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HomeMy WebLinkAbout2017-10-03 Bd Comm minutes)" U-03-17 CITY OF IOWA CITY 4 MEMORANDUM Date: September 11, 2017 To: Mayor and City Council From: Wendy Ford, City Council Economic Development Committee Re: Recommendations from City Council Economic Development Committee At their July 21, 2017 meeting the City Council Economic Development Committee made the following recommendation to the City Council: Cole moved to recommend to the full City Council support of the Hieronymus Square TIF project. Throgmorton seconded the motion. The motion carried 3-0. Additional action (check one) No further action needed Board or Commission is requesting Council direction _x Agenda item will be prepared by staff for Council action - Done EDC July 21, 2017, p. 1 APPROVED MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE JULY 21, 2017 EMMA HARVAT HALL, CITY HALL, 8:30 A.M. Members Present: Rockne Cole, Susan Mims, Jim Throgmorton Staff Present: Eleanor Dilkes, Simon Andrew, Wendy Ford, Geoff Fruin, Sarah Hecktoen, Ashley Monroe Others Present: Ben Kinseth (Kinseth Hospitality); Kevin Digmann (Hodge Construction); Andy Davis (Iowa City Press Citizen); Ryan Sempf (Chamber of Commerce); Nancy Bird (Iowa City Downtown District); Mark Nolte (ICAD); Kevin Monson (Neumann Monson Architects); Gustave Stewart, (UI Student Government) Martha Norbeck (C -Wise Consulting); Marissa Payne (Daily Iowan) RECOMMENDATIONS TO COUNCIL: Cole moved to recommend to the full City Council support of the Hieronymus Square TIF project. Throgmorton seconded the motion. The motion carried 3-0. CALL MEETING TO ORDER: Chairperson Mims called the meeting to order at 8:30 A.M. She then asked those present to introduce themselves for the minutes. Cole moved to approve the minutes from the May 25, 2017 meeting as presented. Throgmorton seconded the motion. The motion carried 3-0. Ford spoke to Members concerning the recommendation before them. She noted that the Economic Development Committee is being asked to recommend this to the full City Council. She began her presentation by noting that this project has been a long time in coming. This is a $40.7 million project and the developers are requesting $8 million. The project is located at the corner of Burlington Street and Clinton Street, and will be mixed-use throughout, including a hotel, retail space, office space, and residential units. Parking will be included in this project, according to Ford, in the basement level of the entire parcel. Further detailing the project, Ford noted that plans include a 92 -unit extended stay hotel under the Element Hotel, a Marriott brand. Each room will be equipped with a full, compact kitchen. Hotel amenities include a patio, pool, and a fitness center on the second floor. Ford noted that there will be access to the Court Street Transportation Center for hotel guests. The parking underground will be reserved for the residential component of the other building. Ford added that the developer hopes to execute an EDC July 21, 2017, p. 2 APPROVED agreement similar to the ones that the Sheraton, hotelVetro, and the Hilton Garden Inn have done with the Transportation Center. Ford noted that the hotel is planning to go for gold level of the Green Seal Certification, which is a third -party, non-profit environmental certification for hotels. Further sustainability efforts include the use of solar panels on the mixed use portion of the building. Ford noted that these are expected to generate in excess of 38,000 kilowatt hours of electricity per year. In the mixed-use portion of the building, along Burlington Street, the first floor will be retail, while the second floor is class -A office space, and the third through seventh floors will comprise approximately 43 residential units. Ford stated that this will include seven on-site affordable units for renters at or below 60% of the area median income, meeting the requirement for 15% affordable units for a TIF project. The below -grade garage will have 61 spaces available for residents. She noted that staff will work with the Federal Transit Authority to seek approval for an access point from the lower level of the Court Street Transportation Center to the lower level parking in the new building. The third part of the building complex will be two stories, which will serve as an entry vestibule from the Clinton Street side for both the hotel portion and the residential portion. Ford shared renderings of this concept with Members and further detailed the various components of the project. The lower level garage portion will be accessible from the Court Street Transportation Center. The first level, along Gilbert Street will all be retail. The second level will be office space in the multi -use building, while the second level of the vestibule area will have the outdoor pool. At the east end of this area will be a fitness center and the elevator access to the Transportation Center. Moving on to the numbers, Ford noted the sources and the uses of funds. She noted the City's rules regarding TIF that require the developer maximize the amount of debt they can attract to a project and that when they come to the City, the maximum amount of dollars that they are able to attract from a lending institution, and from their investors, is already determined. The City's financial support then would be the last dollars in, according to Ford. For the $40 million Hieronymus Square, Ford stated that developers will secure $22.4 million in loans. They will put in $10.3 million for equity, and the City would fill the remaining $8 million gap. Ford then further explained the financial analysis that resulted in this $8 million gap. She detailed timelines for this project to get up and going, and the rationale for a $600,000 TIF advance. The $600,000 TIF advance would be granted upon completion of the building, thus mitigating any risk to the City. Ford talked about how the project aligns with Council's strategic planning priorities, saying that the project will bring $22 million to Iowa City's tax base. The hotel will generate an average of a quarter million dollars in hotel taxes per year. The project will be a critical connection point between Riverfront Crossings and downtown, promoting a healthier downtown neighborhood due to the blighted nature of this block for decades. The project encourages a vibrant and walkable core by having the storefront windows on the first floor and by incorporating the setbacks required in the Riverfront Crossings form based code, making for better walkability along Burlington Street. She said the project will use roof -mounted solar panels and generated more than 38,000 kwh of electricity. Finally, the hotel will achieve a gold level Green Seal certification — a sustainability program for the hotel industry. Ford noted that the developers are present if Members wish to ask them questions regarding this project. Ben Kinseth then spoke briefly to the Members, noting that in regards to the hotel, they believe an extended -stay will do well here as there are none in the immediate area. It also EDC July 21, 2017, p. 3 APPROVED should be a good fit with the existing hotels downtown. Mims stated that she likes the Green Seal certification that the hotel will be seeking. She added that she is very supportive of this project and is looking forward to having this corner developed. Mims stated that she would like to see at least two more stories added to the project. Kevin Digmann responded that it's really more affordable to not do high-rise construction, and that splitting the project apart is more feasible than going higher. Throgmorton then posed some questions regarding the proposed project. First he asked about the two renderings he has seen so far, where the hotel is shown differently. Digmann stated that what Ford showed in her presentation is the latest version. Throgmorton also asked if any of this TIF support goes directly to the developers for personal gain, or more precisely, he asked what the developers' expected rate of return is on this project. The developer noted that part of the report prepared by staff has a paragraph on each part of the project and what the expected internal rate of return is. He stated that the numbers the developer shows are well below what they normally see from a project. Fruin added that from staff's perspective, the margins are extremely thin on this project. He stated that the National Development Council calculated the internal rate of return on a mixed-use building to be at 6.42°/x, which is below what would be expected in most markets, but that it is within the norm due to the strong market in Iowa City. The hotel portion has a higher rate of return, according to Fruin, around 7.5%. He added that typically you would expect to see double-digit returns, but that this is reflective of the market. Throgmorton stated that some people undoubtedly have the perception that the $8 million is going directly to the developer, and that this is not the case at all. The money is going toward the construction of the building. The developer further explained how the financing works and that they are fully aware they are not being 'given' $8 million. Throgmorton then addressed the 'but for' question, which asks of developers: "if it were not for City financing, would this project be built?" The developer responded that it would not and noted the quality design, underground parking and hotel amenities are more expensive than typical buildings and require financial assistance. Members continued to discuss the issue with Mims noting that even after filling the financial gap the developer still only realizes a low rate of return -- between 6.4% and 7.5% on the two projects. If the gap isn't filled, then the rate of return goes down to the point the project will not go forward. Throgmorton