5-2017}
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
City Street Financial Report
Road/Street Equipment Inventory Sheet
Rrparl Gan, 1.[I,l
Fiscal Year
2017
8 of 10
1.
Local Class
I.D. #
2.
Model
Year
3.
Description
4.
Purchase
Cost
5.
Lease
Cost
/Unit
6.
Rental
Cost
/Unit
7. Used On
Project
this FY?
8.
Status
291
2014
37240 GVWR Dump Truck/Freightliner 108SD
$118,334
$0
$0
No
NOCH
292
2014
37240 GVWR Dump Truck/Freightliner 108SD
$118,334
$0
$0
No
NOCH
202
2014
1/2 Ton Flatbad/Ford F150 4 X 2
$24,685
$0
$0
No
NOCH
212
2015
14000 GVWR Flatbed/Ford F350 4 X 4
$49,116
$0
$0
No
NOCH
213
2015
13700 GVWR Flatbed/Ford F350 4 X 2
$38,844
$0
$0
No
NOCH
229
2013
Endloader/Case 621F
$120,644
$0
$0
No
NOCH
232
2014
Skidloader/Bobcat S650
$41,779
$0
$0
No
NOCH
239
2015
13700 GVWR Flatbed/Ford F350 4 X 2
$37,873
$0
$0
No
NOCH
240
2015
14000 GVWR Flatbed/Ford F350 4 X 4
$47,260
$0
$0
No
NOCH
241
2014
Skidloader/Bobcat S650
$42,111
$0
$0
No
NOCH
248
2015
13700 GVWR Utility/Ford F350 4 X 2
$43,412
$0
$0
No
NOCH
308
2014
1/2 Ton Pickup/Ford F150 4 X 2
$24,042
$0
$0
No
NOCH
220
2016
Meassage Board TrailerNer-Mac PCMS-548
$15,250
$0
$0
No
NEW
252
2017
38720 GVWR Dump Truck/Freightliner 108SD
$152,625
$0
$0
No
NEW
253
2017
38720 GVWR Dump Truck/Freightliner 108SD
$175,099
$0
$0
No
NEW
307
017
Sign Truck/Ford F550
$127,149
$0
$0
No
NEW
plowao T
Form 517007 {5-2017}
Office of Local Systems
Ames, IA 50010
City Name
IOWA CITY
('gin ,A'rml.r:
City Street Financial Report
Explanation Sheet
9/6/30174:11 PM
Mscal Yew
9ot10
(PIOWADOT
Form 517007 {5-2017}
Office of local Systems
Ames, IA 50010
City Name
IOWA CITY
1 .4
City Street Financial Report
Monthly Payment Sheet
Month
Road Use tax Payments
July
$631,563.89
August
$928,059.87
September
$875,180.60
October
$674,638.34
November
$757,055.63
December
$627,498.32
January
$767,282.97
February
1$792,247.92
March
$668,834.73
April
$475,322.33
May
$533,614.07
June
$703,339.39
58,424,638.06
1 916/30174:11 PM I
10 Of 10
��CA ( LI )
Prepared by: Kris Ackerson, Neighborhood Services, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
RESOLUTION NO. 17-296
Resolution adopting Iowa City's Citizen Participation Plan and
authorizing the City Manager to submit said plan with all necessary
certifications to the U.S. Department of Housing and Urban
Development and rescinding Resolution No. 10-265.
Whereas, the U.S. Department of Housing and Urban Development (HUD) requires the City of
Iowa City, Iowa to prepare and submit a Citizen Participation Plan to meet HUD's basic
requirements for resident participation in preparing the Consolidated Plan (aka CITY STEPS),
Annual Action Plan, any substantial amendments and the Performance Report; in accordance
with Section 104(a) of the Housing and Community Development Act of 1974, codified at 42
U.S.C. Section 5304(a) and 24 CFR Part 91.105; and
Whereas, said Citizen Participation Plan replaces the plan adopted by City Council on May 10,
2010 in Resolution No. 10-265; and
Whereas the Iowa City Housing and Community Development Commission held a public
meeting, disseminated information, and solicited public input regarding the Citizen Participation
Plan; and
Whereas the City Council finds that the public interest will be served by the adoption of the
Citizen Participation Plan and its submission to the U.S. Department of Housing and Urban
Development.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City of Iowa City Citizen Participation Plan, filed in the office of the City Clerk,
attached hereto, is hereby approved and adopted.
2. City Council Resolution No. 10-265 is rescinded.
3. The City Manager of Iowa City is hereby authorized and directed to submit the City of
Iowa City Citizen Participation Plan to the U.S. Department of Housing and Urban
Development, and is further authorized and directed to provide all the necessary
certifications or documents required by the U.S. Department of Housing and Urban
Development.
4. The City Manager is hereby designated as the Chief Executive Officer and authorized to
act on behalf of the City of Iowa City in connection with the Citizen Participation Plan.
Passed and approved this 191 day of September, 2017.
MAYOR
,01
City Attorney's Office
(:T-- -,)-
City
r)-
Resolution No.
Page 2
17-296
It was moved by Botchway and seconded by Dickens
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
0-164001
ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
Citizen Participation Plan
for the Iowa City Consolidated Plan (aka CITY STEPS)
and Assessment of Fair Housing
Table of Contents
I. Introduction•................................2
II. Development of Consolidated Plan and Annual Action Plans ............................... 2
III. Amendments to CITY STEPS and Annual Action Plans ........................................ 3
IV. Performance Reports .........................................................................................................
V. Resident Access -----------------------------------------------------------------------------_7
VI. Complaints-------- ----------------------------------- --------------------------------------------------------------------------12
VII. Amendments to Citizen Participation Plan ............................................................. 13
VIII. Section 108 ...................................................... 13
Approved 9/19/17 in Reso. No. 17-_ 11 P a g e
Section I. Introduction
This Citizen Participation Plan (the "Plan") is a revision of a plan adopted by the
City of Iowa City, Iowa (the "City") on May 10, 2010. This Plan helps residents]
participate in the development of the Consolidated Plan (a.k.a. CITY STEPS), each
Annual Action Plan, annual Performance Report, and Assessment of Fair Housing.
CITY STEPS and each year's Annual Action Plan guide the City's use of
Community Development Block Grant (CDBG) and HOME Investment
Partnerships Program, which are made available from the U.S. Department of
Housing and Urban Development (HUD). The Consolidated Annual Performance
and Evaluation Report (CAPER) (aka Performance Report) provides an assessment
of funds expended and a quantitative analysis of program or project outcomes. The
CITY STEPS process shall be integrated into the City's overall yearly goal -
setting and budget process and shall provide for resident access designed to
encourage participation by low and moderate income persons, as well as the general
public.
The Housing and Community Development Commission (HCDC) will play a key
role in the resident participation process. The Commission will hold public
meetings, collect comments, and provide forums for the annual review of CITY
STEPS. In addition, other groups, such as, the Local Homeless Coordinating Board
and the Iowa City Housing Authority will be asked to participate.
This document is designed to meet HUD's basic requirements for "citizen
participation" in preparing CITY STEPS in accordance with Section 104 (a) of the
Housing and Community Development Act of 1974, codified at 42 U.S.C. Section
5301, and 24 CFR Part 91.105, as well as 24 CFR Part 5 regarding the City's
obligation to affirmatively further fair housing.
Section H. Development of CITY STEPS,
Annual Action Plans, and Assessments of Fair Housing
The Housing and Community Development Commission will hold at least one
public meeting during the development of Assessments of Fair Housing, CITY
STEPS, and/or Annual Action Plan that would include identification of community
housing and non -housing needs, prioritization of needs, strategy development to
meet identified needs and budget recommendations to implement those strategies.
This public meeting shall be held in advance of the 30 -day public comment period.
Resident access opportunities, as identified in Section V of this Plan, shall be
1 The federal law (42 U.S.C. 5301) uses the term "citizen participation plan" and that is why this document is
entitled, "Citizen Participation Plan." However, the plan is meant to assist all residents of Iowa City and encourage
all residents to participate.
2 1 P a g e
utilized to increase participation in the development of these documents. The
Housing and Community Development Commission will hold at least two meetings
annually to provide information regarding these documents, priorities, and
proposed activities to residents and to allow resident input regarding the City's
community development needs. Residents may propose amendments to these
documents.
A brief summary of the draft Assessments of Fair Housing, CITY STEPS, and
Annual Action Plans shall be published in one or more newspapers of general
circulation. Prior to the City Council public meeting, "draft" copies will be
available for review. The complete document shall be available for review as
outlined in Section V of this Plan.
The City shall provide no less than a 30 -day public comment period before final
action by the City Council to afford residents, public agencies, and other interested
parties with reasonable opportunity to examine the materials. Prior to adoption of
CITY STEPS, an Annual Action Plan, or an Assessment of Fair Housing, the City
Council will hold a public meeting. Any public comments received during the
comment period or at the public meetings shall be considered and shall be
summarized and attached to CITY STEPS and/or Annual Action Plan prior to
submission to HUD. This shall include a summary of any comments or views not
accepted and the reasons therefore.
Section III. Amendments to CITY STEPS, Annual Action Plans,
and Assessments of Fair Housing
Amendments to CITY STEPS and Annual Action Plans shall be categorized as
"Substantial" or "Administrative."
Definition: Substantial Amendments to CITY STEPS and Annual Action
Plans shall be required whenever the City seeks to:
• Make a change in its allocation priorities or a change in the method of
distribution of funds.
• Carry out a program, using funds from any program covered by CITY
STEPS (including program income reimbursements, repayment, recaptures,
or reallocations from HUD), not previously described in the Annual Action
Plan.
• Change the purpose of any project with respect to the objectives as originally
described in CITY STEPS, such as a change in the type of project or its
ultimate objective (e.g., canceling an economic development project and
allocating those funds to an affordable housing project).
31 Page
• Change the scale and/or nature of a project by $75,000 or 25% of the original
budget allocation, whichever is more.
• Change the location of a project that is "neighborhood specific" or in a
designated urban revitalization area (e.g., elimination of slum and blight)
and the project location is changed to include areas beyond that
neighborhood.
• Reduce the beneficiaries being assisted by 25% or more.
• Reduce the number of affordable housing units being assisted by more than
fifteen units or by 25%, whichever is more.
Any public comments received during the comment period or at the public meeting
shall be considered, summarized, and attached to the substantial amendment prior
to submission to HUD. This shall include a summary of any comments or views not
accepted and the reasons.
Definition: Administrative Amendments may be approved by the City
Manager. Changes in financial terms shall be reviewed and approved by the City
Manager. The City Manager may request the Housing and Community
Development Commission to provide a recommendation to Council for consideration
and approval. Administrative amendments may include but are not limited to:
• Canceling an existing activity or program if no funds were expended.
• Updating the amount of prior year HOME or CDBG program income, which
was unknown at the time of drafting the Annual Action Plan.
• Transferring a funded activity from one approved Annual Action Plan to
another Annual Action Plan to facilitate the efficient use of CDBG and
HOME funds. For example, an activity is awarded FY2018 CDBG grant
funds but uncommitted FY2017 CDBG grant funds can and should be
utilized instead.
• Funding of administration, economic development, public service, or
neighborhood/area benefit activities.
• Amending existing agreements with grant recipients.
• Changing the purpose of an activity with respect to the objectives as
originally described in the Annual Action Plan or funding application.
4 1 P a 9 e
• Increasing an activity budget by $50,000 or 25% of the original budget
allocation, whichever is more. Otherwise the activity amendment shall be
reviewed by HCDC and approved by City Council resolution.
• Reducing the number of low to moderate income persons assisted by a
housing or public facility activity by 25% or more. Otherwise the activity
amendment shall be reviewed by HCDC and approved by City Council
resolution.
• Reducing the number of housing units being assisted by more than five units
or by 25%, whichever is more. Otherwise the amendment shall be reviewed
by HCDC and approved by City Council resolution.
51 Page
Summary of Notice, Comment, and Meeting Timelines
61 Page
Public Notice
Continent
Public Meeting
Period
Citizen
Publication will contain summary of
30 -day
In conjunction with public
Participation
the contents, purpose, duration of
public
hearing for Consolidated Plan,
Plan
public comment period, list of
comment
publish notice online and in
locations where document is
period
Press -Citizen.
available.
Amendment
Publication will contain summary of
30 -day
Prior to implementing the
the contents, purpose, duration of
public
substantial amendment, may be
public comment period, list of
comment
held in conjunction with public
locations where document is
period
hearings for Annual Action Plan.
available.
Publish notice online and in
Press -Citizen.
Consolidated
Publication will contain summary of
30 -day
During the planning process to
Plan/
the contents, purpose, duration of
public
receive comments on the housing
Annual
public comment period, list of
comment
and community development
Action Plan
locations where document is
period
needs and during the
available. Will also include the
development of proposed
amount of assistance expected,
activities. Publish notice online
range of activities undertaken,
and in Press -Citizen.
estimated amount that will benefit
low/mod residents.
Substantial
Publication will contain summary of
30 -day
Prior to implementing the
Amendment
the contents, purpose, duration of
public
substantial amendment, may be
public comment period, list of
comment
held in conjunction with public
locations where document is
period
hearings for Annual Action Plan.
available.
Publish notice online and in
Press -Citizen.
Admin.
May be requested at City Manger's
Not
May be requested at City
Amendment
discretion.
applicable
Manger's discretion.
Assessment
Publication will contain summary of
30 -day
Prior to submission to HUD.
of Fair
the contents, purpose, duration of
public
Publish notice online and in
Housing
public comment period, list of
comment
Press -Citizen.
locations where document is
period
available.
AFH Data
At or as soon as possible after the
Not
Not applicable
start of the public participation
applicable
process, data will be made available
on the City's website by linking to
HUD's website.
AFH
Publication will contain summary of
30 -day
Prior to submission to HUD.
Revisions
the contents, purpose, duration of
public
Publish notice online and in
public comment period, list of
comment
Press -Citizen.
locations where document is
period
available.
CAPER (i.e.,
Publication will contain summary of
16 -day
Prior to submission to HUD.
Performance
the contents, purpose, duration of
public
Publish notice online and in
Report)
public comment period, list of
comment
Press -Citizen.
locations where document is
period
available.
61 Page
A revision to the Assessment of Fair Housing (AFH) is required when there is a
material change.
1. A material change is a change in circumstances that affects the information
on which the AFH is based to the extent that the analysis, the fair housing
contributing factors, or the priorities and goals of the AFH no longer reflect
actual circumstances. Examples include, but are not limited to:
a. Presidentially declared disasters, that are of such a nature as to
significantly impact the steps the City may need to take to
affirmatively further fair housing;
b. significant demographic changes;
c. new significant contributing factors in the City; and
d. civil rights findings, determinations, settlements (including Voluntary
Compliance Agreements), or court orders; or
2. Upon HUD's written notification specifying a material change that requires
the revision.
Section IV. Performance Reports
A Performance Report (aka, CAPER) identifies the final budget expenditure
and performance results for each Annual Action Plan activity from the currently
completed program year and any outstanding activities from prior program years.
Performance Reports shall be submitted to HUD within 90 days after the close of
the City's CDBG/HOME program year. The City's program year corresponds to
the City's fiscal year which runs from July 1 to June 30 of each year. A
Performance Report shall be submitted to HUD by September 30. Prior to
submission to HUD, the Housing and Community Development Commission shall,
following a 15 day public comment period, hold a public meeting as outlined in
Section V of this Plan. Any public comments received during the comment period or
at the public meeting shall be considered and shall be summarized and attached to
the Performance Report prior to submission to HUD.
Section V. Resident Access
The City is committed to making reasonable and timely access to the needs
assessment, strategy development and budget recommendation process of CITY
STEPS and Assessment of Fair Housing possible for all members of the community,
especially low and moderate income persons. The following outreach efforts are
illustrative of measures that should be considered to provide resident access to
the CITY STEPS and Assessment of Fair Housing process. Failure to use any one
of these shall not be considered a violation of this Plan.
71 Page
Mailing List (including electronic mailing lists): Develop a comprehensive
mailing list of interested parties, adjacent local governments, religious
organizations and public and private agencies that provide affordable housing,
assisted housing, economic development, business assistance, health services and
social services and use to send summary information, public meeting or comment
period notices.
Targeted Survey: Survey service providers, community agencies and key
informants prior to CITY STEPS or Annual Action Plan development for
information regarding community needs, existing services to meet those needs and
their assessment of any gaps in meeting those needs, including new strategies to
address outstanding needs.
City Government Channel: Create and run public service announcements
about the CDBG and HOME programs and the CITY STEPS and Assessment of
Fair Housing process to inform, educate, and promote resident participation.
Neighborhood Organizations: Invite neighborhood groups to participate and to
coordinate with their own neighborhood planning and implementation efforts.
Iowa City Housing Authority: Invite public housing residents and Housing
Choice Voucher holders to participate in CITY STEPS and Assessment of Fair
Housing development and implementation.
Community Development Week: Use this national recognition week to promote
local success stories related to CDBG, HOME, and other community development
funding. This may include awards, special project open houses, keynote speakers
and neighborhood walks with City Council members or other promotion activities.
All Media: Use media releases about the CITY STEPS and Assessment of Fair
Housing process and resident participation opportunities throughout the
CDBGIHOME program year.
City Website: Use this electronic format to publicize public meeting participation
opportunities and to highlight CITY STEPS and Assessment of Fair Housing
development, implementation, and monitoring process (www.icgoo.o.
Targeted Stakeholders: The following organizations shall be considered when
preparing or revising the Assessment of Fair Housing or amending the
Consolidated Plan (aka CITY STEPS):
Regional Government Agencies
• City of Iowa City
• City of Coralville
• City of University Heights
• City of North Liberty
81 Page
• City of Tiffin
• East Central Iowa Council of Governments
• Johnson County
• Metropolitan Planning Organization of Johnson County
Housing
• Arc of Southeastern Iowa
• Builders of Hope
• Four Oaks
• Habitat for Humanity
• Home Builders Association
• Iowa City Housing Authority
• Johnson County Affordable Homes Coalition
• Residents of public and subsidized housing
• Successful Living
• Systems Unlimited
• The Housing Fellowship
Public Services
• Abbe Center for Community Mental Health
• Access2Independance
• Arc of Southeastern Iowa
• Big Brothers, Big Sisters of Johnson County
• Community Coordinated Child Care (4Cs)
• Consultation of Religious Communities
• Crisis Center
• Department of Human Services
• Elder Services
• Free Lunch Program
• Free Mental Health Clinic
• I -CARE
• Johnson County Public Health
• Neighborhood Centers of Johnson County
• Pathways
• Prelude
Broadband
• Cable 4
• CenturyLink
• ImOn Communications
• Mediacom
Flooding, public land and water, and emergency management
• Joint Emergency Communications Center
• City of Iowa City Development Services
91 Page
Homelessness
• Continuum of Care
• Domestic Violence Intervention Program
• Hawkeye Area Community Action Program, Inc.
• Shelter House
• United Action for Youth
Public Meetings and Hearings
The federal regulation, 24 CFR 91.105(e), states:
The citizen participation plan must provide for at least two public hearings per year
to obtain citizens' views and to respond to proposals and questions, to be conducted
at a minimum of two different stages of the program year. Together, the hearings
must address housing and community development needs, development of proposed
activities, and review of program performance. To obtain the views of citizens on
housing and community development needs, including priority nonhousing
community development needs, the citizen participation plan must provide that at
least one of these hearings is held before the proposed consolidated plan is published
for comment.
This definition of "public hearing" in the federal regulation is substantively similar
to the definition and intent of a "public meeting" in Iowa Code Section 21.2(2).
Additionally, "public hearings" in State law (Section 21.4(2)(b)) require notice to be
published in the newspaper varying days before the public hearing, including as few
as one day. So, to avoid confusion between state and federal terms, this document
refers to public meetings where the federal regulation above references hearings.
The Housing and Community Development Commission shall hold regular monthly
public meetings at Senior Center, 28 South Linn Street, Iowa City unless otherwise
determined and proper notice given.
Notice of public meetings shall be sent to the media in accordance with the Iowa
Open Meetings Law and shall be posted on the City Clerk's Bulletin Board located
on the First Floor of City Hall, 410 East Washington Street, Iowa City. The agenda
shall also be available online at www.icgov.org and at the place of the meeting.
Minutes shall be taken of all public meetings and shall be available for public
review at the Neighborhood and Development Services Department, 410 East
Washington Street, Iowa City during regular working hours. Minutes shall also be
available online at www.icgov.org and from the City Clerk.
Special Accommodations
Non-English speaking persons or persons with hearing impairments can be
provided an interpreter at public meetings, if requests are submitted within
sufficient time to meet your access needs.
101Page
• Language Line, an over -the -phone interpreter service, has been created to
translate English into more than 140 languages. Early requests are strongly
encouraged to allow sufficient time to meet your access needs.
• Requests for disability -related accommodations to participate should be
submitted to neighborhoods@iowa-city.org or 319-356-5230. Early requests
are strongly encouraged to allow sufficient time to meet your access needs.
• The City will reevaluate the most spoken second languages as needed to
ensure outreach efforts are received by all residents.
Information and Records Availability
CITY STEPS [as proposed, adopted or amended], Annual Action Plan, Performance
Reports, Assessment of Fair Housing, and this Citizen Participation Plan shall be
available in print format upon request for public review during regular working
hours at:
Neighborhood and Development Services
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
319.356.5230
These documents are also available online at www.icgov.org/actionplan.
The Neighborhood Services Division has additional information and HUD -provided
data available for public review in print format upon request during regular
working hours and includes:
• Amount of assistance the City expects to receive (including grant funds and
program income);
• Range of eligible activities that may be undertaken;
• Estimated amount of funds anticipated to benefit low and moderate income
persons;
• Uniform Relocation Act which regulates public responsibility and actions
associated with the displacement of persons resulting from a HUD- funded
project; and
• Records relating to CITY STEPS, Assessment of Fair Housing, Annual
Action Plans, and the City's use of assistance during the preceding five (5)
years.
This information shall be provided in a format accessible to persons with
disabilities, upon adequate notice.
Requests for additional information may be made to the Neighborhood Services
Coordinator at the address and phone listed above. A response shall be
provided within five (5) working days of receipt of the request, where practicable.
III Page
Summary materials regarding an Assessment of Fair Housing, CITY STEPS,
Annual Action Plan, amendments and Performance Reports shall be available
without charge. Ten free copies of CITY STEPS will be made available. One free
copy will be provided to each individual or organization requesting said copy until
the supply is exhausted. Photocopier charges and miscellaneous charges for other
related services and materials shall be assessed in accordance with the City's Open
Records Policy.
Technical Assistance
Technical assistance shall be provided to groups representative of persons of low
and moderate income that request such assistance in developing proposals for
funding under any of the activities covered by CITY STEPS or Assessment of Fair
Housing. The level and type of assistance provided shall be on a case-by-case basis
as determined by the City Manager or their designee and shall be subject to
budgeted resources authorized by the City Council.
Activity Promotion
After the adoption of each Annual Action Plan by the City Council, activities
funded in the plan shall be actively promoted to ensure full access to and utilization
of funds as budgeted. The Neighborhood and Development Services Department
shall have primary responsibility for activity promotion; however, other City
departments and subrecipients shall be responsible for ensuring reasonable and
timely promotion and access to the projects, programs and services made possible
by CDBG, HOME and other HUD funding.
Section VI. Complaints
Complaint Procedure
Resident complaints related to the Assessment of Fair Housing, CITY STEPS,
Annual Action Plan, amendments, and/or Performance Report shall be handled in
the following manner:
a. The Neighborhood Services Coordinator shall accept complaints at any
time during the course of the CDBG/HOME program year. Although verbal
complaints will be accepted, only written complaints will be responded to in
writing.
b. Written complaints shall contain a concise statement of the complaint
and an explanation of the action desired.
c. Complaints shall be investigated and responses to written complaints
shall be made within fifteen (15) working days, where feasible, after a
complaint is received.
d. Copies of the complaint and the response shall be forwarded to the City
Manager.
121 Page
With limited exception, written complaints and the staff response to said
complaints are open records under Iowa law.
Should the complainant not be satisfied with the response, the aggrieved person(s)
may submit a complaint to the HUD Omaha Field Office at US Department of
HUD, Edward Zorinsky Federal Building, Suite 329, 1616 Capitol Avenue, Omaha,
NE 68102-4908.
Section VII. Amendments to Citizen Participation Plan
This Plan may be amended by Resolution of the City Council as necessary or
appropriate after review and recommendation by the Housing and Community
Development Commission. All amendments shall be consistent with the
requirements of HUD. The Housing and Community Development Commission
shall review and forward a recommendation of amendment to the City Council.
The City Council shall, following a 30 -day public comment period, hold a public
meeting as outlined in Section V of this Plan. The City Council shall approve any
amendment by resolution prior to submission to HUD.
Section VIII. Section 108
Applications for assistance filed by the City for Section 108 loan guarantee
assistance authorized under HUD regulation 24 CFR Part 570, Subpart M, are
subject to all provisions set forth within this Citizen Participation Plan. Such
applications for Section 108 loan guarantee assistance may be included as part of
the process for obtaining CDBG/HOME Entitlement funds, or may be undertaken
separately anytime during the program year. The required public meeting to inform
residents of program requirements will be carried out by the City's Neighborhood
and Development Services Department.
13JPage
CITY OF IOWA CIT
09-19-17
91917
COUNCIL ACTION REPO 3d14)
September 19, 2017
Resolution adopting Iowa City's Citizen Participation Plan and authorizing
the City Manager to submit said plan with all necessary certifications to the
U.S. Department of Housing and Urban Development and rescinding
Resolution No. 10-265
Prepared By: Kristopher Ackerson, Community Development Planner
Reviewed By: Tracy Hightshoe, Interim Director Neighborhood & Development Services
Geoff Fruin, City Manager
Fiscal Impact: Federal HOME and CDBG entitlement funds, program income, and
uncommitted or returned CDBG and HOME funds
Recommendations: Staff: Approval
Commission: Housing and Community Development Commission
recommended approval unanimously on June 15, 2017
Attachments: Resolution, Citizen Participation Plan
Executive Summary:
The City receives Community Development Block Grant (CDBG) and HOME Investment
Partnerships Program (HOME) funds annually from the U.S. Department of Housing and Urban
Development (HUD). The City's Citizen Participation Plan must be revised to incorporate
requirements codified at 42 U.S.C. Section 5301, and 24 CFR Part 91.105, as well as 24 CFR
Part 5 regarding the City's obligation to affirmatively further fair housing. The plan is also
available at www.icgov.org/actionplan. At the time of this memo, the City has not received any
public comment.
Background / Analysis:
As a reminder the Citizen Participation Plan is a required HUD document that sets forth the
steps Iowa City uses to encourage citizen participation in the development of the Consolidated
Plan (aka CITY STEPS), Annual Action Plan, any substantial amendments, and the
Performance Report. Federal law uses the term "citizen participation plan" and that is why this
document is entitled, "Citizen Participation Plan." However, the plan is meant to assist all
residents of Iowa City and encourage all residents to participate.
At their June 15, 2017 meeting, the Housing and Community Development Commission
(HCDC) discussed and recommended unanimously that City Council approve the Citizen
Participation Plan. The draft minutes of the June 15 HCDC meeting were included in the July 13
City Council Information Packet.
The proposed plan was published for the required 30 -day public comment period on August 18.
To date, no public comments have been submitted.
3d (5
Prepared by: Daniel Scott, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)3565144
Resolution No. 17-297
Resolution awarding contract and authorizing the Mayor to sign
and the City Clerk to attest a contract for construction of the
2017 Sewer Rehabilitation Project
Whereas, Municipal Pipe Tool Company of Hudson, Iowa, has submitted the lowest responsible
bid of $241,440.55 for construction of the above-named project; and
Whereas, funds for this project are available in the Annual Sewer Repair account #V3101; and
Whereas, The City Engineer and City Manager are authorized to execute change orders
according to the City's Purchasing Policy as they may become necessary in the construction of
the above-named project.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The contract for the construction of the above-named project is hereby awarded to
Municipal Pipe Tool Company, subject to the condition that awardee secure adequate
performance and payment bond, insurance certificates, and contract compliance program
statements.
2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for
construction of the above-named project, subject to the condition that awardee secure
adequate performance and payment bond, insurance certificates, and contract compliance
program statements.
Passed and approved this 19th day of September _,2017
M or
Attes
Cify Clerk
It was moved by Botchway and seconded by
adopted, and upon roll call there were:
Ayes:
X
X
X
X
x
X
Nays:
rove y
City Attorney's Office
Dickens the Resolution be
Absent:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
r 1 CITY OF IOWA CIT
09-19-17
COUNCIL ACTION REPO R 3d(5)
September 19, 2017
Resolution awarding contract and authorizing the Mayor to sign and the
City Clerk to attest a contract for construction of the 2017 Sewer
Rehabilitation Project.
Prepared By: Daniel Scott - Senior Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: The estimated cost for this project is $241,440.55 and will be funded with
sewer revenues available in the Annual Sewer Repair account #V3101.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
This is a recurring maintenance project that includes lining sanitary sewers and manholes at
various locations throughout the city. Work on this project also includes repair of sanitary sewer
manhole castings and lids as needed.
Five (5) bids were submitted for the September 12th letting, and Municipal Pipe Tool Company
of Hudson, Iowa, submitted the lowest responsible bid of $241,440.55.
Municipal Pipe Tool Co.
Visu-Sewer
SAK Construction
Hydro-Klean
Lametti & Sons
Engineer's Estimate
Hudson, IA
Pewaukee, WI
O'Fallon, MO
Des Moines, IA
Hugo, MN
$ 241,440.55
$ 248,680.85
$ 297,892.50
$ 301,850.77
$ 307,775.00
$ 335,000.00
Staff recommends awarding the contract for the 2017 Sewer Rehabilitation Project to Municipal
Pipe Tool Company. This project is anticipated to be completed in December of 2017.
Background / Analysis:
The 2017 Sewer Rehabilitation Project will include work at the following locations:
Governor Street at Davenport Street
Rocky Shore Drive from River Street to Lee Street
Woodlawn Avenue at Muscatine Avenue
Westminster Street from Washington Street to Bowling Green Place
H Street Alley from 6`h Avenue to 5`h Avenue
Market Street Alley from Clinton Street to Dubuque Street
Tower Court entire street from George Street to end
Washington Street at Van Buren Street
Maple Street from Clark Street to Oakland Avenue
Davenport Street at Pleasant Street
Normandy Drive at Manor Drive
Post 8/16 v A �
NOTICE TO BIDDERS
2017 ANNUAL SEWER REHABILITATION
Sealed proposals will be received by the City
Clerk of the City of Iowa City, Iowa, until 3:00
P.M. on the 121h day of September, 2017. Sealed
proposals will be opened immediately thereafter
by the City Engineer or designee. Bids submitted
by fax machine shall not be deemed a "sealed
bid" for purposes of this Project. Proposals
received after this deadline will be returned to the
bidder unopened. Proposals will be acted upon
by the City Council at its next regular meeting to
be held in the Emma J. Harvat Hall at 7:00 P.M.
on the 19th day of September. 2017, or at a
special meeting called for that purpose. The
Project will involve the following:
Lining of 4,387 LF of 8 -inch diameter sewer
pipe, 1,257 LF of 12 -inch diameter sewer
pipe, 285 LF of 18 -inch diameter sewer pipe,
183 VLF of manhole lining, 24 manhole
infiltration barriers, 97 service connection
reinstatements, and other associated sewer
lining work.
All work is to be done in strict compliance with the
plans and specifications prepared by the City of
Iowa City Engineering Division, of Iowa City,
Iowa, which have heretofore been approved by
the City Council, and are on file for public exami-
nation in the Office of the City Clerk.
Each proposal shall be completed on a form
furnished by the City and must be submitted in a
sealed envelope. In addition, a separate sealed
envelope shall be submitted containing a
completed Bidder Status Form and a bid bond
executed by a corporation authorized to contract
as a surety in the State of Iowa, in the sum of
10% of the bid. The bid security shall be made
payable to the TREASURER OF THE CITY OF
IOWA CITY, IOWA, and shall be forfeited to the
City of Iowa City in the event the successful
bidder fails to enter into a contract within ten (10)
calendar days of the City Council's award of the
contract and post bond satisfactory to the City
ensuring the faithful performance of the contract
and maintenance of said Project, if required,
pursuant to the provisions of this notice and the
other contract documents. The City shall retain
the bid security furnished by the successful
bidder until the approved contract form has been
executed, a bond has been filed by the bidder
guaranteeing the performance of the contract,
and the contract and bond have been approved
by the City. The City shall promptly return the
checks or bidder's bonds of unsuccessful bidders
to the bidders as soon as the successful bidder is
determined or within thirty days, whichever is
sooner.
The successful bidder will be required to furnish a
bond in an amount equal to one hundred percent
AECOM #60539072 AF -1
(100%) of the contract price, said bond to be
issued by a responsible surety approved by the
City Council, and shall guarantee the prompt
payment of all materials and labor, and also
protect and save harmless the City from all claims
and damages of any kind caused directly or
indirectly by the operation of the contract, and
shall also guarantee the maintenance of the
improvement for a period of two (2) years from
and after its completion and formal acceptance by
the City.
The following limitations shall apply to this
Project:
Specified Completion Date: December 6, 2017
Liquidated Damages: $400 per day
The plans, specifications and proposed contract
documents may be examined at the office of the
City Clerk. Copies of said plans and specifi-
cations and form of proposal blanks may be
secured at the Office of City Engineer, City Hall,
Iowa City, Iowa, by bona fide bidders.
A $25 refundable fee is required for each set of
plans and specifications provided to bidders or
other interested persons. The fee shall be in the
form of a check, made payable to the City of Iowa
City. The fee is refundable if returned within 14
days of award of the project by City Council in re-
usable condition.
Bidders shall list on the Form of Proposal the
names of persons, firms, companies or other
parties with whom the bidder intends to subcon-
tract. This list shall include the type of work and
approximate subcontract amount(s).
The Contractor awarded the contract shall submit
a list on the Form of Agreement of the proposed
subcontractors, together with quantities, unit
prices and extended dollar amounts.
Prospective bidders are advised that the City of
Iowa City desires to employ minority contractors
and subcontractors on City projects. A listing of
minority contractors can be obtained from the
Iowa Department of Inspections and Appeals at
(515) 281-5796 and the Iowa Department of
Transportation Contracts Office at (515) 239-
1422.
By virtue of statutory authority, preference will be
given to products and provisions grown and coal
produced within the State of Iowa, and to Iowa
domestic labor, to the extent lawfully required
under Iowa Statutes. The Iowa Reciprocal
Preference Act applies to this project.
The City reserves the right to reject any or all
proposals, and also reserves the right to waive
technicalities and irregularities.
Published upon order of the City Council of Iowa
City, Iowa.
Kellie Fruehling, City Clerk
AECOM #60539072 AF -2
a�d (t,)
Prepared by: Scott Sovers, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319)356-5142
Resolution No. 17-298
Resolution accepting the work for the Kiwanis Park Storm Sewer
Improvements Project
Whereas, the Engineering Division has recommended that the work for construction of the
Kiwanis Park Storm Sewer Improvements Project, as included in a contract between the City of
Iowa City and Lynch Excavating Inc. of West Branch, IA, dated March 13, 2017, be accepted; and
Whereas, the Engineer's Report and the performance and payment bond have been filed in the
City Engineer's office; and
Whereas, funds for this project are available in the Annual Storm Water Improvements account
#M3631; and
Whereas, the final contract price is $20,848.50.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 19th day of September , 2017
Ma or
Approved by
ATTEST: e V
;.ity Clerk
It was moved by sotchway and seconded by
adopted, and upon roll call there were:
Ayes: Nays:
X
X
X
X
X
X
X
P renglmasterslacphwrk.doc
9117
,damp
City Attorney's Office
Dickens the Resolution be
Absent:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
r 4 CITY OF IOWA CITE
�r COUNCIL ACTION REPOR 3T d
September 19, 2017
Resolution accepting the work for the Kiwanis Park Storm Sewer
Improvements Project.
Prepared By: Scott Sovers - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution, Engineer's Report
Executive Summary:
The project generally involved the installation of storm sewer to facilitate drainage within
Kiwanis Park.
Work on the project was recently completed by Lynch Excavating Inc. of West Branch, IA, in
substantial accordance with the plans and specifications. The Engineer's Report and
Performance and Payment bonds are on file with the City Engineer.
❖ Project Estimated Cost: $ 23,122.10
❖ Project Bid Received: $ 23,715.90
❖ Project Actual Cost: $ 20,848.50
ENGINEER'S REPORT
July 5, 2017
1 t 1
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
City Clerk
Iowa City, Iowa
Re: Willow Creek/Kiwanis Park Improvements Project Phase 1
Dear City Clerk:
I hereby certify that the construction of the Willow Creek/Kiwanis Park Improvements Project
Phase 1 has been completed by All American Inc. of West Liberty, Iowa in substantial
accordance with the plans and specifications prepared by HBK Engineering of Iowa City, Iowa.
The project was bid as a unit price contract and the final contract price is $329,961.13.
There were no change or extra work orders for the project.
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
J'aason Havel, .E.
City Engineer
Prepared by: Kim Sandberg, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5139
Resolution No. 17-299
Resolution accepting the work for the 2016 Summer Sidewalk
Repair Project
WHEREAS, the Engineering Division has recommended that the work for construction of the
2016 Summer Sidewalk Repair Project, as included in a contract between the City of Iowa City
and Feldman Concrete of Dyersville, Iowa, dated July 8, 2016, be accepted; and
Whereas, the Engineer's Report and the performance and payment bond have been filed in the
City Engineer's office; and
Whereas, funds for this project are available in the Sidewalk Inspection account # 22710220; and
Whereas, the final contract price is $64,800.14.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 19th day of September , 2017
yor
Approved by
Attes
Cit Clerk City Attorney's office -7%rZ�r7
It was moved by Botchway and seconded by Dickens the Resolution be
adopted, and upon roll call there were:
Ayes
x
Nays:
Absent:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
r ' CITY OF IOWA CIT�0%
-^� COUNCIL ACTION REPOR 3
September 19, 2017
Resolution accepting the work for the 2016 Summer Sidewalk Repair
Project
Prepared By: Kim Sandberg - Program Assistant
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: None
Recommendations: Staff. Approval
Commission: N/A
Attachments: Resolution, Engineers Report
Executive Summary:
The project was let as a Competitive Quotation project and has been completed by Feldman
Concrete of Dyersville, Iowa, in substantial accordance with the plans and specifications. The
Engineer's Report and Performance and Payment bonds are on file with the City Engineer as a
Competitive Quotation project.
Project Estimated Cost: $ 63,000.00
Project Bid Received: $ 60,565.60
❖ Project Actual Cost: $ 64,800.14
� r
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
ENGINEER'S REPORT (319) 356 - 5009 FAX
www.icgov.org
September 6, 2017
City Council
City of Iowa City, Iowa
Re: 2016 Summer Sidewalk Repair Project
Dear City Council:
I hereby certify that the construction of the 2016 Summer Sidewalk Repair
Project has been completed by Feldman Concrete of Dyersville, Iowa, in
substantial accordance with the plans and specifications prepared by the City of
Iowa City.
The final contract price is $64,800.14.
I recommend that the above -referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Jas' on Havel, P.E.
City Engineer
3d(2)
Prepared by: Scott Sovers, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)3565142
Resolution No. 17-300
Resolution authorizing the extension of the contract for the
annual Pavement Repair Project
Whereas, a request for unit prices related to annual pavement repairs (November 1, 2016 -
October 31, 2017) associated with water main breaks was bid as an informal project in October
2016; and
Whereas, two bids were received for the project; and
Whereas, All American Concrete, Inc. of West Liberty, Iowa submitted the lowest responsible bid
for construction of the above named project; and
Whereas, in the previous three years, the cost of pavement repairs for water main breaks has
averaged $102,000 per year; and
Whereas, due to an increased number and size of repairs, the contract amount is anticipated to
exceed $150,000; and
Whereas, the current purchasing policy requires expenditures exceeding $150,000 to be
authorized by the City Council; and
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City Manager hereby has authority to enter into a contract for the 2016-2017
Pavement Repair Project with All American Concrete in an amount in excess of $150,000
but less than $225,000.
Passed and approved this 19th day of September 2017
M yor
Approved by
Attest . A
Cit Clerk City Attorney's Office
It was moved by Botchwav and seconded by Dickens the Resolution be
adopted, and upon roll call there were:
Ayes:
X
X
X
X
X
X
X
Nays:
Absent:
Botchway
Cale
Dickens
Mims
Taylor
Thomas
Throgmorton
I r i
Ott
CITY OF IOWA CITY
COUNCIL ACTION REPOR
September 19, 2017
Resolution authorizing the extension of the contract for the annual
Pavement Repair Project.
Prepared By: Scott Sovers - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: Final contract amount is anticipated be approximately $200,000 or less.
Funding for the project is available in the Water Divisions Operating
Budget, account # 73730130
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The informally bid pavement repair contact value is approaching $150,000. This resolution
requests council authorization for the contract to exceed $150,000, as required by the current
purchasing policy.
Background / Analysis:
Each year there are, on average, approximately 60 water main breaks within the City. Street
and or sidewalk pavement typically needs to be removed and replaced in order to repair the
water main. With limited resources and the emergency nature of the pavement repairs, the City
bids an annual pavement repair project to address damage resulting from water main breaks.
This year, the location, number and severity of water main breaks have increased the amount of
necessary pavement repairs as compared to recent previous years. Over the previous three
years, the cost of pavement repairs for water main breaks has averaged approximately
$102,000 per year. Based on repairs that have been completed to date this year, the current
contract amount is approaching $150,000. The final contract amount is anticipated to be less
than $200,000. According to the City's purchasing policy, contracts exceeding $150,000 require
authorization from the City Council.
Prepared by: Sarah Walz, Assistant Transportation Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5239
Resolution no. 17-301
Resolution authorizing the installation of speed humps on Friendship
Street, between Court Street and Brookside Drive.
Whereas, the City Council has established a traffic calming program for the City of Iowa City for
the purpose of considering neighborhood traffic calming projects; and
Whereas, the residents of Friendship Street, between Court Street and Brookside Drive, have
successfully completed the traffic calming process according to the City Council's approved
procedure; and
Whereas, a neighborhood survey has been conducted in accordance with the approved traffic
calming program and an 82% majority of respondents indicated they are in favor of speed humps;
and
Whereas, the City Council finds said proposal to be in the public interest and is consistent with its
adopted traffic calming program.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The proposal for speed humps on Friendship Street, between Court Street and Brookside
Drive, is hereby approved.
2. City staff is directed to proceed with the installation of speed humps on Friendship Street,
between Court Street and Brookside Drive.
Passed and approved this 19th day of September 20jl,
4 "' /— �—
JA Throgmorton, Mayor
0
Approved by
Attests%�5 � Q.�e
KellicF'�17A.c.O.,����
ru IinE�g,City City Attorney's Office
It was moved by Botchway and seconded by Dickens fhe Resolution be adopted,
and upon roll call there were:
Ayes: Nays: Absent:
% Botchway
% Cole
x Dickens
Resolution No.
Page 2
x Mims
x Taylor
x Thomas
x Throgmorton
T
CITY OF IOWA CITE
COUNCIL ACTION REPO �19
September 19, 2017
Resolution authorizing the installation of speed humps on Friendship
Street, between Court Street and Brookside Drive.
Prepared By: Sarah Walz, Assistant Transportation Planner
Reviewed By: Kent Ralston, Transportation Planner
Tracy Hightshoe, Interim Director, Neighborhood and Development
Services
Fiscal Impact: Budgeted in CIP #S3816
Recommendations: Staff: Approval
Commission: N/A
Attachments: Correspondence, Resolution
Executive Summary:
The residents of Friendship Street, between Court Street and Brookside Drive, have
successfully completed the City of Iowa City's Traffic Calming Program. A traffic study
determined that the street qualifies for the program based on traffic speeds. Staff discussed the
proposal with residents at a neighborhood meeting. A follow-up survey of neighbors yielded an
82% response rate. Of those households that responded, 78% indicated their approval of the
proposal to install speed humps.
Background / Analysis:
In Spring 2016, residents of Friendship Street, between Court Street and Brookside Drive,
submitted a petition to the City seeking consideration for the traffic calming process. A traffic
study determined that the street qualified for the program based on speed. The speed limit on
Friendship Street is 25 MPH. While the average speed measured on this this portion of
Friendship Street is 27 MPH, 15% of drivers are travelling in excess of 32 MPH. This met the
minimum threshold for the traffic calming program, which requires that 15% of drivers are
exceeding the speed limit by 5 MPH or more.
Friendship Street functions as a collector for traffic between Court Street and Muscatine
Avenue. It also serves as a low -stress route for bicyclists and is part of a bus route (Court Hill).
Pavement widths can influence speed. The pavement width on this portion of Friendship is 25
feet, which is narrower than the current minimum standard of 26 or 28 feet in the subdivision
regulations. On -street parking can serve to slow vehicle speeds. On -street parking is allowed on
the south side of the street. Block lengths or the frequency of intersections can also influence
speed. The block length between Court Street and Arbor Drive is over 900 feet (300-600 feet is
the recommended block length in the current subdivision regulations).
Staff reviewed the traffic study and street context with the City Engineer, Streets Department,
and the Fire Department to consider appropriate ways to address the speeding issue. As part of
that discussion lane striping, speed humps, and street medians were all considered. After
review, staff concluded that speed humps would be the safest and most effective means for
r ' CITY OF IOWA CITY
-^� COUNCIL ACTION REPORT
lowering speeds.
Neighborhood Process: A neighborhood meeting was held on July 19 to discuss options for for
slowing speeds. The meeting was well attended with more than 11 households represented at
the meeting. After discussion of the options available, the consensus was to pursue installation
of speed humps.
On July 30, a survey was mailed to residents. The City's Traffic Calming Program requires at
least 50% of those addresses surveyed to return their survey postcard and, of those households
that respond, 60% must indicate support for the proposed traffic calming project. Staff mailed
surveys to 33 addresses located directly adjacent to the affected portion of Friendship Street.
Responses were returned by 27 households: an 82% response rate. Of those responding, 6
households checked "no" and 21 households checked "yes" with regard to the proposed
installation of speed humps. That is 78% (21 of 27) in support of installation of speed humps.
On September 5, signs were posted along Friendship Street, between Court Street and
Brookside Drive, and notice was posted to Nextdoor (the community's social network site) to
provide opportunity for the public to share input with Council.
Funding for traffic calming projects is allocated from a line item in the CIP (S3816). The cost to
construct a single speed hump is approximately $1,500 to $2,000. Staff is recommending 4
speed humps along this portion of the street in order to meet the optimal spacing
recommendations necessary to lower speeds. Speed humps are located so as not to conflict
with driveways, intersections, or storm water drainage.
Sarah Walz
From: EvanCmattC@aol.com
Sent Tuesday, August 29, 2017 2:16 PM
To: Sarah Walz
Subject: Traffic Claming
I did not receive the surveys mailed on July 30, most likely because my address is Court St, and not Friendship. I did
receive a letter today explaining the proposal to install speed humps on Friendship Street between Court Street and
Brookside Drive. I'm writing you to say, I am definitely in favor of doing sol
We built this house ourselves, and moved in, in 1972. Much has changed in east Iowa City, since 1972. And the speed
at which people travel on Friendship and Court Streets is one of the greatest. My driveway enters off Friendship Street,
and backing out, I have to check both North and South, as well as try to determine if anyone on Court Street is turning
onto Friendship. Drivers come around the corner from Court Street to Friendship Street so fast, that I'm sure I would get
hit if I happened to be in the street leaving my driveway. The speed drivers descending the grade from Court Street down
Friendship Street is unbelievable. So, it is my hope that speed humps can be installed, and only wish something could be
done to slow traffic on Court Street also. Lots of children are in that area now, heading for school. I hope it doesn't take a
terrible accident to initiate some means of slowing that traffic too.
Thank you, and good luck getting this done.
Evan C Matthews
3401 E Court St.
evancmattCobaol.com
Sarah Walz
From: Julie Aschenbrenner <aschenbrennerJulie@gmail.com>
Sent: Tuesday, September 05, 2017 2:18 PM
To: Streets for People
Subject: Traffic humps on Friendship
As a resident on Willow St that frequently drives down Friendship, 1 think another option that would greatly
help the traffic flow on that street would be to somehow limit on street parking. Friendship St. isn't that wide,
it's got quite a few curves and difficult to see cross -streets, it has bus traffic ... not very conducive to good traffic
flow when you then add all the cars parked on the street.
Thanks for considering,
Julie Aschenbrenner
Sarah Walz
From: Stephanie Watson -Mendoza <swmendoza09@hotmafl.com>
Sent: Tuesday, September 05, 2017 7:58 PM
To: Streets for People
Subject: Question
Hello,
I am a resident of Dover Street that connects to Friendship. We get a considerable amount of cut -through drivers who
neglect to follow the speed limit. Our house sits on the bend and we have watched car after car take the for the past
two years take the turn like it is a raceway.
I appreciate the efforts of the neighbors on Friendship to reduced high speeds however, I don't see how this small area
is going to be effective in solving the overall safety concerns. If anything, It will only make speeders go even faster on
Dover Street to make up for loss time. I think this needs to be considered as it impacts my family with children who play
outside and my neighbors who also have children.
The City should be aware of the streets that have been largely known for speeding due to cut -through drivers. Some
streets in this area include Friendship, Dover and Esther.
Thank you for your time in reading my concerns,
Stephanie Watson -Mendoza
Sent from my iPhone
Sarah Walz
From: Amanda McFadden <amwilson03@gmail.com>
Sent: Wednesday, September 06, 2017 9:46 AM
To: Streets for People
Subject: Traffic Calming on Friendship St between Court and Brookside
Hello,
I read about the Traffic Calming study for Friendship St between Court and Brookside on Next Door. I am a
resident of the adjoining Norwood Circle. I fully support the installation of speed humps on this portion of
Friendship St. Thank you to the residents and the City for taking action to address this need.
Sincerely,
Amanda
Sarah Walz
From: Mary Kundert <mekundert@gmail.com>
Sent: Wednesday, September 06, 201710:13 PM
To: Streets for People
Subject: Friendship St Traffic Calming
Thank you for addressing traffic speeds on Friendsip Street. I only wish and hope that you will consider
starting the "calming" at the comer of Friendship St. and Meadow or at First Ave and Friendship.
My parents live on the S.E. corner of Friendship and Meadow (2701 Friendship St) . I can attest to witnessing
traffic exceeding the speed limit by many mph (often dangerously) in front their house for many years.
A car taming right from Friendship St. onto Meadow at high speed plunged through a fence and multiple feet
down a small hill into the middle of my parents backyard where my mother had been gardening just a couple of
minutes earlier. Thankfi lly, my mother had just gone inside and did not get hit, injured, or killed. I have had
my car hit at high speed when parked in the street in front of their home. Multiple members of the family living
in the house to the east of them have also had their cars hit.
Hopefully the calming starting at Brookside and Friendship will also help slow traffic on the portion of
Friendship St. going west from Brookside to I st Ave.
As you are most likely aware residents on Dover St. below Muscatine Ave and on Catskill Ct use Meadow St to
get to Friendship and then tum left to get to First Ave or right to get to Court St on the way to Scott Blvd
essentally using Friendship as an arterial street.
There is also traffic associated with "cut throughs" on Dover coming from residential areas south of Muscatine
Ave. It's well known that you can avoid the Muscatine/ First Ave
stoplight by using Dover to Meadow to Friendship to get First Ave.
Thank you for your consideration of the traffic speeds on Friendship St and associated initiatives to "calm" .
With kind regards,
Mary Kundert
43 Wakefield Ct.
Iowa City
Kellie Fruehling
From:
Kent Ralston
Sent:
Monday, September 11, 2017 2:21 PM
To:
'bryan-ringen@uiowa.edu'
Cc:
*City Council
Subject:
friendship street
Hello Mr. Ringen—Thank you for sharing your concerns regarding the traffic calming proposal to add speed humps on
Friendship Street. The proposal to add speed humps should not affect buses negatively and the Iowa City Transit
Manager is supportive of the project. The design of the proposed speed humps allows them to be traversed by bicyclists
with little issue. The speed humps will also be constructed where there is a gap between the speed hump and the curb
to allow for water to properly drain from the street. This gap also allows an opportunity for bicyclists to ride around the
speed humps should they so choose.
'Speed humps', as proposed to be constructed on Friendship Street, are also different than 'speed bumps'. Speed
humps are intended to be driven over between 20-25mph whereas speed bumps are only intended to be driven over at
5mph — speed bumps are typically found in parking lots and are much more severe than what is proposed for Friendship
Street.
Again, thank you very much for sharing your concerns regarding this matter. If you have any further questions please
don't hesitate to contact me directly.
Best regards,
Kent Ralston, AICP
Executive Director I Metropolitan Planning Organization of Johnson County
Transportation Planner I City of Iowa City
410 E. Washington St. Iowa City, IA 52240
319.3565253
From: Ringen, Bryan J [mailto:bryan-ringen@uiowa.edu]
Sent: Monday, September 11, 2017 8:37 AM
To: Council
Subject: friendship street
Please do not put speed bumps on friendship street. I ride my bike on that street.
