Loading...
HomeMy WebLinkAboutCCEDC Packet 11-27-17If you need disability-related accommodations in order to participate in this program/event, please contact Wendy Ford, Economic Development Coordinator at 319-356-5248 or wendy-ford@iowa-city.org. We ask that contact us early to allow sufficient time to meet your access needs. Agenda City Council Economic Development Committee Monday, November 27, 2017 4:00 pm Emma Harvat Hall City Hall 1. Call to Order 2. Consider approval of minutes from the October 19, 2017 Economic Development Committee meeting 3. Consider request for funding for Riverside Theater 4. Consider recommendation for staff to proceed with legislative process establishing East Foster Road Urban Renewal Area 5. Staff report 6. Committee time 7. Other business 8. Adjournment EDC 11.27.17 packet page 1 EDC October 19, 2017 1 PRELIMINARY MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE OCTOBER 19, 2017 EMMA HARVAT HALL, CITY HALL, 8:00 A.M. Members Present: Susan Mims, Rockne Cole, Jim Throgmorton Staff Present: Wendy Ford, Simon Andrew, Geoff Fruin, Eleanor Dilkes Others Present: Andre Perry (Englert/Mission Creek); Karen Kubby; Mazahir Salih; Mark Ginsberg; Tom Banta (ICAD); Alyssa Trimble (Historic Preservation); Gene Chrischilles; Ryan Sempf (Iowa City Area Chamber of Commerce); Karyl Bohnsack (Iowa City Homebuilders Association); Nancy Bird (Iowa City Downtown District) RECOMMENDATIONS TO COUNCIL: Cole moved to approve the request for funding from the Englert Theater for $50,000 (FY19 budget and FY20 & FY21 intent to budget). Throgmorton seconded the motion. The motion carried 3-0. Throgmorton moved to consider the request for funding from Mission Creek for $20,000 (FY19 budget and FY20 intent to budget). Cole seconded the motion. The motion carried 3-0. Cole moved to recommend the amended TIF policy to the City Council. Throgmorton seconded the motion. The motion carried 2-1, Mims in the negative. CALL MEETING TO ORDER: Susan Mims called the meeting to order at 8:00 A.M. and asked those present to introduce themselves for the minutes. CONSIDER APPROVAL OF MINUTES FROM THE SEPTEMBER 15, 2017 ECONOMIC DEVELOPMENT COMMITTEE MEETING: Throgmorton moved to approve the minutes from the September 15, 2017 meeting. Cole seconded the motion. The motion carried 3-0. CONSIDER ANNUAL REPORT AND REQUEST FROM ENGLERT THEATER FOR $50,000 (Andre Perry, Executive Director): Wendy Ford began the discussion by giving Members some background information. She noted that the City has been supporting the Englert since fiscal year 2009 and referred to her memo in the meeting packet for more information. The City’s support has been at $50,000 since that time, according to Ford, except in fiscal years 16 and 17, when an additional $20,000 was approved for capital improvement expenses. Ford continued, stating that the Englert has more than doubled the number of patrons that attend events annually since the City began their support. EDC 11.27.17 packet page 2 EDC October 19, 2017 2 PRELIMINARY The Friends of the Englert program has expanded tenfold, helping to contribute to the Englert’s overall financial standing. The request is for operational funding for FY19 and an intent to continue funding at the same level in FY20 and 21. Andre Perry, the Executive Director of the Englert, spoke next. He thanked the City Council and staff for their ongoing support of the Englert. He briefly touched on the mission of the Englert and how they are working to bring vibrancy and excitement to the downtown. Throgmorton stated that he wanted to emphasize just how important the Englert Theater is to what the Council is trying to accomplish with its strategic plan objectives. Cole agreed, stating that he believes this is a perfect example of a public/private partnership. Fruin clarified that for the past two years an additional $20,000 was granted, but that this is not in the request for this year. He added that additional funds have been set aside in anticipation of a capital campaign to do a historic preservation project on the Englert. Mims stated that she agrees with Cole and Throgmorton’s comments, noting that the partnership they have with the Englert is truly an important one. Cole moved to approve the request for funding from the Englert Theater for $50,000 (FY19 budget and FY20 & FY21 intent to budget). Throgmorton seconded the motion. The motion carried 3-0. CONSIDER ANNUAL REPORT AND REQUEST FOR FUNDING FROM MISSION CREEK FOR $20,000 (Andre Perry, Co-founder and producer): Ford noted that there is a two-part memo in the meeting packet that talks about Mission Creek. She noted that it is one of the hallmark events held at the