remarked that it is our practice to ensure all other pieces of financing are in place before City assistance is considered. He added that he was under the impression that the developers have been in discussions with lenders but the lenders have not yet presented letters commitment or term sheets for the loans they would underwrite. This was confirmed. Throgmorton then spoke to the estimated $2 million in the gap that is a reflection of the developers' cost of financing their loan. He asked if the size and duration of the TIF could be reduced by providing an upfront loan in this instance. Fruin spoke to Throgmorton's question, noting that the difference between an upfront TIF and a rebate TIF is the transfer of risk. Cole then noted that he also likes the project. His first question concerned the economics of condos versus apartments, and he asked if the developers evaluated condos at the northwest corner of the project. Dilkes said that all new apartments are condominiums now. The question is whether the units will be owner -occupied. Cole stated that he is very pleased there will be solar panels and he asked about the cost of doing this. The developer stated that when they negotiated and received these numbers, they did not have that cost in their budget. Instead it was something that Fruin requested as plans progressed. Throgmorton then asked about affordable housing and how many units would be required. Ford responded, noting the affordable housing requirement in a TIF project is to provide 15% -- or seven units. Throgmorton asked if these units will be provided on site. Fruin EDC July 21, 2017, p. 4 APPROVED noted this is one topic the Council needs to discuss, but that the financial analysis was done with the provision of all seven units being on site. He noted that policies currently in place allow for 'fee in lieu of for projects like this. Fruin stated that should the developers want to have an off- site location, this would be incorporated into the development agreement, similar to the Augusta Place project. He added that this is one of the first TIF agreements to come before them in which there is (affordable housing with TIF) policy in place. Dilkes noted for clarification that Augusta Place has six on-site units, in addition to the off-site ones. Mims said for her it depends on where those off-site units would be located. She noted that in past discussions everyone has agreed that they would like to see affordable units spread throughout the city. Fruin noted that they have contemplated how they would use any fee in lieu of dollars. The developer spoke to the affordable housing issue as well, noting how it plays out for them and the possibility of having several ways to address the affordable housing requirement. Cole stated that he really likes what staff has done over the past few years with the affordable housing policy and that he believes they should trust staff to work with the developers on this issue. Throgmorton stated he supports this project and that it will be a tremendous asset to the downtown area, especially since this site has been sitting empty for close to 30 years. Cole echoed Throgmorton's comments. He believes the extended -stay hotel is a fantastic idea and something they've needed downtown for some time now. Cole moved to recommend to the full City Council support of the Hieronymus Square TIF project. Throgmorton seconded the motion. The motion carried 3-0. CONSIDER A RECOMMENDATION TO THE CITY COUNCIL FOR REVISED TIF POLICIES: Mims suggested a way to proceed through the list quickly: to begin at the end of the list and work forward. She began the discussion with 'underwriting and application,' asking if there were any concerns and there were none. 'Other public interests' was next, again, no changes here. 'Quality jobs' is tied to the State's Laborshed area hourly wage metrics that are periodically updated, and currently around $20 per hour. Cole asked what the existing standard is compared to the one they are considering adopting. Mims stated that it would be ratifying the existing standard. Fruin clarified that when they have a project like the one just discussed for Hieronymus Square, these wage standards do not apply to retail and office jobs. This would more likely come into play with manufacturing jobs. 'Social justice' was next. Mims wanted some clarification on item B, asking if it is going to be an issue for the general contractors. Dilkes stated that she has reviewed this and that she finds no problems with the language. 'Affordable housing'- all Members agreed to this section. 'Historic preservation' brought some discussion, due to staff's request for clarification about whether properties noted as "contributing" to the historic area should be held to the same standards as those that are actually historic. Mims stated that she does not feel contributing properties should necessarily be included as architecturally significant. She noted Ford's comments in the staff memo, about writers of the Master Plan having made an exception for EDC July 21, 2017, p. 5 APPROVED contributing properties as a tradeoff for better preservation of historic buildings on Washington Street. Throgmorton agreed, stating that architecturally significant should not include those properties noted as 'contributing.' He added, however, that buildings which replace 'contributing' structures should then preserve and enhance the historic character of the block. Ford stated that pages 54-56 of the master plan explain how contributing buildings complement historic context. Throgmorton then spoke to form -based code, stating that he believes they should initiate the process of developing it. Until such time, however, he would like to make sure they have some way of ensuring that TIF -supported projects don't radically transform blocks by enabling the demolition of a significant number of 'contributing' structures. Cole stated that he goes back to the Comprehensive Plan with this. He believes it will be very important for them to honor the Comprehensive Plan in its totality. If there are parts of the policy that are inconsistent with it, then he believes they need to make the policy consistent with the Comprehensive Plan. He stated that they need to address the question of clarifying what a 'contributing structure' is. Referring to the map staff provided combining historic buildings with the desired building heights, Mims asked if all of the buildings shown in white, without a'c' designation are historic landmarks or eligible structures. Ford affirmed they were. Fruin referred to the [downtown] urban renewal plan and reminded Members that historic structures have always been protected. Ford explained this map is the same as the Comp Plan building height map, except that both historic and contributing buildings are shown in white — or without a color designating the desired height. The purpose of creating this map was to show non -historic buildings that would be affected by the desired heights. An update to the map would now include height -designating color on buildings with a 'c' designation, as they would become subject to the desired heights per the discussion today. Throgmorton noted the recent letter from the Downtown District, encouraging the committee to modify regulations to further incentivize accessibility in historic buildings with narrow footprints. He stated that it looks like a good recommendation and he would like to get staff's reaction to this. Members discussed the challenges with historic properties and the difficulties contractors can be faced with, such as installing elevators. Fruin noted that elevators are regulated at the state level and that we would need to work with local legislators to try and get revisions made to allow retrofitting elevators in historic buildings. Throgmorton noted that this may be something the Metro Coalition would support. Moving on to 'sustainability,' Mims asked if there is a logical reason for them to require LEED Silver in the City -University [downtown] Urban Renewal Area only. Throgmorton suggested that if there is TIF support provided for any residential or mixed-use project, anywhere within the city, LEED Silver should apply. Mims reiterated that her preference would be to not have LEED Silver absolutely required in any TIF district, but to make it highly preferred or encouraged. Throgmorton and Cole both stated they support requiring LEED Silver certification with at least 8 Energy Efficiency credits for any residential or mixed use project receiving TIF in any urban renewal area. The last point, 'building height and character' was discussed next. Mims started by recalling the map of recommended building heights that first appeared in the Riverfront Crossings and Downtown Master Plan, and was later adopted into the Comp Plan. She posited that many community members were not aware of the heights that were recommended in the plan, adding that she does not believe this map has had the kind of public vetting that it should have in order for the City to codify something such as the TIF policy. Mims also said that it appears that this is a way to effectively down -zone some properties that may be prime candidates for redevelopment. Throgmorton stated that legally, it does not down- EDC July 21, 2017, p. 6 APPROVED zone anything. Mims said that she is referring to public perception; that the intent is to restrict the height when there may be the need for financial assistance, such as for a high-rise building project. Mims added that if the goal of the Council is to limit tall buildings on these sites, then she believes it is a discussion they need to have at the Council level. They could then actually discuss rezoning those particular properties, if that is the actual goal. If this is not the goal, Mims stated that she does not understand why they would tie TIF dollars to