Also take the City Bus. That would not be good to have all those bumps on the Bus!
Bryan Ringen
3568 Vista Park Drive
Iowa City Iowa 52245
tate Handouts Distributed --11-3d (9)
Kellie Fruehling
From: Barbara Meredith <besm50@icioud.com>
Sent: Monday, September 18, 2017 8:23 PM
To: Council (Date)
Cc: Streets for People
Subject: Your vote on speed humps for Friendship Street - September 19, 2017
For your meeting of September 19, 2017, we would like to encourage you all to vote IN FAVOR of installing
speed humps on Friendship Street, between Court Street and Brookside Drive, as proposed.
We live in that neighborhood and we recently had an overwhelming vote approving the speed hump installation.
Due to the ridiculous amount of speeding in our neighborhood, the residents are fed up.
Here are some points which we hope will help you make the determination we in the neighborhood are hoping
for.
• First of all, many thanks to Sarah Walz and Kent Ralston from MPO for their help in this process.
• Our family has lived at 3209 Friendship Street since 1990, so we're well aware of the speeding situation,
and how it has escalated over time.
• We've seen families move away, in part, due to the speeding traffic and concern for their children's
safety.
• Recently a new neighbor hesitated to purchase his home when he witnessed a speeder as he was viewing
the house.
• Children are generally prohibited from playing on the front sidewalk for safety reasons. That doesn't
make it easy to visit with your neighbors.
• Speeding seems to be getting worse; we try to use hand signals or other to get them to slow down -
we're either totally ignored, or, just not seen at all because they are driving so fast.
• Our street appears to be a byway from east Court to Muscatine Avenue, by way of Brookside and
Willow; many people are using it for a short cut.
• Our stretch of Friendship Street is designated by the Urban Federal Functional Classification system as a
LOCAL road. It was developed in the 1960s, and is unrestricted for approximately one mile. That's a
long stretch, which allows drivers to pick up speed. Currently, local roads are not designed in this
manner for this very reason.
• The curve at the eastern intersection with Court Street seems to encourage speeders, as if they were on a
race track. In other instances it throws them off guard and they narrowly miss oncoming traffic.
• One time a speeder ran off the road at the curve (headed east), and traveled through two yards before
plowing into and totaling a personal vehicle parked in a driveway!
Remember, we had an 82% response rate to the neighborhood survey and of those, 72% voted to have the city
install speed humps. Those are big numbers; please don't disappoint us.
Thank you very much for your consideration of this matter.
Barbara and Bill Meredith
3209 Friendship Street
SCO )
Prepared by: Sara Greenwood Hektoen, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA
52240;319-356-5030 Resolution no. 17-302
Resolution of Intent to Consider Conveyance to the State of Iowa a
Portion of Vacated Right -of -Way Adjacent to 2222 Old Highway 218
South and Setting a Public Hearing on Said Proposal for October 3,
2017.
Whereas, the City of Iowa City is applying for a vacation of the unimproved right of
way north of McCollister Blvd, west of South Riverside Drive adjacent to at 2222 S
Riverside Drive.
Whereas, the right of way appears to be part of an old alignment of South Riverside
Drive; and
Whereas, the intent of the vacation is to allow it to be conveyed to the State of Iowa
for the use and benefit of the University of Iowa; and
Whereas, the City of Iowa City is the abutting owner to the south - the City has no
interest in retaining this segment of right of way, though sanitary sewer is located under
this.area and thus an easement for that purpose will be necessary; and
Whereas, the Planning and Zoning commission has considered and recommends
approval of the vacation of this right-of-way; and
Whereas, City Council is considering approval of the vacation; and
Whereas, if approved, this conveyance would be done in exchange for the State's
conveyance of certain right-of-way to the City on Block 44, Original Town (the alley
bisecting the City Hall parking lot) so that it may be incorporated into redevelopment
thereof.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City Council does hereby declare its intent to consider the conveyance of vacated
right-of-way adjacent to 2222 Old Highway 218 South to the State of Iowa for the use
and benefit of the University of Iowa, subject to a sanitary sewer easement and in
consideration for the State's conveyance to the City of the alley right-of-way in Block
44, Original Town, Iowa City, Iowa.
2. A public hearing on said proposal should be and is hereby set for October 3, 2017, at 7
p.m. in Emma J. Harvat Hall at City Hall, 410 E. Washington St., Iowa City, Iowa, or if
said meeting is cancelled, at the next meeting of the City Council thereafter as posted
by the City Clerk. The City Clerk is hereby directed to cause Notice of Public Hearing
to be published as provided by law.
Passed and approved this 19 h day of September , 2017.
MAYOR
Approved by
ATTES �Gvlvt i>
CI YCLERK U City Attomey'sOffice
,
Resolution No.
Page 2
17-302
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
Dickens the
AYES:
NAYS: ABSENT: ABSTAIN:
x
Botchway
x
Cole
x
Dickens
X
Mims
x
Taylor
x
Thomas
x
Throgmorton
r 1 CITY OF IOWA CIT09-1917
•��
COUNCIL ACTION REPO e -
September 19, 2017
Resolution of Intent to Consider Conveyance to the State of Iowa a Portion
of Vacated Right -of -Way Adjacent to 2222 Old Highway 218 South and
Setting a Public Hearing on Said Proposal for October 3, 2017.
Prepared By:
Sara Hektoen, Assistant City Attorney
Reviewed By:
Eleanor Dilkes, City Attorney
Geoff Fruin, City Manager
Fiscal Impact:
None
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution
Executive Summary:
This resolution sets a public hearing on the conveyance of certain right-of-way adjacent to 2222
Old Highway 218 South to the State of Iowa for the use and benefit of the University of Iowa.
Currently this property is used for the University Surplus.
Background /Analysis:
This right-of-way is not used for traffic circulation, but rather only provides access to the surplus
University Surplus building on 2222 S. Riverside Drive. Sanitary sewer is located in this right-of-
way, and thus the conveyance will be subject to an easement for such purpose.
In exchange for this conveyance to the State, the State would convey its interest in the alley
bisecting City Hall block to the City so that it may be incorporated into redevelopment of that
block for Augusta Place.
Prepared by: John Yapp, Devel. Services, 410 E. Washington St., Iowa City, IA 52240; 319-356-5252 (VAC17-00001)
Resolution No. 17-303
Resolution vacating alley right of way in Block 44, Original
Town Plat
Whereas, the City of Iowa City is applying for a vacation of alley right-of-way in Block 44, Original
Town Plat, which is located north of and adjacent to City Hall; and
Whereas, the alley right of way provides access solely to the City Hall parking lot and does not
provide access to any private property; and
Whereas, a development agreement has been approved to permit redevelopment of the City Hall
parking lot north of City Hall; and
Whereas, with redevelopment of the parking lot north of City Hall, the alley right of way is no
longer necessary; and
Whereas, necessary access and utility easements will be created commensurate with the
conveyance of said alley right of way.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The vacation of the following described right-of-way in Block 44, Original Town Plat, City of
Iowa City, is hereby approved:
Alley right of way in Block 44 of the Original Town Plat, Iowa City, IA excepting the S 10' of
the W 120'.
Passed and approved this 19th day of September 20_,
41,1-�
Ma or
Approved by
Attest -r GLce
City Clerk
It was moved by Ml and secon y
be adopted, upon roil call there were:
PCD/temptates/vacV-00001 resoluUmdoc
�� sr-c�
CitXAttorney's Office
Bot way the ResoluL�i�¢3 17
Absent:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
5b
jG
Prepared by: John Yapp, Devel. Services, 410 E. Washington St., Iowa City, IA 52240; 319-356-5252 (VAC17-00001)
Resolution No. 17-304
Resolution vacating right of way adjacent to 2222 Old
Highway 218 South
Whereas, the City of Iowa City is applying for a vacation of right of way adjacent to 2222 Old
Highway 218 South; and
Whereas, the right of way is part of an old alignment of South Riverside Drive; and
Whereas, the right of way is unimproved, is not used for general traffic circulation, and is not
planned to be used for general traffic circulation; and
Whereas, the right of way is only used for access to the property at 2222 Old Highway 218 South;
and
Whereas, it is in the best interests of the City to vacate the right of way and allow it to be
conveyed to the owner of 2222 Old Highway 218 South.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. Vacation of the following described right-of-way adjacent to 2222 Old Highway 218 South is
hereby approved:
Commencing at the Southwest corner of Section 22, Township 79 North, Range 6 West of
the 5"' Principal Meridian, City of Iowa City, Johnson County, Iowa; thence N00°27'59",
along the west line of government Lot 5, a distance of 793.86 feet; thence S89°32'01"E,
99.38 feet to a point on the northerly right-of-way line of McCollister Boulevard and the
southeasterly right-of-way line of South Riverside Drive and the point of beginning; thence
N58°33'57"W, 73.87 feet to a point on said northerly right-of-way line of McCollister
Boulevard and the northwesterly right-of-way line of South Riverside Drive; thence
N58`02'19"E, along said northwesterly right-of-way line, 298.80 feet; thence S44`58'47"E,
67.71 feet to a point on said southeasterly right-of-way line of South Riverside Drive;
thence S58°02'19"W, along said southeasterly right-of-way line, 281.00 feet to the point of
beginning, containing 0.44 acres (19,133 square feet) and is subject to easements and
restrictions of record.
Passed and approved this 19th day of September —'20 17
M or
Approved by
Attest: �G+tit
tar Clerk `City Attorney's Office ai��s l�7
KDRemplalesNac17-00002 resolution (2).doc
Resolution No. 17-304
Page 2
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT: ABSTAIN:
x Botchway
x Cole
x Dickens
x Mims
x Taylor
X Thomas
X Throgmorton
5-F
Prepared by: Bob, Senior Planner, 410 E. Washington St, Iowa City, IA 52240; 319-356-5240 (SUB17-00009)
Resolution No. 17-305
Resolution approving the preliminary plat of Country Club Estates,
Seventh and Eighth Addition, Iowa City, Iowa.
Whereas, the owner, S & J Development, filed with the City Clerk, an application for approval of
the preliminary plat of Country Club Estates, Seventh and Eighth Addition, Iowa City, Iowa; and
Whereas, the Department of Neighborhood and Development Services and the Public Works
Department examined the preliminary plat and recommended approval; and
Whereas, the Planning and Zoning Commission examined the preliminary plat and, after due
deliberation, recommended acceptance and approval of the plat; and
Whereas, the preliminary plat conforms with all of the requirements of the City Ordinances of the
City of Iowa City, Iowa.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
The preliminary plat of Country Club Estates, Seventh and Eighth Addition, Iowa City,
Iowa, is hereby approved.
2. The Mayor and City Clerk of the City of Iowa City, Iowa are hereby authorized and directed
to certify this resolution, which shall be affixed to the plat after passage and approval by
law.
Passed and approved this19tiday o{septemb2017
M or
ApprovedBy
Atte X/Gtivt aeko-a'
ity Clerk City Attorney's Office 9/ f 241 -7
It was moved by Botchway and seconded by Dickens the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
X
Botchway
X
Cole
X
Dickens
X
Mims
X
Taylor
X
Thomas
X
Throgmorton
s\pcd\preliminary plat- resolution.doc
To: Planning and Zoning Commission
Item: SUB17-00009
Country Clubs Estates
Seventh and Eighth Additions
GENERAL INFORMATION:
STAFF REPORT
Prepared by: Sylvia Bochner, Planning Intern
Date: August 17, 2017
Applicant: Watts Group Construction
425 E. Oakdale Blvd.
Coralville, IA 52241
319-665-9200
adam@wattsgroup.com
Contact: Duane Musser
1917 S. Gilbert St.
Iowa City, IA 52240
319-351-8282
d.musser@mmsconsultants.net
Property Owner:
Requested Action:
Purpose:
Location:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning:
Comprehensive Plan:
Neighborhood Open Space District:
File Date:
S&J Development, LLP
2231 E. 45th Street
Davenport, IA 52807
319-936-6839
speerhere@mchsi.com
Approval of preliminary plat
Development of an 81- lot residential subdivision
North of Rohret Road west of Lake Shore Drive
27.95 acres
Undeveloped (Currently in the process of being
rezoned from RR -1 and ID -RS to RS -5)
North: Residential (OPD -5)
South: Residential (County: R and AR)
East: Residential (RS -5)
West: Agricultural (County: A)
Southwest District Plan—Single Family/duplex
residential
SW5 Hunters Run
July 20, 2017
19-17
17
Mj5f
45 Day Limitation Period: September 3, 2017
BACKGROUND INFORMATION:
The applicant, Watts Group Construction, is requesting approval of the preliminary plat of Country
Club Estates Seventh and Eighth Additions, an 81 -lot, 27.95 -acre residential subdivision located
north of Rohret Road west of Lake Shore Drive. The preliminary plat of Country Club Estates
Fourth -Seventh Additions was approved in 2013, along with final plats of Country Club Estates
Fourth, Fifth, and Sixth Additions. Preliminary plats expire after 24 months unless the applicant
seeks an extension from City Council, so the preliminary plat for Country Club Estates Seventh
Addition expired in 2015. At this time, the applicant is seeking approval for a new design for
Country Club Estates Seventh Addition, along with the preliminary plat of Country Club Estates
Eighth Addition.
Most of the land in this subdivision (17.61 acres) was annexed into the city in 1994. Approximately
3 acres were annexed in 1972 as part of a larger annexation that was later developed into
Southwest Estates and Country Club Estates. County Club Estates Parts 1-6 were subsequently
subdivided and developed as single-family residential lots. A large portion of the subject area is
currently in the process of being rezoned from Rural Residential (RR -1) and interim Development
Single -Family Residential (ID -RS) to Low Density Single -Family Residential (RS -5). This
preliminary plat is subject to City Council approval of this rezoning.
The applicant has indicated that they have used the "Good Neighbor Policy". A Good Neighbor
Meeting and Open House was held on May 25.
ANALYSIS:
Comprehensive Plan: The subject area is located within the Weber Subarea of the Southwest
District Plan. The Southwest District Plan indicates that the undeveloped portion of the Country
Club Estates property is suitable for low-density single-family residential development, with a
density of 2-8 dwelling units per acre. With approximately 3 dwelling units per acre, Country Club
Estates Seventh and Eighth Additions fall within the range of densities deemed suitable for this
area.
Zoning: The subject area is in the process of being rezoned to Low Density Single -Family
Residential (RS -5), a zone which is primarily intended to provide housing for individual
households. In this zone, the minimum lot size is 8,000 square feet. However, Section 14 -2A -7A
of the zoning code provides a density bonus that reduces minimum lot size for dwellings whose
vehicular access to garages and off-street parking is restricted to an alley or private rear lane.
Under this provision, minimum lot size is reduced to 6,000 square feet with a minimum width of 50
feet. In this subdivision, the lots along Rohret Road are in compliance with this provision. All
remaining lots in the subdivision comply with the regulations for single-family lots without alley
access.
Subdivision Regulations: According to the subdivision regulations, block faces along local
and collector streets should be between 300 and 600 feet. Longer block faces may be allowed
in cases of large lot commercial, industrial, or rural residential development, or where
topography, water features, or existing development prevents shorter block lengths. In these
cases, midblock pedestrian connections may be required. On arterial streets, the subdivision
regulations state that blocks should be at least 600 feet.
Most blocks within this subdivision meet these regulations. The block along the arterial street,
Rohret Road, is approximately 1200 feet long. However, the block on the south side of
Tumbleweed Terrace, a local residential street, is approximately 900 feet, longer than the
maximum 600 feet. Because of this, a pedestrian connection is required between Tumbleweed
Terrace and Rohret Road. The preliminary plat includes a 15 foot trail easement within a 50 to
59 foot wide outlot that connects Tumbleweed Terrace and Rohret Road and ends at the
intersection with Yuma Drive. The remaining blocks in the subdivision are less than 600 feet and
meet the subdivision regulations.
This subdivision involves the creation of two new streets: Sedona Street, a looped local
residential street that connects to Rohret Road, and Yuma Drive, a short local residential street
that connects Sedona Street to Tumbleweed Terrace. Tumbleweed Terrace is an east -west
local residential street that connects to Lake Shore Drive and will be extended from an earlier
phase of Country Club Estates. Subdivision regulations require that local residential streets
have a 60 foot right-of-way and a minimum 26 foot street width. All streets in this subdivision
meet these regulations.
The subdivision also includes a private residential alley behind the lots on Rohret Road. This
alley will provide the only vehicular access to these lots. A residential alley has a minimum of a
20 -foot right-of-way and 16 -foot pavement width. This alley meets these requirements, with a
proposed 40 -foot right-of-way and 20 -foot pavement width. Because the alley is an 1100 foot,
unimpeded straight road, the preliminary plat includes traffic calming devices to prevent
speeding and protect pedestrians. These include two speed tables and a raised crosswalk for
the connecting pedestrian trail.
The subdivision includes two outlots that provide access easements and open space, which will
be deeded to the Country Club Estates Homeowners' Association.
To prevent issues with double frontages for lots 72-81, Slothower Road should be vacated. This
can be done if and when the land to the west is annexed.
Infrastructure: Rohret Road is a rural cross section with chip seal surface and drainage
ditches. When Irving Weber School was built, the City improved Rohret Road to a point
approximately 500 feet west of Phoenix Drive. When Country Club Estates Part Three was
developed, the developer extended the improvements of Rohret Road up to Lake Shore Drive.
As a condition of rezoning the property, the applicant has agreed to improve Rohret Road to
Sedona Street, the first intersection that provides access to the next phase of development. The
applicant agrees to pay 50% of the cost of improving the street to the western city limits. The
City and/or future private development to the south will be responsible for the other 50%.
Until Rohret Road is fully improved, trash and recycling collection for the lots along Rohret Road
must be done via the private rear alley. Because the City does not collect trash and recycling
from private alleys, trash and recycling from these lots must be collected by a private hauler.
The applicant has submitted a water pressure study demonstrating that water pressure is
adequate to serve the proposed subdivision.
Neighborhood Open Space: During a previous phase of Country Club Estates, approximately
4.7 acres were dedicated for parkland. This dedication was intended to provide open space for
future phases of Country Club Estates, including the area in this subdivision. No additional open
space fees will be required.
Stormwater management: The previous phase of Country Club Estates was designed to
manage stormwater for this development with a stormwater detention basin located north of the
subject area.
Sanitary Sewer Service: Sanitary sewer service is available to serve this property as a result of
the lift station installed for earlier phases of Country Club Estates.
Infrastructure fees: A water main extension fee of $435 per acre applies to this subdivision.
Payment of this fee will need to be addressed in the legal papers at the time of final plat approval.
STAFF RECOMMENDATION:
Staff recommends that SUB17-00009, an application submitted by Watts Group Construction for
a preliminary plat of Country Clubs Estates Seventh and Eighth Additions, an 81 -lot, 26.37 -acre
residential subdivision located of Rohret Road west of Lake Shore Drive be approved
ATTACHMENTS:
1. Location Map
2. Preliminary Plat
Approved by:
John Yapp, Development Services Coordinator
Department of Neighborhood and Development Services
ll
plication submitted by Watts Group
)nstruction for the approval of the
minary plat for Country Club Estates,
tenth Addition, 2 6.3 7 acres located
•theast of the intersection of Rohret
• 2
CITY OF IOWA CI
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SEVENTH AND EIGHTH ADDITION
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Planning and Zoning Commission
August 17, 2017—Formal Meeting
Page 5 of 12
DEVELOPMENT ITEM (SUB17-00009):
Discussion of an application submitted by Watts Group Construction for a preliminary plat of
Country Club Estates Seventh and Eighth Additions, a 27.95 -acre, 81 -lot residential subdivision
located north of Rohret Road and west of Lake Shore Drive.
Bochner presented the Staff report and began by showing pictures of the subject property. This
area is in the process of being rezoned from Rural Residential (RR -1) and Interim Development
Single -Family Residential (ID -RS) to Low Density Single -Family Residential (RS -5). The
applicant used the "Good Neighbor Policy". A Good Neighbor Meeting and Open House was
held on May 25. The subject area is located within the Weber Subarea of the Southwest District
Plan. The Southwest District Plan indicates that the undeveloped portion of the Country Club
Estates property is suitable for low-density single-family residential development, with a density
of 2-8 dwelling units per acre. This plan show approximately 3 dwelling units per acre, so it falls
within the Plan's range. The subject area is in the process of being rezoned to Low Density
Single -Family Residential (RS -5), a zone which is primarily intended to provide housing for
individual households. In this zone, the minimum lot size is 8,000 square feet. However, Section
14 -2A -7A of the zoning code provides a density bonus that reduces minimum lot size for
dwellings whose vehicular access to garages and off-street parking is restricted to an alley or
private rear lane. Under this provision, minimum lot size is reduced to 6,000 square feet and in
this subdivision, the lots along Rohret Road are in compliance with this provision.
According to the subdivision regulations, block faces along local and collector streets should be
between 300 and 600 feet and on arterial streets, the subdivision regulations state that blocks
should be longer than 600 feet. All the streets in this proposed development met that
requirement except for Sedona Street but because it is longer than recommended there is a
pedestrian access trail. The two new streets created in this subdivision are Sedona Street and
Yuma Drive. Tumbleweed Terrace will be extended into this subdivision from a prior
development. All of these streets meet the subdivision regulations of having a 60 foot right-of-
way and a minimum 26 foot street width. The subdivision also includes a private residential
alley behind the lots on Rohret Road. Because the alley is an 1100 foot, unimpeded straight
road, the preliminary plat includes traffic calming devices to prevent speeding and protect
pedestrians. These include two speed tables and a raised crosswalk for the connecting
pedestrian trail.
The subdivision includes two outlets that provide access easements and open space, which will
be deeded to the Country Club Estates Homeowners' Association. To prevent issues with
double frontages for lots 72-81, Slothower Road should be vacated. This can be done if and
when the land to the west is annexed.
Bochner stated that in terms of the infrastructure Rohret Road is a rural cross section with chip
seal surface and drainage ditches. When prior phases of this subdivision were built the
developer improved Rohret Road up to Lakeshore Drive. As a condition of the rezoning of this
area the developer agreed to improve Rohret Road up to Sedona Street. The applicant agrees
to pay 50% of the cost of improving the street to the western city limits. The City and/or future
private development to the south will be responsible for the other 50%.
Until Rohret Road is fully improved, trash and recycling collection for the lots along Rohret Road
must be done via the private rear alley. Because the City does not collect trash and recycling
from private alleys, trash and recycling from these lots must be collected by a private hauler.
Planning and Zoning Commission
August 17, 2017 — Formal Meeting
Page 6 of 12
In terms of open space during a previous phase of Country Club Estates, approximately 4.7
acres were dedicated for parkland. This dedication was intended to provide open space for
future phases of Country Club Estates, including the area in this subdivision so no additional
open space fees will be required.
Bochner explained that stormwater management is also provided through a previous phase by a
stormwater basin located north of the subject area. Sanitary sewer service is available to serve
this property as a result of the lift station installed for earlier phases of Country Club Estates.
The applicant has submitted a water pressure study demonstrating that water pressure is
adequate to serve the proposed subdivision.
Staff recommends that SUB17-00009, an application submitted by Watts Group
Construction for a preliminary plat of Country Clubs Estates Seventh and Eighth Additions,
an 81 -lot, 26.37 -acre residential subdivision located of Rohret Road west of Lake Shore
Drive be approved.
Hensch asked why Yuma Drive was just continued rather than putting in the pedestrian
walkway. Miklo said Staff did consider that at the concept plan phase but after discussions
with the developers it was decided to allow the pedestrian walkway rather than a street
connection.
Hensch asked if Tumbleweed Terrace connects to Slothower Road. Miklo said it does but
that section of Slothower Road has been abandoned by the County so it is not possible to
drive on it.
Dyer asked if Sedona Street opens onto Rohret Road. Bochner replied that yes, Sedona Street
opens in two different places, one closer to Lake Shore Drive and then again further west closer
to Slothower Road. Dyer asked then why is Rohret Road not being improved to the western
intersection wiht Sedona Street. Parson noted that discussion was had when the rezoning was
discussed and had to do with the conditions on the south side of the road. Miklo added that the
Commission has made a recommendation to the City Council that when they do the Capital
Improvements Plan they include the remainder of Rohret Road.
Hensch mentioned the correspondence the Commission received concerning possible drainage
onto a neighboring property and asked if there was a grading plan that accompanies this item.
Miklo noted that there is a grading plan and he has also passed the neighbors letter of concern
onto the City Engineer. Miklo also stated by looking at the plans, the drainage should go the
other direction and not affect the neighbor's lot.
Hensch opened the public discussion.
Ron Amelon (MMS Consultants) is representing the developer. As far as the concerns about
the drainage the back lot line is the low area and the back yards of lots 4 & 5 will drain towards
that back lot line but won't actually drain onto the other property. There will be a swale there to
collect the water before it gets onto the neighboring lots and then direct that water down to the
detention basin.
Signs asked when there is a neighbor or citizen that expresses a concern, does someone reach
out to them to explain the solution. Amelon said they typically do, especially if they approach
them, he is happy to meet with them and show them the designs.
Planning and Zoning Commission
August 17, 2017 — Formal Meeting
Page 7 of 12
David Tokuhisa (3305 Rohret Road SW) lives on the south side of Rohret Road and has a
couple of concerns. On May 25 at the Good Neighbor Meeting the representative for the
developer stated they would have Rohret Road resurveyed so that any further extension of
Rohret Road would be to the north of the center line, they wouldn't be taking any more right-of-
way. His question is if that has been decided and become locked into black and white print or
was it just used to placate homeowners. He recalls it was briefly mentioned during the rezoning
meeting but doesn't know if anything came of it.
He also has concerns about the higher density housing along Rohret Road where on the other
side are very large lots and houses. That will be quite a contrast. Tokuhisa thought it was the
desire of the City to have those situations not happen and he suggests those smaller lots be
moved to the west along Slothower Road and the larger lots placed along Rohret Road.
Therefore his two recommendations are that the current development plan be modified to
ensure that the road is going to be developed further north and also so that the smaller lots be
moved away from the very large lots across the road.
Miklo stated that the subdivision has been designed to shift Rohret Road to the north when it is
rebuilt so that no additional right-of-way will -be needed from the properties to the south. Miklo
confirmed that is reflected on the preliminary plat. Miklo added that one benefit of having the
smaller lots with the alley access on Rohret Road is Rohret Road is considered an arterial street
and this will minimize the driveways onto the street.
Hensch asked if there would be parking allowed on Rohret Road and Miklo said there is no
parking allowed.
Brenda Scott (1783 Lake Shore Drive) asked about the other three lots and if they would have
similar drainage away from their houses (lots 1, 2 &3). She also is concerned about the
walkway and not having a solid walkway for the 41 — 32 area as she is guessing that walkway is
going to be a great cut through for kids since they are only a few blocks from Weber School and
if there is not a good sidewalk between that area all the school that is a danger as people speed
fast down that section of Rohret Road. Scott also mentioned that she didn't understand what
vacating Slothower means between the area of 72 & 81 because at the Good Neighbor Meeting
there was a request for Slothower to be connected to Melrose Avenue and if it's vacated does
that mean it is shut down forever.
Hensch said that currently Slothower Road is a level B road which is in the County system but it
is at a much lower maintenance level (maybe grading once a year with no snow removal in
winter time). Miklo added that the intent is that the connection to Melrose will occur on the
northern part of Slothower Road and it is the southern part that has been abandoned. Miklo
said there are streets in early phases of Country Club Estates that are intended to connect to
Slothower Road and be the path to Melrose Avenue.
Scott stated her concern with that is what happen at Shannon Drive, a lot of cut -through traffic in
the neighborhoods where there are a lot of kids out walking around. It would be better to have
the through traffic go on the back of the property where there are less kids walking around.
Scott also asked if it was outlots A & C that will be deeded to the HOA. Bochner confirmed that
was correct.
Miklo stated regarding the sidewalk, although the street (Rohret Road) will not be improved,
there will be a sidewalk put in place for all lots along Rohret Road.
Planning and Zoning Commission
August 17, 2017 — Formal Meeting
Page 8 of 12
John Niemever (1405 Lake Shore Drive) was unable to attend the Good Neighbors Meeting and
has a couple questions for clarification. Nothing has been said about the timetable for moving
this project forward and is there any generalization that can be made with respect to that. Miklo
responded that in terms of City approvals, if all moves forward and the final plat is approved yet
this fall it would then be a question to the developer when they would want to start construction.
Niemeyer asked if it was the Watts Group that is developer in question. Miklo said he believes
Watts Group is in the process of purchasing the land, but at the time the application was
submitted the land was still owned by S&J Development.
Niemeyer stated that reference was made to 4.7 acres of open space and he is unclear where
that space is. Bochner confirmed that land has been dedicated to be a park that will be built in
the future and she showed the area on the map, near Wildcat Lane and Slothower Road.
Niemeyer asked if that open area would not be accessible from the tract currently under
consideration. Bochner said not directly, but once the streets are built it will be accessible to the
neighborhood. Miklo noted that the 4 acres is intended to serve all of Country Club Estates.
Niemeyer questioned the pedestrian path, what it is for and where it starts, where it ends, and
who will use it. Bochner showed on the map that the pedestrian path begins on Rohret Road
and goes through to Tumbleweed Terrace, it is an extension of Yuma Drive as pedestrian
access. Niemeyer asked if then students perhaps walking westbound along Rohret Road would
approach the pedestrian walkway and reach their homes that way. Bochner acknowledged that
is a possibility.
Kolleen Shields (3335 Rohret Road SW) stated she has similar concerns to her neighbors that
are also on the south side of Rohret Road. The characteristics of their lots, which are 2-4 acres
in size and that the area on the north side was zoned Rural Residential for 1 acre lots or greater
when they bought their properties 30 years ago and now they will be looking at this higher
density housing. It is so uncharacteristic with what they consider their neighborhood. She is
also concerned about how much of the development that can occur before the road actually
gets finalized down where their home is located. Can those lots be developed without Rohret
Road being finalized? Right now one cannot walk on Rohret Road so that pedestrian path has
no purpose leading to Rohret Road.
Miklo noted that the subdivision has been designed to include an 8 foot sidewalk along Rohret
Road and the grading for these lots will need to accommodate that. When Rohret Road is
improved in the future those sidewalks may need to be rebuilt but once houses are built here
there has to be a sidewalk.
Brenda Scott (1783 Lake Shore Drive) asked based on the talk about grading to the north, does
that mean any existing homes (such as hers on the corner of Rohret Road and Lake Shore
Drive) may have extra land taken from them to allow for the grading to the north. Miklo replied
that no current home lots will be affected, the shift occurs after the entrance to Lake Shore
Drive.
Ron Amelon (MMS Consultants) said that as far as the drainage on lots 1, 2 & 3 when the
previous phase was graded the back lot line was designed to be the low point through there
such that it would pick up water on both sides. The runoff from those three lots would not
actually go onto the other lots, it would stay on the back lot line and keep the water there and
send it up to Tumbleweed Terrace and collect it in the City storm sewer system.
Planning and Zoning Commission
August 17, 2017 — Formal Meeting
Page 9 of 12
With regards to the construction schedule, Amelon said the developer would like to get started
grading this fall and depending on the weather and when approvals are granted there is a
possibility they may get streets paved yet this year, but if not then in the spring.
Hensch closed the public discussion.
Parsons moved to recommend the Commission approve SUB17-00009, an application
submitted by Watts Group Construction for a preliminary plat of Country Clubs
Estates Seventh and Eighth Additions, an 81 -lot, 27.95 -acre residential subdivision
located of Rohret Road west of Lake Shore Drive.
Theobald seconded the motion.
Hensch asked how wide the pedestrian walkway will be and what the surface of the
walkway will be. Miklo said it will be five -feet wide and concrete similar to other sidewalks
in the subdivision. The sidewalk along Rohret Road will be eight -feet wide and also
concrete.
Dyer asked if the houses along Rohret Road face Rohret Road. Miklo confirmed they do.
A vote was taken and the motion passed 6-0.
DEVELOPMENT ITEM (SUB17-00012):
Discussion of an application submitted by Linda Lovik for a preliminary plat of Lovik First
Addition, an 11 -acre, Not residential subdivision located at 4665 Herbert Hoover Highway SE.
Miklo stated that this property was recently rezoned from County Commercial to County
Residential. The City recommended that the County approve the rezoning subject to a
Conditional Zoning Agreement (CZA) requiring City approval of any development of the property
and the owner consenting to annexation of all parts of this property upon the annexation of any
adjacent property. This property is in the City's growth area and they do anticipate it will be
annexed. The current owner has already agreed to be annexed whenever an adjacent property
annexes. The City is comfortable with that agreement because it will make sure this does not
prevent another property from being annexed.
The intent is to subdivide the property into a lot with the existing house, create a second lot that
could be sold and both properties would have access from the current driveway through a
temporary easement. It is anticipated in the long term Grindstone Lane which is being built
currently in Churchill Meadows will continue to the west and likely go through this property and
that would provide long-term access to the second lot. There would also be an access and
utility easement across Lot 2 to provide for a future connection of Lot 1 to Grindstone Drive so
that Lot 1 would not have driveway access onto Herbert Hoover Highway. The remainder of the
property will be an outlot that can only be developed on annexation to the City under the
Conditional Zoning Agreement. Upon replatting of Outlet A, a street system must be
established, thereby eliminating the need for this access easement and giving Lots 1 and 2
access to the new street. Lot 1 is currently served by a private water well and a septic system
and the proposal is to use that common well and septic system for the additional lot. Upon
annexation these properties would hook into the City's systems upon the owner's expense.
Anjana Aggarwal, MD
1653 Lake Shore Dr
Iowa City, IA -52246
August 17, 2017
To,
Planning and Zoning Commission and City Council
410 East Washington Street
Iowa City, IA 52240
RE: WATTS GROUP CONSTRCUTION APPLICATION FOR COUNTRY CLUB ESTATES SEVENTH AND EIGHT
ADDITIONS
Dear Sir/Madam
1 reside on 1653 Lake Shore Dr. The proposed application by Watts group will adjoin my backyard with
lots 4,5,6,7 potentially in the preliminary plat that was mailed to me by the city. I wish to put forth my
concern about how the drainage of water will be addressed by the city council and planning commission
with this regard. I am concerned that if not drained properly my basement will get flooded as I am on a
flatter lot that is lower than the adjoining homes to me and the area in question to be developed.
I have been disappointed by the contractors, subcontractors, realtors and builders in my neighborhood
in past when I have approached them with issues while they build around my home. It seems that the
home owner has very few rights to protect ourselves in Iowa City from infringes by these people. I would
like to know if the Watts group will take responsibility in writing for protection of the home owners
adjacent to their construction with regards to storm water drainage into our basements and lots. They
should also be responsible for any lawn damage that can occur while they are under construction from
silting and shifting of debris etc.
I request the city council to provide for protection of the homes and home owners already standing
adjacent to the proposed development by Watts Group.
Thankyou
Anjana Aggarwal MD
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PRELIMINARY PLAT
COUNTRY CLUB ESTATES,
SEVENTH AND EIGHTH ADDITION
IOWA CITY, IOWA
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Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 17-306
Resolution authorizing conveyance of Lot 2 in the Industrial
Park to Alexander Lumber, Inc.
Whereas, the 4201h Street Industrial Park is a 173 -acre shovel ready parcel for industrial use,
which the City has been marketing since acquisition in 2008;
Whereas, City staff has negotiated a purchase agreement, contingent on City Council approval,
for the sale of Lot 2 (approximately 11.2 acres) to Alexander Lumber, Inc. for $589,495; and
Whereas, following the public hearing on the proposed conveyance, the City Council finds that
the conveyance is in the public interest.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The purchase agreement with Alexander Lumber, Inc. is approved, and upon the direction
of the City Attorney, the Mayor and the City Clerk are authorized to execute a warranty
deed conveying the City's interest in Lot 2 of the Industrial Park.
2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any
actions necessary to consummate the conveyance required by law.
Passed and approved this 19th day of September 2017.
M OR
ATTEST:
CI CLERK
Approved by
S''& --C) S -1-t
City Attorney's Office
Resolution No. 17-306
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
x
x
ABSENT: ABSTAIN:
Dickens
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
-7.
Prepared by: Ben Clark, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5436
Resolution No. 17-307
Resolution approving plans, specifications, form of agreement,
and estimate of cost for the construction of the City of Iowa City
Belt Filter Press Replacement Project, establishing amount of
bid security to accompany each bid, directing City Clerk to post
notice to bidders, and fixing time and place for receipt of bids.
Whereas, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Sludge Biosolid Dewatering Equipment
Replacement account # V3141.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 5% (five percent) of bid payable to Treasurer, City
of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 2:30 p.m. on the 10t day of October,
2017. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 17th day of October, 2017, or at a special meeting called for that
purpose.
Passed and approved this 19th day of September 12017
Ma or '
Approved by
Atte
Clerk ity Attorney's Office
Resolution No. 17-307
Page 2
It was moved by aotchway and seconded by Dickens the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
%
Botchway
x
Cole
x
Dickens
x
Mims
x
Taylor
%
Thomas
x
Throgmorton
W__4
L.
Prepared by Wendy Ford, Econ. Dev. Coordinator, 410 E Washington St Iowa City IA 52240 356-5248
Resolution No. 17-308
Resolution approving an agreement for private redevelopment by and
between the City of Iowa City, Iowa, and Hieronymi Partnership,
L.L.P., Hieronymus Square Developers, L.L.C., Iowa City ES Hotel,
L.L.C., and HS314, L.L.C.
Whereas, Hieronymus Square Developers, L.L.0 submitted a redevelopment proposal for a
mixed use complex, consisting of a 7 -story mixed-use building comprised of 45 residential units,
Class A office space and retail space, and a 7 -story extended -stay hotel with 91 rooms, hotel
amenities including an outdoor terrace, an indoor swimming pool and a fitness room (hereinafter
the "Project") and;
Whereas, this property is located within the City -University Project 1 Urban Renewal Area and is
subject to the City -University Project 1 Urban Renewal Plan, as amended by City Council on
May 2, 2017 (resolution 17-156)(" Plan"); and
Whereas, the Project for the redevelopment is consistent with the goals set forth in the City -
University Project 1 Urban Renewal Plan, as amended; and
Whereas, the Economic Development Committee considered said application and voted to
recommend approval to the City Council at its meeting on July 21, 2017, and;
Whereas, City Staff has reviewed the application and proposed Developer's Agreement and
recommends approval to the City Council; and
Whereas, in exchange for grant funds not to exceed $8,000,000, the owner and developers
have agreed to complete minimum improvements consisting of at least $40,753,776 in project
costs; and
Whereas, it is the determination of this City Council that acceptance of the proposal of the
Developer and approval of the Agreement for Private Redevelopment is in the public interest of
the residents of the City and is consistent with the purposes and objectives of the Plan.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY IOWA THAT
1. That the attached Agreement for Private Development by and between the City of Iowa
City Iowa and Hieronymi Partnership, L.L.P., Hieronymus Square Developers, L.L.C.,
Iowa City ES Hotel, L.L.C., And HS314, L.L.C. is In the public interest of the residents of
Iowa City.
2. That said Agreement is consistent with and authorized by the Urban Renewal Plan and
all applicable State and federal laws including, but not limited to, Iowa Code Chapters
15A and 403; and
3. That the Mayor is authorized and directed to execute the Agreement and the City Clerk
is authorized and directed to attest his signature and to affix the seal of the City Clerk
Resolution No. 17-308
Page 2
4. That the Mayor and City Clerk be and are hereby authorized and directed to take all
such actions and do all such things as they shall determine to be necessary or
appropriate to ensure the City's performance as provided therein.
5. That the City Manager is hereby authorized to administer the terms of the Agreement for
Private Development.
Passed and approved this 1 9th day of September , 2017.
M YOR
ATTEST: 2
CITY CLERK
Approved by
City Attorney's Office /
9/�31�7
Resolution No. 17-308
Page 3
It was moved by Mims and seconded by Bot
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
ABSENT: ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
AGREEMENT FOR PRIVATE DEVELOPMENT
By and Among
THE CITY OF IOWA CITY, IOWA,
HIERONYMI PARTNERSHIP, L.L.P.,
HIERONYMUS SQUARE DEVELOPERS, L.L.C.,
IOWA CITY ES HOTEL, L.L.C.
and
HS314, L.L.C.
September 19, 2017
Exhibit A — Development Property Legal Description
Exhibit B — Minimum Improvements and Uses
Exhibit C — Certificate of Completion
Exhibit D — Memorandum of Agreement for Private Redevelopment
Exhibit E —Opinion of Counsel
Exhibit F — Minimum Assessment Agreement
Exhibit G — Temporary Construction Easement
Exhibit H — Concept Plan
Exhibit I — Temporary Use of Right -of -Way Agreement
Exhibit J — Sample Deed Restriction
Exhibit K — Wage Theft Affidavit
Exhibit L — Iowa City Riverfront Crossing Affordable Housing Requirement Administrative
Rules
2
THIS AGREEMENT FOR PRIVATE DEVELOPMENT (hereinafter called
"Agreement" or "Development Agreement"), is made on or as of the 19'M day of
September, 2017, by and among the CITY OF IOWA CITY, IOWA, a municipality (hereinafter
called "City"), established pursuant to the Code of Iowa of the State of Iowa and acting under the
authorization of Chapters 15A and 403 of the Code of Iowa, 2017, as amended (hereinafter
called "Urban Renewal Act"); HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability
partnership (hereinafter "Owner"); HIERONYMUS SQUARE DEVELOPERS, L.L.C., an Iowa
limited liability company, IOWA CITY ES HOTEL, L.L.C., an Iowa limited liability company,
and HS314, L.L.C., an Iowa limited liability company (hereinafter collectively "Developers").
Owner and Developers all have an address at 711 South Gilbert Street, Iowa City, Iowa 52240.
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has
undertaken a program for the clearance and reconstruction or rehabilitation of an economic
development area in the City and, in this connection, is engaged in carrying out urban renewal
project activities in an area known as the City -University Project I ("Urban Renewal Area" or
"Area"), which area is described in the City -University Project I Plan ("Plan") approved for such
area by Resolution No. 2157 on October 2, 1969, and which Plan has been amended from time to
time; and
WHEREAS, a copy of the foregoing Urban Renewal Plan, as amended, has been
recorded among the land records in the office of the Recorder of Johnson County, Iowa; and
WHEREAS, the Owner owns certain property in the City ("Development Property")
upon which it desires, in partnership with Developers, to construct improvements in the form of
a hotel and a mixed commercial/Class A office/residential multi -story building, and agrees that
such improvements be operated in accordance with this Agreement; and
WHEREAS, the City believes that the development of the real property, located in the
foregoing Urban Renewal Area referred to as the Development Property and as described in
Exhibit A attached hereto and made a part hereof, pursuant to this Agreement and the fulfillment
generally of this Agreement, are in the vital and best interests of the City and in accord with the
public purposes and provisions of Chapters 15A and 403, and other applicable state and local
laws and requirements under which the foregoing project has been undertaken and is being
assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows.
ARTICLE I. DEFINITIONS
Section 1.I. Definitions. In addition to other definitions set forth in this Agreement, all
capitalized terms used and not otherwise defined herein shall have the following meanings unless
a different meaning clearly appears from the context:
Apreement means this Agreement and all exhibits and appendices hereto, as the same may
be from time to time modified, amended or supplemented.
Assessor's Minimum Actual Value means the agreed minimum actual value after taking
into consideration any factors such as "roll backs" which would reduce the taxable value of the
Minimum Improvements and the Development Property for calculation and assessment of real
property taxes, as set forth in the Minimum Assessment Agreement and Section 5.7.
Certificate of Completion means a certification in the form of the certificate attached
hereto as Exhibit C and hereby made a part of this Agreement, provided to Owner and
Developers pursuant to Section 4.4 of this Agreement.
City means the City of Iowa City, Iowa, or any successor to its functions.
City -University Proiect I Tax Increment Revenue Fund means the special fund of the City
created under the authority of Section 403.19(2) of the Code, as amended, and the Ordinance,
which fund was created in order to pay the principal of and interest on loans, monies advanced to
or indebtedness, whether funded, refunded, assumed or otherwise, including bonds or other
obligations issued under the authority of Section 403.9 or 403.12 of the Code, incurred by the
City to finance or refinance in whole or in part projects undertaken pursuant to the Urban
Renewal Plan for the Urban Renewal Area.
Code means the Code of Iowa, 2017, as amended.
Construction Plans means the plans, specifications, drawings and related documents
reflecting the construction work to be performed by Owner and Developers on the Development
Property with respect to the construction of the Minimum Improvements; the Construction Plans
shall be as detailed as the plans, specifications, drawings and related documents which are
submitted to the building inspector of the City as required by applicable City codes.
Commencement Date means the date of this Agreement.
County means the County of Johnson, Iowa.
Developers means HIERONYMUS SQUARE DEVELOPERS, L.L.C., an Iowa limited
liability company, IOWA CITY ES HOTEL, L.L.C., and Iowa limited liability company, and
HS314, L.L.C., an Iowa limited liability company, all having offices at 711 South Gilbert Street,
Iowa City, Iowa 52240.
Development Property means the property described in Exhibit A.
Economic Development Grants are as described in Article VIII.
Event of Default means any of the events described in Section 10.1 of this Agreement.
0
Mortgage means any Mortgage granted to secure any loan made pursuant to either a
mortgage commitment obtained by Owner and Developers from a commercial lender or other
financial institution to fund any portion of the construction costs and initial operating capital
requirements of the Minimum Improvements, or all such Mortgages as appropriate.
Hieronymus Square TIF Account means a separate account within the City -University
Project I Urban Renewal Tax Increment Revenue Fund of the City in which there shall be
deposited Tax Increments received by the City with respect to the Minimum Improvements.
Minimum Improvements means the construction of a hotel, and a mixed commercial/Class
A Office/residential multi -story building as fully detailed in Exhibit B, attached and incorporated
herein by this reference.
Mortgage means any mortgage or security agreement in which Owner and Developers has
granted a mortgage or other security interest in the Development Property, or any portion or
parcel thereof, or any improvements constructed thereon.
Net Proceeds means any proceeds paid by an insurer to Owner and Developers under a
policy or policies of insurance required to be provided and maintained by Owner and
Developers, pursuant to Article V of this Agreement and remaining after deducting all expenses
(including fees and disbursements of counsel) incurred in the collection of such proceeds.
Ordinance means Ordinance No. 01-3991 of the City, passed on December 11, 2001, under
which the taxes levied on the taxable property in the Area shall be divided and a portion paid into
the City -University Project I Tax Increment Revenue Fund.
Proiect means the construction and operation of the Minimum Improvements on the
Development Property, as described in this Agreement.
State means the State of Iowa.
Tax Increments means the property tax revenues, with respect to the Minimum
Improvements on the Development Property, divided and made available to the City for deposit
in the Hieronymus Square TIF Account of the City -University Project I Tax Increment Revenue
Fund under the provisions of Section 403.19 of the Code, as amended, and the Ordinance. The
base value for the Tax Increments shall be January 1 of the year preceding the effective date of
the Ordinance.
Termination Date means the date of termination of this Agreement, as established in
Section 12.11 of this Agreement.
Unavoidable Delays means delays resulting from acts or occurrences outside the
reasonable control of the party claiming the delay including but not limited to storms, floods,
fires, explosions or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts
or other labor disputes, litigation commenced by third parties, or the acts of any federal, state or
local governments] unit (other than the City with respect to the City's obligations).
Urban Renewal Plan means the Urban Renewal Plan approved in respect of the City -
University Project I Urban Renewal Area, described in the preambles hereof.
ARTICLE II. CONSTRUCTION AND USES.
Section 2.1 Minimum Improvements.
(a) The Owner and Developers' construction on the Development Property will
consist of a mixed-use retail/Class A office/ residential structure and a hotel as described more
fully on Exhibit B ("Minimum Improvements"). The Redeveloper hereby commits to a project
that includes a minimum total of $40,753,776 in development costs, including construction costs,
architectural fees, land costs, parking, opening costs, developer overhead, and financing costs.
Owner and Developers agree that they will cause the Minimum Improvements to be constructed
on the Development Property in substantial conformance with the Construction Plans approved
by the City. Owner and Developers agree that the scope and scale of the Minimum
Improvements to be constructed shall not be significantly less than the scope and scale of the
Minimum Improvements as detailed in the Construction Plans. The parties hereto acknowledge
that through the design process, the final number of residential dwelling units, the mix thereof,
and the final number of hotel units may deviate slightly from the current plans. The City
Manager may approve such minor deviations upon determining that they do not constitute
significant changes to the scope or scale of the Minimum Improvements. The design of the
Minimum Improvements must be approved by the Form -based Code Committee for
conformance with the Riverfront Crossings development standards, as set forth in Iowa City
Code of Ordinances 14-2G.
(b) In the event that Owner and Developers desire to stage construction on any City -
owned property, including right-of-way, the Court Street Transportation Center, or the
undeveloped portion of land north of the Court Street Transportation Center, Owner and
Developers shall first obtain from the City a temporary construction easement in a form
substantially similar to the Temporary Construction Easement Agreement attached hereto as
Exhibit J and incorporated herein by this reference.
(c) There will be a pedestrian access route to the City -owned Court Street
Transportation Center. Vehicular access routes to the City -owned Court Street Transportation
Center are also contemplated. In the event that the final construction drawings approved by the
City pursuant to Article II herein show pedestrian or vehicular access routes to the Development
Property through the Court Street Transportation Center, Owner and Developers must purchase
an access easement for such uses(s), the cost of said property rights shall be calculated based
upon the following formula: $200/square foot times the number of square feet in the easement
area X 10 percent. Owner and Developers' purchase of said easement rights shall be a
contingency of the foundation permit for construction of the Minimum Improvements on the
Development Property and must be satisfied prior to issuance thereof.
(d) In the event that the final Construction Plans approved by the City pursuant to
Article II.herein show awnings or other intrusions into the right-of-way, Owner and Developers
shall obtain from the City, at no cost, a temporary use of right-of-way agreement for such
temporary use. The agreement for said easement rights shall take a form substantially similar to
the Temporary Use of Right -of -Way Agreement, attached hereto as Exhibit E and incorporated
herein by this reference. Said Agreement shall be entered into before a building permit is issued
for any work in the proposed easement area.
Section 2.2 Affordable Housing Occupancy.
Owner and Developers acknowledge the City's requirement to provide affordable housing
pursuant to Iowa City Code of Ordinances 14-2G-8, and that because Owner and Developers are
receiving tax increment financing, they are obligated pursuant to the Iowa City Council
Economic Development policy to lease or sell 15% of the total residential units to income -
qualified residents, as defined in said ordinance, and administered according to Iowa City Code
of Ordinances 14-2G-8 and the adopted Administrative Rules set forth in Exhibit L hereto,
except as specifically set forth herein.
Based upon an assumption that there will be 45 total dwelling units in the Project, Owner
and Developers hereby agree to lease or sell seven (7) residential dwelling units to income -
eligible households in accordance with the limitations set forth herein. A minimum of two (2)
units shall be provided within the Mixed Use building described herein. These two units shall be
comprised of one 1 -bedroom unit and one 2 -bedroom unit, These two units shall be administered
as on-site Owner -Occupied or Affordable Rental Housing, as that term is defined in 14-2G-8.
Owner and Developers understand and acknowledge that notwithstanding the possible sale of the
two on-site units as Owner -Occupied Affordable Housing, they shall remain responsible for the
continued observance of and compliance with the affordability requirements during the entire
term of affordability provided herein. Owner and Developers may father satisfy this affordable
housing occupancy obligation through the provision of additional on-site affordable rental or
owner -occupied units or through the payment of a fee in lieu thereof in an amount established by
resolution of the City Council (currently $80,872 per unit). This determination shall be made and
any fee in -lieu paid prior to issuance of any building permit for construction of the Minimum
Improvements. Owner and Developers acknowledge that all affordable housing units shall be
constructed and pass final inspection contemporaneously with the market rate units, regardless of
whether they are on-site or off-site.
In the event that the final total number of dwelling units changes through the design review
and construction plan review process detailed herein, the final number of affordable housing
units required may change. Income documentation must be maintained by the Developer for the
most recent three years and presented to the City upon its request.
Said On-site Affordable Housing Units shall be affordable in accordance with the terms
hereof for a period of twenty (20) years from the date an occupancy permit is issued for the
Project ("term of affordability") and it is intended and agreed that the requirements of this
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section with respect to the Affordable Housing Units shall run with the land. The Developer
agrees for itself, its successors and assigns that each deed or other conveyance of the Affordable
Housing Units shall contain the use restrictions set forth herein and as required by Code Section
14-2G-8. A deed restriction running in favor of the City and in a form substantially similar to
that shown in Exhibit J attached hereto shall be recorded and restated on any deed transferring
title during the term of affordability to those unit or units designed as affordable housing in
satisfaction of this obligation. It is intended and agreed that the City and its successors shall be
deemed beneficiaries of these use restrictions, both for and in its own right and also for the
purposes of protecting the interests of the community and other parties, public or private, in
whose favor or for whose benefit such use restrictions have been provided. The City shall have
the right in the event of any breach of any affordable housing use restriction during the
applicable 20 year period to exercise all the rights and remedies, and to maintain any actions or
suits at law or in equity or other proper proceedings to enforce the curing of such breach of
affordable housing use restrictions, to which it or any other beneficiaries of such affordable
housing use restrictions may be entitled, and shall be entitled to recover, in addition to its court
costs, a reasonable attorney's fee to be fixed by the court, and such recovery shall include court
costs and attorney's fees on appeal, if any. Further, the City shall hold all right and authority to
agree to or provide any amendment, modification, waiver, termination or release of the
affordable housing use restriction on behalf of itself and other parties, public or private, which
are beneficiaries thereof (other than Developer, its successors and assigns). Said affordable
housing use restriction shall survive the termination of this Agreement.