Englert every year. The festival is headed into its 13th year, according to Ford. The request is for $20,000 for FY19 and an intent to budget $20,000 in FY20. Perry spoke briefly, again thanking the City for its continued support. He noted that last year was an adjustment year as the landscape changed somewhat with Hancher coming online. He spoke to how they have made changes as needed as the festival has continued to grow. Throgmorton moved to consider the request for funding from Mission Creek for $20,000 (FY19 budget and FY20 intent to budget). Cole seconded the motion. The motion carried 3-0. REVIEW AND CONSIDER RECOMMENDATION OF TIF POLICY UPDATES TO CITY COUNCIL: Mims asked Ford to run through the most recent edits of the policy. Ford stated that the two most notable changes include Throgmorton’s proposed revisions to the language for the ‘exceptional public benefit,’ for projects seeking to exceed the heights in the desired heights map, for their projects. Continuing, Ford then spoke to the historic preservation section, noting the changes made to the descriptions of the four ways that buildings can be classified as historic in the downtown area. Fruin noted that in the sustainability section that all urban renewal areas would be included and require LEED silver certification. Referring to the opening paragraph of the policy, he noted that there is a direct reference to the 2016/2017 strategic plan and that Members may want to consider some more generic language here. Ford noted a similar reference and change made to the exceptional benefits section, where the committee omitted the reference to the strategic plan. She stated that they could do the same type of thing here. Throgmorton stated that he would be inclined to keep the language as it is now, and when the full Council reviews this, they could amend it with the updated EDC 11.27.17 packet page 3 EDC October 19, 2017 3 PRELIMINARY strategic plan language. Mims agreed, stating that they can add additional language later at the full Council stage. Throgmorton stated that he wanted to clarify one point, and referred to what he recommended in his October 2nd memo. Regarding to the sentence “The provisions of this section will apply until such time as the downtown form based code is adopted,” Throgmorton stated that he did not intend to delete this language, that he sees it in the amended version but that it is hard to see. Throgmorton then spoke to the boxed in item that appeared in the October 2nd memo. He stated that he was trying to incorporate their discussion from the prior meeting, while strengthening some of the elements in the policy. Cole stated that he did not have anything to add. Fruin stated that he would like to have a couple of clarifications made before Members move to a vote on this. The first issue he addressed was the language “These public benefits may include but are not limited to…” He noted that in Throgmorton’s draft, the wording is “These public benefits may include…” Fruin asked for some clarification on how this should be worded in the policy. Throgmorton responded, stating that he believes the changes he made are consistent with the earlier version. As for this piece, he has suggested the language that the public benefits may include, but that it does not mean they must include. Referring to the final sentence on item five, Throgmorton stated that this opens the door to a lot of possibilities, just as the earlier version did. In the last paragraph, where it states that ‘the tallest portion of the project must be stepped back from its street frontages,’ Fruin stated that sometimes the parcels downtown are so small that these types of step-backs are not realistic. He suggested wording that is less restrictive. Throgmorton stated that he meant exactly what he wrote, that he believes it pertains to streets that currently have recognizable historic character, not to streets that don’t. Cole moved to consider recommendation of the amended TIF policy to the City Council. Throgmorton seconded the motion. Mims stated that before they vote she would like to make a comment. She stated that it should come as no surprise that she will not support this. She believes that the height map is where it starts, and that she believes tying the policy to that map is a flawed process. Mims continued, sharing her ideas as to how the sustainability of downtown should be addressed through policies such as this. Throgmorton stated that he understands the points Mims has made. Referring to past meeting minutes, he quoted “Throgmorton stated he is very eager to hear specific recommendations about how they could use TIF to support both development and preservation