particular heights on particular parcels. Throgmorton asked if Fruin would provide a brief summary of the memo he had included in the packet for Members about the consultants work in arriving at the desired heights. Throgmorton said with regard to vetting, the map did appear in the draft plan and that it is not their responsibility to see that people read every single component of the plan. He stated that the Council at that time did not have a discussion about the plan as a whole. Throgmorton stated they would not be down -zoning anything; rather, they would be exercising the City's discretion and judgment about how to use the tax incentives to achieve the objectives contained in the Comprehensive Plan. Fruin then reviewed his memo regarding the planning consultants' recommendations on height. In a design charette with consultants, the public identified a number of properties as candidates for redevelopment. Consultants focused on those properties and considered existing conditions and zoning constraints to formulate the desired heights. He said he had ask planning staff particularly, about the example of the law firm building at College and Linn. In this case, a corner building, consultants determined the recommended height by the size of the lot and how much parking could likely be provided on the lot. Building heights reflect what people said they liked for building heights and the likelihood of how much parking could be provided on site. Fruin explained the consultants also worked with staff on the details as they were reviewing the draft. He noted that the map was introduced at a public presentation to roll out the plan at City Hall. It had been one of four maps displayed on one of several posters for the public to view. Mims noted that parking regulations were one of the factors in the consultant's height recommendations and suggested that our parking regulations may be in need of updating; and if so, determining future building heights with outdated parking regulations, may, in a year or two, make no sense. She said TIF should not be tied to height at all. Cole started talking about the TIF review process that they have been going through for the past year, stating that the notion there hasn't been enough input does not make sense to him. He added that they have made all of these meetings public, televised them, and met with many stakeholders involved. Mims interjected, noting that her comment is only about the review and input on the desired building heights map during the Comp Plan process — nothing to do with the input for the TIF policy review. Cole went back to the height issue, stating that he believes they have clearly shown the direction they want to go. He then spoke to the notion that people don't understand what the Comprehensive Plan is; that they think of it as a regulatory code that they are bound to. He stated that it is a guide, perhaps an imperfect one, but it is what they have to work with and it has been through a thorough public process. Cole continued to speak to building height issues. Throgmorton thanked staff for preparing the new map, adding that it helps him to understand how this policy would likely play out. He questioned when they would provide exceptions to this. Throgmorton stated that he has some textual amendments that he would like to share with Ford for the TIF Policy revisions. He noted that they do not have time at the meeting to do this, but that he would prepare a draft for all to see what he is proposing. Members continued to discuss some of the elements on the map. EDC July 21, 2017, p. 7 APPROVED Mims then spoke to Cole's comment regarding the map having enough public scrutiny before going into the Comp Plan. She stated that to tie something as significant as what properties TIF might be considered for — would be wrong. Throgmorton asked what Mims would suggest as an alternative. Mims responded that she does not believe it should be tied to building height at all. She believes in preserving the historic feel of a block. Throgmorton stated that he believes using the map gives better clarity as to what the Council is looking for. STAFF TIME: None. COMMITTEE TIME: None. OTHER BUSINESS: None. ADJOURNMENT: Cole moved to adjourn the meeting at 10:10 A Throgmorton seconded the motion. Motion carried 3-0. Council Economic Development Committee ATTENDANCE RECORD 2016-2017 Key: X = Present O = Absent O/E = Absent/Excused TERM N A `+ m Q� o rJ w A A to v NAME EXP. ? o A N J N w w N A N J J Rockne Cole 01/02/18 X X X X X X X X X X X X Susan Mims 01/02/18 X X X X X X X X X X X X Jim 01/02/18 X X X X X X X X X X X X Throgmorton Key: X = Present O = Absent O/E = Absent/Excused "m,` � .o,% RTII 1ooh CITY OF IOWA CITY 4 MEMORANDUM Date: September 22, 2017 To: Mayor and City Council From: Kris Ackerson, Community Development Planner Re: Recommendations from Housing and Community Development Commission At their August 17th meeting, the Housing and Community Development Commission approved the June 15, 2017 meeting with the following recommendations to the City Council: 1. By a vote of 8-0 the Commission recommends approval of the proposed FY17 Annual Action Plan Amendment#2. 2. By a vote of 8-0 the Commission recommends the following allocations for FY18 HOME Investment Partnerships Proaram (HOME) Fundina: Habitat for Humanity $35,000 Successful Living - Rehab $50,000 The Housing Fellowship — New Construction $100,000 Successful Living — Acquisition increased from $36,000 to $51,000 $15,000 MYEP — Rental Acquisition $50,000 $250,000 3. By a vote of 8-0 the Commission recommends approval of the FY18 Annual Action Plan (see page 2): Projects Planned activities CDBG Award HOME Award Low -Mod Clientele Public Services/Facilities Aid to Agencies Shelter House $ 49,696 NA Aid to Agencies NCJC $ 43,434 NA Aid to Agencies DVIP $ 4,570 NA MYEP Facility $ 31,000 NA Little Creations Academy $ 73,000 NA Crisis Center Remodel $ 85,000 NA Neighborhood and Area Benefits Wetherby Park Improvements & other eligible improvements $ 75,000 NA Homeowner Housing Rehabilitation Comprehensive rehabilitation $ 235,000 $ 90,000 Other Housing Activities CHDO Operating NA $ 18,000 The Housing Fellowship Rental Rehabilitation $ - $ 86,000 Successful Living - Acquisition $ 36,000 $ 51,000 Habitat for Humanity — Acquisition/Rehab. $ - $ 35,000 THF Rental — New Construction $ - $ 100,000 MYEP Rental Acquisition $ - $ 50,000 Successful Living Rental Rehab $ - $ 50,000 Economic Development Economic Development Set-aside $ 50,000 NA CDBG and HOME Administration/Planning CDBG Administration $ 126,049 NA HOME Administration NA $ 46,635 Total $ 808,749 $ 526,635 4. By a vote of 8-0 the Commission recommends City Council approval of the draft Affordable Housing Land Bank Guidelines with the following language to replace the criteria that would disqualify a property from consideration: • More than an incidental portion of the site is in the 100 -year floodplain. • The site cannot be serviced by utilities. • The site is not in the City's designated Growth Area. • There is environmental contamination on the site that prohibits residential development. • The site is not in compliance with the Affordable Housing Location Model. 5. By a vote of 8-0 the Commission recommends City Council approval of the draft Citizen Participation Plan. A thirty day public comment period must be observed before Council consideration. Additional action (check one) No further action needed Board or Commission is requesting Council direction _x_ Agenda item will be prepared by staff for Council action - Done MINUTES HOUSING AND COMMUNITY DEVELOPMENT CON JUNE 15, 2017 — 6:30 PM IOWA CITY PUBLIC LIBRARY, MEETING ROOM A MEMBERS PRESENT: Peter Byler, Syndy Conger, Christine Harms, Bob Lamkins, John McKinstry, Harry Olmstead, Dorothy Persson, Paula Vaughan MEMBERS ABSENT: None STAFF PRESENT: Kris Ackerson, Tracy Hightshoe a101la1I OTHERS PRESENT: Barbara Bally, Mark Patton, Carla Phelps, Roger Goedken, Roger Lusala By a vote of 8-0 the Commission recommends approval of the proposed FY17 Annual Action Plan Amendment #2. By a vote of 8-0 the Commission recommends the following allocations for FY18 HOME Investment Partnerships Program (HOME) Funding: Habitat for Humanity $35,000 Successful Living - Rehab $50,000 The Housing Fellowship — New Construction $100,000 Successful Living—Acquisition increased from $36,000 to $51,000 $15,000 MYEP — Rental Acquisition $50,000 $250,000 By a vote of 8-0 the Commission recommends approval of the FY18 Annual Action Plan (see page 2): Housing and Community Development Commission June 15, 2017 Page 2 of 10 Projects Planned activities CDBG Award HOME Award Low -Mod Clientele Public Services/Facilities Aid to Agencies Shelter House $ 49,696 NA Aid to Agencies NCJC $ 43,434 NA Aid to Agencies DVIP $ 4,570 NA MYEP Facility $ 31,000 NA Little Creations Academy $ 73,000 NA Crisis Center Remodel $ 85,000 NA Neighborhood and Area Benefits Wetherby Park Improvements & other eligible improvements $ 75,000 NA Homeowner Housing Rehabilitation Comprehensive rehabilitation $ 235,000 $ 90,000 Other Housing Activities CHDO Operating NA $ 18,000 The Housing Fellowship Rental Rehabilitation $ - $ 86,000 Successful Living - Acquisition $ 36,000 $ 51,000 Habitat for Humanity — Acquisition/Rehab. $ - $ 35,000 THF Rental — New Construction $ - $ 100,000 MYEP Rental Acquisition $ - $ 50,000 Successful Living Rental Rehab $ - $ 50,000 Economic Development Economic Development Set-aside $ 50,000 NA CDBG and HOME Administration/Planning CDBG Administration $ 126,049 NA HOME Administration NA $ 46,635 Total $ 808,749 $ 526,635 By a vote of 8-0 the Commission recommends City Council approval of the draft Affordable Housing Land Bank Guidelines with the following language to replace the criteria that would disqualify a property from consideration: • More than an incidental portion