Section 2.3. Construction Plans. Owner and Developers shall cause Construction Plans
to be provided to the City for the Minimum Improvements, which shall be subject to approval by
the City as provided in this Section 3.2. The Construction Plans shall be in conformity with the
Urban Renewal Plan, this Agreement, and all applicable federal, state and local laws and
regulations. The City shall approve the Construction Plans in writing if: (i) the Construction
Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans
conform to the terms and conditions of the Urban Renewal Plan; (iii) the Construction Plans
conform to all applicable federal, State and local laws, ordinances, rules and regulations, and
City permit requirements; (iv) the Construction Plans are adequate for purposes of this
Agreement to provide for the construction of the Minimum Improvements; and (v) no Event of
Default under the terms of this Agreement has occurred; provided, however, that any such
approval of the Construction Plans pursuant to this Section 3.2 shall constitute approval for the
purposes of this Agreement only and shall not be deemed to constitute approval or waiver by the
City with respect to any building, fire, zoning or other ordinances or regulations of the City, and
shall not be deemed to be sufficient plans to serve as the basis for the issuance of a building
permit if the Construction Plans are not as detailed or complete as the plans otherwise required
for the issuance of a building permit.
Approval of the Construction Plans by the City shall not relieve any obligation to comply
with the terms and provisions of this Agreement, or the provision of applicable federal, State and
local laws, ordinances and regulations, nor shall approval of the Construction Plans by the City
be deemed to constitute a waiver of any Event of Default.
Approval of Construction Plans hereunder is solely for purposes of this Agreement, and
shall not constitute approval for any other City purpose nor subject the City to any liability for
the Minimum Improvements as constructed.
Section 2.4. Commencement and Completion of Construction. Subject to Unavoidable
Delays, Owner and Developers shall cause construction of the Minimum Improvements to be
undertaken and completed no later than December 31, 2019. Time lost as a result of Unavoidable
Delays shall be added to extend this date by a number of days equal to the number of days lost as
a result of Unavoidable Delays. All work with respect to the Minimum Improvements to be
constructed or provided by Owner and Developers shall be in substantial conformity with the
Construction Plans approved by the building official or any amendments thereto as may be
approved by the building official.
Owner and Developers agree that they shall permit designated representatives of the City,
upon reasonable notice (which does not have to be written), to enter upon the Development
Property during the construction of the Minimum Improvements to inspect such construction and
the progress thereof.
Section 2.5. Certificate of Completion. Upon written request of Owner and Developers
after issuance of an occupancy permit for the Minimum Improvements, the City will furnish
Owner and Developers with a Certificate of Completion for the Minimum Improvements in
recordable form, in substantially the form set forth in Exhibit C attached hereto. Such Certificate
of Completion shall be a conclusive determination of satisfactory termination of the covenants
and conditions of this Agreement with respect to the obligations of Owner and Developers to
construct the Minimum Improvements.
The Certificate of Completion may be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Development Property at Owner and Developers'
sole expense. If the City shall refuse or fail to provide a Certificate of Completion in accordance
with the provisions of this Section 2.5, the City shall, within twenty (20) days after written
request by Owner and Developers, provide Owner and Developers with a written statement
indicating in adequate detail in what respects Owner and Developers have failed to complete the
Minimum Improvements in accordance with the provisions of this Agreement, or are otherwise
in default under the terms of this Agreement, and what measures or acts are necessary, in the
opinion of the City, for Owner and Developers to take or perform in order to obtain such
Certificate of Completion.
ARTICLE III. REPRESENTATIONS AND WARRANTIES.
Section 3.1. Representations and Warranties of the City. The City makes the following
representations and warranties:
(a) The City is a municipal corporation and political subdivision organized under the
provisions of the Constitution and the laws of the state and has the power to enter into this
Agreement and carry out its obligations hereunder.
(b) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, nor will result in
a breach of, the terms, conditions or provisions of any contractual restriction, evidence of
indebtedness, agreement or instrument of whatever nature to which the City is now a party or by
which it is bound, nor do they constitute a default under any of the foregoing.
Section 3.2. Representations and Warranties of Owner and Developers. The Owner and
Developers make the following representations and warranties:
(a) Owner and Developers are companies duly organized and validly existing under the
laws of the State of Iowa that have all requisite power and authority to develop and construct the
Project, to carry on their businesses as now conducted and as presently proposed to be
conducted, and to enter into and perform their obligations under this Agreement.
(b) This Agreement has been duly and validly authorized, executed and delivered by
the Owner and Developers and, assuming due authorization, execution and delivery by the City,
is in full force and effect and is a valid and legally binding instrument of the Owner and
Developers enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights
generally. Owner and Developers shall provide an Opinion of Counsel in the form attached as
Exhibit E, to be signed concurrently with this Agreement and at other times requested by the
City.
(c) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, nor will not result
in a violation or breach of, the terms, conditions or provisions of the articles of incorporation,
bylaws, or any applicable governing document of Owner or Developers, or of any contractual
restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the
Owner or Developers are now a party or by which they or their property is bound, nor do they
constitute a default under any of the foregoing.
(d) There are no actions, suits or proceedings pending or threatened against or affecting
Owner or Developers in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could materially
adversely affect the business (present or prospective), financial position or results of operations
of Owner or Developers or which in any manner raises any questions affecting the validity of the
Agreement or the Owner or Developers' ability to perform their obligations under this
Agreement.
(e) Neither Owner nor Developers have received any notice from any local, state or
federal official that the activities of Owner or Developers with respect to the Development
Property may or will be in violation of any environmental law or regulation (other than some on -
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site environmental contamination which the Owner and Developer are working with Braun
Intertec to address and remediate or such other notices, if any, of which the City has previously
been notified in writing). Neither Owner nor Developers are currently aware of any state or
federal claim filed or planned to be filed by any party relating to any violation of any local, state
or federal environmental law, regulation or review procedure applicable to the Development
Property, and neither Owner nor Developers are currently aware of any violation of any local,
state or federal environmental law, regulation or review procedure which would give any person
a valid claim under any state or federal environmental statute with respect thereto.
(f) Owner and Developers will cause the Minimum Improvements to be constructed
in substantial accordance with the terms of this Agreement, the Urban Renewal Plan and all
local, state and federal laws and regulations.
(g) Owner and Developers will use their best efforts to obtain, or cause to be obtained,
in a timely manner, all required permits, licenses and approvals, and will meet, in a timely
manner, all requirements of all applicable local, state, and federal laws and regulations which
must be obtained or met before the Minimum Improvements may be lawfully constructed.
(h) Owner and Developers have firm commitments for permanent financing for the
Project in an amount sufficient, together with equity commitments, to successfully complete the
Minimum Improvements in substantial accordance with the Construction Plans contemplated in
this Agreement.
(i) Owner and Developers will cooperate fully with the City in resolution of any
traffic, parking, trash removal or public safety problems which may arise in connection with the
construction and operation of the Minimum Improvements. Owner and Developers shall submit
a written construction management plan to the Director of Public Works for approval. Owner
and Developers will coordinate staging for construction of the Minimum Improvements with the
Public Works Director. Owner and Developers shall obtain from the City any necessary
temporary construction easements in accordance with Section 2.1 herein.
0) Owner and Developers expect that, barring Unavoidable Delays, the Minimum
Improvements and Uses outlined in Exhibit B will be completed by December 31, 2019.
(k) Owner and Developers would not undertake their obligations under this Agreement
without the Economic Development Grants contemplated by Section 8.1 hereof (the "Economic
Development Grants") to Owner and Developers pursuant to this Agreement.
(1) Neither Owner, nor Developers, nor any person or entity with an ownership
interest of more than 25% of Owner or Developers have been adjudicated guilty or liable in
any judicial or administrative proceeding of committing a repeated or willful violation of the
Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor
Standards Act or any comparable state statute or local ordinance, which governs the payment of
wages in the last 5 years.
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ARTICLE IV. INSURANCE.
Section 4.1. Insurance Requirements
(a) Upon completion of construction of the Minimum Improvements and at all rimes
prior to the Termination Date, Owner and Developers shall maintain, or cause to be maintained,
at their cost and expense (and from time to time at the request of the City shall fiumish proof of
the payment of premiums on) insurance as follows:
(i) Insurance against loss and/or damage to the Minimum hnprovements under a
policy or policies covering such risks as are ordinarily insured against by similar businesses,
including (without limitation, the generality of the foregoing) fire, extended coverage, vandalism
and malicious mischief, explosion, water damage, demolition cost, debris removal, and collapse
in an amount not less than the full insurable replacement value of the Minimum Improvements,
but any such policy may have a deductible amount of not more than $50,000. No policy of
insurance shall be so written that the proceeds thereof will produce less than the minimum
coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise,
without the prior consent thereto in writing by the City. The term "full insurable replacement
value" shall mean the actual replacement cost of the Minimum Improvements (excluding
foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be determined from time to time at the request of
the City, but not more frequently than once every three years, by an insurance consultant or
insurer selected and paid for by Owner and Developers and approved by the City; and
(ii) Comprehensive general public liability insurance, including personal injury
liability for injuries to persons and/or property, including any injuries resulting from the
operation of automobiles or other motorized vehicles on or about the Development Property, in
the minimum amount for each occurrence and for each year of $1,000,000.
(iii) Such other insurance, including worker's compensation insurance respecting
all employees of Owner and Developers, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure; provided that
Owner and Developers may be self-insured with respect to all or any part of its liability for
worker's compensation.
(b) All insurance required by this Article IV to be provided prior to the Termination
Date shall be taken out and maintained in responsible insurance companies selected by Owner
and Developers, which are authorized under the laws of the State to assume the risks covered
thereby. Owner and Developers will deposit annually with the City copies of policies evidencing
such insurance or a certificate or certificates or binders of the respective insurers stating that such
insurance is in force and effect. Unless otherwise provided in this Article IV, each policy shall
contain a provision that the insurer shall not cancel or modify it without giving written notice to
Owner and Developers . and the City at least thirty (30) days before the cancellation or
modification becomes effective. Not less than fifteen (15) days prior to the expiration of any
policy, the party responsible for obtaining the same shall furnish the City evidence satisfactory to
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the City that the policy has been renewed or replaced by another policy conforming to the
provisions of this Article IV, or that there is no necessity therefor under the terms hereof.
(c) Owner and Developers agree to notify the City immediately in the case of damage
exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any portion
thereof resulting from fire or other casualty. Net Proceeds of any such insurance shall be paid
directly to Owner or Developers, and Owner and Developers will forthwith repair, reconstruct,
and restore the Minimum Improvements to substantially the same or an improved condition or
value as they existed prior to the event causing such damage and, to the extent necessary to
accomplish such repair, reconstruction and restoration, Developer will apply the Net Proceeds of
any insurance relating to such damage received by Owner or Developers to the payment or
reimbursement of the costs thereof.
(d) Owner and Developers shall complete the repair, reconstruction, and restoration
of the Minimum Improvements, or other similar improvements agreed upon by and between the
City, Owner and Developers, whether or not the Net Proceeds of insurance received by Owner or
Developers for such purposes are sufficient.
ARTICLE V. COVENANTS
Section 5.1. Maintenance of Property. Owner and Developers will maintain, preserve and
keep the Development Property, including but not limited to the Minimum Improvements, in
good repair and working order, ordinary wear and tear excepted, and from time to time will make
all necessary repairs, replacements, renewals and additions.
Section 5.2. Maintenance of Records. Owner and Developers will keep at all times proper
books of record and account in which full, true and correct entries will be made of all dealings
and transactions of or in relation to the business and affairs of Owner and Developers in
accordance with generally accepted accounting principles, consistently applied throughout the
period involved, and Owner and Developers will provide reasonable protection against loss or
damage to such books of record and account.
Section 5.3. Compliance with Laws. Owner and Developers will comply with all laws,
rules and regulations relating to the Minimum Improvements.
Section 5.4. Non -Discrimination. In operating the Minimum Improvements, Owner and
Developers shall not discriminate against any applicant or tenant because of age, color, creed,
disability, gender identity, marital status, national origin, race, religion, sex, sexual orientation,
presence or absence of dependents or public assistance source of income. Developer shall ensure
that any such applicants, employees, and tenants are considered and are treated without regard to
their age, color, creed, disability, gender identity, marital status, national origin, race, religion,
sex, sexual orientation, presence or absence of dependents or public assistance source of income.
This Section shall not be construed to prohibit utilizing income as a qualification for occupancy
of the Affordable Housing units provided by Owner and Developers pursuant to Section 2.2
"Affordable Housing Occupancy" above.
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Section 5.5. Available Information. Upon request, Owner and Developers shall promptly
provide the City with copies of information requested by the City that are related to this
Agreement so that the City can determine compliance with the Agreement,
Section 5.6. Annual Certification. To assist the City in monitoring and performance of
Owner and Developers hereunder, a duly -authorized officer of Owner and Developers shall
annually certify to the City: (a) proof that all ad valorem taxes on the Development Property
and Minimum Improvements have been paid for the prior fiscal year; (b) an annual tenant
housing report which, at a minimum, shall include statistics relating to the income -eligible
households occupying the on-site affordable housing units per Section 2.1 above, such as the unit
number and type, household size, income, and lease dates and rents or sale price, as applicable;
(c) certification that such officer has re-examined the terms and provisions of this Agreement and
that at the date of such certification, and during the preceding twelve (12) months, Developer is
not, or was not, in default in the fulfillment of any of the terns and conditions of this Agreement
and that no Event of Default (or event which, with the lapse of time or the giving of notice, or
both, would become an Event of Default) is occurring or has occurred as of the date of such
certification or during such period, or if the signer is aware of any such default, event or Event of
Default, said officer shall disclose in such statement the nature thereof, its period of existence
and what action, if any, has been taken or is proposed to be taken with respect thereto. Such
statement, proof and certificate shall be provided not later than November 1 of each year,
commencing November 1, 2020 and ending on November 1, 2035, both dates inclusive. Owner
and Developers shall provide supporting information for their annual certifications upon request
of the City.
Section 5.7 Minimum Assessment Agreement. Owner and Developers (and the holder of
any Mortgage) shall agree to, and with the City shall execute, an Assessment Agreement
pursuant to the provisions of Iowa Code Section 403.6(19) (2017) specifying the Assessor's
Minimum Actual Value for the Minimum Improvements on the Development Property for
calculation of real property taxes in the form attached as Exhibit F ("Assessment Agreement" or
"Minimum Assessment Agreement"). Specifically, Owner and Developers (and the holder of
any Mortgage) shall agree to an Assessor's Minimum Actual Value for the Minimum
Improvements to be constructed on the Development Property of not less than $16,709,195, after
taking into consideration any factors such as "roll backs" which would reduce the taxable value
of the property, as of January 1, 2020, until the Assessment Agreement Termination Date (as
defined below). Such minimum actual value at the time applicable is herein referred to as the
"Assessor's Minimum Actual Value." Nothing in the Assessment Agreement shall limit the
discretion of the Assessor to assign an actual value to the Development Property in excess of
such Assessor's Minimum Actual Value nor prohibit Owner and Developers from seeking
through the exercise of legal or administrative remedies a reduction in such actual value for
property tax purposes; provided, however, that Owner and Developers shall not seek a reduction
of such actual value below the Assessor's Minimum Actual Value in any year so long as the
Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect
until December 31, 2034 ("Assessment Agreement Termination Date"). The Assessment
Agreement shall be certified by the Assessor for the County as provided in Iowa Code Section
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403.6(19) (2017) and shall be filed for record in the office of the Johnson County Recorder, and
such filing shall constitute notice to any subsequent encumbrancer or purchaser of the
Development Property (or part thereof), whether voluntary or involuntary. Such Assessment
Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser
or lienholder, as well as all prior lienholders (such as the holder of any Mortgage), each of which
shall sign a statement of consent to the Minimum Assessment Agreement.
Section 5.8. Real Property Taxes and Assessments. Owner and Developers shall pay or
cause to be paid when due all real property taxes and assessments with respect to all and any
parts of the Development. Owner and Developers agree that they will not seek:
(a) Administrative or judicial review of the applicability or constitutionality of any
Iowa tax statute relating to the taxation of property contained on the Development Property
determined by any tax official to be applicable to the Development Property, the Minimum
Improvements, or Owner and Developers, or raise the inapplicability or constitutionality of any
such tax statute as a defense in any proceedings, including delinquent tax proceedings; and
(b) Any tax deferral or abatement, either presently or prospectively authorized under
Iowa Code Chapters 403 and 404 or any other local or State law, of the taxation of real property
contained on the Development Property.
Section 5.9 Contractor Labor Law Compliance. Owner and Developers will require, in
their agreement with their general contractor, that the General Contractor i) comply with all state,
federal and local laws and regulations, including, but not limited to the requirements of Iowa
Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code
Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage),
the Federal Fair Labor Standards Act, and the Internal Revenue Code; ii) provide to the
Developer and the City, no later than the filing of an application for issuance of a building
permit, the names and addresses of each subcontractor and the dollar value of the work the
subcontractor is expected to perform; iii) demonstrate it has the capacity to meet all performance,
and labor and material payment, bonding requirements relative to the Minimum Improvements;
iv) provide to the City a certificate by the General Contractor's insurer that it has in force all
insurance required with respect to construction of the Minimum Improvements; v) demonstrate
that it has required all subcontractors to agree, in writing, that the subcontractor will comply with
all state, federal and local laws and administrative rules and regulations, including, but not
limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa
Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code
Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue
Code. Owner and Developers shall provide the City with sufficient evidence to establish
compliance with this requirement prior to issuance of any building permit.
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ARTICLE VI. ASSIGNMENT AND TRANSFER
Section 6.1. Status of Owner and Developers: Transfer of Assets.
(a) As security for the obligations of Owner and Developers under this Agreement,
Owner and Developers represents and agrees that, prior to the Termination Date, Owner will
maintain existence as Iowa limited liability partnership and Developers will maintain existence
as Iowa limited liability companies, and will not wind up or otherwise dispose of all or
substantially all of their assets or assign their interest in the Development Property or Minimum
Improvements, or their interest in this Agreement to any other party, unless: (i) the transferee
partnership, corporation, limited liability company or individual assumes in writing all of the
obligations of Owner and Developers under this Agreement, and (ii) the City consents thereto in
writing in advance thereof, which consent shall not be unreasonably withheld. Notwithstanding
the foregoing, however, or any other provisions of this Agreement, Owner and Developers may
pledge any and/or all of its assets as security for any financing of the Minimum Improvements,
and the City agrees that Developer may assign its interest in the Economic Development Grants
being paid under this Agreement for such purpose.
(b) The Owner and Developers may submit the Development Property to a horizontal
property regime pursuant to Iowa Code Chapter 499B. The Mayor is authorized to execute a
amendment to this Agreement and the Minimum Assessment Agreement in accordance with
Section 12.8 for the limited purpose of allocating the rights and obligations set forth in this
Agreement to respective condominium units to be owned by one or more of the Owner or
Developers. Any other amendment to this Agreement must be approved by City Council unless
specifically stated herein.
(c) Notwithstanding anything herein to the contrary, however, the parties expressly
agree and acknowledge that Owner intends to transfer ownership of the Development Property to
the Developers prior to the commencement of construction of the Minimum haprovements and
that the City consents to said transfer. Therefore, no further consent from the City to the
Owner's transfer of the Development Property to the Developers is required. It is further
acknowledged and agreed that upon the transfer of the Development Property by the Owner to
the Developers, Owner shall be released from any further obligation under this Agreement of any
kind and that all further rights, title and obligations owed to or due from the City under this
Agreement shall vest solely in the Developers.
Section 6.2. Representation as to Development. Owner and Developers represent and
agree that their development of the Development Property, and their other undertakings pursuant
to this Agreement, are and will be used for the purpose of development of the Development
Property and not for speculation in land holding. Owner and Developers farther recognize:
(a) The importance of developing the Development Property to the general welfare of
the community;
(b) The substantial financing and other public aids that have been made available by
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law and by the City for the purpose of making such development possible; and
(c) Except for a change in the ownership or control of Owner and/or Developer(s)
caused by or related to the death of a member, estate planning of a member or retirement of a
member, when the remaining original controlling members of the Owner and/or Developer(s)
remain unchanged, the fact that any act or transaction involving or resulting in a significant
change in the ownership or with respect to the identity of the parties in control of Owner and
Developers or the degree thereof, is for practical purposes a transfer or disposition of the
Development Property then owned by Owner and Developers and the qualifications and identity
of Owner and Developers are of particular concern to the City. Owner and Developers further
recognize that it is because of such qualifications and identity that the City is entering into this
Agreement with Owner and Developers.
Section 6.3. Prohibition Against Transfer of Property and Assignment of Agreement.
For the reasons identified in Section 6.2, Owner and Developers represent and agree for
themselves and their successors and assigns, that:
(a) Owner and Developers have not made or created, and they will not, prior to the
completion of the Minimum Improvements and the delivery by the City of the Certificate of
Completion, make, create, or suffer to be made or created, any total or partial sale, assignment,
conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Development Property, or any part thereof or any interest
therein, or any contract or agreement to do any of the same, without the prior written approval of
the City. Notwithstanding said restrictions, Developers and/or Owner may:
(i) make such transfer or assignment for the purpose of obtaining financing
necessary to enable Owner and Developers or any successor in interest to the Development
Property, or any part thereof, to perform their obligations with respect to construction the
Minimum Improvements under this Agreement;
(ii) lease or sell commercial and residential condominium units at any time
subject to the terms of the Minimum Assessment Agreement and the restrictions on use with
respect to the affordable housing units described in Section 2.2 hereof;
(iii) have a change in ownership or control caused by or related to the death of
a member, estate planning of a member or retirement of a member, when the remaining original
controlling members of the Owner and/or Developer(s) remain unchanged;
(iv) make such a transfer or assignment for any other purposed authorized by
this Agreement.
(b) The City shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval that:
17
(i) Any proposed transferee shall have the qualifications and financial
responsibility, as determined by the City, necessary and adequate to fulfill the obligations
undertaken in this Agreement by Owner and Developers (or, in the event the transfer is or relates
to part of the Development Property, such obligations to the extent that they relate to such part).
(ii) Any proposed transferee, by instrument in writing satisfactory to the City
and in form recordable among the land records, shall, for itself and its successors and assigns,
and expressly for the benefit of the City, have expressly assumed all of the obligations of Owner
and Developers under this Agreement and the Assessment Agreement and agreed to be subject to
all the conditions and restrictions to which Owner and Developers are subject (or, in the event
the transfer is of or relates to part of the Development Property, such obligations, conditions, and
restrictions to the extent that they relate to such part). Provided, that the fact that any transferee
of, or any other successor in interest whatsoever to, the Development Property, or any part
thereof shall, whatever the reason, not have assumed such obligations or so agreed, shall not
(unless and only to the extent otherwise specifically provided in this Agreement or agreed to in
writing by the City) relieve or except such transferee or successor of or from such obligations,
conditions, or restrictions, or deprive or limit the City of or with respect to any rights or remedies
or controls with respect to the Development Property or the construction of the Minimum
Improvements; it being the intent of this, together with other provisions of this Agreement, that
(to the fullest extent permitted by law and equity and excepting only in the manner and to the
extent specifically provided otherwise in this Agreement) no transfer of, or change with respect
to, ownership in the Development Property or any part thereof, or any interest therein, however
consummated or occurring, and whether voluntary or involuntary, shall operate, legally or
practically, to deprive or limit the City of or with respect to any rights or remedies or controls
provided in or resulting from this Agreement and the Assessment Agreement with respect to the
Development Property and the construction of the Minimum Improvements that the City would
have had, had there been no such transfer or change.
(iii) There shall be submitted to the City for review all instruments and other
legal documents involved in effecting transfer; and if approved by the City, its approval shall be
indicated to Owner and Developers in writing. Such approval will not be unreasonably withheld.
Provided, that in the absence of specific written agreement by the City to the contrary, no
such transfer or approval by the City thereof shall be deemed to relieve Owner and Developers,
or any other party bound in any way by this Agreement or otherwise with respect to the
construction of the Minimum Improvements, or from any of their obligations with respect
thereto.
Section 6.4 Prohibition Against Use as Non -Taxable or Centrally Assessed Property.
During the term of this Agreement, Owner and Developers agree that no portion of the
Development Property or Minimum Improvements shall be transferred or sold to a non-profit
entity or used for a purpose that would exempt said portion of the Development Property or
Minimum Improvements from property tax liability. During the term of this Agreement,
Developer agrees not to allow any portion of the Development Property or Minimum
Improvements to be used as centrally -assessed property (including, but not limited to, Iowa Code
IN
§ 428.24 to 428.29 (Public Utility Plants and Related Personal Property); Chapter 433
(Telegraph and Telephone Company Property); Chapter 434 (Railway Property); Chapter 437
(Electric Transmission Lines); Chapter 437A (Property Used in the Production, Generation,
Transmission or Delivery of Electricity or Natural Gas); and Chapter 438 (Pipeline Property)).
ARTICLE VII. ECONOMIC DEVELOPMENT GRANTS
Section 7.1. Economic Development Grants.
For and in consideration of the obligations being assumed by the Owner and Developers
hereunder, and in fiutherance of the goals and objectives of the Urban Renewal Plan and the
Urban Renewal Act, the City agrees to make the following Economic Development Grants,
subject to the Owner and Developers being and remaining in compliance with the terms of this
Agreement and subject to the terms of this Article VII. Said Economic Development Grants
shall, in no event, exceed an aggregate amount of $8,000,000:
(a) $600,000 to Owner and Developers on or about March 31, 2020, or three (3) months
following the issuance of the Certificate of Completion, whichever is later.
(b) Up to fifteen (15) annual Economic Development Grants commencing on June 1,
2022, and ending on June 1, 2036, or when the total of all grants described in this Article VII is
equal to $8,000,000, whichever is earlier. All annual grants shall be equal to one hundred
percent (100%) per fiscal year of the Tax Increments (unless the total grant amount of
$8,000,000 is reached first) collected by the City with respect to the Minimum Improvements on
Development Property pursuant to Section 403.9 of the Urban Renewal Act under the terms of
the Ordinance (without regard to any averaging that may otherwise be utilized under Section
403.19(6) and excluding any interest that may accrue thereon prior to payment to the Developer)
during the preceding twelve-month period in respect of the Development Property and the
Minimum Improvements, but subject to adjustment and conditions precedent as provided in this
Article (such payments described in subsections (a) and (b) hereof being referred to collectively
as the "Economic Development Grants").
(c) The obligation of the City to make an Economic Development Grant to the
Developer in any year as specified above shall be subject to and conditioned upon the timely
filing by the Developer of all previous annual statements, proofs and certifications required
under Section 5.6 hereof and the City Manager's approval thereof. Beginning with the
November 1, 2020 certification, if the Developer's annual statement, proof and certification is
timely filed and contains the information required under Section 5.6 and the City Manager
approves of the same, the City shall certify to the County prior to December 1 of that year its
request for the available Tax Increments resulting from the assessments imposed by the County
as of January 1 of that year, to be collected by the City as taxes are paid during the following
fiscal year and which shall thereafter be disbursed to the Developer on June 1 of the following
fiscal year. (For example, if the Owner and Developers and the City each so certify on
November and December 2020 respectively, the first Economic Development Grant would be
paid to the Owner and Developers on June 1, 2022).
19
(d) In the event that the annual statement, proof or certificate required to be delivered
by the Owner and Developers under Section 5.7 is not delivered to the City by November 1 of
any year, the Owner and Developers recognize and agree that the City may have insufficient time
to review and approve the same and certify its request for Tax Increments to the County and that,
as a result, no Economic Development Grant may be made in respect thereof. The City
covenants to act in good faith to appropriately review and consider any late certification on the
part of the Owner and Developers, but the City shall not be obligated to make any certification to
the County for the available Tax Increments or make any corresponding payment of the
Economic Development Grant to the Owner and Developers if, in the reasonable judgment of the
City, it is not able to give appropriate consideration (which may include, but not be limited to,
specific discussion before the City Council at a regular City Council meeting with respect
thereto) to the Owner and Developers' certification due to its late filing. In the event Owner and
Developers fail to timely file an annual statement, proof or certificate due to an Unavoidable
Delay and, as a result, an Economic Development Grant cannot be make, Owner and Developers
may give written notice to the City and, if the City finds that the failure is due to an Unavoidable
Delay, the missed Economic Development Grant shall be made in the year succeeding the last
scheduled Economic Development Grant under Section 7. 1, subject to Owner and Developers'
filing under Section 5.6 and all other provisions of this Article VII with respect to such grant, it
being the intention of the parties to allow a one-time $600,000 lump sum Economic
Development Grant and up to fifteen (15) annual Economic Development Grants in an aggregate
amount not to exceed $8,000,000, if Owner and Developers are in compliance with this
Agreement.
(e) The final grant shall be adjusted, if necessary, if payment of 100% of Tats. Increments
for that grant would result in total, aggregate Economic Development Grants in an amount
exceeding $8,000,000. Such Economic Development Grants shall at all times be subject to
termination in accordance with the terms of this Article VII and Article X. Thereafter, the taxes
levied on the Development Property and Minimum Improvements shall be divided and applied in
accordance with the Urban Renewal Act and the Ordinance. It is recognized by all parties that
the total aggregate amount set forth above is a maximum amount only and that the actual
payment amounts will be determined after the Minimum Improvements are completed and the
valuations of said Improvements have been determined by the City Assessor.
(f) In the event that any certificate filed by the Owner and Developers under Section
5.6 or other information available to the City discloses the existence or prior occurrence of an
Event of Default that was not cured or cannot reasonably be cured under the provisions of
Section 10.2 (or an event that, with the passage of time or giving of notice, or both, would
become an Event of Default that cannot reasonably be cured under the provisions of Section
10.2), the City shall have no obligation thereafter to make any further payments to the Developer
in respect of the Economic Development Grants and may proceed to take one or more of the
actions described in Section 10.2 hereof.
20
Section 7.2. Source of Grant Funds Limited.
(a) The Economic Development Grants shall be payable from and secured solely and only
by amounts deposited and held in the Hieronymus Square TIF Account of the City. The City
hereby covenants and agrees to maintain the Ordinance in force during the term hereof and to
apply the incremental taxes collected in respect of the Minimum Improvements and allocated to
the Hieronymus Square TIF Account to pay the Economic Development Grants, as and to the
extent set forth in Section 7.1 hereof. The Economic Development Grants shall not be payable in
any manner by other tax increment revenues or by general taxation or from any other City funds.
(b) Notwithstanding the provisions of Section 7.1 hereof, the City shall have no
obligation to make an Economic Development Grant to the Owner or Developers if at any time
during the term hereof the City receives an opinion of its legal counsel or a controlling decision
of an Iowa court having jurisdiction over the subject matter hereof to the effect that the use of
Tax Increments resulting from the Minimum Improvements to fund an Economic Development
Grant, as contemplated under said Section 7.1, is not authorized or otherwise an appropriate
project activity permitted to be undertaken by the City under the Urban Renewal Act or other
applicable provisions of the Code, as then constituted. Upon receipt of such an opinion or
decision, the City shall promptly forward a copy of the same to the Owner and Developers. If
the circumstances or legal constraints giving rise to the opinion or decision continue for a period
during which two (2) Economic Development Grants would otherwise have been paid to the
Owner and Developers under the terms of Section 7.1, the City may terminate this Agreement,
without penalty or other liability to the Owner or Developers, by written notice to the Owner and
Developers. In said event, the Minimum Assessment Agreement shall also be terminated
effective as of the City's termination of this Agreement.
(c) The City makes no representation with respect to the amounts that may finally be paid
to the Owner and Developers as the Economic Development Grants, and under no circumstances
shall the City in any manner be liable to the Owner and Developers, so long as the City timely
applies the Tax Increments actually collected and held in the Hieronymus Square TIF Account
(regardless of the amounts thereof) to the payment of the Economic Development Grants to the
Developer, as and to the extent described in this Article.
Section 7.3. Use of Other Tax Increments. Subject to this Article VII, the City shall be
free to use any and all Tax Increments collected in respect of increases in valuation on the
Development Property unrelated to construction of the Minimum Improvements (i.e. increases in
assessed or actual value due to market factors), any other properties within the Project Area, or
any available Tax Increments resulting from the suspension or termination of the Economic
Development Grants under Section 7.1 hereof, for any purpose for which the Tax Increments
may lawfully be used pursuant to the provisions of the Urban Renewal Act, and the City shall
have no obligations to the Developer with respect to the use thereof.
21
Section 7.4. Conditions Precedent. Notwithstanding other provisions of this Article, the
City's obligations to make Economic Development Grant(s) to Owner and Developers under this
Agreement shall be subject to satisfaction of the following conditions precedent:
(a) Owner and Developers shall be in material compliance with all the terms and
provisions of this Agreement; and
(b) The City has held all necessary hearings and taken Council action in the exercise of
its sole discretion and legislative deliberative authority to adopt or amend the City -University
Project I Urban Renewal Plan, as deemed necessary by the City in its sole discretion; and
(c) Execution and recording of the Assessment Agreement by the City and Owner and
Developers pursuant to Section 5.8 of this Agreement; and
(d) Execution and recording of the Memorandum of Agreement for Private
Development by the City and Owner and Developers pursuant to Section 12.3 of this Agreement;
and
(e) Execution and recording of an Access Easement for use of Court Street
Transportation Center, if necessary pursuant to Section 2.1 above.
(1) Execution and recording of a Temporary Construction Easement, if necessary
pursuant to Section 2.1 above,
(g) Execution and recording of a Temporary Use of Right -of -Way agreement, if
necessary pursuant to Section 2.1 above.
(h) Receipt of opinions of counsel to Owner and Developers in the form attached
hereto as Exhibit E;
(i) Owner and Developers have closed on their financing for the construction of the
Minimum Improvements; and
(j) There has not been a substantial change for the worse in the financial resources and
ability of Owner and Developers, or a substantial decrease in the financing commitments secured
by Owner and Developers for construction of the Minimum Improvements, which change(s)
makes it likely, in the judgment of the City, that Owner and Developers will be unable to fulfill
its covenants and obligations under this Agreement.
(k) Developer's execution of the Wage Theft Affidavit attached hereto as Exhibit K.
Section 7.5. Limitations on Financial Undertakings of the Citv. Notwithstanding the
provisions of this Agreement, including Sections 7.1 and 7.2 hereof, the City shall have no
obligation to Owner and Developers under this Agreement to issue an Economic Development
Grant if the City is entitled (or, with the passage of time or giving of notice or both, would be
22
entitled) under Section 10.2 of this Agreement to exercise any of the remedies set forth therein as
a result of an Event of Default.
ARTICLE VIII. INDEMNIFICATION
Section 8.1. Release and Indemnification Covenants.
(a) Owner and Developers release the City and the governing body members, officers,
agents, servants and employees thereof (hereinafter, for purposes of this Article VIII, the
"indemnified parties") from, covenant and agree that the indemnified parties shall not be liable
for, and agree to indemnify, defend and hold harmless the indemnified parties against, any loss
or damage to property or any injury to or death of any person occurring at or about, or resulting
from any defect in, the Minimum Improvements or the Development Property. Notwithstanding
the foregoing, however, Owner and Developers shall have no obligation to indemnify, defend or
hold harmless the indemnified parties against any loss or damage to property or any injury to or
death of any person arising in whole or in part from actions taken or not taken by the City on its
property adjacent to the Development Property or any property other than the Development
Property.
(b) Except for any willful misrepresentation or any willful or wanton misconduct or
any unlawful act of the indemnified parties, Owner and Developers agree to protect and defend
the indemnified parties, now or forever, and further agrees to hold the indemnified parties
harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or
entity whatsoever arising or purportedly arising from: (i) any violation of any agreement or
condition of this Agreement by (except with respect to any suit, action, demand or other
proceeding brought by Owner and Developers against the City to enforce their rights under this
Agreement); (ii) the acquisition and condition of the Development Property and the acquisition,
construction, installation, owner and operation of the Minimum Improvements; or (iii) any
hazardous substance or environmental contamination located in or on the Development Property.
(c) The indemnified parties shall not be liable for any damage or injury to the persons
or property of Owner and Developers, or its officers, agents, servants or employees or any other
person who may be about the Minimum Improvements or the Development Property due to any
act of negligence of any person, other than any act of negligence on the part of any such
indemnified party or its officers, agents, servants or employees.
(d) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City, and not of any governing body member, officer, agent, servant or
employee of the City in the individual capacity thereof.
(e) The provisions of this Article VIII shall survive the termination of this Agreement.
23
(f) Nothing herein shall waive any of the defenses of governmental immunity available
to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now exists and as it may
be amended from time to time.
ARTICLE IX. RESERVED
ARTICLE X. DEFAULT AND REMEDIES
Section 10.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term 'Event of Default" shall mean, whenever it is used in this
Agreement, any one or more of the following events:
(a) Failure by Owner and Developers to cause the construction of the Minimum
Improvements to be commenced and completed pursuant to the terms, conditions and limitations
of this Agreement;
(b) Transfer of any interest by Developer in this Agreement or the Development
Property or the Minimum Improvements in violation of the provisions of this Agreement.
(c) Failure by Owner and Developers to substantially observe or perform any
covenant, condition, obligation or agreement on its part to be observed or performed under this
Agreement;
(d) Failure by Developer to pay, before delinquency, ad valorem taxes on the
Development Property and Minimum Improvements;
(e) The holder of any Mortgage on the Development Property, or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default
under the applicable Mortgage documents;
(f) Owner and Developers shall:
(i) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act of 1978, as amended, or under any similar federal or state law;
(ii) make an assignment for the benefit of its creditors;
(iii) admit in writing its inability to pay its debts generally as they become due;
(iv) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing
the adjudication of Owner and Developers as a bankrupt or its reorganization under any present
or future federal bankruptcy act or any similar federal or state law shall be filed in any court and
such petition or answer shall not be discharged or denied within ninety (90) days after the filing
24
thereof; or a receiver, trustee or liquidator of Owner and Developers or the Minimum
Improvements, or part thereof, shall be appointed in any proceedings brought against Owner and
Developers, and shall not be discharged within ninety (90) days after such appointment, or if
Owner and Developers shall consent to or acquiesce in such appointment;
(g) Any representation or warranty made by Owner and Developers in this Agreement,
or made by Owner and Developers in any written statement or certificate famished by Owner
and Developers pursuant to this Agreement, shall prove to have been incorrect, incomplete or
misleading in any material respect on or as of the date of the issuance or making thereof.
Section I0.2. Remedies on Default. Whenever any Event of Default referred to in Section
10.1 of this Agreement occurs and is continuing, the City, as specified below, may take any one
or more of the following actions after (except in the case of an Event of Default under
subsections (e), (f) or (h) of said Section 10.1) the giving of thirty (3 0) days' written notice by the
City to Owner and Developers, Developer and the holder of the Mortgage (but only to the extent
the City has been informed in writing of the existence of a Mortgage and been provided with the
address of the holder thereof) of the Event of Default, but only if the Event of Default has not
been cured within said thirty (30) days, or if the Event of Default cannot reasonably be cured
within thirty (30) days and Owner and Developers does not provide assurances reasonably
satisfactory to the City that the Event of Default will be cured as soon as reasonably possible:
(a) The City may suspend its performance under this Agreement until it receives
assurances from Owner and Developers, deemed adequate by the City, that Owner and
Developers will cure its default and continue its performance under this Agreement;
(b) The City may terminate this Agreement;
(c) The City may withhold the Certificate of Completion;
(d) The City shall be entitled to rescind the Economic Development Grants and recover
from Owner and Developers all funds expended by the City in connection with the issuance of
the Note and the funding of the Economic Development Grants, and the City may take any
action, including any legal action it deems necessary, to recover such amounts from Owner and
Developers; or
(e) The City may take any action, including legal, equitable or administrative action,
which may appear necessary or desirable to collect any amounts due under this Agreement or
enforce performance and observance of any obligation, agreement, or covenant under this
Agreement.
(f) The City may draw upon any guarantee or security provided to the City pursuant to
any of the terms of this Agreement according to its terms.
Section 10.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
City is intended to be exclusive of any other available remedy or remedies, but each and every
25
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or
shall be construed to be a waiver thereof, but any such right and power may be exercised from
time to time and as often as may be deemed expedient.
Section 10.4, No hnplied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder.
Section 10.5. Agreement to Pay Attorneys' Fees and Expenses.
(i) Developer shall pay the City's costs and expenses related to amending the urban
renewal area, legal fees related to the creation and ongoing administration of the Development
Agreement, and any financial advisor's fees. Such payment shall be made no later than 30 days
upon receiving written notice.
(ii) Whenever any Event of Default occurs and the City shall employ attorneys or incur
other expenses for the collection of payments due or to become due or for the enforcement or
performance or observance of any obligation or agreement on the part of Owner and Developers
herein contained, Owner and Developers agrees that it shall, on demand therefore, pay to the
City the reasonable fees of such attorneys and such other expenses as may be reasonably and
appropriately incurred by the City in connection therewith.
ARTICLE Xl. RESERVED
ARTICLE XII. MISCELLANEOUS
Section 12.1. Conflict of Interest. Owner and Developers represents and warrants that, to
their best knowledge and belief after due inquiry, no officer or employee of the City, or their
designees or agents, nor any consultant or member of the governing body of the City, and no
other public official of the City who exercises or has exercised any functions or responsibilities
with respect to the Project during his or her tenure, or who is in a position to participate in a
decision-making process or gain insider information with regard to the Project, has had or shall
have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for
work or services to be performed in connection with the Project, or in any activity, or benefit
therefrom, which is part of the Project at any time during or after such person's tenure.
Section 12.2. Notices and Demands. A notice, demand or other communication under this
Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt requested, or delivered personally,
and
26
(a) In the case of Owner and Developers, is addressed or delivered personally to
Owner and Developers at 711 S. Gilbert Street, Iowa City, Iowa 52240; 319-354-2233 Attn:
Kevin Digmann, with copy to Kirsten H. Frey, 920 S. Dubuque Street, Iowa City, Iowa 52240,
(b) In the case of the City, addressed to or delivered personally to City Manager, City
Hall, 410 E. Washington Street, Iowa City, Iowa 52240,
or to such other designated individual or officer or to such other address as any party shall have
furnished to the other in writing in accordance herewith.
Section 123. Memorandum of Agreement. The parties agree to execute and record a
Memorandum of Agreement for Private Development, in substantially the form attached as
Exhibit D, to serve as notice to the public of the existence and provisions of this Agreement, and
the rights and interests held by the City by virtue hereof. The Minimum Assessment Agreement
shall be recorded at Owner and Developers' expense.
Section 12.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 12.5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 12.6. Governing Law. This Agreement shall be governed by the laws of the State
of Iowa.
Section 12.7. Severability. If any provision of this Agreement or the application of such
Provision to any person or circumstance shall be held invalid, then the remainder of this
Agreement or the application of such provision to persons or circumstances, other than those to
which it is held invalid, shall not be affected thereby and the parties shall thereupon amend this
Agreement to legally and most closely embody the spirit and intent of the invalid provisions.
Section 12.8. Amendment: Waiver. This Agreement may not be amended, waived or
modified in any respect, unless the same shall be in writing and signed by all parties. No waiver
by a party of any default by another party shall constitute a waiver of any other breach or default
by another party, whether of the same or any other covenant or condition. No waiver, benefit,
privilege or service voluntarily given or performed by a party shall give another party any
contractual right by custom, estoppel or otherwise. The Mayor is authorized to execute an
amendment reasonably necessary in accordance with Section 6.1 above.
Section 12.9. No Third -Party Beneficiaries. No rights or privileges of any party hereto
shall inure to the benefit of any landowner, contractor, subcontractor, material supplier, or any
other person or entity, and no such contractor, landowner, subcontractor, material supplier, or
any other person or entity shall be deemed to be a third -party beneficiary of any of the provisions
contained in this Agreement.
27
and on their behalf by their authorized representative(s), all on or as of the day first above
written.
ATTEST:
By:
City Clerk
CITY OF IOOWfA CITYY, IOWA
By: 7C� • `'
Mayor
INS
BY: ^�ti
BY:
, L.L.P.,
DEVELOPERS, L.L.C.,
Manager
Benjamin Kinseth, Manager
IOWA CITY ES HOTEL. L.L.C.
iK
BY: M c(
Michael bodge, Manager
C
Benjamin Kinseth, Manager
HS314, L.L.C.
BY:
Kevhr' igman/n,rl anager
BY:
Michael Hp ge, Manager
Benjamin Kinseth, Manager
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
On this I day of e�}p�. , L , r , 2017 before me a Notary Public in and for
said Count personally a eare ya r c s d �a fie
County, p y pp du,:.a^uan s to me personally known, who
being duly sworn, did say that they are the Mayor and City Cl k, respectively, of the City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by them voluntarily executed.
a RW
Notary Public in d for the State o Iowa-
;owr�
28Aa)
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of . bef, 2017, by
Thr` k�ier°h!m)xas as o a &AM -r ofHIERONY IPARTNERSHIP,L.L.P.,
y ��
WEW 13
y Cwrnk" Notary Public to and for the State f Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
Ah
This instrument was acknowledged before me on this I� day of , 2017, by Kevin
Digmann, as Manager of HIERONYMUS SQUA);iE DEVELOPERS, L.L.C.
01 . KIRMN H. FOY
Canmiyfron kumb r 180259
= My C,gmMsi6 0� irM
I 1
STATE OF IOWA
COUNTY OF JOHNSON
Notary Public in and for the
)SS
This instrument was acknowledged before me
Michael Hodge, as Manager of HIERONYMUS
�.* KNOM K FKY
O C.ommisgimNu'Ma1802S9 Not.
my My CamNuim
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
of Iowa
on this 1q day of�2017, by
;QUARE DEVELOPERS, L.L.C.
Public in and for the Stake of Iowa
This instrument was acknowledged before me on this Iq day of tr , 2017, by John
Hieronymus, as Manager of HIERONYMUS SQUARE DEVELOPERS, L.L.C.
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STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this �� day of 30JW4'2017, by
Benjamin Kinseth, as Manager of HIERONYMUS SQUAPLE DEVELOPER , L.L.C.
aAmelia handk"CommiwonNumb�r,7911MIzo"i• vFra,v,ft EoM Notary Public in and or the State of Iowa
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STATE OF IOWA )
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Digmann, as Manager of of IOWA CITY ES H TEL, L.L.C.
.tea' s�EKRSTEN H. FREY N tary Public in and for the S to of Iowa
imission Number 180259y Com fission
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Michael Hodge, as Manager of of IOWA CITY S HOTEL, L.L.C.
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FREY
100259
M Notary Public in and for the tate of Iowa
STATE OF IOWA )
)SS
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STATE OF IOWA )
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Benjamin Kinseth, as Manager of of IOWA CI YES HOTEL, L.L.C. '
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STATE OF IOWA )
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STATE OF IOWA )
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Michael Hodge, as Manager of HS314, L.L.C.
4�a s KIRa9es
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MY No ry Public in and for the S to of Iowa
STATE OF IOWA )
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STATE OF IOWA )
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Benjamin Kinseth, as Manager of HS314, L.L.C.
Amelia Rand.
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EXHIBIT A
DEVELOPMENT PROPERTY
The Development Property consists of the following legally described property:
Lots 8, 7 and the N 44 feet of Lot 6, all in Block 102 in Iowa City, Johnson County,
Iowa, according to the recorded plat thereof. Also described as follows:
1. Commencing at the NE corner of Lot 8, Block 102, thence W 30 feet, thence S
68 feet, thence E 30 feet, thence N 68 feet to the place of beginning, all in Iowa City,
Johnson County, Iowa, according to the plat thereof recorded in Book 1, Page 116,
Plat Records of Johnson County, Iowa.
2. Commencing at a point 30 feet W of the NE comer of Lot 8 in Block 102 in
Iowa City, Iowa, according to the plat thereof recorded in Book 1, Page 116, Plat
Records of Johnson County, Iowa, thence W 45 feet, thence S 68 feet, thence E 45
feet, thence N 68 feet to the place of beginning, excepting the W 2-2/12ths feet of the
N 27 feet thereof.
3. Commencing at the NW comer of Lot 8 in Block 102 in Iowa City, Iowa,
according to the plat thereof recorded in Plat Book 1, Page 116, Plat Records of
Johnson County, Iowa, running thence E 77 feet 2 inches, thence S 27 feet, thence W
2 feet 2 inches, thence S 41 feet, thence E 75 feet to the alley, thence S along the alley
12 feet to the SE comer of said Lot 8, thence W 150 feet, thence N 80 feet to the
point of beginning.
4. The N 44 feet of Lot 6 in Block 102 in Iowa City, Iowa, according to the
recorded plat thereof.
5. Lot 7, Block 102 of the alteration of the original plat of Iowa City, Iowa,
according to the plat thereof recorded in Book 8, Page 404 Plat Records of Johnson
County, Iowa.
6. Beginning at the Southeast comer of the North 182 feet of the alley in Block
102, thence South 102 feet, thence West 20 feet, thence North 102 feet, thence East
20 feet to the point of beginning, containing approximately .05 acres (2,040 square
feet) and subject to the easements and restrictions of record.
A portion of Lot 6, Block 102, Original Town of Iowa City, Iowa located in the southeast
one-quarter of the Southwest one-quarter of Section 10, Township 79 North, Range 6 West
31
of the 5a' Principal Meridian, City of Iowa City, Johnson County, Iowa, more particularly
described as follows:
Auditor's Parcel 2007081
Commencing at the Northwest corner of Lot 8, Block 102, Original Town of Iowa City,
Iowa, according to the recorded plat thereof; Thence S00146'44"E, along the West line of
Lots 8, 7 and 6, a distance of 165.00 feet to the point of beginning; Thence N89°13'16"E,
170.15 feet to a point on the East line of a vacated 20 foot wide alley in said Block 102;
Thence S00145'34"E, along said East line, 16.92 feet; Thence S89°12121"W, 20.00 feet to
a point on the East line of said Lot 6; Thence S00°45'34"E, along said East line, 3.07 feet;
Thence S89°13'16"W, 150.15 feet to a point on the West line of said Lot 6, Thence
N00°46'44"W, along said West line of Lot 6, a distance of 20.00 feet to said point of
beginning, containing 0.08 acres (3,341square feet) and is subject to easements and
restrictions of record.
32
M.W99 3r�i �.
MINIMUM IMPROVEMENTS
Developer shall complete the following minimum improvements and uses on the Development
Property in accordance with the Development Agreement to which this Exhibit D is attached and
as shown on the Concept Plan, attached to the Development Agreement as Exhibit H.
1. "Element" Hotel
Developer shall complete a 7 -story, approximate 91 -unit extended stay hotel comprised of a
minimum of 62,000 square feet. The Developer shall spend a minimum of $20,479,836 on total
development costs, which shall include building construction and design, property acquisition,
furniture, fixtures and equipment, opening costs (working capital, training, marketing),
construction interest and loan fees, developer overhead, parking, and professional services and
closing costs with a taxable value estimated at $8,460,000.
The hotel entry shall be on Clinton Street through an approximately 2,800 square foot vestibule,
described in more detail below, to be shared with the 7 -story mixed use building described
below. The first floor shall be comprised of an approximate 9,750 square foot lobby, with a
reception desk, fitness room, lounge, breakfast kitchen, offices, restrooms, a guest meeting room,
laundry, pantry, and a staff meeting room. The second floor shall include an approximate 5,000
square foot patio (with a lower and upper terrace) and an indoor pool to be shared with the 7 -
story mixed use building described below, as well as approximately 15 guest units. The third
through seventh floors shall each be approximately 8,575 square feet with 15 guest units. Each
hotel unit shall each have a full compact kitchen, including a two -burner stove, refrigerator,
dishwasher and microwave. The City Manager shall have the authority to approve the final
number of hotel units in accordance with Section 2.1 of the Agreement.
A stairway and the elevator at the east end of the first floor vestibule will provide access to the
second floor and it is anticipated that Developer will construct and maintain a second floor
skywalk to link the vestibule to the City -owned Court Street Transportation Center (CSTC).
The Developer shall enter into a franchise agreement with the Marriott International, Inc., or a
subsidiary, for an "Element" brand hotel franchise or comparable hotel franchise approved by the
City, which approval shall not be unreasonably withheld.
In construction and operation of the Element, the Developer shall obtain the "Gold Green Seal
Certification" upon construction of the building, and shall operate the hotel in accordance with
said Gold Green Seal program, a third -party non-profit environmental certification program for
hotels and lodging properties.