in the downtown, thereby fulfilling the overall vision expressed in the Comprehensive Plan.” Quoting further, he said, “To preserve and enhance the historic buildings and character of the downtown, while encouraging appropriate infill development with a mix of building uses.” Throgmorton stated that his purpose all along has been to find ways to use TIF to do both – preserve the historic character of the downtown AND encourage appropriate infill development with a mix of building uses. He stated that he has been eager to hear other proposals, but that he has not heard anything to date. Mims responded, speaking first to the focus groups they held early on in their review. She added that once the committee got to a point of some specificity with the policy, this Committee has chosen to move forward without allowing additional organized input, other than the few written comments received. EDC 11.27.17 packet page 4 EDC October 19, 2017 4 PRELIMINARY She reiterated her feeling about the height map, stating that using it sends the message that height is inherently bad for historic preservation; that it restricts our ability to stem sprawl and that with the softening of retail, restricting growth will have a negative effect. Cole then commented, speaking to the question of sprawl and height. He believes that is a valid point. Secondly, Cole noted that the committee has solicited input from people throughout the community for approximately the last year and a half and no one has brought the issue up. Cole continued, noting that he is comfortable with the amount of public input they’ve obtained, and that moving forward with these policies should come as no surprise to anyone, because they have done everything they can to ensure maximum public input. Throgmorton then spoke about the height map again, noting that at the last meeting they discussed the possibility of amending the map at some point. He stated that he is open to going through a process of reconsidering and amending the map over time, but that he believes they need to move forward with these draft policies now. Secondly, regarding public input, he said they should direct staff to explicitly schedule a public hearing for the proposed amendments, at the Council meeting where they vote on them. Mims stated that she would have to go back and look at past minutes, but that she remembers discussion about getting more public input before going to Council. She believes that when they are looking at policies such as these, that they really need to solicit public input and engage in dialogue regarding the proposals that are ultimately presented. The motion carried 2-1, Mims in the negative. STAFF REPORT: None. COMMITTEE TIME: None. OTHER BUSINESS: None. ADJOURNMENT: Throgmorton moved to adjourn the meeting at 8:35 A.M. Cole seconded the motion. Motion carried 3-0. EDC 11.27.17 packet page 5 EDC October 19, 2017 5 PRELIMINARY Council Economic Development Committee ATTENDANCE RECORD 2016 - 2017 NAME TERM EXP. 0 2 / 0 4 / 1 6 0 4 / 1 2 / 1 6 0 5 / 1 0 / 1 6 0 6 / 1 4 / 1 6 0 7 / 1 2 / 1 6 1 0 / 1 2 1 / 6 1 2 / 1 3 / 1 6 0 3 / 2 3 / 1 7 0 4 / 0 5 / 1 7 0 4 / 1 4 / 1 7 0 5 / 2 5 / 1 7 0 7 / 2 1 / 1 7 0 9 / 1 5 / 1 7 1 0 / 1 0 9 1 7 Rockne Cole 01/02/1 8 X X X X X X X X X X X X X X Susan Mims 01/02/1 8 X X X X X X X X X X X X X X Jim Throgmorton 01/02/18 X X X X X X X X X X X X X X Key: X = Present O = Absent O/E = Absent/Excused EDC 11.27.17 packet page 6 Date: November 17, 2017 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Riverside Theater Request for Funding FY19-21 Introduction Riverside Theatre has been a staple of the Northside Marketplace and the Northside Neighborhood for more than 30 years – and of the Festival Stage in Lower City Park since 2000. They are requesting City financial assistance for FY19 in the amount of $20,000 and an intent to budget the same amount for the following two fiscal years, FY20 and FY21. History/Background The Theatre has offered Shakespeare in the Park on the Festival Stage in Lower City Park since 2000 and intends to continue in the summer of 2018, however, with one big change: it will be offered for free to community. The strategy is to produce one outdoor play for a run in June at the Festival stage and a second summer offering indoors at the Gilbert Street stage. The reasons are 1) that producing only one play to run outdoors mitigates half of the unknowns associated with producing two plays outdoors between the weather, construction and possible floods, and 2) that it opens theatre doors to the entire community for free. By doing so, RT aspires to gain new patrons for its indoor season and to expose more of the community to