of the site is in the 100 -year floodplain. • The site cannot be serviced by utilities. • The site is not in the City's designated Growth Area. • There is environmental contamination on the site that prohibits residential development. • The site is not in compliance with the Affordable Housing Location Model. By a vote of 8-0 the Commission recommends City Council approval of the draft Citizen Participation Plan. A thirty day public comment period must be observed before Council consideration. Housing and Community Development Commission June 15, 2017 Page 3 of 10 CALL MEETING TO ORDER: Byler called the meeting to order at 6:30 PM. APPROVAL OF THE APRIL 20, 2017 MINUTES: Olmstead moved to approve the minutes of April 20, 2017 with edits. Conger seconded the motion. A vote was taken and the motion passed 8-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. ANNUAL ACTION PLAN ITEMS —AVAILABLE ONLINE AT www.icnov.orq/actionplan: a) Recommendation to City Council regarding proposed FY2017 Annual Action Plan Amendment #2 Ackerson reminded the Commission that at the last meeting Maryann Dennis from the Housing Fellowship gave an update on their projects. Originally it was an acquisition of rental housing and she was requesting to convert those funds to a rehab and would be combined with the FY18 funds received. This request was put out for public comment in mid-May and will be considered by City Council next week on Tuesday. Olmstead moved to approve a recommendation to City Council regarding proposed FY2017 Annual Action Plan Amendment#2. Persson seconded the motion. A vote was taken and the motion passed 8-0. Byler commented that there is a need for rehab in Iowa City but is concerned if more rehab dollars are awarded that means less new housing is becoming available. Persson agreed and said it is important to look at what homeowners in the area think (if there are rental units in the area that are in disarray) and it will be a balancing act to assist with rehabs as well as adding to the inventory. Lamkins noted that it is less expensive to rehab than bring in new homes and agrees there needs to be more housing stock in the affordable range but also need to keep the current housing up to date. Ackerson noted that the houses they are requesting to rehab are not currently under affordability clauses and could sell the homes at any time. Ackerson noted that since the non -profits do not have to pay taxes that is a benefit to them. For profit housing providers have to pay property taxes on their units,even if considered affordable. b) Recommendation to City Council regarding applications for FYI HOME Investment Partnerships Program (HOME) Funding Byler discussed the five applications. He began by looking at the medians for each application. The median Habitat award was $35,000 due to four Commissioners giving it $70,000 and four awarding $0. Rental construction for The Housing Fellowship the median was $97,000 and three Commissioners were around that number. Vaughn asked about The Housing Fellowship application and asked how 102 persons were served by that project, it is 28 units and 20 are affordable. Byler explained that they look at the number of beds and that figures to 3.6 beds per unit which probably seems a bit high. Lamkins noted he proposed an award of $120,000 because he misread the number of units or persons. Barbara Baily (The Housing Fellowship) noted it is figured from 1.5 persons per bedroom which is the HUD guideline. Byler noted that The Housing Fellowship serves families so there is realistically more than one person per bedroom where Successful Living serves individuals. Mark Patton (Habitat for Humanity) Stated that the application doesn't ask for number of beds or bedroom count, just for the number per household. Housing and Community Development Commission June 15, 2017 Page 4 of 10 Persson suggested it needs to be consistent for all applicants to see the number of persons each project will serve whether it be by beds, bedroom count, or household. Ackerson stated that they typically count households. For SRO properties (tenants have their own bedroom but share bath and kitchen facilities) we count each tenant separately (each their own household). Byler said it would be beneficial to know how many people they can help. Then to be fair Habitat homes should count for 12 individuals if figuring 1.5 persons per bedroom. Byler stated the MYEP (Mayor's Youth Empowerment Program) award was split by the Commissioners, half awarding $0 and half $75,000. The Successful Living rehab had a median of $50,000 which was also close to the average. Vaughn voiced a concern about the MYEP and Successful Living applications that they both receive funding from Medicaid and if that will be viable in the future. Carla Phelps (Successful Living) stated they currently have five houses and were awarded money for two additional houses this year. This application would take them to nine houses. They have looked at staffing for this increase and the type of housing they will be going to are rehabilitation homes which have a higher reimbursement from Medicaid which will increase the organization's bottom line and allow for this growth. They are looking very closely at possible cuts to Medicaid and noted it will be cut over the course of time, not so much in the foreseeable future. They have begun seeking alternative sources of funding, which all non -profits are going to need in the future. Phelps stated they are secure with funding for at least the next three years and it is difficult to predict what will happen after that or what Washington will do. Roger Goedken (Successful Living) agreed and said they have done substantial financial modeling and predictions are ahead of the curve from what they were predicting even just six months ago. Phelps also noted that regarding the rehab homes they are placing in these home are people who just don't function well even at their transitional level. Olmstead acknowledged that many providers right now are having difficulty being reimbursed from State Medicaid and asked if Successful Living has dealt with that as well. Phelps said they are anticipating it more than having seen it. The bigger concern is Medicaid cutting down the services they will allow. Phelps said they will be looking into the future and pursuing aggressively grant and fundraising opportunities. Byler asked what the timeline for these dollars are, if the FY18 dollars are approved. Hightshoe said the funds must be committed within two years. Phelps noted that if they cannot get new rental permits for six months, they can subsidize the rental income with Medicaid money. Hightshoe noted that was a concern because the pro forma has to show rental income cash flow and also there is a concern about increasing the number of homes by four in such a short period of time. They are doubling their properties. Do they have the staff capacity for such fast growth? If the homes are not viable or can't comply with the HOME rules, the City must step in and ensure it is affordable rental until the compliance period expires. Byler noted they were awarded $36,000 for two separate homes each (down payments) earlier in the year and questioned why they are now asking for $100,000 for just one home purchase. Phelps said they would like to have a smaller debt service and it was recommended to ask for a larger amount to cover any contingencies needed for rehabilitation. Hightshoe stated they have a debt coverage ratio of 0.75 which means they are not collecting enough money to pay for their expenses. Their proforma shows they are not viable. Phelps agreed stating they don't, they subsidize the units. Hightshoe stated that the City needs to see that the rents will cover expenses. It is a requirement of the underwriting analysis. If the project is not viable at the time we complete the underwriting analysis, the City can't invest the HOME funds into the project. Persson asked if Staff was more comfortable then with the rehab request rather than the acquisition request from Successful Living. Ackerson noted that both of the debt coverage ratios are below the minimum. The City's minimum is 1.2 and the acquisition is at 0.75 and the rehab is only 1.06 which means they are not collecting enough revenues to cover their expenses. Olmstead asked if Section 8 contributed to the funding. Phelps said they do receive a certain amount of Section 8 funding but it is not a whole lot. Hightshoe noted that for a four-bedroom household Section 8 typically gives the standard divided by four. Goedken said it is a double -edge sword Housing and Community Development Commission June 15, 2017 Page 5 of 10 because they want to keep the rents low because it is usually half or more of their tenant's income however he understands that when applying for grants it is seen as not enough income. Byler suggests that since the Habitat for Humanity median and average are the same perhaps they can award one lot, $35,000 for Habitat. Lamkins stated that can't be done, noting the minimum award must be $50,000. Patton agreed, noting they cannot buy a lot for $35,000. Hightshoe said it could be allowed, they aim for awards of $50,000 or more. Looking at the Successful Living rehab dollars, Byler noted the median and average are also almost the same, so perhaps they can award them $50,000. The Housing Fellowship also has a similar median and average, so that could be $100,000. Byler noted that the Successful Living rental acquisition (that they have discussed earlier) has a median and average that is far below what their award would need to be to be viable. There is $65,000 left and one thing the Commission could do is give MYEP $65,000 towards their $75,000 unit acquisition. Byler stated on a personal level he gave his full support to The Housing Fellowship project due to the number of people it would