33
2. Mixed -Use
Developer shall complete a 7 -story mixed use building comprised of a parking garage,
commercial space, Class A office space, and five floors of residential units. The Developer shall
spend at least $20,273,940 on total development costs for this component of the Minimum
Improvements, which is estimated to create a taxable value of $8,249,195.
The first floor will be built for retail use to ensure the street front is active and engaging. The
retail level will be comprised of at least 10,100 square feet and maybe divided into appropriate -
sized sections for tenant use. The store fronts shall have large, highly transparent windows to
encourage and enhance activity and vibrancy at the street level.
Level two consists of a minimum of 6,100 square feet of Class A office space. As defined by the
Building Owners And Managers Association International (BOMA), class A office space is
space that is of a quality that is attractive for premier office users with rents above average for
the area. Class A office space has high quality standard finishes, state of the art systems,
exceptional accessibility and a definite market presence.
A minimum of 50,000 square feet of residential space on levels three through seven will total
approximately 45 residential dwelling units. It is anticipated that the 45 dwelling units will
consist of a mix of 5 studios, 10 one -bedroom units and 30 two-bedroom units, or as otherwise
approved by the City Manager during the course of design review and construction plan approval
pursuant to Section 2.1 of the Agreement. As provided in section 2.1 above, at least two of the
units one I -bedroom and one 2 -bedroom) will be sold to or leased to income qualified
households.
All parking required pursuant to the Iowa City Code of Ordinances will be satisfied in an
underground parking garage spanning the entire footprint of both the mixed use and hotel
buildings described above. It is anticipated that access to the underground parking will be
through the Court Street Transportation Center in accordance with an access easement
agreement.
The Developer shall install rooftop solar modules to generate an estimated 38,732 kWh annually.
The design of these Minimum Improvements must be approved by the Form -based Code
Committee for conformance with the Riverfront Crossings development standards, as set forth in
Iowa City Code of Ordinances 14-2G.
34
EXHIBIT C
CERTIFICATE OF COMPLETION
WHEREAS, the City of Iowa City, Iowa (the "City") and Hieronymi Partnership, LL.P,
Hieronymus Square Developers, LL.C, Iowa City ES Hotel, LL.C, and HS314, LL.C.
("Developers"), did on or about the l9th day of September, 2017, make, execute and deliver,
each to the other, an Agreement for Private Development (the "Agreement"), wherein and
whereby the Developers agreed, in accordance with the terns of the Agreement, to develop and
maintain certain real property located within the City and as more particularly described as
follows:
WHEREAS, the Agreement incorporated and contained certain covenants and restrictions
with respect to the development of the Development Property, and obligated the Developers to
construct certain Minimum Improvements (as defined therein) in accordance with the
Agreement; and
WHEREAS, Developers have to the present date performed said covenants and conditions
insofar as they relate to the construction of said Minimum hnprovements in a manner deemed by
the City to be in conformance with the approved building plans to permit the execution and
recording of this certification.
NOW, THEREFORE, pursuant to Section 25 of the Agreement, this is to certify that all
covenants and conditions of the Agreement with respect io the obligations of the Developer, and
its successors and assigns, to construct the Minimum Improvements on the Development
Property have been completed and performed by the Developer and are hereby released
absolutely and forever terminated insofar as they apply to the land described herein, except time
covenants set forth in of the Agreement. The County Recorder of Johnson County, Iowa, is
hereby authorized to accept for recording and to record the filing of this instrument, to be a
conclusive determination of the satisfactory termination of the covenants and conditions of said
Agreement with respect to the construction of the Minimum improvements on the Development
Property.
All other covenants and provisions of the Agreement shall othenvise remain in full force
and effect until termination as provided therein.
UM
(SEAL) CITYgg IOWA CITY, IOWA
By:
ayor
35
CITY OF IOWA CITY
STATE OF IOWA )
)sa:
COUNTY OF JOHNSON )
On thisOjt�:j_day of April, 2020, befare me a Notary Public in and for said County,
personally appeared and to me personally known, who being duly sworn, did say that they are
the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal
Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed
to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument
was signed and sealed on behalf of said Municipal Corporation by authority and resolution of
its City Council and said Mayor and City Clerk acknowledged said instrument to be the frce act
and deed of said Municipal Corporation by it voluntarily executed,
*moi =CommisslonNumber
NEYNot P 806232 ary ublic in and for State of Iowa
xpires
36
EXHIBIT D
MEMORANDUM OF AGREEMENT FOR PRIVATE DEVELOPMENT
WHEREAS, the City of Iowa City, Iowa (the "City") and
(the
evelopers ), did on or about the_ day of 2017 make, execute and
deliver an Agreement for Private Development (the "Agreement'), wherein and whereby the
Developers agreed, in accordance with the terms of the Agreement and the City -University
Urban Renewal Plan (the "Plan"), to develop
within the City -University Urban Renewal
Property"); and
certain real property located within the City and
Area and as more particularly described as
Original Town, Iowa City, Iowa ("Development
WHEREAS, the term of this Agreement shall commence on the and
terminate ; and -
WHEREAS, the City and Developers desire to record a Memorandum of the Agreement
referring to the Development Property and their respective interests therein.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. That the recording of this Memorandum of Agreement for Private Development
shall serve as notice to the public that the Agreement contains provisions restricting development
and use of the Development Property and the improvements located and operated on such
Development Property, and farther subjects the Development Property to a Minimum
Assessment Agreement entered into under the authority of Iowa Code Chapter 403, in which the
City and Developers (and any successors or assigns) agree that, as of January 1, 2020, a full
assessment shall be made fixing the minimum actual value of the Development Property and all
improvements located thereof for calculation of real property taxes at not less than $16,709,195
after taking into consideration any factors such as "roll -backs" which would reduce the taxable
value of the property; and that certain condominium units located within development be
dedicated to particular uses.
2. That the Agreement imposes certain affordable housing requirements as set forth
therein, for a period of 20 years beginning on the date a certificate of occupancy is issued for the
property legally -described as:
3. That all of the provisions of the Agreement and any subsequent amendments thereto, if
any, even though not set forth herein, are by the filing of this Memorandum of Agreement for
Private Development made a part hereof by reference, and that anyone making any claim against
any of said Property in any marmer whatsoever shall be fully advised as to all of the terms and
conditions of the Agreement, and any amendments thereto, as if the same were fully set forth
herein.
37
4. That a copy of the Agreement and any subsequent amendments thereto if any,
shall be maintained on file for public inspection during ordinary business hours in the office of
the City Clerk, City Hall, Iowa City, Iowa.
IN WITNESS WHEREOF, the City and the Redeveloper have executed this
Memorandum of Agreement for Private Redevelopment as of the O7 day of 2017.
ATTEST: l�
By:
City Clerk
CITY OF IOWA CITY,
By:�/%`�
Mayor
HIER NY, I P TN SHIP, L.L.P.,
BY: II _•��
HIERONYMUSS DEVELOPERS, L.L.C.,
BY: m
Kevin Dig , anager
BY:
*Michaelge, Manager
BY•
J hn Hieronymus, Manage
BY:
Benjamin Kinseth, Klan
ager
IOWA CITY ES L.L.C.
l
BY:
in Dig Manager
BY:
Micl!Wef Hoirge, Manager
Benjamin Kinseth, Manager
HS314, L.L.C.
BY:
h igmap anager
BY:
Michael Hq ge, Manager
MR
BY:y-0-- V
Benjamin Kinseth, Manager
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
On this tl�— day of , 2017 before me a Notary Public in and for
said County, personally appearedl�s�id o me personally known, who
39
being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by them voluntarily executed.
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This ms�pmentas acknowledged before me on this Iq day o o- w 2017, by
Jahn {Cieranq�nuS as Oma .ft i to of HIERONYMI PARTNERSHIP, L.L.P.,
D CWLF L
N=iia Notary Public in and for he State of Iowa
MY c4mmmsjon
Apr9 7, 2020
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this 10) day o ar 2017, by Kevin
Digma as Manager of HIERONYMUS SQUAF7E DEVELOPERS, L.L.C.
Public in
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
the hate of Iowa
This instrument was acknowledged before me on this da Y o€c�1 "V 2017, by
Michael Hodge, as Manager of HIERONYMUS SQUARE DEVELOPERS, L.L.C.
KIRSM H. FREY s�
Commission Number 180259 N azy Public in and for th State of Iowa
Commission _
MJuI 12 2019
40
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this da o 103 Pd" 2017, by John
g y
Hieronymus, as Manager of HIERONYMUS SQUARE D VELOPER
DLCOLF
_49N Cpr�n W1w Numbr 010213 '
„ E,�rs• Notary Public in and for the Stat of Iowa
�pri T. 2029
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this 17's day oL�V 2017, by
Benjamin Kinseth as ONYMUS SQ DEVELOPERS, L.L.C.
ti�aars gmalia Rand '
C&Trk +NOmber791168
• s my Caemfuia� F.
J 22 2018 Notary Public in for the State of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this �fl day of�4xyli� , 2017, by Kevin
Digmann, as Manager of of IOWA CITY ES HOT
aPa"'r , KIRM H. FM
NumDer160259
My NotAry Public in and for the Stat A
of Iowa
A
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this P� day of�m� 2017, by
Michael Hodge, as Manager of of IqWA-GqY I S HOTEL, L.L.C.
C.KOmMIRny tF
Public in and for
4U(a)
State of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this A— day of 2017, by John
Hieronymus, as Manager of of IOWA CITY ES HOTEL, L.L.C.
D L CHELF
i•e CoNs
F mrsion Number 010213
My Carurdsston Expires
AprY 7, 2020
STATE OF IOWA
COUNTY OF JOHNSON
L" �
Notary Public in and for the State o Iowa
)SS
This instrument was acknowledged before me on this 19' day of ,�"✓2017, by
Benjamin Kinseth, as Manager of of IOWA C Y ES HOTEL, L.L.C.
RpIS11"[pl^mapa. Rand,
uyummiNipnEowft Notary Public n and for the State of Iowa
JWY 22 3010
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this FV'r\ day of ,>l,n� 2017, by Kevin
Digmann, as Manager of HS314, L.L.C.
40(b)
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this
Michael Hodge, as Manager of HS314, L.L.C.
s I KIRSTEN H.
commission kumh
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
day or;A� 017, by
in and for t$e State of Iowa
This instrument was acknowledged before me on this day o 3, 2017, by John
Hieronymus, as Manager of HS314, L.L.C.
D L CHELF
, sbn ;u 010W
z Ki r K7
STATE OF IOWA
COUNTY OF JOHNSON
Notary Public in and for the State 4 Iowa
)SS
This instrument was acknowledged before me on thisi i _ day of t!2017, by
Benjamin Kinseth, as Manager of HS314, L.L.C.
Amelia Rand.j'0-a;!j Commission NumW 72114 J (�
Mr conxnwrW Fapw.
My 22 2018 Notary Public in and for the State of Iowa
40(c)
KENNEDY, CRUISE, FREY & GELNER, L.L.P.
ATTORNEYS AT LAW
920 S. DUBUOUE STREET - P.O. BOX 2000
MICHAEL W. KENNEDY IOWA CITY, IOWA 52244 MARCUS M. MILLS
KIRSTEN H. FREY TELEPHONE (319) 351.8181 ZACHARY R. DAVELAAR
KANDIE K. GELNER FAX (319) 351-0605 KATHERINE E. OTTO
EXHIBIT E
OPINION OF COUNSEL
City of Iowa City
410 E. Washington Street
Iowa City, Iowa 52240
RE: Agreement for Private Development by and among the City of Iowa City, Iowa,
Hieronymi Partnership, L.L.P., Hieronymus Square Developers, L.L.C., Iowa City ES Hotel,
L.L.C. and HS314, L.L.C.
Dear City Representatives:
I have acted as counsel for Hieronymi Partnership, L.L.P., Hieronymus Square
Developers, L.L.C., Iowa City ES Hotel, L.L.C. and HS314, L.L.C. (collectively the
"Developers"), in connection with the execution and delivery of a certain Agreement for Private
Development (the "Development Agreement") between the Developers and the City of Iowa
City, Iowa (the "City") dated as of 2017.
I have examined the original certified copy, or copies otherwise identified to my
satisfaction as being true copies, of the following:
(a) The organization and operating agreements of the Developers;
(b) Resolutions of the Developers at which action was taken with respect to
the transactions covered by this opinion;
(c) The Development Agreement;
and such other documents and records as I have deemed relevant and necessary as a basis for the
opinions set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries as I have
deemed appropriate, I am of the opinion that:
1. The Developers were duly organized and validly exist as a limited liability
partnership and limited liability companies under the laws of the State of Iowa and are qualified
41
to do business in the State of Iowa. The Developers have full power and authority to execute,
deliver and perform in full the Development Agreement; and the Development Agreement was
duly and validly authorized, executed and delivered by the Developers and, assuming due
authorization, execution and delivery by the City, is in full force and effect and is a valid and
legally binding instrument of the Developers enforceable in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or
affecting creditors' rights generally.
2. The execution, delivery and performance by the Developers of the Development
Agreement and the carrying out of the terms thereof, will not result in violation of any provision
of, or in default under, the articles of organization and operating agreement of the Developers or
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute,
rule, regulation or restriction to which the Developers are a party or by which it or its property is
bound or subject.
3. There are no actions, suits or proceedings pending or threatened against or
affecting the Developers in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could materially
adversely affect the business (present or prospective), financial position or results of operations
of the Developers or which in any manner raises any questions affecting the validity of the
Agreement or the Developers' ability to perform their obligations thereunder.
42
EXHIBIT F
MINIMUM ASSESSMENT AGREEMENT
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this / g'�Z7 day of
(,Sza1-eMher- , 2017, by and among the CITY OF IOWA CITY, IOWA, ("City");
HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability partnership; HIERONYMUS
SQUARE DEVELOPERS, L.L.C., an Iowa limited liability company, IOWA CITY ES HOTEL,
L.L.C., an Iowa limited liability company, and HS314, L.L.C., an Iowa limited liability company
(hereinafter collectively "Developers"), and the CITY ASSESSOR of the City of Iowa City,
Iowa ("Assessor").
WITNESSETH:
WHEREAS, it is contemplated that the Developers will undertake the development of an
area ("Project") within the City and within the "City -University Urban Renewal Area," as
amended; and
WHEREAS, the City is making a significant grant of funds to the developer which will
allow the Developer to construct the Project; and
WHEREAS, the City will be reimbursed for such grant from the property tax revenues
generated from the Project; and
WHEREAS, pursuant to Iowa Code section 403.6 (2017), as amended, the City and the
Developer desire to establish a minimum actual value for the land legally described in Exhibit A
to the Agreement for Private Development; and
WHEREAS, the City and the Assessor have reviewed the preliminary plans and
specifications for the Minimum Improvements to be erected as a part of the development;
NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in
consideration of the promises, covenants and agreements made by each other, do hereby agree as
follows:
1. As of January 1, 2020, a full assessment shall be made fixing the minimum actual
taxable value for assessment purposes for the land and Minimum Improvements to be
constructed thereon by the Developers at not less than $16,709,195 after taking into
consideration any factors such as "roll backs" which would reduce the taxable value of the
property ("Assessor's Minimum Actual Value"). The parties hereto acknowledge and agree that
construction of the Minimum Improvements will be substantially completed on or before
December 31, 2019.
2. The Developer contemplates that a portion of the Project will be residential
condominium units which will be subject to the property tax "roll -back" referred to previously.
43
Developers agree that at the time of the execution of the declaration required by Chapter 499B
Horizontal Property (Condominiums) of the Code of Iowa (2017) an attachment to the
declaration will be executed by the Redeveloper, the City and the City Assessor allocating a
portion of the Minimum Actual Value to each unit,
3. Developers agree that the difference between the Minimum Actual Values (as
adjusted pursuant to paragraph 2 hereof) and the amount allocated to the residential
condominium units (as set forth in paragraph 2 hereof) will be allocated to the remainder of the
Project.
4. The Minimum Actual Values (as adjusted pursuant to paragraph 2 hereof) herein
established shall be of no further force and effect and this Minimum Assessment Agreement
shall terminate on December 31, 2034.
Nothing herein shall be deemed to waive the Developers' rights under Iowa Code section
403.6(19) (2017), as amended, to contest that portion of any actual value assignment made by the
Assessor in excess of the Minimum Actual Values (as adjusted pursuant to paragraph 2 hereof)
established herein. In no event, however, except as set forth paragraph 2 hereof, shall the
Developers seek to reduce the actual value assigned below the Minimum Actual Value (as
adjusted pursuant to paragraph 2 hereof) established herein during the term of this Agreement.
5. This Minimum Assessment Agreement shall be promptly recorded by the
Developer with the Recorder of Johnson County, Iowa, at Developer's expense.
6. Developer has provided a title opinion to the City listing all lienholders of record
as of the date of this Assessment Agreement and all such lienholders have signed consents to this
Assessment Agreement, which consents are attached hereto and made a part hereof.
7. Neither the preambles nor provisions of this Minimum Assessment Agreement are
intended to, nor shall be construed as, modifying the terms of the Agreement for Private
Development between the City and Developers.
8. This Minimum Assessment Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the parties.
ATTEST:
By:
ty Clerk
CITY OF IOWA CITY IOWA
By:
Mayor
44
, L.L.P.,
ARE DEVELOPERS, L.L.C.,
`s
BY:
Mich " Hod anager
0
Benjamin Kinseth, Manager
IOWA CITY ES HOTEL, L.L.C.
BY:
igmann ager
BY: J °1
6���
Michael Hod e, Manager
C
45
Kinseth, Manager
HS314, L.L.C.
BY:
evin Digm anager
BY:
Michael Ho e, Manager
BY:
IL
ohn Hieronymus, Mana
BY: �/�
Benjamin Kinseth, Manager
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
On this -LQ_— day of 2017 before me a Notary Public in and for
said County, personally appeare p es td � '9, to me personally known, who
being duly sworn, did say that they are e Mayor and City C k, respectively, of the City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by them voluntarily executed.
Cam 77M8!
kyConrnbNa u/YM ��QA, � Y'� °`ti ¢-t
r 1`Totary Publi n and for the Stat of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged bef re me o this —9—day of 2017, by
1D Jill sero h�lyw as l r of HIERONY I PARTNERSHIP, L.L.P.,
Notary Public in and for the S to of Iowa
o D L CiIELF
o` @ CpRgry�pn ku�01�73
? �P. NyCgnm
46
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this I / day of!2017, by Kevin
Digmann, as Manager of HIERONYMUS SQUARE DEVELOPERS, L L.0
KIRUM N. FRET "in
"�NotState of Iowa
.wan cul 25"111
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this
g toIty) day of�_ SLmW2017, by
Michael Hodge, as Manager of HIERONYMUS SQUARE DEVELOPERS, L.L.C.
'"` s KIRSTEN N. FREY
Commission NCominisi umbe 180259 N ary Public in and for the tate of Iowa
MA Iil
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this l q day of "Qt' 2017, by John
Hieronymus, as Manager of HIERONYMUS SQUARE DEVELp�OP'E}�RSS,,,L.nL.C�.
01. CW.0 010219
cam+••�O"WOW
� Notary Public in and for the State of owa
_ aPi
aN1T.2020
S Pt�TE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this
Benjamin Kinseth, as Manager of HIERONYWS SQUi,
yyu�
��a' l,v
s Amelia
r Rand
z° �mdlknNumber791168
4Notary Public in
• • MY Cammittion E•prq
Jul 22 2018
46(a)
day of• f�G{. 2017, by
VELOPE S L.LC.
for the State of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this lcl'll day ofaj�MiN6,V 2017, by Kevin
Digmann, as Manager of of IOWA CITY ES HOTEL, L.L.C.
KIRSTEN K FREY O
Comnr.�n Number i80xA
Notary Public i�and the tate of Iowa
L 201 n
Nly uCanly lm115"
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day o?2 P p1✓2017, by
Michael Hodge, as Manager of of IOWA CITY Ep HOTEL, L.L.C.
KIR STEN K FREY
Cwms&bnMY I C 190238
4Xtar&yP—ublic in and for th State of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this JA— day of 47er, 2017, by John
Hieronymus, as Manager of of IOWA CITY ES HOTEL, L.L.C.
Us_ N��3
Ot02
20FxV
20
STATE OF IOWA
COUNTY OF JOHNSON
B' - n L�
Notary Public in and for the State o Iowa
)SS
This instrument was acknowledged before me on this t l ' day of
Benjamin Kinseth, as Manager of of IOWA CITY ES HO1FL, Z,]qC.
,;e1`�s Amelia Rand
o Comm asitm Number 791188
Ei vues Notary Public in and for the State of Iowa
Jul 22. 2018
46(b)
2017, by
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of5 f Wkfi' , by Kevin
Digmann, as Manager of HS314, L.L.C.
ZPs KIRSTEHH. CDf L�
• • MY Notary Public in and for he State of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
r n
This instrument was acknowledged before me on this (�1 day of � mt�1017, by
Michael Hodge, as Manager of HS314, L.L.C.
Public in and for the Itate of Iowa
STA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this _J__� _ day of 2017, by John
Hieronymus, as Manager of HS314, L.L.C.
WjW
Notary Public in and for the State 6f Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this��ay of F 2017, by
Benjamin Kinseth, as Manager of HS314, L.L.C.
(All
ArhNIM hand
;
CERTIFICATION OF ASSESSOR
The undersigned, having reviewed the plans and specifications for the Minimum
Improvements to be constructed and the market value assigned to the land upon which the
Minimum improvements are to be constructed for the development, and being of the opinion that
the minimum market value contained in the foregoing Minimum Assessment Agreement appears
reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the property subject to the development, upon completion of Minimum
Improvements to be made on it and in accordance with the Minimum Assessment Agreement,
certifies that the actual value assigned to such land, building and equipment upon completion of
the redevelopment shall not be less than $ after taking into consideration any
factors such as "roll -backs" which would reduce the taxable value of the property. Of this
amount, Dollars ($ ) is
determined to be the value of the land and Dollars
($ ) the value of the buildings thereon until termination of this Minimum
Assessment Agreement pursuant to the terns hereof.
Assessor for Iowa City, Iowa
Date
STATE OF IOWA )
)ss:
COUNTY OF JOHNSON )
Subscribed and sworn to before me by
Iowa City, Iowa.
Assessor for
Notary Public in and for Johnson County, Iowa
Date
47
EXHIBIT G
TEMPORARY CONSTRUCTION EASEMENT AGREEMENT
FOR USE OF (STAGING PROPERTY) AND A PORTION OF THE COURT STREET
TRANSPORTATION CENTER
This Temporary Construction Easement Agreement is made on this day of
2017, by and among the CITY OF IOWA CITY, IOWA, ("City");
HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability partnership; HIERONYMUS
SQUARE DEVELOPERS, L,L.C., an Iowa limited liability company, IOWA CITY ES HOTEL,
L.L.C., an Iowa limited liability company, and HS314, L.L.C_, an Iowa limited liability company
(hereinafter collectively "Developers")
WHEREAS, Hiernoymi Partnership, L.L.P is the fee owner of certain real estate addressed as
and and legally described ("Development Property");
WHEREAS, the City of Iowa City is the fee owner of certain real estate legally described as
("Staging Property'); and
WHEREAS, Developers and the City have entered into an Agreement for the Private
Development of said Development Property, with a memorandum of said agreement having been
recorded with the Johnson County Recorder in Book _, Page _ on , 20_;
WHEREAS, Developers have requested the City permit the temporary private use of the certain
portions of the Staging Property and the Court Street Transportation Center parking facility, all as
shown on the Exhibit A, attached hereto and incorporated herein by this reference; and
WHEREAS, the City of Iowa City, Iowa, is responsible for the care, supervision, and control of
public property; and
WHEREAS, the Public Works Director has reviewed the requested private use, and finds that the
impacts on municipal functions will be manageable, and also finds that such temporary private
uses is in the public interest; and
WHEREAS, the Director of Transportation Services has reviewed the requested temporary private
use of the Staging Area and the Court Street Transportation Center parking facility, and finds that
with certain conditions to mitigate the loss of parking spaces in the Court Street Transportation
Center, such request is reasonable.
NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE PROMISES HEREIN, THE
PARTIES HERETO AGREE AS FOLLOWS:
48
1. In consideration of the City's permission herein to temporarily close a portion of a City
property during construction of the project detailed in the above-described Development
Agreement, Developers agree to:
a. secure the temporary easement area shown in Exhibit A against vehicular or pedestrian
traffic by providing adequate pedestrian passage, adequate traffic control, by providing
adequate signage, and by securing all open excavations from pedestrians, thereby ensuring
public safety.
2. In consideration of Developers' promises herein, the City agrees to allow Developers to
temporarily fence and close that area shown on Exhibit A pursuant to the limitations set forth
in this easement agreement and the Agreement for Development.
3. Developers agree to provide, keep in place, and maintain in good working condition
certain fencing and signage necessary to do the following:
a. route pedestrians through or around the closed area as approved by the City during
construction;
b. provide adequate advance warning of such closure; and
c. provide for the orderly and predictable movement of traffic.
All signage shall be in accordance with the Federal Highway Administration Manual on
Uniform Traffic Control Devices.
4. Developers shall be responsible for the removal, storage, and replacement of items located
within the easement which could be damaged during the construction. Items include, but are
not limited to, signage, parking gates, benches, bricks, planters, downspouts, lighting and
electrical services.
5. Developers agree to indemnify, defend and hold the City harmless against any and all
claims for bodily injury, death or property damage arising out of their actions and use of the
public property under this Agreement, and those of their contractors, subcontractors, agents,
employees and assigns specifically including any and all claims and/or liabilities which may
be alleged against the City as a result of its decision to allow Developers to temporarily close
a portion of public property described herein. Developers further agree to carry Class II
liability insurance in the minimum amounts of $500,000 each occurrence, $1 million
aggregate bodily injury, and $250,000 aggregate property damage with contractual liability
coverage included. Developers shall furnish a certificate of insurance evidencing said valid
insurance coverage to City, which certificate must be satisfactory to the City. Developers
shall submit a certificate of insurance to the City prior to the commencement of construction.
6. If Developers fails to restore the easement area to the City's satisfaction as required in this
Agreement, the City may restore the easement area, and the cost thereof shall be billed to
M
Developers for payment to City. Upon Developers' failure to pay said billing, the removal
costs shall be certified to Johnson County as a statutory lien and assessed against the property
and collected in the same manner as a property tax, as provided in Section 364.12(2)(e), Iowa
Code (2017).
7. City and Developers agree this Temporary Agreement shall remain in effect until
completion of the Project and restoration of the easement area pursuant to Section 6 herein,
with an anticipated commencement and completion date as set forth in 2.4 of the
Development Agreement described above.
8. Notwithstanding the above, Developers agree to cease and desist their temporary use and
closure of the easement area and to remove any and all obstructions from said easement area
in the event of a breach of this Agreement.
9. Developers acknowledge and agree that no property right is conferred by this grant of
permission to use the easement area.
10. This Agreement shall constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns
of both parties.
11. This Agreement for Temporary Construction Easement shall be recorded in the Johnson
County Recorder's Office, at Developers' expense.
50
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EXHIBIT I
TEMPORARY USE OF RIGHT-OF-WAY AGREEMENT
This Agreement is made by and between , hereinafter "Developers" and the City of
Iowa City, Iowa, a municipal corporation, hereinafter referred to as "City."
WHEREAS, Developers are the fee owner of certain real estate addressed as 711 S. Gilbert Street,
Iowa City, Iowa; and
WHEREAS, Developers are undertaking construction of a hotel and mixed use building on the
property, and have requested the right to install certain temporary intrusions into the public right-
of-way; and
WHEREAS, the City of Iowa City, Iowa is responsible for the care, supervision, and control of
public right-of-way; and
WHEREAS, the Department of Public Works has reviewed the proposed temporary use of the
right-of-way, and finds the temporary use is not structural, is a minimal intrusion into the public
right-of-way, and also finds that such temporary use is in the public interest.
NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE PROMISES HEREIN, THE
CHAUNCEY AND THE CITY AGREE AS FOLLOWS:
1. In consideration of the City's permission herein to temporarily use of that portion of City
right-of-way for the Project described above, Developers agree to maintain adequate
pedestrian passage, traffic control, and signage as may be necessary to reasonably ensure
public safety.
2. In consideration of Developers' promises herein, the City agrees to allow Developers to
temporarily use that portion of the right-of-way shown on the attached exhibit for the
purpose of constructing the Minimum Improvements described in the Developer's
Agreement executed by and among the parties hereto on or about , 2017,
recorded in Book Page in the records of the Johnson County, Iowa
Recorder's Office.
Developers shall be responsible for the removal, storage, and replacement of items located
within the right-of-way which could be damaged during the construction of such temporary
uses. Items include, but are not limited to, downspouts, electrical services, signage and
sidewalks.
4. Developers agree to indemnify, defend and hold the City harmless against any and all
claims for bodily injury, death or property damage arising out of its actions and use of the
public right-of-way under this agreement, and those of its contractors, subcontractors,
agents, employees and assigns specifically including any and all claims and/or liabilities
which may be alleged against the City as a result of its decision to allow Developers to
51
temporarily close a portion of right-of-way adjacent to their property as described herein.
Developers further agree to carry Class II liability insurance in the minimum amounts of
$500,000 each occurrence, $1 million aggregate bodily injury, and $250,000 aggregate
property damage with contractual liability coverage included. Developers shall famish a
certificate of insurance evidencing said valid insurance coverage to City, which certificate
must be satisfactory to the City. Developers shall submit a certificate of insurance to the
City prior to the commencement of construction of the temporary uses contemplated
herein.
After the construction is complete, Developers agrees to restore any and all portions of the
right-of-way substantially to its original condition. If Developers fails to restore the right-
of-way to the City's satisfaction as required in this paragraph, the City may restore the
right-of-way, and the cost thereof shall be billed to Developers for payment to City. Upon
Developers' failure to pay said billing, the removal costs shall be certified to Johnson
County as a statutory lien and assessed against the property and collected in the same
manner as a property tax, as provided in Section 364.12(2)(e), Iowa Code (2017).
6. Developers agree to cease and desist its temporary use and/or closure of the public right-of-
way and to remove any and all obstructions from said rigbt-of-way at any time upon the
occurrence of any one of the following events:
a. a breach of this agreement;
b, the use of the property changes and/or the temporary use of the public right-of-way is
no longer needed or appropriate, as determined by the City;
C. within thirty (30) calendar days after the City gives written notice of removal to
Developers.
7. If Developers fail to remove any obstructions, barricades or signage from the public right-
of-way as required in this agreement, the City may remove the obstructions, barricades or
signage, and the cost thereof shall be billed to Developers for payment to City. Upon
Developers' failure to pay said billing, the removal costs shall be certified to Johnson
County as a statutory lien and assessed against the property and collected in the same
manner as a property tax, as provided in Section 364.12(2)(e), Iowa Code (2017).
8. Developers acknowledge and agree that no property right is conferred by this grant of
permission to use the public right-of-way; that the City is not empowered to grant a
permanent use of its right-of-way for private purposes;
9. This Agreement shall constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns
of both parties.
52
10. This Agreement for Temporary Use of Public Right -of -Way shall be recorded in the
Johnson County Recorder's Office, at Developers' expense.
Dated this day of 20
CITY OF IOWA CITY DEVELOPERS
By:
Geoff Frain, City Manager
Approved by:
City Attorney's Office
CITY ACKNOWLEDGMENT
STATE OF IOWA )
JOHNSON COUNTY ) SS:
On this _ day of , 20_, before me, the undersigned, a Notary Public in and
for the State of Iowa, personally appeared Geoff Frain, to me personally known, and, who, being
by me duly sworn, did say that he is the City Manager of the City of Iowa City, Iowa; that the
foregoing instrument was signed on behalf of the City of Iowa City, by authority of its City
Council, and that he acknowledged the execution of the instrument to be his voluntary act and
deed and the voluntary act and deed of the City, by it voluntarily executed.
Notary Public in and for the State of Iowa
My commission expires:
DEVELOPERS' ACKNOWLEDGMENT
STATE OF IOWA
JOHNSON COUNTY ss:
This instrument was acknowledged before me on this day of _ 20_, by
--and-, as members of
Notary Public in and for the State of Iowa
53
EXHIBIT J
AFFORDABLE HOUSING USE DEED RESTRICTION
[If owner -occupied affordable housing, insert legal description of the specific units to be
designated as "affordable housing ". ff affordable rental units, insert legal description of the
entire property]
1. The above-described property is subject to affordable housing use restrictions set forth in Iowa
City Code of Ordinances 14-2G-8 and an Agreement for Private Development, entered into on or
about '2017 between City and recorded in
_
Book, Page _ of the records of the Johnson County, Iowa Recorder.
2. The parties acknowledge that said Agreement is a covenant running with the land and with
title to the land, and shall remain in full force and effect as a covenant with title to the land. The
City is benefited by the above-described affordable housing use restrictions, and thus must
approve any sale of the property upon its determination that the sale complies with the sale
restrictions set forth in Iowa City Code of Ordinances 14 -2G -8D -2(d), as may be amended from
time to time.
3. The above-described use restrictions terminate on
from issuance of CO).
1f
(20 years
EXHIBIT K.
WAGE THEFT AFFIDAVIT
STATE OF IOWA )
) as:
JOHNSON COUNTY)
1, upon being duly sworn, state as follows:
1. I am the of ("Developer") and have
the authority to execute this affidavit on behalf of said Developer and any person or
entity with an ownership interest in said Developer of more than 25%.
2. Neither Developer nor any person or entity with an ownership interest of more than
25% of Developer has been adjudicated guilty or liable in any judicial or
administrative proceeding of committing a repeated or willful violation of the Iowa
Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair
Labor Standards Act or any comparable state statute or local ordinance, which
governs the payment of wages in the last 5 years.
This instrument was acknowledged before me on this _ day of , by
as of
Notary Public in and for the State of Iowa
55
EXHIBIT L
Iowa City Riverfront Crossings
Affordable Housing Requirement
Administrative Rules
Adopted August 22, 2017
The Iowa City City Council adopted Ordinance 16-4668 on July 5, 2016 to establish an
Affordable Housing Requirement in certain areas of the City. Those requirements are
codified in Iowa City Code of Ordinances 14-2138. Pursuant to 14 -2G -8(I), the City
Manager does hereby establish rules deemed necessary and not inconsistent with 14-
2G-8 to assure that the purposes of the Affordable Housing Requirements are
accomplished. These Administrative Rules shall be placed on file with the City Clerk
and made available on the City of Iowa City website.
I. General Requirements
Rezoning
Upon rezoning property to a Riverfront Crossings zoning designation, the owner will be
required to enter into an agreement with the City to indicate which method or methods it
will use to achieve the affordable housing requirement. Typically this agreement will
take the form of a conditional zoning agreement, which must be executed prior to the
close of the public hearing on the rezoning.
Subdivision
Upon subdividing property in the Riverfront Crossings District, if there is no zoning
agreement indicating the method or methods the owner will use to achieve the
affordable housing requirements, such indication shall be made in the Developer's
Agreement executed contemporaneously with the final plat approval.
Building Permit
Contemporaneously with an application for a building permit, an owner or developer
shall complete the "Application Regarding Riverfront Crossings Affordable Housing
Requirement", attached hereto as Exhibit A. This application shall be filed with
Neighborhood Development Services (NDS) with the application for the building permit.
NDS will process this application along with the building permit application, so that the
building permit and an affordable housing agreement can be entered into
contemporaneously. No building permit may be issued unless and until such an
agreement has been executed. The agreement shall take a form substantially similar to
that attached hereto as Exhibit B. The City Manager has the authority to execute this
56
agreement, which shall be recorded in the Johnson County Recorder's Office pursuant
to 14 -2G -8(c).
11. On -Site Owner -Occupied Affordable Housing
Determining Income
The seller shall be responsible for determining the income of the prospective buyer's
household to determine eligibility for the affordable owner -occupied units before closing
on the sale. If the sale does not close within six months after the income -eligibility
determination has been made, the seller must re-examine the homebuyer's income.
The City's consent to the sale is required and will be granted upon the City's
confirmation that the buyer's household is income eligible and the purchase price
complies with the ordinance and these rules. At least 30 days prior to closing, after the
seller determines that the buyer is income -eligible, the seller must submit the requisite
income documentation to the Director of Neighborhood Development Services. The
Director or designee will, within 5 business days of the submittal, review the
documentation, request any necessary additional documentation, and confirm or deny
the income -qualification determination This confirmation or denial will be in writing sent
to the seller either via email or through the United States Postal Service at the seller's
discretion.
The seller and the City shall use the annual income definition set forth in the HUD Part
5, Section 8 regulations found at 24 CFR 5.609, as amended, to determine if the
household is income -eligible. The Part 5 definition of income is the gross amount of
income of all adult household members that is anticipated to be received during the
coming 12 -month period. In performing its review of the income qualification, the seller
shall submit a completed "Calculating Part 5 Annual Income' (Exhibit C) detailing the
proposed buyer's income and shall provide the supporting documentation attached
thereto. Income -eligibility must be documented with source documents such as wage
statements (or three months of pay stubs), bank statements, letters from public
assistance agencies that identify assistance amounts (Social Security, welfare
assistance, etc.), and documentation of income received in periodic amounts such as
from retirement funds or pensions.
Exhibit D provides a comprehensive list of income that is included and excluded from
the calculations of annual income under Part 5. There is no asset limitation for the
household; however actual income from assets is recognized under the Part 5
definition, even if the household elects not to receive the income. For example, if a
household elects to reinvest the interest or dividends from an asset, it is still counted as
income.
Median income is based on HUD's HOME income limits for the Iowa City, IA HUD Metro
area, adjusted annually per household size (current limits identified in Exhibit F). Median
income is based on household size. If a household consists of a parent and child, it is a
57
two person household. If two unrelated adults share a household, incomes from both
must be included as they would be considered a two person household.
If the homebuyer is a full-time student, the student is eligible if neither parent claims the
student as a dependent on their state or federal taxes. Documentation from both
parents must be submitted to verify, unless extenuating circumstances make such
production impossible.
Dwelling Unit Size and Quality
The affordable dwelling units must be comparable to the market rate units of the same
type. The affordable dwelling units shall be at least 80% of the floor area of the market
rate units. The affordable housing dwelling units should have the same number of
bedrooms and types of amenities as the market rate units, unless otherwise approved
by the City Manager.
Location
The affordable housing units shall be distributed throughout the development to avoid
concentration of units, unless a different distribution will result in the provision of
additional affordable housing units. This may be approved on a case by case basis by
the City Manager. Should the City Manager agree to allow the affordable units to be
located together, a finding that such a concentration will result in the provision of
additional affordable housing units should be set forth in the Affordable Housing
Agreement. The additional affordable housing units created to allow this concentration
will be subject to the same use restrictions as any other required affordable housing unit
under 14-213-8.
Sales Restrictions
For newly -constructed owner -occupied affordable housing units, the 2017 maximum
sale price is $214,000, regardless of the number of bedrooms, which is based upon the
current HUD Homeownership Sales Price Limit for Johnson County. The maximum sale
price for subsequent sales of an owner -occupied affordable housing unit during the term
of affordability (established in 14-2G-8) shall not exceed the original purchase amount
paid by the original homeowner or the HUD Homeownership Sales Price Limits for
Johnson County, IA, adjusted annually, whichever is greater, except for those allowable
expenses set forth in 14-2G-8D(2)(d).
In all cases where an owner -occupied affordable housing unit is to be sold, the City
must approve the purchase price and the determination that the buyer is income -
eligible. The seller must submit any and all documentation supporting the sales price to
the Director of NDS in a timely manner at least 30 days prior to closing in order for the
City to analyze the information and properly consider the request prior to closing. In
determining whether to approve a sale price, the City will consider the following::
EF]
1) "Customary closing costs and costs of sale to be those identified in the Iowa
closing disclosure statement, such as title services, appraisal, recording and
loan origination fees.
2) Permanent Capital Improvements. In cases where the homeowner has
installed capital improvements, the value of these improvements, as
documented by receipts and the building permit documents, may increase the
sales price by the amount of the eligible improvement. A capital improvement
increases your home's value, while a non -eligible repair returns something to its
original condition. Replacing a countertop or bathroom feature would not be
considered an eligible capital improvement. An example of a capital
improvement would be the addition of a bathroom.
At least 30 days prior to closing, the seller must submit the requisite documentation to
support the sale price to the Director of NDS. The Director or designee will, within 5
business days of the submittal, review the documentation, request any necessary
additional documentation, and confirm or deny the sale price. This confirmation or
denial will be in writing sent to the seller either via email or through the United States
Postal Service at the seller's discretion.
Owners are cautioned about significant capital improvements as the home must be sold
to an income eligible homebuyer under 910% of median income. If the price exceeds
the maximum HUD Homeownership Sales Price Limit, the potential number of income
eligible buyers may be reduced.
111. On-site Affordable Rental Housina
The initial income qualification process for on-site affordable rental housing shall be the
same process as set forth above for on-site owner -occupied affordable housing, except
that an owner must review the income qualifications for tenants occupying designated
affordable housing dwelling units annually to determine continued compliance. The
reexamination shall be completed annually and before execution of a lease renewal. For
lease renewals, the City will accept a copy of the most recent federal tax form (Form
1040) submitted by all adult members of the household, as income verification.
If the tenant is no longer income eligible, notwithstanding the location requirement set
forth in the Code and as approved by the Director of NDS, the next available unit with
the same bedroom size or larger in the project property must be rented to an income
eligible tenant.
The property owner shall submit an Annual Tenant Housing Report (Exhibit E) for the
designated affordable housing rental units. The report shall be submitted each January
30 for the preceding calendar year throughout the compliance period. At a minimum,
the report shall include the name of the household, unit number/address, lease dates
(most recent lease or renewal date), rent amount, number of bedrooms, size and
59
income of the household. Neighborhood Services staff shall verify compliance within 30
days and may request income documentation for all or a portion of the qualifying
tenants.
The property owner shall retain tenant income and rent for the most recent three years,
until three years after the compliance period.
Rental Rate
The monthly rate for the affordable housing units shall not exceed the HOME Fair
Market Rent, per applicable bedroom size, as published by HUD for the Iowa City, IA
HUD metro area, as adjusted annually. These rents may be found online at
www.icgov.org/aGtionplan under HOME Table of Income Guidelines and Fair Market
Rent (2017 rents identified in Exhibit F).
IV. Off -Site Affordable Dwelling Units or Dedication of Land
If the owner desires to satisfy this obligation through off-site affordable housing or
through the dedication of land, the owner must establish that it would be infeasible to
provide the affordable units on-site or to provide a fee in lieu of the on-site units, as
reasonably determined by the City. If the owner is able, to establish this, the City's
determination must be reflected in the findings of the conditional zoning agreement.
If the property is not subject to a conditional zoning agreement already establishing the
method of achieving affordability and the owner desires to satisfy this obligation through
off-site affordable housing or through the dedication of land, the owner must establish
that it would be infeasible to provide the affordable units on-site or to provide a fee in
lieu of the on-site units, as reasonably determined by the City. If the owner is able to
establish this, the City's determination must be reflected in the findings of the affordable
housing agreement.
In reasonably determining whether an owner has established that providing the units
on-site or paying the fee in lieu thereof is not feasible, the City will consider such factors
as whether the cost of constructing the unit exceeds the current maximum sale price for
affordable units, as set forth in the Code of Ordinances, and whether the common
maintenance expenses each owner would be required to pay would be cost prohibitive
for income -qualified households.
The off-site affordable housing units may be satisfied by designating existing or newly
constructed dwelling units in the Riverfront Crossings District, as defined in Iowa City
Code 14-2G-2, as may be amended from time to time, as affordable dwelling units,
subject to the use limitations set forth in 14-2G-8 and herein.
V. Fee -in -Lieu Contribution
.O
As of July 5, 2016, the City Council adopted a resolution setting the fee at $80,872 per
unit. The fee -in -lieu contribution shall be made prior to issuance of any building permit
for the development for which affordable housing is required pursuant to City Code 14-
2G-8.
A. Application Regarding Riverfront Crossing Affordable Housing Requirement
B. Affordable Housing Agreement
C. Calculating Part 5 Annual Income
D. Income Inclusions and Exclusions
E. Annual Tenant Housing Report Form
F. Table of Income and Rent Limits
61
Calculating Part 6 Annual Income
EX HIF aL—,
CITY OF IOWA CITY
1. NDmQ;
-- ASSETS
Family
Asset 1023crfptl�n
,
curmntCash - WV
P-l—us A- ct ni 1in—c0 s from
of Assets As5e.s
—_AsfWjs ...............................
X
Signature of Agency Representative
Name of Agency Determining Income for Household
Household Income
% of Median Income
Maximum Income Limit of Household
(See Affordable Housing Agreement): Circle: 60% 80% 110%
INCOME ELIGIBLE: Circle: Yes No
(Attach sUPPUffing IncOmS documentation to this form. Retaln for three years,)
Date
Revised 612712016
Income Inclusions and Exclusions
24 CFR 5.609(b) and (c)
Examples included in parentheses have been added to the regulatory language for clarification.
INCOME INCLUSIONS
(1) The full amount before any payroll daductlons, of wages and salaries, overtime pay,
commissions, fees, tips and bonuses, and other compensation for personal services;
(2) The net Income from onerstim of a business or Profession. Expenditures for business expansion
or amortization of capital Indebtedness shelf not be used as deductions in determining not Income.
An allowance for depreciation of assets used in a business or profession may be deducted, based
on straight line depreciation, as provided In Internal Revenue Service regulations. Any withdrawal
of cash or assets from the operation of a business or profession will be Included In Income, except
to the extent the withdrawal is reimbursement of cash or assets Invested In the operation by the
family;
(3) Interest divkienda and other not income at any kind from real or personal property. Expenditures
for amortizallon of capital Indebtedness shall not be used as deductions In determining net
Income. An allowance for depreciation Is permitted only as authorized in paragreph (2) above.
Any withdrawal of cash or assets from an Investment will be included in income, except to the
extent the withdrawal is reimbursement of cash or assets Invested by the family. Where the family
has net family assets In excess of $5,000, annual Income shall include the greater of the actual
Income derived from all net family assets or a percentage of the value of such assets based on the
current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts recoived from social security, annuities, Insurance policies,
retirement funds, pensions, disability, or death benefits, and other similar types of periodic receipts,
Including a lump -sum amount or prospective monthly amounts for the delayed start of a "periodic
amount (e.g.. Black Lung Sick benefits, Veterans Dleabiaty, Dependent Indemnity Compensation,
payments to the widow of a serviceman killed in action). See paragraph (13) under Income
Exciuslons for an exception to this paragraph;"
(5) payments in Mau of earningssuch as unemployment, disability compensation, worker's
compensation, and severance pay, except as provided in paragraph (3) under Income Exclusions;
(S) WelfareAsalmance.
(a) Welfare assistance received by the family,
(b) If the welfare assistance payment includes an amount specifically des(gneted for shelter and
utilities that is subject to adjustment by the welfare assistance agency In accordance with the
actual cost of shelter and utilities, the amount of welfare assistance intone to be Included as
HUD Occupancy Handbook 1
06107
Chapter 5; Determining Income 8 calculating Rem
-0350,3 REV -1 Ct16-3�
income shall consist of.
(c) The amount of the allowance or grant exclusive of the amount specifically designated for shelter
or utilities; plus
(d) The maximum amount that the welfare assistance agency could In fact allow the family for
shelter and utilities. If the family's welfare assistance Is ratably reduced from the standard of
need by applying a percentage, the amount calculated under this paragraph shall be the
amount resulting from one application of the percentage.
(7) fPdodlc and determinable allowances, such as alimony and child support payments, and regularr
contributions or gifts received from organizations or from persons not residing in the dwelling; and
(8) All regular oay, sneclal oav and allowances of a member of the Armed Forces, except as provided
In paragraph (7) under Income Exclusions.
(9) For Section 8 programs only and as provided In 24 CFR 5.612, any financial assistance, in excess
of amounts received for tuition, that an individual receives under the Higher Education Act of 1985
(20 U.S.C, 1001 at seq.), from private sources, or from an Institution of higher education (as defined
under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that
Individual, except that financial assistance described in this paragraph is not considered annual
Income for persons over the age of 23 with dependent children. For purposes of this paragraph
'financial assistance" does not include loan proceeds for the purpose of determining income.
"(Note: This paragraph also does not apply to a student who is living with his/her parents who are
applying for or receiving Section 8 assistance.)'
INCOME EXLCUSIONS:
(1) Income from employment of children (Including foster children) under the age of 18 years;
(2) Payments received for the care of faster children or foster adults (usually parsons with disabilities
unrelated to the tenant family, who are unable to live alone);
(3) Lump -sum additions to family assets, such as Inheritances, Insurance payments (including
payments under health and accident insurance and worker's compensation), capital gains, and
settlement for personal or property losses, except as provided in paragraph (5) under Income
Inclusions;
(4) Amounts received by the famlly that are specifically for, or in reimbursement of, the cost of medical
expenses for any family member;
(5) Income of a live -In aide, as defined in 24 CFR 5.403;
(6) The full amount of student financial assistance paid directly to the student or to the educational
Institution (see Income Inclusions (9), above, for students receiving Section 8 assistance);
(7) The special pay to a family member serving In the Armed Forces who Is exposed to hostile fire
(e.g,, in the past, special pay included Operation Desert Storm);
(e) (a) Amounts received under training programs funded by HUD (e.g., training received under
Section 3);
HUD Occupancy Handboch
Chapter 5: Delermining Income $ Celeule5ng Rent
435 Rtv-1._..�
(b) Amounts received by a person With a disability Chet are disregarded for a limited time for
Purposes of supplemental security income eligibility and benefits because they are sat -aside for
use under a Plan to Attain Self-Suhldency (PASS);
(c) Amounts received by a participant in other publicly assisted programs that are specifically for or
In reimbursement of out-of-peoket expenses incurred (special equipment, clothing,
transportation, child care, etc.) and which are made solely to allow participation In a specific
program;
(d) Amounts received under a resident service stipend. A resident service stipend is a modest
amount (not to exceed $200 per month) received by a resident for performing a service for the
owner, on a part-time basis, that enhances the quality of life in the project. Such services may
Include, but are not Ilmlled to, fire patrol, hail monitoring, lawn maintenance, and resident.
initiative coordination. No resident may receive more than one such stipend during the same
period of time; or
(e) Incremerdal earnings and benefits resulting to any family member from Participation in qualifying
state or local employment training Programs (ncluding training programs not affiliated With a
local government) and training of a family member as a resident management staff peraon.
Amounts excluded by this provision must be received under employment training programs with
clearly deflned goals and objectives, and are excluded only for the period during which the
family member participates in the employment training program.
(D) Temporary, nonrecurring, or sporadic income (including gifts);
(10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era. (Examples include payments by
the German and Japanese governments for atrocittas committed during the Nazi era);
(11) Earnings in excess of $480 for each full-time student 18 years or older (excluding the head of
household and spouse);
(12) Adoption assistance payments In excess of $480 per adopted child;
(13) Deferred periodic amounts from supplemental security Income and social security benefits that are
received in a lump -sum amount or In prospective monthly amounts;
(14) Amounts received by the family in the fort of refunds or rebates under state or local law for property
taxes paid on the dwelling unit;
(16) Amounts paid by a state agency to a family with a member who has a developmental disability and Is
living at home to offset the cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(16) Amounts specifically excluded by any other federal statute from consideration as income for purposes
of determining eligibility or benefits under a category of assistance programs that includes assistance
under any program to which the exclusions set forth In 24 CFR 6.6D9(c) apply. A notice will be
published in the Federal Registerand distributed to housing owners Identifying the benefits that qualify
for this exclusion. Updates will be published and distributed when necessary.
HUD Occupancy Handbook 3 —
Chapter 6: Delermininp Income & Calculating Rent
The following is a list of income sources that quality for that excluslon:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7
U.S.C. 2017 [b));
(b) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g),
5058) (employment through AmeriCorps, Volunteers In Service to America (VISTA), Retired Senior
Volunteer Program, Foster Grandparents Program, youthful offender Incarceration alternatives,
senior companions);
(o) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626[cll
(d) Income derived from certain submarginal land of the United States that is held In trust for certain
Indian tribes (25 U.S.C. 459a);
(a) Payments or allowances made under the Department of Health and Human Services' Low -Income
Home Energy Assistance Program (42 U.S.C. 8824[@);
(f) Payments received under programs funded in whole or in part under the Job Training Partnership
Act (29 U.S.C. 1552[b); (effective July 1, 2000, references to Job Training Partnership Act shall be
deemed to refer to the corrasponding provision of the Workforce Investment Act of 1898 [29 U.S.C.