theatre. History of City funding for Riverside Theatre: Fiscal Year 2013 2014 2015 2016 2017 2018 $30,000 $25,000 $20,000 $0 $16,500 $15,000 Analysis In good years, the summer Shakespeare season in Lower City Park has made the difference between a financially successful year or not for RT. More often, than not, however, the summer season is challenged by weather, floods or construction that affect attendance and thus, the bottom line. RT wants to continue to offer Shakespeare outdoors on the Festival Stage while mitigating some of the risk associated with offering two plays there. They plan to offer one for free outdoors in order to build audience and awareness of the theatre’s now full year of indoor productions. The public benefit of offering free theater on a public stage in lower City Park is substantial in itself, and doubles as a strategy to benefit RT’s financial stability. Recommendation EDC 11.27.17 packet page 7 November 20, 2017 Page 2 The Comprehensive Plan notes that Riverside Theater is one of the organizations that adds to the vitality of the city and states that support for the arts and culture of the community enhances our position in the region and adds significantly to the quality of life of the community and should be continued and institutionalized as an economic development and community betterment tool for the city. Ensuring that Riverside Theater continue as a viable arts business in Iowa City is also consistent with the Central District Plan (updated in 2008), which calls for preserving and promoting the unique aspects of and supporting the economic vitality of the Northside Marketplace. In keeping with the Strategic Plan Priorities, funding RT’s request is aligned with advancing social justice and racial equality, enhancing community engagement and promoting a strong and resilient local economy. Staff recommends the funding request of $20,000 for FY19 and an intent budget the same for FY20 and FY21. EDC 11.27.17 packet page 8 October Dear Wendy, Thanks very much for making time to meet We would funding for Riverside Theatre consider budgeting funding followin This support will full-year programming We feel this is an initiative that we as an organization can take on this year, and we ho more of the community in performances at City Park via this strategy. The attached in the Thank you for facilitating longtime partnership with R If you have any questions or would like to meet again to review specifics, please don’t hesitate to let us know Sincerely, Jennifer Holan Executive Director jennifer.holan@riversidetheatre.og 319-887 213 North Gilbert St. Iowa City, IA 52245 Box Office: (319) 338-7672 Admin Office: (319) 887-1360 Fax: (319) 887-1362 info@riversidetheatre.org www.riversidetheatre.org October 30, 2017 Dear Wendy, Thanks very much for making time to meet with me. We would like to request that that the City consider $20 funding for Riverside Theatre for its FY2019 budget, and that it also consider budgeting funding at a similar amount for each of the following two years (FY20 and FY21). This support will help us continue to provide the community with our year programming, including Free Shakespeare in June and July We feel this is an initiative that we as an organization can take on this year, and we hope that the City will support our goal of engaging more of the community in performances at City Park via this strategy. The attached pages briefly describe our plan. We’ll firm up specifics in the next few months. Thank you for facilitating this request. We’re grateful for the longtime partnership with Riverside Theatre. If you have any questions or would like to meet again to review specifics, please don’t hesitate to let us know. Sincerely, Jennifer Holan Executive Director jennifer.holan@riversidetheatre.og 887-1360 $20,000 in , and that it also amount for each of the de the community with our , including Free Shakespeare in June and July. We feel this is an initiative that we as an organization can take on pe that the City will support our goal of engaging more of the community in performances at City Park via this We’ll firm up specifics this request. We’re grateful for the City’s If you have any questions or would like to meet again to review EDC 11.27.17 packet page 9 RIVERSIDE THEATRE Funding Request October, 2017 Executive Summary Riverside Theatre is requesting continued support from the City of Iowa City, in the amount of $20,000 for the City’s upcoming FY19. This is an increase of $5,000 in previous funding, which we hope the City will consider appropriate given our plan to offer Free Shakespeare at the Festival Stage in lower City Park in June, 2018. City funding will help