serve. Hightshoe clarified Staffs opinion, they are not stating the Commission should not fund the Successful Living acquisition; it is just that they have serious concerns about their cash flow/long term viability and how quickly they are increasing properties. Additionally if they are asking for money to rehab units. They don't have the cash flow to rehab existing units, but are also requesting more funds to purchase additional properties. McKinstry agreed, he feels for the mental health housing needs state-wide but also feels The Housing Fellowship project is really important. Persson also voiced concern about giving Successful Living more money for acquisitions and would rather give for rehab. She is not necessarily wed to her recommendations and is flexible except for her concern for the rental acquisition. Ackerson noted that it is important to remember if the Successful Living projects don't cash flow/document long term viability the City cannot proceed with the project no matter how badly the beds are needed. Roger Lusala (Mayor's Youth Empowerment Program) stated they received $50,000 in the last allocation of HOME fund from the City and they purchased a unit with those funds. Byler asked if they were to receive only $50,000 again would they still be able to move forward on the next allocation. Lusala stated they would, they always try to put more down to keep the debt low. Byler suggested changing the MYEP award to $50,000. That leaves $15,000 on the table to be allocated. He suggests to add the $15,000 to the $36,000 acquisition that was approved for Successful Living at the last round. Housing and Community Development Commission June 15, 2017 Page 6 of 10 Lamkins moved to recommend to City Council the following allocations for FY18 HOME Investment Partnerships Program (HOME) Funding: Habitat for Humanity $35,000 Successful Living - Rehab $50,000 The Housing Fellowship — New Construction $100,000 Successful Living — Acquisition (increased from $36,000 to $51,000 $15,000 MYEP — Rental Acquisition $50,000 $250,000 Vaughn seconded the motion. A vote was taken and the motion passed 8-0. c) Recommendation to City Council on approval of FY18 Annual Action Plan Ackerson showed the table that summarizes all the CBDG and HOME funding allocations, which becomes the Annual Action Plan. The left column shows all the projects, the activities are the second column. In January the Commission allocated funds for Aid to Agencies. Staff expected to have $100,000 available but funding was reduced by 0.61%. Ackerson also noted that the table differs from the one in the Commission's handout because they just received the actual funding grant amounts so they were able to input final numbers and this final table will be the one sent to Council. Hightshoe stated the good news was the City did not get a cut; they received $1,000 less than expected in CDBG funds but $35,000 more in HOME. She noted they are down in HOME program income. Byler asked about the owner -occupied rehab, the $325,000. How many homeowners are served by that money. Hightshoe said it would serve about 25 low/moderate income homeowners. She noted that HOME projects are usually more expensive than CBDG because all the homes must meet all Code requirements prior to occupancy. Byler suggested perhaps they turn the program into a housing rehabilitation program (rental and owner -occupied), and make it a bigger program perhaps using $100,000 or so from HOME and then non -profits could apply for the rental housing. Hightshoe said that would have to be a recommendation to Council as it is a Council set-aside at this time. Byler sated it serves low income households either way, whether by ownership or by working with the non- profit partners for rentals. Hightshoe noted that the City did just apply to the Housing Trust Fund of Johnson County for $75,000 for rental rehab. Because there are so many regulations with Federal funded rehab programs as it relates to lead, the City applied to the Trust Fund of Johnson County for rehab. of rental or owner - occupied housing in low income neighborhoods. A family member must have asthma. The City will partner with the University of Iowa College of Nursing, Free Medical Clinic and ICCSD School Based Clinic to reduce asthma disparities in low income neighborhoods. Housing and Community Development Commission June 15, 2017 Page 7 of 10 Olmstead moved to recommend City Council approval of the FY18 Annual Action Plan: Projects Planned activities CDBG Award HOME Award Low -Mod Clientele Public Services/Facilities Aid to Agencies Shelter House $ 49,696 NA Aid to Agencies NCJC $ 43,434 NA Aid to Agencies DVIP $ 4,570 NA MYEP Facility $ 31,000 NA Little Creations Academy $ 73,000 NA Crisis Center Remodel $ 85,000 NA Neighborhood and Area Benefits Wetherby Park Improvements $ 75,000 NA Homeowner Housing Rehabilitation Comprehensive rehabilitation $ 235,000 $ 90,000 Other Housing Activities CHDO Operating NA $ 18,000 The Housing Fellowship Rental Rehab $ - $ 86,000 Successful Living SRO units $ 36,000 $ 51,000 Habitat for Humanity $ - $ 35,000 THF Rental Construction $ - $ 100,000 MYEP Rental Acquisition $ - $ 50,000 Successful Living Rental Rehab $ - $ 50,000 Economic Development Economic Development Set-aside $ 50,000 NA CDBG and HOME Administration/Planning CDBG Administration $ 126,049 NA HOME Administration NA $ 46,635 Total $ 808,749 $ 526,635 Lamkins seconded the motion. A vote was taken and the motion was passed 8-0. RECOMMENDATION TO CITY COUNCIL REGARDING AFFORDABLE HOUSING LAND BANK GUIDELINES: Byler noted that land banking was part of the Affordable Housing Action Plan and $150,000 was allocated for land banking. Staff has created general guidelines, included in the Commissioner's packets. Byler's general question regarding the document is if anything is binding or if it is all just suggestions. Hightshoe stated they are guidelines, but there are certain criteria that automatically will remove a property from consideration. Byler then asked about the yes/no questions and it seems as if neither answer would disqualify an applicant and Hightshoe confirmed he was correct. Lamkins asked about the disqualifiers, it cannot be easily serviced by utilities or not in the City's designated Growth Area, and it seems to make it very hard to find reasonable priced land. Ackerson Housing and Community Development Commission June 15, 2017 Page 8 of 10 stated the Growth Area is based on what can be sewered based on topography so beyond that it would be too expensive to build. Byler agreed with Lamkins and doesn't want to make these guidelines too restrictive for fear of losing a great potential project. Some of the words could be construed in different ways. Whether the site cannot be "easily" serviced by utilities is a judgment call. The section on pre -development costs covers the utility questions. Additionally, stating "incidental portion" of the site within the 100 -year floodplain. What is the definition of incidental? Hightshoe stated there is a HUD definition for incidental portion. There is an environmental review, basically none of the building can be in the floodplain. Persson said that at the time they were looking to build the Shelter House they looked at property and the building was not going to be in the floodplain but a parking lot would be and therefore the site was rejected. Hightshoe believes it means that the building and access to the building can't be in the floodplain. People must be able to get out of the building safely during a flood event. Vaughn stated the Johnson County Affordable Housing Coalition looked at this and it wasn't clear to them how the form would actually identify a purchase. Is there any weighing of the questions, or anything quantifying on the application. Hightshoe said Staff didn't want there to be a points basis because it is so hard to acquire land for affordable housing. Persson questioned the validity of planned transit, noting that when she bought her property on the southwest edge of town they were told there would be transit within a couple years and it was more like 15 years before it happened. Hightshoe agreed that with land on the outskirts of town it is hard to know how soon transit will get to those locations. Byler suggested removing the first bullet from the disqualifiers and including that information regarding floodplains to question 6. Additionally the second bullet could be removed because question 5 discusses utilities, as well as the fourth bullet could be included in question 5 or question 7. Lamkins suggested leaving the fourth bullet but removing the wording "severely limits' and therefore if environmental contamination prohibits residential development then the property is disqualified. Persson doesn't think it is in anyone's benefit to approve anything that was in the 100 -year floodplain. McKinstry likes the use of the incidental portion language, there are often situations where a backyard will flood but not the house or the access to the house and would hate to disqualify low income housing just because a backyard floods. Conger doesn't feel the bullet points are unreasonable. Lamkins agrees with Conger, but the first priority has to be getting people a place to live and, yes, maybe deal with rare inconveniences of flooding but at least have options of where to live. Byler noted the bottom line is fear of disqualifying a project because of certain words that can be seen as different meanings from two different people. If the Commission wants to keep all five bullets, perhaps they can just be reworded to be more specific (removing "easily" or "severely limits," etc.). The Commission discussed language changes and agreed to keep all five bullets but remove the language from "easily" from bullet two and "severely limits" from bullet four. Housing and Community Development Commission June 15, 2017 Page 9 