29311, e.g., employment and training programs for Native Americans and migrant and seasonal
farm workers, Job Corps, veterans employment programs, state Job training programa, career
Intem programs, Americorps);
(g) Income derived from the disposition of funds to the Grand River Band of Otlawe Indians (Pub. L-
94-540, 90 Stat. 2503-04);
(h) The first $2,000 of per cophs shares received from judgment funds awarded by the Indian Claims
Commission or the U. S. Claims Court and the interests of Individual Indians in (rust or restricted
lands, Including the first $2,000 per year of Income received by individual Indians from funds
derived from interests hold in such trust or restricted lands (25 U.S.C. 1407-1408);
(1) Amounts of scholarships funded underfitle IV of the Higher Education Act of 1985, Including
awards under federal work-study programa or under the Bureau of Indian Affairs student
assistance programs (20 U.S,C. 1087uu);
(J) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42
U.S.C. 30581t)), e.g., Green Thumb, Senior Aides, OlderAmerican Community Service
Employment Program;
(k) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any
other fund established pursuant to the settlement in In Re Agent product liability litigation, M.D,L.
No. 381 (E.D.N.Y.);
(1) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721);
(m) The value of any child care provided or arranged (or any amount received as payment for such
care or reimbursement for costs incurred for such care) under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C, 9858q);
(n) Earned income tax credit (FITC) refund payments received on or after January 1, 1991, Including
advanced earned Income credit payments (26 U.S.C. 32[1));
(o) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima
Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95.433);
(p) Allowances, earnings, and payments to AmedCorps participants under the National and
Community Service Act of 1990 (42 U.S.C. 12637[d]);
NUD Occupancy Handbook4 _----_._ r15107
Chapter 5: Determining lncome & Ceiculating Renl
4;Sn.3 REV -1
(q) Any allowanca paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina blflda
who is the child of a Vietnem veteran (38 U.S.C. 1805);
(r) Any amount of crlrrte VIc9m compensation (under the Victims of Crime Act) received through
crime victim assistance (or payment or reimbursement of the cost of such assistance) as
determined under the Vktlms of Crime Act because of the commission of a crime against the
applicant under the Victims of Crime Act (42 U,S.C. 1D502); and
(s) Allowances. earnings and payments to individuals participating In programs under the Workforce
Investment Act of 1098 (29 U.S.C. 2931),
HU4 Occupancy Irving ImC g 0eIe7
Chapl9r 5: Oetermining Income $ Calculating Rent
Annual Tenant Housing Report Form— Due Jeneary3efa Pmcadtng alendaryear
Name, Phone Number 8 Email of Person Completing Form.
Property Address
anted Coveted:
January 1.2e17 to Deceniber 91, 20t7
. Property OMMr:
Required Number of Unua perordrnanea:
u xdk;..
+-
AN feat Ramo or Ceem wx �._ TaGd % 5 oT Ffovaehotd 9fmtfltrroeraf Leaaa Laaaa F.aplmt€an Data
UnftA Bdnns rRaMly
6lodfan lnccma (allmemMm)
I certify that t%iaformation above is, to the best of my knowledge and belief trao, torted and completm I em aware that the
the City of Iowa City. iafoanadon being Provided is sabjeat to verification by
Name (pziat) Signnhae Data
Zachary Davelaar
From:
Zachary Davelaar
Sent:
Tuesday, September 19, 2017 3:37 PM
To:
'Julia Ware'
Subject:
FW: II property Ins for 2016
Attachments:
2016-06-15 a -filed Claim in Probate - Bank of America.PDF, 2016-06-03 Claim in
Probate - Verizon Wireless.PDF
Julia,
Were you able to contact Bank of America and Verizon Wireless in order to pay these two claims of the estate? We need
to have them released before we can close the estate.
Please let me know if you have any questions or need assistance.
Thank you,
Zach
Zachary R. Davelaar
KENNEDY, CRUISE,
FREY & GELNER, L.L.P.
920 S. Dubuque Street
P.O. Box 2000
Iowa City, IA 52244
(319)351-8181
(319) 351-0605 (fax)
NOTICE: Because e-mail messages sent between you and Kennedy, Cruise, Frey & Gelner, L.L.P. are transmitted over the
Internet, neither Kennedy, Cruise, Frey & Gelner, L.L.P. nor its employees can ensure that such messages are secure.
You should be careful in transmitting information to Kennedy, Cruise, Frey & Gelner, L.L.P. that you consider
confidential. If you are uncomfortable with such risks, you may decide not to use e-mail to communicate with
individuals at Kennedy, Cruise, Frey & Gelner, L.L.P. This message is covered by the Electronic Communication Privacy
Act, 18 U.S.C. Sections 2510-2515, is intended only for the use of the person to whom it is addressed and may contain
information that is confidential and subject to the attorney-client privilege. It should also not be forwarded to anyone
else. If you received this message and you are not the addressee, you have received this message in error. Please notify
the person sending the message and destroy your copy.
Thank you.
-----Original Message -----
From: Zachary Davelaar
Sent: Thursday, June 22, 2017 2:24 PM
To: 'Julia Ware' <imjuliaware@yahoo.com>
Subject: RE: II property Ins for 2016
Julia,
Thank you for sending me these documents. Additionally, I have attached the Bank of America and Verizon claims that
need to be paid. I received a call from Kate McCall with Bank of America requesting an update on the estate. You can
reach her at 1-888-221-4299 for directions on where to send the payment and request a Release. You can contact DCM
Services at 1-866-591-3253 to pay the Verizon Wireless claim and request a Release.
Please let me know once these two claims and the Toyota claim have been paid. If you need any assistance with
contacting these companies, I would be more than happy to help.
Thank you,
Zach
Zachary R. Davelaar
KENNEDY, CRUISE,
FREY & GELNER, L.L.P.
920 S. Dubuque Street
P.O. Box 2000
Iowa City, IA 52244
(319)351-8181
(319) 351-0605 (fax)
NOTICE: Because e-mail messages sent between you and Kennedy, Cruise, Frey & Gelner, L.L.P. are transmitted over the
Internet, neither Kennedy, Cruise, Frey & Gelner, L.L.P. nor its employees can ensure that such messages are secure.
You should be careful in transmitting information to Kennedy, Cruise, Frey & Gelner, L.L.P. that you consider
confidential. If you are uncomfortable with such risks, you may decide not to use e-mail to communicate with
individuals at Kennedy, Cruise, Frey & Gelner, L.L.P. This message is covered by the Electronic Communication Privacy
Act, 18 U.S.C. Sections 2510-2515, is intended only for the use of the person to whom it is addressed and may contain
information that is confidential and subject to the attorney-client privilege. It should also not be forwarded to anyone
else. If you received this message and you are not the addressee, you have received this message in error. Please notify
the person sending the message and destroy your copy.
Thank you.
-----Original Message -----
From: Julia Ware [mailto:imjuliaware@yahoo.com]
Sent: Thursday, June 22, 2017 12:57 PM
To: Zachary Davelaar<ZDavelaar@kcfglaw.com>
Subject: If property Ins for 2016
CITY OF 1 O WA CITM
COUNCIL ACTION REPOR
September 19, 2017
Resolution approving an agreement for private redevelopment by and
between the city of Iowa city, Iowa, and Hieronymi partnership, L.L.P.,
Hieronymus Square Developers, L.L.C., Iowa City ES hotel, L.L.C., and
HS314, L.L.C.
Prepared By:
Wendy Ford, Economic Development Coordinator
Reviewed By:
Simon Andrew, Assistant to the City Manager
Fiscal Impact:
$8,000,000 in tax increment financing rebates
Recommendations:
Staff: Approval
Commission: Economic Development Committee
Attachments:
1. Hieronymus Square Request for TIF: Hieronymus Square —
A Dynamic Mixed Use Complex
2. NDC financial review memorandum
3. Resolution
Executive Summary:
Members of the Hieronymus family have owned the southeast corner of Burlington and Clinton
Streets for decades. After years of planning, they have partnered with local developers and are
proposing a $40 million mixed use development for the site and have requested gap financing
with tax increment financing (TIF) in the amount of $8 million. The City Council EDC (Economic
Development Committee) reviewed the project at their July 21, 2017 meeting and unanimously
recommended approval.
Background / Analysis:
About a year ago, developers began revising a plan that had been contemplated years earlier.
The new plan consists of two distinct buildings joined by a common entry vestibule. The building
at the corner of Burlington and Clinton is a 7 -story mixed use building with retail space on the
ground floor, Class A office space on the second floor and five floors with a total of 45
residential units on levels three through seven.
TIF Policy requires that the developer provide 15% of the total number of residential units (7, in
this case) as affordable housing units to income qualified people at or below 60% of the area
median income (AMI). TIF policy provides an option for the developer to provide the affordable
housing units on-site, off-site or by contributing a fee -in -lieu of providing the units. The
Development Agreement for Hieronymus Square requires a minimum of two units be on-site
and that the remaining five be satisfied by either providing them on-site or by paying the fee -in -
lieu of $80,872 per unit.
The second building, a 91 -room, 7 -story hotel lies parallel to and south of the first building. It is
connected to the first building by a vestibule that will serve as the entry way to and offer a
r 1 CITY OF IOWA CITY
COUNCIL ACTION REPORT
common area for both buildings including a connection to the Court Street Transportation
Center (CTSC) to the east. The vestibule between the buildings will serve as the entry point for
the residential building on the north and the hotel building on the south. The mail room and
elevators for the residential units, and the lobby, reception, hotel elevators and breakfast area
will be just inside and on either side of the entry way vestibule. At the east end of the lobby
area, a stairway and another elevator will connect the buildings to the CSTC to the east. The
second level of the common vestibule will include an indoor pool, upper and lower terraces, and
an indoor fitness area. The skywalk and the underground connections to the CTSC will require
separate agreements and FTA (Federal Transit Authority) approval. On the vestibule rooftop will
be a two level outdoor terrace. The development agreement allows for the City Manager to
approve minor deviations in the number of residential units, the unit mix and the number of
hotel rooms upon determining any deviations do not constitute significant changes to the scope
or scale of the Minimum Improvements.
The hotel will fly the Element Hotel flag, a Marriott/Starwood company extended -stay property,
and be the first of its kind in Iowa City. The 91 rooms in the Element will all be equipped with
kitchenettes and be especially designed to appeal to the extended -stay market.
All required residential parking will be in a basement level garage accessible through the CSTC.
Hotel parking will be accommodated in the CSTC with an agreement between the City and the
hotel similar to those of the Sheraton, Hotel Vetro, and the Hilton Garden Inn hotels.
Financial Analysis
The City contracts with the non-profit National Development Council (NDC) to review and assist
in the financial analysis of proposed TIF development projects. Karen Garritson, an NDC
Director, led the financial analysis of the proposed project and has submitted a memo detailing
her review (attached).
In summary, total development costs for the project are $40.75 million of which $5 million is land
acquisition, $28 million is construction, and the remaining are soft costs, interest, fees and
furnishings. The cost breakdowns are further detailed in the developer's Request for TIF and in
Ms. Garritson's memo, attached. Sources of funding the project include bank loans totaling
$22.4 million, developer's equity of $10.3 million, and the City's gap financing of $8 million.
City Financial Assistance
The City's financial analysis examines all project costs and all financing sources for a project,
with special scrutiny on the developer's return. With a focus on developer equity and the
maximization of project debt, the evaluation process aims to ensure that if public financing is
used, that it may fill a financial gap but that it may not allow undue enrichment to the developer.
Various measures including project development costs, financial pro -formas, written evaluation
reports, market analyses, and others are used to evaluate the use of economic incentives.
'r 1 CITY OF IOWA CITY
COUNCIL ACTION REPORT
Each of the two components of Hieronymus Square demonstrated a financial gap after
maximizing commercial financing and meeting developer equity requirements of being at least
as much as the gap financing. Because the City strongly prefers to use TIF rebates, as opposed
to providing up -front cash, developers have to finance the gap by taking on a "TIF loan" to be
serviced by future TIF rebates. Correspondingly, the gap grows by the cost of financing the TIF
loan.
Combined, the $40 million Hieronymus Square development demonstrates a total gap of $8
million. For the 7 -story mixed use building, the gap is $2.4 million, plus $1 million in interest for a
total of $3.5 million. For the Element Hotel, the gap is $2.73 million, plus $1.17 in interest for a
total of $3.9 million. The remaining $600,000 of financial gap is proposed to be granted as a TIF
advance, after completion of the minimum improvements detailed in Exhibit B in the
Development Agreement. The $600,000 helps to reduce interest costs and will help with early
project cash flow due to the lag -time before rebates commence in 2022. City risk is minimized
because construction will be complete before the advance is given.
Recommendation
The project meets several goals and objectives set forth in the Council's Strategic Plan. Among
those, it does the following:
• Helps the City maintain a solid financial foundation by adding approximately $22 million
in valuation to the tax base and by generating new hotel taxes averaging more than a
$250,000 per year or $3.8 million over the first 15 years;
• Promotes a strong and resilient economy by adding retail, office and residential users to
a prime corner in downtown Iowa City at the mid -point between Downtown and
Riverfront Crossings;
• Fosters a healthy neighborhood by improving a blighted property on the busiest corner
downtown;
• Encourages a vibrant and walkable urban core by the addition of storefront windows, the
additional set back requirement to expand the sidewalk, and thus walkability, along this
section of state highway/Burlington Street; the addition of market rate and affordable
residential units to downtown; and finally,
• Promotes environmental sustainability by deploying roof -mounted solar panels and
generating approximately 38,000 Kwh per year of its own power, thereby helping to
reduce carbon emissions.
The EDC and Staff recommend approval.
Kellie Fruehling
From:
Sent:
To:
Subject:
Attachments:
Martha Norbeck <martha norbeck@hotmail.com>
Monday, September 18, 2017 8:45 AM
Council Late Handouts Distributed
Proposed TIF agreement for Hotel
Hotel TIF and Energy Use_9.18.17.pdf
Please refer to the attached letter.
Thank you,
Martha Norbeck
`1llx�lt
(Date)
FROM: Martha Norbeck, AIA, LEED AP
RE: Item 8, Mixed Use Development - Resolution approving an agreement for private redevelopment by and
between the City of Iowa City, Iowa, and Hieronymi Partnership, L.L.P., Hieronymus Square Developers, L.L.C.,
Iowa City ES Hotel, L.L.C., and HS314, L.L.C..
DATE: September 18, 2017
Dear Members of Council,
The developer has proposed to pursue Gold level Certification under the Green Seal for Hotels Standard (GS -33). I am
pleased to see the hotel has committed to pursue this certification.
Please note that the standard is a menu of options and it is possible to choose a selection of options which are not as
rigorous as the council might infer. I do not know the owners specific intentions. I bring this to your attention so you
may ask informed questions regarding their intent for minimizing energy consumption.
I recommend the city staff and the council to confirm that the developer intends to incorporate rigorous energy
efficiency measures before finalizing the developer agreement.
Solar Panels
The 38,000 kwh annual contribution in solar panels will offset about 3-5% of the total annual energy use for a
building this size - so while I applaud all solar panels, the actual value of the solar to the overall carbon footprint is
minimal. Energy efficiency will provide much greater value for less cost.
These are the minimum requirements regarding building energy use.
• 2.1 Maintain a list of energy consuming devices
• 2.2 Indoor lighting shall be energy efficient
• 2.3 Maintain preventative maintenance for HVAC systems
• 2.4 Timers/sensors used on lighting and HVAC in low occupancy areas.
This is not exactly a high bar for efficiency. However, at the gold level, additional parameters are defined.
ADDITIONAL MEASURES FOR GOLD
In addition, for Gold Level Green Seal for Hotels (GS -33) The property shall meet at least 3 of the following
requirements (sections 2.7.1- 2.7.8).
ThaYs three of the following items — it is possible to choose none that relate to building energy use.
2.7.1 Energy Reduction
The property shall
• set substantive, meaningful goals for energy reduction
OR
• be an ENERGY STAR Leader, or equivalent.
2.7.2 Management of Resource use
2.7.2.1 The property shall track its energy consumption (electricity, natural gas, fuel, etc.), potable water
consumption, and the amounts of waste collected for disposal/incineration and for recycling.
2.7.2.2 Monthly bills shall be tracked with the ENERGY STAR Portfolio Manager, or an equivalent resource
management or documentation system (e.g., utility software or Excel spreadsheet) that:
1. tracks costs, total consumption, and Resource Use Intensity;
2. benchmarks these factors relative to past performance (normalized for sales volume);
3. determines percent improvement or savings in energy, water, and generation of waste.
2.7.2.3 These impacts shall be reviewed at least annually, with appropriate goals set for continuous
improvement.
2.7.3 Sustainable Building
The property shall be certified by a nationally -recognized green building certification program.
ME
• register for and actively be in the process of achieving a nationally -recognized green building
certification program.
2.7.4 Renewable Energy
The property shall
• use renewable energy for at least 25% of its needs, either via onsite production or
certified Renewable Energy Certificates.
RN
• be certified through the Center for Resource Solutions' Green -e Marketplace program or is a Partner in
the EPA's Green Power Leadership Club.
2.7.5 Greenhouse Gas Emissions
The property shall
• offset greenhouse gases through partnerships or certified carbon offsets to compensate
for all Scope 1 & Scope 2 greenhouse gases emitted within the property, following the
UNFCCC reporting guidelines.
AND
• maintain an active program to reduce its greenhouse gas emissions.
2.7.6 Waste Reduction: The property shall reuse, recycle, or compost 60% of its solid waste, thus diverting it from
landfills and incinerators.
2.7.7 Green Cleaning: The cleaning services on the property shall meet the requirements In the Green Seal
Environmental Standard for Cleaning Services (GS -42 )22, or are certified to that standard.
2.7.8 Water Conservation: The property shall meter and monitor its water consumption.
I recommend the city staff and the council to confirm that the developer intends to incorporate rigorous energy
efficiency measures before finalizing the developer agreement.
Sincerely,
Martha Norbeck, AIA, LEED AP
906 S 7th Ave, Iowa City, IA 52240
310.621.4168 norbeck@cwise.com
Late Handouts Distributed �}
9// 9 -7
(Date)
Hieronymus Square Developers L.L.C. Presents
Hieronymus Square — A Dynamic Mixed Use Complex
Hieronymus Square Developers L.L.C.
The Site:
The location for the Hieronymus Square project site is at 314 S. Clinton St. The site is currently a
vacant lot at the southeast quadrant at the intersection of Burlington and Clinton Streets adjacent to the
Hilton Garden Inn and directly across from the University of Iowa's new School of Music.
Project Overview:
This project is under development by Hieronymus Square Developers L.L.C. (the developer) which is a
joint venture between Iowa City ES Hotels L.L.C. and HS 314, L.L.C. The project consists of two
adjoined 7 story towers. Tower #1 to be owned by HS 314, L.L.C. will feature a mixed-use building of
commercial space, professional office space, residential condominiums and underground parking. The
2°d tower will be owned by Iowa City ES Hotels L.L.C. will be an all -suite Marriott branded 92 unit
extended stay hotel called Element by Westin. Both Towers will share an expansive 2°a floor outdoor
patio space between the buildings that will offer outdoor amenity space for both hotel guests and
residents including swimming pool, seating area and fitness center. Additionally, the expansive space
will also be able to hold outdoor events.
The developer believes this project will be successful due to its outstanding location and diverse mix of
users. With the site serving as an anchor corner to the key intersection of Burlington and Clinton and as
a gateway to Riverfront Crossings. Additionaly the sites proximity to the U of I campus and UI
Hospitals & clinics the Element will meet the extended stay hotel demand downtown.
Hieronymus Square Developers L.L.C.
Building Program:
Floor
Sq. ft.
Rooms
Mixed Use
7
11,150
9
Condo
6
11,150
9
Condo
5
11,150
9
Condo
4
11,150
9
Condo
3
11,150
9
Condo
2
10,600
Class A Office
1
9,805
Commercial
0
27,974
Parking
Total Sq. Ft. / Units
104,129
45
Total Units
Element Hotel (upscale
extended stay)
7
8,574
15
Hotel
6
8,574
16
Hotel
5
8,574
16
Hotel
4
8,574
15
Hotel
3
8,574
15
Hotel
2
17,140
15
Hotel
1
14,528
Hotel/Lobby
Total Sq. Ft./Units
74,538
92
Total Units
Common Areas
2
5,500
Patio
1
2,500
Shared lobby
entry
Total Sq. Ft.
8,000
Mixed Use Total:
104,129
Hotel Total:
74,538
Common Areas:
8,000
Total:
186,667
3
Hieronymus Square Developers L.L.C.
Basement:
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Hieronymus Square Developers L.L.C.
First Floor (Hotel in lower half of plan):
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Hieronymus Square Developers L.L.C.
Second Floor (Hotel in lower half of plan):
9
Hieronymus Square Developers L.L.C.
Typical Floors (3-7) (Hotel in Pink):
STD KING ISTUDIO KING I STD KING I IR SUITE I STUDIO KING ISTD KING I STD KING I STD KING I STD KING
STD KING J HOTEL CIRC
STUDIO KING
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7
Hieronymus Square Developers L.L.C.
Section North South (Hotel in Pink):
Hieronymus Square Developers L.L.C.
Site/Location:
The site for the project is an exceptional location in the heart of downtown Iowa City directly adjacent to
the University of Iowa campus. Dining, entertainment and culture are only steps away with the
downtown district next door featuring a diverse group of restaurants, bars and retail shops. The diverse
mixed use complex of two towers will be a highly visible fixture at the hallmark intersection of
Burlington and Clinton streets. The site is immediately across the street from the University of Iowa's
new $152 million School of Music that recently opened in August of 2016.
The new School of Music building, houses a 700 -seat concert hall, a 200 -seat recital hall, an organ
performance hall, a music library, rehearsal and practice rooms, classrooms, a faculty studio and
administrative offices. http://music.uiowa.edu/building/building-construction#overlav-
context=Buildine/.
The high-profile intersection will have significant synergies with the Hieronymus square facilities.
They will help uniquely define the complex as a destination and provide an added energy and sense of
place to the corner of Burlington and Clinton Streets.
V
Hieronymus Square Developers L.L.C.
Element Brand Information and Facilities:
The hospitality tower proposed for development is a 7 -story, concrete and wood- framed constructed,
92 -unit, Element by Westin (recently acquired by Marriott and now part of Marriott family of brands)
extended stay hotel. Amenities will include an expansive lobby, free breakfast/aftemoon reception area,
expanded fitness room, indoor pool, outdoor patio and a full kitchen in each room. As of year-end
2016, there were 30 Elements open and many more proceeding in development due to Marriott's
acquisition of Starwood.
*SEE attached Element Information Packet*
Element is an upscale extended stay brand within the Marriott franchise `family' of hotel brands.
Marriott International, Inc. (NASDAQ: MAR) is the world's largest hotel company based in Bethesda,
Maryland, USA, with over 6,000 properties in more than 120 countries and territories. Marriott operates
and franchises hotels and licenses vacation ownership resorts. The company's 30 leading brands include:
Bulgari®, The Ritz-Carlton® and The Ritz-Carlton Reserve®, St. Regis®, W®, EDITION®, JW
Marriott®, The Luxury Collection% Marriott Hotels®, Westin®, Le Meridien®, Renaissance® Hotels,
Sheraton% Delta Hotels by MarriottsM, Marriott Executive Apartments®, Marriott Vacation Club®,
Autograph Collection® Hotels, Tribute PortfolioTM, Design HotelsTM, Gaylord Hotels®, Courtyard®,
Four Points® by Sheraton, SpringHill Suites®, Fairfield Inn & Suites®, Residence Inn®, TownePlace
Suites®, AC Hotels by Marriott®, Aloft®, Element®, Moxy® Hotels, and Protea Hotels by Marriott&
The company also operates award-winning loyalty programs: Marriott Rewards®, which includes The
Ritz-Carlton Rewards®, and Starwood Preferred Guest®. The Element brand is targeting travel savvy,
value -wise extended -stay guests, within an `edgy', mid -scale brand offering and price point.
Given the wide acceptance of the various Marriott brands and even more so Element's position in the
thriving extended stay upscale segment, the proposed Element is projected to be a market leader among
the hotels in the Iowa City marketplace. We anticipate the Element hotel to be a clear first choice for
extended stay guests as well for many Marriott loyal travel -savvy extended stay guests, who prefer the
look, ambiance and amenities, for a customized guest experience.
Considering all the current hotels in Iowa City/Coralville the Element will have a competitive advantage
with the extended -stay travelers due to its extended stay focus while the more traditional higher rated,
transient and leisure business and general Marriott rewards guest will also be attracted to the offering as
well. These factors indicate a premium performance compared to competitor hotels in the area.
The `Marriott' name, its worldwide reservation system, and the Marriott Rewards frequent guest stay
program will help to drive a premium occupancy and average daily rate in both the commercial and
leisure demand segments in the Iowa City hotel market.
Recently Marriott already the leader in lodging worldwide acquired Starwood Hotels & Resorts a major
competitor. Combined the two companies create the largest lodging platform worldwide and add to the
compelling value a Marriott branded hotel will provide in the Iowa City marketplace.
10
Hieronymus Square Developers L.L.C.
In conclusion, given the wide acceptance of the Marriott brand platform nationally and the extended stay
hotel business model the proposed Element is projected to be a market leader. We anticipate the hotel to
be a clear first choice for extended stay customers who prefer the look, ambiance, amenities, size and
quality of a modern all Suites hotel. The well-established Marriott platform and its worldwide
reservation system combined with the new and fresh Element brand will support a premium market
share for the planned hotel.
Hieronymus Square Developers L.L.C.
12
Hieronymus Square Developers L.L.C.
Element Hotel Pictures:
Kinseth Hospitality Background
Kinseth Hospitality Companies is a leading Midwest hospitality development & management company
headquartered locally in North Liberty, Iowa. With a large and diverse portfolio of over 70 hotels,
Kinseth offers an approachable, hands-on style of management. Kinseth is a preferred hospitality
company by guests, franchises, hotel owners and lenders. Kinseth is committed to providing clients
with many proven operational systems in all facets of the hospitality business from hotel development to
daily hotel management systems and services.
Staffed in all areas of hotel management and development, Kinseth has an assembled an experienced
team of hospitality professionals who continually support property level managers to benchmark
performance against major competitors, maximize quality, market share and profitability. Kinseth's
extensive background, coupled with a seasoned executive team fosters a culture that is oriented toward
success.
13
Hieronymus Square Developers L.L.C.
Kinseth Hospitality Companies Hotel Development Services
Kinseth Hospitality Companies is a leader in hotel development with a detailed understanding and
successful track record of developing award-winning hospitality assets. From the construction of new
hotels, restaurant and conference center\ to the re -conception and renovation of existing properties,
Kinseth is determined to maximize return and enhance the value of hospitality assets. Kinseth offers a
thorough blend of hotel development services including customize programs based on client needs.
Kinseth services include:
• Turnkey Hotel Development Project Management
• Hotel Brand Selection, Plan Review & Concept Development
• Purchasing Furniture, Fixtures & Equipment
• Installing FF&E
• Hotel Property Acquisition
• Coordination of Licenses, Permits & Code Compliance
• In-house Development
• Hotel Construction Services
• Hotel Renovation Services
Similar projects completed:
• Homewood Suites, West Des Moines, IA
• Homewood Suites, Ankeny, IA
• Residence Inn, Lincoln, NE
• Homewood Suites Downtown Milwaukee, WI (opening summer 2017)
Full List of Hotel's Kinseth Has Developed:
Hotel
Hilton Garden Inn & Rooftop
Home2 Suites by Hilton
Hampton Inn & Suites
Courtyard by Marriott &
Conference Center
Home2 Suites
Hampton Inn & Suites
Hampton Inn & Suites
Hampton Inn & Suites
Homewood Suites
Hilton Garden Inn
Homewood Suites
Hampton Inn & Suites
Home2 Suites
Hilton Garden Inn
City, State
Rooms
Year
Iowa city, IA
143
2017
Minomonee Falls, W I
105
2017
Minooka, IL
93
2016
Bellevue, NE
120
2016
Brookfield, WI
105
2016
Mason City, IA
83
2016
Hudson, WI
83
2016
Kenosha, WI
93
2015
Ankeny, IA
92
2015
Bettendorf,IA
116
2015
West Des Moines, IA
105
2015
West Des Moines, IA
100
2015
Omaha, NE
105
2013
Manhattan, KS
135
2010
14
Hieronymus Square Developers L.L.C.
Hilton Garden Inn
Council Bluffs, IA
153
2009
Sleep Inn
Milwaukee, WI
80
2009
Candlewood Suites
Lacrosse, WI
92
2009
Marriott Residence Inn
Lincoln, NE
93
2008
Hampton Inn & Suites
Lincoln, NE
83
2008
Hampton Inn & Suites
Grafton, WI
83
2008
Country Inn & Suites
St Charles, MO
86
2008
Hampton Inn
Dubuque, IA
97
2008
Marriott Courtyard
Ankeny, IA
118
2007
Hampton Inn & Suites
West Bend, WI
83
2007
Marriott Spring Hill Suites
Cheyenne, WY
92
2007
Hilton Garden Inn
Omaha, NE
118
2006
Candlewood Suites
Kenosha, WI
91
2006
Marriott Courtyard
Columbia, MO
134
2005
Country Inn & Suites
Middleton, WI
84
2004
Hampton Inn
Council, IA
98
2001
Holiday Inn Express
Coralville, IA
84
1998
Holiday Inn
Council Bluffs
187
1996
15
Hieronymus Square Developers L.L.C.
Benefits of This Project to Iowa City:
Affordable Housing
The project will generate up to 7 units for affordable housing or other offsite solution as approved by the
City. This would help advance the City of Iowa City's goal to bring more affordable housing to the
downtown area.
Sustainability
The mixed use tower of the project will look to include 108 rooftop solar modules. On anannual basis
the 108 solar modules would generate an estimated 38,732 kWh and and reduce estimated CO2
emissions by 1,413,599 pounds.
Element Brand
Improving hotel air quality, minimizing pollutants and chemicals. Ample access to natural light. From
sustainable design to eco -friendly practices and programs we've built a smarter, better place to stay.
Element Hotels has been designed to comply with the mandates for high performance green buildings,
resulting in a cleaner, healthier place for both gusts and associates and a more sustainable environment
for earth.
With the brand pillars of Sustain, Conserve, Reduce and Reuse
Sustain
Eco -friendly materials are incorporated in the element design whenever possible: rooms feature carpets
with up to 100% recycle content, wall art is mounted on a base from recycled tires and low VOC
(volatile organic compounds) paints improve indoor air quality
Conserve
Element was built to conserve without compromising performance. Low- flow faucets and fixtures help
save water, compact fluorescent light bulbs use about 75% less energy than standard incandescent bulbs,
and energy-efficient appliances use approximately 30% less energy.
Reduce
Element reduces waste wherever we can: silverware and glassware are available in guestrooms instead
of plastic utensils and paper cups, filtered drinking water eliminates the need for plastic bottles, and all
natural bathroom amenities are stored in a dispenser system instead of disposable bottles.
Reuse
Element offers an extensive recycling program — bins are located in every guestroom and common areas
of the hotel, including the lobby and motion fitness center
"Element Brand Sustainability Certification program requirement"
16
Hieronymus Square Developers L.L.C.
Additioanlly as part of the element brand requirement an operational sustainability certification program
will be selected for the hotel and approved by the brand/Marriott for this location. Example of possible
program: www.greenseal.org
Increase tax base to Iowa City
The project will allow a portion of the vacant ground at the comer of Burlington and Clinton to be
developed with a diverse mixed use complex that will produce significant assessed value. We expect the
facility to generate assessed value more than $22,000,000.
Hotel/motel tax generated
The proposed project is a rare sizeable full service hotel project for the area. With 94 rooms and planned
amenities the project will generate significant hotel/motel taxes. The hotel is expected to generate
hotel/motel tax more than $3.8 million over the course of 20 years.
Creation of jobs in downtown area
In addition to significant construction jobs the project will generate more than 90 new long-term jobs in
downtown area. Many of these employees will also choose to live in or around downtown.
Hotel
Office/Retail
Total
Positive Economic Impact
Non -Exempt Employees Salaried Managers
40 3
50 4
90 7
The complex will generate significant traffic and spending in downtown Iowa City. The hotel portion of
the facility will attract approximately 23,000 rooms rented annually. Translating to 34,500 guests
annually who in turn will have a significant positive economic impact on downtown spending over
$3,000,000 incrementally annually downtown.
Taken from Pinnacle Advisors Categorizing Hotel Impact on Communities:
*Direct Impact - Direct impact includes all projected revenues that will be generated from consumers at
the new hotel. This will include all room's revenues, food and beverage revenues from restaurants and
banqueting, as well as other potential revenue sources such as spa or parking. Direct impact also
includes total payroll paid out to employees hired at the hotel as well as all payroll paid out to temporary
construction workers who construct the hotel.
*Fiscal Impact - Fiscal impact refers to all federal, state, and local taxes that will be collected from the
development and operations of the new hotel. Taxes include all sales taxes collected in association with
the hotel -generated revenues, as well as all payroll related taxes collected from full-time hotel
employees and temporary construction workers. Local governments will also collect new property taxes
17
Hieronymus Square Developers L.L.C.
from the operation of the hotel. Many local governments will also collect revenues through lodging
taxes.
*Indirect Impact - In addition to local governments and hotel owners/employees, contractors and
suppliers to a newly developed hotel will also benefit. Indirect impact includes all jobs and income
generated by businesses that supply goods and services to the hotel. Examples of businesses that will
indirectly benefit from the development of a hotel include suppliers of rooms related goods
(housekeeping supplies, room amenities, etc.), telecommunication vendors (internet, cable, etc.), utility
companies, food and beverage suppliers, and other hotel related vendors.
*Induced Impact - Induced impact refers to economic effects generated when employees (full-time and
temporary) and suppliers re -spend their wages on local consumer purchases. For example, an employee
may purchase gas for their car on their way home from work.
The Hieronymus square will have many synergies with the surrounding area including the outdoor flex
space and the University of Iowa School of Music for the many activities, events and shows that will
regularly be held. From new premiere, commercial and office space contributing to the thriving
downtown scene to the extended stay segment of people staying 5-30+ night in the Element hotel rooms
make this a new high energy comer in Iowa City.
Fair share - Lodging Market Extended Stay lodging brands
There are various high quality extended stay branded hotels in the Iowa City/Coralville region but there
are not any in downtown Iowa City where there is significant demand. This project will provide a
great added option while also providing Iowa City a big step in gaining a quality lodging product that
facilitates people staying 5+ nights or more in the downtown.
Hieronymus Square Developers L.L.C.
Necessary Financial Assistance Mixed Use Tower:
All costs, projected revenues and expenses have been provided to the National
Development Council for review and analysis on this $20,273,940 mixed use project. It
has been concluded that the financing gap for the mixed-use facility/parking at
$3,800,000. It is requested that TIF financing be provided by the City to help finance the
complex.
The following table lists the sources and uses of funds for this project based on the independent gap
analysis:
Sources and Uses of Funds
Mixed Use Tower
Sources
Bank Loan
Equity
City Gap Financing
Total
Uses
Building Construction, Design, Underground
Parking
Land
Developer Overhead & Contingency
Project Interest, Ln Fees, Soft Costs
TIF Rebate Financing Costs
Total
$11,140,316
$5,333,624
$3,800,000
$20,273,940
$15,015,000
$2,500,000
$800,000
$950,000
$1,008,940
$20,273,940
19
Hieronymus Square Developers L.L.C.
Necessary Financial Assistance Hotel:
All costs, projected revenues and expenses have been provided to the National Development Council for
review and analysis on this $20,479,836 hotel project. It has been concluded that the financing gap for
the hotel at $4,200,000. It is requested that TIF financing be provided by the City to help finance the
complex.
The following table lists the sources and uses of funds for this project based on the independent gap
analysis:
Sources and Uses of Funds
Hotel
Sources
Bank Loan $11,310,831
Equity $4,969,005
City Gap Financing $4,200,000
Total
Uses
Building Construction, Design
Land
Furniture, Fixture, and Equip
Opening Costs; working capital, training,
marketing
Construction interest & Loan Fees
Developer Overhead
Professional Services & Closing Costs
TIF Rebate Financing Costs
Total
$20,479,836
$12,639,125
$2,500,000
$1,850,000
$896,705
$550,000
$800,000
$75,000
$1,169,006
$20,479,836
M
MEMORANDUM
Date: July 14, 2017
To: Wendy Ford, Economic Development Coordinator
From: Karen Garritson, Director, National Development Council
CC: Geoff Fruin, City Manager; Iowa City City Council
RE: Hieronymus Square
At your request, NDC has reviewed the materials submitted by Ben Kinseth and Kevin Digmann on
behalf of Hieronymus Square Developers (hereinafter, "the Developer"). Hieronymus Square
Developers is owned by Hieronymi Partners (Hieronymus Family) (25%), Kinseth Hospitality Companies
(15%) and Hodge Investment Group (60%). This request was made to evaluate the Developer's
application for City financial assistance for the development of the project described below. Pending
Council approval, negotiated total assistance to the $40.75M project is $8M.
Project Description
The project consists of two distinct components. For purposes of this memo, they are treated as a
single project since both components will utilize the 61 spaces of underground parking being created
for the overall project as well as the common entrance vestibule, and neither component can be
successfully developed on its own.
Component 1: The Element Hotel
Hieronymus
May 17, 2017
Page 2
The Element Hotel is a lifestyle extended -stay brand that will be located at the intersection of
Burlington and Clinton Streets in downtown Iowa City. The long term owner of the hotel will be ES
Hotel, LLC which will consist of the same partners, in the same percentages as Hieronymus Square
Developers, the development entity.
The $19.3M, seven -story, 93 -room hotel will be proximate to the University of Iowa campus and
adjacent to the 143 -room Hilton Garden Inn currently under construction. Unlike the Hilton Garden, it
will cater to extended stay guests for which there is a distinct market. The proposed hotel will include:
• Lower Level — Parking with 61 spaces to be shared with Component 2. Planned spaces will
provide parking for hotel employees as well as the retail and residential tenants of
Component 2. The parking requirement for these functions is 45 spaces.
• Level 1—Entrance vestibule off Clinton Street (also shared with Component 2), hotel
reception, lounge, breakfast seating, 1,100SF meeting room, sundry, and laundry
• Floor 2—Guest rooms, fitness center, indoor pool, and patio
• Floors 3-7 - Guest rooms
The hotel's main entrance will be located on the front of the building along Clinton Street and will have
a curb cutout for drop offs. An existing City parking garage will provide parking for the hotel guests. An
alleyway currently runs between the hotel building and the parking garage. A skywalk will be built over
the alley from the parking garage to the second floor of the hotel that will lead to guest rooms, the
outdoor pool, and fitness center and the elevators to access the hotel lobby. The Element Hotel and
the Hilton Garden Inn under construction will not share amenities or be physically connected.
The guest room matrix provided by the developer for the Element Hotel appears below, indicating a
total of 92 rooms. The market study conducted by Patek Hospitality Consultants supported a total of
94 rooms before specific room type counts were refined.
Guest Room Matrix— Proposed Dement Hotel
Room Type
Number of Rooms
PercentofTotal_ _
Studio King
2
2%
Studio Double Queen
30
33%
Standard & Communal King
40
43%
One -Bedroom
20
22%
Total
92
100.0%
Source:
Kinseth Hospitality Companies
All room types except four of the Communal Kings will contain fully equipped kitchens and ample
seating; those four will share a kitchen and living room area and can be rented individually to groups.
The Standard King guest rooms will contain compact full kitchen facilities. All guest rooms will contain
energy efficient appliances including a two -burner cooktop, refrigerator, dishwasher, and microwave
plus utensils. Spa -inspired bathrooms feature an oversized rain shower, hand-held wand, and a
Hieronymus
May 17, 2017
Page 3
dispenser system for shampoo and body wash. All rooms will offer the Heavenly® Bed with lofty duvets
and pillows, oversized closets, 32" flat screen HDTV, DVD player, and movies on demand. Flexible
workspace includes an oversized desk, ergonomic chair, and easy access to power and data
connections, complementary Internet, and printer access. Other amenities include hairdryer,
iron/ironing board, alarm clock/radio, and telephone with voice mail.
Element Hotels is a brand within the parent company of Starwood Hotels, which was acquired by
Marriott International in 2016. As mentioned earlier, Element Hotels are a lifestyle extended -stay
hotel concept with an environmentally friendly and sustainable design from its products, services, to its
programs and physical spaces. According to Market Demand Study completed by Patek Hospitality
Consultants, the brand concept is all about sustain, conserve, reduce, and reuse and as such, it is the
first major hotel brand to mandate that all properties pursue sustainable certifications.
Facilities and amenities to be offered at the hotel include:
• Rise: Breakfast bar serving complimentary healthy breakfasts
• Relax: evening reception four nights per week and a salon bar cart serving wine, beer, and soft
drinks
• Restore: Gourmet grab & go pantry open 24/7, patio grill, indoor pool, spacious fitness center,
self-service laundry open 24/7, laundry service and dry cleaning
• Resource: Business center and meeting space of approximately 1,100 square feet.
As part of the Element's environmentally friendly concept, bikes are available to borrow and this is a
complementary offering. The hotel will offer shuttle van service by appointment only. Valet parking
will be offered or guests can self -park in the City's adjacent parking garage that will be connected to
the hotel on the second floor. Parking rates currently charged at the Sheraton Hotel are $14.00 per day
for self -park and $20.00 per day for valet parking. These are the same rates that the Hilton Garden Inn
will charge when it opens later in 2017. When the Element Hotel opens in first quarter 2019, parking
rates will be the same as the Hilton Garden Inn's rates at that time.
Component 2 — Mixed -Use
The proposed Element Hotel will be connected with the mixed-use development planned for the hard
corner of Burlington and Clinton streets, a project that is also being developed by Hieronymus Square
Developers. It will be owned long term by a newly formed entity, HS314 LLC, which consists of the
same partner make-up and percentages as Hieronymus Square Developers. Both the Element Hotel
and the mixed-use project will be constructed at the same time.
Plans call for a vestibule on the ground level that people will enter from Clinton Street that will lead to
either the hotel or the mix -use building.
• Lower Level —61 parking spaces to be shared between the Element Hotel Employees,
residential and commercial tenants. The parking requirement for these functions is 45 spaces
Hieronymus
May 17, 2017
Page 4
• Level 1— Common vestibule entrance and 10,000 square feet of retail space
• Level 2 - 6,100 square feet of office space
• Levels 3-7-43 residential rental units of one, two, and three -bedrooms. Fifteen percent of the
residential units (41 -bedroom and 3 2 -bedroom) are required to be affordable for 20 years
Residential Unit Mix
Room Type _ Number of Percent of Total
1 Bedroom —Affordable 4 9%
2 Bedroom - Affordable 3 7%
1Bedroom —Market Rate 8 19%
2 Bedroom — Market Rate 9 21%
2 Bdrm Twnhm — Market Rate 13 30%
3Bedroom —Market Rate 6 14%
Tota
Financial Analysis
NDC and City development and planning staff have met with the owner's representatives on multiple
occasions since November 2016 and have exchanged questions and updated information by email
between on-site visits. The Developers have refined the project's development costs and operating
revenues/expenses as city valuation estimates, parking requirements and affordability measures were
clarified, and as third party information, such as the Patek Hospitality Consultants Inc. hotel market
study, were received.
It should be noted that while the projections for the Element align well with the third -party market
study findings, there has been no similar market analysis done for Component 2, the mixed-use portion
of the project. In addition, the Developers have been in discussion with lenders, but they have not
presented letters of interest, preliminary commitments or terms sheets from them at this time. As a
result, the ability of the project to attract senior debt may vary from the current projections.
Component 1- Element Hotel
The Element's latest sources and uses estimates project bank financing of $11.3 million at 5% interest
with a 25 -year amortization. Taken together with the negotiated $4.2 million Request for Financial
Assistance, the project's projected sources and uses are as follows:
Hieronymus
May 17, 2017
Page 5
Land Acquisition
$
2,500,000
Construction
$11,632,500
Furnishings
$
1,852,309
Contingency (3.8% contractor & owner)
$
731,625
Architecture/Engineering/Tech Svcs
$
625,000
Project Interest, Ln Fees, Soft Costs
$
638,000
Marketing, Opening, Franchise Fee
$
431,396
Reserves/Working Capital
$
100,000
Developer Overhead & Profit
$
800,000
TIF Rebate Financing Costs
$
1.169.006
Total Project Costs
$20,479,836
Bank Loan $11,310,831
City Financial Assistance* $ 4,200,000
Required from Developer $ 4.969,005
Total Sources $20,479,836
* includes $3,030,994 in project gap ($300K at completion) plus cost of financing
For project costs covered by City assistance, $300,000 will be provided to the project at construction
completion/certificate of occupancy. The developer will take out a loan for the balance to be paid back
over a period of years using annual TIF rebates. The principal of $2,730,994 plus interest totals
$3,900,000. Based on valuation and property tax estimates, the project would generate annual
property tax sufficient to repay the loan with about 13 years of rebates. The city would then be able to
recoup their initial $300,000 investment with taxes paid and not rebated in about year 14.
In total, the combination of City financial assistance is as follows:
Rebated TIF $2,730,994
Interest on TIF eligible exp. $1,169,006
TIF Advance $ 300.000
Total City financial assistance $4,200,000
The developer has provided the following documentation to support their projections and request for
gap financing:
• A proforma statement of operating revenue and expenses
Conceptual floor plans for the project's 7 levels produced by Neumann Monson Architects
A Market Demand Study prepared by a third party (Patek Hospitality Consultants) verifying the
demand for extended stay hotel rooms at this location
Hieronymus
May 17, 2017
Page 6
Due diligence materials not yet provided by the developer and to be followed-up on as the project
progresses include:
• Contractor estimates supporting the development budget
• Purchase agreement supporting acquisition cost
• An appraisal identifying the project's as -complete fair market value (FMV) that will be relied on
by the senior lender to determine the maximum loan that will be offered to the project
• A financing letter of interest or term sheet identifying a maximum loan amount, rate, term and
underwriting criteria, pending completion of the appraisal
• Documentation of the developer's equity stake in the project
• Organizational documents for the ownership structure
Assuming the appraisal, when completed, supports the amount of debt the developer is projecting,
NDC's analysis of the developer's current projections suggests that total City Financial Assistance
including interest of $4,200,000 will be required to bring the project's sources in line with projected
uses. This assessment is based on:
1) The developer's assumption of the amount of bank debt the deal will be able to attract appears
nearly maximized given the favorable terms of 5% for 25 years and the stiffer underwriting criteria
applied to hotels as somewhat more risky ventures: 70% loan to value and 1.35 Debt Coverage with
a cap rate of 7%. Actual loan to value ratio on developer's projected debt is 69%.
2) The developer's equity contribution of $4.97 M yields a 7.47% internal rate of return (IRR) given the
projected after-tax cash flow and net sales proceeds of the project if held for 25 -years (the term of
the senior debt). This is below what might typically be expected given the nature of the hotel
industry, but is accepted by NDC as within the norm for purposes of its analysis due to the strength
of the Iowa City market in general and this location in particular — as confirmed by the Patek study.
Should the developer fee be fully earned (not needed for additional contingency), and distributed
to owners, the IRR increases to just over 8.08%.
Conclusion: This component of the project, as presented, demonstrates a need for $4.2M in City
Financial Assistance. If the terms of the senior debt and contractor estimates are substantially
different from these projections, NDC will update this evaluation as requested by the City.
Component 2 - Mixed -Use
The latest sources and uses for the Mixed -Use component estimates project bank financing of $11.14
million at 4.75% interest with a 25 -year amortization. Taken together with the negotiated $3.8 million
Request for Financial Assistance, the project's projected sources and uses are as follows:
Hieronymus
May 17, 2017
Page 7
Land Acquisition
$
2,500,000
Site Improvements
$
505,000
Building Construction
$11,500,000
Parking Construction
$
2,500,000
Contingency/Dev. Fee (4%)
$
800,000
Prof Fees -Arch/Eng/Environ/survey
$
510,000
Project Interest, Ln Fees, Soft Costs
$
825,000
Reserves/Working Capital
$
125,000
TIF Rebate Financing Costs
$
1,008,940
Total Project Costs
$20,273,940
Bank Loan $11,140,316
City Financial Assistance* $ 3,800,000
Required from Developer $ 5,333,624
Total Sources
$20,273,940
* includes $2,791,060 in project gap ($300K at completion) plus cost of financing
For project costs covered by City assistance, $300,000 will be provided to the project at construction
completion/certificate of occupancy. The developer will take out a loan for the balance to be paid back
over a period of years using annual TIF rebates. The principal of $2,491,060 plus interest totals
$3,500,000. Based on valuation and property tax estimates, the project would generate annual
property tax sufficient to repay the loan with about 13 years of rebates, with sufficient additional
revenue for the city to recoup their initial $300,000 investment in the same year.
In total, the combination of City financial assistance is as follows:
Rebated TIF $2,491,060
Interest on TIF eligible exp. $1,008,940
TIF Advance $ 300,000
Total City financial assistance $3,800,000
The developer has provided the following documentation to support their projections and request for
gap financing:
• A proforma statement of operating revenue and expenses
• Conceptual floor plans for the project's 7 levels produced by Neumann Monson Architects
Hieronymus
May 17, 2017
Page 8
Due diligence materials not yet provided by the developer and to be followed-up on as the project
progresses include:
• Contractor estimates supporting the development budget
• Purchase Agreement supporting acquisition cost
• An appraisal identifying the project's as -complete fair market value (FMV) that will be relied on
by the senior lender to determine the maximum loan that will be offered to the project
• A Market Study indicating the demand, market rents, absorption rate and other factors
confirming the project's operating proforma and/or potential need for lease up and other
reserves/guarantees
• A financing letter of interest or term sheet identifying a maximum loan amount, rate, term and
underwriting criteria, pending completion of the appraisal
• Documentation of the developer's equity stake in the project
• Organizational Documents for the ownership structure
Assuming the appraisal, when completed, supports the amount of debt the developer is projecting,
NDC's analysis of the developer's current projections suggests that total City Financial Assistance
including interest of $3,800,000 will be required to bring the project's sources in line with projected
uses. This assessment is based on:
1) The developer's assumption regarding the amount of bank debt the mixed-use component can
attract is nearly maximized with an actual debt coverage ratio of 1.23 and loan to value of 77%,
given favorable terms of 4.5% for 25 years. However, it should be noted that a market study for
this component of the project has not yet been done, so variations in rents, vacancies and
expenses may alter this assessment.
2) The developer's equity contribution of $5.33M yields a 6.42% internal rate of return (IRR) given the
projected after-tax cash flow and net sales proceeds of the project if held for 25 -years (the time
required to retire the senior debt). This is below what might be expected in riskier markets, but
accepted by NDC as within the norm for purposes of its analysis due to the strength of the Iowa
City market in general and this location in particular. Should the developer fee be fully earned (not
needed for contingency), and distributed to owners, this rate of return increases slightly to 6.89%.
Conclusion: This component of the project, as presented, demonstrates a need for $3.81M in City
Financial Assistance. If the terms of the senior debt and contractor estimates are substantially
different from these projections, NDC will update this evaluation as requested by the City.
Hieronymus
May 17, 2017
Page 9
Combined Sources and Uses for Components 1 and 2
Land Acquisition
$
5,000,000
Site Improvements
$
505,000
Building Construction
$23,132,500
Parking Construction
$
2,500,000
Furnishings
$
1,852,309
Contingency (3.8% contractor & owner)
$
731,625
Architecture/Engineering/Tech Svcs
$
1,135,000
Project Interest, Ln Fees, Soft Costs
$
1,463,000
Marketing, Opening, Franchise Fee
$
431,396
Reserves/Working Capital
$
225,000
Developer Fee/Add. Contingency
$
1,600,000
TIF Rebate Financing Costs
$
2,177,946
Total Project Costs
$40,753,776
Bank Loan $22,451,147
City Financial Assistance* $ 8,000,000
Required from Developer $10,302,629
Total Sources $40,753,776
* includes $5,822,054 in project gap ($600K at completion) plus cost of financing
Conclusion
Overall, $8M City Financial assistance to the project appears warranted, assuming the appraisals, when
completed, support the amount of debt proposed for the project. City Financial Assistance of
$8,000,000 (including interest) will be required to bring the project's sources in line with projected
uses. This amount is deemed appropriate based on:
1. The relatively modest returns projected to the developers/owners
2. More than 25% of the overall capital required for the project is developer/owner equity. This
proportion of equity is in keeping with typical market rate projects
3. The elevation and site constraints adding to the cost of underground parking at this particular
site: It is estimated that the total development cost per space on this project (including land,
site work, soft costs etc.) is about $42,000/space. This is about $16,000/space more than City
spaces being developed on Harrison Street for $26,000/space. As such the cost of providing 61
underground parking spaces for this project is about $976,000 higher than would ordinarily be
expected.