sustain Riverside Theatre through its full-year season, but funding will have the most direct impact on the summer programming, which is one of RT’s and Iowa City’s most unique and valued offerings. We also respectfully request that the City consider budgeting funding at the same amount for the following two seasons. Background: Producing Theatre in Lower City Park In 2017 RT planned to perform both plays, MACBETH and BOMB-ITTY OF ERRORS, outdoors at the Festival Stage. Late May through early June, most rehearsals for MACBETH went off without any weather issues. However, as the show opened, temperatures soared and several serious storms moved through the area. Two of the nine performances were affected by rain and/or lightning— the 6/14 performance was interrupted and held for rain; the 6/15 performance ended early and patrons did not see the conclusion of the play. On another performance day, an excessive heat advisory was issued. During the day many patrons called to see if we were going to cancel the performance and though 90 tickets were sold, only about 60 attended the performance. Ticket sales patterns showed that patrons were extremely wary of booking in advance. Calls to the Box Office indicated that Park Road/Dubuque St. construction was a further challenge to attendance. And attendance throughout the run of MACBETH averaged under 150 patrons per night. With a third of the outdoor performances affected by weather, and because pre-sales did not suggest the Gilbert St. theatre couldn’t accommodate audience for the second show, RT chose to produce BOMB-ITT OF ERRORS indoors. After the announcement was made, the sales that followed the change were strong—nearly all performances were sell out, or close. The smaller indoor capacity limited ticket revenue, but in the end RT felt that ensuring the best patron experience and artistic product was a more prudent choice. RT is committed to producing live theatre at the Festival Stage. The community tells us they value and are proud that outdoor Shakespeare productions happen in their city. However, we need EDC 11.27.17 packet page 10 RT Funding Request, October 2017 Page 2 of 5 more of them to attend, so removing obstacles within our control seems necessary. Mitigating financial risk also has to be a priority for us as an organization. Our plan for summer 2018 is in line with these goals, and increased City funding will help us accomplish it. SUMMER 2018—June-July Programming 1) Free Shakespeare at the Festival Stage RT is planning to not require a ticket purchase to attend the shows at the Festival Stage. This is a radical move, but we believe it makes sense because: a) Ticket price can be an obstacle to participation; removing it will allow us to serve a greater percentage of our community b) We have gained production efficiencies and managed to get our expenses to a level where they can reasonably be expected to be offset by contributions c) The preponderance of free programming in Iowa City during the summer sometimes sets an expectation that our programming in the Park is, or should be free d) Free Shakespeare will open up other funding doors that may be more stable than ticket revenue. It will also likely increase participation in our second (ticketed) summer show, and possibly build audience for future Gilbert St. programming, too. The Shakespeare play currently planned for summer 2018 is ROMEO AND JULIET. Artistic Director Sean Lewis will direct. In the same manner as MACBETH in 2017, the production will be his unique re-envisioning of what for many is a familiar play. Seven performances are planned (a two week run) for mid- to late June. RT’s FY18 Budget, which was approved by its Board in October, includes the following assumptions related to the Free Shakespeare Plan: Un-earned ticket revenue will be offset with an increase of about $20K in summer-related contributions vs. 2017. RT’s Board feels this goal is attainable and is committed to assisting RT staff with solicitation. RT is confident that the Free Shakespeare plan will prompt a) Existing sponsors to consider increasing support b) Existing sponsors of other programming (e.g., the Will Power outreach tour in Iowa City) to add funding for Free Shakespeare c) New/lapsed sponsors to participate The plan has already been probed with a few major partners; all have been supportive. Any increase from the City (requested: $5K) will be put toward this goal. The continued/increased support from the City will further help us make the case for support from other businesses, organizations and individuals in the community. EDC 11.27.17 packet page 11 RT Funding Request, October 2017 Page 3 of 5 The budget also assumes a