of 10 Lamkins moved to recommend City Council approval of the draft Affordable Housing Land Bank Guidelines with the following language to replace the criteria that would disqualify a property from consideration: • More than an incidental portion of the site is in the 100 -year floodplain. • The site cannot be serviced by utilities. • The site is not in the City's designated Growth Area. • There is environmental contamination on the site that prohibits residential development. • The site is not in compliance with the Affordable Housing Location Model. Persson seconded the motion. A vote was taken and the motion passed 8-0. RECOMMENDATION TO CITY COUNCIL REGARDING DRAFT CITIZEN PARTICIPATION PLAN AMENDMENT: Ackerson noted that the Citizen Participation Plan is the document that outlines how the City presents the decision making of federal funds to citizens. These are requirements by HUD and the Federal Government. This document was last updated in 2004 and the City is now required to update it to incorporate the Assessment of Fair Housing. Essentially it is a year-long process to research and get input from agencies in the community to find out what the critical needs are. That document is then used to craft the City's Consolidated Plan (the five-year funding plan). In the process of updating the document to include the Assessment of Fair Housing, Staff also is making some housekeeping changes such as replacing the word "hearing" with "meeting" and replacing "citizen" with "resident". Ackerson pointed to the footnote on page 2 of the document describing why the word citizen is still in the title of the document. He stated that because most people access City documents online, they are proposing to remove the language on page 11 that states they will send an updated copy of the document to the library. The main changes are how the City defines amendments to Action Plans. In the past Staff would present a lot of minor detail changes in the Annual Action Plan which would require a 30 -day public comment period for activity level changes. The projects and activities in the FY18 Annual Action Plan will reduce the number of "Substantial Amendments" but retain activity oversight by the HCDC and City Council. Olmstead moved for approval with minor edits. Lamkins seconded the motion. A vote was taken and the motion passed 8-0. Hightshoe provided a brief update on Invest Health activities underway, including survey results. CORRESPONDENCE: Ackerson noted the enclosed information regarding the Housing Iowa Conference. ADJOURNMENT: Lamkins moved to adjourn and Persson seconded. The motion was passed 8-0 and the meeting adjourned. Housing and Community Development Commission June 15, 2017 Page 10 of 10 Housing and Community Development Commission Attendance Record Name Terms 8/18 9/15 10/20 11/17 12115 1119 219 2/16 317 4/20 6/15 Byler, Peter 7/1/17 X X X X X X O/E X X X X Conger, Syndy 7/1/18 X X O/E X X X O/E X X X X Harms, 711/19 X X X X X X X X X X X Christine Lamkins, Bob 711/19 O/E X O/E X O/E X O/E X X O/E X McKinstry, 711/17 O/E O/E X X X X X X X O/E X John Olmstead, 7/1/18 X X O/E X X X X X X X X Harry Persson, Dottie 7/1/17 X X X X X X X X X X X Seiple, Emily 711/18 X X X X, X X X X X X -- Vaughan, 711/19 X X O/E X X X X X X X X Paula I KeT. X = Present O = Absent O/E = Absent/Excused — = Vacant or prior commissioner 10-03-17 4b(3) MINUTES FINAL HOUSING AND COMMUNITY DEVELOPMENT AUGUST 17, 2017 — 6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT: Syndy Conger, Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, Bob Lamkins, John McKinstry, Harry Olmstead, Paula Vaughan MEMBERS ABSENT: Maria Padron STAFF PRESENT: Kris Ackerson OTHERS PRESENT: Mary Ann Dennis RECOMMENDATIONS TO CITY COUNCIL: None. CALL MEETING TO ORDER: Ackerson called the meeting to order at 6:30 PM. APPROVAL OF THE JUNE 15. 2017 MINUTES: Olmstead moved to approve the minutes of June 15, 2017 with edits. Conger seconded the motion. A vote was taken and the motion passed 8-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. NOMINATION & ELECTION OF OFFICERS: Ackerson stated the Commission nominates and elects a new Chair and Vice Chair each year. Eastham nominated Olmstead as Chair, McKinstry seconded the motion, a vote was taken and the motion passed 8-0. McKinstry nominated Paula Vaughn to be the Vice Chair, Harms seconded the motion, a vote was taken and the motion passed 8-0. CONSIDER A RECOMMENDATION TO CITY COUNCIL REGARDING UNALLOCATED LOCAL FUNDS SET - ASIDE FOR LOW INCOME HOUISNG TAX CREDIT PROJECTS: Ackerson reminded the Commission that last year the City Council started setting aside money for affordable housing projects. It is split up 50% goes to the Housing Housing and Community Development Commission August 17, 2017 Page 2 of 6 Trust Fund, 25% goes to land banking, 20% goes to tax credit and 5% to emergent situations (case-by-case basis). When the fiscal year ended on June 30 there were no tax credit applications so that $200,000 will rollover to the FY18 pot of funds. Affordable Housing Line Item & Distribution FY17 Actual Actual Remaining SOX HTF $500,000 5500,000 $o 25% Land Banking $250,000 $0 $250.000 20% Tax Credit $200,000 50 SM000 No tax credit applications received In FY17 5% Emergent situation 550,000 538000 $14000 If not used by end of FY, reserved for land banking $1,000,000 $466,000 FYI$ Actual RemAring 50%HTF $325,000$325,000 $O Issue payment August 2017 25% Land Banking $162,Soo 50 $162,500 2044 Tax Credit $130,000 so $130.000 5% Emergent Situation 532.500 $0 $32,500 If not used by end of FY, reserved for land banking 5650,0011 $325,000 Cumulative Totals FY18 Budget FY18 Budget Avertable for land banking S428,S00 smsoo Available for tax credits $33QO0o OR $130,000 Avalable for Emergent Situations $32,500 $32,500 Total $791,000 $791,000 Without any action the money just rolls over, however Ackerson noted that there was interest among the last Commission to discuss possibly allocating that left over money to land banking. Ackerson wanted to bring this before the Commission before they received applications for the low-income housing tax credit funds. The City published an announcement and sent it to tax credit developers. The applications are due at the end of this month so if the Commission is interested in taking that $200,000 and putting it towards land banking that needs to be presented to City Council. Fixmer-Oraiz asked Ackerson to outline what land banking is for the new members of the Commission. Ackerson explained it just means they are putting money aside to buy presumably vacant property for the development of affordable housing units. The City would work with a developer or sell the land to a developer contingent on them providing affordable units. Ackerson noted that most of the land the City can afford is on the outskirts of town and might not be developable right away (could be five or ten years). Conger asked how much land would that amount of money purchase if in land banking or how many projects it might attract if it were put in tax credits. Lamkins asked if a parcel costs more than what is in the land banking account would the City borrow the rest. Ackerson thought that would not be likely. Eastham felt the Commission could make a recommendation to Council to purchase the land with general funds and then increase the allocation to pay back that cost over the next few years. Lamkins agreed with Eastham noting that if the City postpones purchasing a parcel of land there may not be another opportunity for quite some time due to rapid increase of land values. Housing and Community Development Commission August 17, 2017 Page 3 of 6 Lamkins asked how the tax credits work. Ackerson explained that the State provides tax credits that are federally funded. The most recent one funded in Iowa City was on Arthur Street which is under construction right now. He noted there are a lot of requirements for a tax credit application as they are very competitive and the City's contribution is usually fairly small. Mary Ann Dennis (The Housing Fellowship) stated that the tax credits have eligible basis for the developer and the land is not an eligible basis under the low-income housing tax program. Dennis believes either option is good because it is money being used for land. She said for the projects and credits they use the credits pay for about 70% of the project cost. The 30% gap is usually the land and paid for from other sources (such as private donations or local support). Eastham asked if the land can come out of a land bank to be used in a tax credit project. Dennis replied not if it is City -owned unless there is a long-term land lease. The Housing Fellowship has done two projects with land leases simply because the land is too expensive in Johnson County. The Iowa Finance Authority doesn't like the land leases as they are much more complicated. Ackerson noted the City would buy the land, issue an RFP (request for proposal — competitive application process) and it's possible that a tax credit developer would apply and pursue a tax credit project on that land. Dennis added that the Iowa Finance Authority has rules regarding cost caps for tax credit projects and they just recently stated that the cost of land is not included in the cost caps. Dennis elaborated that in a tax credit project, not all of the units need to be affordable but the financing from the credit program would only go towards the affordable units. Olmstead asked how the developers would know if the City has land available. Dennis said those developers are constantly searching so they would know. Eastham stated that increasing the amount of money that is spent for, or allocated in the coming budget, for land banking seems pretty wise because then the City controls the land and it can be used for tax credit projects and those developers are then not bidding for land