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HomeMy WebLinkAbout1974-03-12 CorrespondenceI ri 5-v e �'venub,-. I\r E . . .... 8-46 ar pids, Ra Iowa ary FebruM 28, 1974 Mayor Edgar Czarnecki 230 Windsor Drive . Iowa City-, Iowa Dear 1h-`1ayor Czarnelcki; 'The Iowa City -members of the Civil Liberties Union board have suggested -that'-:you might be-abletohelp us with a matter that has come -before us. A . resident of a privately o�,med apartment was ticketed for a criminal.. offense :for parking in a slot which was not as,signed to 'him_ --in a parking lot adjacent to the building in which -he lives. Heet-frequently finds that his spot is occupied, as was the case. that night,but to his knowledge those occupying his slot were not ,similarly ..ticketed, : It would appear.that he -w as charged under r 6.2 of the City Code, which makes .parking ,on private parking a nuisance, -to be abated under state statute, Chapter 657-1741 by a civil action, not by a criminal charge placedthe landlord. .by the behest of I am requesting that you seek a city -attorney's opinion about this practice,..as it seems to us.questionable on three grounds: it is selectively e.nfo.r.ce.d,.'policemen are actin- as agents of land- lords, and the policee-department appears to be violating the City Code by treating as a criminal offense what the Code designates as a civil matter: - I hope that we may see.a,city attorney'. s opinion soon, as the case in question is continuing, and it is quite possible that the opinion could save us thenuisanceof -a court effort. Sincerely yours, Signi Falk, president Hawkeye Area Chap -ter cc: John HayekIowa:Civil Liberties Union ,:. 110 E. Washington I-owa City, lowa The Honorable Edgar R. Czarnecki Mayor City Hall Iowa City, Iowa Dear Mayor Czarnecki: COMMITTEE:' ARMED SERVICES LABOR AND PUBLIC WELFARE VETERANS' AFFAIRS _ Lh Thanks for detailing your concerns about the provisions of S. 1541 which relate to revenue sharing. Although the bill reported by the Government Operations Committee contains these provisions, the bill has been referred also to the Rules Committee, which is currently considering changes in the language. Since I recognize the desirability of assured funds for long-term planning, I hope that new legislation will at least avoid tampering with revenue sharing during the already approved five-year congressional commitment to this program. When it comes up for review, then would be the time to evaluate the pros and cons of channeling it through the appropriations process. With best personal regards, AZ4�� -0; HAROLD E. HUGH' HEH:sc -.-' -- -:-1 --- -- 1 h ; - • In LUTHERAN CAMPUS COUNCIE OP IOWA CITY. IOWA CHRISTUS HOUSE ROBERT D. FOSTER. CAMPUS PASTOR CHARLES E. EDISON. DIRECTOR -BUSINESS MANAGER March 4, 1974. Iowa City Council Civic Center Iowa City, Iowa 52240 Sirs_ PHONE (319) 398.7888 124 E. CHURCH STREET IOWA CITY. IOWA 52240 On behalf of our CamDus Misistr.y Agency. I herebv request that you consider changing the parkins regulations to allow on -street parkinq on one (either) side of the lnO block of Cast Church Street during Saturday and Sunday. I understand that one reason for the current no narking restriction on both sides is that the 100 block of East Church is on a Cambus route and too congested with the buses running. However, since the Cambus' do not run on Saturday -Sunday, could not parking on one side he allowed? ;Je do have Saturdav and Sunday activities and there is a parking shortage near here. Your consideration in this matter is appreciated. Thant: you kindly, I remain Sincerely, Rohert Foster ,,. - -1 . . 'i v ;Vr . - . -, - , ", . ,� , - - � . I .�­ � __ ,­,�� .�,4���A,11'��7,,I���.,,,,,,,,-�lI T i . . ., .- �� . ,� , � '. , . ,- - " ., . ,_�.­'� - .r,-�.�.-.-.-,",�-,��X"'X�,��,,�.�9',,,-�..A�f,'�l�.��i�l, , '' _ ." _ ­.. " �, , , !,t, - - - � . - i . . � - , - t ", ­ ", , - " . _-, _� ". , , .-��- b� :,vZ,,,,W,3� ��,' - -�'�,•, "i" - � El'lw _- � _- Z,,,,- , � - �., , - ,� , - , . - , , - " , , , " �, �, - _. �j I . , .- I, I . , � , � , " , . , - . - _1� �,11; , _� - � I . - - . , . 1 - - �� , 'I '��. � , - � " , . , , � " _:, -t�,," ­ -1. 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I � -,C __ r '-r,- , - , - � -_ -, -- -, , .- .., 1� __ � , ,!�ljl* 1, , � � , , _ " a,R�� - Iv, , , .. -, � _2,�, 7.L ,,, - ,j,� ­� L I f I _ I,- ' , , 1��f - " .,� I .r..* --� ,, , ­ , _ , ,� -,,01,, , _ _.�___ ,--,, , -W. - _­ - - 11 _ " ,� ,� ._'l ,,� ., ., ­_ -H�;-,��,, . . _,Z � ,4, - . ., ­ ., ", �', _: t, .� I -M - - , L . 0 yy% THE PENNSYLVANIA HORTICULTURAL SOCIETY 325 Walnut Street • Philadelphia, Pa., 19106 • WAlnut 2-4801 March 11, 1974 Dear Mayor Czarnecki: By now you have probably received a letter from Mayor Frank Rizzo introducing the Pennsylvania Horticultural Society's Bicentennial project "10,000 Trees". The Grove of Cities, to commemorate cities large and small across the nation who have participated in the Bicentennial, is well under way. A five hundred acre tract of land within Fairmount Park has been designated as the area for both individual city groves and the Grove of Cities. The area is adjacent to the site of the monumental outdoor exhibition which will be one of the focal points of Philadelphia Bicentennial activity. 14hen residents of your city come to Phila- delphia in 1976, to visit the historical birthplace of our nation's independence, they will be certain to see their city's trees located in the oldest and largest urban park in the nation. You can participate in one of two ways. A grove of ten trees can be planted in the city area which will be identified by a bronze plaque. The price for an individual grove is $1500.00. The trees planted will be eight to ten feet tall. A second option is to plant one or more trees ($150.00 per tree) in the Grove of Cities. Your city would then be listed with other contributors on the grove's plaque. All contributions will be listed in the Bicentennial archives. After purchasing trees, the Horticultural Society will hold a ceremonial planting that hopefully, you or a representative of your city could attend. This will help make your citizens aware of the project. I hope that you will take this opportunity to participate in the Bicentennial by planting a lasting memorial that future generations will be able to enjoy in the Tricentennial. I have enclosed a brochure used in our public campaign which questions you may have. may answer any further I look forward to hearing from you soon. Sincerely, rnesta D. Ballarq President DATE: March 15, 1974 TO: Project Green FROM: Iowa City City Council RE:\ Letter from Pennsylvania Horticultural Society At their regular meeting on March 12th, the Iowa City City Council officially received the letter from Ernesta D. Ballard, President, Pennsylvania Horticultural Society, concerning their "10,000 Trees" Bicentennial project. The motion was adopted to refer the letter to the Mayor, City Manager and Project Green for report back to the Council. A copy of the letter is attached. MAYOR EDGAR CZARNECKI COUNCIIMEMBERS C. 1. 7-- BRANDT PENNY DAVIDSEN CAROL d.PROSSE I PATRICKWHITE Mayor Edgar Czarnecki, Members of the City Council and the City Manager Civic Center Iowa City, Iowa 52240 Dear Councilmembers and Manager: CIVIC CENTER. 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 319 -354 -IBM RAY S. WELLS. CITY MANAGER March 11, 1974 At its regular meeting of February 21, 1974, the Iowa City Riverfront Commission discussed the hiring of a professional consultant to work on the Riverfront Plan. As a result of this discussion, the following recommendation is being made to the City Council: In considering the charge of the consultant to be hired for the development of a Riverfront Plan, the Iowa City Riverfront Commission recommends that the consultant be instructed that as a first priority, consideration be given to preservation and improvement of the Iowa River Corridor as an open space and green area. The Riverfront Commission asks that this recommendation act as a goal in which the consultant perform his planning work. Contained in the February 21, 1974, Commission minutes are the tentative objectives adopted by the Commission in achieving this goal. Thank you. MN:alo Sincerely, ��,L/1,1�t�ltulzctl Mary fdeuhauser Chairperson Iowa City Riverfront Commission FIRST CHRISTIAN CHURCH 217 IOWA AVE. BOX 887 IOWA CITY. IOWA 82240 PHONE 337-4181 MINISTER: ROBERT L. WELSH ALL BELIEVERS IN CHRIST March 12, 1974 The City Counci 1 Civic Center Iowa City, Iowa 52240 Members of the City Council: When the bid proposal for the redevelopment of downtown was received on October 18, 1973, it stimulated a lot of discussion. One of the parts of the proposal that was discussed at length on Novem- ber 1 at the Church Board meeting of the First Christian Church pertained to street closures. At that time, the Church Board voted to communicate to the Council it's concern that the city not commit itself to the clos- ure of Dubuque Street, between Iowa and Jefferson. Prior to writing a letter to you, I gathered that this was outside of the project area and was not a matter of contractural consideration. Thus, I did not burden you with a piece of correspondence not perti- nent to your considerations. I was surprised on Monday, in reading Part I of the proposed contract, to find reference to Dubuque between Washington and Jefferson. I understand, upon inquiry, how this line got into the contract. I would, however, request that it be deleted at this time, prior to action authorizing the mayor to sign the contract with Old Capitol Associates. I trust no one will interpret or use this letter as disapproval or ap- proval of the urban renewal plan by our Church Board. It is presented in the spirit of concern, calling your attention to the wisdom of the city taking into account traffic patterns effecting congregations in downtown Iowa City. It is in this spirit that I request the Council to delete Item 11, Schedule E, page 3. RLW:rew Sincerely, Robert L. Welsh Minister WILL J. HAYEK JOHN W. HAYEK C. PETER HAYEK The Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Re: Mandatory Park Land Dedications Mayor and Council Members: Recently you referred to my office the question of whether or not the City had the power to require the dedication of park land as part of the subdivision process by developers. We have extensively researched this question. Attached to this letter is a research memorandum of February 8, 1974, by Assistant City Attorney Dick Braun outlining the results of this s tudy. The status of mandatory park land dedications in Iowa is uncertain, as the memorandum indicates. Chapter 409 of the Code of Iowa does not specifically grant municipal corporations this power. However, it is our opinion that the City does have the power to require mandatory dedication or fees -in -lieu of dedication if the following standards are adhered to as set forth in the memorandum 1. The park required must be included in our comprehensive or general plan. 2. The subdivision exaction must be considered reasonable, with regard to the subdivision in question. 3. The requirements must be attributable to the specific needs of the subdivision in question. 4. The advantage gained from the requirement must be used to the direct benefit of the people in that subdivision. You should be aware that enactment of mandatory park land dedications would probably result in litigation in the courts over the issue because of the The Honorable Mayor and - 2 - City Council of Iowa City March 5, 1974 cost of compliance with such requirements to subdividers along with the uncertainty of the legal status of the requirement. Mr. Braun and I will be happy to discuss this matter with you further at your convenience. Respectfully submitted, Jo W. Hayek JWH:vb Attachment DATE: February 8, 1974 TO: John Hayek, City Attorney FROM: Dick Braun, Assistant City Attorney RE: Mandatory Park Land Dedications Subdivision regulations requiring the mandatory dedication of land or fees -in -lieu of land as precedent to plat approval must generally be authorized by state legislation. States fall into three catagories on this issue: 1. Statesspecifically allowing mandatory dedication of land or fees -in -lieu of dedication. 2. States where enabling legislation neither specifically authorizes nor forbids mandatory dedication of land or fees - in -lieu thereof. 3• States where legislation specifically prohibits mandatory dedication of land or fees -in -lieu thereof. I will discuss these three in order placing Iowa in the proper perspective. 1. To name a few, California, Arkansas, Washington, and Minnesota have adopted legislation authorizing dedication and fees -in -lieu provisions. Out of this list of states the California example has created the strongest impact. Prior to the enactment of mandatory dedication legislation in California in 1965, there was a 1949 landmark case already in existence in that state, Ayres v. City of Los Angeles, 34 Cal.2d 31, 207 P.2d 31 (1949). The Ayres case stands for the proposition that a land owner or developer can be required to pay for improvements which are generated by his use of the land whether or not the community is also benefited by the expenditure. It 4s the obligation of the subdivider to comply with reasonable conditions for design, dedication, improvement, and restrictive use of the land so as to conform to the safety and general welfare of the lot owners in the subdivision and of the public. Thus, identifying the existence of benefits to those intended to be burdened by the restrictions, the court made its ultimate leap of logic for which Ayres has been cited ever since: "It is no defense to the condition imposed in a subdivision map proceeding that their fulfillment will incidently benefit the City as a whole.". Ayres vs. City of Los Angeles at page 7. Subsequent to the Ayres case, in 1965, I - ' ME's RAM D i 0 ii UN RE: Mandatory Park Land Dedications Page 2 California passed specific legislation (Section 11546 of the Business Code of the State), which authorized cities and counties, as a condition of subdivision map approval, to require a subdivider to dedicate land for neighborhood parks, or in -lieu thereof, to pay fees for such purposes. Subsequent to this date the Supreme Court of California in 1971 in an expansion of the Ayres doctrine to require dedication of land or fees -in -lieu of dedication for parks and other open spaces handed down an opinion in Associated Home Builders Etc. v. Walnut Creek, 94 Ca1.Rptr. 630, 1$ P.2d 0 Cal. 1971 Associated Home Builders Etc. v. tdalnut Creek sustained the validity of Section 11546 of the Business and Professional Code of the State of California and additionally sustained an ordinance of the city of Walnut Creek enacted pursuant to said statute. The Supreme Court found a merit in the contention that the city should be able to use the collected fees anywhere in the community and not be required to spend such fees on a park conveniently located to the subdivision. It should be noted at this time for future reference that Associated Home Builders disposed of, in a footnote, an important Illinois case in this area, Pioneer Trust and Savings Bank v. Village of Mount Prospect, 22 Ill.2d 3755 1976 N.E.2d 799 (1961). It can obviously be noted that the California position represents one end of the spectrum; that being the most liberal and progressive approach. 2. By far, the most difficult and complex situation is when enabling legislation neither expressly permits nor prohibits requirements for dedication or fees -in -lieu dedication of land as precedent to plat approval. To date there is no general agreement among the various state courts involved, concerning the constitu- tionality of requiring dedications as a condition to subdivision approval. But a few courts have identified constitutional principles that underlie their decision. Common subdivision exactions, such as the dedication of streets and sidewalks are designed to minimize the impact of the subdivision on the municipality and are supported by the general welfare aim of the police power. The arguments supporting these requirements have been uniformly accepted by the courts. A leading case in this area, Ayres v. City Council of Los Angeles, has supported this issue as far back as 1949. This brings us then to the key problem --whether the newer kinds of requirements in sub- divisions, parks for example, should be treated any differently from the more traditional requirements which have received judicial approval (see Iowa Code Section 409.5). Dces the require- ment to dedicate land for parks as a condition to subdivision approval lie within the permissable .objectives of the police power to protect the health, safety, welfare, and morals of the general public? New York and Wisconsin have enabling legislation which neither specifically authorizes nor forbids a municipality to require park land dedication or fees-in-lieu thereof and such provisions have been upheld in principle in their courts. In what has been contrasted as the polar opposite to Ayres and its progency, the Illinois Supreme Court in 1961 enunciated its "specifically and uniquely attributable" test in Pioneer Trust and Savings Bank v. Village of Mount Prospect, 22 Ill.2d 3753 176 N.E.2d 799 (1961). This case involved a municipal ordinance adopted pursuant to the enabling act which required a subdivider to dedicate one acre of land for each 60 residential lots and 1/10 of an acre for each acre of business property to be used for park or school sites. In dispute was the demand by Mount Prospect that a developer of 250 lots dedicate 6.78 acres before his plat would be approved. =conically, the court in Pioneer Trust took notice of Ayres and relied upon it in its decision. The Pioneer Trust court took -,--.ice as in Ayres that the subdivision in question was merely a small piece in a rapidly evolving pattern of development; neither party disputed that school and park sites were badly needed. Unlike Ayres, however, the Illinois court made no reference to any master plan nor to any previous practice of requiring other developers to dedicate land. Treating the immediate subdivision as a matter of first impression, the court reached exactly the opposite conclusion as to Ayres on the critical issue of external benefits: "No developer shall be compelled to dedicate open space unless the need for it is specifically and uniquely attributable to its activity and which would otherwise be cast on the public.", Pioneer Trust at page 801. As is typical, American state courts are prone to disagree with each other. But again, the irony of Pioneer Trust is that it purported to follow Pyres in reaching its decision. The reading of Ayres and the reliance thereon by the Illinois Supreme Court has been criticized by courts and other authorities. Jordan v. Village of Menomonee Falls, 137 N.W.2d 42 (1966), a Wisconsin Supreme Court decision, interpreted 1959 ordinance provisions of the Village of Menomonee Falls (see Appendix A) as follows: "The Court accepted the guidelines given in Pioneer Trust yet observed that the phrase 'specifically and uniquely alutributable to his activity' must not be 'so restrictively applied as to cast an unreasonable burden of proof upon the municipality which has enacted the ordinance under attack'." In most instances it would be impossible for the municipality to prove that the land required to be dedicated for a park or school site as to meet a need solely attributable to the anticiapted influx of people into the community to occupy this particular subdivision. On the other hand, the municipality might well be able to establish that a group of subdivisions approved over a period of several years had been responsible for bringing into the community a considerable MEMORANDUM RE: Mandatory Park Land Dedications Page 4 number of people making it necessary that the land dedications required of the subdividers be utilized for school, park and recreation purposes for the benefit of such influx. In the absence of contravening evidence this would establish a reasonable basis for finding the need for the acquisition was occasioned by the activity of the subdivider. (Supreme Court of Wisconsin, Nov. 2, 1965, 137 N.W.2d 442) At this point it is extremely important to examine Statutues of Wisconsin, Chapter 236. The.pertinent parts of Section 236.45 are layed out in the Jordan decision at pages 445 and 446. Please examine the parts of this section in light of the italicized emphasis provided. This italicized emphasis refers generally to facilitating adequate provision for parks, providing other approving requirements for subdivisions, and liberal construction in favor of the municipality for any ordinance adopted pursuant to state enabling legislation for local subdivision regulation. In 1971 the Wisconsin Supreme Court again reviewed Chapter 236, Statutes, which delegates powers to the cities to approve subdivision plats. In Rodenbeck v. American Mutual Liability Ins. Co., 190 N.W.2d 917 1971 the court at page 916 discussed Chapter 236 as follows: "While it is hornbook law that cities, as creatures of the legislature, have only such powers as are expressly granted to them and such others as are necessary and convenient to the powers expressly granted, it is clear, in regard to plat approvals, that discretion, within limits, was granted to the municipalities." Skipping down 13 lines in the same paragraph the court went on to say, "Section 236.45(2)(b) (the same section referred to in Jordan) directs that any ordinance adopted by a municipality shall be liberally construed in favor of the municipality. This reserves to the city a broad area of discretion in implementing subdivision control provided that the ordinances it adopts are in accord with the general declaration of legislative intent and are not contrary, expressly or by implication, to the standards set up by the legislature. This is a grant of .aide discretion which a municipality may exercise by ordinance or appropriate =resolution." In 1960 the New York Supreme Court in Gulest Associates, Inc. v. Town of Newburgh, 25 Misc.2d 1004, 209 N.Y.S.2d 729, discussed dedication for fees -in -lieu of dedication. The Gulest case provides that the requirements must not only -represent the needs of the particular subdivision but that the advantages of the requirement must directly benefit this subdivision. The question of "who benefits" is particularly important in c—es dealing with fees -in -lieu. Again in 1966 the New York Supreme Court in Jenad, Inc. v. Village of Scarsdale, 18 N.Y.2d 785 218 N.E.2d 673, 27i N.`I.S.2d 55 (1966), examined dedication or fees -in -lieu of dedication. In this decision the New York Court went even a step further. It not only held that communities in New York could impose such requirements, but that it was an example of fine city planning ana therefore reversed the Gulest case on the grounds that the benefit did not have to run directly to the subdivision in question. The court stated that in such situations where separate subdivisions were too small to permit substantial park lands to be set off the creation of such subdivisions were still found to have enlarged the demand for more recreational space in the community. In such cases it was just as reasonable to assess the subdividers on amount per lot to go into a fund for more park lands for the village or town. The court found that one arrangement was no more of a "tax" or "illegal taking" then the other. In coming to their decision in Jenad the New York court cited with approval both Jordan and a-71-9-16-7 Montana Supreme Court case, Billings Properties, Inc. v. Yellowstone County, 144 Montana 25, 39' P.2d 172 2, where a state statute required land to be dedicated for park and playground purposes as a condition precedent to approval of a subdivision plat and which statute authorized the county planning board to waive the requirement in appropriate cases. The Montana court remarked (page 29, 294 P.2d, page 185) that: "Statutes requiring dedication of park and playground land as a condition precedent to the approval of plats are in force in one form or another in most all states." the court said this at page 33, 394 P.2d at page 187: "Apnellant does not deny the need for parks and playgrounds, however it would require the city to purchase or condemn land for their establish- ment. But this court is of the -opinion that if the subdivision creates the specific need for such parks and playgrounds, then it is not unreasonable to charge the subdivider with the burden of providing them." 3. States where legislations specifically prohibit mandatory dedication of land or fees -in -lieu thereof. L was unable to find any legislation that specifically prohibited this activity, rather states such as Illinois in the Pioneer Trust decision have had their statutes interpreted to bring about prohibition of mandatory dedication. In other words, most all states fall under situation #2 where the statutory language neither specifically authorizes nor forbids, but the Supreme Court either allows or disallows mandatory dedication in varying degrees such as in New York, Wisconsin, and Illinois. In Iowa we fall under situation #2 where there is no specific legislation approving mandatory dedication nor is there specific legislation denying mandatory dedication. The more traditional requirements are covered by section 409.5 Code of Iowa, 1973. These are sidewalks,aving, p sewers, water, gas, and electric utilities --all required before the plat is approved. The newer kinds of requirements for subdivisions such as parks would in my opinion be covered by section 409.14 Code of Iowa, 1973. This section is quite lengthy so I will just set out appropriate sections and allow the rest to be read in its entirety from the Code itself. Please read section 409.14 keeping in mind the Jordan decision and comparing Iowa's statutory language with Wisconsin's at pages 445 and 446 of 137 N.W.2d. The relevant paragraph under section 409.14 is paragraph 4 beginning at the bottom left-hand column of page 1830 Code of Iowa, 1973. This section states that plats shall conform to the general plan of the city with regard to streets; alleys, bouleva-rds, parks, and public places and be conducive to an orderly develop- ment thereof and not otherwise interfere with the carrying out of a comprehensive city plan. Additionally, the plats shall conform to the ordinances of the city involved. As you move to the end of the fourth paragraph the following language appears: "Provided that the city council may require as a condition of approval of such plats that the owner of the land bring all streets to a grade acceptable to the council, and comply with such other reasonable requirements in regard to installation of public utilities or other improvements as the coucil may deem reouisite for the protection of the public interest." If this last quotation is compared to the statutory language of the state of Wisconsin contained in the Jordan opinion, it proves to be very similar. Chapter 368 Code of Iowa, 1973, also contains language that is extremely similar to that contained in the Wisconsin statutes and additionally the language supports an interpretation of Chapter 409 that would allow mandatory dedication or fees -in -lieu thereof. Section 368.2 Code of Iowa, 1973, states in relevant part the following: "It is hereby declared to be the policy of the State of Iowa that the provision of the Code relating to the powers, privileges, and immunities of cities and towns are intended to confer broad powers of self-determination as to strictly local and internal affairs upon such municipal corporations and should be liberally construed in favor of such corporations." "Its provisions (Code) shall be construed to confer upon such cor- porations broad and implied power over all local and internal affairs which may exist within constitutional limits." In search of the cases in Iowa, I find no authority concerning mandatory dedication or fees -in -lieu thereof. The objectives of provisions for mandatory dedication or fees -in -lieu of dedication may be considered acceptable in light of traditional subdivision requirements because they are intended to minimize the overcrowding of existing recreation facilities. Most municipalities do not have the economic resources available to meet the increasing demands of new development for municipal services. As a result of new development, the City must respond by supplying the necessary additional capital facilities such as streets, water, sewer facilities and parks. Consequently, the need to reduce this impact would seem to be a proper objective of the police power. Certainly these facilities should be regarded as important to the general welfare of any community. Thus, the arguments that support the constitutionality of dedication requirements are based on reasoning that the need for this additional land is generated by the new subdivision and that dedication or fees -in -lieu of land is for its benefit. It is, therefore, in the interest of the general welfare because it relieves this burden from the total community for not depriving the new residents of necessary facilities. In summary, allowing for the varying degrees of application in the different states and in light of the authorities cited, I feel that the City of i.owa City may require mandatory dedica- tion or fees -in -lieu of dedication if the following standards are adhered to: 1. The park required must beincludedin our compre- hensive or general plan. 2. The subdivision exaction must be considered reasonable, with regard to the subdivision in question. 3. The requirements must be attributable to the specific needs of the subdivision in question. 4. The advantage gained from the used to the direct benefit of the people requirement must be in that subdivision. Test of reasonableness is always appli- cable to any attempt to exercise the police power. 6. Municipal Corporations (=43 The municipality by approval of a pro- posed subdivision plat enables subdivider to profit financially by selling subdivision lots as home building sites and thus realizing a greater price than could have been obtained if he had sold his property as unplatted lands; in return for this benefit the mu- nicipality may require him to dedicate part of his platted land to meet a demand to which municipality would not have been put but for influx of people into community to occupy subdivision lots. 7. Municipal Corporations (=43 Ordinance which requires dedication of land when practicable for school, park and recreational sites as a condition for ap- proval of subdivision plats is constitutional as a proper exercise of police power. W.S.A. 236.45. The equalization ice exacted pursuant to ordinance requiring subdivider to pay a total of $200 per lot in lieu of dedicating land of that value for school, park or rec- reational needs where village planning com- mission finds dedication of land for such purposes is not feasible is not a "property tax" since it is imposed on the transaction of obtaining approval of the subdivision plats; if it is a tax it partakes of the na- ture of an "excise tax" and docs not violate the uniformity clause of the Constitution. W.S.A.Const. art. S, § 1; W.S.A. 236.43. See publication Words and Phrases for other judicial constructions and definitions. Action by plaintiffs Afartin A. Jordan and James F. A1cA1ickcn and their wives against defendant village to recover $5,000 paid by plaintiffs as an equalization fee in lieu of dedicating land as required by de- fendant's ordinance governing the subdivi- sion of lands within the village. In October, 19.59, Jordan and McMicken B. Municipal Corporations (:-43 (hereinafter "plaintiffs") conrnenced nego- Ordinance requiring subdivider to pay tiations for the purchase of a 7.83 acre tract total of $200 per lot in lieu of dedicating of land in defendant village for the purpose land of that value for school, park or of subdividing it into lots and selling the recreational needs where village planning lots. \While negotiating, pLtintiiis became commission finds dedication of land for aware that defendant had enacted an ordi- such purposes is not feasible is reasonable nance in \•larch, 1959, which required sub - exercise of police power and is authorized dividers to either dedicate a portion of their by statute relating to local subdivision regu- land or pay a ice in lieu thereof. Pertinent lation. W.S.A. 236.45, sections of the ordinance are: 9. Municipal Corporations 0956(3) While under the home rule amendment of the Constitution and the implementing statutes villages and cities have wide powers to tax for the general welfare, they can only resort to the types of taxes that the Legislature has authorized them to use. W.S.A.Const. art. 11, § 3; W.S.A. 61.34, 62.04. "In order that adequate open ,paces and sites for public uses nla}' he prop- erly located and preserved as the com- munity develops; and in order that the cost of providing the public school, park, and recreation sites and fatuities necessary to serve the addition; 1. farn- ilies brought into the community by subdivision development rr:ay be most equitably apportioned on the basis of 444 W is. 137 NORTE WESTERN REPORTER, 2d SERIES the additional need created by the indi- vidual subdivision development, the fol- lowing provisions are established: 118.01. Reservation of Potential Sites. ,,(1) In the design of the plat, con- sidcration shall be given to the ade- quate provision of and correlation with such public sites or open areas. "(2) Where it is determined by the plan commission that a portion of the plat is required for such public sites or open spaces, the subdivider may be rc- quired to reserve such area for a period not to exceed three years, after which the Village shall either acquire the property or release the reservation. "S.02. Dedication of Sites. "(1) Within the corporate limits of the Village, where feasible and com- patible with the comprehensive plan for development of the community, the subdivider shall provide and dedicate to the public adequate land to provide for the school, park and recreation needs of the subdivision. "(2) The amount of land to be pro- vided shall be determined on the basis of an amount equal in value to $200.00 per residential lot created by the sub- division. Such value shall be deter- mined by the Village assessor on the basis of full and fair market value of the land. If the owner is not satisfied with such appraisal, he may appeal such determination, in which case an appraisal board consisting of one ap- praisor selected by the Village at its own expense, one selected by the prop- erty owner at his own expense and a third selected by the two other ap- praisers at Village expense, shall de- termine the value. "S.03. Proportionate Payment in Lieu of Dedication. "(1) Where such dedication is not feasible or compatible with the com- prehensive plan, the subdivider shall in lieu thereof pay to the Village a fee equivalent to the value of the required dedication. Such fee shall be distr"' uted as follows: "A. S120.00 per residential lot cre- ated by the subdivision to be held in a non -lapsing fund for the benefit of the school district or districts in which the plat lies, on the basis of proper apportionment between districts v:here the plat is in more than one district, and to be made available to the appropriate district or districts upon their request. "B. $80.00 per residential lot cre- ated by the subdivision to be placed in a non -lapsing fund to be used for park and recreation area development. "(2) Such fees shall he used excht- sively for immediate or future site acquisition or capital improvement. "S.03. Determination of Feasibility. "The determination as to the feasi- bility of dedication shall be made by the Village Plan Commission. The subdivider shall however have the op- tion of choosing to make payment in lieu of dedication." With full knowledge of the ordinance, plaintiffs purchased the property for $22,- 000. Plaintiff Jordan did once voice an informal objection to Gottlieb, village com- missioner, stating that he thought the ordi- nance was unconstitutional. Because of the small area and the particular layout of the subdivision planned, it did not occur to plaintiffs to dedicate any land for school or park sites. They proceeded on the assumption that they would nay the $;,000 equalization fee in lieu of land dedication, which fee they.paid by check Septemhcr 12, 1960, and typed "paid under protest" o:t the check. Plaintiffs then proceeded to complete the subdivision at a total cost of $73,S96.98, including, the $;,000 platting fee. All 25 lots were sold between September. 