I
Exhibit A — Development Property Legal Description
Exhibit B — Minimum Improvements and Uses
Exhibit C — Certificate of Completion
Exhibit D — Memorandum of Agreement for Private Redevelopment
Exhibit E —Opinion of Counsel
Exhibit F — Minimum Assessment Agreement
Exhibit G — Temporary Construction Easement
E H — Concept Plan
Exhibit I empZaryUse of Right -of -Way Agreeme/ousing
Exhibit J — S le Deed Restriction
Exhibit K — Wag eft Affidavit
Exhibit L — Iowa Riverfront Crossing Afforduirement Administrative
Rules
`A
THIS AGREEMENT FOR PRIVATE DEVELOPMENT (hereinafter called
"Agreement" or "Development Agreement"), is made on or as of the day of
September, 2017, by and among the CITY OF IOWA CITY, IOWA, a municipality (hereinafter
called "City"), established pursuant to the Code of Iowa of the State of Iowa and acting under the
autho 'zation of Chapters 15A and 403 of the Code of Iowa, 2017, as amended (hereinafter
called rbanRenewal Act"); HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability
partnershi (hereinafter "Owner"); HIERONYMUS SQUARE DEVELOPERS, L. Iowa
limited liabi ' company, IOWA CITY ES HOTEL, L.L.C., an Iowa limited ility company,
and HS314, L. .C., an Iowa limited liability company (hereinafter co11 ely "Developers").
Owner and DeverVers all have an address at 711 South Gilbert Street, a City, Iowa 52240.
WITNESSETH:
WHEREAS, incrance of the objectives of e Urban Renewal Act, the City has
undertaken a program for a clearance and recons ction or rehabilitation of an economic
development area in the City IRd, in this /connectiois engaged in carrying out urban renewal
project activities in an area kno n as thersity Project I ("Urban Renewa] Area" or
"Area"), which area is described in he CiProject I Plan ("Plan") approved for such
area by Resolution No. 2157 on Octo er 2hich Plan has been amended from time to
time; and
WHEREAS, a copy of the reg 'ng Urban Renewal Plan, as amended, has been
recorded among the land records in t office f the Recorder of Johnson County, Iowa; and
WHEREAS, the O/edin
ns certain pr erty in the City ("Development Property")
upon which it desires, in pawith Develope , to construct improvements in the form of
a hotel and a mixed commss A office/reside tial multi -story building, and agrees that
such improvements be opercordance with this cement; and
WHEREAS, the ity believes that the development the real property, located in the
foregoing Urban Rene a1 Area referred to as the Developme t Property and as described in
Exhibit A attached heyeto and made a part hereof, pursuant to this greement and the fulfillment
generally of this A ement, are in the vital and best interests of th City and in the
with the
public purposes aDfi provisions of Chapters ISA and 403, and other pplicable state and local
laws and requireyfients under which the foregoing project has been dertaken and is being
assisted.
NOW, HEREFORE, in consideration of the premises and the mutual obligations of the
parties hereo, each of them does hereby covenant and agree with the other as fo lows.
ARTICLE I. DEFINITIONS
Sdction 1.1. Definitions. In addition to other definitions set forth in this Agreement, all
capitalized terms used and not otherwise defined herein shall have the following meanings unless
a different meaning clearly appears from the context:
K
\ Aereement means this Agreement and all exhibits and appendices hereto, as the a may
be ftpm time to time modified, amended or supplemented.
Ash ssor's Minimum Actual Value means the agreed minimum actua alue after taking
into consi ation any factors such as "roll backs" which would reduce thetaxable value of the
Minimum Ina ovements and the Development Property for calculatio and assessment of real
property taxes,set forth in the Minimum Assessment Agreement an Section 5.7.
Certificate of om letion means a certification in the
hereto as Exhibit C nd hereby made a part of this Agr(
Developers pursuant to 4etion 4.4 of this Agreement.
City means the City ofgowa City, Iowa, or any
of the certificate attached
, provided to Owner and
to its functions.
City -University Proiect I Tax Increment Revenue Fund means the special fund of the City
created under the authority of Se ton 403.19(2) o the Code, as amended, and the Ordinance,
which fund was created in order to Dav the nrincip of and interest on loans monies advanced to
or indebtedness, whether funded, reN1
obligations issued under the authority c
City to finance or refinance in whole
Renewal Plan for the Urban Renewal Ar
Code means the Code of Iowa, 201,%/, as
umed or otherwise, including bonds or other
n 403.9 or 403.12 of the Code, incurred by the
part projects undertaken pursuant to the Urban
Construction Plans means th plans, specific ions, drawings and related documents
reflecting the construction work to a performed by Ow r and Developers on the Development
Property with respect to the cons ction of the Minimum provements; the Construction Plans
shall be as detailed as the pl specifications, drawings d related documents which are
submitted to the building inspec r c f the City as required by ap icable City codes.
Commencement Date mans the date of this Agreement.
County means the C96mty of Johnson, Iowa.
Developers me HIERONYMUS SQUARE DEVELOPERS, L.L.C., an Iowa limited
liability company, IO A CITY ES HOTEL, L.L.C., and Iowa limited liab 'ty company, and
HS314, L.L.C., an Io a limited liability company, all having offices at 711 So\Agreement.
,
Iowa City, Iowa 522 0.
Develo me t Pro ertmeans the property described in Exhibit A.
Economi Develo ment Grants are as described in Article VIII.
Event of Default means any of the events described in Section 10.1 of thi
2
Morteaee means any Mortgage granted to secure any loan made purqx6t to either a
,age commitment obtained by Owner and Developers from a comm*61 lender or other
1 institution to fund any portion of the construction costs and * ial operating capital
em m is of the Minimum. Improvements, or all such Mortgages as ppropriate.
Hieronvihus S care TIF Account means a separate accgidnt within the City -University
Project I Urban enewal Tax Increment Revenue Fund o2fie City in which there shall be
deposited Tax Incre ents received by the City with respect the Minimum Improvements.
Minimum hn rov ents means the construction f a hotel, and a mixed commercial/Class
A Office/residential multi tory building as fully d ed in Exhibit B, attached and incorporated
herein by this reference.
Mortgage means any mo age ors ty agreement in which Owner and Developers has
granted a mortgage or others ty int st in the Development Property, or any portion or
parcel thereof, or any improvements n ' cted thereon.
Net Proceeds means any pro paid by an insurer to Owner and Developers under a
policy or policies of insurance r to be provided and maintained by Owner and
Developers, pursuant to Article o this A eement and remaining after deducting all expenses
(including fees and disbursem s f counsel ' curred in the collection of such proceeds.
Ordinance means Ordi an ANo. 01-3991 the City, passed on December 11, 2001, under
which the taxes levied on able property in th Area shall be divided and a portion paid into
the City -University Project Increment Revenue und.
Proiect means d
Development Property,
State means the
Tax Increments
Improvements on the
in the Hieronymus S
Fund under the pro
base value for the T
the Ordinance.
m and operation d�the Minimum Improvements on the
in this Agreement.
of Iowa.
(means the property tax revenues, th respect to the Minimum
'evelopment Property, divided and made a 'lable to the City for deposit
are TIF Account of the City -University Proj t I Tax Increment Revenue
ins of Section 403.19 of the Code, as amend , and the Ordinance. The
Increments shall be January 1 of the year pre ing the effective date of
Terminationj Date means the date of termination of this Agreemel-t as established in
Section 12.11 of Ois Agreement.
Unavoidable Dela s means delays resulting from acts or occurren s outside the
reasonable co4ol of the party claiming the delay including but not limited to korms, floods,
fires, explosiodsor other casualty losses, unusual weather conditions, strikes, boy s, lockouts
5
or other labor disputes, litigation commenced by third parties, or the acts of any federal, state or
local governmental unit (other than the City with respect to the City's obligations).
Urban Renewal Plan means the Urban Renewal Plan approved in respect of the City-
r(ity Project I Urban Renewal Area, described in the preambles hereof.
ARTICLE M CONSTRUCTION AND USES.
Section
(a) The er and Developers' construction on the evelopment Property will
consist of a mixed-use tail/Class Aoffice/ residential structur and a hotel as described more
fully on Exhibit B ("Miri um Improvements"). The Redeve per hereby commits to a project
that includes a minhnum to 1 of $40,753,776 in developme costs, including construction costs,
architectural fees, land costs, arking, opening costs, d eloper overhead, and financing costs.
Owner and Developers agree th t they will cause the mimum Improvements to be constructed
on the Development Property in bs
by the City. Owner and Deve I
Improvements to be constructed shal
Minimum Improvements as detailed i
that through the design process, the f
and the final number of hotel units
Manager may approve such minor
significant changes to the scope or
Minimum Improvements must b
conformance with the l/
r<
Code of Ordinances 14-2G.
mtial confo cc with the Construction Plans approved
;rs agree at the scope and scale of the Minimum
not be s' ificantly less than the scope and scale of the
he C nstruction Plans. The parties hereto acknowledge
is ber of residential dwelling units, the mix thereof,
in deviate slightly from the current plans. The City
iati s upon determining that they do not constitute
,ale of a Minimum Improvements. The design of the
approved by the Form -based Code Committee for
;sings deve pment standards, as set forth in Iowa City
(b) In the event t gat Owner and Developers sir
owned property, includin right-of-way, the Court e
undeveloped portion of/
f and north of the Court Street
Developers shall first btain from the City a temporary
substantially similar the Temporary Construction Easen
Exhibit J and incorpq ated herein by this reference.
to stage construction on any City-
[ Transportation Center, or the
•ansportation Center, Owner and
onstruction easement in a form
Agreement attached hereto as
(c) Pe estrian access routes to the City -owned Court Stre t Transportation Center are
shown at Ramp Levels on the Concept Plan submitted on IS
attached hereto in
Exhibit H. Vell cular access routes to the City -owned Court Street Trans ortation Center are also
contemplated. In the event that the final construction drawings approvedy the City pursuant to
Article II he{ein show pedestrian or vehicular access routes to the Develop ent Property through
the Court Street Transportation Center, Owner and Developers must urchase an access
n /for such uses(s), the cost of said property rights shall be calculat d based upon the
�g formula: $200/square foot times the number of square feet in the a ment area X 10
. Owner and Developers' purchase of said easement rights shall be a co ingency of the
e1
foundation permit for construction of the Minimum Improvements on the Development Property
and must be satisfied prior to issuance thereof.
(d) In the event that the final Construction Plans approved by the City purl to
Article 11 herein show awnings or other intrusions into the right-of-way, Owner and elopers
shall obtain om the City, at no cost, a temporary use of right-of-way agree nt for such
temporary use. he agreement for said easement rights shall take a form subst tially similar to
the Temporary e of Right -of -Way Agreement, attached hereto as Exhibit and incorporated
herein by this refer ce. Said Agreement shall be entered into before a b ' ding permit is issued
for any work in the p osed easement area.
Section 2.2 Affo able Housing Occupancy.
Owner and Developers kknowledge the City's requirer9dint to provide affordable housing
pursuant to Iowa City Code of Ordinarices 14-2G-8, and that because Owner and Developers are
receiving tax increment financink, they are obligated ursuant to the Iowa City Council
Economic Development policy to ase or, sell 15% o the total residential units to income -
qualified residents, as defined in said dinance, and ministered according to Iowa City Code
of Ordinances 14-2G-8 and the adopt Adminis five Rules set forth in Exhibit L hereto,
except as specifically set forth herein.
Based upon an assumption that there w be45 total dwelling units in the Project, Owner
and Developers hereby agree to lease ors 1 even (7) residential dwelling units to income -
eligible households in accordance with th limit tions set forth herein. A minimum of two (2)
units shall be provided within the Mixed se buil ' g described herein. These two units shall be
comprised of one 1 -bedroom unit and o e 2-bedroo unit. These two units shall be administered
as on-site Owner -Occupied or Affor able Rental Ho\nh
, as that term is defined in 14-2G-8.
Owner and Developers understand d acknowledge ttwithstanding the possible sale of the
two on-site units as Owner-Occup/cd Affordable Houthey shall remain responsible for the
continued observance of and co pHance with the aility requirements during the entire
term of affordability provided rein. Owner and Demay further satisfy this affordable
housing occupancy obligatio through the provisiondr 'onal on-site affordable rental or
owner -occupied units or thr gh the payment of a feeu th eof in an amount established by
resolution of the City Cou cil (currently $80,872 per This termination shall be made and
any fee in -lieu paid prio to issuance of any buildinit for onstruction of the Minimum
Improvements. Owner nd Developers acknowledgeall affor able housing units shall be
constructed and pass al inspection contemporaneouth them et rate units, regardless of
whether they are on rte or off-site.
In the even hat the final total number of dwelling units changes thr gh the design review
and constructio plan review process detailed herein, the final number o affordable housing
units required ay change. Income documentation must be maintained by thDeveloper for the
most recent t ee years and presented to the City upon its request.
VA
Said On-site Affordable Housing Units shall be affordable in accordance with the terms
hereof for a period of twenty (20) years from the date an occupancy permit is issued for the
Project ("term of affordability") and it is intended and agreed that the requirements of this
secti with respect to the Affordable Housing Units shall run with the land. The Developer
agrees itself, its successors and assigns that each deed or other conveyancey-f-th-e--Affordable
Housing its shall contain the use restrictions set forth herein and as requir6d by Code Section
14-2G-8. A eed restriction running in favor of the City and in a fo substantially similar to
that shown in 'bit J attached hereto shall be recorded and resta on any deed transferring
title during the to of affordability to those unit or units deed as affordable housing in
satisfaction of this o igation. It is intended and agreed that City and its successors shall be
deemed beneficiaries these use restrictions, both for an in its own right and also for the
purposes of protecting interests of the community other parties, public or private, in
whose favor or for whose efit such use restrictions ve been provided. The City shall have
the right in the event of breach of any affordable housing use restriction during the
applicable 20 year period to ex cise all the rights d remedies, and to maintain any actions or
suits at law or in equity or othe roper procee ngs to enforce the curing of such breach of
affordable housing use restrictions, to which ' or any other beneficiaries of such affordable
housing use restrictions may be entit d, and all be entitled to recover, in addition to its court
costs, a reasonable attorney's fee to be xe y the court, and such recovery shall include court
costs and attorney's fees on appeal, if an Further, the City shall hold all right and authority to
agree to or provide any amendment, dification, waiver, termination or release of the
affordable housing use restriction on b alf f itself and other parties, public or private, which
are beneficiaries thereof (other than evelo r, its successors and assigns). Said affordable
housing use restriction shall survive t e terminat n of this Agreement.
Section 2.3. Construction Plans. Owner and Developers shall cause Construction Plans
to be provided to the City for the inimum Improve nts, which shall be subject to approval by
the City as provided in this Sec on 3.2. The Construc on Plans shall be in conformity with the
Urban Renewal Plan, this A eemem, and all applic le federal, state and local laws and
regulations. The City shall prove the Construction Pl sin writing if: (i) the Construction
Plans conform to the t and conditions of this Agr ent; (ii) the Construction Plans
conform to the terms and onditions of the Urban Renewa Plan; (iii) the Construction Plans
conform to all applicable ederal, State and local laws, ordin ces, rules and regulations, and
City permit requiremen (iv) the Construction Plans are dequate for purposes of this
Agreement to provide f the construction of the Minimum Impr vements; and (v) no Event of
Default under the to s of this Agreement has occurred; provi ed, however, that any such
approval of the Cons ction Plans pursuant to this Section 3.2 shal constitute approval for the
purposes of this Agre ent only and shall not be deemed to constitute approval or waiver by the
City with respect to y building, fire, zoning or other ordinances or re lations of the City, and
shall not be deeme to be sufficient plans to serve as the basis for the issuance of a building
permit if the Cons ction Plans are not as detailed or complete as the pl s otherwise required
for the issuance of building permit.
Approval Of the Construction Plans by the City shall not relieve any oblIgation to comply
with the terms and -provisions of this Agreement, or the provision of applicable fe eral, State and
0
local laws, ordinances and regulations, nor shall approval of the Construction Plans by the City
be deemed to constitute a waiver of any Event of Default.
Approval of Construction Plans hereunder is solely for purposes of this Agreement, and
shall n constitute approval for any other City purpose nor subject the City to any liability for
the Minim Improvements as constructed.
Section 2.. Commencement and Completion of Construction. ject to Unavoidable
Delays, Owner anDevelopers shall cause constru;2019.
e Mini Improvements to be
undertaken and tom eted no later than December 31me t as a result of Unavoidable
Delays shall be added extend this date by a numbeal to the number of days lost as
a result of Unavoidable\bywner
All work with resa Minimum Improvements to be
constructed or provided and Developers n substantial conformity with the
Construction Plans appthe building officamendments thereto as may be
approved by the buildin
Owner and Developers agree at they sha permit designated representatives of the City,
upon reasonable notice (which does of have,
ave o be written), to enter upon the Development
Property during the construction of the Improvements to inspect such construction and
the progress thereof.
Section 2.5. Certificate o
after issuance of an occupancy
Owner and Developers with a
recordable form, in substantially
of Completion shall be a conclu
and conditions of this Agreeme:
construct the Minimum ImprovO.
!om tion. Upon written request of Owner and Developers
rmi for the mimum Improvements, the City will famish
tate of Co letion for the Minimum Improvements in
orm set forth in xhibit C attached hereto. Such Certificate
e determination o atisfactory termination of the covenants
with respect to the o igations of Owner and Developers to
The Certificate of Co pletion may be recorded in the p per office for the recordation of
deeds and other instrumen pertaining to the Development Pro erty at Owner and Developers'
sole expense. If the City all refuse or fail to provide a Certificat of Completion in accordance
with the provisions of is Section 2.5, the City shall, within ty (20) days after written
request by Owner an Developers, provide Owner and Developer with a written statement
indicating in adequat detail in what respects Owner and Developers h ve failed to complete the
Minimum Improv ents in accordance with the provisions of this Agr ment, or are otherwise
in default under terms of this Agreement, and what measures or act are necessary, in the
opinion of the C'ty, for Owner and Developers to take or perform in der to obtain such
Certificate of Co nletion.
ARTICLE III. REPRESENTATIONS AND WARRANTIES.
3.1. Representations and Warranties of the City. The City makes th following
s and warranties:
0
(a) The City is a municipal corporation and political subdivision organized under the
provisions of the Constitution and the laws of the state and has the pgwey to enter into this
Agreement and carry out its obligations hereunder. 77
(b) The execution and delivery of this Agri
transactions contemplated hereby, and the fulfillment of
conditions of this Agreement are not prevented by, limited
a breach of, a terms, conditions or provisions of any?
indebtedness, a Bement or instrument of whatever naturjf
which it is bound, or do they constitute a default undey y
erne a consummation of the
or mpliance with the terms and
n conflict with, nor will result in
ntractual restriction, evidence of
i which the City is now a party or by
of the foregoing.
Section 3.2. Rebresentations and Warranties% f Owner and Developers. The Owner and
Developers make the fol\and
sentations an warranties:
(a) Owner andare comp ies duly organized and validly existing under the
laws of the State of Iowll requis' a power and authority to develop and construct the
Project, to carry on tses as 'now conducted and as presently proposed to be
conducted, and to enter iorm eir obligations under this Agreement.
(b) This Agreement has
the Owner and Developers and, as
is in full force and effect and is
Developers enforceable in accord
bankruptcy, insolvency, reorgan'
generally. Owner and Develop s
Exhibit E, to be signed conc en
City.
)e "duly and validly authorized, executed and delivered by
due authorization, execution and delivery by the City,
v\this
legally binding instrument of the Owner and
ce terms, except as the same may be limited by
itionr laws relating to or affecting creditors' rights
shalan Opinion of Counsel in the form attached as
ly wAgreement and at other times requested by the
(c) The executio and delivery of th' Agreement, the consummation of the
transactions contemplated hereby, and the fulfilhn nt of or compliance with the terms and
conditions of this Agree nt are not prevented by, lim ed by, in conflict with, nor will not result
in a violation or breach f, the terms, conditions or pr visions of the articles of incorporation,
bylaws, or any applica a governing document of Owne or Developers, or of any contractual
restriction, evidence o indebtedness, agreement or ins ent of whatever nature to which the
Owner or Developer are now a party or by which they or eir property is bound, nor do they
constitute a default der any of the foregoing.
(d) /Dvelopers
are no actions, suits or proceedings pending ori threatened against or affecting
Owner or Ders in any court or before any arbitrator or before or by any governmental
body in whie is a reasonable possibility of an adverse decision which could materially
adversely affbusiness (present or prospective), financial position or results of operations
of Owner or or which in any manner raises any questions affecting the validity of the
Agreement Owner or Developers' ability to perform their opligations under this
Agreement.,,
10
(e) Neither Owner nor Developers have received any notice from any local, state or
federal official that the activities of Owner or Developers with respect to the Development
Property may or will be in violation of any environmental law or regulation (other than some on-
site environmental contamination which the Owner and Developer are working wi aim
Intertec to address and remediate or such other notices, if any, of which the City previously
been noti ed in writing). Neither Owner nor Developers are currently aw of any state or
federal clai filed or planned to be filed by any party relating to any viol n of any local, state
or federal en ' onmental law, regulation or review procedure appli le to the Development
Property, and ither Owner nor Developers are currently aware any violation of any local,
state or federal vironmental law, regulation or review pn .ed which would give any person
a valid claim and any state or federal environmental statute ith respect thereto.
(f) Own and Developers will cause the Mi mum Improvements to be constructed
in substantial accordkice with the terms of this A ement, the Urban Renewal Plan and all
local, state and federal ws and regulations.
(g) Owner and evelopers will use the)f best efforts to obtain, or cause to be obtained,
in a timely manner, all rekuired permits, lic9fises and approvals, and will meet, in a timely
manner, all requirements ofVI applicable 196al, state, and federal laws and regulations which
must be obtained or met befor the Minimupi Improvements may be lawfully constructed.
(h) Owner and Devel
Project in an amount sufficient,
Minimum Improvements in sub
this Agreement.
(i) Owner and Dev
traffic, parking, trash removal
construction and operation of
a written construction managi
and Developers will coordin
Public Works Director. O
temporary construction ea
i e firm commitments for permanent financing for the
with equity commitments, to successfully complete the
accordance with the Construction Plans contemplated in
o rs wi cooperate fully with the City in resolution of any
r ublic sa ty problems which may arise in connection with the
e Minimum provements. Owner and Developers shall submit
hent plan to a Director of Public Works for approval. Owner
staging for contion of the Minimum Improvements with the
r and Develoipxei
shall obtain from the City any necessary
Lt s in accordanh Section 2.1 herein.
0) OwnerDevelopers expect that, blRing Unavoidable Delays, the Minimum
Improvements and Usan outlined in Exhibit B will be c pleted by December 31, 2019.
(k) Owner d Developers would not undertake eir obligations under this Agreement
without the Econ o is Development Grants contemplated b Section 8.1 hereof (the 'Economic
Development Gr s l; to Owner and Developers pursuant to this Agreement.
(1) N ther Owner, nor Developers, nor any person or entity with an ownership
interest of mo a than 25% of Owner or Developers have been judicated guilty or liable in
any judicial administrative proceeding of committing a repeated r willful violation of the
Iowa WaQ Payment Collection law, the Iowa Minimum Wage Ac the Federal Fair Labor
11
Standards Act or any comparable state statute or local ordinance, which governs the payment of
wages in the last 5 years.
ARTICLE IV. INSURANCE.
4.1. Insurance Requirements
(a) on completion of construction of the Minim Improvements and at all times
prior to the Term ation Date, Owner and Developers shall aintain, or cause to be maintained,
at their cost and exense (and from time to time at the r nest of the City shall furnish proof of
the payment of premi ms on) insurance as follows:
(i) Insur ce against loss and/or age to the Minimum Improvements under a
policy or policies coverin such risks as are dinarily insured against by similar businesses,
including (without limitation the generality o the foregoing) fire, extended coverage, vandalism
and malicious mischief, explo'on, water d age demolition cost debris removal and collapse
in an amount not less than the 1
but any such policy may have a
insurance shall be so written that
coverage required by the preceding
without the prior consent thereto
value" shall mean the actual r
a e replacement value of the Minimum Improvements,
ible amount of not more than $50,000. No policy of
proceeds thereof will produce less than the minimum
ence, by reason of co-insurance provisions or otherwise,
ngby the City. The term "full insurable replacement
__,It
cost of the Minimum Improvements (excluding
foundation and excavation co/tsand cos of underground flues, pipes, drains and other
uninsurable items) and equip ent, and shall determined from time to time at the request of
the City, but not more freVently than once ery three years, by an insurance consultant or
insurer selected and paid fo by Owner and Develo ers and approved by the City; and
(ii) Com rehensive general public liab' ity insurance, including personal injury
liability for injuries t persons and/or property, incl ing any injuries resulting from the
operation of automob' es or other motorized vehicles on o about the Development Property, in
the minimum amoun for each occurrence and for each year o $1,000,000.
(iii) uch other insurance, including worker's co ensation insurance respecting
all employees o Owner and Developers, in such amount as i customarily carried by like
organizations a aged in like activities of comparable size and liab ity exposure; provided that
Owner and De elopers may be self-insured with respect to all or
y part of its liability for
worker's coma nsation.
(b) All insurance required by this Article IV to be provided pri to the Termination
Date shall a taken out and maintained in responsible insurance companies ected by Owner
and Devel ers, which are authorized under the laws of the State to assume th 'sks covered
thereby. wner and Developers will deposit annually with the City copies of policies evidencing
such insu cc or a certificate or certificates or binders of the respective insurers stating that such
insuranc is in force and effect. Unless otherwise provided in this Article IV, each policy shall
contain a provision that the insurer shall not cancel or modify it without giving written notice to
12
Owner and Developers and the City at least thirty (30) days before the cancellation or
modification becomes effective. Not less than fifteen (15) days prior to the expiration of any
policy, the party responsible for obtaining the same shall furnish the City evidence satisfactory to
the City Y at the policy has been renewed or replaced by another policy conforming to the
provisions 6f this Article IV, or that there is no necessity therefor under thgterms hereof.
(c) ner and Developers agree to notify the City
exceeding $25,00 'n amount to, or destruction of, the Minit
thereof resulting fro fire or other casualty. Net Proceeds o
directly to Owner oreIC and Owner and Developer
and restore the Minim hnprovements to substantially
value as they existed prio to the event causing such d a;
accomplish such repair, recon truction and restoration, evel(
any insurance relating to such damage received by wner
reimbursement of the costs thereo
(d) Owner and Developer)
of the Minimum Improvements, or of.
City, Owner and Developers, whether
Developers for such purposes are suff
ARTICLE V. COVENANTS
Section 5.1. Maintenance of
keep the Development Property, is
good repair and working order, ordi
all necessary repairs, replacements,
imme 'ately in the case of damage
nurylinprovements or any portion
f,6ny such insurance shall be paid
will forthwith repair, reconstruct,
same or animproved condition or
;e and, to the extent necessary to
)per will apply the Net Proceeds of
or Developers to the payment or
hall corn ete the repair, reconstruction, and restoration
1 improvements agreed upon by and between the
oft Net Proceeds of insurance received by Owner or
+n
rt. O\addi
d Developers will maintain, preserve and
ing bumited to the Minimum Improvements, in
wear xcepted, and from time to time will make
mals aons.
Section 5.2. Maintenance of Records. Owner andevelopers will keep at all times proper
books of record and account in w ich full, true and come t entries will be made of all dealings
and transactions of or in relari to the business and a airs of Owner and Developers in
accordance with generally acc ted accounting principles, nsistently applied throughout the
period involved, and OwnInce
d Developers will provide rea nable protection against loss or
damage to such books of reand account.
Section 5.3. Com 1with Laws. Owner and Develope will comply with all laws,
rules and regulations rela 'ng to the Minimum Improvements.
Section 5.4. N n -Discrimination. In operating the Minimum hn ovements, Owner and
Devjsucpplicants,
l n discriminate against any applicant or tenant because f age, color, creed,
disar identity, marital status, national origin, race, religion, sex, ual orientation,
presce of dependents or public assistance source of income. Develop shall ensure
that plicants, employees, and tenants are considered and are treated without regard to
their creed, disability, gender identity, marital status, national origin, race, religion,
sex, tation, presence or absence of dependents or public assistance source of income.
13
This Section shall not be construed to prohibit utilizing income as a qualification for occupancy
of the Affordable Housing units provided by Owner and Developers pursuant to Section 2.2
"Affordable Housing Occupancy" above.
Section 5.5. Available Information. Upon request, Owner and Developers shall promptly
WCity with copies of information requested by the City tha are related to this
so that the City can determine compliance with the Agreement../
Sectio 5.6. Annual Certification. To assist the City in monito ng and performance of
Owner and velopers hereunder, a duly -authorized officer of O er and Developers shall
annually certify the City: (a) proof that all ad valorem taxes o the Development Property
and Minimum hn ovements have been paid for the prior fis year; (b) an annual tenant
housing report whi at a minimum, shall include statistics elating to the income -eligible
households occupying eon -site affordable housing units per ection 2.1 above, such as the unit
number and type, house ld size, income, and lease dates d rents or sale price, as applicable;
(c) certification that such o cer has re-examined the term and provisions of this Agreement and
that at the date of such certi cation, and during the pre ing twelve (12) months, Developer is
not, or was not, in default in th fulfillment of any of a terms and conditions of this Agreement
and that no Event of Default (o vent which, with a lapse of time or the giving of notice, or
both, would become an Event ofDefault) is occu 'ng or has occurred as of the date of such
certification or during such period, o 'f th
Default, said officer shall disclose in c]
and what action, if any, has been taken
statement, proof and certificate shall be
commencing November 1, 2020 and endir
and Developers shall provide supporting i
of the City. /
signer s aware of any such default, event or Event of
stat ent the nature thereof, its period of existence
is roposed to be taken with respect thereto. Such
r vided not later than November 1 of each year,
November 1, 2035, both dates inclusive. Owner
o tion for their annual certifications upon request
Section 5.7 Minimum Assess int A eement. Owner and Developers (and the holder of
any Mortgage) shall agree to, anwith the City s 11 execute, an Assessment Agreement
pursuant to the provisions of Io Code Section 403. (19) (20 7) specifying the Assessor's
Minimum Actual Value for th Minimum Irnprovemen on the Development Property for
calculation of real property tax in the form attached as E 'bit F ("Assessment Agreement" or
"Minimum Assessment Agre ent" ). Specifically, Owner d Developers (and the holder of
any Mortgage) shall agr to an Assessor's Minimum A foal Value for the Minimum
Improvem/Cise
e cons cted on the Development Property of of less than $16,709,195, after
taking intoeration y factors such as "roll backs" which w old reduce the taxable value
of the proof J uary 1, 2020, until the Assessment Agree ent Termination Date (as
defined beuc minimum actual value at the time applicable i herein referred to as the
"Assessor's Actual Value." Nothing in the Assessment A Bement shall limit the
discretion lessor to assign an actual value to the Development roperty in excess of
such Asseinimum Actual Value nor prohibit Owner and Devel ers from seeking
through thise of legal or administrative remedies a reduction in suc actual value for
property tases; provided, however, that Owner and Developers shall not s ek a reduction
of such aclue below the Assessor's Minimum Actual Value in any year s ong as the
14
Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect
until December 31, 2034 ("Assessment Agreement Termination Date"). The Assessment
Agreement shall be certified by the Assessor for the County as provided in Iowa Code Section
403.6(19) (2017) and shall be filed for record in the office of the Johnson County Recorder, and
such filing shall constitute notice to any subsequent encumbrancer or purchaser of the
De lopment Property (or part thereof), whether voluntary or involuntary. Such Assessment
Agree ent shall be binding and enforceable in its entirety against any such bsequent purchaser
or lienh der, as well as all prior lienholders (such as the holder of any M gage), each of which
shall sign statement of consent to the Minimum Assessment Agreeme
Sectio 5.8. Real Property Taxes and Assessments. Owne d Developers shall pay or
cause to be pai when due all real property taxes and assessme s with respect to all and any
parts of the Deve\taxcial
wner and Developers agree that the will not seek:
(a) Aor judicial review of the app cability or constitutionality of any
Iowa tax statutethe taxation of property co ained on the Development Property
determined by ial to be applicable to the evelopment Property, the Minimum
Improvements, oDevelopers, or raise the ' applicability or constitutionality of any
such tax statute aany proceedings, inclu ing delinquent tax proceedings; and
(b) Any tax deferral kabatement,
Iowa Code Chapters 403 and 404 dwany other
contained on the Development Prop
presently or prospectively authorized under
or State law, of the taxation of real property
Section 5.9 Contractor Labor L 11
iance. Owner and Developers will require, in
their agreement with their general contract that the General Contractor i) comply with all state,
federal and local laws and regulations, cl ing, but not limited to the requirements of Iowa
Code Chapter 91C (Contractor Regis ation ith the Iowa Division of Labor), Iowa Code
Chapter 91A (Iowa Wage Payment C lection L
),Iowa Code Chapter 91D (Minimum Wage),
the Federal Fair Labor Standards ct, and ternal Revenue Code; ii) provide to the
Developer and the City, no later an the filian application for issuance of a building
permit, the names and addresse of each subac r and the dollar value of the work the
subcontractor is expected top rm; iii) demone it the capacity to meet all performance,
and labor and material payme ,bonding requints re five to the Minimum Improvements;
iv) provide to the City a ce ficate by the Gel Contra or's insurer that it has in force all
insurance required with res ect to constructionhe Minim Improvements; v) demonstrate
that it has required all sub ontractors to agree, iting, that th subcontractor will comply with
all state, federal and to al laws and administe rules and lations, including, but not
limited to the requir nts of Iowa Code Cha91C (Contracto Registration with the Iowa
Division of Labor), I a Code Chapter 91A (IWage Payment lection Law), Iowa Code
Chapter 91D (Mi ' um Wage), the Federal Fabor Standazds Act, d the Internal Revenue
Code. Owner Developers shall provide City with sufficient vidence to establish
compliance wit his requirement prior to issuanf any building permit.
ARTICLE VX. ASSIGNMENT AND TRANSFER
W,
Section 6. 1. Status of Owner and Developers; Transfer of Assets.
(a) As security for the obligations of Owner and Developers under this Agreement,
Owner and Developers represents and agrees that, prior to the Termination Date, Owner will
mainta' existence as Iowa limited liability partnership and Developers wi maintain existence
as Iowa limited liability companies, and will not wind up or othe se dispose of all or
substantia all of their assets or assign their interest in the Developme t Property or Minimum
Improvemen , or their interest in this Agreement to any other party unless: (i) the transferee
partnership, c oration, limited liability company or individual a umes in writing all of the
obligations of O per and Developers under this Agreement, and '/the City consents thereto in
writing in advance hereof, which consent shall not be unreason ly withheld. Notwithstanding
the foregoing, howe r, or any other provisions of this Agre ent, Owner and Developers may
pledge any and/or all its assets as security for any financi g of the Minimum Improvements,
and the City agrees that eveloper may assign its interest i the Economic Development Grants
being paid under this Agre ent for such purpose.
(b) The Owner and evelopers may submit a Development Property to a horizontal
property regime pursuant to Io a Code Chapter 49 B. The Mayor is authorized to execute a
amendment to this Agreement d the Minimum Assessment Agreement in accordance with
Section 12.8 for the limited purpo a of allocati g the rights and obligations set forth in this
Agreement to respective condomini units
Developers. Any other amendment to is Ag
specifically stated herein.
be owned by one or more of the Owner or
lent must be approved by City Council unless
(c) Notwithstanding anything r 'n to the contrary, however, the parties expressly
agree and acknowledge that Owner inte s to ansfer ownership of the Development Property to
the Developers prior to the commenc cut of onstruction of the Minimum Improvements and
that the City consents to said tran er. There re, no further consent from the City to the
Owner's transfer of the Develop ent Property t the Developers is required. It is further
acknowledged and agreed that u n the transfer of a Development Property by the Owner to
the Developers, Owner shall be eleased from any r obligation under this Agreement of any
kind and that all further righ , title and obligations o ed to or due from the City under this
Agreement shall vest solely ' the Developers.
Section 6.2. R (resentation as to Develo ment. O er and Developers represent and
agree that their develo ment of the Development Property, an heir other undertakings pursuant
to this Agreement, a and will be used for the purpose of de elopment of the Development
Property and not f r speculation in land holding. Owner and Deve pers further recognize:
(a) he importance of developing the Development Prope to the general welfare of
the commu ty;
b) The substantial financing and other public aids that have been ade available by
law nd by the City for the purpose of making such development possible; and
16
(c) Except for a change in the ownership or control of Owner and/or Developer(s)
caused by or related to the death of a member, estate planning of a member or retirement of a
member, when the remaining original controlling members of the Owner and/or Developer(s)
remain unchanged, the fact that any act or transaction involving or resulting in a significant
changpee i the ownership or with respect to the identity of the parties in control of Ow and
Develoor the degree thereof, is for practical purposes a transfer or dispos' ' n of the
Developm t Property then owned by Owner and Developers and the qualificati and identity
of Owner anDevelopers are of particular concern to the City. Owner and evelopers further
recognize that 't is because of such qualifications and identity thatthe Ci is entering into this
Agreement with wner and Developers.
Section 6.1\
For the reasons id tified in Section 6.2, Owner and D elopers represent and agree for
themselves and their cessors and assigns, that:
(a) Except fo change in the ownershi or control of Owner and/or Developer(s)
caused by or related to t eath of a member, a ate planning of a member or retirement of a
member, when the remain original controll' g members of the Owner and/or Developer(s)
remain unchanged or only b y of security or (i) the purpose of obtaining financing necessary
to enable Owner and Develo r or any s ccessor in interest to the Development Property, or
any part thereof, to perform h ' ob 'gations with respect to constructing the Minimum
Improvements under this Agree en ; d (ii) any other purpose authorized by this Agreement,
Owner and Developers (except as authorized) have not made or created, and they will not,
prior to the completion of the um Improvements and the delivery by the City of the
Certificate of Completion, mak creat 0r suffer to be made or created, any total or partial sale,
assignment, conveyance, or le e, or an tru or power, or transfer in any other mode or form of
or with respect to this A ment or th D velopment Property, or any part thereof or any
interest therein, or any co ract or agreem t t do any of the same, without the prior written
approval of the City.
(b) The shall be entitled to r uire, except as otherwise provided in this
Agreement, as cond' ons to any such approval that.
(i) Any proposed transferee shal hate the qualifications and financial
responsibility, determined by the City, necessary d 'adequate to fulfill the obligations
undertaken in is Agreement by Owner and Developers (o in`the event the transfer is or relates
to part of the evelopment Property, such obligations to the tent that they relate to such part).
(ii) Any proposed transferee, by instrument in ting satisfactory to the City
and in f(nditions
recordable among the land records, shall, for itself an its successors and assigns,
and expy for the benefit of the City, have expressly assumed all o the obligations of Owner
and Devers under this Agreement and the Assessment Agreement an greed to be subject to
all the c and restrictions to which Owner and Developers are subs t (or, in the event
the transfer is of or relates to part of the Development Property, such obligation , onditions, and
17
restrictions to the extent that they relate to such part). Provided, that the fact that any transferee
of, or any other successor in interest whatsoever to, the Development Property, or any part
thereof, shall, whatever the reason, not have assumedsuch obligations r so agreed, shall not
(unless and only to the extent otherwise specifically provided in this A Bement or agreed to in
writing by the City) relieve or except such transferee or successor of from such obligations,
conditions, or estrictions, or deprive or limit the City of or with respe t to any rights or remedies
or controls wi respect to the Development Property or the c struction of the Minimum
Improvements, i being the intent of this, together with other pro isions of this Agreement, that
(to the fullest exte t permitted by law and equity and excepti only in the manner and to the
extent specifically p vided otherwise in this Agreement) no ansfer of, or change with respect
to, ownership in the\frothis
t Property or any part ther of, or any interest therein, however
consummated or ocwhether voluntary or ' voluntary, shall operate, legally or
practically, to deprive City of or with respe t to any rights or remedies or controls
provided in or resultiAgreement and the sessment Agreement with respect to the
Development Propernstruction of the M' 'mum Improvements that the City would
have had, had there btransfer or change.
(iii) There shall b submitted 0 the City for review all instruments and other
legal documents involved in effecting ransfer; nd if approved by the City, its approval shall be
indicated to Owner and Developers in wXting. uch approval will not be unreasonably withheld.
Provided, that in the absence of spe c written agreement by the City to the contrary, no
such transfer or approval by the City ther of all be deemed to relieve Owner and Developers,
or any other party bound in any way y thi Agreement or otherwise with respect to the
construction of the Minimum Improv ments, o from any of their obligations with respect
thereto.
Section 6.4 Prohibition Agitinst Use as Non -Taxable or Centrally -Assessed Propert .
During the term of this Agree nt, Owner and Dev opers agree that no portion of the
Development Property or Mini Improvements shall b transferred or sold to a non-profit
entity or used for a purpose th t would exempt said portio of the Development Property or
Minimum Improvements fro property tax liability. Dunn the term of this Agreement,
Developer agrees not to al ow any portion of the Develop ent Property or Minimum
Improvements to be used as ntrally-assessed property (including, b t not limited to, Iowa Code
§ 428.24 to 428.29 (Pub c Utility Plants and Related Personal roperty); Chapter 433
(Telegraph and Telephone Company Property); Chapter 434 (Railway operty); Chapter 437
(Electric Transmission L' es); Chapter 437A (Property Used in the Pro ction, Generation,
Transmission or Delive of Electricity or Natural Gas); and Chapter 438 (Pipe' e Property)).
ARTICLE VII. ECONOMIC DEVELOPMENT GRANTS
Section 7.1.
For and in Onsideration of the obligations being assumed by the Owner and Developers
hereunder, and iA furtherance of the goals and objectives of the Urban Renewal Plan and the
fE:l
Urban Renewal Act, the City agrees to make the following Economic Development Grants,
subject to the Owner and Developers being and remaining in compliance with the terms of this
Agreement and subject to the terms of this Article VII. Said Economic Dev lopment Grants
shall, in no event, exceed an aggregate amount of $8,000,000:
(a) $60 ,000 to Owner and Developers on or about March 31, 0, or three (3) months
following the iss ance of the Certificate of Completion, whichever is I er.
(b) Up to fi een (15) annual Economic Development is commencing on June 1,
2022, and ending on ne 1, 2036, or when the total of all grant described in this Article VII is
equal to $8,000,000, ichever is earlier. All annual grant shall be equal to one hundred
percent (100%) per fisc year of the Tax Increments ( ess the total grant amount of
$8,000,000 is reached first) llected by the City with respe to the Minimum Improvements on
Development Property pursu t to Section 403.9 of the U an Renewal Act under the terms of
the Ordinance (without regard any averaging that m otherwise be utilized under Section
403.19(6) and excluding any int st that may accrue eon prior to payment to the Developer)
during the preceding twelve-mon period in resp of the Development Property and the
Minimum Improvements, but subject o adjustment d conditions precedent as provided in this
Article (such payments described in su ecrions (a and (b) hereof being referred to collectively
as the "Economic Development Grants").
(c) The obligation of the City t ake an Economic Development Grant to the
Developer in any year as specified above s be subject to and conditioned upon the timely
filing by the Developer of all previous ua statements, proofs and certifications required
under Section 5.6 hereof and the City ana 's approval thereof. Beginning with the
November 1, 2020 certification, if the D veloper's ual statement, proof and certification is
timely filed and contains the informat' n required der Section 5.6 and the City Manager
approves of the same, the City shall c rtify to the Co ty prior to December 1 of that year its
request for the available Tax Increm is resulting from assessments imposed by the County
as of January 1 of that year, to be llected by the City as taxes are paid during the following
fiscal year and which shall therea er be disbursed to the De eloper on June 1 of the following
fiscal year. (For example, if a Owner and Developers d the City each so certify on
November and December 2020 espectively, the first Economic evelopment Grant would be
paid to the Owner and Develop s on June 1, 2022).
(d) In the event t the annual statement, proof or certificat required to be delivered
by the Owner and Develo ers under Section 5.7 is not delivered to the ity by November 1 of
any year, the Owner and evelopers recognize and agree that the City ma ave insufficient time
to review and approve a same and certify its request for Tax Increments to e County and that,
as a result, no Eco mic Development Grant may be made in respect ereof. The City
covenants to act in ood faith to appropriately review and consider any late c ification on the
part of the Owner d Developers, but the City shall not be obligated to make an certification to
the County for a available Tax Increments or make any corresponding pa ent of the
Economic Dev opment Grant to the Owner and Developers if, in the reasonable ju ent of the
City, it is no able to give appropriate consideration (which may include, but not be invited to,
19
specific discussion before the City Council at a regular City Council meeting with respect
thereto) to the Owner and Developers' certification due to its late filing. In the event Owner and
Developers fail to timely file an annual statement, proof or certificate due to an Unavoidable
Delay and, as a result, an Economic Development Grant cannot be make, Owner and Developers
may 've written notice to the City and, if the City finds that the failure is due to an Unay�idable
Dela ,the missed Economic Development Grant shall be made in the year succeee last
schedu Economic Development Grant under Section 7.1, subject to Owner Developers'
filing un Section 5.6 and all other provisions of this Article VII with res t to such grant, it
being the tention of the parties to allow a one-time $600,000 p sum Economic
Development ant and up to fifteen (15) annual Economic Developm Grants in an aggregate
amount not to ceed $8,000,000, if Owner and Developers ar in compliance with this
Agreement.
(e) The finalgr shall be adjusted, if necessary, if yment of 100% of Tax Increments
for that grant would re It in total, aggregate Econo Development Grants in an amount
exceeding $8,000,000. Su\detennin
ic DeveI pmen Grants shall at all times be subject to
termination in accordancerms of this le VII and Article X. Thereafter, the taxes
levied on the Developmend Mim Improvements shall be divided and applied in
accordance with the UrbaAct and e Ordinance. It is recognized by all parties that
the total aggregate amouabove s a maximum amount only and that the actual
payment amounts will beafter a Minimum Improvements are completed and the
valuations of said Improvea determined by the City Assessor.
(f) In the event that any ce fi to filed by the Owner and Developers under Section
5.6 or other information that
t the 'ty discloses the existence or prior occurrence of an
Event of Default that was not c ed or c of reasonably be cured under the provisions of
Section 10.2 (or an event that, ith the pass a of time or giving of notice, or both, would
become an Event of Default t cannot reaso bly be cured under the provisions of Section
10.2), the City shall have no o igation thereafter N make any further payments to the Developer
in respect of the Economic Pevelopment Grants and may proceed to take one or more of the
actions described in Sectio 0.2 hereof.
Section 7.2.
(a) The Econo c Development Grants shall be payab from and secured solely and only
by amounts deposite and held in the Hieronymus Square T Account of the City. The City
hereby covenants #d agrees to maintain the Ordinance in fork during the term hereof and to
apply the increme al taxes collected in respect of the Minimum provements and allocated to
the Hieronymus quare TIF Account to pay the Economic Develo ment Grants, as and to the
extent set forth ' Section 7.1 hereof. The Economic Development Gr is shall not be payable in
any manner by ther tax increment revenues or by general taxation or fro any other City funds.
(b) otwithstanding the provisions of Section 7.1 hereof, the ty shall have no
obligation t make an Economic Development Grant to the Owner or Develop if at any time
during th term hereof the City receives an opinion of its legal counsel or a contro ' g decision
20
of an Iowa court having jurisdiction over the subject matter hereof to the effect that the use of
Tax Increments resulting from the Minimum Improvements to fund an Economic Development
Grant, as contemplated under said Section 7.1, is not authorized or otherwise an appropriate
project activity permitted to be undertaken by the City under the Urban Renewal Act or other
applicable provisions of the Code, as then constituted. Upon receipt of sucJi an opinion or
decisio the City shall promptly forward a copy of the same to the Owner Developers. If
the circ stances or legal constraints giving rise to the opinion or decision ntinue for a period
during whi two (2) Economic Development Grants would otherwise ve been paid to the
Owner and Developers under the terms of Section 7. 1, the City may t inate this Agreement,
without penaltyq other liability to the Owner or Developers, by writt notice to the Owner and
Developers. In id event, the Minimum Assessment Agreem shall also be terminated
effective as of the CiNs termination of this Agreement.
(c) The City makes\the
tation with respect to amounts that may finally be paid
to the Owner and Develoconomic Developme Grants, and under no circumstances
shall the City in any mane to the Owner and evelopers, so long as the City timely
applies the Tax Incremenollected and held ' the Hieronymus Square TIF Account
(regardless of the amountthe payment of a Economic Development Grants to the
Developer, as and to the ein this Arti e.
Section 7.3. Use of Other Tax Inc
free to use any and all Tax Increments
Development Property unrelated to const
assessed or actual value due to market fa
any available Tax Increments resulting
Development Grants under Section 7.1
may lawfully be used pursuant to thVitt have no obligations to the Developer
Section 7.4. Condition
City's obligations to make Eo
Agreement shall be subject to
ents Subject to this Article VII, the City shall be
col ed in respect of increases in valuation on the
ucti f the Minimum Improvements (i.e. increases in
;to ), other properties within the Project Area, or
m the pension or termination of the Economic
ereof, for purpose for which the Tax Increments
visions of the\Urban Renewal Act, and the City shall
respect to the u thereof.
lent. Notwithstanding &
Development Grant(s) to
tion of the following con
provisions of this Article, the
ner and Developers under this
ns precedent:
(a) Owner and D velopers shall be in material complian with all the terms and
provisions of this /Agreemt; and
(b) The eld all necessary hearings and taken Council ac 'on in the exercise of
its sole discretionlative deliberative authority to adopt or amend e City -University
Project I Urban Rn, as deemed necessary by the City in its sole discr ion; and
(c) ecution and recording of the Assessment Agreement by the City and Owner and
Developers pursuant to Section 5.8 of this Agreement; and N
21
(d) Execution and recording of the Memorandum of Agreement for Private
Development by the City and Owner and Developers pursuant to Section 12.3 of this Agreement;
and
(e) Execution and recording of an Access Easement for use of Court Street
Transp\S*
if necessary pursuant to Section 2.1 above.
n and recording of a Temporary Construction Eas ent, if necessary
pursu1 above.
n and recording of a Temporary Use of Ri t -of -Way agreement, if
necessction 2.1 above.
(h) Receipt of op tions of counsel to Owner and De}�elopers in the form attached
hereto as Exhibit E;
(i) Owner and Develop'T Vater
d on their arcing for the construction of the
Minimum Improvements; and
(j) There has not been a sange fo the worse in the financial resources and
ability of Owner and Developers, or decr a in the financing commitments secured
by Owner and Developers for conthe inimum Improvements, which change(s)
makes it likely, in the judgment of er and Developers will be unable to fulfill
its covenants and obligations under
(k) Developer's execution of the
Section 7.5. Limitations
provisions of this Agreement,
obligation to Owner and Devek
Grant if the City is entitled (or,
entitled) under Section 10.2 of d
a result of an Event of Default.
ARTICLE VIII. INDEMNIFICATION
Section 8.1.
lagp^I'hek Affidavit attached hereto as Exhibit K.
ial Underthkings of the City. Notwithstanding the
Sections 7.1 d7.2 hereof, the City shall have no
r this Agreem t to issue an Economic Development
passage of time r giving of notice or both, would be
Hent to exercise an of the remedies set forth therein as
(a) Owner nd Developers release the City and the goveminX body members, officers,
agents, servants TO employees thereof (hereinafter, for purposes this Article VIII, the
"indemnified p s") from, covenant and agree that the indemnified p ies shall not be liable
for, and agree from,
defend and hold harmless the indemnified p ies against, any loss
or damage to operty or any injury to or death of any person occurring at about, or resulting
from any d t in, the Minimum Improvements or the Development Prop Notwithstanding
the foreg g, however, Owner and Developers shall have no obligation to indt
ydefend or
hold h less the indemnified parties against any loss or damage to property oinjury to or
22
death of any person arising in whole or in part from actions taken or not taken by the City on its
property adjacent to the Development Property or any property other than the Development
Property. /I
(b) Except for any willful misrepresentation or any willful or anton misconduct or
any awful act of the indemnified parties, Owner and Developers agr a to protect and defend
the ind fled parties, now or forever, and further agrees to hol the indemnified parties
harmless, om any claim, demand, suit, action or other proceedings otsoever by any person or
entity what ever arising or purportedly arising from: (i) any vi ation of any agreement or
condition of is Agreement by (except with respect to any it, action, demand or other
proceeding brou t by Owner and Developers against the City enforce their rights under this
Agreement); (ii) t acquisition and condition of the Develop ent Property and the acquisition,
construction, install 'on, owner and operation of the Mi mum Improvements; or (iii) any
hazardous substance or nvironmental contamination located in or on the Development Property.
(c) The indemni d parties shall not be liable or any damage or injury to the persons
or property of Owner and De Topers, or its officers, ents, servants or employees or any other
person who may be aboutthe nimum Improver is or the Development Property due to any
act of negligence of any person, other than any act of negligence on the part of any such
indemnified party or its officers, age ts, servants employees.
(d) All covenants, stipulation pro ises, agreements and obligations of the City
contained herein shall be deemed. to be a ovenants, stipulations, promises, agreements and
obligations of the City, and not of any veining body member, officer, agent, servant or
employee of the City in the individual cap ci hereof.
(e) The provisions of this Art}ble VIII sh'll survive the termination of this Agreement.
(f) Nothing herein shall w ve any of the c
to the City of Iowa City, Iowa, un er Code of Iowa
be amended from time to time.
ARTICLE IX. RESERVED
ARTICLE X. DEFAULT AND REMEDIES
of governmental immunity available
670.4 as it now exists and as it may
Section 10.1. Ev nts of Default Defined. The following sha be "Events of Default"
under this Agreement d the term "Event of Default" shall mean, wh ever it is used in this
Agreement, any one r more of the following events:
(a) Fail a by Owner and Developers to cause the construction f the Minimum
Improvements t be commenced and completed pursuant to the terms, conditio d limitations
of this Apre nt;
23
(b) Transfer of any interest by Developer in this Agreement or the Development
Property or the Minimum Improvements in violation of the provisions of this Agreement.