amongst other developers, causing a higher price. Therefore the key is to get the land first, so then affordable housing can be put on that land. Therefore the Commission should allocate the money for land banking. Dennis stated that is correct generally, however currently she has a willing seller in an appropriated zoned land area to construct 28 one- and two-bedroom, fully -accessible units in the Riverfront Crossings District. The tax credits would pay for about 70% of the total project cost, land is not in the eligible basis for the tax credits. Dennis stated that the preliminary budget states if The Housing Fellowship was awarded the credits (the application is due November 7) the tax credit would provide about $4 million in equity (cash) to the project. The project can then support $1.7 million in private debt and they already have $800,000 committed from the Johnson County Housing Trust Housing and Community Development Commission August 17, 2017 Page 4 of 6 Fund, which leaves a gap of $326,777. If the Commission could allocate the funds to tax credits it could be used for this project. Dennis also noted another common barrier is that an applicant must have an executed and exclusive purchase option or contract from the seller that is valid for nine months after the date of the application due date. Therefore when they are trying to buy land in Iowa City and the seller doesn't want to wait until the following year to close the deal it is hard to find sellers. Ackerson reminded the Commission that if the funds are allocated to tax credits, anyone can apply and The Housing Fellowship is not guaranteed those funds, but they will apply for them. Dennis noted that often the investors are huge corporations (US Bank, big energy corporations, insurance companies, etc.) that apply for the tax credits to build affordable housing units because they want the credits, but then have no interest in owning or managing affordable rental housing. Those companies will get the credits for ten years, the units must be affordable for fifteen years, then after that they sell them and get out so any qualified non-profit is eligible to pursue the right of first refusal and purchase those units for $1 and any debt that is owed on the units. Ackerson echoed what Eastham said earlier about leveraging and the millions of dollars of corporate funds that will come into the community and allow the local banks to have funds to do other projects. Eastham feels it is best to keep the allocations the way they are and let the surplus roll over into tax credits. Ackerson stated that if a project became available where land banking would be needed, then they could do some reallocation at that time, if funds are available. Dennis shared with the Commission that the Iowa Finance Authority is having their annual housing conference September 6, 7, & 8 and the tax credit syndicators all come to that conference and one of the syndicators that The Housing Fellowship has worked with for years is trying to organize a state-wide coalition of developers. She showed him the City's Affordable Housing Plan and he was impressed with it and said no other community in Iowa is as forward thinking regarding affordable housing as Iowa City. Ackerson noted the City issued the request for proposals for the tax credit application for $330,000 and those applications will be reviewed at the Commission's next meeting. Ackerson and Dennis had discussed earlier this week that instead of having a deadline (or application window) leaving it open next year so anybody that has a project can come to the City and make a proposal because negotiating the deals is very difficult and it is hard to time when the developer and land owner will come to an agreement so that should be put on a future agenda to discuss. Ackerson also mentioned another benefit of the tax credits is because there are all these outside investors there are strict management guidelines for the maintenance of the properties so they are often some of the best housing you can find in addition to be affordable. Housing and Community Development Commission August 17, 2017 Page 5 of 6 Ackerson stated that he will keep the Commission posted on allocations for these funds. STAFF/COMMISSION COMMENT: Ackerson reminded the Commission to not "reply all" to emails Also Stan Laverman (Housing Inspection Services Division) went with Ackerson to Iowa City Compassion and met with people that were there for a back to school event. They were handing out backpacks and clothes and had a barbeque dinner. They asked for input on what the City could do to improve neighborhoods and Ackerson will report on those comments at the next meeting. Finally, Ackerson passed around a sign-up sheet for people who are planning to attend the Johnson County Affordable Housing Coalition meetings to avoid having a quorum present. Only four commissioners should be in attendance at any one meeting. None. ADJOURNMENT: Eastham moved to adjourned. Lamkins seconded, a vote was taken and the motion passed. Housing and Community Development Commission Attendance Record 2017-2018 Name Terms 9/15 10/20 11/17 12/15 1/19 2/9 2/16 3/7 4/20 6/15 8/17 Conger, Syndy 7/1/2018 X O/E X X X O/E X X X X X Eastham, Charlie 7/1/2020 ---- --- --- --- --- --- --- --- --- --- X Fixmer-Oraiz, Vanessa 7/1/2020 ---- --- --- --- --- --- --- --- --- --- X Harms, Christine 7/1/2019 X X X X X X X X X X X Lamkins, Bob 7/1/2019 X O/E X O/E X I O/E X X O/E X X McKinstry, John 7/1/2020 O/E X X X X X X X O/E X X Olmstead, Harry 7/1/2018 X O/E X X X X X X X X X Padron, Maria 7/1/2018 --- --- --- --- --- --- --- --- --- --- O/E Vaughan, Paula 7/1/2019 X O/E X X X X X X X X X Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant or prior commissioner Approved Minutes of the Human Rights Commission Regular Meeting August 16, 2017 Helling Conference Room 410 E. Washington Street Iowa City, IA 52240 1. Call to Order Chair Hanrahan called the meeting to order at 5:30 PM. Commission Members Present: Jeff Falk, Adil Adams, Tahuanty Pena, Kim Coulter, Shams Ghoneim, Andrea Cohen. Staff Present: Stefanie Bowers. Hanrahan, Eliza Willis, Barbara Kutzko, Joe 2. Recommendations to City Council: None. 3. Approval of July 18, 2017 Regular Meeting Minutes: Commissioner Coulter moved to approve the minutes; the motion was seconded by Commissioner Kutzko. A vote was taken and the motion passed 5-0. (Commissioners Cohen and Ghoneim abstained as they were not present on this meeting date. Commissioners Adams and Pena were not present for the vote). —TrorTrm 4b(4) 4. The Social Justice Racial Equity Grant Process and Evaluation Rubric for FY18: The subcommittee has selected a budget template to be used with the application for FYI 8. Staff will be sent the categories to be noted in this template. Staff recently issued a news release to notify the community of when the grant would be available and how to apply for it at that time. The news release can be found at https://www. icgov. org/news/save-date-apply-social-justice-and-racial-equity-grants. 5. National Hispanic Heritage Month Proclamation. Commissioner Kutzko will accept the proclamation on behalf of the Human Rights Commission at the September 5, 2017, City Council formal meeting. 6. Rapid Response Team The subcommittee will meet in the near future to discuss final steps. Suggestions were made as to possible organizations or groups to work with on this team. Staff will assist in reaching out to those collaborators. Human Rights Annual Award Breakfast: Hanrahan, Pena and Willis will serve on the subcommittee to select recipients for awards. At the September Human Rights Commission meeting, the subcommittee will select a date to review nominations and determine which roles each Commissioner will hold at the annual event. Staff will send the list of past honorees to Commission members for their review and update the flyer with the venue for the event. Former Iowa State Senator and Congress person Jean Lloyd -Jones will serve as the keynote speaker. Approved Minutes of the Human Rights Commission Regular Meeting August 16, 2017 Helling Conference Room 410 E. Washington Street Iowa City, IA 52240 8. University of Iowa's Center for Human Rights Advisory Committee: The Center has a three part community forum on Making All Children Matter. The events include Setting the Stage (September 9, 2017), Recording Experiences & Responses (October 21, 2017), and The Right to a Livable Future: Making All Children Matter (December 10, 2017). Further information including locations on these upcoming programs will be sent out by Commissioner Ghoneim. 9. Building and Crossing Bridges Together: The subcommittee will meet to devise a list of possible programs or events that are aimed at engaging the community. 10. Iowa City Community School District Equity Committee: The District is establishing a task force with the specific charge of looking at the LGBTQ culture and environment for students in its schools and will provide feedback and prioritize the recommendations regarding how to support positive experiences and outcomes for LGBTQ students. The taskforce is being convened in response to the 2017 Iowa City Community School District Student Experiences of School Climate Report and survey data that revealed a consistent pattern of disparities in student experiences for non -binary gender identified and LGB identified students. More information on the report can be located at http://ppc. uiowa. ed u/social-policy/study/Ig btq-student-experiences-iowa-city-com munity- school-district. The committee is also working on a list of questions related to equity to pose to candidates running in the general election for the school board on September 12, 2017. The responses will be provided to local news outlets. 