conservative increase in concessions revenue because of higher attendance. RT will also develop donation request tactics for some attendees. This show will be promoted loudly locally and elsewhere in Iowa. RT will make an announcement as early as December 2017 to build excitement among patrons and donors. In the immediate area, outreach will be central to the marketing plan. RT will promote Free Shakespeare through the WILL POWER tour, which visits Iowa City and Cedar Rapids schools. We’ll also reach out to groups who connect with those who might not have the means to come to a ticketed event. Social media will help us to cover areas within driving distance. And traditional marketing will still be part of the plan (mailed brochure; posters; rack cards at hotels; Iowa Public Radio underwriting; print and online ads, email promotions, etc.) 2) Ticketed programming play at the Gilbert St theatre The second summer play will be a piece that will appeal to young and old alike--THE 39 STEPS is under consideration. It will run for 15 performances from late June-July. This 4-actor retelling of the classic Alfred Hitchcock film noir/mystery is a play RT can produce well indoors. Each of the actors plays multiple characters; there are lots of quick changes and the dialogue is witty (as with BOMB-ITTY). This seems the perfect summer fare for our community. We are adding an extra week of programming to our typical summer plan so patrons will have more opportunities to attend. This will help offset revenue unearned from the FREE Shakespeare. We’ll also attempt to secure actor/crew availability for a 5th week so that an extension can happen, if sales merit. (The need for this provision was learned during BOMB-ITTY last summer.) 2017-18 SEASON—Gilbert St. Though the Free Shakespeare is the big news of our season, from September-April we will be providing the community with 90 other intimate and thought-provoking professional theatre experiences at our Gilbert St. theatre. RT’s Artistic Director Sean Lewis has selected another 6- show season that’s generating positive buzz in the community. All feedback and sales results to date indicate we’re programming what the community wants to see. • Riverdog season pass sales are at 440, an increase of about 10% over last year’s sales. • Our September play, BAKERSFIELD MIST, hit its revenue projection despite the challenges of UI football and strong programming at Hancher--including one free event-- during the run. EDC 11.27.17 packet page 12 RT Funding Request, October 2017 Page 4 of 5 We have projected that the upcoming 17-18 season shows will match or beat the performance of 16-17, during which attendance was up 24% vs. 15-16s: • Up now (October-November): A play by one of the just-announced 2017 MacArthur fellows, Annie Baker, CIRCLE MIRROR TRANSFORMATION • November-December: LUNGS, by Duncan Macmillan. This two-hander from the UK- based playwright of last year’s EVERY BRILLIANT THING features a young, diverse cast and is sure to appeal to the desirable under 40 audience segment. • DETROIT, by Lisa D’Amour. RT is working with the Dramatists Guild Fund to bring the playwright to Iowa City for workshop at RT, in partnership with the UI MFA Playwriting and Acting departments. • A world-premiere of a new play by Jennifer Fawcett, APPLES IN WINTER. • A world-premiere of a new play by Sean Lewis, TOOTH AND NAIL. BUDGET SUMMARY A breakeven budget is projected for RT’s current season. Net revenue projected from the 2-show summer season offsets approximately 25% of RT’s full-year general operating expense. INCOME $ Earned Income 205,561 Contributed Income 254,600 TOTAL INCOME 460,161 EXPENSES $ Artistic 166,630 Production 29,760 Education 3,100 Marketing 54,822 Patron Services 42,278 Administration 50,019 Development 38,711 Facility 74,741 TOTAL EXPENSE 460,061 NET INCOME 100 RIVERSIDE THEATRE FY18 BUDGET EDC 11.27.17 packet page 13 RT Funding Request, October 2017 Page 5 of 5 CONCLUSION This season, RT will continue to ensure that area residents can enjoy buzz-worthy, compelling professional theatre locally—right in their own downtown and City Park. We are upping our game by making one of the most prominent productions free. RT appreciates the City’s partnership and willingness to consider funding support for these efforts. EDC 11.27.17 packet page 14 Date: November 20, 2017 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Agenda item #4 – Consider recommending staff proceed with legislative process establishing East Foster Road Urban Renewal Area Introduction Staff has been working with a developer on plans to complete Foster Road from the intersection with Dubuque Street to Prairie du Chien