1961, and April, 1963, for a total stun of $100,000. On on do for tax w {1) i legis] al to satiot was tiffs, tiffs ber I De the ex 8.031 not In reyis subd 236. local of r to I of s has orde of s, crew so q V ilh DATE: April 1, 1974 TO: Planning and Zoning Commission FROM: Iowa City City Council RE: Referral of Attorney Hayek report. At their regular meeting on March 12, 1974, the Iowa City City Council directed that a copy of City Attorney John I-IayeJ:'s report on Mandatory Park Land Dedication be sent to your Commission. Abbie Stolfus l City Clerk 1 Li DATE: April 1, 1974 TO: Parks and Recreation Commission FROM: Iowa City City Council RE: Referral of Attorney Hayek report. At their regular meeting on March 12, 1974, the Iowa city City Council directed that a copy of City Attorney Hayek's report on Mandatory Park Land Dedication be sent to your commission. Abbie Stolfus City Clerk I 1_ WILL J. HAYEK JOHN W. HAYEK C. PETER HAYEK HAYEK, HAYEK & HAYEK ATTORNEYS AT LAW 110 EAST WASHINGTON STREET IOWA CITY. IOWA 52240 March 5, 1974 The Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Re: Marijuana Ordinance Mayor and Council Members: AREA CODE 319 337-9606 At your request I have reviewed the legal power of the City to legislate in the area of controlled substances. This letter is to report to you concerning the results of my study. As you know the State of Iowa has a comprehensive statute controlling the use, manufacture and distribution of various controlled substances. That statute is set out in Chapter 204 of the 1973 Code of Iowa and is entitled the Uniform Controlled Substances Act. This statute provides certain penalties for, among other things, the possession of marijuana, which is defined as a controlled substance under the Act. Generally, possession of marijuana is made an indictable misdemeanor in Section 401 of the Act. In my opinion the City of Iowa City is without power to alter the provisions of Chapter 204 and there is no way that the City can "legalize' the possession of marijuana. At present, however, the City would appear to have the power to enact its own ordinance or ordinances in this area, should it choose to do so. Section 366. 1 of the 1973 Code of Iowa as amended gives municipal corporations the power to establish, by ordinance, necessary and proper regulations for the health and welfare of the inhabitants of the community and to make a violation of such ordinances a misdemeanor punishable by a fine not exceeding $100. 00 or by imprisonment not exceeding thirty days. The City Council could, if it chose, enact a marijuana ordinance and apply a misdemeanor penalty to violations of the ordinance. The effect of the adoption of such an ordinance would not be to provide necessarily lower penalties for the possession of marijuana but would give law enforcement officers and private citizens an option as to which law was to be invoked, much as is the case with many traffic offenses. This situation becomes less clear when the new City Code of Iowa becomes effective. Section 12(3) of the City Code of Iowa provides as follows, "A city may not set standards and requirements which are lower or less stringent than those imposed by state law, but may set standards and requirements which are higher or more stringent than those imposed by state law, unless a state law provides otherwise. " This section would appear to throw some doubt upon the present power of the City to legislate in the fashion discussed above. Since the City Code of Iowa is neva, there is no judicial interpretation of this language which could be relied upon for clarification. In conclusion, the City does in the area of controlled substances the health and welfare of the comma to legislate exclusively in this area of Chapter 204 of the Code of Iowa c Council of Iowa City. JWH:vb have the power to legislate concurrently if the Council deems it necessary for nity. The City does not have the power and there is no way that the provisions an be altered by legislation of the City Res submitted, V. -Haye DATE: March 15, 1974 TO: Rodney Miller, Hilltop Mobile Home Park FROM: Iowa City City Council RE: Referral of copy of attorney report on Marijuana Ordinance At their regular meeting on March 12, 1974, the Iowa City City Council received a copy of the City Attorney John Hayek's report on a Marijuana Ordinance. The motion was adopted to refer a copy of the report to you. The report is attached. TO FROM DATE:__ March 15, 1974 Johnson County Regional Planning Commission Iowa City City Council RE: Referral of copy of Attorney report on Marijuana Ordinance At their regular meeting on March 12, 1974, the Iowa City City Council received a copy of City Attorney John Hayek's report on a Marijuana Ordinance. The motion was adopted to refer a copy of the report to the Johnson County Regional Planning Commission. The report is attached. r t --A: PROPOSED n .SOLID WASTE n • INTRODUCTION AND PURPOSE OF PLAN SUMMARY BACKGROUND INFORIMATION A. Description of Present Practicer DATA EVALUATION A. Responsibility B. Type of Containers C. Location of Containers D. Intermediate Processing E. Recycling F. Political Relationship SYSTEM PLAN A. Location of Disposal Sites B. Storage - 'Type of Container C. Collection and Transportation D. Recycling E. Ultimate Land Use F. Financing G. Legal H. Accessibility I. Land Requirements J. Present Dumps K. Administration SI'Z'E INVESTIGATION AND DGS f GN OF '1'111: FACILITY GOVERNING BODIES HAVING AGIZEBIFINTS WITH 101VA CITY AGRL-'EMEXI' FORM Appendix A MONROE J •f RS'ONN BIG G R 0 v GW �SNEP----I�uf M A 0 1 S O N I `w �a rORD PENN I:A N E M P O R i I V' i I /' JIiI I EAST i UI AS I I 1- - - - -------------�- - - E JOHNSON COUNTY REGIONAL PLANNING COMMISSION JOHNSON COUNTY I F F I M 0 N 1 ".I1 0 I I I I I�N SOLE IN NIL IULE IN II IOWA MAP LIdEPf. \ �D'I"AA CLEAR CREEK I�'YLErI nI -- �A H A R D I N COPAL LE iI a�IuE a41T• nl ion 51�`�\lY' (WEST LUCAS WASHINGTON i T SHARON i l I 8E R T. N E M P O R i I V' i I /' JIiI I EAST i UI AS I I 1- - - - -------------�- - - E JOHNSON COUNTY REGIONAL PLANNING COMMISSION JOHNSON COUNTY I F F I M 0 N 1 ".I1 0 I I I I I�N SOLE IN NIL IULE IN II IOWA MAP O n �m a O n �m v O v TI O n 0 Ti v a ['age I. INTRODUCTION AND PURPOSE OF PLAN L II. SUMMARY l !!I. BACKGROUND INFORIMAT IO,N A. Description of Present Practices 1 IV. DATA EVALUATION A. Responsibility 10 B. Type of Containers I(, C. Location of Containers 1 D. Intermediate Processing 1' E. Recycling 18 F. Political Relationship 15 V. SYSTEM PLAIN A. Location of Disposal Sites Ib P. Storage - Type of Container 75 C. Collection and Transportation 1') D. Recycling 1S1 E. Ultimate Land Use 1y F. Financing In G. Legal H. Accessibility (( I. Land Requirements ?(1 J. Present Dumps 2I1 K. Administration ?O V I . SITE INVESTIGATION AND DESIGN OF THE FACILITY :.' I VI L. GOVERN ING) BOD I FS I IAV ING AGRE1:11,II:NTS W I I I I I Oh"A C I'l Y 2 1 AGREEMENT FORM Appendix A 0 P0R LID lvASTF DIS I Introdu ,TpN�,SON Cp p0SAL pLA,�r John -reporThist and Purpose UHTY IOIVq pcson t ou e o f c ndce 1,- h tY,t Io es a So the PZan II chapter. w1 h tChapter 4p6 h7 1rep aOf z t e 'tjanliras a This ummary guldelin s g �� °T a Prepared in for Whic repor rated by and In coj- di ani aru, til ies is fort the aid spasa1 Iandf the reh a so tnecticessite• SIT of thntly de waste t, Sol-' IvaS collee systeCZtin y fe-1OPedmanageme lees nd count note bel genera g, trans ribed h Ci y ars te_aut tem and a desc7 -Y tberOugh ut2l�2e I. John ting rein use he Prlm•1 ze<1 moni t pprOPr d he he ad d and son C and d - s s tz MC -1 2, PIa Orin Late rein. miniand Ths ext °unt Ispos- nd'rd ti TIT avail blc be uPd t to Uch d lla °n Co n Po odes arid egu ] 7 Parts of �BackgrOund Inf°r as tenc ch o1 ogic� ca �t.1 jseae;p con e js 1 er b I (of DescrZPtion matjon 1 ad 00 bend uthis 1 , S of Pre cOlne On Area sent Practice in ethe°Pulation s fo�10tvingO m Johnson Count _ Urbanl ed y is distributed a Areas Un i t Z96p Iowa City 1970 Coral,,]Ie 46 33,443 Increase Unz er ,8 2 3S7 S0 Nights}' 841 6,130 40.1 1, X60.1 265 S0.4 �l_ .;, O � n m � v � � y O � � r n0 � O m � v z n A SOLID WASTE DISPOSAL PLAN FOR JOHNSON COUNTY, IOWA I. Introduction and Purpose of the Plan This report outlines a Solid Waste Management Plan for Johnson County, Iowa. The report was prepared in com- pliance with Chapter 406.7 of the Iowa Code and in accordance with the guidelines generated by the said Chapter. 1I. Summary This report sets forth a solid waste management system which utilizes the recently developed and state -authorized sanitary landfill of the City of Iowa City as the primary disposal site. The system described herein uses standard practices for collecting, transporting, and disposing of the solid wastes generated in Johnson County. Such prac- tices are now being utilized and extended to all parts of the county through the administrative and regulative de- vices described herein. The proposed system is feasible and appropriate for Johnson County; however, continual. monitoring and surveillance will be carried out and this plan will be updated as technological advances become available. III. Background Information A. Description of present practices 1. 1 Study Area The population of Johnson County is distributed in the following manner: Unit Iowa City Coralville University Heights Urbanized Areas 1960 33,443 2,357 841 -1- 1970 46,850 6,130 1,265 s Increase 40.1 160.1 50.4 .. TABLE OF CO\11_�lS Page I. INTRODUCTION AND PURPOSE'• OF PLAN l II. SUMMARY 1 III. BACKGROUND INFORMATION A. Description of Present Practices I I1". DATA EVALUATION A. Responsibility 10 B. Type of Containers Ih C. Location of Containers 1" D. Intermediate Processing 1? E. Recycling 13 F. Political Relationship 18 V. SYSTEM PLAN A. Location of Disposal Sites 18 B. Storage - Type of Container 18 C. Collection and Transportation 1? D. Recycling 1(j E. Ultimate Land Use 1ST F. Financing 19 G. Legal _ _ __ 2(1 H. Accessibility 20 I. Land Requirements 20 J. Present Dumps Z(1 K. Administration 20 VI. SITE INVESTIGATION AND DESIGN (ll' 'fil): FACILITY 1 VI 1 . GOVFRN ING BODIES HAVING AGRIiEM1i;`ITS WITH IMM CITY Z I AGREEMENT FORM Appendix A MONROE i JE,y -E RSON - �- s. E. BIG GROvC M A G I S O N 0 a c 0 R 0 I I �jp•°pwp CLEAR CREEK I I w iN A R 0 1 N U N I U N vlw J P E N N N E w P O R t u R A A v pwtx '� l 'T. ••t lfYli L1" �. •r. I _ ! WEST LUCA$ WASHINGTON S H A R O N l I 0 E R I j { JOHNSON COUNTY I`j REGIONAL PLANNING COMMISSION ' JOHNSON COUNTY , i I LAST I I LUTA$ N -ILI 10 WA r t � 2 IT'..v Non -urbanized Areas Unit 1960 1970 o Increase Hills 310 507 64 Lone Tree 717 834 16 North Liberty 334 19055 216 Oxford 633 666 5 Solon 604 837 39 Swisher 271 417 54 Shueyville * 115 Tiffin 311 299 _4 Rural areas 13,842 13,267 -4.2 Cexcluding the incorporated areas) *Information not available because up to 1967, it was not an incorporated town. 2. Storage a. Urban Care Municipalities 1) Storage for single family residential areas and small apartments is in 20 to 30 gallon metal or plastic containers with a tightly closed lid. 2) The larger apartments, commercial and industrial users and the University of Iowa use closed containers ranging in size from 1 -to 20 -yard capacity. The storage practices presently used are satisfactory :from a sanitation standpoint. 3) The City of Iowa City has an ordinance which states the requirements for the storage of refuse. The ordinance is enforced by the Johnson County Health Department which acts as a health agency for all. of Johnson County. b. Rural Communities Only four communities of the area have exercised their statutory authority to regulate storage and collection practices. C. Unincorporated Areas 1) Johnson County has no statutory powers or responsibilities for the storage and collection of solid wastes under exist- ing laws. 2) The Johnson County Board of Health has recently initiated a pilot project in solid waste storage and collection for rural areas. Thus far, ❑ compactor has been placed at the county road station near Solon, making it possible for resi- dents of unincorporated areas of the County to store waste for collection. If the pilot project proves feasible, this con- cept may be extended to other parts of' the county. 3. Collection City of Iowa City and Town of University Heights a. Public Collection 1) The City of Iowa City refuse collection crews collect from all single family residential areas in the City of Iowa City and the Town of University Heights on a once a week basis as well as from apartment houses that require only once a week pickup. 2) The Refuse Division of the Iowa City Public Works Department has the City divided into 20 collection routes. Four routes are collected each day of the week with each day's route being located in the same general area of the City. 3) The present crew size is three men with one man driving and two men picking up refuse. 4) The present equipment includes five 20 yard rear -loading refuse packer trucks with four trucks being used daily and one truck serving as a standby vehicle. S 5) The University of Iowa provides its own collection service and uses 8 -yard containers with a 25 -yard front -loading refuse packer. b. Private Collection 1) Apartment houses in large complexes that require more than once a week pickup are not included in the City's collection ser- vice. 2) Commercial and industrial refuse is also excluded from the City services. c. *Collection Agencies Agencies Number Percent Private Agencies 15 S2.S Public Agencies S 47.5 Not Collected 0 0.0 *See Appendix A for a list of public and pri- vate haulers who have permits to dump refuse collected in Iowa City and University Heights in the Iowa City landfill. It should be noted that every hauler must be designated by a governmental agency and issued a permit to dump in the Iowa City landfill. One private collection agency may be designated by several governmental agencies in which case that hauler is issued a permit for each governmental con- tract. See Appendix B for a listing of those permits issued to t e University of Iowa solid waste operation and two private haulers to dump refuse collected from the University in the Iowa City landfill. The numbers indicate the number of vehicles of various types engaged in refuse collection at the University of Iowa, though the regularity of their use as such varies greatly. Coralville a. The city of Coralville operates a public collection service for single family resi- dences. b. Commercial, industrial, and large apartment complexes requiring more than once -a -week pickup depend upon private collection agencies for refuse disposal. 6 C. Coralville enforces a compulsory pick-up ordinance. d. The City of Coralville presently utilizes a local landfill near 12th avenue and Interstate 80. This landfill has a remaining capacity for only about one year at the present rate of disposal. e. The City of Coralville is currently exploring the feasibility of incineration as'a means of solid waste disposal. if found feasible, such a program may be implemented. If not, other alternatives will be investigated, including a contract with other agencies for landfill use or a new municipal landfill. Solon a. Solon does not operate a puhlic collection service. b. Solon has contracted t✓ith Iowa City to allow a private collection agency to dump refuse collected in Solon in the Io%%�a City landfill. (See Appendix C for the terms of this contract. See Appendix D for a list of the private collection agencies having contracts t�ith the town of Solon.) C. Solon has enacted a compulsory pick-up ordinance Tiffin a. Tiffin does not operate a puhlic collection service. b. Tiffin has contracted with lova City to allow private collection agencies to dump refuse collected in Tiffin in the Lowa City landfill. (See Appendix E for the terms of this contract. See Appendix D for a list of the private haulers having contracts with 'Tiffin.) C. Tiffin does not have a compulsory pick-up ordinance, though such an ordinance is presently being considered. North Liberty a. North Liberty does not operate a Public collection service. b. North Liberty has contracted with Iowa City to allow private collection agencies to dump refuse collected in North Liberty -in the Iota City landfill. (See Appendix P for terms of this contract. See Appendix D for a list Of private haulers having contracts with North Liberty.) C. North Liberty has enacted a compulsory pick- up ordinance. Solid waste collection is financed through general revenue funds. Hills a. Hills does not _operate a public collection service. b. Hills has contracted with Iowa City to allow private collection agencies to dump refuse collected in Hills in the Iowa City landfill. (Since the agreement was made recently, the terms of the contract are still being processed. No private collection agency has been designated at this time.) C. Refuse pickup is not mandatory in Hills. However, garbage pickup is financed through general revenue funds. Lone Tree a. Lone Tree does not operate a public collection service. b. Lone Tree has contracted with Iowa City to allow private collection agencies to dump refuse collected in Lone 'free in the Iowa City landfill. (Since this agreement was only recently made, the terms of the contract are still being processed. Lone 'free has not designated private haulers at this time.) C. Lone Tree has not enacted a compulsory pick- up ordinance. Oxford a. Oxford does not operate a public collection service. b. Oxford has an oral agreement with Iowa County to allow private haulers to dump refuse collected in Oxford in the Iowa County landfill in exchange for fire protection. C. Oxford has not enacted a compulsory pick-up ordinance. It is estimated that 155 Oxford residents made arrangements with private haulers while approximately 75 residences haul their own refuse. Swisher - a. Swisher does not operate a public collection agency. b. Swisher has made no arrangements w i t}1 the Iowa City landfill nor any other governmental agency for the disposal of refuse collected in Swisher. C. Two private haulers have contracted with indi- vidual residents in Swisher to collect refuse. Apparently these haulers dump refuse collected in Swisher outside Johnson Count, since 1o%�a ('itv requires commercial haulers to he designated by governmental agencies. d. Swisher has considered contracting with Iowa City, but it is not a high priority item. Shueyville a. Shueyville has no contract with the Ioi,,a Citv landfill and no public collection service. b. Shueyville is serviced by one private collection agency. Arrangements are made with individual residents of Shueyville for pickup service. Again, the refuse must be clumped outside Johnson County since Iowa City has issued no hermit Cor use of the Iowa City landfill. C. Shueyville does not plan to contract with Iowa City for use of the landfill. Incineration I)v individual. residents is a common method of rcfu�e disposal. Unincorporated Areas of Johnson Count a. At the present time, there are two open dumps in the County --one located near Lone Tree and one near Williamstown. These dumps are privately owned and are technically closed by the Johnson County Board of Health. Johnson County, at the present time, has no state approved sanitary landfill sites. b. Johnson County operates a public collection service for subdivided areas with relatively dense populations. The County has contracted with Iowa City to allow designated private haulers to dump refuse c011OCted ill unincc,rporated areas in the Iowa City landfill. (tilt Appendix (; for terms of this agreement. See Appendix H for a list of private haulers who have con- tracted with Johnson County.) C. Johnson County has no statutory powers or responsibilities for collection of solid waste under existing laws d. The City of Iowa City, with its new state - approved landfill, is currently acting as a repository for almost all of the solid waste produced in the County. e. Overall responsibility for garbage collection in unincorporated areas rests with residents, many of whom use the Iowa City landfill (no dumping charge for casual loads) or private dumps. It is estimated that five percent (5$) of the refuse generated in unincorporated areas is picked up by private haulers having contracts with the County or by public collection trucks. The remaining ninety-five percent (950) is either uncollected or hauled by residents. 4. Transportation a. Since almost all solid waste collected in Johnson County is deposited at the Iowa City landfill, the type of vehicles used and the regulations imposed regarding the use of the Iowa City landfill will adequately describe the situation for Johnson County. Due to the limited distances involved, and since this landfill is centrally located in the County, no transfer operations are economically feasible or necessary. b. Solid waste is transported to the Iowa City landfill in the vehicle in which it is collected. C. Cars account for 20 of the waste brought into the Sanitary landfill, closed trucks 74% and open trucks 24%. Open trucks primarily trans- port trees, rubble, dirt , etc. into the landfill. d. The City of Iowa City has an ordinance that requires private haulers to obtain a permit from the City Clerk and have a completely enclosed truck. The City also has an ordinance on littering in the public right-of-way For anything that might fall out of the trucks enroute to the landf:i 11. • 10 e. The ordinances are enforced by the Iowa City Police Department. f. There are no load limits on any o£ the roads other than the standard hi.ghivay weight limits for state highways. g. There is no maximum size vehicle proposed in this plan. h. The City of Coralville kris similar regulations and procedures pertaining to its collection and landfill system. S. Solid Waste Quantities Generated a. The categories of solid waste being generated are classified as household ganc�Lge, tree limbs, building demolition, dirt, rubble and paper. The amount of each item being generated is shown in Figure 1. Junk cars, toxic waste and other types of waste are in very minute amounts being disposed of in the Towa City landfill. b. The present quantity of commercial and household waste being generated is: 1) An area study of the Iowa City landfill site indicates that in 1971 approximately S.S to 6.0 acres were landfilled to a depth of 1S to 20 feet. 2) Assuming that densities :in the landfill are approximately 900 pounds per cubic yard it appears that during 1971 about 715,000 tons of refuse were landfilled. C. Projected Solid Waste Quantities 1) Current refuse being hauled to the landfill is an increase in refuse of 800 over 1970 compared with a 7% increase between 1969 and 1970. 2) To estimate future refuse generation rates two factors were considered: a) Population growth b) Refuse generation per capita As can be seen from Figure II, the predicted population growth over the next 20 years is significantly less than the previous 10 years. Predicted growth rate is approximately la as compared to the previous 4% per year rate. The difference between refuse generation and population growth can be assumed to be increased refuse generation per capita. Therefore, the existing 8% increase in refuse can be assumed to be the sum of 4% population growth and 4% increase in the amount of refuse generated by each individual. In calculating the estimates of solid waste volumes over the next 20 years, it is assumed that the popu- lation will increase at the rate of 1% and the generation per capita rate will increase at 40. This is a refuse generation rate increase of 5% per year. Calculated amounts of refuse and required area are shown in Figure III. (See Figure IV for amounts of refuse by type and source.) a O a H C m E p CL N In V O N r ~ N N N N W Li In V O O- O N O V' O l.n O In O In O �_n Ln p r. En 13 PROPOSED POPULATION GRODJTH v u o J c) o rn '`� v Lr) Ol O , w YEAR FIGURE II YEAR 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 TOTAL IO{VA CITY AREA REFUSE. GENERATION PROJECTIONS TONS 75,000 78,750 82,687 86,821 91,162 95,720 100,506 105,531 110,807 116,347 122,164 128,272 134,686 141,420 148,491 155,915 163,710 171,895 180,490 189,514 2,479,888 FIGURE III AC/ F -F (based on 1000 Ib/yd') 93 98 102 108 113 119 125 131 137 144 151 159 167 17S 184 193 203 213 224 235 3,074 14 FIGURE IV,' The following figures are based on i survey conducted by the City of Iowa City during one week in April, 1971. 'Fable 1 Category Garbage Paper 'Free Limbs Building Demolition Dirt Rubble Total Quantity in tons 649.4 60.9 403.3 358.9 591.8 46.8 Amount of Refuse by Type of Refuse 'Fable 2 Hauler City of Iowa City University of Iowa Other Government Commercial Hauler General Contractor Private Commercial Private Industrial Private Citizen Total Quantity in tons 365.3 533.6 10.6 351.0 673.2 61.1 71.7 71.7 2,138.2 Amount of. Refuse by Hauler Category • 16 d. The City of Iowa City is presently monitoring the amounts and type of refuse being dumped into the Iowa City landfill. These figures will be available within two or three weeks from the Iowa City Public 4sorks Department. e. It is estimated that 150 to 200 tons of refuse a week are dumped in the Coralville landfill. 1) Forty tons per week are collected by the public collection agency. 2) The remaining quantity is collected by private haulers (commercial, industrial or apartment houses). 6. Additional Information Required a. Soils andgeology (See Appendix I for Soil and Geology Report prepared for the Iowa City landfill) b. There are no zoning regulations 1%,hich make it difficult to obtain a permit. C. Public Relations 1) The local newspaper publishes news articles on any change in standard refuse collection routes or days as well as articles on inter- governmental cooperation in regard to the use and operation of the Sanitary Landfill. IV. Data Evaluation A. Responsibility 1. The responsibility for solid waste collection and disposal in Johnson County is divided among several governmental jurisdictions. The use of the Iowa city landfill by most towns and unincorporated areas pro-' vides centralized control over disposal operations by private and public collection agenc_i.es. Due to the requirement for governmentally sanctioned haulers and contractual agreements, adequate control is assured by the publically responsible agencies. B. Type of Container 1. The City of Iowa City has made a number of recom- mendations in regard to types and location of containers. a. There are a number of containers and systems that can be used :for residential refuse collection. 17 The type of container the City of Iowa City is presently using is the 20 to 30 gallon standard garbage can. These cans can be plastic or metal. The larger containers (8 yards or more) are located conveniently, generally in an alley, and used by several households as common point collection systems. This type of con- tainer is picked up mechanically by a packer truck. This method is not considered because of the many problems in locating containers as many of the areas of the city do not have alleys. Another type of container is the single -use container (plastic bags) and is used in the same general manner as a standard garbage can. b. A study was conducted in January of 1971 by the Department of Public Works staff on the single - use container versus the standard garbage can. The results showed that the single -use container could be collected in approximately one-half: the time as the standard container. Both con- tainers were located at the curbside or alley line. This can result in changing the crew -size totwo men and not having to add additional crews as the city expands. The cost analysis of the standard container versus the single -use container showed that the single -use container would cost the average household $1..67 more per year. C. Location of Containers 1. The location of containers is at the curbside or alley line for collection. No other location will be considered as other locations are the main scurce of complaints from the citizenry for misses of pickup, taking or stealing items from the backyard or taking cans that were used for storage. The cost of collection with carry -out or backyard collection is very high and not practical in our situation. The present cost for collection is approximately $14.50 to $15.50 per ton or residential refuse and $16.00 to $17.00 per residential household with some backyard and some curbside and alley collection. D. Intermediate Processing 1. There is no consideration of any intermediate processing in this plan. A brief look at the use of a transfer station shows that the haul distance would have to be 25 miles to become economical. The maximum haul distance in Iowa City is 8 miles. E. Recycling 1. The City of Iowa City is considering a proposal to institute a pilot newspaper recycling program. One of the City garbage trucks would be furnished with a suspended collection rack. Newspaper bundles could then be picked up and transported to a recycling plant after passing through a con- veniently -located transfer station. 2. A car crusher operating in the Johnson County area encourages the disposal and recycling of abandoned or junked vehicles. F. Political Relationship 1. Many of the smaller communities in Johnson Countv have entered into contracts with the City of Iola City to dispose of their solid waste at the City -of Iowa City's landfill. V. System Plan A. Location of Disposal Sites 1. As described previously, the City of Iowa City operates a state -approved landfill operation and contracts with other governments of the County for use of that landfill. The City of Coralville operates a separate landfill which has a limited remaining capacity. The City of Coralvi.11e is currently exploring alternative means to accomodate solid wastes generated in that municipality. Since the explorations are continuing, this plan makes no definitive recommendations for the Coralville portion of the County's solid waste management system. 2. The City of Iowa City is the main source of solid waste generation and the present Sanitary Landfill is located five miles west of the center of the City. This is the best site in the area considering all of the factors in selecting the landfill site and having it approved by the State Department of Environmental Quality. B. Storage - Type of Container 1. It is anticipated that in the future n11 of the households in the County will use single -use refuse containers (plastic hag or paper hags). 2. It i's�anticipated that county -wide regulations will be developed to require that no garbage or trash container shall be stored upon or adjacent to any street, sidewalk, parkway, front yard or side yard or other place within view of persons using city streets and sidewalks. The containers shall be stored in such a manner that varmints, cats and dogs will not disturb the containers. C. Collection and Transportation I. For wastes deposited at the currently state -certified landfill, the collection shall be from the curbside or alley line. The collection will be made by crews using rear -loading refuse packer trucks. The packer trucks will then transport the solid waste to the Sanitary Landfill. 2. Within the urbanized portion of the County, tree limbs and other bulky items will be picked up by a flat bed truck and a chipper to reduce the limbs in size and volume. 3. The collection for all single family residential areas and apartment houses requiring only once a week pickup will be done by the City of Iowa City for both the City of Iowa City and the Town of University Heights. The University of Iowa will provide its own collection. The City of Coralville will follow similar procedures. D. Recycling 1. At the present time there is no local market for large volumes of general grade paper. A paper recycling project is currently being considered in the City of Iowa City. (See Section IV.) 2. At the present time there is no market for glass or any type of cans in this area. E. Ultimate Land Use 1. Refer to the City of Iowa City's application for Sanitary Landfill permit entitled "A Plan for Opera- tion of a Sanitary Lan dfillby the City of Iowa City, Iowa " Permit No. S2 -SDP -1-72P. (Appendix 1) F. Financing I. The City of Iowa City financcd the present.`;anitr,ry Landfill (for which a permit was recently obtained) by a General Obligation bond issue. 2. Operating costs will b -c --paid for by the governmental bodies that have entered into contracts with the 20 City of Iowa City in proportion to the number of tons that have been disposed of from that govern- ment's area. The cost per ton will be approximately $1.50 to $2.00. G. Legal 1. All private haulers shall be licensed by the govern- ment that the haulers are hauling for or from. 2. Collection will not be made mandatory but will be made available through either the municipal collection or private collection. Disposal of the solid waste will only be allowed at an approved landfill site. s. The storage of solid waste will be controlled by ordinance for the City of Iowa City and the Town of University Heights. 