11. Announcements from Commissioners: Coulter provided a summary of topics and conversations discussed at the August 9, City Manager's Roundtable. Willis spoke on attending the August 10, Party in the Park at Hickory Hill as a Commission representative. Cohen mentioned two upcoming events being sponsored -by the United Nations Association Iowa Chapter. Adams spoke on attending the Iowa Soul Festival held on August 4 and 5 in downtown Iowa City. Kutzko mentioned attending the July 20, Party in the Park at Mercer as a Commission representative. 2 Approved Minutes of the Human Rights Commission Regular Meeting August 16, 2017 Helling Conference Room 410 E. Washington Street Iowa City, IA 52240 Ghoneim provided an update on the Press Citizen's Editorial Board speaking with the Iowa City Community School District's Superintendent, School Board, and School Board Candidates. 12. Announcements from Staff: Next regular meeting date Tuesday, September 19 at 5:30 PM. Adjournment: The meeting was adjourned at 6:57 p.m. Approved Minutes of the Human Rights Commission Regular Meeting August 16, 2017 Helling Conference Room 410 E. Washington Street Iowa City, IA 52240 Member Attendance Sheet Commissioner Term Exp. 1/17/17 2/21/17 3/14/17 4/25/2017 5/16/17 6/20/17 7/18/17 8/16/17 B. Kutzko 1/2020 Present Present Present Present Present Excused Present Present J. Falk 1/2020 Present Present Present Present Present Present Present Present T. Pena 1/2020 ------ ------- ---------- Present Present Present Present Present J.Coulter 1/2019 Present Present Excused Present Present Present Excused Present A. Adams 1/2019 Present Present Present Present Present Present Present Present E. Willis 1/2019 Present Present Present Present Excused Present Present Present A.Cohen 1/2018 Present Present Present Excused Present Excused Excused Present K. Hanrahan 1/2018 Present Present Present Excused Present Present Present Present S. Ghoneim 1/2018 Present Present Present Present Excused Present Excused Present too 4b(5) Approved Minutes August 17, 2017 MINUTES SENIOR CENTER COMMISSION August 17th, 2017 ROOM 209, IOWA CITY/JOHNSON COUNTY SENIOR CENTER Members Present: Mark Holbrook, Kathy Mitchell, Margaret Reese, Kenn Bowen, Hiram (Rick) Weber, Cheryll Clamon Members Absent: Lorraine Dorfman Staff Present: Kristin Kromray, Linda Kopping Others Present: CALL TO ORDER: The meeting was called to order by Reese at 4:08 PM. RECOMMENDATIONS TO COUNCIL: None. APPROVAL OF MINUTES FROM July 20, 2017 MEETING: Motion: To accept the minutes from the July 20, 2017 meeting, as amended. Motion carried on a vote of 5/0. Bowen/Holbrook PUBLIC DISCUSSION: None. DISCUSSION OF COMMISSION VISITS: Commissioners Bowen and Holbrook could not attend a meeting in the previous month. REVIEW OF SECTION 2 OF OPERATIONAL HANDBOOK (2011) AND DRAFT POLICIES: Commissioner Clamon joined the meeting. Kopping reported she began work reorganizing the operational handbook. As discussed at the previous meeting she removed all of the procedures and other duplicated information (such as city policies that are available on the city website). The commission reviewed sections 2 and 3 for structure. Approved Minutes August 17, 2017 The commission discussed how Friends of The Center would be mentioned in the policies. It was decided that Friends would be mentioned as the fundraising body and that the Senior Center would work with Friends on budget needs but Friends will have their own set of policies and procedures that are separate from that of the Senior Centers. Kopping asked for help reviewing the policy manual content. Clamon and Mitchell will meet to review section 2 with a deadline of next Thursday. Holbrook and Reese will review section 3 within two weeks. OPERATIONAL OVERVIEW: Kopping noted the 5 year goals with staff notes. Staff will circulate the goals every quarter for updates. Kopping noted that some of the projects around the building are moving forward. Emily finished the grant project reporting for the Family Folk Machines art grant. Friends of the Center will be advertising in the Corridor Business Journal Giving Guild. The Friends website is moving forward although slowly and will hopefully be finished by the end of summer. In September staff will submit FY19 budget proposals. Bowen asked about underwriting for SCTV. Since SCTV airs its programing on public access this is not an option. The Commission discussed underwriting in the program guide. COMMISSION DISCUSSION: Holbrook asked how the hiring process of a new Senior Center Coordinator will be handled after Kopping retires. Kopping is unsure how the process will proceed. She noted when she was hired commission input was requested. ADJOURNMENT: Motion: To Adjourn. Motion carried on a vote of 6/0. Holbrook/Mitchell Approved Minutes August 17, 2017 Senior Center Commission Attendance Record Year 2017 Name Term Expires 9/15/16 10/20/16 11/17/16 12/8/16 1/19/17 2/16/17 3/16/17 4/20/17 5/18/17 6/15/17 7/20/2017 8/17/2017 Kenn Bowen 12/31/20 X NM X X X X X NM NM X O/E X Cheryll Clamon 12/31/18 X X X NM NM X X O/E Lorraine Dorfman 12/31/19 O/E NM X O/E -- Jack Hobbs 12/31/16 X NM X X X X X NM NM X X X Mark Holbrook 12/31/18 X NM X X Jay Honohan 12/31/16 X NM X X X X X NM NM X X X Kathy Mitchell 12/31/19 X NM X O/E X X X NM NM X X X Margaret Reese 12/31/17 Hiram (Rick) X O/E X 12/31/20 Weber Key: X = Present O = Absent O/E = Absent/Excused NM = No meeting -- = Not a member Approved Minutes August 17, 2017 10-03-17 4b(6) Approved Minutes Iowa City Telecommunications Commission August 28, 2017 — 5:30 P.M. City of Iowa City Cable TV Office, 10 S. Linn St. - Tower Place, Level 3A Call to Order: Meeting called to order at 5:31 P.M. Members Present: Matthew Brenton, Laura Bergus, Derek Johnk, Paul Gowder Members Absent: Staff Present: Ty Coleman Others Present: Gerardo Sandoval, Bond Drager Recommendations to Council: None Approval of Minutes: Bergus moved and Gowder seconded a motion to approve the June 26, 2017 minutes as presented. The motion passed unanimously. Announcements of Commissioners: Introductions were exchanged between the newly appointed member, Matthew Brenton, and the rest of the Commission. Short Public Announcements: None Election of Officers: Derek Johnk was voted by members of the Commission to continue as Chair. Paul Gowder was voted to continue as Vice Chair. Consumer Issues: Coleman noted that one of the two months reported had no complaints submitted to the Cable TV Office. Bergus asked if the Cable TV Office phone number was still printed on subscriber bills. Coleman said he would confirm with Mediacom. Bergus also noted that it would be nice to have this information included in digitally -distributed bills. Mediacom Report: Coleman reported that he received information that Mediacom's Letter of Credit to the City was still in place. Approved Local Access ReVorts: Bond Drager from the Iowa City Public Library and Gerardo Sandoval from Public Access Television introduced themselves to the Commission's new member. Sandoval reported that PATV is investigating the possibilities for developing its property at Lafayette St. Sandoval also noted that PATV had recently acquired some new equipment that allows for wireless multi -camera productions and live -streaming. Drager reported that the Library is adding ten additional hotspots to its offerings, saying that they have been well-received. City Cable TV Office Report: Coleman noted that the Cable TV Office had been producing programming related to the upcoming School election, including a League of Women Voters forum that presented both sides of the bond issue found on the ballot. Coleman said that a short informational video was also produced. Also, the Meet the Candidates project had recently been completed, offering candidates a chance to speak to viewers for up to five minutes. Coleman said that his staff would also be recording an upcoming candidates forum sponsored by the Iowa City Education Association. He said that a "Meet the Candidates" page had been created on the City Channel 4 website at citychannel4.com/mtc and featured all of the election -related content being produced as well as a list of other candidate forums being held in the community. Sandoval noted that PATV would be producing and live -streaming an Education Exchange program featuring the school board candidates. Coleman said he met with the Housing Action Committee of the Johnson County Livable Community organization to discuss a series of public service announcements to highlight items to be considered by those looking to build or buy a home to ensure long-term living potential. Johnk asked if Commissioners could receive links to some of the programming created by the access channels ahead of each Telecommunications Commission meeting. Bergus suggested that Coleman could direct Commissioners to the online media sites of the access channels by including links in the email that is sent to the Commission prior to each meeting, saying that it would serve as a reminder to members of the Commission to check out some of the latest Iowa City access programming. Johnk said he enjoys promoting the work of the access channels. Coleman said that the access channels would appreciate the extra promotion. Adjournment: Bergus moved and Gowder seconded a motion to adjourn. The motion passed unanimously. Adjournment was at 5:49 p.m. TELECOMMUNICATIONS COMMISSION 12 -MONTH ATTENDANCE RECORD (x) = Present (o) = Absent (o/c) = Absent/Called (Excused) Gowder Bergus Kilburg Johnk Homewood 10/24/2016 x x x x vacant 11/26/2016 Meeting not held due to lack of quorum. 12/12/2016 x x o/c x vacant 01/23/2017 o/c x x x vacant 02/27/2017 Meeting not held due to lack of quorum. 03/27/2017 x x x o/c vacant 04/24/2017 x x x x vacant 05/22/2017 x x x x vacant 06/26/2017 o/c x x x vacant 07/24/2017 Meeting not held due to lack of quorum. Brenton 08/28/2017 x x x x vacant 09/25/2017 x x x x vacant (x) = Present (o) = Absent (o/c) = Absent/Called (Excused)