(c) Failure by Owner and Developers to substantially observe r perform any
co enant, condition, obligation or agreement on its part to be observed or p ormed under this
Agr ement;
( Failure by Developer to pay, before delinquency, a valorem taxes on the
Develop ent Property and Minimum Improvements;
(e) he holder of any Mortgage on the Development P operty, or any improvements
thereon, or an ortion thereof, commences foreclosure proce ings as a result of any default
under the applica a Mortgage documents;
(f) Owner d Developers shall:
(i) file petition in bankruptcy r for any reorganization, arrangement,
composition, readjustment, iquidation, dissolution, or similar relief under the United States
Bankruptcy Act of 1978, as ended, or under any milar federal or state law;
(ii) make an assi ent for the nefit of its creditors;
(iii) admit in writing r inabil' to pay its debts generally as they become due;
(iv) be adjudicated a bz
the adjudication of Owner and Develo;
or future federal bankruptcy act or any
such petition or answer shall not be d'.
thereof; or a receiver, trustee or li
Improvements, or part thereof, sha be
or insolvent; or if a petition or answer proposing
a bankrupt or its reorganization under any present
federal or state law shall be filed in any court and
or denied within ninety (90) days after the filing
r f Owner and Developers or the Minimum
ted ' any proceedings brought against Owner and
Developers, and she not be lis ed within ni ety (90) days after such appointment, or if
Owner and Developers shall co rent to or acquiesce i such appointment; .
(g) Any represent on or warranty made by O er and Developers in this Agreement,
or made by Owner and D elopers in any written statembqt or certificate famished by Owner
and Developers pursuanto this Agreement, shall prove to ave been incorrect, incomplete or
misleading in any mate 'al respect on or as of the date of the is ance or making thereof.
Sec/(e(o
emedies on Default. Whenever any Event o efault referred to in Section
10.1 of thent occurs and is continuing, the City, as specifi below, may take any one
or more llowing actions after (except in the case of an vent of Default under
subsectior (h) of said Section 10.1) the giving of thirty (30) da 'written notice by the
City to ODevelopers, Developer and the holder of the Mortgage ut only to the extent
the City formed in writing of the existence of a Mortgage and bee rovided with the
address oer thereof) of the Event of Default, but only if the Event o efault has not
24
been cured within said thirty (30) days, or if the Event of Default cannot reasonably be cured
within thirty (30) days and Owner and Developers does not provide assuran s reasonably
satisfactory to the City that the Event of Default will be cured as soon as reasona ;ypossible:
The City may suspend its performance under this AgreemgAt until it receives
from Owner and Developers, deemed adequate by the Ay, that Owner and
will cure its default and continue its performance under this eement;
(b) %Thety
ty may terminate this Agreement;
(c) may withhold the Certificate of C
(d) The City all be entitled to rescind the Eci
from Owner and Develo ers all funds expended by the
the Note and the funding f the Economic Developm
action, including any legal a ion it deems necessary, tc
Developers; or
)evelopment Grants and recover
connection with the issuance of
its, and the City may take any
such amounts from Owner and
(e) The City may take action, includ' g legal, equitable or administrative action,
which may appear necessary or des able to coli t any amounts due under this Agreement or
enforce performance and observanc of any kligation, agreement, or covenant under this
Agreement.
(f) The City may draw upon any arantee or security provided to the City pursuant to
any of the terms of this Agreement accord' g N its terms.
Section 10.3. No Remedv Exclu ve. No rZxnedv herein conferred upon or reserved to the
City is intended to be exclusive of a y other avail le remedy or remedies, but each and every
remedy shall be cumulative and s all be in additio to every other remedy given under this
Agreement or now or hereafter ex' iting at law or in equlkyor by statute. No delay or omission to
exercise any right or power acc ing upon any default s all impair any such right or power or
shall be construed to be a wai thereof, but any such ri t and power may be exercised from
time to time and as often as y be deemed expedient.
Section 10.4. No Amvlied Waiver. In the event an\agretcyment contained in this
Agreement should be b ached by any party and thereafter wany other party, such
waiver shall be limited o the particular breach so waived and sbe deemed to waive any
other concurrent, prey ous or subsequent breach hereunder.
Section 10.5! Agreement to Pav Attornevs' Fees and Expenses.
(i) eveloper shall pay the City's costs and expenses related to am ding the urban
renewal are , legal fees related to the creation and ongoing administration of the evelopment
Agreeme , and any financial advisor's fees. Such payment shall be made no laterthadays
upon re eiving written notice.
25
(ii) Whenever any Event of Default occurs and the City shall employ attorneys or incur
other expenses for the collection of payments due or to become due for the enforcement or
performance or observance of any obligation or agreement on the part f Owner and Developers
he in contained, Owner and Developers agrees that it shall, on d and therefore, pay to the
Cit the reasonable fees of such attorneys and such other expensey as may be reasonably and
appro 'ately incurred by the City in connection therewith.
RESERVED
ARTICLE XIh. MISCELLANEOUS
Section 12.1. Conflict of Interest. Owner and Deve pers represents and warrants that, to
their best knowled9 and belief after due inquiry, no o cer or employee of the City, or their
designees or agents, n any consultant or member of a governing body of the City, and no
other public official of t City who exercises or has ercised any functions or responsibilities
with respect to the Project uring his or her tenure, r who is in a position to participate in a
decision-making process or in insider informatio with regard to the Project, has had or shall
have any interest, direct or in ect, in any contra or subcontract, or the proceeds thereof, for
work or services to be performe in connection ith the Project, or in any activity, or benefit
therefrom, which is part of the Proj t at any tiro during or after such person's tenure.
Section 12.2. Notices and Demans. A otice, demand or other communication under this
Agreement by any party to the other shalle ufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepa' return receipt requested, or delivered personally,
and
(a) In the case of Owner an Develop rs, is addressed or delivered personally to
Owner and Developers at 711 S. Gilb rt Street, Io a City, Iowa 52240; 319-354-2233 Attn:
Kevin Digmann, with copy to Kirsten . Frey, 920 S. buque Street, Iowa City, Iowa 52240,
(b) In the case of the City addressed to or de liv ed personally to City Manager, City
Hall, 410 E. Washington Street, Io a City, Iowa 52240,
or to such other designated individual or officer or to such other�ddress as any party shall have
furnished to the other in writin m accordance herewith. \
Section 12.3. Memo •6ndum of Agreement. The parties agree execute and record a
Memorandum of Agreem nt for Private Development, in substantially a form attached as
Exhibit D, to serve as no 'cc to the public of the existence and provisions ofis Agreement, and
the rights and interests eld by the City by virtue hereof. The Minimum Asse ent Agreement
shall be recorded at O ner and Developers' expense.
W
Section 12.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions. /
12.5. Counterparts. This Agreement may be executed m any number of
an
each of which shall constitute one and the same instrument.
Section�6. Governing Law. This Agreement shall be govern d by the laws of the State
of
Section 12.7. S5ve
provision to any persbq
Agreement or the applica
which it is held invalid,
Agreement to legally and
If any provision of this
or circumstance shall be held
an of such provision to persons
tl not be affected thereby and 1
nos losely embody the spirit ap
Section 12.8. Amendment Waiver. This
modified in any respect, unless the s e shall be in
by a party of any default by another partshall con)
by another party, whether of the same or
privilege or service voluntarily given or
contractual right by custom, estoppel or
amendment reasonably necessary in accord
Section 12.9. No Third -Pa
shall inure to the benefit of any 1
other person or entity, and no su
any other person or entity shall be
contained in this Agreement. j
it or the application of such
then the remainder of this
other than those to
3 parties shall thereupon amend this
intent of the invalid provisions.
may not be amended, waived or
y'riting and signed by all parties. No waiver
itute a waiver of any other breach or default
covenant or condition. No waiver, benefit,
d by a party shall give another party any
The Mayor is authorized to execute an
Ike wry Section 6.1 above
ficiaries. N rights or privileges of any party hereto
r, contractor, bcontractor, material supplier, or any
actor, landowner, ubcontractor, material supplier, or
to be a third -party bqneficiary of any of the provisions
Section 12.10. Success s and Assigns. This Agreement is nXended to and shall inure to
the benefit of and be binding/upon the parties hereto and their respecti successors and assigns.
Section 12.11.ination Date. With the exception of theXovenants regarding
affordable housing setforth in Section 2.2, this Agreement shallterminate be of no further
force or effect on D mber 31, 2037 or upon other cause of termination as pro ' ed herein.
Section 12. Entire Agreement. This Agreement and attached exhibits titute the
entire agreem of the parties and supersede all prior offers, agreements, arrang is and
contracts, wh er oral or written, concerning the subject matter hereof
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf by its Mayor and its sea] to be hereunto duly affixed and attested by its City
Clerk and Owner and Developers has caused this Agreement to be duly executed in their names
27
and on their behalf by their authorized representative(s), all on or as of the day first above
written.
ATTEST:
STATE OF IOWA
COUNTY OF
On this
said County,
being duly sv
Iowa City, Io
Iowa, and s9I
of said Mufii(
Clerk
CITY OF IOWA CITY, IOWA
M
HIERONYMI P
BY:
IOW CITY I
B
HS314, L.L.C.
BY:
) SS
, L.L.P.,
SQUARE DEVELOPERS, L.L.C.,
L.L.C.
day of 2017, before me a Notary ublic in and for
rs nally appeared and to me person ly known, who
i , did say that they are the Mayor and City Clerk, respectively, the City of
a, a Municipal Corporation, created and existing under the laws oftke State of
Mayor and City Clerk acknowledged said instrument to be the free ac and deed
pal Corporation by them voluntarily executed.
N`:
STATE OF IOWA
COUNTY OF JOIR
This instrument was
Notary Public in and for the State of
)SS
I before me on this day of 2017, by
as of HIER I PARTNERSHIP, L.L.P.,
Notary Public in and for the State of Iowa
STATE OF IOWA \before�
COUNTY OF JOHNSONThis instrument was acknowledged this
DEVELOPERS, L.L.C.
_ day of , 2017, by
of HIERONYMUS SQUARE
Notary P41ic in and for the State of Iowa
STATE OF IOWA / )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this of 20___, by
as of IOWA CITY ES HOT , L.L.C.
Notary Public in and for the tate of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 2017, by
, as of HS314, L.L.C.
43
30
The
EXHIBIT A
31
1W:I:iPOMP,
MINIMUM IMPROVEMENTS
Developer shall complete the following minimum improvements and uses on the evelopment
Property in accordance with the Development Agreement to which this Exhibit D s attached and
as shown on the Concept Plan, attached to the Development Agreement as Exhib't H.
1. "Element" Hotel
Developer shall complete a 7 -story, approximate 91 -unit extended stay/hotel comprised of a
minimum of 62,000 square fe t. The Developer shall spend a minim of $20,479,836 on total
development costs, which sha include building construction and de gn, property acquisition,
furniture, fixtures and equip ent, opening costs (working ca tal, training, marketing),
construction interest and loan fee developer overhead, parking, �nd professional services and
closing costs with a taxable value a imated at $8,460,000. /
The hotel entry shall be on ClintonStr et through an appro 'mately 2,800 square foot vestibule,
described in more detail below, to be azed with the -story mixed use building described
below. The first floor shall be comprise of an appro imate 9,750 square foot lobby, with a
reception desk, fitness room, lounge, breakfa t
laundry, pantry, and a staff meeting room. Th
square foot patio (with a lower and upper terr
story mixed use building described below, as
through seventh floors shall each be approxi
hotel unit shall each have a full compact rt
dishwasher and microwave. The City MAnag
number of hotel units in accordance with//Secti(
the offices, restrooms, a guest meeting room,
cc floor shall include an approximate 5,000
and an indoor pool to be shared with the 7-
e Ilk as approximately 15 guest units. The third
,ly 575 square feet with 15 guest units. Each
en, i%hve
g a two -burner stove, refrigerator,
shallthe authority to approve the final
2.1 oereement.
A stairway and the elevator at the ea4t end of the first floor v hbule will provide access to the
second floor and it is anticipated hat Developer will constru and maintain a second floor
skywalk to link the vestibule to the City -owned Court Street Transportation Center (CSTC).
The Developer shall enter int a franchise agreement with the Mam tt International, Inc., or a
subsidiary, for an "Element" Yrand hotel franchise or comparable hotel anchise approved by the
City, which approval shall q t be unreasonably withheld.
In construction and operation of the Element, the Developer shall obtain tW'Gold Green Seal
Certification" upon con7truction of the building, and shall operate the hotel iri,,accordance with
said Gold Green Seal rogram, a third -party non-profit environmental certification program for
hotels and lodging properties.
32
2. Mixed -Use
Developer shall complete a 7 -story mixed use building comprised ofparking garage,
commercial space, Class A office space, and five floors of residential units. a Developer shall
spend at least $20,273,940 on total development costs for this compo n nt of the Minimum
Improvements, which is estimated to create a taxable value of $8,249,195.
The first floor will be built for retail use to ensure the street front isActive and engaging. The
retail level will be comprised of at least 10,100 square feet and mayye divided into appropriate -
sized sections for tenant use,The store fronts shall have large,y transparent windows to
encourage and enhance activit( and vibrancy at the street level. h'
Level two consists of a minimum f 6,100 square feet of Clas�A office space. As defined by the
Building Owners And Managers ssociation Internationa /(BOMA), class A office space is
space that is of a quality that is attralqive for premier o9 a users with rents above average for
the area. Class A office space has quality stan • and finishes, state of the art systems, -
exceptional accessibility and a definite m et presen9d
A minimum of 50,000 square feet of residen
approximately 45 residential dwelling units.
consist of a mix of 5 studios, 10 one-bedroo
approved by the City Manager during the ci
pursuant to Section 2.1 of the Agreemeg As
units one 1 -bedroom and one 2-be�foom)
households. /
1gl,dpace on levels three through seven will total
JT�X, \de
ticipated that the 45 dwelling units will
unitd 30 two-bedroom units, or as otherwise
;e oign review and construction plan approval
provided) section 2.1 above, at least two of the
will be sold to or leased to income qualified
All parking required pursuant the Iowa City Code of Ordinances will be satisfied in an
underground parking garage panning the entire footprint of lioth the mixed use and hotel
buildings described above. t is anticipated that access to the underground parking will be
through the Court Stregt Transportation Center in accordance wee an access easement
agreement. 7
The Developer shall install rooftop solar modules to generate an estimated 38,732 kWh annually.
The design of tjlese Minimum Improvements must be approved by the Form -based Code
Committee for conformance with the Riverfront Crossings development standards, as set forth in
Iowa City Coda of Ordinances 14-2G.
33
EXHIBIT C
CERTIFICATE OF COMPLETION
WHEREAS, the City of Iowa City, Iowa (the "City") and
("Developers"), did on or about the day of , 2017, make, execute d deliver, each
to the other, an Agreement for Private Development (the "Agreement"), w ein and whereby
the Developers agreed, in accordance with the terms of the Agreement, to 06velop and maintain
certain real property located within the City and as more particularly desc ' ed as follows:
WHEREAS, the Agre ent incorporated and contained ce in covenants and restrictions
with respect to the developme of the Development Property, d obligated the Developers to
construct certain Minimum rovements (as defined rein) in accordance with the
Agreement; and
WHEREAS, Developers have to a present date p ormed said covenants and conditions
insofar as they relate to the construction f said Minimugh Improvements in a manner deemed by
the City to be in conformance with the proved by{Iding plans to permit the execution and
recording of this certification. 7
NOW, THEREFORE, pursuant to S
that all covenants and conditions of the
Developer, and its successors and assign
Development Property have been complel
released absolutely and forever terminate/(
except those covenants set forth in,
Recorder of Johnson County, Iowa, isiherel
filing of this instrument, to be a conclusiv
covenants and conditions of saiAgreenu
::ti/ of the Agreement, this is to certify
A ebment with respect to the obligations of the
co struct the Minimum Improvements on the
d and pormed by the Developer and are hereby
insofar as hey apply to the land described herein,
of the Agreement. The County
authorized to ccept for recording and to record the
determination o the satisfactory termination of the
a with respect to a construction of the Minimum
Improvements on the Development Property.
All other covenants
and effect until terminatio
(SEAL) /
ATTEST:
By:
City Clerk
provisions of the Agreement shall
provided therein.
CITY OF IOWA CITY,
1.2
34
Mayor
remain in full force
CITY OF IOWA CITY
STATE OF IOWA )
COUNTY OF JOHNSON )
On this day of 20 , before me Notary Public in
and for said County, personally appeared and to me
personally known, who being duly sworn, did say that they are the yor and City Clerk,
respectively of the City of Iowa City, Iowa, a Municipal Corporation, cr ted and existing under
the laws of the State of Iowa, and that a seal affixed to the foregoin instrument is the seal of
said Municipal Corporation, and that sai instrument was signed sealed on behalf of said
Municipal Corporation by authority and r olution of its City Co it and said Mayor and City
Clerk acknowledged said instrument to be a free act and deed f said Municipal Corporation
by it voluntarily executed.
the State of Iowa
35
EXHIBIT D
WHEREAS, the City of Iowa City, Iowa (the "City") and (the
"Developers"), did on or about the —day of 2017 m e, execute and
deliver an Agreement for Private Development (the "Agreement"), w
herei and whereby the
Developers agreed, in accordance with the terms of the Agreement and e City -University
Urban Renewal Plan (the "Plan"), to develop certain real property locate within the City and
within the City -University Urban Renewal Area and as more pa cularly described as
Original Town, Iowa Ci , Iowa ("Development
Property"); and
WHEREAS, the term' o`f this Agreement shall commence on the and
terminate \� ; and
WHEREAS, the City and DcS opers desire to record Memorandum of the Agreement
referring to the Development Property and their respective i erests therein.
NOW, THEREFORE, IT IS AGREED AS
1. That the recording of this Memorand m of Agreement for Private Development
shall serve as notice to the public that the Agreeme contains provisions restricting development
and use of the Development Property and the mprovements located and operated on such
Development Property, and further subject the `Development Property to a Minimum
Assessment Agreement entered into under th authority of Iowa Code Chapter 403, in which the
City and Developers (and any successors r assigns) agree that, as of January 1, 2020, a full
assessment shall be made fixing the mini um actual value af.the Development Property and all
improvements located thereof for calcu tion of real property t xes at not less than $16,709,195
after taking into consideration any fa ors such as "roll -backs" hich would reduce the taxable
value of the property; and that ctain condominium units to ted within development be
dedicated to particular uses.
2. That the Agreemen/imposes certain affordable housing
therein, for a period of 20 yes beginning on the date a certificate of
property legally -described s:
ats as set forth
is issued for the
3. That all of tlt6 provisions of the Agreement and any subsequent amendments thereto, if
any, even though noF%et forth herein, are by the filing of this Memorandum of Agreement for
Private Developme? made a part hereof by reference, and that anyone making any claim against
any of said Property in any manner whatsoever shall be fully advised as to all of the terms and
conditions of the Agreement, and any amendments thereto, as if the same were fully set forth
herein.
M1
4. That a copy of the Agreement and any subsequent amendments thereto if any,
shall be maintained on file for public inspection during ordinary business hours in the office of
the City Clerk, City Hall, Iowa City, Iowa.
IN WITNESS WHEREOF, the City and the Red
Memorandum of Agreement for Private Redevelopment as of the
ATTEST:
City
M
M
CITY OF IOWA CITY
A CITY ES HOTEL,
BY:
f
HS314, L.L.C.
M
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
37
have executed this
of 2017.
A
Mayor
L.L.P.,
DEVELOPERS, L.L.C.,
On this day of , 2017, before me a Notary Public in and for
said County, personally appeared and to me personally k�own, who
being duly sworn, did say that they are the Mayor and City Clerk, respectively, of gie City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of/he State of
Iowa, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by them voluntarily executed. /
STATE OF IOWA
COUNTY OF
This instrument was
Notary Public in and for the State of
)SS
I before me on this ddy of 2017, by
as of HIYRONYMI PARTNERSHIP, L.L.P.,
XNZotarylilic in and for the State of Iowa
STATE OF IOWA
COUNTY OF JOHNSON f) \
This instrument was acknowledged liefore me on this-, day of 2017, by
/as HIERONYMUS SQUARE
DEVELOPERS, L.L.C.
Notary Public in and for the State of Iowa
STATE OF IOWA
� )SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 20_, by
as of IOWA CITY ES HOTEL, L.L.C.
Notary Public in and for the State of Iowa
IF
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was
as
kill
EXHIBIT E
OPINION OF COUNSEL
City of Iowa City
410 E. Washington Street
Iowa City, Iowa 52240
RE: Agreement for Private Development by and among the City of Iowa City, Iowa,
Hieronymi Partnership, L.L.P., Hieronymus Square Developers,, LEC., Iowa City ES Hotel,
L.L.C. and HS314, L.L.C.
Dear City Representatives:
I have acted as counsel for Hieronymi Pai
Developers, L.L.C., Iowa City ES Hotel, L.L.C.
"Developers"), in cnnection with the execution and del
Development (the " � evelopment Agreement") betweei
City, Iowa (the "City") ated as of 20h.
I have examined tAe original certified
satisfaction as being true copies, f the following'
(a) The organization d gpera
(b) Resolutions of thebvelop
the transactions cqered by
(c) The Development Agreement;
ier'ship, L.L.P., Hieronymus Square
is HS314, L.L.C. (collectively the
ery of a certain Agreement for Private
the Developers and the City of Iowa
or copies otherwise identified to my
agreements of the Developers;
at which action was taken with respect to
i opinion;
and such other documents and re ids as I have deemed relevant,and necessary as a basis for the
opinions set forth herein. \
Based on the pertinerjt law, the foregoing examination and such other inquiries as I have
deemed appropriate, I am othe opinion that:
I. The Developers were duly organized and validly exist as a limited liability
partnership and limited, liability companies under the laws of the State of Iowa and are qualified
to do business in the State of Iowa. The Developers have full power and authority to execute,
deliver and perform in full the Development Agreement; and the Development Agreement was
duly and validly authorized, executed and delivered by the Developers and, assuming due
authorization, execution and delivery by the City, is in full force and effect and is a valid and
legally binding instrument of the Developers enforceable in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or
affecting creditors' rights generally.
40
2. The execution, delivery and performance by the Developers of the Development
Agreement and the carrying out of the terms thereof, will not result in violation f any provision
of, or in default under, the articles of organization and operating agreement of�ie Developers or
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, d�PTT,,C(�rree, order, statute,
rule, regulation or restriction to which the Developers are a party or by which it or its property is
bound or subject.
3. There are no actions, suits or proceedings pending of threatened against or
affecting the Developers in any court or before any arbitrator or befgre or by any governmental
body in which there is a reasonable possibility of an adverse dec}§ion which could materially
adversely affect the business (present or prospective), financial position or results of operations
of the Developers or which in any manner raises any quest�Z affecting the validity of the
Agreement or the Developers' ability to perform their obligati9ns thereunder.
Sincerely,
41
EXHIBIT F
MINIMUM ASSESSMENT AGREEMENT
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this / day of
2017, by and among the CITY OF IOWA CI IOWA, ("City");
HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability partners p; HIERONYMUS
SQUARE DEVELOPERS, L.L.C., an Iowa limited liability company, IOWA CITY ES HOTEL,
L.L.C., an Iowa limited liability company, and HS314, L.L.C., an Iowa limited liability company
(hereinafter collectively "Developers"), and the CITY ASSESSORo /ithe City of Iowa City,
Iowa ("Assessor"). /
WITNESSETH:
WHEREAS, it is ontemplated that the Developers wil ndertake the development of an
area ("Project") within th City and within the "City -U ' ersity Urban Renewal Area," as
amended; and
WHEREAS, the City is mmaking a significant gr t of funds to the developer which will
allow the Developer to construct th Project; and
WHEREAS, the City will be re' bursed r such grant from the property tax revenues
generated from the Project; and
WHEREAS, pursuant to Iowa Code tion 403.6 (2017), as amended, the City and the
Developer desire to establish a minimum aal ,alue for the land legally described in Exhibit A
to the Agreement for Private Development; and
WHEREAS, the City and Pe Assessor have 1reviewed the preliminary plans and
specifications for the Minimum Impfovements to be erected a part of the development;
NOW, THEREFORE, /the parties to this Minimurn\Assessment Agreement, in
consideration of the promises, ovenants and agreements made by each other, do hereby agree as
follows:
1. As of January 1, 2020, a full assessment shall be made fixing the minimum actual
taxable value for assessment purposes for the land and Minimum Improvements to be
constructed thereon/by the Developers at not less than $16,709,195\fter taking into
consideration any factors such as "roll backs" which would reduce the taxalie value of the
property ("Assessor's Minimum Actual Value"). The parties hereto acknowledge and agree that
construction of the Minimum Improvements will be substantially completed on or before
December 31, 200.
2. The Developer contemplates that a portion of the Project will be residential
condominium units which will be subject to the property tax "roll -back" referred to previously.
CP7
Developers agree that at the time of the execution of the declaration required by Chapter 499B
Horizontal Property (Condominiums) of the Code of Iowa (2017) an attachment to the
declaration will be executed by the Redeveloper, the City and the City Assessor allocating a
portion of the Minimum Actual Value to each unit.
3. Developers agree that the difference between the Minimum Actual Values (as
adjusted pursuant to paragraph 2 hereof) and the amount allocate the residential
condominium units (as set forth in paragraph 2 hereof) will be allocated to remainder of the
Project.
4. The Minimum Actual Values (as adjusted pursuant to p�ragraph 2 hereof) herein
established shall be of no further force and effect and this MinimuFn Assessment Agreement
shall terminate on December 31, 2034.
Nothing herein shabe deemed to waive the Developers' fights under Iowa Code section
403.6(19) (2017), as amende to contest that portion of any ac al value assignment made by the
Assessor in excess of the MinIT
um Actual Values (as adjus d pursuant to paragraph 2 hereof)
established herein. In no event however, except as set orth paragraph 2 hereof, shall the
Developers seek to reduce the ac al value assigned ) ow the Minimum Actual Value (as
adjusted pursuant to paragraph 2 here established herein during the term of this Agreement.
5. This Minimum Assessn
Developer with the Recorder of Johnson
6. Developer has provided a title
as of the date of this Assessment Agreement <
Assessment Agreement, which consents ar7
it shall be promptly recorded by the
at Developer's expense.
n to the City listing all lienholders of record
such lienholders have signed consents to this
�Jiereto and made a part hereof.
7. Neither the preambles 96r provisions of this Minimum Assessment Agreement are
intended to, nor shall be construed as, modifying the terms of the Agreement for Private
Development between the City; �rDevelopers.
8. This
upon the successors and
ATTEST:
LE
.ssessment Agreement shall inure
of the parties.
City Clerk
CITY OF IOWA CITY,
43
the benefit of and be binding
, Mayor
HIERONYMI PARTNERSHIP, L.L.P.,
BY:
HIERONYMUS SQUARE DEVELOP/,L.L.C.,
BY:
IOWA CITY ES HOTEL, L.L.C.
BY:
L.L.C.
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
On this day of
before me a Notary Public in and for
said County, personally appeared and \
being duly sworn, did say that they are the Mayor and Cit
Iowa City, Iowa, a Municipal Corporation, created and existi
Iowa, and said Mayor and City Clerk acknowledged said inst
of said Municipal Corporation by themsoluntarily executed.
i
STATE OF IO
161810MMK919
Notary Public in and
)SS
, to me personally known, who
k, respectively, of the City of
under the laws of the State of
nent to be the free act and deed
the State
This instrument was acknowledged before me on this day of , 2Q1 7, by
, as of HIERONYMI PARTNERSHIP, L.L.P.,
Notary Public in and for the State of Iowa
44
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 2017, by
as of HIER'-o T 7 SQUARE
DEVELOPERS, L.L.C.
Notary Public in and for the Stat of Iowa
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was ack
. as
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was acknowledged
. as
)SS
before me on this _day of 20, by
\ of IOWA CITY ES HOTEL. L.L.C.
in and for the State of Iowa
e on this day of 2017, by
314, L.L.C.
Notary Public in and for th State of Iowa
45
CERTIFICATION OF ASSESSOR
The undersigned, having reviewed the plans and specifications for the Minimum
Improvements to be constructed and the market value assigned to the land upon which the
Minimum Improvements are to be constructed for the development, and b/Agreeme
e opi ion that
the minimum market value contained in the foregoing Minimum Assessmeme t appears
reasonable, hereby certifies as follows: The undersigned Assessor, beinges,onsible for
the assessment of the property subject to the development, upon cof Minimum
Improvements to be made on it and in accordance with the Minimum At Agreement,
certifies that the actual value assigned to such land, building and equipmcompletion of
the redevelopment shall not be less than $ after taking sideration any
factors such as "roll -backs" which would reduce the taxable value of erty. Of this
amount, Dollars () is
determined to be the value
($ ) the value of
Assessment Agreement pursuant
of the land and _
the buildings thereon
th the terms hereof.
STATE OF IOWA )
COUNTY OF JOHNSON )
Subscribed and sworn to before me
Iowa City, Iowa.
Date
until
Assessor for Iowa Vity. Iowa
Public in and for
46
Dollars
of this Minimum
Assessor for
County, Iowa
EXHIBIT G
TEMPORARY CONSTRUCTION EASEMENT AGREEMENT
FOR USE OF (STAGING PROPERTY) AND A PORTION OF THE COURT STREET
TRANSPORTATION CENTER
This Temporary Construction Easement Agreement is made on this day of
, 2017, by and among the CITY OF IOWA CITY, IOW , ("City");
HIERONYMI PARTNERSHIP, L.L.P., an Iowa limited liability partnership; HI ONYMUS
SQUARE DEVELOPERS, L.L.C., an Iowa limited liability company, IOWA Cl ES HOTEL,
L.L.C., an Iowa limited liability company, and HS314, L.L.C., an Iowa limited lid ility company
(hereinafter collectively "Developers") /
WHEREAS, Hiemoymi Partnership, L.L.P is the fee owner of certain real estate addressed as
and legally described -(
"Dev opment Property");
and
WHEREAS, the City of Iowa Pity is the fee owner of certain real estate legally described as
( taging Property"); and
WHEREAS, Developers and the ity have entered into ar� Agreement for the Private
Development of said Development Pro y, with a memorandum of said agreement having been
recorded with the Johnson County Recordle in Book Page _ on 20_;
l
WHEREAS, Developers have requested the City rmit,,,the temporary private use of the certain
portions of the Staging Property and the Court Street ansportafion Center parking facility, all as
shown on the Exhibit A, attached hereto and incorporq erein by this reference; and
WHEREAS, the City of Iowa City, Iowa, is
public property; and
WHEREAS, the Public Works Director
impacts on municipal functions will be
uses is in the public interest; and 11
ale for 11 a care, supervision, and control of
the requested pri ate use, and finds that the
and also finds tha such temporary private
WHEREAS, the Director of Transpoftation Services has reviewed the requested temporary private
use of the Staging Area and the Court Street Transportation Center parking facility, and finds that
with certain conditions to mitigate the loss of parking spaces in the Court Street Transportation
Center, such request is reasonable
NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE PROMISES HEREIN, THE
PARTIES HERETO AGREE AS FOLLOWS:
47
1. In consideration of the City's permission herein to temporarily close a portion of a City
property during construction of the project detailed in the above-described Development
Agreement, Developers agree to:
a. secure the temporary easement area shown in Exhibit A against vehicular or p estnan
traffic by providing adequate pedestrian passage, adequate traffic control, by roviding
adequate signage, and by securing all open excavations from pedestrians, thereb ensuring
public safety.
2. In consideration of Developers' promises herein, the City agrees to allow Developers to
temporarily fence and close that area shown on Exhibit A pursuant to the 11nlutations set forth
in this easement agreement and the Agreement for Development.
3. Developers agree to provide, keep in place, and maintain in gopd working condition
certain fencing and signage necessary to do the following:
a. route pedestriansthlough or around the closed area as approved by the City during
construction;
b. provide adequate advanc warning of such closure d
c. provide for the orderly and\\1�edictable movemegt'of traffic.
All signage shall be in accordancewith the Federal Highway Administration Manual on
ffi
Uniform Trac Control Devices. /
4. Developers shall be responsible for
within the easement which could be d
not limited to, signage, parking gate)
electrical services.
5. Developers agree to
claims for bodily injury,
public property under th
employees and assigns
be alleged against the i
>val, storage, and replacement of items located
during the construction. Items include, but are
,s, bricks, planters, downspouts, lighting and
iffy, defend and ho
or property damage
;ement, and those o
the City harmless against any and all
sine out of their actions and use of the
cifically including any and all
as a result of its decision to all
contractors, subcontractors, agents,
aims and/or liabilities which may
a portion of public roperty described herein. Developers
liability insuran(in the minimum amounts of $500,000
aggregate
coverage
insurance
shall subrl
injury, and $250,000 aggregate property do
pers to temporarily close
agree to carry Class II
occurrence, $1 million
with contractual liability
)tided. Developers shall famish a certificate of insurance evidencing said valid
verage to City, which certificate must be satisfactory to the City. Developers
a certificate of insurance to the City prior to the commencement of construction.
6. If Developers fails to restore the easement area to the City's satisfaction as required in this
Agreement, the City may restore the easement area, and the cost thereof shall be billed to
M
Developers for payment to City. Upon Developers' failure to pay said billing, the removal
costs shall be certified to Johnson County as a statutory lien and assessed against the property
and collected in the same manner as a property tax, as provided in Section 364.12(2)(e), Iowa
Code (2017).
7. City and Developers agree this Temporary Agreement shall remain in effect/until
completion of the Project and restoration of the easement area pursuant to Section 6 erem,
with an anticipated commencement and completion date as set forth in2.4 of the
Development Agreement described above.
8. Notwithstanding the above, Developers agree to cease and desist their tempprary use and
closure of the easement area and to remove any and all obstructions from said//easement area
in the event of a breach of this Agreement.
9. Developers acknowledge akd agree that no property right is confeyied by this grant of
permission to use the easement\uea. 7
10. This Agreement shall consti to a covenant running with th�Jand, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns
of both parties.
11. This Agreement for Temporary
County Recorder's Office, at Develi
W,
shall be recorded in the Johnson
EXHIBIT H
CONCEPT PLAN
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EXHIBIT I
TEMPORARY USE OF RIGHT-OF-WAY AGREEMENT
This Agreement is made by and between , hereinafter "Developers" and the City of
Iowa City, Iowa, a municipal corporation, hereinafter referred to as "City."
WHEREAS, Developers are the fee owner of certain real estate addressed as 711 S. Gilbert Street,
Iowa City, Iowa; and
WHEREAS, Developers are undertaking construction of a hotel and mixed use Puilding on the
property, and have requested the right to install certain temporary intrusions into he public right-
of-way; and
WHEREAS, the City of Iowa City, Iowa is responsible for the care, supsion, and control of
public right-of-way; and
WHEREAS, the De artment of Public Works has reviewed the propgsed temporary use of the
right -of --way, and finthe temporary use is not structural, is a miiiii�ial intrusion into the public
right-of-way, and also ds that such temporary use is in the public ifiterest.
NOW, THEREFORE, INS TUAL CONSIDERATION OFPE PROMISES HEREIN, THE
CHAUNCEY AND THE C AGREE AS FOLLOWS:
1. In consideration of the Cit ' permission herein toemporarily use of that portion of City
right-of-way for the Project �escribed above/Developers agree to maintain adequate
pedestrian passage, traffic control, and signage as may be necessary to reasonably ensure
public safety.
2. In consideration of Developers' protpises herein, the City agrees to allow Developers to
temporarily use that portion of the rigl�- o f -way shown on the attached exhibit for the
purpose of constructing theMinimum Improvements described in the Developer's
Agreement executed by tiam the par�'es hereto on or about 2017,
recorded in Book Page in the records of the Johnson County, Iowa
Recorder's Office. /
3. Developers shall be.fesponsible for the removal, storag , and replacement of items located
within the right-of-way which could be damaged during t) c construction of such temporary
uses. Items include, but are not limited to, downspouts, \ lectrical services, signage and
sidewalks.
4. Developers agree to indemnify, defend and hold the City harmless against any and all
claims for bodily injury, death or property damage arising out of its actions and use of the
public right-of-way under this agreement, and those of its contractors, subcontractors,
agents, employees and assigns specifically including any and all claims and/or liabilities
which may be alleged against the City as a result of its decision to allow Developers to
51
temporarily close a portion of right-of-way adjacent to their property as described herein.
Developers further agree to carry Class II liability insurance in the minimum amounts of
$500,000 each occurrence, $1 million aggregate bodily injury, and $250,000 aggregate
property damage with contractual liability coverage included. Developers shall furnish a
certificate of insurance evidencing said valid insurance coverage to City, which certificate
must be satisfactory to the City. Developers shall submit a certificate of insurance to the
City prior to the commencement of construction of the temporary uses contemplated
herein.
5. After the construction is complete, Developers agrees to restore any and all portions of the
right-of-way substantially to its original condition. If Developers fails to restore the right-
of-way to the City's satisfaction as required in this paragraph, the City may restore the
right-of-way, and the cost thereof shall be billed to Developers for payment to City Upon
Developers' failure to pay said billing, the removal costs shall be certified to ohnson
County as a statutory lien and assessed against the property and collected i the same
manner as a property tax, as provided in Section 364.12(2)(e), Iowa Code (201 .
6. Developers agree to cease and des, t its temporary use and/or closure of th�public right-of-
way and to remove any and all obs ctions from said right -of --way at y time upon the
occurrence of any one of the followi\and/or
a. a breach of this agreement;
b. the use of the property changestemporary use�of the public right-of-way is
no longer needed or appropriatined by the City;
C. within thirty (30) calendar days after the
Developers.
7. If Developers fail to remove any obstructions, ba
of -way as required in this agreement, the Ci
Vn
signage, and the cost thereof shall be bill to
written notice of removal to
or signage from the public right-
ve the obstructions, barricades or
ers for payment to City. Upon
Developers' failure to pay said billing, t}�e removal cost shall be certified to Johnson
County as a statutory lien and assessed/against the prope and collected in the same
manner as a property tax, as provided jn Section 364.12(2)(e), I Yva Code (2017).
8. Developers acknowledge and agree that no property right is coon ed by this grant of
permission to use the publi right -of --way; that the City is not emp eyed to grant a
permanent use of its right 9 -way for private purposes;
9. This Agreement shall, constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns
of both parties.
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10. This Agreement for Temporary Use of Public Right -of -Way shall be recorded in the
Johnson County Recorder's Office, at Developers' expense.
Dated this day of
CITY OF IOWA CITY
Geoff Fruin, City Manager
Approved by:
City Attorney's Office
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
El
DEVELOPERS
0
CITY ACKNOWLEDGMENT
On this _ day of 20 before me, the u
for the State of Iowa, personally appeared Geoff Fruiin to me
by me duly sworn, did say that he is the 'ty Manager of th
foregoing instrument was signed on behal f the C/unntar
Council, and that he acknowledged the execu 'on of
deed and the voluntary act and deed of the City, it
ped, a Notary Public in and
onally known, and, who, being
:ity of Iowa City, Iowa; that the
a City, by authority of its City
lent to be his voluntary act and
executed.
My commisNkon expires:
STATE OF IOWA ) \
ss:
JOHNSON COUNTY)
This instrument w acknowledged before me on this day c
and , as members of
Notary Public in and for the State of Iowa
53
20_, by
EXHIBIT J
AFFORDABLE HOUSING USE DEED RESTRICTION
[If owner -occupied affordable housing, insert legal description of the specific units to be
designated as "affordable housing". Ifaffordable rental units, insert legal description of the
entire property]
1. The above-described property is subject to affordable housing use restrictions setf fth in Iowa
City Code of Ordinances 14-2G-8 and an Agreement for Private Development, entejd into on or
about , 2017 between City and recorded in
Book. Page _ of the records of the Johnson County, Iowa Recorder.
2. The parties acknowledge that said Agreement is a covenant running wjth the land and with
title to the land, and shall remain in full force and effect as a covenant with title to the land. The
City is benefited by the above-describeo affordable housing use re ctions, and thus must
approve any sale of the property upon i s determination that thejale complies with the sale
restrictions set forth in Iowa City Code of rdinances 14-2G-8D)(d), as may be amended from
time to time.
3. The above-described use restrictions temi)nate on (20 years
from issuance of CO).
54
EXHIBIT K.
WAGE THEFT AFFIDAVIT
STATE OF IOWA )
) ss:
JOHNSON COUNTY)
I, , upon being duly swom, state as follows: /
1. I am the of ("Developer") and h �4e
the authority to execute this affidavit on behaf of said Developer and any pe or
entity with an ownership interest in said Dev oper of more than 25%.
2. Neither Developer nor any person or entity wi
25% of Developer has been adjudicated
administrative proceeding of committing a repe
Wage Payment Collection law, the Iowa Mi
Labor Standards Act or any comparable state
governs the payment of wages in the last 5 years.
This instrument was acknowledged before me on this
as of
R1
55
an ownership interest of more than
lty or liable in any Judicial or
ted or willful violati n of the Iowa
mum Wage Act,/the Federal Fair
Statute or local ordinance, which
by
State of Iowa
EXHIBIT L
Iowa City Riverfront Crossings
Affordable Housing Requirement
Administrative Rules
Adopted August 22, 2017
The Iowa City City Council adopted Ordinance 16-4668 on July 5, 2016 to
Affordable Housing Requirement in certain areas of the City. Those requ
codified in Iowa City Code of Ordinances 14-2G8. Pursuant to 14-2G-1
Manager does hereby establish rules deemed necessary and not inconsis
2G-8 to assure that the purposes of the Affordable Housing Requi
accomplished. These Administrative Rules shall be placed on file with�t�
and made available on the City of Iowa City website.
I. General Requirements
Rezoning
stablf h an
me - s are
I, he City
t with 14-
nents are
City Clerk
Upon rezoning property to a Rivert nt Crossings zoning designation, the owner will be
required to enter into an agreement 'th the City to indicpte which method or methods it
will use to achieve the affordable ho sing requirement. Typically this agreement will
take the form of a conditional zoning a, reement, w ich must be executed prior to the
close of the public hearing on the rezonin
Subdivision
Upon subdividing property in the
agreement indicating the method
affordable housing requirements/
Agreement executed contempopne
Building Permit
ront Crossings District, if there is no zoning
iethods the owner will use to achieve the
ndication shall be made in the Developer's
with the final plat approval.
Contemporaneously,,,With an application for a buildin permit, an owner or developer
shall complete tD "Application Regarding Riverfront Crossings Affordable Housing
Requirement', attached hereto as Exhibit A. This a plication shall be filed with
Neighborhood/Development Services (NDS) with the applicption for the building permit.
NDS will process this application along with the building permit application, so that the
building permit and an affordable housing agreement, can be entered into
contemporaneously. No building permit may be issued unless and until such an
agreement has been executed. The agreement shall take a form substantially similar to
that attached hereto as Exhibit B. The City Manager has the authority to execute this
56
agreement, which shall be recorded in the Johnson County Recorder's Office pursuant
to 14 -2G -8(c).
II. On -Site Owner -Occupied Affordable Housing
Determining Income
The seller shall be responsible for determining the income of the prospective buyer's
household to determine eligibility for the affordable owner -occupied units before closing
on the sale. If the sale does not close within six months after the income -eligibility
determination has been made, the seller must re-examine the homebuyer' income.
The City's consent to the sale is required and will be granted upon a City's
confirmation that the buyer's household is income eligible and the pur hase price
complies with the ordinance and these rules. At least 30 days prior to clo ing, after the
seller determines that the buyer is income -eligible, the seller must sub it the requisite
income documentation to the Director of Neighborhood Developm n. Services. The
Director or designee will, within 5 business days of the submittal, review the
documentation, request any necessary additional documentation and confirm or deny
the income -qualification determination This confirmation or denial will be in writing sent
to the seller either via email or trough the United States P �al Service at the seller's
discretion. \
The seller and the City shall use the nnual income defpibon set forth in the HUD Part
5, Section 8 regulations found at 2 CFR 5.609, as amended, to determine if the
household is income -eligible. The Part definitionzof income is the gross amount of
income of all adult household members at is anticipated to be received during the
coming 12 -month period. In performing its evi l
shall submit a completed "Calculating Part / r
proposed buyer's income and shall pro�de h
thereto. Income -eligibility must be documented
statements (or three months of p7yfstubs),
assistance agencies that identify assistance
assistance, etc.), and document ion of income
from retirement funds or pensions.
of the income qualification, the seller
ual Income" (Exhibit C) detailing the
supporting documentation attached
th source documents such as wage
ink statements, letters from public
a mounts (Social Security, welfare
eived in periodic amounts such as
Exhibit D provides a corn rFehensive list of income that �s included and excluded from
the calculations of annual income under Part 5. There is no asset limitation for the
household; however /actual income from assets is recognized under the Part 5
definition, even if the household elects not to receive the )ncome. For example, if a
household elects t9/reinvest the interest or dividends from an sset, it is still counted as
income. \
Median income is based on HUD's HOME income limits for the IowA City, IA HUD Metro
area, adjusted annually per household size (current limits identified in Exhibit F). Median
income is based on household size. If a household consists of a parent and child, it is a
57
two person household. If two unrelated adults share a household, incomes from both
must be included as they would be considered a two person household.
If the homebuyer is a full-time student, the student is eligible if neither parent claims the
student as a dependent on their state or federal taxes. Documentation from both
parents must be submitted to verify, unless extenuating circumstances make such
production impossible.
Dwelling Unit Size and Quality
The affordable dwelling units must be comparable to the market rate units of tv same
type. The affordable dwelling units shall be at least 80% of the floor area oft market
rate units. The affordable housing dwelling units should have the same umber of
bedrooms and types of amenities as the market rate units, unless otherwi a approved
by the City Manager.
Location
The affordable housing units shall be distr uled throughout the 6velopment to avoid
concentration of units, unless a different istribution will he
t in the provision of
additional affordable housing units. This ma be approved on case by case basis by
the City Manager. Should the City Manager agree to allow he affordable units to be
located together, a finding that such a con entration w)'1 result in the provision of
additional affordable housing units should bg set fofth in the Affordable Housing
Agreement. The additional affordable housing nits cmated to allow this concentration
will be subject to the same use restrictions as any o er required affordable housing unit
under 14-2G-8.
Sales Restrictions
For newly -constructed owner-occupie /affordable hdusing units, the 2017 maximum
sale price is $214,000, regardless o the number of bedrooms, which is based upon the
current HUD Homeownership Sal § Price Limit for Johnson County. The maximum sale
price for subsequent sales of owner -occupied affordab) t housing unit during the term
of affordability (established)n 14-2G-8) shall not exceed tree original purchase amount
paid by the original ho owner or the HUD Homeowner ip Sales Price Limits for
Johnson County, IA, adjusted annually, whichever is greater, cept for those allowable
expenses set forth iq 4-2G-8D(2)(d).
In all cases where an owner -occupied affordable housing unit is. to be sold, the City
must approve the purchase price and the determination that thl buyer is income -
eligible. The seller must submit any and all documentation supporting the sales price to
the Director of NDS in a timely manner at least 30 days prior to closing in order for the
City to analyze the information and properly consider the request prior to closing. In
determining whether to approve a sale price, the City will consider the following::
W
1) "Customary closing costs and costs of sale to be those identified in the Iowa
closing disclosure statement, such as title services, appraisal, recording and
loan origination fees.
2) Permanent Capital Improvements. In cases where the homeowner has
installed capital improvements, the value of these improvements, as
documented by receipts and the building permit documents, may increase the
sales price by the amount of the eligible improvement. A capital improvement
increases your home's value, while a non-eligible repair returns something to its
original condition. Replacing a countertop or bathroom feature would not be
considered an eligible capital improvement. An example of a capital
improvement would be the addition of a bathroom.
At least 30 days prior to closing, t e seller must submit the requis' a documentation to
support the sale price to the Dire for of NDS. The Director or signee will, within 5
business days of the submittal, eview the documentation, quest any necessary
additional documentation, and co irm or den/email
' e. This confirmation or
denial will be in writing sent to the Iler eitherhrough the United States
Postal Service at the seller's discretio .
Owners are cautioned about significant apital ias the home must be sold
to an income eligible homebuyer under 110% ome. if the price exceeds
the maximum HUD Homeownership Sales Prictential number of income
eligible buyers may be reduced. \
III. On-site Affordable Rental Housina
The initial income qualification process Kr on -s
same process -as set forth above for9 -site ow
that an owner must review the inc me qualific
affordable housing dwelling uni annually to
reexamination shall be comple d annually and
lease renewals, the City will ccept a copy of
1040) submitted by all aduJ members of the hoi
to affordable rental housing shall be the
ner-occupied affordable housing, except
3tNns for tenants occupying designated
de ermine continued compliance. The
befo a execution of a lease renewal. For
the ost recent federal tax form (Form
iseholc� as income verification.
If the tenant is no Ion 6r income eligible, notwithstandinhe location requirement set
forth in the Code andlas approved by the Director of ND , the next available unit with
the same bedroom size or larger in the project property n6ust be rented to an income
eligible tenant.
The property owner shall submit an Annual Tenant Housing eport (Exhibit E) for the
designated affordable housing rental units. The report shall b submitted each January
30 for the preceding calendar year throughout the complian period. At a minimum,
the report shall include the name of the household, unit nu ber/address, lease dates
(most recent lease or renewal date), rent amount, number of bedrooms, size and
59
income of the household. Neighborhood Services staff shall verify compliance within 30
days and may request income documentation for all or a portion of the qualifying
tenants.
The property owner shall retain tenant income and rent for the most recent three years,
until three years after the compliance period.
Rental Rate
The monthly rate for the affordable housing units shall not exceed the HO E Fair
Market Rent, per applicable bedroom size, as published by HUD for the to City, IA
HUD metro area, as adjusted annually. These rents may be foun online at
www.icgov.org/actionplan under HOME Table of Income Guidelines an Fair Market
Rent (2017 rents identified in Exhibit F).
If the owner desires to satisfy this obligati n through off-site affordable housing or
through the dedication of land, the owner mut establish that it would be infeasible to
provide the affordable units on-site or to prove e a fee in lieu of the on-site units, as
reasonably determined by the City. If the own r is able to establish this, the City's
determination must be reflected in the findings oftoe conditional zoning agreement.
If the property is not subject to a conditional zoning agreement already establishing the
method of achieving affordability and the owner de i s to satisfy this obligation through
off-site affordable housing or through the dedication ibf land, the owner must establish
that it would be infeasible to provide the aff9rdable units on-site or to provide a fee in
lieu of the on-site units, as reasonably d�ermined by the City. If the owner is able to
establish this, the City's determination must be reflected in the findings of the affordable
housing agreement.
In reasonably determining whet'h6r an owner has establisheid that providing the units
on-site or paying the fee in lie}rthereof is not feasible, the City`,will consider such factors
as whether the cost of constructing the unit exceeds the current maximum sale price for
affordable units, as set forth in the Code of Ordinances, and whether the common
maintenance expenses,each owner would be required to pay would be cost prohibitive
for income -qualified households.
The off-site affordable housing units may be satisfied by designating existing or newly
constructed dwelling units in the Riverfront Crossings District, as defined in Iowa City
Code 14-2G-2, as may be amended from time to time, as affordable dwelling units,
subject to the use limitations set forth in 14-2G-8 and herein.
V. Fee -in -Lieu Contribution
Z
As of July 5, 2016, the City Council adopted a resolution setting the fee at $80,872 per
unit. The fee -in -lieu contribution shall be made prior to issuance of any building permit
for the development for which affordable housing is required pursuant to City Code 14-
213-8.
Exhibits
A. Application Regarding Riverfront Crossing Affordable Housing Requirement
B. Affordable Housing Agreement
C. Calculating Part 5 Annual Income
D. Income Inclusions and Exclusions
E. Annual Tenant Housing Report Form
F. Table of Income and Rent Limits
61
Calculating Part 5 Annual Income
EXHIBIT -
CITY OF IOWA CITY
1.
Name: 2. Household Size: 3. Project Address:
ASSETS
Family Current Cash Value
Member Asset Description of Assets
Actual Income from
Assets
4.
Net Cash Value of Assets ....................... --.... 14.
5.
Total Actual Income Assets........................................................................
5.
6.
If line 4 is greater than $5,000, multiply line by .02 (Passbook Rate) and
enter results here otherwise, leave blank
6.
ANTICIPATED ANNUAL INCOME
Family a. Wages/ b. Benefitst c. Public d.
Members Salaries Pensions Assistance
Other
Income
Asset
Income
Enter the
greaterof
lines 5 or 8
from above in
e.
7.
Totals a. b. c. d.
e.
6.
Enter total of items from 7a. through 7e. This is the Ann !Inc pre ........................
18.
Signature
Income
% of Median Income
Maximum Income Limit of Household
(See Affordable Housing Agreement): Circle: 60% 80% 110%
INCOME ELIGIBLE: Circle: Yes No
(Attach supporting income documentation to this form. Retain for three years.)