4. The enforcement of these ordinances will be the responsibility of the Johnson county Health nepat-t- ment. H. Accessibility 1. Access to the Iowa City Sanitary Landfill i_s t,v an asphaltic concrete County road with the last half mile a gravel road. I. Land Requirements 1. The land requirements are shown in Figure III for the next 20 years. J. Present Dumps 1. The Johnson County Health Department will be responsible for the proper closing of all dumps in the area. K. Administration 1. The City of Iowa City will manage the Sanitary Landfill for which Permit No. 52 -SDP -1-72P has been issued. All other governmental agencies desiring to use the landfill will have to enter into a contract with the City Council for such use. 2. Any future landfill operations would be subject to a state permit which would specify minimum admini- strative arrangements. VI. Site Investigation and Design of the Facilitv A. Refer to the City of Iowa City's application for a Sanitary Landfill permit entitled "A Plan for the Operation of a Sanitary Landfill by the City of Iowa City, Iowa" Permit No. S2 -SDP -1-72P. (Appendix I) VII. Governing Bodies Having Agreements For purposes of thi the text have been following page was ing with Iowa City with the exception is part of a larger 21 s document, all appendices listed in omitted. The agreement on the used for all municipalities contract - for the use of the Iowa City Landfill of University heights, whose contract agreement. The following governing bodies located in Johnson County have agreements with Iowa City for use of the landfill. Hills Lone Tree North Liberty Solon Tiffin Unincorporated Areas of Johnson County The following municipalities do not as yet have such agreements. Oxford Shueyville Swisher AGIZEEMENT TMS AGREEMENT, entered into,by -and between the City of Iowa City, Iowa, a Municipal Corporation, hereinafter called Iowa CitN- and hereinafter called WHEREAS, Iowa City is the owner and operator of a sanitary land- fill designed for solid waste disposal; said landfill bring located in Johnson County, Iowa; and WHEREAS, said sanitary landfill has received the approval for operation by the Commissioner of Public Health of the State of Iowa, as prescribed by Chapter 406 of the Code of Iowa; and WHEREAS, Chapter 406 of the Code of Iowa further requires that every city, town and county of the State of Iowa shall. provide for a sanitary disposal project for its residents, approved by the Com- missioner of Public Health and further provides that said govern- mental entities may contract -with another governmental entity for the use of its approved project; and WHEREAS, pursuant to Chapter 28E of the Code of Iowa and Section 406.3 of the Code of Iowa, Iowa City and wish to enter into an agreement that may use the facilities of the Iowa City Sanitary Land:'i?';r -.�r:i t Disposal Project. NOW THEREFOR BE IT -AGREED BY AND BETWEEN Iowa City ani as follows: 1. TERP1. That the term of this agreement shall be for a period of three years, commencing with the date of this agreement, unless terminated as provided herein. i Z. 'I'fiRMINATiON 13Y IOWA CITY. That this agreement may be terminated by fowa City by giving notice to in writing as prescr.ibcd in this agreement one (I) year in advance of the date of the proposed termination. 7. TERMINATION BY That this agree- ment may be terminated by by giving notice to Iowa City in writing as prescribed in this agreement ninty (90) days in advance of the date of the proposed termination. 4. EXTENSION. That this agreement may be extended by the parties upon the execution of an extension agreement. Said exten- sion agreement shall specify the period of the extension and the service rates or charges to be paid by _ to Iowa City and may include such other terms and conditions as the parties may agree to. S. JURISDICTION AND OPERATION The sanitary landfill or sani- tary disposal project which is the subject matter of this contract shall be operated by Iowa City and shall be under its exclusive jurisdiction and control, subject to State and Federal regulations. Iowa City agrees to operate said sanitary landfill or sanitary dis- posal -project as required by law and State and Federal regulation, but in the event that a determination is made pursuant to law or State or Federal regulation that said project is not being operatec'. as required and a valid and legal order is entered, cancelling or rescinding the approval of the operation of said project, this agree- ment shall be automatically terminated and it is understood and agreed that Iowa City shall not be responsible .for any damages in- curred by as a result of Iowa City being unable to operate said project because of the cancellation or rescissionof approval for the operation of the sanitary landf:i.11 or sanitary disposal project by Iowa City. 6. OPERA'T'ION COSTS AND FINANCING. Iowa City shall be respon- sible for all costs incurred in the operation of said sanitary land- fill or sanitary disposal project and the only costs to be incurred by are the rates or service charges enumerated in paragraph of this agreement. Iowa City shall be responsible for all financing involved in said operation and the entering into this agreement in no way obligates as to financing and in no way is acting as guarantor nor pledges any of its credit or tax revenues or other revenues except to pay the rate or service charge enumerated herein. 7. RATES AND CHARGES. shall pay to Iowa City a price per ton for solid waste delivered to the Iowa City Sanitary Landfill or Sanitary Disposal Proiect by commer- cial haulers designated by the following formula: as computed by All charges shall be based upon an annual cost figure to be calculated by Iowa City based upon the cost per ton of all solid waste delivered to the sanitary landfill during the year. The total annual cost shall be divided by the number of tons of solid waste delivered to the sanitary landfill. Total annual cost shall include the following: a) All personnel cost of individuals working at the site; b) All equipment operating costs at the site including fuel, maintenance, spare parts and insurance and all other equipment costs and repairs; iii Agreement' • • ,c) All operational costs of the site, including clean up and maintenance provided by any other division of the Public Works Department or other department of the City; d) Capitalized cost of equipment based upon a five year life and the capitalized costs of any capital improve- ments, including fences, buildings or other structures, including scales, etc.; e) Capital costs for initial excavation and future excavation at actual cost; f) Debt service costs on the retirement of General Obligation Bonds sold to finance the project; and g) Administrative costs estimated for the City Manager, Finance Department, Public Works Department, Legal Department, and Planning Department. After establishment of the cost per ton on an annual basis, there shall be added a ten per cent (100) surcharge. Said sur- charge to compensate Iowa City for future landfill. site expenses. The above rate shall be charged for all commercial, construc- tion or industrial haulers from as designated in writing. No commercial, construction or industrial hauler not designated in writing by a governmental agency shall be allowed to deposit solid waste at the sanitary landfill. Casual loads delivered by residents on a non-commercial basis may be delivered to the landfill without load charge, except that Iowa City reserves the option to institute such a charge if the facts at a later date warrant such a charge. All charges shall be payable on -a quarterly basis as billed, pursuant to Section 9 of this agreement. On the basis of an esti- mated cost. At the end of the year Iowa City shall calculate the actual cost and correction shall be made as to either a credit or additional billing. Estimated cost shall be for the first year period $2.35. Estimated cost after one year of operation shall be the actual cost for _the _preceeding year. iv by this agreement to be made to shall be made by mailing, by ordinary mail, a letter to All notices shall be effective upon receipt by the addressee. Nothing contained in this paragraph shall prevent additional or other notice being given and giving notice which Would exceed the requirements of this paragraph but the requirements of this para- graph shall be the minimum requirements for notice under this agree- ment. 9. BILLINGS. Iowa City shall bill on a quarterly basis as established by the Finance Department of Iowa City. Billing periods may be adjusted to a monthly basis or for other periods, but shall not be for a period less than one month. All billings shall be due and payable within thirty (30) days of the receipt of said bill. Failure to pay billings may be grounds for cancelling this agreement by Iowa City. It is under- stood and agreed that these billings are charged to and not its designated haulers and is responsible for the payment thereof and failure of its haulers to pay relieve 10. COMPLIANCE WITH LAW. does not of its obligation hereunder. be responsible to see that all designated haulers from shall shall comply with all applicable ordinances, v • Agreement • 8. NOT ICiiS. All -notices required by this agreement to be made t� 10%.!a City shall be made by mailing by ordinary mail a latter to the Director of Public Works of Iowa City, at said Director's office in the Civic Center, Iowa City, Iowa 52240. All notices required by this agreement to be made to shall be made by mailing, by ordinary mail, a letter to All notices shall be effective upon receipt by the addressee. Nothing contained in this paragraph shall prevent additional or other notice being given and giving notice which Would exceed the requirements of this paragraph but the requirements of this para- graph shall be the minimum requirements for notice under this agree- ment. 9. BILLINGS. Iowa City shall bill on a quarterly basis as established by the Finance Department of Iowa City. Billing periods may be adjusted to a monthly basis or for other periods, but shall not be for a period less than one month. All billings shall be due and payable within thirty (30) days of the receipt of said bill. Failure to pay billings may be grounds for cancelling this agreement by Iowa City. It is under- stood and agreed that these billings are charged to and not its designated haulers and is responsible for the payment thereof and failure of its haulers to pay relieve 10. COMPLIANCE WITH LAW. does not of its obligation hereunder. be responsible to see that all designated haulers from shall shall comply with all applicable ordinances, v grounds for terminating this agreement or for refusing to a]low a designated hauler to deliver to the Iowa City sanitary landfill or sanitary disposal project. ]1. NOTICE TO COMMISSIONER. It is understood and agreed that this agreement is intended to be compliance by with the requirements placed upon by Chapter 406 of the Code of Iowa, and the regulations of the Com- missioner of Public Health and that a copy of this agreement will, be filed with the Commissioner of Public Health and it is further agreed that in the event either party terminates this agreement that a copy of the notice of said termination shall be forwarded to the Office of the Commissioner of Puhlic Health. 12. DEFAULT. In the event that either party to this agree- ment breaches any of the terms and conditions hereof, the other party may elect to declare this agreement to be in default and terminate same by giving ten (10) days notice thereof. If the party in default fails to correct its breach within the said ten day period, the contract shall be automatically terminated. If the breach is corrected, the contract shall continue on its regular terms and conditions. vi County, Iowa. Dated this day of 1973 CITY OF IOWA CITY BY: BY: MAYOR ATTEST: City Clerk Clerk STATE OF IOWA ) SS JOHNSON COUNTY ) On this day of , A. D. 1973, before me, the undersigned, a Notary Public in an or said County, in said State, personally appeared and , to me personally nown, who, being y me duly sworn, isay t ey are the Mayor and City Clerk, respectively, of said City of Iowa City, executing the within and foregoing instrument; that said instrument was signed on behalf of the City of Iowa City by authority of its Board of Directors; and that the said Mayor and City Clerk as such officers acknowledged the execution of said instrument to bethevoluntary act and deed of the City of Iowa City, by it and by them voluntarily executed. vii S• _ Johnson county im regional planning commission 221/2 south dubuque street. iowo city. iowo 52240 (319) 351-8556 MEETING NOTICE Solid Waste Committee December 13, 1973- 2:00 p.m. Meeting Room Iowa City Recreation Center AGENDA mcnoei wuucnee r00011 N0011bef�j 1. Discussion of Solid Waste Plan drafted by staff, dated December 3„ 1973. 2. Discussion of draft Fiscal 1975 Work Program of the Regional Planning Commission (particularly as related to Solid Waste planning). 3. Other Business 4. Adjournment December 5, 1973 .slb Lf WILL J. HAYEK HAYEK, HAYEK & HAYEK JOHN W. HAYEK ATTORNEYS AT LAW AREA CODE 319 C. PETER HAYEK 110 EAST WASHINGTON STREET 337-9606 IOWA CITY, IOWA 52240 March 8, 1974 The Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Re: Rezoning Moratorium Question Mayor and Council Members: At your meeting on March 5, 1974, you requested an opinion from my office concerning whether or not the City Council could formally adopt a moratorium on all future rezoning requests along the Iowa River for one year, until a study of the Iowa River corridor has been completed by a consultant, or until the consultant can advise as to the most appropriate use of the land along the Iowa River, whichever comes sooner. As I indicated to you at the meeting on March 5, in my opinion it would not be proper for the Council to formally adopt a rezoning moratorium. Such a formally adopted moratorium would, in my opinion, be subject to Court attack as being arbitrary and unreasonable. Zoning regulations are required by the provisions of Section 414. 3 of the 1973 Code of Iowa to be made with "reasonable consideration, among other things, as to the character of the area of the district and the peculiar suitability of such area for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout such city or town. " It would, on the other hand, seem to me appropriate for the Council members to express their opinions individually as to how they would view future zoning requests along the river corridor. It seems to me that individual Council members could make it clear, if they so desired, that they would not be favorably disposed to future zoning requests along the river until such time as the necessary studies have been completed. The expressions of such opinions by sufficient number of Council persons and members of the Planning and Zoning Commission would effectively, it seems to me, discourage future zoning requests. Respectfully ubmitt d, oh W. Hayek JWH:vb __ WILL J. HAYEK HAYEK, HAYEK - & HAYEK JOHN W. HAYEK 'ATTORNEYS AT LAW 1EAST WASHINGTON STREET AREA CODE 319 C. PETER HAYEK 10 337-9606 IOWA CITY, IOWA 52240 March 6, 1974 The Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Re: Lower West Branch Road Mayor and Council Members: Recently you requested a report on the legal status of Lower West Branch Road. Specifically, you wished to know whether the City had fee title to the right of way or simply an easement for right of way. In cooperation with the Department of Public Works, we have attempted to investigate the early title in creation of Lower West Branch Road. Since this road appears to have been created in approximately the year 1860, the Court House records pertaining to it are not clear. However, as best we can determine an easement for right of way was acquired rather than fee title. It would therefore appear if this street is vacated, title to the real estate will revert to the abutting property owners. JWH:vb Respectfull submitted, Haye4- -- k March 6, 1974 The Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Re: S. E. A. T. S. Program Mayor and Council Members: Recently you referred to me the question of whether or not the above program must be licensed or meet other requirements of the City. Section 389. 39 of the Code of Iowa gives cities and towns the power to regulate and license common carriers such as taxicabs, busses and the like. Chapter 5. 16 of the City Code of Iowa City regulates "... any taxicab as conveyance for hire as a common carrier of passengers from one part of Iowa City, Iowa, to another.... " Although arguably Chapter 5. 16 could be considered to cover the type of vehicles to be operated by the S. E. A. T. S. Program since there is no further definition in the ordinance, it would seem to me that the ordinance in question is aimed at the more traditional type of taxicab. In conclusion, it would appear that there is no local impediment to the operation of the S. E. A. T. S. busses in Iowa City. Of course the program will still have to comply with any applicable State and Federal regulations. JWH:vb Respectfully submitted, 4A Hayek MEMORANDUM DATE: February 15, 1974 TO: Dennis R. Kraft FROM: Lyle G. Seydel RE: Proposed Rules for Section 23 Leased Housing Attached is a copy of the portion of the Federal Register which contains Proposed Rules for Section 23 Housing Assistance Payments; New Construction and Existing Housing without Major Rehabilitation. Copies of this document were provided to the Housing Commission prior to their meeting of February 6, 1974. The article in the press is that reporter's version of the discussion of the document at the Housing Commis- sion meeting. In addition, the Board of Directors, Iowa Chapter of N.A.H.R.O. asked that comments be pro- vided to HUD concerning the proposed rule changes. A copy of the letter is attached. There are many factors being changed that should be considered and discussion of the individual factors is difficult without detailed knowledge of existing rules. In fact, the proposed rules are so significant that the entire program will have to be restructured. The following are items which I believe will render the program ineffective. a. Title of the program. Changed from Section 23 Leased Housing Program to Section 23 Housing Assistance Payment Program. This change indicates that the problem is being attacked from an income point of view and not in the traditional manner of housing. The two are significantly different. If the federal housing dollar is to be utilized in providing clean, decent and safe housing, then h�ousin� is the solution. If the federal money is to be ut�11 ed to up -grade the standard of living of the person, then income is the solution. I believe, here in Iowa City, across the state and nation there is a housing problem. b. The proposed rules drastically change the role of the Local Housing Authority by limiting its responsi- bilities to; 1) certification of eligibility, 2) determin- ation of amounts of assistance payments and rendering that amount to the owner, 3) approval of offers to lease and the lease itself, 4) reexamination of eligibil- ity on an annual basis, 5) inspection of dwelling to insure compliance with existing codes, and 6) authoriza- tion of eviction. C. The proposed rules change the responsibilities of the owner to - complete and total management, maintenance and operation. These include, but may not be limited to, payment of utilities (unless paid directly by family), insurance and taxes; performance of management functions including taking of applications, selections of tenant, verification of eligibility, collection of rent, risk of loss from vacancies and non-payment of rent by tenant and actual evictions with with Authority approval. d. Establishment of Fair Market Rent. This will be determined annually by HUD. Past experience with proto type costs in determining the Annual Contribution Contract indicates HUD's inability to remain current on a local basis. Under the Fair Market Rent concept I can see many more problems. Using Iowa City and Coral - Ville as comparatives, surely, no one can say the Fair Market Rent for a new unit on the western edge of Coralville is the same as for an identical unit located in or near downtown Iowa City. Land costs, taxes, proximity or location of the unit in relation to shopping, school, medical, church, transportation and recreation are such that only a local Authority could reasonably establish this Fair Market Rent. To use an average will not produce the desired results. e. The administrative procedures which an owner must perform are such that in a tight or "low vacancy rate" area the owner just simply will not be interested. For example, the owner must receive application, check eligibility with the Authority, issue an offer to lease, obtain approval of lease from LHA,_sign lease with tenant, sign Housing Assistance Payment contract with LHA, submit monthly requests for payment, provide a certification that exposed surfaces are free of lead based paint - to mention a few. f. Provisions are made for an automatic increase in rent to owner, however, no provisions are made for increasing the Annual Contributions Contract; this may well leave the-LHA in financial difficulities. Further, such a policy will tend to prevent those with the lowest income from obtaining assistance. 1E Page Three g. This comment is general. Under present rules the Authority seeks, negotiates and leases a unit, in turn, assigns or subleases to an eligible applicant. A vast majority of the tenants now being served are not capable of performing these functions. Physical handi- caps, mental handicaps and the mere fact that they are welfare recipients will make it near impossible for them to obtain housing. This I see as perhaps a most important factor in rendering the proposed rules ineffective. In conclusion, I wish to point out that the above comments are my interpretations of the proposed rules and how a program could or would be administered. They are based on a publication which requests public comment and may be changed. It is my opinion that few changes will be made in the final publication. One final note. The program now administered may not be effected immediately. Based on the proposed rules, programs in existence prior to final publication of the rule changes may be required to follow the standards to the extent HUD determines it is practical to do so. I see this as perhaps phase two of the conversion. r - RVICE REOUEST CITY OF IOWA CITY p , L/ y7'� IOWA CITY, IOWA N�'H 215 2 Date E' `K- V),X11 Time O > flow Received: Plmno V L81 �--- -PM °f 6L 4 ❑ In Person El I y _ J, &V / t �__ Oear Resident: Ihnnk yuu for calhn �_ _ _ { Ilm: unllrr Name_ �� L I.' �C•Gf�C-i•t.r,.e �.- - _ t < ---- to our attention. Please call 354-1800 it you (j~ �r Phone-,23,/ 1 7 ♦taus - Address / Y questions. We welcome your inquiries �J/ j / and are always at your service. Request �! (/1Q�-S &.(. s ,� Lcc.t_ Gtr al[t QCT, ��.!c• Ll a . %l_•d-c il_ {� Lt.'(,-- t. <<- �c.;.r. ) t•c..�.: p cjli- 4-co G(�C� p c cii 9 • `i �L e)"l. Referred to Disposition i Citizen Notification Date By of Disposition: None ❑ This Form ❑ Phone ❑ Letter 13 Personal Visit Ej n,re DEPARTMENT BEAD DATE: March 5, 1974 TO: Ray S. Wells FROM: Steve Morris, Acting Transit Superintendent d'�" RE: Mall Route Change Request Thera are many similar areas of the city where bus mileage could be reduced by cutting service, but the crux of this request is a preference for loop versus straight line bus routes. The proposed change would operate the bus at the lightly populated edge of its service area and double travel times for those people living near the affected portion of the route. This route change was authorized on a trial basis by council and operated from December, 1971 thru April, 1972. During the trial period, the Rochester -Mall route carried 16% of all passengers. During the same period the following year, the route carried 20% of all passengers. Although more substantive data is not available, it would appear that more people prefer the present routing. The only impetus for bus service on that section of Kirkwood and Lower Muscatine has come in the past from patrons of a beauty shop in the 1200 block of Kirkwood. Various points relative to this request are discussed in a memo dated January 21 from Dennis Kraft and myself in response to a letter to council from Della Grizel. The present Mall route orovides an effective level of service to the area. The proposed route would quite possibly reduce ridership in the area. I CONGRESSIONAL CITY CONFERENCE March 3-5, 1974 The Federal -Aid Highway Act of 1973 (PL 93-87) The Federal -Aid Highway Act of 1973 provided for a number of changes in the allocation and control of Federal highway and transit resources in the nation's cities, with a new emphasis to be placed on the role of local officials. For the first time since enactment of the Federal - Aid Highway Act, state and local governments have some flexibility in the use of the Urban System portion of the Highway Trust Fund. The changes in the Urban System program mark the first significant and direct involvement of local governments in the Federal -Aid Highway Program. Major changes in the highway program include: --an increase in funding for urban highway programs, --separate funding for urban and non -urban areas, --a redefinition of the Urban System, --a provision that urbanized areas with a population of 200, 000 or more receive funds earmarked for them, --a provision that incorporated municipalities with a population of 200, 000 or more must receive "fair and equitable" treatment, --local discretion in the use of Urban System funds for highways or mass transit, --stronger local initiative in planning and implementing urban transportation, --increased funding for planning purposes, with a portion of the Highway Trust Fund planning funds to be apportioned to metropolitan planning agencies, and --the option to substitute a controversial or nonessential Interstate segment for a mass transit project. Many of these changes could provide new options for local governments. The Department of Transportation regulations and guidelines, now being formulated for the administration of the program, will be a key factor in determining how effectively the program will operate at the local level. The Federal -Aid Highway Act of 1973 authorized $1.07 billion in FY 74 and $1.1 billion annually for FY 75 and FY 76 for Urban Extensions and the Urban System. Additional authorizations were provided for the Urban High Density Traffic Program and for the Priority Primary System. The Act also authorized an additional $3 billion in contract authority for the Urban Mass Transportation Administration and increased the Federal share for capital grants from a level of up to 66 and 2/3 percent to a mandatory level of 80 percent. -2- Mass 2-Mass Transit Operating Assistance (S 386) On February 20, the House and Senate Conferees reached agreement on S. 386, "The Emergency Urban Mass Transportation Assistance Act of 1974. " This compromise bill would make $800 million available for FY 74 and FY 75, to be used for operating assis- tance to improve or maintain transit service or for mass transit capital projects. funds would be allocated to urbanized areas based on the following formula: 50 percent relative urbanized population, 25 percent relative revenue passengers, and 25 percent relative vehicle miles. In urbanized areas in which 75 percent of the population is served by a public transit authority or by a local public body providing transit services, funds would be passed through to a designated agency. Where there is no such local authority or public body, the funds would go to the governor. The Federal share of project costs could not exceed 80 percent. State and local govern- ments would be required to maintain their efforts in subsidizing transit operations. House floor action on S. 386 could be as early as the week of March 4. All members of Congress should be urged to support S. 386, to provide immediate relief for cities' transit systems, through a capital and operating assistance block grant program. Airport Development Act of 1973 (PL 93-44) The Airport Development Act of 1973 extended the contract authority authorization for the Airport and Airway Development Act for another two years and raised the annual minimum authorization from $280 million to $310 million. The Federal share for airport certification and security costs was raised to 82 percent and the Federal share for ADAP grants to all airports that enplane less than 1 percent of the total national enplanements was increased from 50 percent to 75 percent. Federal funding for airport terminals was not included in the Act. The Unified Trans 'tation Assistance Program 3035 and H. R. 12859)* On February 13, the President sent his "Unified Transportation Assistance Act of 1974" to the Congress. The legislation would authorize approximately $16 billion, over the next six years, for a Unified Transportation Assistance Program (UTAP) for highways and mass transit in urbanized areas. For the first time, the Administration has proposed making some federal funds available for mass transit operating subsidies. The proposal calls for a total of $2.5 billion in FY 75, $2.6 billion in FY 76, and $2.7 billion annually from FY 77 through FY 80. From FY 75 through FY 77, $1. 1 billion of the total annual amount would come from the Highway Trust Fund, and $1.4 billion in FY 75, $1. 5 bil- lion in FY 76, and $1. 6 billion in FY 77 would be authorized for transit from the general fund. *For additional information, see "The Unified Transportation Assistance Act of 1974," WASHINGTON ANALYSIS, Number 2, March, 1974, NLC and USCM. Of the annual totals authorized for transit, $700 million per year would retained by Secretary for expenditure only on urban mass transit capital grants; the states would be e apportioned the remaining $700 million in FY 75, $800 million in FY 76, and $900 million in FY 77 to be used for capital or operating costs. Beginning in FY 78, the entire funding for urban highway and transit programs would come from general revenue. The proposal calls for substantial and immediate changes in the Federal -Aid Highway Act of 1973 and the Urban Mass Transportation Assistance Act of 1970. Instead of continuing the present UMTA program of providing capital grants directly to local authorities, a portion of the mass transit funds would be apportioned to the states, as they are in the highway program. The Federal share would be changed from a current level of 70 percent for urban highway programs and a mandatory level of 80 percent for mass transit, to a level of up to 80 percent for transit and urban highways. These funds would be avilable only for use in urbanized areas with a population of 50,000 or more, thus eliminating eligibility for urban areas with a Popula- tion of 5, 000 to 50, 000 as provided in the 1973 Highway Act. These areas with a population of 5,000 to 50,000 would receive funding from a separate rural program. Currently, funds are earmarked for urbanized areas with a population of 200, 000 or more; this would be raised to 400, 000 or more. Up to 40 percent of the Primary, Secondary, Urban Extension and Urban System apportionments could be transferred among any of these systems and the entire apportionment for Urban Extensions could be added to the Urban System. Current law does not permit transfer of funds between rural and urban programs, although it does allow up to a 40 percent transfer between Urban Extensions and the Urban System. The UTAP proposal would cover the perio-:i from FY 75 through FY 80. From FY 75 through FY 77, approximately one-half the total funding would come from the urban transportation programs funded by the Highway Trust Fund. In the first year the proposed program would utilize $1.1 billion from the Highway Trust Fund and $1.4 billion from existing UMTA contract authority, for a total of $2. 5 billion for urban highway and transit programs. At the end of FY 77, when the Highway Trust Fund is due to expire, the funding would have to come from general revenue or some other source. This means that a substantial portion of guaranteed funding from the Highway Trust Fund would be allowed to lapse at the end of FY 77, and the main burden for funding the program would fall on the next Administration. The Senate Public Works Subcommittee on Transportation (Bentsen, D -Tex. , Chrmn.) has announced field hearings on UTAP, transportation planning and the energy crisis. The hearings will begin in March and continue through the summer. New Contract Authority for Mass Transit The 1970 Urban Mass Transportation Assistance Act provided $3. 1 billion in contract authority for mass transit. These funds were authorized for the 5 -year period from fiscal years • 1971-1975. The 1970 Act provided for updating the contract authority every two years there- after. Because of the one-year delay in the Federal -Aid Highway Act of 1973, which did provide $3 billion in new contract authority, an update of the UMTA contract authority should take place in this session of Congress to cover the period from FY 75 through FY 79. -4 - *The capital grant program continues to fall far short of the estimated bus and rail require- ments of the nation's cities. Pending capital grant applications now amount to about $6 billion. Increased capital and operating assistance needs resulting from the EPA transportation control strategies to implement the Clean Air Act of 1970, and additional costs and requirements resulting from the energy crisis, strengthen the need to immediately enact a Federal program for operating assistance and provide a significant increase in contract authority to cover FY 75 through FY 79. Charter Bus Amendment to the Federal -Aid Highway Act of 1973 The charter bus provisions (Section 164 (a)) of the Federal -Aid Highway Act preclude the purchase of buses from UMTA funds or through the Highway Trust Fund option, unless the applicant agrees not to engage in charter service outside its regular service area. This provision makes it impossible for applicants, that want to continue to have the option to provide charter services, to utilize grants for bus purchases under the UMTA program or under the Urban System portion of the Highway Trust Fund. The Senate passed legislation that would have amended the provision for the UMTA and the highway program, but the House supported an amendment that applied only to the UMTA funds. In January, President Nixon pocket vetoed the compromise bill that would have amended the charter bus provision to allow applicants for UMTA grants (but not under the highway option) to engage in charter operations that in the opinion of the Secretary, did not "foreclose" private operators. Justification for the veto was that it did not apply to both the UMTA program and the Highway Trust Fund. On February 7, a charter bus amendment that would change Section 164 (a) to allow the Purchase of buses for applicants that engaged in charter operations that did not "foreclose" private operators was added to the Housing and Community Development Act of 1974. Immediate Legislative Interest In discussing transportation legislation with members of your Congressional delegations, some of the key issues of interest to the cities are the immediate passage of the operating subsidies bill and consideration in this session of Congress of new contract authority for the Urban Mass Transportation Administration, the charter bus amendment to the Federal -Aid Highway Act of 1973, and the Administration's UTAP proposal. Quick action is expected on S. 386, "The Emergency Urban Mass Transportation Assistance Act of 1974. " House floor action could take place during the first or second week of March. ALL MEMBERS OF CONGRESS SHOULD BE URGED TO SUPPORT S. 386, to provide immediate aid for cities' transit systems through a capital and operating assistance block grant program. Members also should be urged to support the charter bus amendment that would ch ange Section 164 (a) of the Federal -Aid Highway Act of 1973, to allow the purchase of buses for applicants that engaged in charter operations which did not "foreclose" private operators. This amendment has been added to the Housing and Community Development Act of 1974. Under current law, it is impossible for applicants, that want to continue to have the option to provide charter services, to utilize grants for bus purchases under the UMTA program or under the Urban System portion of the Highway Trust Fund. The Congress is expected to consider the Administration's UTAP proposal over the next several months, however, it will involve extensive hearings and consideration by the Congress. NUMBER ONE E&XM.4 NATIONAL LAND USE PLANNING LEGISBTION (II) FEBRUARY 1974 INTR0IJUCTION 25OUIREMENTS OF A STAIE PROGRAM The House Interior and Insular Affairs Com- mittee reported H.R. 10294, The bill does not call for federal controls the Land Use Planning Act of 1974 on February 13, 1974. over land use, and minimizes federal substantive A similar bill, S. 268, passed the Senate on controls The bill over the land use planning process. requires, as June 21, 1973 (see WA #7, October 1973). Floor funding, a condition of federal that the action is expected by the first week in March. cess follow state's land use planning pro - certain procedures. These proce- dures include: The stated purpose of federal land use legislation is to change the present institu- * the designation of a single tional arrangements for decision-making affect- state agency to coordinate land ing land uses which will have an impact on more use ac- tivities; than one local jurisdiction. The central theme, according to the Committee Report, is greater public involvement 0 creation of an inter -governmental ad - in these decisions of more than local significance. However, the Committee visory council composed of repre- contends that these changes will not infringe g sentatives of general g purpose local "upon the rights of States or counties governments to review and recommend or cities --or their citizens." The enunciated changes in the land use planning pro - Policy of the bill is to encourage the States to cess; develop effective land use planning and decision-making • development of a data base for land processes which provide for pub- lic and local use decisions; government involvement, while encouraging cities and counties to exercise im- • provision of technical assistance and plementation authority. training for state and local person- nel; SUftRY , assurance of full participation of The reported bill would encourage the and coordination with local govern - govern- states to develop a comprehensive land use plan- ments ning process and methods to implement that process. States would not be required to plan 0 consideration of the demands for land or implement for all land uses; in fact, only of various uses, their costs and ben - those critical areas and land uses that efits, including impacts on local are identified through the planning process as being property taxes; emore than local significance come under the nd use program. In other words, all areas and uses are excluded unless specifically included. • criteria for and the designation of , .