Road. The developer seeks City assistance with a portion of the costs of building the road and associated public infrastructure. The road would facilitate the development of a senior living residential facility, multi-family apartment units, a series of 4 plexes, and eventually an office use along the road. The Larger Project Developers plan to connect Dubuque Street with Prairie du Chien to facilitate the sale of a parcel of land to a senior living residential operator with plans to build 53 units. The developer would retain the rest of the land and build additional multi-family housing along both sides of the road. The last element of the concept includes the addition of an office use in the northeast corner of the area between Foster Road and I-80. The developer has submitted a rezoning application for the approximately 50-acre area which will be considered by the Planning and Zoning Commission in December. The area is currently zoned RS-12, high density single family residential. To preserve the sensitive slopes and woodlands, the developer seeks the rezoning to cluster the density that would otherwise be allowed on the total area into multi-family buildings near the road. The Urban Renewal Project – Foster Road The City owns the right of way for Foster Road and did some rough grading for it several years ago when plans to complete it were then on the horizon. In fact, the City had the project in the Capital Improvements Plan until FY16 after which it was removed to facilitate budgeting for other CIP projects. The connection between Dubuque and Prairie du Chien has long been considered a eventual significant public benefit as it will provide access to northside neighborhoods, facilitate EDC 11.27.17 packet page 15 November 21, 2017 Page 2 faster emergency vehicle response times and alleviate traffic pressures on other north arterial and connector streets. Now, the developer will build and pay for the road to City specifications from Prairie du Chien Rd to Dubuque St. A future development agreement would outline a cost sharing scheme to be paid in the form of TIF rebates derived from the new taxable value created by the senior housing and the multi-family residential. This diagram shows the eastern half of the project area along the road, bordered by property on both sides owned by the developer, and the concepts for the buildings along the road. For this section of road, the City would split the costs 50/50 with the developer. For the western section of the road, from the developer’s property line westward to Dubuque Street, the City will pay 100% of the costs. The City’s form of payment to the developer shall be through TIF rebates. The Urban Renewal Plan Establishing an urban renewal area enables the City to consider financial participation in a development project. A development agreement detailing specifics of that participation can only be contemplated after an Urban Renewal Plan is in place. The East Foster Road Urban Renewal Plan will be established based on Economic Development – Infrastructure for Non-LMI Housing. This type of urban renewal area is for an area where the City desires to help fund the cost of public improvements to serve housing that does not necessarily serve LMI (low to moderate income) persons. It has two distinct differences from TIF areas the City has employed in the past. 1) It requires that the municipality set aside a portion of the tax increment for Affordable Housing in any area of the community. The set aside must be equal to or great than the percentage of LMI persons in the county, which today in Johnson County is 45%. This results in the City’s ability to use the other 55% of the increment for the public infrastructure project. In Iowa City’s case, the 45% would be used to fund initiatives in the Affordable Housing plan. 2) It has a 10-year life and then ends. This means that TIF funds for the City’s share in the road project would have to be generated in ten or fewer years from no more than 54% of the increment in the district. If the increment created by the developers is ultimately insufficient to cover the City’s portion of the road costs in the 10-year window, that risk remains with the developer. EDC 11.27.17 packet page 16 November 21, 2017 Page 3 Recommendation Staff recommends proceeding with the legislative process to establish the East Foster Road urban renewal area. The process entails: - Drafting an Urban Renewal Plan - Approving a resolution of necessity - Holding a consultation with the County and the Iowa City Community School District - Planning and Zoning Commission Review - Approving a resolution adopting the Urban Renewal Plan EDC 11.27.17 packet page 17