Revised 6/2 712 01 6
EXHIBIT %J�. 4350.3 REV
Income Inclusions and Exclusions
24 CFR 6.609(b) and (c)
Examples Included In parentheses have been added to the regulatory language for clarification.
INCOME INCLUSIONS
(1) The full amountbefore any payroll deductions, of wages and salaries, overtime pay,
commissions, fees, tips and bonuses, and other compensation for personal services;
(2) The net income from operation of a business or Profession. Expenditures for business expansion
or amortization of capital indebtedness shall not be used as deductions In determining net Inco
An allowance for depreciation of assets used in a business or profession may be deducted, ad
on straight line depreciation, as provided In Internal Revenue Service regulations. Any w d/////drawal
of cash or assets from the operation of a business or profession will be included in into e, except
to the extent the withdrawal Is reimbursement of cash or assets Invested in the ops on by the
family; l
(3) Interest, dividends, and other net Income o ny kind from real or personal P?
kerty. Expenditures
for amortization of capital Indebtedness shall of be used as deductions it elennining net
income. An allowance for depreciation Is perm ed only as authorized I paragraph (2) above.
Any withdrawal of cash or assets from en Invest nt will be included' Income, except to the
extent the withdrawal is reimbursement of cash orVsets investegby the family. Where the family
has net family assets In excess of $5,000, annual inc a shall ludo the greeter of the actual
Income derived from all net family assets or a percent of a value of such assets based on the
current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received fromp6clal sect) ity, annuities, Insurance policies,
retirement funds, pensions, disability or death bgifts, and oth similar types of periodic receipts,
including a lump -sum amount or prospective onlhly amounts fo he delayed start of a "periodic
amount (e.g., Black Lung Sick beneefs, V t raps Disability, Depen nt Indemnity Compensation,
payments to the widow of a servicer flied in action). See paregrr3 h (13) under Income
Exclusions for an exception to this ragraph,'
(5) Payments in Eau of earning_y6ch as unemployment, disability compensattion, worker's
compensation, and seveWoe pay, except as provided in paragraph (3) uni(er Income Exclusions;
(6) Welfare Assistance.
(a) Welfare assistance received by the family.
(b) If the welfare assistance payment includes an amount specifically designated for shelter and
utilities that is subject to adjustment by the welfare assistance agency in accordance with the
actual cost of shelter and utilities. the amount of welfare assistance income to be included as
HUD Omupency Handbook 1 00107
Chapter 5: Determining Income & Calculating Rem
4350.3 REV -1 CHG3
income shall consist of.
(c) The amount of the allowance or grant exclusive of the amount specifically designated for shelter
or utilities; plus
(d) The maximum amount that the welfare assistance agency could In fact allow the family for
shelter and utilities. If the family's welfare assistance is ratably reduced from the standard pf
need by applying a percentage, the amount calculated under this paragraph shall be the
amount resulting from one application of the percentage.
(7) Periodic and determinable allowances, such as alimony and child support payments, a regularr
contributions or gifts received from organizations or from persons not residing in the ailing; and
(8) All regular oav, special pay, and allowances of a member of the Armed Forces, a pt as provided
In paragraph (7) under Income Exclusions.
(9) For Section 8 programs only and as provided In 24 CFR 5.612, any financi assistance, in excess
of amounts received for tultion, that an individual receives under the High Education Act of 1965
(20 U.S.C. 1001 et seq.), from private sources, or from an institution of gher education (as defined
under the Higher Education Act of 1955 (20 U.S. A.
1002)), shall be idered income to that
individual, except that financial assistance descri !n this parag ph is not considered annual
Income for persons over the age of 23 with depend t children. or purposes of this paragraph
'financial assistance" does not include loan proceed for the p rpose of determining income.
*(Note: This paragraph also does not apply to a etude t wh is living with his/her parents who are
applying for or receiving Section 8 assistance.)'
INCOME D(LCUSIONS:
(1) Income from employment of children (includin star child ) under the age of 18 years;
(2) Payments received for the care of foster dram or foster adu s (usually persons with diseb(Ilties
unrelated to the tenant family, who are able to live abne);
(3) Lump -sum additions to family as such as inheritances, insu cc
payments (including
payments under health and a ant insurance and worker's com nation), capital gains, and
settlement for personal or p arty losses, except as provided In pa graph (5) under Income
Inclusions;
(4) Amounts received by fhe family that are specifically for, or in reimburseant of, the cost of medical
expenses for a7in
mily member,
(5) Income of a INide,as defined in 24 CFR 5.403;
(6) The full amount of student financial assistance paid directly to the student or to the educational
Institution (sea Income Inclusion (9), above, for students receiving Section 8 assistance);
(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire
(e.g., in the past, special pay included Operation Desert Storm);
(8) (a) Amounts received under training programs funded by HUD (e.g., training received under
Section 3);
HUD Occupancy Handbook 2 06/09
Chapter 5: Determining Income 8 Calculating Rent
4350.3 REV -1
(b) Amounts received by a person with a disability that are disregarded for a limited time for
purposes of supplemental security Income eligibility and benefits because they are set-aside for
use under a Plan to Attain Self -Sufficiency (PASS);
(c) Amounts received by a participant In other publicly assisted programa that are specifically for or
In reimbursement of out-of-pocket expenses incurred (special equipment, clothing,
transportation, child care, etc.) and which are made solely to allow participation in a specific
program;
(d) Amounts received under a resident service stipend. A resident service atipend is a mo est
amount (not to exceed $200 per month) received by a resident for performing ase for the
owner, on a part-time basis, that enhances the quality of life in the project Such s ees may
Include, but are not limited to, fire atrol, hall monitoring, lawn maintenance, an, al an
coordination. No reside may receive more then one such stipend ring the same
period of time; or
(a) Incremental earnings and ben resulting to any family member froartieipetion in gtallfying
Mate or local employment trainln programs (including training prog of affiliated with a
local government) and training o a family member as a resident n ement staff person.
Amounts excluded by this provisl n must be received under erg M training programs with
clearly defined goals and objectiv s, and are excluded only fpf W period during which the
family member participates in the rnployment training progra
(9) Temporary, nonrecurring, or sporadic inco�neL(includtng gifts);
(10) Reparation payments paid by a foreign govotrn ant pursuWd to claims filed under the laws of that
government by persons who were persecuted ring the azi era. (Ermmplea include payments by
the German and Japanese govemrr fora Masp6mmitted during the Nazi era);
(11) Earnings in excess of $480 f/full-timee stud t 18 years or older (excluding the head of
household and spouse);
(12) Adoption assistance paymen80 per aQOpted child;
(13) Deferred periodic amounts ftel security Inn" and social security benefits that are
receives in a lump sum amoective monthly ernounta;
(14) Amounts received by the fam of refunds or rebel under state or focal law for property
taxes paid an the dwellingyntt;
(15) Amounts paid by a st ttte agency to a family with a member who has velopmental disability and is
living at home to et the cost of services and equipment needed to k the developmentally
disabled faml tuber at home; or \
(18) Amounts speclficaly excluded by any other federal statute from consideretr n as income for purposes
of determining eligibility or benefits under a category of assistance programs qat includes assistance
under any program to which the exclusions set forth in 24 CFR 5.809(c) scapi A notice will be
published In the Federal Registerand distributed to housing owners Identifying a benefits that quality
for this exclusion. Updates will be published and distributed when necessary.
HUD Occupancy Handbook 3 00107
Chapter 5: Determining Income & Calculating Rent
4350.3 REV -1
The following is a list of income sources that qualify for that exclusion:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7
U.S.C. 2017 [bll;
(b) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044A,f�),
5058) (employment through AmeriCorps, Volunteers in Service to America [VISTA], RelirerySenior
Volunteer Program, Foster Grandparents Program, youthful offender Incarceration ahem fives,
senior companions);
(c) Payments received under the Alaska Native Claims Settlement Ad (43 U.S.C. 1628[p
(d) Income derived from certain submarginal land of the United States that is held in rust for certain
Indian tribes (25 U.S.C. 459e);
(e) Payments or allowances made under the Department of Health and Human ervices' Low -Income
Home Energy Assistance Program (42 U.S.C. 8624[f]);
(f) Payments received under programs funded in whole or in part under th Job Training Partnership
Act (29 U.S.C. 1552[b]; (effective July 1, 200D, references to Job Treir� ng Partnership Ad shell be
deemed to refer to the corresponding provision of the Workforce Investment Act of 1998 [29 U.S.C.
2931], e.g., employment and trainIV programs for Native Amerlcqns and migrant and seasonal
fans workers, Job Corps, veteransployment programs, state b training programs, career
Intern programs, Americorps);
(g) Income derived from the disposition of ftf
94-540, 90 Stat. 2503-04); \
(h) The first $2,000 of per capke shares receiv
Commission or the U. S. Claims Court and
lands, Including the first $2,000 per year of
derived from interests held in such trust or
(i) Amounts of scholarships funded under title
awards under federal work-study programs
assistance programs (20 U.S.C. 1087uu);,,
to the Grand I !Wr Band of Ottawa Indians (Pub. L -
rd Ment funds awarded by the Indian Clams
Ms of Individual Indians in trust or restricted
eceived by individual Indians from funds
lands (25 U.S.C. 1407-1408);
Higher Education Ad of 1965, including
the Bureau of Indian Affairs student
(D Payments received from programs funodd under Title V f the Older Americans Ad of 1985 (42
U.S.C. 30561% e.g., Green Thumb, $ ntor Aides, Older erican Community Service
Employment Program;
(k) Payments received on or after J uary 1, 1989, from the Agent Orange Settlement Fund or any
other fund established pursue to the sel0ement in In Re Agent -product liability litigation, M.D.L.
No. 381 (E.D.N.Y.);
(1) Payments received under a Maine Indian Claims Settlement Act f 1980 (25 U.S.C. 1721);
(m) The value of any child c provided or arranged (or any amount re ved as payment for such
care or reimbursement or costs incurred for such care) under the Chi Care and Development
Block Grant Act of 19 0 (42 U.S.C. 9858q);
(n) Earned income
red .0
(EITC) refund payments received on or after Ja ary 1, 1991, Including
advanced same ncome credit payments (26 U.S.C. 3201);
(o) Payments by a Indian Claims Commission to the Confederated Tribes and rids of Yakima
Indian Nati or the Apache Tribe of Mescelero Reservation (Pub. L. 95-433); 1
(p) Allowances, earnings, and payments to AmeriCorps participants under the Nation and
Community Service Ad of 1990 (42 U.S.C. 12637[d]);
HUD Occupancy Handbook 4 W07
Chapter 5: Determining Income 8 Calculating Rent
4350.3 RE Z
(v Any allowance paid under the provisions of 38 U.S.C.1805 to a child suffering from spine bifida
who is the child of a Vietnam veteran (38 U.S.C. 1805);
(r) Any amount of crime victim compensation (under the Victims of Crime Act) received through
crime victim assistance (or payment or reimbursement of the cost of such assistance) as
determined under the Victims of Crime Act because of the commisslon of a crime against the
applicant under the Victims of Crime Act (42 U.S.C. 10802); and ,
(s) Allowances, earnings and payments to individuals participating In programs under the
Investment Act of 1998 (29 U.S.C. 2931).
HUD Occupancy Handbook 5 06/07
Chapter 5: Determining Income 8 Calculating Rent
Annual Tenant Housing Report Form— Due January 3e for precadingcalendar year
Name, Phone Number & Email of Perron Completing Form:
Property Address:
Pedod coveted:
Tow,
Memldy
Rent
January 1. 2017 to December 31, 2017
Property Owner..
Requlmd Number of Unit per Onfinance:
Lease Ezpiraeon Date
ExHIBIT E
MT
CITY OF IOWA CITY
Unit><
Neff
Bdrms
Last Na m Gimt wo
Tow,
Memldy
Rent
%
Nadler Income
`
Stm of Nouechold
(ell member)
SfarURen l of Leer
Lease Ezpiraeon Date
1
I cerp''f/at the infonuation above is, to the beat of my knowledge and belief, true, correct and complete. I ane aware that
the information being provided is subject to verification by
ty of Iowa City.
Name
Date
S
on
Hieronymus Square
$40.7 Million project
$8 Million financial
assistance request
Commercial
Hotel
Reta i I
Office
Residential
45 apartments
including 7
affordable
Parking
60 spaces
underground
Hieronymus Square Minimum Improvements
Element Hotel
• 91 unit extended stay hotel
• Full compact kitchen in every room
• Patio, pool, fitness room on second floor
• Access to Court St. Transportation Center
for hotel guest parking
• Gold Green Seal certification
3rd party non-profit environmental
certification for business, hotels
Mixed use buildi
• 15t floor retail
• 2nd floor Class A office space
.3rd -7 1h floor residential apartments
• 45 units , including 7 affordable; at least 2 affordable onsite; up to 5 may pay fee in lieu.
• 60 space garage below grade
• Solar panels: 38,000+ kwh/yr
G
element
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IF I I 1
4'
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m
P...4 Aw
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KerNl.
MKNG 1.111
MKNG 1B SVNE
M KING B SVNS
58' 44518'
I
_ �
1
As if standing on Clinton,
viewing east g
(north/south cross section)
As if standing near new hotel,
viewing north
(east/west cross section)
58' 44518'
PL 05
d5'0 578'
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viewing north
(east/west cross section)
- -� lam.......
3
Land Acquisition
$2,500,000
$2,500,000
$5,000,000
Construction
11,632,500
11,500,000
23,132,500
Site improvements
505,000
505,000
Parking construction
2,500,000
2,500,000
Furnishings
1,852,309
1,852,309
Contingency
731,625
800,000
1,531,625
Architecture and Engineering
625,000
510,000
1,135,000
Proj. Intrst Loan fees, soft costs
638,000
825,000
1,463,000
Marketing, Opening, Franchise
431,396
431,396
Reserves/Working capital
100,000
125,000
225,000
Developer Overhead & Profit
800,000
800,000
TIF rebate financing costs
1,169,006
1,008,940
2,177,946
TOTAL Project Costs
$20,479,836
$20,273,940
$40,753,776
Bank Loan
$11,310,831
$11,140,316
$22,451,147
Required Cash from Developer
4,969,005
5,333,624
10,302,629
Total Financing $20,479,836 $20,273,940 $40,753,776
• Objective - Finance the $5.2 M gap
• Developer takes out loan for $5.2 M to be repaid with TIF rebates
• Rebates occur June 1, 2022 through June 1, 2036
• $600,000 TIF advance on December 31, 2020 after completion of
minimum improvements
• Total not to exceed $8 million or 15 years, whichever comes first
Hieronymus Square aligned with Strategic Priorities
Solid Financial Foundation
• $22 million in new value to tax base
• $250,000 +/- per year in hotel taxes
Strong and Resilient Economy
• Adds office, retail and residential
• Connects downtown with prime Riverfront Crossings lot
Fosters healthier neighborhoods
• Eliminates 'blighted' corner
Encourages vibrant and walkable urban core
• Store front windows
• Set backs
Promotes environmental sustainability
• Roof mounted solar panels on mixed use building
• Green seal gold certification for Element
l�
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
Resolution No. 17-309
Resolution approving the 2017 Iowa City Parks Master Plan.
Whereas, the City of Iowa City has a strategic planning goal of fostering healthy neighborhoods
throughout Iowa City; and
Whereas, the City Council desires to create a park system throughout Iowa City that is
accessible, equitable and welcoming to all residents; and
Whereas, the City Council desired to develop a comprehensive master plan for the parks; and
Whereas, the City Council hired the services of RDG Planning & Design to prepare a park
master plan; and
Whereas, at the August 1, 2017 City Council work session the final draft of the 2017 Iowa City
Parks Master Plan was presented to the City Council; and
Whereas, it is in the best interest of the public to adopt the 2017 Iowa City Parks Master Plan
said Plan.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The 2017 Iowa City Parks Master Plan is approved.
Passed and approved this 19th day of September, 201/7.
2V!��L
Ma or
Appro —(?,e4
Atteszz
ity Clerk City Attorneys Office
Resolution No.
Page 2
It was moved by Dickens and seconded byMims
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT: ABSTAIN:
x
Botchway
x
Cole
x
Dickens
T—
Mims
x
Taylor
x
Thomas
x
Throgmorton
the
"m CITY OF 1 0 WA CIT 09-19-17
-�� COUNCIL ACTION REPO 14
September 19, 2017
Resolution adopting the 2017 Iowa City Parks Master Plan
Prepared By: Juli Seydell Johnson, Director of Parks & Recreation
Reviewed By: Sue Dulek, Assistant City Attorney
Geoff Fruin, City Manager
Fiscal Impact: N/A
Recommendations: Staff: Approval
Commission: Parks Commission Recommendation for Approval, 7/12/17
Attachments: Resolution
Executive Summary:
This resolution approves the 2017 Iowa City Parks Master Plan entitled "Gather Here," which
was presented to City Council at the Aug. 1 work session. The master plan will guide City staff
and officials in creating a park system throughout Iowa City that is accessible, equitable and
welcoming to all residents.
Background / Analysis:
This action will formally adopt the 2017 Iowa City Park Master Plan. The final Draft of the Plan
was presented to Council at the August 1, 2017 work session and the entire document has been
available for review on the City website. hffps://www.icgov.org/city-government/departments-
a nd-d ivisions/parks-and-recreation/master-plan
The creation of the Plan was nearly a 10 month process and included partner group meetings,
stakeholder workshops, an on-line portal for review and comment, a public open house and
participation by the Parks Commission.
The plan prioritizes improvements of existing parks along with additions to provide a full range
of accessible and welcoming park facilities throughout the community. In addition, the plan
prescribes signage, architecture and furnishings that will create a visible identity for City -owned
park spaces.
Adoption of the Park Master Plan, and implementation of its recommendations, will help the City
continue to provide equitable, well-maintained park facilities throughout the community.
r) .
Prepared by: Jason Reichart, Public Works, 410 E. Washington St., Iowa City, IA 52240; (319) 356-5416
Resolution No. 17-310
Resolution approving, authorizing and directing the Mayor to
execute and the City Clerk to attest an Agreement by and
between the City of Iowa City and HR Green, Inc., to provide
engineering consultant services for the Idyllwild Drainage
Diversion Project
Whereas, the City of Iowa City desires to reroute offsite drainage from the northwest comer of the
Idyllwild development around the development and improve deficiencies in the existing storm sewer
system; and
Whereas, the Idyllwild Drainage Diversion Project will include the construction of new storm sewer
under Foster Road and a stormwater bypass along the west side of No Name Road to the Iowa
River; and
Whereas, the City of Iowa City desires the services of a consulting firm to prepare preliminary and
final design for construction of the Idyllwild Drainage Diversion Project; and
Whereas, the City of Iowa City has negotiated an Agreement for said consulting services with HR
Green, Inc., to provide said services; and
Whereas, it is in the public interest to enter into said Consultant Agreement with HR Green, Inc.,
and
Whereas, funds for this project are available in the Other PW — Phase 1 account # P3976.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The Consultant Agreement attached hereto is in the public interest, and is approved as to
form and content.
2. The Mayor and City Clerk are hereby authorized and directed to execute the attached
Consultant Agreement.
3. The City Manager is authorized to execute amendments to the Consultant Agreement as
they may become necessary.
Passed and approved this 19th day of September 2017
Ma or '
App,oved by/ / '
Attest: k
Citq Clerk City Attorney's Office $r/2 % ( t 7
Resolution No. 17_-110
Page 2
It was moved by trims
adopted, and upon roll call there were:
and seconded by Botchway the Resolution be
Ayes: Nays:
Absent:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
CONSULTANT AGREEMENT
IDYLLWILD STORMWATER DRAINAGE DIVERSION PROJECT
THIS AGREEMENT, made and entered into this 19th day of September
2017 by and between the City of Iowa City, a municipal corporation, hereinafter
referred to as the City and HR Green, Inc., of Cedar Rapids, IA, hereinafter referred to as the
Consultant.
WHEREAS, in 2016 HR Green completed the Idyllwild Stormwater Drainage Diversion Project
Study; and
WHEREAS, the study analyzed the Idyllwild watershed, identified deficiencies in the existing
stormwater system, and developed two alternatives to reroute stormwater drainage around
Idyllwild along the west side of No Name (Calibria) Street to the Iowa River; and
WHEREAS, this Idyllwild Drainage Diversion Project will evaluate the study results to determine
the best alternative and develop preliminary pump station design for the Idyllwild Flood Mitigation
System; and
WHEREAS, the City issued a Request for Proposals to provide professional engineering services
for a number of projects, including the Idyllwild Drainage Diversion Project; and
WHEREAS, the City chose HR Green, Inc. based on their previous experience with the study ,
their experience with similar projects and their approach to said stormwater diversion project; and
WHEREAS, the City has negotiated an Agreement for said consulting services with
HR Green, Inc.
NOW THEREFORE, it is agreed by and between the parties hereto that the City does now
contract with the Consultant to provide services as set forth herein.
SCOPE OF SERVICES
Consultant agrees to perform the following services for the City, and to do so in a timely and
satisfactory manner.
Project Understanding
Runoff from largely undeveloped land to the north of Foster Road currently drains through
culverts under Foster Road east of No Name (Calibria) Street and into the storm sewer and
detention pond system of the Idyllwild development. When runoff amounts exceed the pipe
capacity within the development, surface ponding and surface conveyance through the
residential area begins to occur. In addition, during large, intense storm events, the limited
capacity of the existing culvert crossing under Foster Road causes flows to spill onto the
pavement and flow down Foster Road to the intakes at the low point.
The City desires to improve the culvert flow capacity under Foster Road and re-route a portion
of the runoff coming from the north through a drainage system along the west side of No Name
Street directly to the Iowa River. In addition, the City has requested an analysis of pumping
requirements for the Idyllwild development to reduce the inundation risks to homeowners during
-2 -
flood events on the Iowa River, based on preliminary work completed by Hart Frederick
Engineers at the direction of the Idyllwild Homeowner's Association.
Project Tasks
A. Project Administration
A.1 Develop Detailed Work Plan
Prepare written instruction for project staff, providing background, names of contacts,
communications procedures, responsibilities, schedule and budget information for the
project. Establish a detailed project schedule indicating critical dates, milestones, and
deliverables. Prepare a detailed work plan with specific staff assignments, by task,
corresponding to the schedule.
A.2 Coordination with the City
Maintain communications with the City. Meet with the City staff to review progress and
to discuss specific elements of the project design for both alternatives (assume one
kickoff meeting, one meeting following hydraulic modeling, one meeting following
preliminary design, and one meeting following the check plan design submittal, for a
total of four (4) meetings). The meetings will also serve to review schedules and project
goals, establish initial design parameters, promote a dialog, improve the decision-
making process, and expedite design development. Prepare minutes of meetings and
keep documentation of other communications. For budget purposes, it is assumed that
the meetings will be attended by two (2) staff members of the Consultant.
A.3 Coordination with Stakeholders
Support the City in early and on-going engagement with the private property owners
impacted by the proposed work — including the property owners north of Foster Road
who will be affected by the culvert improvements, the Idyllwild homeowners, and the
Elks Lodge, from whom easement will be needed for the proposed drainage bypass.
Assume one (1) public informational meeting that will be attended by two (2) staff
members of the Consultant. The purpose of the meeting will be to provide a brief
overview of the proposed improvements to the property owners and a discussion of the
preliminary plan, as well as gather information on the concerns, priorities and specific
issues of the adjacent property owners and other affected parties. This task includes
preparation of display materials and hand out information. The City will be responsible
for reserving an appropriate meeting facility and notifying the surrounding property
owners of the meeting. This task also includes reviewing the results of the meeting with
City staff and others.
In addition to the public informational meeting, one (1) staff member of the Consultant
will attend up to three (3) one-on-one meetings with individual property owners to
address issues of specific concern to adjacent properties. At least one City staff
member will be present at all individual property owner meetings. Easement
negotiations will be performed by the City. Consultant will provide technical information
with regard to the project design.
AA Project Management
Provide on-going project management for the duration of the project consisting of
interoffice administration and coordination. This will include interoffice meetings, typing
of interoffice memoranda and minutes of meetings, interoffice administration and
coordination of the project, and coordination, monitoring and communicating with project
sub -consultants. Provide budget and schedule management. Maintain the system for
monitoring progress and expenditures to allow monthly tracking. Prepare and submit
monthly progress reports outlining the following:
A.5
B.
i -K
B.2
4W
I
FOP
-3-
• Activities during the reporting period
• Activities planned for the following month
• Problems encountered and recommended solutions
• Overall status
Quality Control Plan
Establish review and checking procedures for project deliverables. Designate
responsibility for implementation of the plan. Quality control will be completed at the
Modeling, Preliminary Design, and Check Plan Design Phases of the project.
Surveying / Utilities
Consultant, or a sub -consultant retained by
mapping, and right-of-way services for the
Iowa South State Plane Coordinate System
All units will be in feet.
Topographic Survey
Consultant, will perform the survey, base
project. The mapping data will utilize the
. Elevations will be based upon NAVD88.
Perform topographic survey north of the Foster Road / No Name Road intersection,
west of No Name Road, and South of the No Name Road / Taft Speedway Intersection
to supplement data provided by the City. Locate topographic features, edge of
roadways, driveways, break lines, fences, signs, buildings, vegetation 4" diameter and
larger, and any other visible structures. Utilities surveyed include location of above
ground evidence, sanitary and storm sewer locations, pipe sizes, and elevations to pipe
flowlines, and an Iowa design information request along with an Iowa design locate
request. Take ground shots to generate a surface for use in design at a 1 -ft contour
interval. Indicate all control upon which the survey was based for use in construction.
Set a minimum of three (3) horizontal control points and one (1) vertical benchmark.
The control will comply with the reference system stated above.
Base Mapping
Prepare an AutoCAD Civil 3D file showing surveyed data with ground contours.
Right -of -Way and Easement Plats
Prepare a right-of-way file showing property lines, lot lines, section lines and adjacent
property owner names. Prepare up to three (3) permanent easement acquisition plats
and legal descriptions as needed for the project. Prepare up to five (5) temporary
easement legal descriptions as needed for construction of the project. The plats and
legal descriptions will comply with the requirements of the Iowa Code. Acquisition of the
required easements shall be by the City and shall occur prior to the bid period.
Utility Coordination
Identify utilities having infrastructure within the project limits and coordinate with
representatives of the various utility companies during the design phase. Advise utilities
of the nature and extent of the improvements and any potential conflicts with existing or
proposed utility systems.
Geotechnical Investigation
Consultant, or a sub -consultant retained by Consultant, will obtain one soil boring at the
proposed pump station location and develop a subsurface characterization and design
soil parameters for the pump station design.
C. Permitting
Participate in consultations with authorities having jurisdictions to approve the design of
the Project and assist in preparation of required permit applications. It is anticipated that
the following permits will be applied for:
MIZ
• Joint Permit Application (DNR/USACE)
• City Floodplain Permit
Prepare the permit applications and provide technical criteria, written descriptions and
design data for the City's use in filing applications for permits. Any fees for permits or
other costs associated with permits and approvals shall be the responsibility of the City.
The schedule for obtaining permits from the various regulatory agencies is not within the
Consultant's control.
D. Preliminary Design
D.1 Hydraulic Modeling
Utilize the existing 2D-XPSWMM model of the Idyllwild Watershed area to size the
culvert improvements under Foster Road and Taft Speedway, size the open channel or
pipe conveyance on the west side of No Name Street, include a sluice gate structure on
the outflow pipe to the Iowa River, design the diversion to send low flows to the Idyllwild
retention pond, and evaluate pumping options for the Idyllwild development to discharge
interior drainage during Iowa River flood events. Model the 2-, 5-, 10- and 100 -year
interior drainage events using the Atlas 14 rainfall data and an SCS Type II 24-hour
storm for both the gravity flow free outfall condition and against a 100 -year Iowa River
tailwater.
Initial design pumping rates provided by Hart Fredrick Engineers will be entered into the
models. Review flows in and out of the Idyllwild development and resulting inundation
maps for each scenario modeled. Review discharge limits for the detention pond, if any.
Assume that the preferred pump station capacity will prevent inundation from reaching
the homes in the Idyllwild development during an Iowa River flood and coincident 10 -
year interior rainfall event; however, to reduce costs, open spaces may have temporary
ponding.
Prepare a technical memo that outlines the modeling results, provides design
recommendations, and includes inundation maps for the modeled scenarios. Meet with
the City to review the alternative pumping scenarios and select the final pump station
capacity for preliminary design.
D.2 Preliminary Design
Prepare preliminary design and estimated construction cost for both alternates.
Civil, Site, Roadway, Storm Sewer. • Prepare preliminary design plans for the culvert
improvements, open channel grading, diversion, storm sewer, sluice gate, and
pavement replacement, as well as a site plan for the pump station, including structure
location and layout, access, ancillary structures, buried piping, standby generator, and
grading plan. Civil design will reference SUDAS and Iowa City design standards and
standard specifications.
Structural: Confirm pump station structure layout with other electrical and mechanical
engineers and develop general structural dimensioning and detail. Determine structural
loadings, wall thicknesses, and overall floor system depths. Determine preliminary
structural foundation design referencing geotechnical recommendations. Prepare draft
structural specifications.
Process: Develop design calculations, including pump hydraulics. Lay out pump station
piping. Establish floor elevation. Develop major sections showing pump station structure,
equipment, and piping. Prepare plans of inlet structure and manual screening facilities.
Determine equipment clearances and access requirements. Prepare piping plans and
-5 -
connection details. Prepare draft specifications for major process equipment. Prepare
preliminary equipment schedule.
Mechanical: Identify mechanical systems for required code compliance. Develop
plumbing and HVAC for pump station. Prepare draft specifications for mechanical
equipment. Coordinate with structural, process, and electrical.
Electrical: Verify electrical service requirements and develop preliminary electric one -line
diagram with service, power distribution and standby power source. Coordinate with
electrical utility for new electric service to pump station site. Prepare proposed route of
major conduits and dimensional layouts of major electrical equipment. Develop motor
control center layout and schedule. Develop with City guidance control concepts and
instrumentation requirements. Determine Client's preferences for electrical equipment
and identify City furnished equipment and other work. Prepare preliminary process and
instrumentation diagrams (P&ID). Identify all major process elements and instruments
including gates, pumps, and other major equipment. Prepare preliminary power and
lighting design layouts including on-site standby power source.
D.3 Preliminary EOPCC
Develop the preliminary opinion of probable construction cost for the work, complete
with description of major bid items, estimated quantities, and unit prices reasonable for
the scope, schedule, and anticipated job site conditions.
DA Preliminary Design Review
Complete an internal quality control (QC) review of the design and make recommended
changes as needed. The QC review will include a review within each discipline as well
as a review of the project across discipline lines. Provide copies of the preliminary
design documents to the City prior to conducting a meeting to review the recommended
improvements and gather feedback.
E. Final Design
Prepare final design plans, specifications, and estimated construction cost for the
project.
EA Check Plan Design
Civil, Site, Roadway, Storm Sewer: Finalize design plans for the selected alternative,
which will include, but not be limited to, culvert improvements, , storm sewer, diversion
system, pavement replacement, and site restoration. Prepare traffic control and erosion
control plans, and a storm water pollution prevention plan (SWPPP) for the project.
Structural: Finalize structural design for pump station. Develop final construction
details. Coordinate with other disciplines.
Process: Finalize pump selection. Detail required gates and piping and valving.
Finalize inner dimensions of pump station wet well. Detail items such as a sump and
sump pump and manual screen. Coordinate with other disciplines.
Mechanical: Finalize design for plumbing and HVAC for the pump station. Develop
plans and specifications for the mechanical systems. Coordinate with other disciplines.
Electrical. Finalize design plans for electrical site work, electric one -line diagram, utility
service and metering, standby power engine -generator and transfer switch, floor/site
plan layouts for lighting and power distribution, related schedules and details, and P&ID
schedule and related diagrams.
E.2 Check Plan EOPCC
Prepare a check plan opinion of probable construction cost for the project. Check plan
opinion of probable construction cost shall be based on representative major project
elements and recent bid information. Detailed quantity takeoffs will be developed for the
check plan opinion of probable construction cost.
E.3 Project Manual
Prepare a Project Manual for the Project, including Notice of Hearing and Letting,
Instruction to Bidders, Bid forms, Bond Forms, Agreement Forms, General Conditions of
Construction Contract, Supplementary General Conditions, and Detailed Construction
Specifications.
EA Check Plan Design Review
Complete an internal quality control (QC) review of the design and make recommended
changes as needed. The QC review will include a review within each discipline as well
as a review of the project across discipline lines. Provide copies of the check plan
design documents to the City prior to conducting a meeting to review the recommended
improvements and gather feedback.
E.5 Final Bid Documents
Prepare the final Project Manual, including Notice of Hearing and Letting, Instruction to
Bidders, Bid Forms, Bond Forms, Agreement Forms, General Conditions of
Construction Contract, and Supplementary General Conditions. Prepare detailed
specifications, special provisions and other documents for the proposed construction
work and for the materials and equipment required.
Submit 100 percent unapproved plans to City staff for final review. Make necessary
modifications to plans and specifications.
Submit two copies of signed plans and specifications each to the City for advertisement
and bid letting. Provide one set of reproducible originals for development of sets of
construction documents.
Finalize the opinion of probable construction cost based on final project quantities with
description of bid items, estimated quantities, and unit prices reasonable for the scope,
schedule, and anticipated job site and conditions.
F. Bid Phase Services
Assist in the preparation of the formal Notice of Hearing and Letting. Publication and
costs shall be borne by the City. Prepare and disseminate an informal notice to
contractors concerning the upcoming Project.
The City will print and disseminate the required number of drawings, specifications, and
contract documents for distribution to prospective bidders for the project.
Answer questions from contractors prior to the letting and issue addenda as appropriate
to interpret, clarify or expand the bidding documents.
Attend a pre-bid meeting with the City and prospective bidders, suppliers, and other
interested parties.
Attend the bid opening, prepare a tabulation of the bids for the City, advise the City on
the responsiveness of the bidders, and assist the City in making the award of contract.
G. Limited Construction Phase Services
GA Attend Pre -Construction Meeting
Attend a preconstruction meeting after award of the construction contract for the project.
It is anticipated that two (2) staff members will attend the meeting.
-7-
G.2 Submittal Review
Review acceptability of the Contractor's submittals, such as shop drawings, product
data, samples and other data, which the Contractor is required to submit, but only for
the limited purpose of checking for conformance with the design concept and the
information shown in the Construction Documents. This review shall not include review
of the accuracy or completeness of details, such as quantities, dimensions, weights or
gauges, fabrication processes, construction means or methods, coordination of the work
with other trades or construction safety precautions, all of which are the sole
responsibility of the Contractor. The Consultant's review shall be conducted with
reasonable promptness while allowing sufficient time in the Consultant's judgment to
permit adequate review. The Consultant shall not be responsible for any deviations from
the Construction Documents not brought to the attention of the Consultant in writing by
the Contractor. The Consultant shall not be required to review partial submissions or
those for which submissions of correlated items have not been received. The Consultant
shall have authority to require special inspection or testing of the work, and shall receive
and review all certificates of inspections, testing, and approvals required by law, rules,
regulations, ordinances, codes, orders or the Plans. This scope of services assumes up
to 24 hours of individual staff time to review Contractor submittals as requested by the
City. Additional review services can be provided if authorized in writing prior to
performance of such additional services.
G.3 Construction Period Questions
Respond to questions from the City during construction and issue necessary
interpretations and clarifications of the Plans. This scope of services assumes up to 20
hours of individual staff time to respond to questions as requested by the City.
Additional services can be provided if authorized in writing prior to performance of such
additional services.
GA Final Field Review
In conjunction with City staff, participate in a field review of the project organized by the
City to determine if the work is substantially completed. Provide comments to the City
regarding the observed completeness and acceptability of the work. It is anticipated that
up to three (3) staff will attend the field review.
G.5 Record Documents
Prepare record drawings showing those changes made during construction, based on
the marked -up drawings and other data furnished by the Contractor and the City's
Resident Construction Observer. Provide City with one (1) hard copy in 11" x 17" format
and one (1) electronic copy of the record drawings in PDF or similar format.
ADDITIONAL SERVICES
The following services are not included in this Agreement. If authorized in writing prior to
performance of such additional services, the Consultant shall furnish or obtain from others the
following services:
1. Additional Geotechnical services not listed above.
2. Architecture services.
3. Development of permits not listed above.
4. Environmental field studies and preparation of environmental documents.
5. Funding application preparation and management.
6. Condemnation services.
7. FEMA Conditional Letter of Map Revision (CLOMR) and Letter of Map Revision (LOMR).
8. Material testing and certification services.
9. Construction survey and staking.
11. TIME OF COMPLETION
The Consultant shall complete the following phases of the Project in accordance with the
schedule shown.
Notice To Proceed
Preliminary Plans (60%) Submittal
Check Plans (90%) Submittal
Final Bid Documents Submittal
September 19, 2017
November 17, 2017
January 5, 2018
February 9, 2018
Schedule assumes City review comments in a timely manner, with a goal of 5 business
days from submittal of Preliminary and Check Plans. Additional review after Final Bid
Documents submittal will be grounds for a supplemental agreement.
III. GENERAL TERMS
A. The Consultant shall not commit any of the following employment practices and
agrees to prohibit the following practices in any subcontracts.
1. To discharge or refuse to hire any individual because of their race, color,
religion, sex, national origin, disability, age, marital status, gender identity,
or sexual orientation.
2. To discriminate against any individual in terms, conditions, or privileges of
employment because of their race, color, religion, sex, national origin,
disability, age, marital status, gender identity, or sexual orientation.
B. Should the City terminate this Agreement, the Consultant shall be paid for all work
and services performed up to the time of termination. However, such sums shall
not be greater than the "lump sum" amount listed in Section IV. The City may
terminate this Agreement upon seven (7) calendar days' written notice to the
Consultant.
C. This Agreement shall be binding upon the successors and assigns of the parties
hereto, provided that no assignment shall be without the written consent of all
Parties to said Agreement.
D. It is understood and agreed that the retention of the Consultant by the City for the
purpose of the Project shall be as an independent contractor and shall be
exclusive, but the Consultant shall have the right to employ such assistance as
may be required for the performance of the Project.
E. It is agreed by the City that all records and files pertaining to information needed by
the Consultant for the project shall be available by said City upon reasonable
request to the Consultant. The City agrees to furnish all reasonable assistance in
the use of these records and files.
F. It is further agreed that no Party to this Agreement shall perform contrary to any
state, federal, or local law or any of the ordinances of the City of Iowa City, Iowa.
G. At the request of the City, the Consultant shall attend meetings of the City Council
relative to the work set forth in this Agreement. Any requests made by the City
shall be given with reasonable notice to the Consultant to assure attendance.
H. The Consultant agrees to furnish, upon termination of this Agreement and upon
demand by the City, copies of all basic notes and sketches, charts, computations,
and any other data prepared or obtained by the Consultant pursuant to this
Agreement without cost, and without restrictions or limitation as to the use relative
to specific projects covered under this Agreement. In such event, the Consultant
shall not be liable for the City's use of such documents on other projects.
I. The Consultant agrees to furnish all reports, specifications, and drawings, with the
seal of a professional engineer affixed thereto or such seal as required by Iowa
law.
J. The City agrees to tender the Consultant all fees in a timely manner, excepting,
however, that failure of the Consultant to satisfactorily perform in accordance with
this Agreement shall constitute grounds for the City to withhold payment of the
amount sufficient to properly complete the Project in accordance with this
Agreement.
K. Should any section of this Agreement be found invalid, it is agreed that the
remaining portion shall be deemed severable from the invalid portion and continue
in full force and effect.
L. Original contract drawings shall become the property of the City. The Consultant
shall be allowed to keep reproducible copies for the Consultant's own filing use.
M. Fees paid for securing approval of authorities having jurisdiction over the Project
will be paid by the City.
N. Upon signing this agreement, Consultant acknowledged that Section 362.5 of the
Iowa Code prohibits a City officer or employee from having an interest in a contract
with the City, and certifies that no employee or officer of the City, which includes
members of the City Council and City boards and commissions, has an interest,
either direct or indirect, in this agreement, that does not fall within the exceptions to
said statutory provision enumerated in Section 362.5.
O. The Consultant agrees at all times material to this Agreement to have and maintain
professional liability insurance covering the Consultant's liability for the
Consultant's negligent acts, errors and omissions to the City in the sum of
$1,000,000.
IV. COMPENSATION FOR SERVICES
Consultant shall perform the above-described Scope of Services for an hourly fee as set forth in
the attached Schedule of Fees, incorporated herein by this reference, with said total fee not to
exceed $192,600.
LVA
-10 -
Project Administration
$ 13,500
Surveying / Utilities / Geotechnical
$ 13,500
Permitting
$ 2,700
Preliminary Design
$ 76,100
Final Design
$ 69,400
Bid Phase
$ 5,700
Construction Phase
$ 11,700
Total
$ 192,600.00
MISCELLANEOUS
A. All provisions of the Agreement shall be reconciled in accordance with the generally
accepted standards of the Engineering Profession.
B. It is further agreed that there are no other considerations or monies contingent upon
or resulting from the execution of this Agreement, that it is the entire Agreement, and
that no other monies or considerations have been solicited.
C. This Agreement shall be interpreted and enforced in accordance with the laws of the
State of Iowa. Any legal proceeding instituted with respect to this Agreement shall be
brought in a court of competent jurisdiction in Johnson County, Iowa. The parties
hereto hereby submit to personal jurisdiction therein and irrevocably waive any
objection as to venue therein, including any argument that such proceeding has been
brought in an inconvenient forum.
FOR THE CITY /
By:
Title:
D. 09/19/2017
ATTES
pwlf0MSXG0nWgM1.Bm
FOR THE CONSULTANT
Approved by:
City Attorney's Office
9/12/-7
Date
5cheduie of Fees
IDMMIID 570RMMATER DRAINAGE DIVERSION PROKU
Project Admin
PM
$ 180
27
$ 4,860
SP $ 195 16 $
3,120
SP S 211 2 $
422
SP $ 182 2 $
384
SP $ 246 2 $
492
PE $ 159 2 $
318
PE $ 145 2 $
290
PE $ 138 2 $
276
SE $ 120 2 $
240
SE $ 110 14 $
1,540
ST $ 120 2 a
240
DT $ 102 2 $
204
PC $ 86 4 $
344
Expenses $
645
Subtotal $
13,375
S urveyln9 I U11110es f Geotechnical
PM$ 180 4 $
720
SP $ 211 1 S
211
SE 1 $ 1101 2 $
220
DT 1 $ 102 4 $
408
Smve 'ng Subconsultanl $
81970
Geotech Subeonsultant $
2.875
Expenses $
66
Subtotal $
13,470
Permitting
SP$
195
4
$ 780
SE
$ 110 16 $
1,760
Expenses $
120
Subtotal $
2,660
Preliminary Design
PM
$ 180
5
$ 900
SP $ 195 8 $
1,560
SP $ 211 40 $
8,440
SP $ 192 10 $
1,920
SP $ 246 44 $
10,824
PE $ 159 86 $
13,674
PE $ 145 5 $
725
PE $ 138 37 $
5,106
SE $ 120 9 $
1,080
SE $ 110 84 $
9,240
ST $ 120 40 1 $
4,800
DT $ 102 133 $
13,566
PC $ 86 7 $
602
Expenses 1 $
3,262
Subtotall $
75,699
Final Design
PM
$ 180
13
$ 2,340
SP a 195 4 $
780
SP $ 211 42 $
8,862
SP $ 192 19 $
3,648
SP S 246 42 $
10,332
PE $ 159 80 $
12,720
PE $ 145 8 $
1,305
PE $ 138 15 $
2,070
SE $ 120 16 $
1,920
SE $ 110 50 $
5,500
ST $ 120 48 $
5,760
DTa 102 97 S
9.691
PC $ e6 10 $
860
E3penses S
2,670
Subtotal $
68,661
Bidding Phase
PM S
180
8 $
1,440
SP S 211 4 $
844
SP S 246 5 $
1,230
PE $ 158 4 $
636
PE S 138 4 $
552
DT $ 102 2 $
204
PC $ 86 4 $
344
Experses, $
208
Sublow $
5,458
Construction Phase
PM $
180
21 $
3,780
SP S 211 8 $
1,688
SP $ 192 2 $
384
SP $ 246 11 $
2,706
PE $ 159 7 $
1113
PE $ 145 4 $
580
PE $ 138 4 $
552
DT $ 102 14 $
1,428
PC $ 86 6 $
516
E3penses $
505
Subtotal $
13,252
Total
$ 192,676
r 1 CITY OF IOWA CIT
COUNCIL ACTION REPO 15
September 19, 2017
Resolution approving, authorizing and directing the Mayor to execute and
the City Clerk to attest an Agreement by and between the City of Iowa City
and HR Green, Inc., to provide engineering consultant services for the
Idyllwild Drainage Diversion Project
Prepared By: Jason Reichart - Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: $192,600
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution, Consultant Agreement
Executive Summary:
This agreement authorizes HR Green, Inc. to prepare preliminary and final design, and provide
bidding and construction phase services for the Idyllwild Drainage Diversion Project. The project
includes the construction of new storm sewer under Foster Road and a stormwater bypass
along the west side of No Name Road to the Iowa River. The project will also evaluate pumping
requirements for the Idyllwild Subdivision, and include a bid alternate for construction of a new
pump station adjacent to the Idyllwild Subdivision.
Background / Analysis:
After the completion of the Taft Speedway Flood Mitigation Study in 2012, City Council directed
staff to proceed with a preliminary study for rerouting offsite drainage from the northwest corner
of the Idyllwild development. The study analyzed the Idyllwild watershed (north of Foster Road)
and identified deficiencies within the existing stormwater system. From the results, two
alternatives were developed at a preliminary level.
The City issued a Request for Proposals to provide professional engineering services for a
number of projects, including the Idyllwild Drainage Diversion Project. The City chose HR
Green, Inc. based on their previous experience with the study, their experience with similar
projects and their approach to the project.
City staff have also met with representatives from Idyllwild and the proposed development north
of Foster Road to discuss stormwater concerns related to existing and anticipated post -
development conditions in the area. Idyllwild has completed a grading project to construct a
berm around the development, which is also designed to accommodate the installation of
HESCO barriers on top of the berm. Including the HESCO barriers, the project will protect the
area from river flooding up to 2008 flood levels. However, in order to further protect Foster
Road and Idyllwild from flooding during river flood events, a method for pumping water from
Idyllwild over the berm/HESCO barriers is also required. During these discussions, the City
committed to completing the design of a pump station, and including it as a bid alternate, as part
of the project. This will allow all parties to evaluate the actual cost to construct the pump station
r 1 CITY OF IOWA CITY
-r� COUNCIL ACTION REPORT
and determine if it should ultimately be included with the construction of the project. As part of
the discussions, the developer (North Dubuque LLC) offered to contribute 25% of the project
cost for construction of a pump station. In addition, representatives from the Idyllwild
community stated they were prepared to contribute at least $100,000 to the pump station
project.
r(P
Prepared by: Kellie Fruehling, 410 E. Washington St., Iowa City, IA 52240-319-356-5040
RESOLUTION NO. 17-311
Resolution adopting an assessment schedule of unpaid mowing,
clean-up of property, snow removal, sidewalk repair, and stop box
repair charges and directing the Clerk to certify the same to the
Johnson County Treasurer for collection in the same manner as
property taxes.
WHEREAS, the City Clerk has filed with the City Clerk an assessment schedule providing the
amount to be assessed against certain lots for the actual unpaid abatement costs of mowing,
cleaning up property, removing snow, repairing sidewalks, and repairing stop boxes in the same
manner as property taxes;
WHEREAS, said schedule is attached as Exhibit A to this resolution and incorporated herein by
this reference;
WHEREAS, Iowa Code § 364.13B authorizes the City Council to assess against the property
said abatement costs in the same manner as property taxes; and
WHEREAS, the City Council finds that the property owners listed in Exhibit A have received a
written notice of the date and time of the public hearing on the adoption of said assessment
schedule, in substantially the same form attached hereto as Exhibit B.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA:
Exhibit A is adopted as the final assessment schedule pursuant to Iowa Code § 384.60(1)
The amounts listed in Exhibit A for unpaid mowing charges, clean-up property charges, snow
removal charges, sidewalk repair charges and stop box repair charges are confirmed and levied
against the properties listed in Exhibit A.
All unpaid assessments not paid within thirty (30) days after the first publication of the final
assessment schedule shall bear interest at the rate of 9% per annum, commencing on
November 3, 2017.
Assessments are payable at Johnson Country Treasurer, 13 South Dubuque Street, Iowa City,
Iowa. Until November 2, 2017 payment may be made at the City Clerk, 410 E. Washington
Street, Iowa City, Iowa.
The City Clerk is hereby directed to certify the schedule as set out in Exhibit A to the Treasurer
of Johnson County, Iowa for collection in the same manner as property taxes. The assessment
cannot be paid in installments.
Resoluttion No, 17-311
Page 2
The City Clerk is further directed to publish notice of the schedule once each week for two
consecutive weeks in the manner provided in Iowa Code § 362.3, the first publication of which
shall be not more than fifteen (15) days from the date of filing of the final assessment schedule.
Passed and approved this 19th day of September 2017.
MWyor
Approved b
ATTEST: P�Cc e l }
City Clerk City Attorney/s Office
It was moved by trims and seconded by Botchway the Resolution be
adopted, and upon roll call there was:
AYES:
sue\Ord&Res\AbateRes.dm
NAYS: ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
CITY OF IOWA CITY ASSESSMENT SCHEDULE OF UNPAID WEED REMOVAL, SIDEWALK REPAIR, SNOW
REMOVAL, STOP BOX REPAIR, AND PROPERTY CLEAN-UP
ADDRESS
LEGAL
PARCEL NO.
ASSESSED
PROPERTY
REASON
FOR
DATE OF
AMOUNT OF
OUTSTANDING
DESCRIPTION
VALUE
OWNER
EXPENSE
SERVICE
INVOICE
BALANCE
1519 E.
Lot 31, Ridgewood
Court
& 1/33 Interest
1014201009
$128,590.00
a
Sonya
Propertyony
8/24/17
$1,373.80
$1,373.80
Street
Ridgewood Park
Clean Up
s
W
September 12, 2017
Name
Address
City, State, ZIP
Dear Property Owner:
� r
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240-1826
(319) 356-5000
(319) 356-5009 FAX
www.icgov.org
This is to notify you that the City Council will be considering a resolution on September
19, 2017 that will assess against your property the cost that the City has incurred to do
one of the following: unpaid mowing, clean-up of property, snow removal, sidewalk
repair, or stop box repair charges. Enclosed for your information is a copy of the bill. If
the City Council approves the assessment against your property, the amount will be
collected by the Johnson County Treasurer in the same manner as a property tax.
The City Council meeting begins at 7:00 pm and is held at Harvat Hall, City Hall, 410 E.
Washington St., Iowa City, Iowa. If you want to challenge the assessment, you are
advised to come to the City Council meeting. You may also submit a letter or email to
the City Council. The mailing address is: City Council, % City Clerk, 410 E.
Washington St., Iowa City, IA 52240 and the email address is councilCo)-iowa-city.org
Please note that all communication with City Council is a public record.
If you pay the amount due in full before the City Council meeting, the resolution will not
include an assessment against your property. You can make the payment by mailing
or coming in person to the City Clerks office, 410 East Washington Street,
between the hours of 8:00 a.m. and 5:00 p.m. If property is assessed and the
amount is not paid within the specified 30 days, interest will accrue at a rate set by the
City Council.
If you have any questions about the resolution, please contact my office at 356-5043.
Sincerely,
Kellie K. Fruehling
City Clerk
Enc.
CITY OF IOWA CIT 09.1917
COUNCIL ACTION REPO 16
September 19, 2017
Resolution adopting an assessment schedule of unpaid mowing, clean-up
of property, snow removal, sidewalk repair, and stop box repair charges
and directing the Clerk to certify the same to the Johnson County Treasurer
for collection in the same manner as property taxes.
Prepared By: Kellie Fruehling
Reviewed By: Sue Dulek, Assistant City Attorney
Fiscal Impact: No impact
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution w/ Exhibits A and B
Executive Summary:
This resolution is to adopt an assessment schedule for unpaid mowing, property clean-up, snow
removal, sidewalk repair, and stop box repair.
Background / Analysis:
The City has the authority under Iowa Code §364.136 to assess the nuisance abatement costs
in the same manner as a property tax. This resolution allows the City Clerk to certify to the
Johnson County Treasurer the abatement cost to be assessed against the property. This
assessment is being pursued only after the City took many steps to resolve the matter. The City
notified the homeowners to abate the nuisance (for example, to remove snow from the
sidewalk) and after the homeowner did not take action to abate the nuisance, the City abated
the nuisance and billed the owner. The City has sent a letter to the homeowner giving them
notice that this resolution would be on the agenda, a copy of which is attached to the resolution.
No interest will be charged if the owner pays within 30 days of the first required publication.
Attached as an exhibit to the resolution is a list of the properties that will be assessed and the
amount that will be assessed.