-lands, emphasizing critical areas, and would critical areas and land uses, have to coordinate with states and local govern - including an appeal or petition me- ments within the scope of public land purposes chanism for cities over designations already established. or exclusions; and • development of substantive state policies and criteria for their implementation. The state would have three years to inventory its resources and designate critical areas. The state would have an additional five years to establish a program to implement its planning process to assure that land uses in critical areas and critical land uses are con- sistent with the planning process. Implemen- tation would be directly by the state, by general purpose local governments, subject to state review, or a combination of the two. The bill strongly encourages implementation by general purpose local governments and regional associations of general purpose local govern- ments for planning, review, and coordination for land use decisions of regional implication. In questions concerning the consistency of local actions with the state planning process, an appeal mechanism must be established with the burden on the state to demonstrate that local actions are not consistent with the state's pol- icies and criteria. RELATIONSHIP TO COASTAL ZONE MANAGEMENT The land use bill would complement the present Coastal Zone Management Act (CZMA). In effect, a line would be drawn between those areas where CZMA applies, and those areas covered under the land use bill. The CZMA would deal with transitional and intertidal areas, salt marshes, wetlands, beaches, and coastal waters. If the state does not have an approved CZMA program after June 30, 1977, then the -land use law would apply to the whole state. The program authorizes up to $100 million a year for 8 years for grants to the states, and $10 million to the Department of Interior for administration. Grants to states would be allo- cated by the Secretary of Interior based on a formula developed by the Secretary, based on state land resources, population, pressures from growth, land ownership patterns, extent of areas of critical environmental concern, financial needs, "and other relevant factors." The federal share would be 75% of project costs. There would be a maintenance of effort requirement on the states. Each state would be required to al- locate a portion of its grant funds to local governments for planning and implementation. THE FEDERAL ROLE Federal `agencies would be prohibited from interceding in management decisions regarding the state planning process. On non-federal lands, federal actions that significantly affect land use must be consistent with the approved land use program, except in cases of overriding national interest as determined by the Presi- dent. Local governments and states seeking federal assistance for projects significantly affecting land use (except revenue sharing) must have the views of the Governor and/or state agency, as well as local governments and area - wide agencies as to the consistency of the ap- plication with the state land use program. Throughout the bill, the procedures established under OMB Circular A-95 would be the basis for reviewing consistency. The bill would not change existing law regarding Indian reservation or tribal land use; •a federal study of the problem would be re- quired. The appropriate federal agencies would be required to inventory and plan for federal The Committee voted to delete a requirement for an Office of Land Use Policy Administration within the Department of Interior; this was an accommodation to the Administration's proposal to reorganize the Interior and Commerce Depart- ments into a new Department of Energy and Natural Resources. The Department of Interior, while administering the program, would be ad- vised by an Interagency Advisory Board (IAB) composed of representatives of states, local governments, and areawide and inter -state agen- cies. The IAB would review applications for land use grants and advise the federal agencies and Interior on land use issues, regulations, policies, etc. ANALYS I S 7 The pending land use .legislation must be analyzed in the context of three distinct but elated trends: conservation of natural re- urces, decreased local control over land use decisions, and "New Federalism." The first trend is marked by revised life- styles brought about by a growing recognition of the scarcity of our natural resources, including land, and the necessity for their increased con- servation. The conservation of land, or its "non-use," has become a legitimate and desirable land use. However, it is a fact that our pop- ulation will increase and that Americans expect and are entitled to economic, social, and phys- ical opportunities and mobility. Conflicts therefore are inevitable over what is a wise and balanced use of our scarce land resources. The second trend is related to the mechan- isms for resolving such conflicts. There is a growing recognition and acknowledgement that many issues cannot be resolved at the local level. Local governments may not have the au- thority or capacity to deal with issues of more than local significance, such as pollution con- trol, transportation, and the control of sprawl in unincorporated urban fringes. Courts have overturned local land use laws because they failed to consider adequately regional, state, or national interests. Federal legislation has vested primary authority over air pollution and water pollution control with the states, and re- quires regional consideration for highway and other transportation programs. Land use is a major factor in all of these programs, so that any proposed "national land use law" will be s,,jpplemental to these planning requirements, and not in lieu of them. States are adopting general, comprehensive land use laws as well as covering special uses, e.g. coastal zones and flood planes. In the absence of any federal law governing the procedures under which the state land use program operates, the state is within its own limits of discretion as to the degree of responsibility and coordination local govern- ments are allowed. The status of local govern- ments as creatures of the states emphasizes the precarious position cities occupy in the inter -governmental framework for dealing with land use decisions. The third trend affecting the direction of national land use legislation has been "New Federalism," or the turning of power away from the federal government in Washington out to states and local governments. Unfortunately, the concept of New Federalism during actual imple- mentation has often been defined to exclude cal governments. The Clean Air and Law forcement Assistance Act of 1970 both illus- trate the dangers to local governments when cities are not clearly written in as major actors; under both programs, cities frequently have been excluded from active policy involve- ment. More recently, there has been an improve- ment in this trend. The Federal Water Pollution Control Act Amendments of 1972 placed the pri- mary burden of planning and implementing water Pollution control programs with areawide agen- cies, designated by the Governor and composed of local representatives. Revenue sharing estab- lished a direct federal -local funding relation- ship, virtually amending the Constitution by in- directly writing cities into the federal system. The Federal -Aid Highway Act of 1973 strengthened the role of cities in urban transportation, but also strengthened the powers of the agencies performing the required areawide comprehensive transportation planning function. National land use legislation, which has been pending since the 91st Congress, has under- gone significant transformation, reflecting the increasing sensitivity of the Congress to the inadequacy of a "New Federalism" that lumps cities and states together. Where once it was silent on what role, if any, cities had to play in the land use planning process, it now empha- sizes the role of local governments and details the various points in the process at which local governments' interests must be protected. These trends come together in the pending land use legislation, calling upon the states to work with local governments to develop a stronger decision-making process to resolve com- peting and conflicting land uses. IMPACT ON -LOCAL -GOVERNMENTS uontiicts will remain under the land use legislation as to what are the uses of the land and who determines what is "best." The states already have this authority, and it will not be enhanced or diminished in any substantial degree by this federal legislation. Accepting some increased state role arising from this legis- lation --because the states want the federal fi- nancial assistance or are able to legitimize their power grab through the federal law- -the federal land use law would act as a constraint on that state authority. The states will have to develop procedures to assure the primary function of local governments, and to assure that local governments are represented in de- veloping those procedures. What the procedures will be, and how they will be developed and implemented will be left up to the states and local governments. At least, however, local governments are assured a major role. Because the land use legislation is a pro- cess of limitation, with lands and uses excluded unless included, the limitations on the fi- nancial and staff resources of the states, and the fact that most of the land uses and critical areas will occur outside urbanized and developed areas will further lessen the direct impact on local government prerogatives. Cities _could - expect that their powers will be increased over land uses on the urban fringe because the de- cision-making process regarding such uses will. now have to involve them significantly. The land use bill would also incorporate by reference the various substantive environmental standards already adopted by Congress; it does not add new substantive requirements. The state land use planning process would have to assure that there are methods to prevent land uses that would violate applicable air, water, and other environmental standards. The land use law's procedural requirements could provide the structure for all the environmental planning requirements, thus further strengthening the Position of local governments. These procedural protections of the land use bill are intended by the House Interior Committee to apply to the substantive environmental programs. The coordination requirements of the bill would have disadvantages for cities as well as advantages. Additional layers of decision-mak- ing, without adequate funds, expertise or staff- fing, could create delays and duplications. The regional planning agencies will become stronger in their review and comment powers, so that cities may wind up trading federal and state controls for regional ones. The statutory burden on the states to demonstrate that local actions are not consis- tent with the land use planning process may be the most significant and precedent -setting requirement of H.R. 10294. But even with this major protective device, the state will have the authority to disapprove and order revisions in a local land use action. Such state review would be based on consistency with state standards and criteria, and only for designated land uses and areas. This is an additional constraint on the states, but still an added burden on local dis- cretion. C011CLUSION On balance, the limited scope of H.R.10294, the protections for local governments, and the potential increases in local participation in land use decisions beyond their boundaries out- weigh the disadvantages of encouraging in- creased state land use controls and regulations, delays and costs attributable to added layers of goverment and procedures, and a 'greater federal presence in land use decision-making. Since the states already possess the authority to reg- ulate local government land use actions, it is best that such exercise of authority to as many explicit protections for as many constraints on the states as be subject cities, and possible. The adoption of any federal or local Land use program should not be considered the final step toward resolving conflicting uses of land. The institutional constraints are only one fac- tor in determining how our lands are used. Fed- eral tax policies, facility location decisions, housing and transportation investment policies, energy facilities siting, and population distri- bution policies will contribute to the actual land use and national growth decisions of the nation. The Congress must address itself to these major questions if the goals of the land use legislation are to be fully realized. L $� Briefing Paper • TRANSITION FUNDING NEEDS/COMMUNITY DEVELOPMENT Background Fiscal Year 1974 (July 1, 1973 --June 30, 1974) At the beginning of FY 74, the Administration had unilaterally terminated the following HUD community development categorical programs: basic water and sewer facilities, open space land, neighborhood facilities, rehabilitation loans, and public facility loans. The total in impounded funds for these five programs at that time was $530 million. For the urban renewal and model cities programs, the Administration argued that no additional funds were necessary and that sufficient commitments had been made during the latter part of FY 73 to assist participating communities in completing activities already underway so that the two programs could be shut down on June 30, 1974. The new community development block grant program was projected by the Administration to begin on July 1, 1974. NLC and USCM opposed this short -funding approach of the Administration and urged the Congress to approve additional appropriations for these programs and to seek to require the President to spend the impounded funds already available. Congress responded by appropriating $600 million for urban renewal, $150 million for model cities, and $25 million for open space land projects. In addition, Congress called upon the Administration to release impoundments for the water and sewer, open space and rehabilitation loan programs. After the President signed the FY 74 HUD Appropriation bill into law, his Office of Manage- ment and Budget decided to release the following amounts: $322.5 million for urban renewal, $75 million for model cities, and $60 million for rehabilitation loans. The balances available were frozen by OMB, bringing the total in impounded HUD community development funds as of March, 1974, to over $880 million. Fiscal Year 1975 (July 1, 1974 --June 30, 1975) The President's budget proposals for the upcoming FY 75 project the start of the new community development block grant program on July 1 at a $2. 3 billion level. The impound- ment total by July 1, with repayments into the various revolving loan funds, would have topped the $900 million mark. Thus, if Congress were to approve the $2.3 billion level for the block grant, it would constitute a net addition of $1.4 billion for these purposes above those made available by Congress previously (i. e. $2.3 less $.9 = $1.4). The Problem The NLC and USCM remain committed to early enactment of community development block grants --the number one legislation priority for both organizations this year. However, all indications are that Congress will be unable to complete action on the pending omnibus housing and community development bill before the beginning of the next fiscal year (on July 1). Judging from the discussions now going on between HUD and the House Housing Subcommittee, the block grant program would likely not be operational before January 1, 1975 (mid -FY 75) at the earliest. Thus, additional funds will have to be provided during the interim period to maintain the existing local capacity and momentum built up over the years in the existing programs. -2 - If the interim period were to stretch well into ,the next fiscal year, city officials would look to Congress to reauthorize and fund the existing programs at reasonable levels. During FY 73 -- the last fully funded year for these programs prior to the Administration's cuts and termina- tions --$940 million was provided by HUD for urban renewal and $640 million for model cities. We would look to Congress to provide similar figures for an extensive interim period between now and the start of the new block grant. Strategy The most important message to get across to the Congress is the need for some form of transition funding between now and the start of the block grant program. Particularly for programs such as urban renewal, model cities, and rehabilitation loans, the length and scope of the federal investment to date in the development of local government's capacity to deal with its problems is substantial. This costly investment should not be allowed to wither away during the final months before the beginning of a newly reconstituted form of federal community development assistance. A reasonably funded and smoothly administered transi- tion plan will be vital to the early success of the block grant program. Because of the uncertainty at this point in the precise timing for the start of the block grant, the exact strategy for approaching the resolution of the transition issues is also unclear. Therefore, city officials should take this opportunity to convey to the Congress the need for some sort of rational interim funding approach which will allow those communities with ongoing activities to continue forward until the new program begins. • 0 rn\1 MUNnT OLVCLUI'Mr.NT AND IIOUSINa The Adminlatratlon's tY 75 budget for the Department of Housing and Urban Develop- ment agaln proposes new and reformed ap- proarhes to the nation's housing and com- munity development programa. The President is requesting 05.1 billion is, new appropriations for the department's progrluus, up from the current (local year's actual level of 83.5 bill Ion.. Most.. of this Inrreme Is premised upon Congremlonal en- actment and funding of the proposed now (,,immunity development block grant. pro- gram. During PY 74. Impounded funds will con- atltute approximately 24 percent (61.1 bil- lion) of the department's total available budget authority. In PY 75, Impoundments arc projected to equal 19 percent (612 bil- lion, depending upon Congressional approprl- ntlon acts)of total HUD fonds available for nrw commitments. In the area of housing, the budget oon- tinuee to reflect the Administration's deci- sion announced a year ago, to terminate all except a -revised leased housing program fi- nanced through public housing. Also, as pm - posed one year ago, the bulk of funds to be appropriated for the Section 701 Compre- hensive Planning Programwould be chan- neled through the states, rather than have pardons flow directly to cities and areawlde organizations as has been the case In past years. lethally, HUD's research and technol- ogy budget would continue W Increase. The following analysis of HUD's PY 76 budget is divided Into three groups of pro- grains—those being proposed for consoltds- uon Into the community development block grant; planning and research activities: and bnaeing C.�]I AfvNrrY axYxI.OPMENT (TAe.0 HUD -1) For the fourth successive year, the pro- pusad budget sets forth the Administration'@ support for legislation which would oonsol- Idatc HUD's major community development categoricals Into a single community. devel- opment block grant (this year called "The Better Communities Act" by the President). Seven existing programs are proposed for Incluslon to the block grant --urban renewal. model cities, neighborhood faculties, basic water and sewer facilities, open space land, rehabilitation loans, and public facilities loans. For the third year In a row, the Ad- ministration Is proposinganInitial funding level of $2.3 billion far the block grant which Is projected by the President to begin July 1. 1974. The budget eonarma Administration dect- swas made within the past few months to Increase the Impoundment of Congression- ally -approved funds for the various existing Community development programs to over 60 percent of the total CD funds available in _._.._... PY 74. Since theAdministrationpresumes the etac ft ent of the successor block grant legislation prior to July 1, 1974, the budget reflects the ongoing efforts by HUD to ter - 0 EXCERPT FROM "THE FEDERAL I3UDCET AND THE CITIES" March, 1974 minate all of the existing commnnity det'el- opment categorlcals by June 30. 1874. Planning and research (Table HIID-111 Section 701 Comprehensive Planning—One year ago, the President proposed an increwsc In the funding level for the 701 program to •110 million, a rise of 810 mJHlon. Congrem not only did not agree to t'he Increase, It rut the program to 875 million. This year, the President again proposes a 8110 million level. list October, the President sent the Congress his "Responsive Governments Act" calling for a maw. approach to the 701 pro. gram. The budget urges Congress to approve this legislation quickly.- In the meantime. HUD has acted administratively to shift the focus of and control over the 701 program to state governments as much as possible under the existing statute. Presented by HUD with the option of taking over the 701 fund - Ing system In PY 74 or 75, nearly 40 states have chosen to take control during the cur- rent PY 74. Research and technology—The budget rec- ommends that HUD's research and tech- nology funding be raised from 865 million to $70 million. Of this amount, over 817 million would be allocated to the depart- ment's "direct cash assletance" or housing allowance experiments, up from just over 815 million In P!. 74. _ Housing (Table HUD -III) In September, 1973, the President an - trounced the completion of a nine-month long HUD study which he obarwcterlxed se Supporting the Administration's contention that the existing federally-malsted housing programs had "failed." The President set forth an Interim program of moderate pro- ductton levels through a revised Public Hous- ing Section 23 leasing program .Ind through s limited lifting of the freeze on leHA's Sec- tion 23a multi -family rental program during the balance of PY 74. The long-range pro- gram for the Administration would be a direct caehwistance (sometimes referred to as a housing allowance) program which the department Is now studying further. The budget shows the complete relnetl- tution of the freeze on the existing programs, Including Section 238, by June 30. After July 1, all production would be carried on under the revised Section 23 leasing pro- gram. No units have yet been processedor constructed under this revlsed program. Reg- ulatlons setting up the revised procedures have only just been released by HUD for comment. The budget projects this new pro- gram to produce 118.000 units of housing before the end of PY 74 and 300,000 units In leY 75 (see Table HUD -IV). For the existing Inventory of public hous- Ing units (new over 1.1 million), the budget shows an Increase 7n operating subsidy funds from 8380 million to 0400 million. Impoundments (Table HUD -V) Por the fourth successive year. HUD's budget will be subject to substantial fund holdbacks or Impoundments, Shoe " 71, when the present practice of Impounding urban funds began, at least 17 percent of HUD's available budget authority has been. frozen each year. In PY 74, the figure is projected at 24 percent. For PY 75, the pro- portion would depend In large measure upon whether a new community development block grant program funded It $2.3 billion In enacted ae envisioned by the budget. CODIDIent The President's PY 75 Budget for the De- partment of Housing and Urban Development contains both good news said bad news for cltlee. To begin with the good, this year's budget contains a minimum amount of "failure" rhetoric relative W last year's pres- entntion regarding HUD's existing housing and community development programs. City support for reforms and consolidations In HUD's system of grants to urban areas has been based on a desire to Improve on the successes of past and present efforts. Clues believe that a similar positive approach by the. Administration would help appreciably III the task of selling the needed improve- ments to the Congress. The President Is to be commended for his continued support for the principle of a com- munity development block grant program. Unfortunately, the Adminlstratlon's ap- proach to the funding of the existing com- munity development categorical programs during the Interim promises some rough times ahead for titles. The budget—and HUD's specific funding Instructions to their field offices—presume the availability of an operational block grant program by July 1. 1974. With this goal In mind. HUD 1s now In the process of terminating all activities un- der the existing programs by June 30. How- ever, all Indications on the legislative side are that Congress will not be able to make that deadline. Thus, there Is the prospect of considerable confusion and frustration, not to mention lost local capacity and momen- tum, during the traneltlon to a new progrnun when It does finally become available. It should also be noted that the Adminlstra- tlon's proposal for an Initial funding level for the block grant of 02.3 billion has not changed over the past three years, seemingly Ignoring the toll which Infiatl,in has taken during that time. On the housing side, the President's decl- Ston to support production levels for aubst- dlzed housing of about 300.000 units for both " 74 and 75 Is welcome, even though these moderate levels are about one-half of the peak le.l attained 1n FY 72. The concerti, however. Is that a large portion of the pro- jected production In PY 74 and all of the production for FY 75 is scheduled to occur under a revised Section 23 leasing program which has yet to be tested. It can only be hoped that the widespread opposition which has greeted the department's recently re- leased new regulations for flection 23 does not portend a substantial shortfall below even these moderate production levels. The President's Support for Increased funding of Section 701 Comprehensive Plan- ning programs Is gratifying. However, the de- partment's actions In bringing nearly all of the states Into a poeture of controlling the flow of 701 funds to cities and areawlde agen- cres is already causing considerable dlfEcul- tles around the country. Considering the fact that the Senate Committee with juris- diction over the "Respomlve Governments Act" rejected It almost In tato last Decem- ber. It would appesr to cities to be particu- larly Irresponsible for HIID to proceed with Its plans for a state-run 701 program. • TABLE HUD I.—COMMUr11TY DEVELOPMENT PROGRAMS tin million of dollanl 1 All 7 eehting cotor rksl ceammmNy development prs9nm an p an le be consolidated 1gy, 000.000 tlrryewrylr Q 000,000 in npaymenh M wall n@ runt Imo tingle community devM4plmnt Mod re ��r�0190n7em to begin July 1, 1974 (1MM Tear 1975). 1 lttdudw nddNMnM {{10,000, In rpgmenN to revolving fund. The blah nig le protected le tla9ln at 22,900.eg0. 1 Irfudr addNNnM i19,000,0001n npaylmnts to revolving fund. 17400,000,000 carryover, program administratively from Jen. 5, 1973. 1 Net applicable. 1550,000,000 catryover sad 675,000,000 mm approprptiom: program adminiat(stivMy fnym Jan. 5, 1973. TABLE HUDIl.—OTHER COMMUNITY DEVELOPMENT. PLANNING, AND RESEARCH PROGRAMS (in millions of dollars) Fiscal Yost 1974 Fiscal year 1975 Appraprielim Rsca1 year 1974 Apprpriatim Estimated fiscal You 1975 (aelual) obliEWons AgleprlMlon Estimator Cattyovor Appropriation Estimated Carryover Commundy development programa' (actual) obligation spprpriHrmr (request) oLlldelbN apprprlsliom Urban rem.al .......... ...... .--......... ..................... 000 323 2B1 0 0 261 ....... . Model Cities ... ......I .._.. _.......... ....... ...................... 150 75 75 0 0 75 ............. Mater end tamer ...................... . ....................... ........................ 1402 155 0 0 402 55 0 0 0 0 107 55 Openspace ..................... ....----------- ------- .--- .------------------------------ hlighbothood facilities Pudic honing: Management: 350 350 0 400 0 ---------------------------------------------------------------------- RehaGl.tatlonloam------------------ --------- 112 60 131 37 0 156 ------------------------------------------ PubtK facility loam .................................... ............. I ......... -......... w 7 ------- 33 33 0 33 --- Subtotal ---•----- 1,329 465 613 70 0 902 -------- --------------------------------------------------------- Community development black [tents .......................................................... (7 (7 (') 2.300 2.300 0 1 All 7 eehting cotor rksl ceammmNy development prs9nm an p an le be consolidated 1gy, 000.000 tlrryewrylr Q 000,000 in npaymenh M wall n@ runt Imo tingle community devM4plmnt Mod re ��r�0190n7em to begin July 1, 1974 (1MM Tear 1975). 1 lttdudw nddNMnM {{10,000, In rpgmenN to revolving fund. The blah nig le protected le tla9ln at 22,900.eg0. 1 Irfudr addNNnM i19,000,0001n npaylmnts to revolving fund. 17400,000,000 carryover, program administratively from Jen. 5, 1973. 1 Net applicable. 1550,000,000 catryover sad 675,000,000 mm approprptiom: program adminiat(stivMy fnym Jan. 5, 1973. TABLE HUDIl.—OTHER COMMUNITY DEVELOPMENT. PLANNING, AND RESEARCH PROGRAMS (in millions of dollars) Fiscal Yost 1974 Fiscal year 1975 TABLE HUD411.—MOUSING lin wAlor el dabnl Fiscal year 1974 fiscal year 1979 Houaing Appraprielim Estimated Apprpriatim Estimated 11101111111( and raarch program Other community development ea (aelual) obliEWons requested obligations 3. 701. camprahmmive planning____________________________ __.... _----------------------------------------------- 75 65 75 65 110 70 110 70 Research and Wh wl------------------------------------------------------------------------------------------- 166 S2 0 0 TABLE HUD411.—MOUSING lin wAlor el dabnl Fiscal year 1974 fiscal year 1979 Houaing - Combed "fit avellebN Ea9maW ablige9eta Cerryever atho iza- Isom CmIrW ►uthwtty available Estimated "Bottom Carryover authorize. lions L L3S, homeerenMMdp.___.,:........:...:::.:.::::............................... 250 3S 220 0 0 220 ..::... 1239. 04 166 S2 0 0 59 remal------------------ __—____________--------- _---------------------------------- lent 50 39 13 0 0 14 supplements ---------------------------------------- ________________________ housing: Prodaetoa 23 Lolled__________________-__---_____-____----_--_.__---_--_ __________ 260 235 0 610 640 0 Pudic (3. Pudic Housing: Production (an a(Ner)________________------------------------------------ 70 11 0 0 D 0 Pudic honing: Management: 350 350 0 400 100 0 OperatingwMldlm._.:.:..::.:.............:.....::...::::...:..................... Modernization ----------------------------------------------------------------------- 20.. 20 0 20 20 0 Irrludes a projection M 116.000 untle under invited Ia. 23 lnaad IwMng prey 9 yArich Is M yet openlishm 'TABLE 1111D.V.—IMPOUNDMENTS 9a miNbru of doRenl TABLE MUD-$V.—ANNUAL NEW COMMITMENT LEVELS fin 9seusaede el mal Fiaael gear— Fleul Year ►leulTear— 1971 1172 1973 1174 ._I—_--.__ 19751 Im 1971 Int 1973 1974 — 1975 S 735. hoemmamanhip143 142 1St - 22 Id 0 ..--___------------------------------------------------------------- 5 236. ram1Y._.. ______________________________________________________ 132 140 59 IL --------------------------------- Model Cities------------------------------------------------------------------- 51 127 __....._ ch0VIJnmmf--------------------------------------------------------------------------- 102 a 101 39 Rent 1 173 0 300 Public Goo am M 22 491 f7 1' M11— 56 Tofah............................ — _ —_ Total ............................................................................... 417 429 453 139 3 3(to Irrludes a projection M 116.000 untle under invited Ia. 23 lnaad IwMng prey 9 yArich Is M yet openlishm 'TABLE 1111D.V.—IMPOUNDMENTS 9a miNbru of doRenl Fiaael gear— Fleul Year Impoundments (unused balarmai) 1971 1172 1973 1174 ._I—_--.__ 19751 Impoundments (unwed balawn) 1971 1972 1973 1911 19751 Urban mean 215 ........ 4 211 - 1 231 236 ........................................... a 11 tl 171 52 N --------------------------------- Model Cities------------------------------------------------------------------- 75 Rent supplements.............................. $24 77 39 13 14 water ea*car------------------------------- Rebo ititst" lean ..................................... 200 Goo am M 22 491 f7 1' M11— 56 Tofah............................ 670 126 922 1.092 1.194 Opo/ sppsas------------------------------------------ Public [WANT loan .............................................. ---------- - 50 20 59 33 ass 133 ___. Total as percent of available bmd2otaothea- =- =7--- _ _ .: _ _ Public Boosting--------------------------------- 164 79 _..__.._.._.._.._._._... OF .................................... I1 20 17 24 19 2s------------------------------------------- 135 a 221 221111 229 s Ulti"* Bacal year 1974 impound ant Aaum"blodto cation by a w4fnsioW ap9amriatior I Budget proposes tbeas pagrmM to be lermisetad an James, 30.1274. with similar activities to be committees. o lC turnedwit gnat program on July nedvwe 1. 1974. Rgunbillim Ide1weelopmentblock l Briefing Paper - • COMMUNITY DEVELOPMENT BLOCK GRANTS Legislative Status Senate On February 7, 1974, the Senate Banking, Housing and Urban Affairs Committee ordered reported its omnibus housing bill, "The Housing and Community Development Act of 1974." The bill --which does not yet have a number --and the Committee Report are expected to become available during the week of March 4th. The bill could go to the floor by mid-March. 1 -louse On February 5, 1974, the Housing Subcommittee of the House Banking and Currency Committee began mark-up sessions on its version of the omnibus housing legislation. The Subcommittee Hopes to conclude its deliberations in March and immediately report the bill up to the full I louse Committee for consideration. The schedule for taking the matter up in the full Committee and for reporting the bill out to the House floor is uncertain at present. Major Provisions Similarities: Senate and Mouse-- ProErams Consolidated. Both bills (the reported Senate Committee bill and the bill proposed by Congressmen Barrett and Ashley of the House Housing Subcommittee, H. R. 10036) would consoli- date the following programs: urban renewal, model cities, neighborhood facilities, basic water and sewer facilities, and open space land. The Senate bill would also include the Public Facility Loan program. The House bill would add the Rehabilitation Loan program to its list. Eligible Recipients. Both bills would make all "units of general purpose local government" eligible to seek block grant funding. Combinations of two or more such units would also be eligible. 1?ligible Activities. Both bills would authorize a wide range of eligible activities, generally designed to duplicate the activities previously eligible under each of the consolidated categoricals, except model cities. With the latter, the bills would authorize the use of block grant funds for certain limited public services activities which were supportive of the main purposes of the community development program. Application Requirement. Both bills would require all interested communities to submit applications. In doing so, each community would be required to set forth its multi-year program • for dealing with its community development problems, including its needs to improve its stock of decent housing for low and moderate income persons and to eliminate and prevent slums, 0 10 -2- Wight, and deterioration. When submitting requests for refunding, each community would also provide a performance report assessing the progress made as against the community's previously stated needs and objectives. I`cderal Review. (loth bills call for a simplified, streamlined federal review process of the applications submitted. A large part of the federal review responsibility would be shifted to a beefed up post audit process. Both bills would place maximum time restrictions upon HUD's processing with applications automatically deemed approved if the Department failed to take action during the prescribed time period. Allocation System. (loth bills would split the total national appropriation each year into two pets, one for metropolitan areas and one for non -metropolitan areas. Then, within each of these pots, both hills would earmark a portion of the funds for certain communities meeting specified criteria. All other communities would then be eligible to seek assistance out of the remaining unearmarked, discretionary funds. In computing the earmarks, both bills also provide minimum allocations for those communities with ongoing activity under the consoli- dated catergoricals. I)if ferences: Senate and (louse -- Program Restrictions. The Senate bill provides that (1) a community may not spend more than 20 percent of its C. 1). funds for activities not intended to be of direct and significant benefit to families of low and moderate incomes or to neighborhoods which are presently blighted or deteriorating, (2) a community may not expend more than 20 percent of its C. D. funds to provide eligible public services, and (3) C. D. funds may not be expended for the construction of community facilities which do not provide service principally intended for specified community development areas, or for the construction of schools, libraries, city halls, civic auditoriums, police stations, hospitals, sports arenas and parking garages. The I louse bill has no such restrictions. Codes. The Senate bill requires that a community certify that it has adopted and is enforcing such housing, building and other codes as are necessary to assure that housing in the community will meet reasonable standards with respect to safety, sanitation and habitability. The I louse bill has no similar provision. I lousing Replacement. The Senate bill requires that each community certify that it has made provision for the relocation of all families who are displaced as a result of the C. D. program, and has provided standard housing units for low and moderate income families at least equal in number to those occupied by such families prior to their demolition or removal. fhe I louse hill has no similar provision. ■ -3- 0 • Allocation System. The I -louse bill would provide a formula figure for all metropolitan cities (defined as central cities and all other cities over 50,000 population --about 490 cities) based on their relative amounts of population, poverty (double weighted), housing overcrowding, and past program experience. In addition, all units of general local government with ongoing activity under the consolidated categoricals would be eligible for minimum funding allocations (an additional 700 communities). This commitment for communities below 50,000 population would he phased out during the first five years of the C. D. program. Under the Senate bill, no formula mechanism is used. Instead, initial earmarks, based on past prograln experience, would be determined for about 1,050 communities. All other units of general local government would be eligible for discretionary funding. Counties. Under both bills, counties --on the same basis as other communities --would he eligible for minimum earmarks based on ongoing program activity under the consolidated categoricals. In addition, under the House bill, "urban" counties (defined as counties with population of '200,000 or more exclusive of metropolitan city populations) would be given a priority for the use of discretionary money. In the Senate bill, HUD would be instructed to promote and encourage applications for combinations of general local governments (one of which is an urban county --defined as a county in a metropolitan area with either 75 percent of the population of that area or a population of 200,000 or more). Local Share. The Senate bill would require each participating community to cover 10 percent of the cost of its C. 1), program with a local cash share. The blouse hill provides for a 100 percent federal grant with no local share required. Authorisations. The Senate bill would authorize $2.8 billion and $3.3 billion respectively for the first and second years of the program. In addition, $300 million would be authorized during the first year for the separate funding of urban renewal amendatory requests. The House bill would authorize $2.5 billion, $2.75 billion, and $3 billion respectively for the first three years of the program. I{ffective Date. The Senate bill proposes to begin the C. D. program on July 1, 1974 (FY 75). The I louse bill would begin the program on July 1, 1975 (FY 76). As regards the House bill, it is understood that the existing community development categoricals would be reauthorized and funded for FY 75. Legislative Strategy Senate The Community Development Block Grant section of the omnibus housing bill emerging from the Senate Committee contains a mixture of both positive and negative provisions from the cities' point of view. While the bill does propose to fund the new program at reasonably high starting ® levels, it also includes a series of regressive program restrictions which could seriously hamper local flexibility. Notwithstanding this mixed bag nature of the Senate bill, however, 4- • the interests of the cities would be best served now by having the full Senate act quickly on the measure and send it on to the House. There is good reason to believe that a number of the problem, presented by the Senate bill will he clarified in the House Committee while others still can he favorably resolved in the ultimate House -Senate Conference Committee meetings. Thus, the strategy in the Senate is to urge speedy consideration and passage of the omnibus "I lousing and Community Development Act of 1974. " In addition, city officials should continue with their efforts to persuade members of Congress of the importance of continuing the funding of rile existing categorical programs until the new block grant program is in place and operational. So far as the Senate is concerned, this means concentrating on the members of the Senate HUD Appropriations Subcommittee which will be considering HUD's FY 75 budget very shortly. louse Assuming that the Senate does move fairly quickly in acting on the omnibus housing legislation, [lie prospects fir ultimate enactment of the bill rest in the hands of the leadership of the House ('onnnittev ;,nd of the full I louse itself. In 1972, a similar omnibus housing package was killed in the I louse, in part because it took nearly 3-1/2 months for the bill to get out of the full I louse Banking and Currency Committee after having cleared the smaller Housing Subcommittee. A similar delay during this most unpredictable political year could very well also kill this bill. So, the strategy, first and foremost, is to convince the members of the House of the importance which this community development legislation has for cities and of the critical need of its early passage. This is a message which all city officials should carry to their Congressmen, regard- IeSS of whether they sit on the House Banking and Currency Committee. In this regard, par- ticular attention should he paid to the 15 members of the very important House Rules Committee which became the graveyard for the 1972 omnibus housing bill. i\S in rile Senate, it is also of parallel importance that the case for reasonable transition funding be made in the I louse, particularly to the members of the House HUD Appropriations Subcommittee. Since all appropriation bills must originate in the House, it is there where the cities' battle for transition funding is likely to be decided. In (;vneral, What We Are For In discussing the importance of the community development block grant legislation with members of your Congressional delegations, you will want to generally describe what it is that we are scvking from this legislation. We are supporting a simplified, flexible community development program to replace the present separate and somewhat narrow categoricals. For communities now participating in those programs, the new block grant will enable them to build on the important work that has already gone on with federal assistance. For communities without experience in previous programs, the block grant approach offers them a more accessible and more useful federal delivery system than has been available up to date. • I] We are urging the Congress to keep the process for obtaining federal community development funding as simple and straightforward as possible At the same time, we expect and are supporting Congressional efforts to place some broad national policy outlines around the program. To the extent practicable, we are proposing that the federal responsibility for regularly reviewing local progress made under the block grant be shifted from a prior - review -and -approval role to a performance post -audit function. We are supporting measures in this legislation which would tend to establish a stabilized funding system for communities, to the extent feasible on the basis of actual need. We are seeking multi-year funding provisions so that communities can do more long range programming. We are strongly supporting a close linkage between housing and community development programs and are therefore also working hard to secure enactment of housing legislation this year as well. SENATE COMMITTEE ON APPROPRIATIONS Subcommittee on Housing and Urban Development, Space, Science, and Veterans William Proxmire (Wisconsin) Chairman John O. Pastore (Rhode Island) Jolin C. Stennis (Mississippi) Mike Mansfield (Montana) Daniel K. Inouye (Hawaii) Birch Bayh (Indiana) Lawton Chiles (Florida) Charles McC. Mathias, Jr. (Maryland) Clifford P. Case (New Jersey) Hiram L. Fong (Hawaii) Edward W. Brooke (Massachusetts) Ted Stevens (Alaska) ]-HOUSE COMMITTEE ON APPROPRIATIONS Subcommittee on Housing and Urban Development Space, Science, and Veterans Edward P. Boland (Massachusetts) Chairman Joe L. Evins (Tennessee) George E. Shipley (Illinois) J. Edward Roush (Indiana) Robert O. Tiernan (Rhode Island) Bill Chappell, Jr. (Florida) Robert N. Giaimo (Connecticut) Burt L. Talcott (California) - - Joseph M. McDade (Pennsylvania) . William J. Scherle (Iowa) Earl B. Ruth (North Carolina) • CONGRESSIONAL COMMITTEE ORGANIZATION FOR HOUSING AND COMMUNITY DEVELOPMENT Senate Committee on Banking, housing and Urban Affairs I)emocrats 'lolni Sparkman (Alabama) Chairman `William Proxmire (Wisconsin) 'llarrison A. Williams, Jr. (New Jersey) 'I'honws J. McIntyre (New Hampshire) 'Alan Cranston (California) 'Adlai F. Stevenson, III (Illinois) 1. Bennett Johnston, Jr. (Louisiana) Willi-ini D. Ilatltaway (Main) Joscl>li It, Biden, Jr. (Delaware) Republicans *John G. Tower (Texas) Wallace F. Bennett (Utah) *Edward W. Brooke (Massachusetts) *Robert W. Packwood (Oregon) Bill Brock (Tennessee) *Robert Taft, Jr. (Ohio) Lowell P. Weicker, Jr. (Connecticut) \9el"hers of the Subcommittee on Housing and Urban Affairs Ilouse Committee on Banking and Currency Wright Tatman (Texas) Chairman ':William A. Barrett (Pennsylvania) (Suhconunittee Chairman) keonor K. Sullivan (Missouri) Ilei ry S. IteuSS (Wisconsin) Thomas I.. Ashley (Ohio) 'William S. Moorhead (Pennsylvania) - " Itol,crt (;. Stephens, Jr. (Georgia) "I`criiand I. SI. (;ermain (Rhode Island) Henry li. Gonzalez (Texas) Joseph (;. Minish (New Jersey) "Richard -T. Manna (California) Toni S. Gcttys (South Carolina) Frank Annunzio (Illinois) 'Phomas M. Rees (California) James M. Iianley (New York) I rank J. Brasco (New York) Edward J. Koch (New York) William R. Cotter (Connecticut) Parren J. Mitchell (Maryland) Walter li. rauntroy (District of Columbia) Andrew Young (Georgia) John Joseph Moakley (Massachusetts) IFortney II. (Pete) Stark (California) Corrine (Lindy) Boggs (Louisiana) . Members of the Subcommittee on Housing **William 13. Widnall (New Jersey) Albert W. Johnson (Pennsylvania) **J. William Stanton (Ohio) **Ben B. Blackburn (Georgia) **Garry Brown (Michigan) Lawrence G. Williams (Pennsylvania) Chalmers P. Wylie (Ohio) **Margaret M. Heckler (Massachusetts) Philip M. Crane (Illinois) **John Fl. Rousselot (California) Stewart 13. McKinney (Connecticut) Bill Frenzel (Minnesota) Angelo D. Roncallo (New York) John B. Conlan (Arizona) Clair W. Burgener (California) Matthew J. Rinaldo (New Jersey) 0 A. Policy ENERGY WORKSHOP BRIEFING PAPLR CONGRESSIONAL -CITY CONFERENCE March 3-5, 1974 Cities require an adequate and reliable supply of energy at reasonable cost to maintain and improve the urban economy and environment. A variety of problems threaten the ability of cities to obtain this supply. Local governments in their dual role as both consumer and consumer advocate are significantly affected in their ability to procure adequate fuel supplies, pay for fuel, maintain economically viable tax and employment levels, and provide for the health and welfare of their urban citizens. New steps must be taken to develop and implement a national energy policy that will guarantee reliable and adequate supplies of reasonably priced energy, minimize environmental degradation, and encourage judicious use of our precious energy resources. Energy Production The growing shortage of energy supplies and high prices for energy may be due partly to regional disparities in energy supplies and artificial, monopolistic restrictions on the supply of energy. As one step in an overall energy strategy Congress should: --Establish a quasi -governmental corporation for purposes of expediting the exploration, production, and distribution of fuels; --Take steps to guarantee vigorous competition between fuels and within fuel industries to assure economic efficiency in production and consumption; - --Limit the amount of time that firms which lease government owned mineral intensive land may withhold such land from production; and --Expand research and development efforts to stimulate energy recovery from solid waste. Energy Conservation The United States must reduce its consumption of energy. As part of an overall conservation strategy Congress should: --Require all manufactuerers to indicate the energy efficiency of their products; --Encourage the development of more energy efficient engines and electrical products; --Limit automobile energy consumption through regulation based upon fuel efficiency or other factors that correlate with energy conservation; and --Increase the amount of support for energy efficient modes of trans- portation including mass transit and rail passenger services. -2- 0 ;I 0 Energy Impact on Cities In order to alleviate the burdens placed on cities and urban residents by the energy problem Congress should: --Consider providing compensatory payments to local governments which suffer economic hardships; --Expand public employment opportunities aimed at meeting the problems of urban unemployment before it reaches crisis proportions;and --Control the prices of fuel and the profits earned through their manu- facture. B. Background Shortages of petroleum produced became quite severe during the last part of 1973 and continue presently in spite of the absence of an official "crisis. " Cities are being confronted by a variety of energy related problems not the least of which is their Inability to procure adequate reasonably priced fuel supplies to operate essential city vehicles. More importantly, however, are the secondary effects of the energy crisis which loom on the horizon for most and are currently being felt directly by many local governments. Some of these include: Unemployment --Various estimates from credible sources indicate that there will be at least 1.3 million more people unemployed in 1974 than were out of work in 1973. Total national unemployment in the coming year is expected to reach at least six million people and could amount to as much as 9% of the working population. In many cities this figure has already reached 18% due to massive industrial and economic dislocations. The unemployment situation is compounded by the gasoline "problem" in that many persons who depend on automobiles for their economic livelihood or those persons who reside in outlying areas not served or poorly served by mass transportation are unable to obtain adequate gasoline supplies and thus unable to get to work. Tax Revenues-- The primary and secondary impacts of the energy emergency on the local urban economy will be quite substantial. The most obvious is the virtually assured reduction in motor vehicle gasoline tax revenues brought about by the decrease in supply of gasoline. Other less obvious but direct effects include reduced revenues from municipal sales and income taxes as well as parking facilities. The decreased sales and income tax items can largely be attributed to the projected decreased economic activity within the city during the ensuing year. Concomitant to this spiraling rate of inflation, housing starts --another major indicator of national and local economic health -- are expecting to decrease almost 3097, to 1.9 million from 2.6 million during • 1973. In many cities this could spell economic doom unless strong steps are initiated by the Federal government in the very near future. Prices and Profits --Of overriding concern is the problem of increased fuel cost. Massive price increases --allegedly brought about by increased costs 1• • -3 of imported crude --have placed severe constraints on consumer budgets as well as significantly disrupted the local planning and budgeting processes. Increased fuel costs will have to be born directly by the consumer either at the gas pump or at the fare box. A larger chunk of his spendable income will necessarily be set aside for energy, thus decreasing the amount of money available for purchase of other essential goods. Larger individual energy budgets also mean that less money will be pumped into other more local sectors of the economy. C. Legislation There are over 350 energy related bills currently pending in the Congress. Of these, two are of special importance to city interests as expressed in NLC and USCM policy statements. These include: 1. Consumer Energy Act of 1974 2. National Fuels and Energy Conservation Act 1. Consumer Energy Act Overall, the Consumer Energy Act of 1974 represents an attempt to restore order to one of the more important sectors of the economy through initiatives aimed at producing competition and general revitalization of the free enterprise system. Some of the more important items in the legislation include the following: Oil and Gas Regulatory Reform --The bill proposes to regulate both oil and gas similarly at the wellhead, delegating responsibility for this task to the Federal Power Commission. The bill also proposes indirectly to raise the price of regulated natural gas, establishing a national area rate for production which takes into account the various regional disparities. "Small producers" would be exempted from all controls. Price Relief for Consumers-- The bill would require the President to establish a ceiling price for crude oil and all petroleum products to be determined by the highest price for each commodity during the 14 -day period ending on January 10, 1974. Additionally, prices would be initially rolled back to the December 1, 1973, levels. Federal Oil and Gas Corporation --The bill would establish a Federal Oil and Gas Corporation to explore, develop and produce natural gas and oil from publicly owned lands. Equal Treatment for Small Producers of Oil and Gas --The bill would require that all transportation pipelines (which currently are controlled by the six or eight largest oil companies) be available for use by small producers on a nondiscriminatory basis. 0 Also, 50 percent of all Federal land leases world be required to use the royalty system of bidding in place of the current bonus method. The bonus system requires an enormous initial capital outlay on the part of the successful bidder, thus limiting most previous successful bids to those coming from larger corporations. The royalty system on the other hand only requires that a bidder pledge a certain percentage of gross receipts over a period of time. Energy Rate Restructuring --The bill requires that after January 1, 1975, all changes in rates or charges made for transportation and sale of natural gas and oil products be such as to discourage excessive consumption. Regressive rate structures are to be phased out over a similar per iod. In the Senate the bill is currently undergoing mark-up by the Senate Commerce Committee (Warren Magnuson, D -Wash. , Chrmn.) whose members include: Pastore (D-R.I.), Hartke (D -Ind.), ]dart (D -Mich. ), Cannon (D-Nev.), Long (D -La.), Moss (D -Utah), Hollings (D -S. C.). Inouye (D -Hawaii), Tunney (D -Cal.), Stevenson (D -Ill.), Cotton (R-N.H.), Pearson (R -Kan.), Griffin (R -Mich.), Baker (R -Tenn.), Cook (R-Ky.), Stevens (R -Alaska), and Beall (R -Md.). Senate Majority leader Mike Mansfield (D -Mont.) along with 27 other senators have expressed support for the legislation. In the House the bill has been referred to the House Interstate and Foreign Commerce Committee (Harley O. Staggers, Chrmn.) whose members include: Macdonald (D -Mass.). Jarman (D -Okla.), Moss (D -Cal,,), Dingell (D -Mich.), Rogers (D -Fla.), Van Deerlin (D -Cal.), Pickle (D -Tex.), Rooney (D -Pa.), Murphy (D -N. Y.), Satterfield (D-Va.), Adams (D -Wash.), Stuckey (D -Ga.), Kyros (D -Me.), Eckhardt (D -Tex.), Preyer (D -N. C.), Podell (D -N. Y.), Helstoski (D -N. J.), Symington (D -Mo.), Carney (D-0.), Metcalfe (D-111.), Byron (D -Md.). Roy (D -Kan.), Breckinridge (D-Ky.). Devine (R-0.), Nelsen (R. Minn.). Broyhill (R. -N. C.), Harvey (R -Mich.), Carter (R-Ky.), Brown (R-0.), Kuykendall (R -Tenn.), Skubitz (R -Kan.), Hastings (R -N. Y.), Collins (R -Tex.), Frey (R -Fla.), Ware (R -Pa.), McCollister (R-Neb.), Shoup (R -Mont.), Goldwater (R -Calif. ), Lent (R -N. Y.), Heinz (R -Pa.), Hudnut (R -Ind. ), and Young (R -Ill. ). 2. National Fuels and Energy Conservation Act The National Fuels and Energy Conservation Act of 1974 was passed by the Senate in early December. The measure would require the implementation of a wide variety of far reaching conservation measures. Declaring it to be the policy of the United States to conserve fuels and energy resources through more efficient conversion and use the Act would require: --a review of State and local government energy use; --new federal facilities to be located near existing or planned mass transit facilities; • --automobile manufacturers to increase the fuel efficiency of their products by 5070 before 1984; and --manufacturers to disclose to consumers the energy costs associated with their products for the life of the product. Additionally, the bill would authorize a series of transportation related experi- ments including grants for low or fare free mass transit programs, and carpool incentive projects. Studies concerning the impact of transportation energy conservation measures on the mobility of urban residents and the economic viability of central city business establishments would also be funded. The bili is currently before the House Commerce Committee where no action has been scheduled (members of the Committee are listed above). City officials should urge Committee members to begin immediate consideration of the measure. D. NLC and USCM Positions Congressmen and Senators should be made aware of the tremendous impact that the national energy situation has had on local governments and their citizens. Because local governments are so deeply affected by this national problem they have a vested interest in helping to formulate and implement a national energy policy. There are several basic options available to meet the imrmdiate and long term shortages. These include increasing the supply of energy through increased pro- duction, reducing present energy consumption levels through conservation measures, and development of new sources of energy. The strategy proposed by NLC and USCM would include a varied mix of all three of these alternatives. Specifically, we support the industry regulatory reforms contained in the Consumer Energy Act because they hold promise of increasing industry competition thus increasing the supply of conven- tional fuels and at the same time creating a more equitable mechanism for determining prices. We support the National Fuels and Energy Conservation Act because It mandates various conservation practices which we believe will decrease both our immediate and long term energy demand, thus lessening the squeeze and ameliorating the hardship caused by the present shortage. Also. we urge Congress to expand employment assistance to areas which suffer significant degrees of energy related unemployment due to the national energy problem. Finally, we urge Congress to consider various forms of general revenue compensate assistance to local governments to help lighten the new fiscal burden placed on them because of economic dislocations brought about by national energy actions (or prior • inactions). A s �oommoftm . 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V • I 1" rrn M:4 4M 3 T_ g p _ -tea Con Tic Glc zc COOZ cbz ewe T lo 3 13. �O 3 co COa N Q - zc N �p M O • O r wr o� �o J . 0 0 (3/7/74). y z Part I of CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT By and Between Old Capitol Associates, a partnership, and The City of Iowa City, Iowa, a municipal corporation. CONTRACT FOR 0 SALE OF LAND FOR PRIVATE REDEVELOPMENT AGREEMENT, consisting of this Part I and Part II (Form HUD - 6209B, 9-69) annexed hereto and made a part hereof (which Part I and Part II are together hereinafter called "Agreement"), made on or as of the day of March, 1974, by and between the City of Iowa City, Iowa, a public body corporate (which, together with any successor public body or officer hereafter designated by or pursuant to law, is hereinafter called the "Agency"), established pursuant to the statutes of the State of Iowa pertaining to Municipalities, Cities, Towns, and particularly Chapter 403 of the Code of Iowa as amended (hereinafter called "Urban Renewal Act") and having its office at the Civic Center in the City of Iowa City (hereinafter called "City"), State of Iowa, and the Old Capitol Associates, a partnership organized and existing under the laws of the State of Iowa (hereinafter called "Redeveloper" or "Developer") and having an office for the transaction of business at Rural Route #(4, Box 279, in the City of Iowa City, County of Johnson, and State of Iowa, WITNESSETH: WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the Agency has undertaken a program for the clearance and recon- struction or rehabilitation of slum and blighted areas in the City, and in this connection is engaged in carrying out an urban renewal project known as the "City -University Project I, Urban Renewal Project No. Iowa R-14 (hereinafter called "Project") in the area (hereinafter called the "Project Area") located in the City; and WHEREAS, as of the date of the Agreement there has been prepared and approved by the Agency an urban renewal plan for the Project, consisting of the Urban Renewal Plan, dated September 3, 1969, by Resolution No. 2157, as amended by Amendment No. 1 thereof, dated April 4, 1972, and approved by such Agency, on April 18, 1972, by Resolution No. 72-159 and Amendment No. 2 thereof, dated May 1, 1973, and approved by such Agency on May 1, 1973, by Resolution No. 73-173 and Amendment No. 3 thereof dated September 25, 1973, and approved by such Agency on September 25, 1973, by Resolution No. 73-420 (which plan, as so amended, and as it may here- after be further amended from time to time pursuant to law, and as so constituted from time to time, is unless otherwise indicated by the context, hereinafter called "Urban Renewal Plan") and WHEREAS, a copy of the Urban Renewal Plan as constituted on the date of the Agreement has been recorded among the land records for the place in which the Project Area is situated, namely, in the Office of the 1 Johnson County Recorder in Book 166F at page 21 and has been filed in the Office of the Clerk of the City located at the Civic Center in the City; and WHEREAS, in order to enable the Agency to achieve the objectives of the Urban Renewal Plan and particularly to make the land in the Project Area available for redevelopment by private enterprise for redevelopment for and in accordance with the uses specified in the Urban Renewal Plan, both the Federal Government and the City have undertaken to provide and have provided substantial aid and assistance to the Agency through a Contract for Loan and Capital Grant dated September 2, 1970, in the case of the Federal Government; and WHEREAS, pursuant to Chapter 403, Code of Iowa as amended, the Agency has offered to sell and the Redeveloper is willing to purchase in stages certain real property located in the Project Area and more parti- cularly described in Schedule A annexed hereto and made a part hereof (which property as so described is hereinafter called "Property" or "Parcels" and to redevelop the Property for and in accordance with the uses specified in the Urban Renewal Plan and in accordance with the Agreement; and WHEREAS, the Agency believes that the staged redevelopment of the Property pursuant to the Agreement, and the fulfillment generally of the Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable Federal, State and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the Agency has acquired title to or is in the process of acquiring title to certain property described in Schedule A hereof; and WHEREAS, the Agency and the Redeveloper have agreed to the exchange and sale of certain additional parcels and property as more parti- cularly described in this agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: SECTION 1. SALE: PURCHASE PRICE. Subject to all the terms, covenants, and conditions of the Agreement, the Agency will sell the property described in Schedule A hereof to the Redeveloper for, and the Redeveloper will purchase the property from the Agency and pay therefor, the amounts set forth in Schedule B hereof, on the timetable set forth in Schedule C hereof, subject to the terms and conditions of Section 2 of this Agreement. The amounts set forth in Schedule B. hereinafter called "Purchase Price, " are to be paid in cash or by certified check simultaneously with the delivery of the deeds conveying the property to the Redeveloper. SECTION 2. CONVEYANCE OF PROPERTY. (a) Form of Deed. The Agency shall convey to the Redeveloper title to the property by Special Warranty Deeds (hereinafter called "Deeds"). Such conveyance and title shall, in addition to the condition subsequently provided for in Section 704, Part II, hereof, and to all other conditions, covenants, and restrictions set forth or referred to elsewhere in the Agreement, be subject to: (1) Such easements as described or referred to in "Schedule A," description of property, attached hereto and referenced as a part hereof; (2) All conditions, covenants and restrictions contained in said Urban Renewal Plan and Part I and II of this Contract. (b) Time and Place for Delivery of Deeds. The Agency shall deliver the Deeds and possession of the properties to the Redeveloper upon payment of the purchase price in full upon such dates as called for in this Agreement. Conveyance shall be made at the principal office of the Agency, Iowa City, Iowa, and the Redeveloper shall accept such conveyance and pay to the Agency at such time and place the purchase price in full for each parcel delivered. (c) Apportionment of Current Taxes. The Agency agrees to convey the property to the Redeveloper free and clear of all real estate taxes except that the current taxes, if any, shall be apportioned and pro rated between the Agency and the Redeveloper as of the date of delivery of the deeds. If the amount of the; current taxes on the property is not ascertainable on such date, the apportionment between the Agency and the Redeveloper shall be on the basis of the amount of the most recently ascertainable taxes on the property, but such apportionment shall be subject to final adjustment within thirty (30) days after the date the actual amount of such current taxes is ascertained. (d) Recordation of Deeds. The Redeveloper shall promptly file the deeds for recordation among the land records of Johnson County. The Redeveloper shall pay all costs (including the cost of the State documentary stamp tax on the deeds, if any), for so recording said deeds. 3 • (c) Delivery of the Abstract. The Agency will. furnish to the Redeveloper in advance of the closing on each parcel, an abstract of title showing good marketable title in the City of Iowa City, Iowa, free and clear of all taxes, assessments or other encumbrances except as hereinbefore specified. The abstracts of title shall be at Agency expense and will be certified by a qualified abstracting company to the close of business as the closest practical date prior to the date of the deed of conveyance. The cost of obtaining an attorney's examination of the abstracts for title opinion and/or the cost of obtaining title insurance, if required, shall be at the expense of the Redeveloper. (f) Delivery of Property. The Agency will deliver the property described in Schedule A hereof on the timetable and schedule described in Schedule C hereof. The Redeveloper agrees to pay for and accept title of such property as called for in this Agreement and agrees to begin develop- ment promptly on the property conveyed within the time called for in this Agreement, specifically Schedule D. Failure by the Redeveloper to pay for and accept delivery of the urban renewal property as called for herein will result in forfeiture of the deposits posted with the Agency by the Redeveloper attributable to such property, without limiting the Agency as to other remedies against the Redeveloper. In the event the Agency is unable to deliver the property as called for in Schedule C to the Redeveloper, the Redeveloper shall have the option of rescinding the development contract as to such parcels in default only by causing a written notice to be served upon the Agency of the exercise of such option. Upon receipt by the Agency of this notice, the Agency shall have sixty (60) days to cure the default by tendering the property covered in the notice to the Redeveloper. If the Agency is unable to cure the default within the sixty (60) days as provided herein, the Redeveloper shall stand .relieved of its obligation to accept the parcel or parcels involved and the Agency shall promptly refund that portion of the Redeveloper's deposit attributable to such parcels to the Redeveloper. It is expressly understood and agreed that the Agency shall have no other liability, direct or indirect, to the Redeveloper on account of delay or inability to deliver land to the Redeveloper as called for in this Agreement and the Redeveloper's remedy in the event of default by the Agency in delivery of urban renewal land is hereby specifically limited to rescinding the contract as to such land as provided in this paragraph. The Agency agrees to use its best efforts to avoid delay in delivering property as called for under this Agreement, and to make a good faith attempt to comply with the delivery schedule called for herein. (g) Default by Redeveloper. In the event the Redeveloper fails to acre t deliver of andP ay for one or more parcels of property, as called P J for in this Agreement, the Agency may, at its option, call the entire Agreement in default, serve a proper notice of forfeiture upon the Redeveloper and terminate this Agreement in its entirety except that forfeiture of this Agreement shall not relieve the Redeveloper of the obligations imposed by this Agreement as to property already delivered to the Redeveloper. SECTION 3. PERFORMANCE DEPOSIT. (a) Amount. The Redeveloper will, prior to or simultaneously with the execution of the Agreement by the Agency, deliver to the Agency a performance deposit in the amount of One Hundred Thousand Dollars ($100, 000) in the form of a cashier's check payable to the Agency, to be hereinafter called,"Deposit, " as security for the performance of the obligations of the Redeveloper to be performed prior to the return of the Deposit to the Redeveloper, or its retention by the Agency as liquidated damages in accordance with this Agreement. The Agency will upon execution of this agreement return any previous deposits posted with the original proposal. The Deposit, if cash or cashier's check, shall be deposited in an account of the Agency in any bank or trust company selected by it. (b) Interest. The Agency shall earn interest on the Deposit, and interest payable thereon when received by the Agency shall be paid to the Redeveloper in a manner agreeable to both the Agency and Redeveloper. (c) Retention by Agency. Upon termination of the Agreement as provided in Sections 703 and 704 hereof, the Deposit or the proceeds of the Deposit, if not theretofore returned to the Redeveloper pursuant to paragraph (d) of this Section, including all interest payable on such Deposit or the proceeds thereof after such termination, shall be retained by the Agency as provided in Sections 703 and 704 hereof. (d) Return to Redeveloper. Upon termination of the Agreement as provided in Section 702 hereof (1) or upon termination as to a specific parcel, the Deposit or the appropriate portions thereof shall be returned to the Redeveloper by the Agency as provided in Section 702 hereof. If the Agreement shall not have been theretofore terminated and if no cause for termination then exists, the Agency shall return the pro rata portion of the deposit attributable to each parcel to which the following conditions apply to the Redeveloper upon receipt by the Agency of the following: (i) A copy of the commitment or commitments obtained by the Redeveloper for the mortgage loan or loans to assist in financing the construction of the Improvements (as defined in Section 301 hereof), certified by the Redeveloper to be a true and correct copy or copies thereof; 5 i (ii) Evidence satisfactory to the Agency that the interim mortgage loan to assist in financing the construction of the Improvements has been initially closed; (iii) A copy of the contract between the Redeveloper and the general contractor for the construction of the Improvements, certified by the Redeveloper to be a true and correct copy thereof; and (iv) A copy of the performance bond provided by the general contractor in connection with the aforesaid construction contract which bond shall be in a sum equal to not less than one hundred per cent (100%) of the contract price under said construction contract, certified by the Redeveloper to be a true and correct copy thereof. (v) If the Redeveloper acts as general contractor, the requirements of sub -sections (iii) and (iv) shall be waived as to the parcels on which the Redeveloper so acts. SECTION 4. TIME FOR COMMENCEMENT AND COMPLETION OF IMPROVEMENTS. (a) The construction of the Improvements referred to in Section 301 hereof shall be commenced and completed in accordance with Schedule D hereof. Provided, that if a mortgage securing money loaned to finance the Improvements, or any part thereof, is insured by the Secretary of Housing and Urban Development, then the aforesaid completion time shall not apply, but instead the construction of the Improvements, or any part thereof, shall be completed within the time specified in the applicable Building Loan Agreement approved by the Secretary of Housing and Urban Development. (b) It is agreed and understood that the "Improvements" referred to herein are the same as those structures illustrated on Sheet Number 5, entitled "Site Plan, " submitted by the Redeveloper in his "Offer to Purchase, " as amended and dated and that the same structures will be built by the Redeveloper on the parcels of land offered for sale by the Agency. The information shown on the Site Plan as amended is summarized as follows: 2 64-1 A hotel -motel of approximately 150 units together with ancillary meeting rooms; retail/services in parcel on southeast corner of Block 64. 65-2 Retail Trade/Services/Offices. Four stories. 65-4 Retail Trade/Services/Offices. Two stories. 81-3, 81-4 Retail Trade/Services/Offices. Three stories. 82-1 Retail Trade/Services/Offices. Three stories. 83-1, 84-1 Two-story, enclosed weather -controlled retail area with mall and multi -storied office tower. 93-1, 101-2 Residential Housing/ Offices. 102-1, 102-2 Retail Trade/Services/Offices. 102-3, 102-4 Two-story Motel Restaurant. 103-3 Retail Trade/Services/Offices. Alternate type of improvement --residential housing. SECTION 5. PUBLIC IMPROVEMENTS. Subject to compliance with necessary legal requirements, the Agency agrees to provide the public improvements outlined in Schedule L hereof on the timetable set forth in that schedule. In this connection, the Agency agrees to purchase the South 120 feet more or less of Parcel 83 and certain air rights over the remaining portions of Parcels 83 and 84, all as more particularly set forth in Section 9 of this Agreement entitled "Additional Properly Transactions" and to construct a parking facility for not less than one thousand (1, 000) cars. The Agency and the Redeveloper agree to enter into a separate contract prior to the beginning of construction of said parking facility specifically delineating the rights and responsibilities of each party with respect to the public facilities and private facilities located in Blocks 83 and 84, and also with respect to the facilities in Block 64. 7 In addition to the parking facility on Blocks 83 and 84, the Agency agrees to construct not less than a six hundred (600) car parking facility on Block 64 as called for in Schedule E hereof provided that the following conditions exist: (a) 'That the City has the financial resources available to pay for such a facility and is under no legal disability with respect to such financing or the construction of the facility. The City shall proceed in good faith to plan for the financing of the parking facility and shall take all reasonable steps to insure that the necessary financial resources will be available. The City shall take all reasonable precautions to avoid any legal disability with respect to such financing or the construction of the facility. (b) That the Redeveloper is reasonably on schedule with the improvements called for in this Agreement and, specifically, that the Redeveloper has obtained the necessary financing for the construction of a hotel or equivalent improvement on the balance of Block 64, and the agreed upon improvements on the south half of Block 65 and is prepared for and committed to the actual construction of said improvements. (c) Redevelopment activity, parking demand, mass transit and auto use projections must be taken into consideration before any construction of the Block 64 parking facility has begun. If the Agency is unable to build the parking facility in Block 64 for any of the reasons set forth in sub -paragraphs (a) and (c) above the Redeveloper shall have the option of reselling the Block 64 properties to the Agency for the original purchase price paid by the Redeveloper for Parcel 64-1. SECTION 6. TIME FOR CERTAIN OTHER ACTIONS. (a) Time for Submission of Construction Plans. The time within which the Redeveloper shall submit its Construction Plans" (as defined in Section 301 hereof) to the Agency in any event, pursuant to Section 301 hereof, shall be not later than ninety (90) days from the date set forth in Schedule D hereof as the date agreed upon for the commencement of improvements. (b) Time for Submission of Corrected Construction Plans. Except as provided in paragraph (c) of this Section 6, the time within which the Redeveloper shall submit any new or corrected Construction Plans as provided for in Section 301 hereof shall be not later than thirty (30) days after the date the Redeveloper receives written notice no i from the Agency of the Agency's rejection of the Construction Plans referred to in the latest such notice. (c) Maximum Time for Approved Construction Plans. In any event, the time within which the Redeveloper shall submit Construction Plans which conform to the requirements of Section 301 hereof and are approved by the Agency shall not be later than sixry (60) days after the date the Redeveloper receives written notice from the Agency of the Agency's first rejection of the original Construction Plans submitted to it by the Redeveloper. (d) Time for Agency Action on Change in Construction Plans. The time within which the Agency may reject any change in the Construction Plans, as provided in Section 302 hereof, shall be thirty (30) days after the date of the Agency's receipt of notice of such change. (e) Time for Submission of Evidence of Ec Capital and Mortgage Financing. The time within which the Redeveloper shall submit to the Agency, in any event, evidence as to equity capital and any commitment necessary for mortgage financing on each parcel, as provided in Section 303 hereof, shall be not later than one hundred twenty (120) days, a) after the date of written notice to the Redeveloper of approval of the Construction Plans by the Agency, or, b) if the Construction Plans shall be deemed to have been approved as provided in Section 301 hereof, after the expiration of thirty (30) days following the date of receipt by the Agency of the Construction Plans so deemed approved. (f) if any hardship shall exist in complying with the foregoing provisions of this section, the Redeveloper may petition to the Agency in writing for an extension of time for performance of any part of this section, setting forth in detail the reasons for needing such an extension. SECTION 7. PERIOD OF DURATION OF COVENANT ON USE. The covenant pertaining to the use of the Property, set forth in Section 401 hereof, shall remain in effect from the date of the Deed until October 2, 1994, the period specified or referred to in the Urban Renewal Plan, and shall automatically extend for five year periods thereafter, unless changed by the City Council. SECTION 8. NOTICES AND DEMANDS. A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and E (i) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at Old Capitol Associates Rural Route #!4, Box 279 Iowa City, Iowa 52240 and, (ii) in the case of the Agency, is addressed to or delivered personally to the Agency at City Manager Civic Center Iowa City, Iowa 52240 or at such other address with respect to either such party as that may, from time to time, designate in writing and forward to the other as provided in this Section. SECTION 9. ADDITIONAL PROPERTY TRANSACTIONS. The additional property transactions and exchanges outlined in Schedule F are hereby agreed to by the Agency and the Redeveloper. SECTION 10. SPECIAL CONTINGENCIES. It is understood by the Redeveloper that the Agency is seeking public approval for the issuance of approximately $6, 000, 000. 00 of bonds to finance the construction of project improvements as called for in this Agreement. In the event that legal approval is not obtained, this Agreement shall stand null and void and all deposits paid by the Redeveloper shall be returned, upon written notice by either party to the other. It is also specifically understood that the Agency's agreements herein with respect to the sale and exchange of public property are subject to compliance by the Agency with all applicable State laws and Federal regulations. This agreement is subject to approval of the United States Department of Housing and Urban Development. It is also understood and agreed that this contract is contingent upon a decision being received from the United States District Court for the Southern District of Iowa not to enjoin or prohibit proceeding under this contract in the case of Laitner, et a4. v. DeProsse, Civil No. 74-6-D. 10 If the contingencies outlined in this Section are not satisfied by July 1, 1974, either party may rescind this Agreement by giving written notice to the other. SECTION 11. SCOPE OF AGREEMENT. This Agreement shall be deemed to include the City -University Urban Renewal Plan Project I, Project No. Iowa R-14, as modified and amended; the Offer to Purchase Land submitted by Old Capitol Business Company on October 18, 1973, as amended; and all other land marketing documents and modifications thereto which are by this reference made a part hereof, to the extend that the same are not inconsistent with the terms and provisionsof Part I and II of this Agreement. SECTION 12. MODIFICATIONS TO PART II. The following amendments and modifications are hereby made in the terms, covenants, and conditions forming Part II hereof: (1) Modify Section 101, subsections (b), (c) and (g) by inserting in lieu of the existing language the following language: (b) Reduction of Walls: is changed to read, "Building foundation walls that are needed for support or protection of adjacent structures or sidewalks, or pavement shall not be removed and will be left in place. Building foundation walls, including cross - walls, columns, or piers and walls or foundations or such accessory parts of area -ways, interior or exterior stairwells, chimneys, porches, docks, and entrance steps and platforms, fuel storage supports and coal holes shall be removed to one foot below grade if they are not needed for support or protection of adjacent structures. Sidewalk vaults exposed by removal of foundation walls shall be removed. " (c) Breaking Up Basement Floors: is changed to read, In the areas where basements are to have debris fill, all concrete or brick floors of basements or of area -ways, stairwells or depressed structures, occurring more than 3 feet below final grade need not be removed. However, prior to placing of any fill or debris or other material, basement floors shall be broken through at all low points which would collect water, and not less than 10 square 11 feet of floor at each low point, or not less than 5% of the floor area, whichever is greater, shall be removed in such a manner as to provide drainage. " (g) Filling Materials: is changed to read, "All base- ments or other excavations shall be backfilled using sand, very sandy soil, or other materials approved by the Engineer. Compaction of fills will not be required except as specified by the Engineer. " (2) Section 103 is amended by adding in the third line the following language following the phrase "the property, ... " Not later than the completion date of the improvements as set forth in Schedules E and F hereof and provided that the Agency has legal authority to perform... (3) Section 203 is modified by deleting the phrase "the property" wherever it appears in said section and inserting in lieu thereof the phrase "any parcel". (4) Section 301 is modified as follows: (a) The word "property" is deleted from the second line thereof and the words "any parcel" are inserted in lieu thereof. (b) The phrase "the proposal of the Redeveloper dated October 18, 1973, " is to be inserted in line 4 of said section between the words "plan" and "the' (c) The reference to Paragraph (a), Section 5 of Part I is deleted and the reference changed to Section 6 of Part I hereof. (d) The phrase "property" in line 14 of said section is deleted and the phrase "each parcel" inserted in lieu thereof. (e) The reference to Paragraph (b), Section 5 of Part I hereof in line 29 is deleted and replaced by a reference to Section 6 of Part I hereof. (f) The reference to Paragraph (c), Section 5 of Part I in line 37 should be replaced by a reference to Section 6 of Part I hereof. (g) The reference to "the property" in line 40 is deleted and the phrase "each parcel" inserted in lieu thereof. 12 • • (5) Section 302 is amended by deleting the reference to Paragraph (d), Section 5 of Part I and inserting in lieu thereof a reference to Section 6 of Part 1. (6) Section 303 is amended as follows: (a) Inserting "for each parcel" after the word "plans" in the third line. (b) Deleting "paragraph (e), Section 5 of Part I hereof" and substituting "Section •6 of Part I hereof. " (c) Deleting the period at the end of the last sentence and inserting "on such parcel". (7) Section 304 shall be amended by: (a) Inserting "satisfactory to the Agency" after the word "evidence" in the fourth line. (b) Deleting "the property" in the next to the last line and substituting in lieu thereof "each parcel". (c) This Section shall not apply to property upon which construction is scheduled to begin after March 1, 1976, as set forth in Schedule D. and 11. (8) Section 305 shall be amended as follows: (a) Changing "the deed" to read "each deed", in lines 4 (b) Changing "property" to read "parcel", in lines 7 and 19. (c) Deleting the reference to Section 4 of Part I hereof and substituting in lieu thereof a reference to "Schedule D", in lines 10 and 11. (9) Section 307 shall be read in light of the understanding of the parties that certificates of completion will be issued to the Redeveloper following completion by the Redeveloper of each separate parcel in the project. (10) Section 401 is modified as follows: 13 Not discriminate upon the basis of race, color, reli- gion, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Property or any improvements erected or to be erected thereof, or any part thereof. (c) Insert after subsection 401 (b) the following subsection: All advertising (including signs) for sale and/or rental of the whole or any part of the Property shall include the legend, "An Open Occupancy Building" in type or lettering of easily legible size and design. The word "Project" or "Development" may be substituted for the word "Building" where circumstances require such substitution. (d) Insert after subsection 401 (c) the following: Comply with the regulations issued by the Secretary of Housing and Urban Development set forth in 37 F. R. 22732-3 and all applicable rules and orders issued thereunder which prohibit the use of lead-based paint in residential structures undergoing federally -assisted construction or rehabilitation and require the elimination of lead-based paint hazards. (11) Section 402 is modified by deleting the reference to Section 6 of Part I and substituting a reference to Section 7 of Part 1. (12) Sections 501 (c), 502, 504, 703 (a) (ii), 704 (c) shall all be construed in a fashion consistent with the fact that the Redeveloper is a partnership rather than a corporation. (13) Section 504 shall be modified by inserting "first" before "Deed" where the same appears in the 23rd and 24th lines. (14) Section 601 shall be modified as follows: (a) Deleting "the property" from the fifth and seventh lines and substituting in lieu thereof "any parcel". (b) Inserting "on such parcel" after the word "improvements" on the eighth line. 14 (c) Deleting"purchase price" from the ninth line and sub- stituting in lieu thereof "parcel price". (d) Deleting "the property" from the 12th and 13th lines and substituting in lieu thereof "any parcel". (e) Deleting "the property" from the 17th line and substituting in lieu thereof "a parcel". (15) Section 701 is amended by adding at the end thereof "except as modified by Section 2 of Part I hereof". (16) Section 702 shall be revised to read as follows: "SECTION 702. Termination by Redeveloper Prior to Construction. In the event that (a) the Agency does not tender conveyance of each parcel, or possession thereof, in the manner and condition, and by the take-down date, provided in Schedule C of the Agreement, and any such failure shall not be cured within sixty (60) days after the date of written demand by the Redeveloper; and the Agency shall be unable to demonstrate, to the reasonable satisfaction of the Redeveloper, (1) that the defects, cloud, or other deficiencies in or on title involved, or the part of the property to which it relates, is of such nature that the Redeveloper will not be hampered or delayed in the construction of the improvements by taking title and possession subject to such defects, will through its power of condemnation or otherwise be readily able to secure or eliminate such defects, cloud, or deficiencies subsequent to delivery of title and possession of the property or the remainder thereof and in any event prior to completion of the improvement; or (b) the Redeveloper shall, after preparation of construction plans for any parcel satisfactory to the Agency, furnish evidence satisfactory to the Agency that it has been unable, after and despite diligent effort for a period of sixty (60) days after approval by the Agency of the parcel construction plans, to obtain mortgage financing for the construction of the improvements on any such parcel on a basis and on terms that would generally be considered satisfactory by builders or contractors for improvements 15 of the nature and type provided in such parcel construction plans, and the Redeveloper shall, after having submitted such evidence and if so requested by the Agency, continue to make diligent efforts to obtain such financing for a period of sixty (60) days after such request, but without success, then the Agreement shall, at the option of the Redeveloper, be terminated by written notice thereof to the Agency as to such parcel or part thereof, and the Redeveloper shall be entitled to a return of a pro -rata portion of the deposit and neither the Agency nor the Redeveloper shall have any further rights against_ or liability to the other under the Agreement as to such parcel or part thereof provided that the Redeveloper shall immediately reconvey to parcels involved to the Agency free of all liens and the Agency shall return the purchase price. " (17) Section 703 shall be modified to read as follows: "SECTION 703. Termination by Agency Prior to Conveyance. In the event that (a) prior to the conveyance of any parcel to the Redeveloper and in violation of the Agreement (i) the Redeveloper (or any successor in interest) assigns or attempts to assign the Agreement or any rights therein, or in the property, or (ii) there is any change in the ownership or distribution of the stock of the Redeveloper or with respect to the identity of the parties in control of the Redeveloper or the degree thereof; or (b) the Redeveloper does not submit construction plans for any parcel, as required by the Agreement, or (except as excused under subdivision (b) of Section 702 hereof) evidence that it has the necessary equity capital and mortgage financing, in satisfactory form and in the Agreement therefor; or (c) the Redeveloper does not pay the parcel price for any parcel and takes title to such parcel upon tender of conveyance by the Agency pursuant to the Agreement, and if any default or failure referred to in subdivisions 16 (b) and (c) of this Section 703 shall not be cured within sixty (60) days after the date of written demand by the Agency, then the Agreement, and any rights of the Redeveloper, or any assignee or transferee, in the Agreement, or arising therefrom with respect to the Agency or those parts or parcels of the property not conveyed to the Redeveloper at such time, shall, at the option of the Agency, be terminated by the Agency, in which event, the deposit shall be retained by the Agency as liquidated damages and as its property without any deduction, off -set, or recoupment whatsoever, and neither the Redeveloper (or assignee or transferee) nor the Agency shall have any further rights against or liability to the other under the Agreement as -to -those parcels not conveyed to the Redeveloper at that time, but as to parcels which have been conveyed to the Redeveloper at that time, the Agreement shall remain in full force and effect. In the event that the Agency is unabletotender conveyance or possession of any part thereof in the manner and condition provided in this Agreement, by reason of the Agency being enjoined or prevented from doing so by any order or decision or act of any judicial, legislative or executive body having authority in the premises, then this Agreement may, at the option of the Agency be cancelled as to such parcel not conveyed to the Redeveloper at the time of such cancellation and the Redeveloper shall be entitled to the return of a pro -rata portion of the deposit and the Agency to retention of title not conveyed prior to such cancellation, and neither the City nor the Redeveloper shall have any further rights against or liability to the other under this Agreement as to such parcel or part thereof. " (18) Section 704 shall be modified as follows: "SECTION 704. Revesting Title in Agency Upon Happening of Event Subsequent to Conveyance to Redeveloper. In the event that subsequent to conveyance of any parcel or any part thereof to the Redeveloper and prior to completion of the improvements as certified by the Agency (a) the Redeveloper (or successor in interest) shall default in or violate its obligations with respect to the construction of the improvements on such parcel (including the nature and the dates for the beginning and completion thereof), or shall abandon or substantially suspend construction work, and any such default, violation, abandonment, or suspension shall not be cured, ended, or remedied within three (3) months (six (6) months, if the default is with respect to the date for completion of such improvements) after written demand by the Agency so to do; or 17 w (b) the Redeveloper (or successor in interest) shall fail to pay real estate taxes or assessments on any parcel or any part thereof when due, or shall place thereon any encumbrance or lien unauthorized by the Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to the Agency made for such payment, removal, or discharge, within ninety (90) days after written demand by the Agency so to do; or (c) there is, in violation of the Agreement, any transfer of a parcel or any part thereof, or any change in the ownership or distribution of the stock of the Redeveloper, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and such violation shall not be cured within sixty (60) days after written demand by the Agency to the Redeveloper, then the Agency shall have the right to re-enter and take possession of the parcel and to terminate (and revest in the Agency) the estate conveyed by the deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of each parcel to the Redeveloper shall be made upon, and that each deed shall contain, a condition subsequent to the effect that in the event of any default, failure, violation, or other action or inaction by the Redeveloper specified in sub- divisions (a), (b), and (c) of this Section 704 failure on the part of the Redeveloper to remedy, end, or abrogate such default, failure, violation, or other action or inaction, within the period and in the manner stated in such subdivisions, the Agency at its option may declare a termination in favor of the Agency of the title, and ofallthe rights and interests in and to the parcel conveyed by the deed to the Redeveloper, and that such title and all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the parcel, shall revert to the Agency: Provided, That such condition subsequent and any revesting of title as a result thereof in the Agency (1) shall always be subject to and limited by, and shall not defeat, render invalid, or limit in any way, (i) the lien of any mortgage authorized by the Agreement, and (ii) any rights or interests provided in the Agreement for the protection of the holders of such mortgages; and W. • (2) shall not apply to individual parts or parcels of the property (or, in the case of parts or parcels leased, the leasehold interest) on which the improvements to be constructed thereon have been completed in accordance with the Agreement and for which a certificate of completion is issued therefor as provided in Section 307 hereof. The Agency further shall have the right to retain the deposit as its property without any deduction, off -set or recoupment whatsoever. " (19) Section 803 shall be modified by deleting "the property" from the third line and substituting in lieu thereof "any parcel". (20) Add new Section 805: The Agency agrees, upon request of the Redeveloper, to provide from time to time written statements that the Redeveloper is not in default under this Agreement provided that is the case. IN WITNESS WHEREOF, the Agency has caused this Agreement, consisting of Parts I and II and Schedules A through F, to be duly executed in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk, and the Redeveloper has caused the Agreement to be duly executed in its name and behalf by its principals below. Attest: City Clerk CITY OF IOWA CITY, IOWA BY: 19 Mayor STATE OF IOWA ) ) SS: COUNTY OF JOHNSON) • OLD CAPITOL ASSOCIATES BY: Wilfreda Hieronymus, President, Hieron, Inc., an Iowa Corporation, a partner. BY: Jay C. Oehler, President, Investments Incorporated, an Iowa Corporation, a partner. BY: Ivan Himmel, President, Meadow Link, Incorporated, an Indiana Corporation, a partner. On this day of March, 1974, before me personally came and appeared Wilfreda Hieronymus, Jay C. Oehler and Ivan Himmel to me known and known to me to be the persons who executed the above instrument who being first duly sworn by me depose and state that they are members of the firm of Old Capitol Associates and that they executed the foregoing Agreement in the firm name of Old Capitol Associates and that they had authority to sign the same, and they did acknowledge to me that they executed the same as the act and deed of said firm of Old Capitol Associates for the uses and purposes mentioned therein. IN WITNESS WHEREOF, I have hereunto signed my name and affixed my Notarial Seal the day and year last above written. Notary Public in and for Johnson County, Iowa. My commission expires 20 LEGAL DESCRIPTION (To be supplied at time of execution of contract. ] Total Price $158,912 72,800 174,307 105,000 84,375 74v800 412,720 563,200 114,000 171,000 14,896 15,075 90,750 52,500 121,500 TOTAL 503,605 $2,225,835 PRICE Square Feet Parcel No. Cost Area - 64 -1 $ 3.82 41,600 65-2 10.00 7,280 65-4 6.35 270450 81-3 10.00 10,500 81-4 11.25 7,500 82-1 11.00 6,800 83-1 3.22 128,000 84-1 5.50 102,400 93-1 2.00 57,000 101-2 3.00 57, 000 102-1 7. 32 20035 102-2 7.39 2,040 102-3 5.50 16, 500 102-4 5.00 10,500 103-3 4.50 27,000 Total Price $158,912 72,800 174,307 105,000 84,375 74v800 412,720 563,200 114,000 171,000 14,896 15,075 90,750 52,500 121,500 TOTAL 503,605 $2,225,835 SCHEDULE C LAND DELIVERY SCHEDULE Parcel No. Total Price Take -Down Date 64-1 $158,912 2 years after date of Initiation. 65-2 72,800 2 years It" 65-4 174,307 2 years " It 81-3 105,000 2 years " It " " 81-4 84,375 2 years '' If it " 82-1 74,800 2 years " " " " 83-1 412,720 1 year '' " It " 84-1 563,200 1 year 93-1 114,000 6 months 101-2 171,000 1 year 102-1 14,896 2 years " It 102-2 15,075 2 years It " " 102-3 90,750 1 year " " " " 102-4 52,500 1 year It It it " 103-3 121,500 2 years " " It " Property will be delivered in the following stages: Stage I: Not later than 6 months after date of Initiation. Parcel 93-1 Stage II: Not later than 1 year after date of Initiation. Parcels 83-1, 84-1, 101-2, 102-3, 102-4 Stage III: Not later than 2 years after date of Initiation. Parcels 64-1, 65-2, 65-4, 81-3, 81-4, 82-1, 102-1, 102-2, 103-3 All property shall be conveyed and paid for not later than March 1, 1976. "Date of Initiation" as used in this Schedule shall mean the date written notice is given to the Redeveloper of satisfaction of the conditions set forth in Section 10. SCHEDULE D CONSTRUCTION COMMENCEMENT AND COMPLETION SCHEDULE Parcel No. Commencel Estimated Completionl 64-1 2 years, 6 mos. 4 years, 6 mos. 65-2 5 years, 3 mos. 6 years, 3 mos. 65-4 2 years, 6 mos. 3 years, 6 mos. 81-3 4 years, 3 mos. 5 years, 3 mos. 81-4 4 years, 3 mos. 5 years, 3 mos. 82-1 3 years, 6 mos. 4 years, 6 mos. 83-1 1 year 2 years, 10 mos. 84-1 1 year 2 years, 10 mos. 93-1 6 mos. *5 years 101-2 1 year *5 years 102-1 4 years, 3 mos. 5 years, 3 mos. 102-2 4 years, 3 mos. 5 years, 3 mos. 102-3 1 year 2 years 102-4 1 year 2 years 103-3 5 years, 3 mos. 6 years, 3 mos. *Completion refers to entire residential/ commercial improvement. lAll references to time are agreed to mean after the date of Initiation. "Date of Initiation" as used in this Schedule shall mean the date written notice is given to the Redeveloper of satisfaction of the conditions set forth in Section 10. • ■ SCHEDULE E I. WORK TO BE PERFORMED BY CITY 1974: (Immediately after date of Initiation) 1. City to begin coordinated design engineering for parking facility in Blocks 83 and 84. Not more than one year after date of initiation start construction on ramp on south 120'+ of Block 83 and as column supports become available by developer, continue ramp construction on air -rights over mall. Developer will design, construct and maintain its building in Blocks 83 and 84 so that the city will have adequate column support for its parking decks in the air rights above the developer's building. All such design, construction and maintenance will be at no cost to the city. It is understood and agreed that the developer will construct said column supports to the level of the city's air rights (which shall be the underside of the slab of the city's lower level of parking) and that the city in constructing its lower level parking deck shall so supply a weather tight roof enclosure for the developer's building. Maintenance of this slab and of its weather tight condition shall be the sole responsibility of the city. 2. City to commence coordinated design engineering for all utilities, mall service access, streets, traffic signalization, malls, etc. Engineering and construction drawings to be completed by January 2, 1975. 3. City to commence arrangements for all necessary street closures, property exchanges, sales and vacations. Work to be completed within 6 months of commencement. 4. City to make all necessary arrangements with all public and private utilities to facilitate performance on their part and coordination with the city's work requirements. Work to be completed within 6 months of commencement. 1974: (6 months after Initiation) 1. City to have completed all required engineering and construction within the Capitol R. O. W. Burlington to Court. 2. City to begin Washington Street improvement (complete construction within 12 months thereafter). 1975: • 1. City to construct parking ramp in Block 83 and proceed with construction of parking decks in air rights over Blocks 83 and 84 as fast as coordination with developer's construction will permit. 2. City to complete construction of Capitol Street Mall. 3. City to complete vacation of College Street (Capitol to Clinton) and abandon all utilities by March 1, 1975. 1976: 1. City to complete construction of College Street Mall. 2. City to complete engineering of Burlington/Linn parking ramp. 1977: 1. City to construct Burlington/Linn parking ramp and complete construction of the Clinton Street Mall. 1978: 1. City to construct Dubuque Mall. NOTE: It is understood and agreed that the city will cooperate with the developer, in every way possible, in order to coordinate and complete all of its obligations and under- takings in connection with this project so that the development of the entire project will proceed smoothly and be completed in the shortest possible time. II. VACATION AND DISPOSITION OF STREETS AND ALLEYS Street Disposition 1. College, Clinton to Capitol Vacate, convey to Redeveloper 2. College, Clinton to Linn Vacate, maintain 3. Capitol, Washington to Burlington Vacate, maintain 4. Capitol, Burlington to Court Vacate, convey to Redeveloper 5. Dubuque, Washington to Burlington Vacate, maintain 6. Alleys, Blocks 83 and 84 Vacate, convey to Redeveloper 7. Alley, Block 101 Vacate, convey to Redeveloper Continued: Street 8. Alley, Block 64 9. Madison, Iowa to Burlington 10. Washington, Clinton to Madison 11. Dubuque, Washington to Jefferson Disposition Vacate, convey part to Redeveloper Selective traffic restrictions under consideration Selective traffic restrictions under consideration Selective traffic restrictions under consideration SCHEDULE F ADDITIONAL PROPERTY TRANSACTIONS in order to complete the development program, as indicated in this agreement, certain additional land transactions must take place. These are in addition to the acquisition of the parcels listed on Schedule B hereto and form an integral requirement for the completion of this project. 1. All closures of public rights-of-way as indicated on the development plans, as amended, and Section 103, Part II hereof, in a timely manner so as to assist the developer in the successful execution of the development. to 3. 4. Vacation of the College Street right-of-way between Capitol and Clinton Streets. Concurrent with the transfer of title to Blocks 83-1 and 84-1 the city will exchange the following described property: The northerly 320 feet of the east one-half of Block 101, plus 320 feet of the north -south alley in Block 101, the vacated right-of-way of Capitol Street from the south boundary of Burlington Street to the north boundary of Court Street subject to easement for subsurface utility purposes (said easement to be in a straight north -south line and of a minimum width). For: The air rights over Block 84 and the northernmost 200 feet of Block 83 sufficient to construct two levels of parking. The city agrees to purchase the southernmost 120+ feet of Block 84, at the appraised value ($3. 22 per square foot), from the redeveloper for the construction of a multi-level parking facility. The city will complete excavation, grading and retaining walls for the access road to the redeveloper's mall service area (basement) in the vacated right-of-way of Capitol Street as indicated on sheet #5 Site Plan submitted by the developer with his offer to purchase, as amended. In Block 64 we propose to exchange the 41, 600 square foot parcel which we are acquiring for the following owned property: a. The 28, 800 square foot triangle under the proposed hotel. Schedule F Page 2 b. The surface rights only to the 17, 112 square foot area under the proposed bus terminal. As indicated on the development plans, it is the intention that the city parking ramp (to be constructed in Block 64) will extend over the redeveloper's commercial site, in air rights to be owned by the city. The city further agrees to construct the roadway separating the hotel and parking structure. This exchange shall take place concurrently with the transfer of title to Parcel 64-1. 5. The city will provide air right easements in the amount and to the extent of the revised drawing, without charge, to the developer for construction of any portion of a building which may extend over a public right-of-way as indicated in the development plan. TERMS AND CONDITIONS Part II of Contract for SALE OF LAND FOR PRIVATE REDEVELOPMENT By and Between City of Iowa City, Iowa and j l •� Y"Yy—f4 .•_ y a HUD -6209B (9.69) Section ARTICLE I. PREPARATION OF PROPERTY FOR REDEVELOPMENT Page 101. Work To Be Performed by Agency VII -15 102. Expenses, Income, and Salvage Vii -is 103. Agency's Responsibilities for Certain Other Actions VII -16 104. Waiver of Claims and Joining in Petitions by Redeveloper VII -17 ARTICLE II. RIGHTS OF ACCESS TO PROPERTY 201. Right of Entry for Utility Service VII -17 202. Redeveloper Not To Construct Over Utility Easements VII -17 203. Access to Property VII -17 ARTICLE III. CONSTRUCTION PLANES; CONSSTTRUUCTION OF IMPROVEMENTS, CERTIFICATE OF COMPLETION 301. Plans for Construction of Improvements VII -18 302. Changes in Construction Plans VII -19 303. Evidence of Equity Capital and Mortgage Financing VII -1 9 304. Approvals of Construction Plans and Evidence of Financing VII -19 As Conditions Precedent, to Conveyance 305. Commencement and Completion of Construction of VII -19 Improvements VII -20 306. Progress Reports 307. Certificate of Completion VII -20 • Section C� ARTICLE IV. RESTRICTIONS UPON USE OF PROPERTY 401. Restrictions on Use 402. Covenants; Binding Upon Successors in Interest; Period of Duration 403. Agency and United States Rights To Enforce ARTICLE V. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER 501. Representations As to Redevelopment 502• Prohibition Against Transfer of Shares of Stock; Binding Upon Stockholders Individually 503. Prohibition Against Transfer of Property and Assignment of Agreement 504. Information As to Stockholders ARTICLE VI. MORTGAGE FINANCING; RIGHTS OF MORTGAGEES 601. Limitation Upon Encumbrance of Property 602. Mortgagee Not Obligated To Construct 603. Copy of Notice of Default to Mortgagee 604. Mortgagee's Option To Cure Defaults 605. Agency's Option To Pay Mortgage Debt or Purchase Property 606. Agency's Option To Cure Mortgage Default 607. Mortgage and Holder ARTICLE VII. REMEDIES 701. In General 702. Termination by Redeveloper Prior to Conveyance 703. Termination by Agency Prior to Conveyance ii Page VII -21 VII -21 VII -22 VII -22 VII -23 VII -24 VII -26 VII -26 VII -27 VII -27 VII -27 VII -28 VII -29 VII -29 VII -29 VII -29 VII -30 704. Revesting Title in Agency Upon Happening of Event Subsequent to Conveyance to Redeveloper 705. Resale of Reacquired Property; Disposition of Proceeds 706. Other Rights and Remedies of Agency; No Waiver by Delay 707. Enforced Delay in Performance for Causes Beyond Control of Party 708. Rights and Remedies Cumulative 709. Party in Position of Surety With Respect to Obligations Page VII -31 VII -32 VII -33 VII -33 VII -34 VII -34 ARTICLE VIII. MISCELLANEOUS 801. Conflict of Interests; Agency Representatives Not Individually VII -35 Liable 802. Equal Employment Opportunity VII -35 803. Provisions Not Merged With Deed VII -36 804. Titles of Articles and Sections VII -36 • ARTICLE I. PREPARATION OF PROPERTY FOR REDEVELOPMENT SEC. 101. Work To Be Performed by Agency. The Agency shall, prior to conveyance of the Property and without expense to the Redeveloper, prepare the Property for redevelopment by the Redeveloper in accordance with the Urban Renewal Plan and the Agreement. Such preparation of the Property shall consist of the following (unless the Agency and the Redeveloper hereafter agree in writing that any of such preparation shall not be done, or that it shall be done subsequent to the conveyance of the Property): (a) Demolition and Removal. The demolition and removal to the surface elevation of the adjoining ground of all existing buildings, other structures and improvements on the Property, including the removal of all bricks, lumber, pipes, equipment and other material, and all debris and rubbish resulting from such demolition, except such material and debris as may be used for any filling required by this Section. (b) Reduction of Walls. The reduction of all walls, including foundation walls, to the surface elevation of the adjoining ground. (c) Breaking Up Basement Floors. The breaking up of all basement or cellar floors sufficiently to permit proper drainage. (d) Removal of Paving. The removal by the Agency or by the appropriate public body of all paving (including catch basins, curbs, gutters, drives, and sidewalks) within or on the Property. (e) Removal of Public Utility Lines. The removal or abandonment by the Agency or by the appropriate public body or public utility company of all public utility lines, installations, facilities, and related equipment within or on the Property. (f) Filling and Grading. Such filling, grading, and leveling of the land but not including topsoil or landscaping) as will permit proper drainage and place the Property in a safe, clean, sanitary, and nonhazardous condition. (g) Filling Materials. The filling of all basements or other excavations exposed as a result of the work performed by the Agency pursuant to this Section, with noncombustible materials to a level twelve (12) inches below the surface of the adjoining ground on all sides thereof. SEC. 102. Expenses, Income, and Salvage. All expenses, including current taxes, if any, relating to buildings or other structures demolished or to be demolished in accordance with Section 101 hereof shall be borne by, and all income or salvage received as a result of the demolition of such buildings or structures shall belong to, the Agency. VII -15 SEC. 103. Agency's Responsibilities for Certain Other Actions. The Agency, without expense to the Redeveloper or assessment or claim against the property, in accordance with the Urban Renewal Plan, provide or secure or cause to be provided or secured, the following: (a) Vacation of Streets, Etc. The closing and vacation of all existing streets, alleys, and other public rights-of-way within or abutting on the Property. (b) Replatting, Resubdivision, or Rezoning. The replatting, resub- division, or rezoning of the Property, if necessary for the con- veyance thereof to the Redeveloper. (c) Improvements of Existing Streets. The improvement (by the Agency or by the appropriate public body) by'resurfacing, rebuilding, or new construction, in accordance with the technical specifications, standards, and practices of the City, of the existing streets, alleys, or other public rights-of-way (including cath basins, curbs and gutters, drive and curb cuts, and drives between the property line of the Property and the public rights-of-way) abutting on the Property. (d) Construction and Dedication of New Streets. The construction (by the Agency or by the appropriate public body), in accordance with the technical specifications, standards, and practices of the City, and the dedication of all new streets, alleys, and other public rights-of-way ( including catch basins, curbs, and gutters) abutting on the Property. (e) Installation of Sidewalks. The installation (by the Agency or by The appropriate public body), in accordance with the technical specifications, standards, and practices of the City, of public sidewalks along the frontage of the public streets abutting on the Property or within the rights-of-way lines of such public streets, together with sodding or seeding of any such public area between such sidewalks or the curb lines of such public streets. (f) Street Lighting, Signs, and Fire Hydrants. The installation (by the Agency or by the appropriate public body), in accordance with the technical specifications, standards, and practices by the City, of street lighting, signs, and fire hydrants in connection with all new streets abutting on the Property and to be con- structed pursuant to this Section. (g) Installation of Public Utilities. The installation or relocation (by the Agency or by t e appropriate public body or public utility company) of such sewers, drains, water and gas distribution lines, electric, telephone, and telegraph lines and all other public utility lines, installations, and facilities as VII -16 are necessary to be installed or relocated on or in connection with the Property by reason of the redevelopment contemplated by the Urban Renewal Plan and the development of the Property: Provided, That the Agency shall not be responsible for, nor bear any portion of the cost of, installing the necessary utility connections within the boundaries of the Property between the Improvements to be constructed on the Property by the Redeveloper and the water, sanitary sewer, and storm drain mains or other public utility lines owned by the City or by any public utility company within or without such boundaries, or electric, gas, telephone, or other public utility lines owned by any public utility company within or without such boundaries, and the Redeveloper shall secure any permits required for any such installation without cost or expense to the Agency. SEC. 104. Waiver of Claims and Joining in Petitions by Redevelo er. The Redeveloper hereby waives as the purchaser of the Property under the Agreement and as the owner after the conveyance of the Property provided for in the Agreement) any and all claims to awards of damages, if any, to compensate for the closing, vacation, or change of grade of any street, alley, or other public right-of-way _within or fronting or abutting on, or adjacent to, the Property which, pursuant to subdivision (a) of Section 103 hereof, is to be closed or vacated, or the grade of which is to be changed, and shall upon the request of the Agency subscribe to, and join with, the Agency in any petition or proceeding required for such vacation, dedication, change of grade, and, to the extent necessary, rezoning, and execute any waiver or other document in respect thereof. ARTICLE II. RIGHTS OF ACCESS TO PROPERTY SEC. 201. Right of Entry for Utility Service. The Agency reserves for itself, the City, and any public utility company, as may be appropriate, the unqualified right to enter upon the Property at all reasonable times Por the purpose of reconstructing, maintaining, repairing, or servicing the public utilities located within the Property boundary lines and provided for in the easements described or referred to in Paragraph (a), Section 2 of Part I hereof. SEC. 202. Redeveloper Not To Construct Over Utility Easements. The Redeveloper shall not construct any building or other structure or improvement on, over, or within the boundary lines of any easement for public utilities described or referred to in Paragraph (a), Section 2 of Part I hereof, unless such construction is provided for in such easement or has been approved by the City. If approval for such construction is requested by the Redeveloper, the Agency shall use its best efforts to assure that such approval shall not be withheld unreasonably. SEC. 203. Access to Property. Prior to the conveyance of the Property by the Agency to the Redeveloper, the Agency shall permit representatives of the Redeveloper to have access to any part of the Property as to which the Agency holds title, at all reasonable times for the purpose of obtaining data VII -17 and making various tests concerning the Property necessary to carry out the Agreement. After the conveyance of the Property by the Agency to the Redeveloper, the Redeveloper shall permit the representatives of the Agency, the City., and the United States of America access to the Property at all reasonable times which any of them deems necessary for the purposes of the Agreement, the Cooperation Agreement, or the Contract for Loan and Capital Grant, including, but not limited to, inspection of all work being performed in connection with the construction of the Improvements. No compensation shall be payable nor shall any charge be made in any form by any party for the access provided for in this Section. ARTICLE III. CONSTRUCTION PLANS; CONSTRUCTION OF IMPROVE"d+SENTS; CERTIFICATE OF COMPLETION SEC. 301. Plans for Construction of Improvements. Plans and specifications with respect to the redevelopment of the Property and the construction of improvements thereon shall be in conformity with the Urban Renewal Plan, the Agreement, and all applicable State and local laws and regulations. As promptly as possible after the date of the Agreement, and, in any event, no later than the time specified therefor in Paragraph (a), Section 5 of Part I hereof, the Redeveloper shall submit to the Agency, for approval by the Agency, plans, drawings, specifications, and related documents, and the proposed construction schedule (which plans, drawings, specifications, related documents, and progress schedule, together with any and all changes therein that may thereafter be made and submitted to the Agency as herein provided, are, except as otherwise clearly indicated by the context, hereinafter collectively called "Construction Plans") with respect to the improvements to be constructed by the Redeveloper on the Property, in sufficient completeness and detail to show that such improvements and construction thereof will be in accordance with the provisions of the Urban Renewal Plan and the Agreement. The Agency shall, if the Construction Plans originally submitted conform to the provisions of the Urban Renewal Plan and the Agreement, approve in writing such Construction Plans and no further filing by the Redeveloper or approval by the Agency thereof shall be required except with respect to any material change. Such Construction Plans shall, in any event, be deemed approved unless rejection thereof in writing by the Agency, in whole or in part, setting forth in detail the reasons therefor, shall be made within thirty (30) days after the date of their receipt by the Agency. If the Agency so rejects the Construction Plans in whole or in part as not being in conformity with the Urban Renewal Plan or the Agreement, the Redeveloper shall submit new or corrected Construction Plans which are in conformity with the Urban Renewal Plan and the Agreement, within the time specified therefor in Paragraph (b), Section 5 of Part I hereof, after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection, and resubmission of corrected Construction Plans hereinabove provided with respect to the original Construction Plans shall continue to apply until the Construction Plans have been approved by the Agency: Provided, That in any event the Redeveloper shall submit Construction Plans which are in conformity with the requirements of the Urban Renewal Plan and the Agreement, as determined by the Agency, no later than the time specified therefor in Paragraph (c), Section 5 of Part I VII -18 hereof. All work with respect to.the improvements to be constructed or provided by the Redeveloper on the Property shall be in conformity with the Construction Plans as approved by the Agency. The term "Improvements"as , used in this Agreement, shall be deemed to have reference to the improvements as provided and specified in the Construction Plans as so approved. SEC. 302. Changes in Construction Plans. If the Redeveloper desires to make any change in the Construction Plans after their approval by the Agency, the Redeveloper shall submit the proposed change to the Agency for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of Section 301 hereof with respect to such previously approved Construction Plans, the Agency shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Agency unless rejection thereof, in whole or in part, by written notice thereof by the Agency to the Redeveloper, setting forth in detail the reasons therefor, shall be made within the period specified therefor in Paragraph (d), Section 5 of Part I hereof. S8C. 303. Evidence of Equity Capital and Mortgage Financing. As promptly as possible after approval b the Plans, and, in any event, no later than the time MLICyspecified of the otherefor oin Paragraph (e), Section 5 of Part I hereof, the Redeveloper shall submit to the Agency evidence satisfactory to the Agency that the Redeveloper has the equity capital and commitments for mortgage financing necessary for the construction of the Improvements. SEC. 304. provals of Construction Plans and Evidence of FinancinE As Conditions Precedent to Conve ance. The submission of Construction Plans and their approval by -the ncy Section and the submission of evidence of equityscapitaleandncommitmentslforreof, mortgage financing as provided in Section 303 hereof, are conditions precedent to the obligation of the Agency to convey the Property to the Redeveloper. SEC. 305. Commencement and Completion of Construction of Improvements. TRe Redeveloper agrees for itself, its successors and , assigns, and every successor in interest to the Property, or an thereof, and the Deed shall contain covenants on the part of the part Redeveloper for itself and such successors and assigns, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Improvements thereon, and that such construction shall in any event be begun within the period specified in Section 4 of Part I hereof and be completed within the period specified in such Section 4. It is intended and agreed, and the Deed shall so expressly provide, that such agreements and covenants shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement Itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the community and the Agency and enforceable by the Agency against the`Redeveloper and its successors and assigns to or of the Property or any part thereof or any interest therein. VII -19 SEC. 306. Progress Reports. Subsequent to conveyance of the Property, or any part thereof, to the Redeveloper, and until construction of the Improvements has been completed., the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Agency, as to the actual progress of the Redeveloper with respect to such construction. SEC. 307. Certificate of Completion. (a) Promptly after completion of the Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct the Improvements (including the dates for beginning and completion thereof), the Agency will furnish the Redeveloper with an appropriate instrument so certifying. Such certification by the Agency shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Improvements and the dates for the beginning and completion thereof: Provided, That if there is upon the Property a mortgage insured, or held or owned, by the Federal Housing Administration and the Federal Housing Administration shall have determined that all buildings constituting a part of the Improvements and covered by such mortgage are, in fact, substantially completed in accordance with the Construction Plans and are ready for occupancy, then, in such event, the Agency and the Redeveloper shall accept the determination of the Federal Housing Administration as to such completion of the construction of the Improvements in accordance with the Construction Plans, and, if the other agreements and covenants in the Agreement obligating the Redeveloper in respect of the construction and completion of the Improvements have been fully satisfied, the Agency shall forthwith issue its certification provided for in this Section. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the Improvements, or any part thereof. (b) With respect to such individual parts or parcels of the Property which, if so provided in Part I hereof, the Redeveloper may convey or lease as the Improvements to be constructed thereon are completed, the Agency will also, upon proper completion of the Improvements relating to any such part or parcel, certify to the Redeveloper that such Improvements have been made in accordance_ with the provisions of the Agreement. Such certification shall mean and provide, and the Deed shall so state, (1) that any party purchasing or leasing such individual part or parcel pursuant to the authorization herein contained shall not (because of such purchase or lease) incur any obligation with respect to the construction of the Improvements relating to such part or parcel or to any other part or parcel of the Property; and (2) that neither the Agency nor any other party shall thereafter have or be entitled to exercise with respect to any such individual part or parcel so sold (or, in the case of lease, with respect to the leasehold interest) any rights or remedies or controls that it may VII -20 otherwise have or be entitled to exercise with respect to the Property as a result of A default in or breach of any provisions of the Agreement or the Deed by the Redeveloper or any successor in interest or assign, (i) such default or breach be b the unless in interest to or assignY Purchaser or lessee, or any successor of such individual part or parcel with respect to the covenants contained and referred to in Section 401 hereof, and (ii) the right, remedy, or control relates to such default or breach. (c) Each certification provided for in this Section 307 shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property, including the Deed. If the Agency shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Agency shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Agency, for the Redeveloper to take or perform in order to obtain such certification. ARTICLE IV. RESTRICTIONS UPON USE OF PROPERTY SEC. 401. Restrictions on Use. The Redeveloper agrees for itself, and its successors an id ssa ssa� ns, and every successor in interest to the Property, or any part thereof, and the Deed shall contain covenants on the part of the Redeveloper for itself, and such successors and assigns, that the Redeveloper, and such successors and assigns, shall; (a) Devote the Property to, and only to and in accordance with, the uses specified in the Urban Renewal Plan; and (b) Not discriminate upon the basis of race, color, creed, or national origin in the sale, lease, or rental or in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof. SEC. 402. Covenants. Binding Upon Successors in Interest; Period of Duration. It is intended and agreed, and the Deed shall so expressly provide, that the agreements and covenants provided in Section 401 hereof shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor -)f, and enforceable by, the Agency, its successors and assigns, the City and any successor in interest to the Property, or any part thereof, and the owner of any other land (or of any interest in such land) in the Project Area which is subject to the land use requirements and restrictions of the Urban Renewal Plan, and the United VII -21 States (in the case ofthecovenant provided in subdivision (b) of Section 401 hereof), against the Redeveloper, its successors and assigns and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. It is further intended and agreed that the agreement and covenant provided in subdivision (a) of Section 401 hereof shall remain in effect for the period of time, or until the date, specified or referred to in Section 6 of Part I hereof (at which time such agreement and covenant shall terminate) and that the agreements and covenants provided in subdivision (b) of Section 401 hereof shall remain in effect without limitation as to time: Provided, That such agreements and covenants shall be binding on the Redeveloper-itselfy each successor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an interest in, or possession or occupancy of, the Property or part thereof. The terms "uses specified in the Urban Renewal Plan" and "land use" referring to provisions of the Urban Renewal Plan. or similar language, in the Agreement shall include the land and all building, housing, and other requirements or restrictions of the Urban Renewal Plan pertaining to such land. SEC. 403. Agency and United States Rights To Enforce. In amplification, and not in restriction of, the provisions of the preceding Section, it is intended and agreed that the Agency and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Section 401 hereof, and the United States shall be deemed a beneficiary of the covenant provided in subdivision (b) of Section 401 hereof, both for and in their or its own right and also for the purposes of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall (and the Deed shall so state) run in favor of the Agency and the United States, for the entire period during which such agreements and covenants shall be in force and effect, without regard to whether the Agency or the United States has at any time been, remains, or is an owner of any land or interest therein to or in favor of which such agreements and covenants relate. The Agency shall have the right, in the event of any breach of any such agreement or covenant, and the United States shall have the right in the event of any breach of the covenant provided in subdivision (b) of Section 401 hereof, to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled. ARTICLE V. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER SEC. 501. Representations As to Redevelopment. The Redeveloper represents and agrees that its purchase of the Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the VII -22 • purpose of -redevelopment of the Property and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the importance of the redevelopment of the Property to the general welfare of the community; (b) the substantial financing and other public aids that have been made available by law and by the Federal and local Governments for the purposeofmaking such redevelopment possible; and (c) the fact that a transfer of the stock in the Redeveloper or of a substantial part thereof, or any other act or transaction involving or resulting in a significant change in the ownership or distribution of such stock or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, is for practical purposes a transfer or disposition of the Property then owned by the Redeveloper, the qualifications and identity of the Redeveloper, and its stockholders, are of particular concern to the community and the Agency. The Redeveloper further recognizes that it is because of such qualifications and identity that the Agency is entering into the Agreement with the Redeveloper, and, in so doing, is further willing to accept and rely on the obligations of the Redeveloper for the faithful performance of all undertakings and covenants hereby by it to be performed without requiring in addition a surety bond or similar undertaking for such performance of all undertakings and covenants in the Agreement. SEC. 502. Prohibition Against Transfer of Shares of Stock; Binding Upon Stockholders Individually. For the foregoing reasons, the Redeveloper represents and agrees for itself, its stockholders, and any successor in interest of itself and its stockholders, respectively, that: Prior to completion of the Improvements as certified by the Agency, and without the prior written approval of the Agency, (a) there shall be no transfer by any party owning 10 percent or more of the stock in the Redeveloper (which term shell be deemed for the purposes of this and related provisions to include successors in interest of such stock or any part thereof or interest therein), (b) nor shall any such owner suffer any such transfer to be made, (c) nor shall there be or be suffered to be by the Redeveloper, or by any owner of 10 percent or more of the stock therein, any other similarly significant change in the ownership of such stock or in the relative distribution thereof, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, by any other method or means, whether by increased capitalization, merger with another corporation, corporate or other amendments, issuance of additional or new stock or classification of stock, or otherwise. With respect to this provision, the Redeveloper and the parties signing the Agreement on behalf of the Redeveloper represent that they have the authority of all of its existing stockholders to agree to this provision on their behalf and to bind them with respect thereto. VII -23 • 503. Prohibition ainst Transfer of Property and Aasignmen reement. Also, ror the foregoing reasons the Redeveloper represents agrees for itself, and its successors and assigns, that; (a) Except only t of (1) by way of security for, and only for, (i) the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to making the Improvements under the Agreement, and (ii) any other Purpose authorized by the Agreement, and (2) as to any individual parts or parcels of the Property on which the Improvements to be constructed thereon have been completed, and which, by the terms of the Agreement, the Redeveloper is authorized to convey or lease as such Improvements are completed, the Redeveloper (except as so authorized) has not made or created, and that it will not, prior to the proper completion of the Improvements as certified by the Agency, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Property, or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the Agency; Provided, That, prior to the issuance by the Agency of the certificate provided for in Section 307 hereof as to completion of construction of the Improvements, the Redeveloper may enter into any agreement to sell, lease, or otherwise transfer, after the issuance of such certificate, the Property or any part thereof or interest therein, which agreement shall not provide for payment of or on account of the purchase price or rent for the Property, or the part thereof or the interest therein to be so transferred, prior to the issuance of such certificate. (b) The Agency shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such approval that; (1) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the Agency, necessary and adequate to fulfill the obligations undertaken in the Agreement by the Redeveloper (or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part). (2) Any proposed transferee, by instrument in writing satisfactory to the Agency and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the Agency, have expressly assu,.ied all of the obligations of the Redeveloper VII -24 under theAgreementand agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part): Provided, That the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall, whatever the reason, not have assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the Agency) relieve or except such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the Agency of or with respect to any rights or remedies or controls with respect to the Property or the construction of the Improvements; it being the intent of this, together with other provisions of the Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Agency of or with respect to any rights or remedies or controls provided in or resulting from the Agreement with respect to the Property and the construction of the Improvements that the Agency would have had, had there been no such transfer or change. (3) There shall be submitted to the Agency for review all instruments and other legal documents involved in effecting transfer; and if approved by the Agency, its approval shall be indicated to the Redeveloper in writing. (4) The consideration payable for the transfer by the transferee or on its behalf shall not exceed an amount representing the actual cost (including carrying charges) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the Improvements, if any, theretofore made thereon by it; it being the intent of this provision to preclude assignment of the Agreement or transfer of the Property (or any parts thereof other than those referred to in subdivision (2), Paragraph (a) of this Section 503)for profit prior to the completion of the Improvements and to provide that in the event any such assignment or transfer is made (and is not canceled), the Agency shall be entitled to increase the Purchase Price to the Redeveloper by the amount that the consideration payable for the assignment or transfer is in excess of the amount that may be authorized pursuant to this subdivision (4), and such consideration shall, to the extent it is in excess of the amount so authorized, belong to and forthwith be paid to the Agency. VIi-25 (5) The Redeveloper and its transferee, shall comply with such other conditions as 'the Agency may find desirable in order to achieve and safeguard the purposes of the Urban Renewal Act and the Urban 'Renewal Plan. Provided, That in the absence of specific written agreement by the Agency to the contrary, no such transfer or approval by the Agency thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by the Agreement or otherwise with respect to the construction of the Improvements, from any of its obligations with respect thereto. SEC. 504. Information As to Stockholders. In order to assist in the effectuation of the purposes of this Article V and the statuto generally, the Redeveloper agrees that duringthe en ex objectives of the Agreement and completion of the Improementseasocertified byethejon Agency, (a) the Redeveloper will promptly notify the Agency of any and all changes whatsoever in the ownership of stock, legal or beneficial, or of any other act or transaction involving or resulting in any change in the ownership of such stock or in the relative distribution thereof, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, of which it or any of its officers have been notified or otherwise have knowledge or information; and (b) the Redeveloper shall, at such time or times as the Agency may request, furnish the Agency with a complete statement, subscribed and sworn to by the President or other executive officer of the Redeveloper, setting forth all of the stockholders of the Redeveloper and the extent of their respective holdings, and in the event any other parties have a beneficial interest in such stock their names and the extent of such interest, all as determined or indicated by the records of the Redeveloper, by specific inquiry made by any such officer, of all parties who on the basis of such records own 10 percent or more of the stock in the Redeveloper, and by such other knowledge or information as such officer shall have. Such lists, data, and information shall in any event be furnished the Agency immediately prior to the delivery of the Deed to the Redeveloper and as a condition precedent thereto, and annually thereafter on the anniversary of the date of the Deed until the issuance of a certificate of completion for all the Property. ARTICLE VI. MORTGAGE FINANCING; RIGHTS OF MORTGAGEES SEC. 601. Limitation Upon Encumbrance of Property. Prior to the completion of the Improvements, as certified by the Agency, neither the Redeveloper nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the Property, except for the purposes of obtaining (a) funds only to the extent necessary for making the Improvements and (b) such additional funds, if any, in an amount not to exceed the Purchase Price paid by the Redeveloper to the Agency. The Redeveloper (or successor in interest) shall notify the Agency in advance of any financing, secured by mortgage or other VII -26 0 similar lien instrument, it proposes to enter into with respect to the Property, or any part thereof, and in any event it shall promptly notify the Agency of any encumbrance or lien that has been created on or attached to the Property, whether by voluntary act of the Redeveloper or otherwise. For the purposes of such mortgage financing as may be made pursuant to the Agreement, the Property may, at the option of the Redeveloper (or successor in interest), be divided into several parts or parcels, provided that such subdivision, in the opinion of the Agency, is not inconsistent with the purposes of the Urban Renewal Plan and the Agreement and is approved in writing by the Agency. SEC. 602. Mortgagee Not Obligated To Construct. Notwithstanding any of the provisions of the Agreement, including but not limited to those which are or are intended to be covenants running with the land, the holder of any mortgage authorized by the Agreement (including any such holder who obtains title to the Property or any part thereof as a result of foreclosure proceedings, or action in lieu thereof, but not including (a) any other party who thereafter obtains title to the Property or such part from or through such holder or (b) any other purchaser at foreclosure sale other than the holder of the mortgage itself) shall in no wise be obligated by the provisions of the Agreement to construct or complete the Improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in the Deed be construed to so obligate such holder: Provided, That nothing in this Section or any other Section or provision of the Agreement shall be deemed or construed to permit or authorize any such holder to devote the Property or any part thereof to any uses, or to construct any improvements thereon, other than those uses or improvements provided or permitted in the Urban Renewal Plan and in the Agreement. SEC. 603. Copy of Notice of Default to Mortgagee. Whenever the Agency shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations or covenants under the Agreement, the Agency shall at the same time forward a copy of such notice or demand to each holder of any mortgage authorized by the Agreement at the last address of such holder shown in the records of the Agency. SEC. 604. Mortgagee's Option To Cure Defaults. After any breach or default referred to in S,:ction b03 hereof, each such holder shall (insofar as the rights of the Agency are concerned) have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Property covered by its mortgage) and to add the cost thereof to the mortgage debt and the lien of its mortgage: Provided, That if the breach or default is with respect to construction of the Improvements, nothing contained in this Section or any other Section of the Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Improvements (beyond the extent necessary to conserve or protect Improvements or construction already made) without first having expressly assumed the obligation to the Agency, by written agreement satisfactory to the Agency, to complete, in the manner provided in the Agreement, the Improvements on VII -27 the Property or the 'part thereof to which the lien or title of such holder relates. Any such holder who shall properly complete the Improvements relating to the Property or applicable part thereof shall be entitled, upon written request made to the Agency, to a certification or certifications by the Agency to such effect in the manner provided in Section 307 of the Agreement, and any such certification shall, if so requested by such holder, mean and provide that any remedies or rights with respect to recapture of or reversion or revesting of title to the Property that the Agency shall have or be entitled to because of failure of the Redeveloper or any successor in interest to the Property, or any part thereof, to cure or remedy any default with respect to the construction of the Improvements on other parts or parcels of the Property, or because of any other default in or breach of the Agreement by the,Redeveloper or such successor, shall not apply to the part or parcel of the Property to which such certification relates. SEC. 605. Agency's Option To Pay Mort ga a Debt or Purchase Pro erLy. In any case, where, subsequent to default or breach by the Redeveloper or successor in interest) under the Agreement, the holder of any mortgage on the Property or part thereof (a) has, but does not exercise, the option to construct or complete the Improvements relating to the Property or part thereof covered by its mortgage or to which it has obtained title, and such failure continues for a period of sixty (60) days after the holder has been notified or informed of the default or breach; or (b) undertakes construction or completion of the Improvements but does not complete such construction within the period as agreed upon by the Agency and such holder (which period shall in any event be at least as long as the period prescribed for such construction or completion in the Agreement), and such default shall not have been cured within sixty (60) days after written demand by the Agency so to do, the Agency shall (and every mortgage instrument made prior to completion of the Improvements with respect to the Property by the Redeveloper or successor in interest shall so provide) have the option of paying to the holder the amount of the mortgage debt and securing an assignment of the mortgage and the debt secured thereby, or, in the event ownership of the Property (or part thereof) has vested in such holder by way of foreclosure or action in lieu thereof, the Agency shall be entitled, at its option, to a conveyance to it of the Property or part thereof (as the case may be) upon payment to such holder of an amount equal to the sum of: (i) the mortgage debt at the time of foreclosure or action in lieu thereof (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); (ii) all expenses with respect to the foreclosure; (iii) the net expense, if any (exclusive of general overhead), incurred by such holder in and as a direct result of the subsequent management of the Property; (iv) the costs of any Improvements made by such holder; and (v) an amount equivalent to the interest that would have accrued on the VII -28 aggregate of such amounts had all such amounts become part of the mortgage debt and such debt had continued in existence. SEC. 606. Agency's Option To Cure Mortgage Default. In the event of a default or breach prior to the completion of the Improvements by the Redeveloper, or any successor in interest, in or of any of its obligations under, and to the holder of, any mortgage or other instrument creating an encumbrance or lien upon the Property or part thereof, the Agency may at its option cure such default or breach, in which case the Agency shall be entitled, in addition to and without limitation upon any other rights or remedies to which it shall be entitled by the Agreement, operation of law, or otherwise, to reimbursement from the Redeveloper or successor in interest of all costs and expenses incurred by the Agency in curing such default or breach and to a lien upon the Property (or the part thereof to which the mortgage, encumbrance, or lien relates) for such reimbursement: Provided, That any such lien shall be subject always to the lien of (including any lien contemplated, because of advances yet to be made, by) any then existing mortgages on the Property authorized by the Agreement. SEC. 607. Mortgage and Holder. For the purposes of the Agreement: The term "mortgage shall include a deed of trust or other instrument creating an encumbrance or lien upon the Property, or any part thereof, as security for a loan. The term "holder" in reference to a mortgage shall include any insurer or guarantor of any obligation or condition secured by such mortgage or deed of trust, including, but not limited to, the Federal Housing Commissioner, the Administrator of Veterans Affairs, and any successor in office of either such official. ARTICLE VII. REMEDIES SEC. 701. In General. Except as otherwise provided in the Agreement, in the event of any default in or breach of the Agreement, or any of its terms or conditions, by either party hereto, or any successor to such party, such party (or successor) shall, upon written notice from the other, proceed immediately to cure or remedy such default or breach, and, in any event, within sixty (60) days after receipt of such notice. In case such action is not taken or not diligently pursued, or the default or breach shall not be cured or remedied within a reasonable time, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default or breach of its obligations. SEC. 702. Termination by Redeveloper Prior to Conveyance. In the event that (a) the Agency does not tender conveyance of the Property, or possession thereof, in the manner and condition, and by the date, provided in the Agreement, and any such failure shall not VII -29 be cured within thirty (30) days after the date of written demand by the Redeveloper; or (b) the Redeveloper shall, after preparation of Construction Plans satisfactory to the Agency, furnish evidence satisfactory to the Agency that it has been unable, after and despite diligent effort for a period of sixty (60) days after approval by the Agency of the Construction Plans, to obtain mortgage financing for the construction of the Improvements on a basis and on terms that would generally be considered satisfactory by builders or contractors for improvements of the nature and type provided in such Construction Plans, and the Redeveloper shall, after having submitted such evidence and if so requested by the Agency, continue to make diligent efforts to obtain such financing for a period of sixty (60) days after such request, but without success, then the A6reement shall, at the option of the Redeveloper, be terminated by written notice thereof to the Agency, and, except with respect to the return of the Deposit as provided in Paragraph (e), Section 3 of Part I hereof, neither the Agency nor the Redeveloper shall have any further rights against or liability to the other under the Agreement. that SEC. 703. Termination by Agency Prior to Conveyance. In the event (a) prior to conveyance of the Property to the Redeveloper and in violation of the Agreement (i) the Redeveloper (or any successor in interest) assigns or attempts to assign the Agreement or any rights therein, or in the Property, or (ii) there is any change in the ownership or distribution of the stock of the Redeveloper or with respect to the identity of the parties in control of the Redeveloper or the degree thereof; or (b) the Redeveloper does not submit Construction Plans, as required by the Agreement, or (except as excused under subdivision (b) of Section 702 hereof) evidence that it has the necessary equity capital and mortgage financing, in satisfactory form and in the manner and by the dates respectively provided in the Agreement therefor; or (c) the Redeveloper does not pay the Purchase Price and take title to the Property upon tender of conveyance by the Agency pursuant to the Agreement, and if any default or failure referred to in subdivisions (b) and (c) of this Section 703 shall not be cured within thirty (30) days after the date of written demand by the Agency, - VII -30 • then the Agreement, and any rights of the Redeveloper, or any assignee or transferee, in the Agreement, or arising therefrom with respect to the Agency or the Property, shall, at the option of the Agency, be terminated by the Agency, in which event, as provided in Paragraph (d), Section 3 of Part I hereof, the Deposit shall be retained by the Agency as liquidated damages and as its property without any deduction, offset, or recoupment whatsoever, and neither the Redeveloper (or assignee or transferee) nor the Agency shall have any further rights against or liability to the other under the Agreement. SEC. 704. Revesting Title in Agency Upon Happening of Event Subsequent to Conveyance to Redeveloper. In the event that subsequent to conveyance of the Property or any part thereof to the Redeveloper and prior to completion of the Improvements as certified by the Agency (a) the Redeveloper (or successor in interest) shall default in or violate its obligations with respect to the construction of the Improvements (including the nature and the dates for the beginning and completion thereof), or shall abandon or substantially suspend construction work, and any such default, violation, abandonment, or suspension shall not be cured, ended, or remedied within three (3) months (six (6) months, if the default is with respect to the date for completion of the Improvements) after written demand by the Agency so to do; or (b) the Redeveloper (or successor in interest) shall fail to pay real estate taxes or assessments on the Property or any part thereof when due, or shall place thereon any encumbrance or lien unauthorized by the Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanics' lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to the Agency made for such payment, removal, or discharge, within ninety (90) days after written demand by the Agency so to do; or (c) there is, in violation of the Agreement, any transfer of the Property or any part thereof, or any change in the ownership or distribution of the stock of the Redeveloper, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and such violation shall not be cured within sixty (60) days after written demand by the Agency to the Redeveloper, then the Agency shall have the right to re-enter and take possession of the Property and to terminate (and revest in the Agency) the estate conveyed by the Deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Redeveloper shall be made upon, and that the Deed shall contain, a condition subsequent to the effect that in the event of any default, failure, violation, or other action or inaction by the Redeveloper specified in subdivisions (a), (b), and (c) of this Section 704, failure on the part of VII -31 • the Redeveloper to remedy, end, or abrogate such default, failure, violation, or other action or inaction, within the period and in the manner stated in such subdivisions, the Agency at its option may declare a termination in favor of the Agency of the title, and of all the rights and interests in and to the Property conveyed by the Deed to the Redeveloper, and that such title and all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the Property, shall revert to the Agency: Provided, That such condition subsequent and any revesting of title as a result thereof in the Agency (1) shall always be subject to and limited by, and shall not defeat, render invalid, or limit in any way, (i) the lien of any mortgage authorized by the Agreement, and (ii) any rights or interests provided in the Agreement for the protection of the holders of such mortgages; and (2) shall not apply to individual parts or parcels of the Property (or, in the case of parts or parcels leased, the leasehold interest) on which the Improvements to be constructed thereon have been completed in accordance with the Agreement and for which a certificate of completion is issued therefor as provided in Section 307 hereof. In addition to, and without in any way limiting the Agency's right to reen- try as provided for in the preceding sentence, the Agency shall have the right to retain the Deposit, as provided in Paragraph (d), Section 3 of Part I hereof, without any deduction, offset or recoupment whatsoever, in the event of a default, violation or failure of the Redeveloper as speci- fied in the preceding sentence. SEC. 705. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Agency of title to the Property or any part thereof as provided in Section 704, the Agency shall, pursuant to its responsibilities under State law, use its best efforts to resell the Property or part thereof (subject to such mortgage liens and leasehold interests as in Section 704 set forth and provided) as soon and in such manner as the Agency shall find feasible and consistent with the objectives of such law and of the Urban Renewal Plan to a qualified and responsible party or parti.:s (as determined by the Agency) who will assume the obligation of making or completing the Improvements or such other improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified for such Property or part thereof in the Urban R newal Plan. Upon such resale of the Property, the proceeds thereof shall be applied: (a) First, to reimburse the Agency, on its own behalf or on behalf of the City, for all costs and expenses incurred by the Agency, including but not limited to salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Agency from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charges during the VII -32 i period of ownership thereof by the Agency, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the City assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Agency or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Redeveloper, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Agency by the Redeveloper and its successor or transferee; and (b) Second, to reimburse the Redeveloper, its successor or transferee, up to the amount equal to (1) the sum of the purchase price paid by it for the Property (or allocable to the part thereof) and the cash actually invested by it in making any of the Improvements on the Property or part thereof, less (2) any gains or income withdrawn or made by it from the Agreement or the Property. Any balance remaining after such reimbursements shall be retained by the Agency as its property. SEC. 706. Other Rights and Remedies of Agency; No Waiver by Delay. The Agency shall have the right to institute such actions or proceedings as it may deem desirable for effectuating the purposes of this Article VII, including also the right to execute and record or file among the public land records in the office in which the Deed is recorded a written declaration of the termination of all the right, title, and interest of the Redeveloper, and (except for such individual parts or parcels upon which construction of that part of the Improvements required to be constructed thereon has been completed, in accordance with the Agreement, and for which a certificate of completion as provided in Section 307 hereof is to be delivered, and subject to such mortgage liens and leasehold interests as provided in Section 704 hereof) its successors in interest and assigns, in the Property, and the revesting of title thereto in the Agency: Provided, That any delay by the Agency in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Article VII shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that the Agency should not be constrained (so as to avoid the risk of being deprived of or limited in the exercise of the remedy provided in this Section because of concepts of waiver, laches, or otherwise) to exercise such remedy at a time when it may still hope otherwise to resolve the problems created by the default involved); nor shall any waiver in fact made by the Agency with respect to any specific default by the Redeveloper under this Section be considered or treated as a waiver of the rights of the Agency VII -33 with respect to any other defaults by the Redeveloper under this Section or with respect to the particular default except to the extent specifically waived in writing. SEC. 707. Enforced Delay in Performance for Causes Beyond Control of Party. For the purposes of any of the provisions of the Agreement, neither the Agency nor the Redeveloper, as the case may be, nor any successor in interest, shall be considered in breach of, or default in, its obligations with respect to the preparation of the Property for redevelopment, or the beginning and completion of construction of the Improvements, or progress in respect thereto, in the event of enforced delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not restricted to, acts of God, acts of the public enemy, acts of the Federal Government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight, embargoes, and unusually severe weather or delays of subcontractors due to such causes; it being the purpose and intent of this provision that in the event of the occurrence of any such enforced delay, the time or times for performance of the obligations of the Agency with respect to the preparation of the Property for redevelopment or of the Redeveloper with respect to construction of the Improvements, as the case may be, shall be extended for the period of the enforced delay as determined by the Agency: Provided, That the party seeking the benefit of the provisions of this Section shall, within ten (10) days after the beginning of any such enforced delay, have first notified the other party thereof in writing, and of the cause or causes thereof, and requested an extension for the period of the enforced delay. SEC708. Rights and Remedies Cumulative. The rights and remedies of the parties to the Agreement, whether provided by law or by the Agreement shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of' any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. No waiver made by either such party with respect to the performance, or manner or time thereof, or any obligation of the other party or any condition to its own obligation under the Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. SEC. 709. Party in Position of Surety With Respect to Obligations. The Redeveloper, for itself and its successors and assigns, and for all other persons who are or who shall become, whether by express or implied assumption or otherwise, liable upon or subJect to any obligation or burden under the Agreement, hereby waives, to the fullest extent permitted by law and equity, any and all claims or defenses otherwise available on the ground of its (or their) being or having become a person in the position of a surety, whether real, personal, or otherwise or whether by agreement or operation of law, including, without limitation on the generality of the foregoing, any and all claims and defenses based upon extension of time, indulgence, or modification of terms of contract. VII -34 • ARTICLE VIII. MISCELLANEOUS SEC. 801. Conflict of Interests; Agency Representatives Not Individually Liable. No member, official, or employee of the Agency shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Agency shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Agency or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. SEC. 802. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Improvements provided for in the Agreement: (a) The Redeveloper willnotdiscriminate against any employee or applicant for employment because of race, color, religion, sex, or nation- al origin. The Redeveloper will take affirmative action to insure that applicants are employed, and that employees are tre&ted during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employ- ment, upgrading, demotion, or transfer; recruitment or recruitment adver- tising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Redeveloper agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the pro- visions of this nondiscrimination clause. (b) The Redeveloper will, in all solicitations or advertisements for employees placed by or on behalf of the Redeveloper, state that all qualified applicants will receive consideration for employment without re- gard to race, color, religion, sex, or national origin. (c) The Redeveloper will send to each labor union or representative of workers with which the Redeveloper has a collective bargaining agreement or other contract or understanding, a notice, to be provided, advising the labor union or workers' representative of the Redeveloper's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) The Redeveloper will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. VII -35 (e) The Redeveloper will furnish all information and reports required by Executive Order 11246 of September 24, 1965) and by the rules, regulations, and orders of the Secretary of Labor or the Secretary of Housing and Urban Development pursuant thereto, and will permit access to the Redeveloper's books, records, and accounts by the Agency, the Secretary of Housing and Urban Development, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (f) In the event of the Redeveloper's noncompliance with the nondiscrimination clauses of this Section, or with any of the said rules, regulations, or orders, the Agreement may be canceled, terminated, or suspended in whole or in part and the Redeveloper may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (g) The Redeveloper x111 include the provisions of Paragraphs (a) through (g) of this Section in every contract or purchase order, and will require the inclusion of these provisions in every subcontract entered into by any of its contractors, unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each such contractor, subcontractor, or vendor, as the case may be. Tr:: Redeveloper will take such action with respect to any construction contract, subcontract, or purchase order as the Agency or the Department of Housing and Urban Development may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event the Redeveloper becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Agency or the Department of Housing and Urban Development, the Redeveloper may request the United States to enter into such litigation to protect the interests of the United States. For the purpose of including such provisions in any construction contract, subcontract, or purchase order, as required hereby, the first three lines of this Section shall be changed to read"During the performance of this Contract, the Contractor agrees as follows:", and the term "Redeveloper" shall be changed to "Contractor". SEC. 803. Provisions Not Merged With Deed. None of the provisions of the Agreement are intended to or shall be merged by reason of any deed transferring title to the Property from the Agency to the Redeveloper or any successor in interest, and any such deed shall not be deemed to affect or impair the provisions and covenants of the Agreement. SEC. 804. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. VII -36 COUNCIL DISCUSSION MARCH a2, 1974 _ 4,00 PM, Che Iowa City City Counc.:i_l:met-in informal sc'U•:;.•1 12th day of March 1974 at 4:00 P.M. in the Conicrc•;,,: the Davis Building. :Members present: Czarnecki, DavidSen, Brand L,: l)1: I Absent: deProdse. Staff 'present: Hayek PJe1J n, Vollertson, Taylor, Stolfus, Neppl.- Mayor Czarnecki announced that There were thr.ce ;i- agenda: 1) complaint, grievance and appeal_ pro(::(­*in)-e 2) the Streb rezoning, & 3) the presentation of •-, wo:­' control program. Concerning item 01, the Council-discussed c: ,cr"� •: on .rent charges as a provision of HUD Model griev; n( Policy regarding eviction and -right to rCclues L- ht•r: said we were lacking and ':Alis is our answer; mot-c 0 selection of Hearing,; Panel from rotating list cel_ it I, 'I. malting it clear that the (rievance is not al %-'ay:: t c written form as in 3a; `tl:e Board 'of- Hous ing f(lousing Commission, the ,. H-A. ` is Yjea: ed: Hol.1521-19 ,.`.II ,-ihicii is the Council; a l'o5 A))Jl:i.ty for c 7 L ") '': ;'I,I J for:;val hearing; hearing -ianol r,ould yr.i.ri•,,:,i 1( appeal to Court; trial t- novo-1(1.-' '11S 'i.o ..;..a C is :,l'c pi_.gC 25C, whether to c3e.1 ae _The [:Orli:: I :iQCI_ (3 c,i C -os; 'tion: O"L �'C; 'l it '6c, .. . leave as it i� • cl it:>_>: i<_G. ;: • . a _'c to be fiload with City C1c _I..; c'1f-Lj .,.f_i.._ ,s-_t0 , burden of proof- is on the o:, :1" It %% as the general ---Con,--ea __]^ of Chc, :CC,u.jlri! c la xify several "points- di-(:C.!]`>..-_rl, t- L;_1i putting the Council in as 7n Mayor Czaj_necki than ll:cct of the d_`ci. .Loll f. n iW) 3i j i•. ;.. _ Bypxoducts property, :. Att:-n(,­ :H.-, 1]:.d been zoned 1:12_ under t-:e t.o:.,ni: zvli t)cr l c: -I i (� noIuntary) in 1.965, an • i:-,.]o.; UA . [ r. l•."CISIon on this rr-_'zo:n- ,w L•)'out` ). ,_: rood .(fain recommended. the Cou :ci7 -tav:� a _ of E,11 property ;a.nncixccd since Lyle Fis)ier, Director of the Join:lo.n;r introduced Willy Cl.•.x of t.-_e Cltlr)k S'[). ,1 '-1.21Ci a f-: lm on itosduito Contro'E. t�ii Co 1";z )•r,:'s 4d Iowa City by:hel.icopte _car had- c^-;. JlL`, ) • , sites and noted- 1600: tate` r basins whic"11 ,.,c•u.:ld L _: