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HomeMy WebLinkAbout2020-02-06 Info Packet# � 1 'p- CITY OE IOWA CITY ww.icgov.org City Council Information Packet IP1. Council Tentative Meeting Schedule February 6, 2020 UISG, GPSG and City Council Joint Meeting - January 11 IP2. UISG, GPSG and City Council Joint Meeting Agenda Miscellaneous IP3. Memo from Budget & Compliance Officer: City of Iowa City FY19 Continuing Disclosures IP4. Memo from Historic Preservation Commission Chair and Historic Preservation Planner: Historic Preservation Commission Annual Planning Session Report and Work Plan for Calendar Year 2020 IPS. Email from Jennifer Baum: Sharp Shooters [Staff Response Included} I P6. I P7. 2020 Building Statistics Draft Minutes Planning & Zoning Commission: January 16 February 6, 2020 City of Iowa City Page 1 Item Number: 1. CITY OE IOWA CITY www.icgov.org February 6, 2020 Council Tentative Meeting Schedule ATTACHMENTS: Description Council Tentative Meeting Schedule r City Council Tentative Meeting Schedule Subject to change CITY OF IOWA CITY February 6, 2020 Date Time Meeting Location Tuesday, February 11, 2020 7:00 PM Joint Meeting with UISG Iowa Memorial Union 125 N. Madison Street Second Floor Ballroom Tuesday, February 18, 2020 5:00 PM Iowa City Conference Board Mtg. Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Wednesday, February 19, 2020 3:00 PM Joint Meeting with ICCSD Emma J. Harvat Hall Tuesday, March 3, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, March 24, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 7, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Monday, April 13, 2020 4:00 PM Reception City of University Heights 4:30 PM Joint Entities Meeting TBD Tuesday, April 21, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 5, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 19, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, June 9, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, June 30, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, July 21, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, August 4, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, August 18, 2020 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Item Number: 2. INCITY OE IOWA CITY www.icgov.org February 6, 2020 UISG, GPSG and City Council Joint Meeting Agenda ATTACHMENTS: Description UISG, GPSG and City Council Joint Meeting Agenda - January 11 UISG, GPSG, and Iowa City Council Joint Meeting Second Floor Ballroom, Iowa Memorial Union 11 February 2020 7:00 PM I. Call to Order: Elli Lenz, UISG Speaker of the Senate II. Quorum Call A. UISG: Elli Lenz, UISG Speaker of the Senate B. GPSG: Thomas Pak, GPSG Vice President III. Old Business A. None IV. New Business A. Discussion of student priorities i. Housing affordability and quality ii. Climate action 1. Waste management, composting in multifamily housing units 2. Expanding public transit options and bicycle infrastructure iii. Safety concerns B. Discussion of student perceptions of planned development at 12 E. Court Street V. Open Forum A. Opportunities for future collaboration B. Public comment on items not previously listed on the formal agenda VI. Adjourn NOTE: staff experts from the City will be present for specific subjects (for example, physical safety) to provide additional detail and current updates Item Number: 3. >< _ 4 CITY OE IOWA CITY www.icgov.org February 6, 2020 Memo from Budget & Compliance Officer: City of Iowa City FY19 Continuing Disclosures /_1Al_Ta:ILTA I W11111 RI Description Memo from Budget & Compliance Officer: City of Iowa City FY19 Continuing Disclosures r � ,:,® CITY OF IOWA CITY ��,M 4 � T4 MEMORANDUM Date: January 31, 2020 To: Geoff Fruin, City Manager From: Jacklyn Fleagle, Budget & Compliance Officer RE: Long-term Debt Disclosure Report On October 6, 2015, the City Council adopted a new Debt Management Policy. As part of that policy, an annual debt report was to be submitted within 210 days after the fiscal year-end to the City Manager and the City Council. The City's fiscal year 2019 ended on June 30, 2019, and this report is intended to provide information in regards to that fiscal year. According to the policy, the annual debt report should include, at a minimum, the following information: • General Long-term Debt Obligations: • Property valuations and trend valuations for total actual and taxable valuations • List of the City's 10 largest taxpayers • Summary of all of the City's direct, long-term debt obligations • Debt per capita (GO Debt and TIF Revenue Debt) • Debt per total assessed value (GO Debt and TIF Revenue Debt) • City's debt versus the legal debt limit • Revenue -Secured Debt Obligations: • Summary of the system • Summary of the system's rates and charges • The historical trend of system's sales and charges • Coverage ratios for system • Number of system customers, if applicable • List of system's 10 largest users, if applicable According to the policy, the annual debt report should also include a list of any potential upcoming debt issues and a summary of any material events that have occurred in the past year. The report may also include any other relevant information that is significant to the City's debt program or ability to repay its debt obligations. During fiscal year 2019, the City incurred the following significant events related to its bond obligations: • Principal and interest payment delinquencies: None • Non-payment related defaults, if material: None • Unscheduled draws on debt service reserves reflecting financial difficulties: None • Unscheduled draws on credit enhancements relating to the Bonds reflecting financial substitution of credit or liquidity providers, or their failure to perform: None • Substitution of credit or liquidity providers, or their failure to perform: None • Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or January 31, 2020 Page 2 other material notices or determinations with respect to the tax-exempt status of the Series Bonds, or material events affecting the tax-exempt status of the Bonds: None • Modifications to rights of Holders of the Bonds, if material: None • Bond calls (excluding sinking fund mandatory redemptions), if material, and tender offers; a Notice of Material Event was timely filed for each of these events: i. 2010A Sewer Revenue bond maturities called on July 1, 2018 ii. 2011C GO bond maturities called on July 1, 2018 • Defeasances of the Bonds; a Notice of Material Event was timely filed for this event: None • Release, substitution, or sale of property securing repayment of the Bonds, if material: None • Rating changes on the Bonds: None • Bankruptcy, insolvency, receivership or similar event of the Issuer: None • The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material: None • Appointment of a successor or additional trustee or the change of name of a trustee, if material: None • Incurrence of a Financial Obligation of the Issuer, if material, or agreement to covenants events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect security holders, if material: None • Default, event of acceleration, termination event, modification of terms or similar events under the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties: None In the next 180 days, we are currently anticipating the following potential bond issues: • 2020 General Obligation Bonds — 2020 CIP Program - $12,240,000 Other potential debt issues include: None Attached to this memo are summaries that include the additional financial and debt information mentioned above. This information along with our Fiscal Year 2019 Comprehensive Annual Financial Report (CAFR) will be provided to our bondholders and will be posted on the Electronic Municipal Market Access (EMMA) web site in accordance with Municipal Securities Rulemaking Board (MSRB) rules. This information must be posted by January 26, 2020 in order to comply with the continuing disclosure certificates on our outstanding bonded debt. We are not aware of any material or significant events that will prevent the City from meeting its current outstanding bonded debt obligations. CONTINUING DISCLOSURE SUBMISSION FINANCIAL AND OPERATING REPORT FOR THE FISCAL YEAR JUNE 30, 2019 Relating to CITY OF IOWA CITY 'ZZIJohnson County, Iowa CITY OF IOWA CITY GENERAL OBLIGATION DEBT CUSIP NO. 462308 To the extent not included in the City's Financial Statements, all information the City of Iowa City has agreed to provide in its annual reports, as it relates to its outstanding general obligation debt is included in this report. Attached is additional information as required to be submitted under previous disclosure undertakings of the City. Pursuant to Securities and Exchange Commission Rule 15c2-12 For further information please contact: Dennis Bockenstedt Director of Finance City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Telephone: (319) 356-5053 January 24, 2020 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 12 DEBT LIMIT Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county, municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2017 valuation currently applicable to the Fiscal Year 2018-19 is as follows: 2017 Actual Valuation of Property ......................................... $5,907,660,998 Legal Debt Limit of 5% .......................................................... 0.05 Legal Debt Limit.................................................................... $ 295,383,050 Less: TIF Revenue Debt Subject to Debt Limit ...................... (14,930,000) Less: Total G.O. Debt Subject to Debt Limit .......................... (52,470,000) Less: Other Loans................................................................. (603,000) Less: Other Legal Indebtedness (TIF Rebates) ..................... (27,704,000) Total Applicable Debt............................................................ (95,707,000) Net Debt Limit....................................................................... $ 199,676,050 DIRECT DEBT General Obligation Debt Supported by Property Taxes and Tax Increment Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2012 $ 9,070,000 City Improvements 6/22 $ 2,935,000 July 2013 7,230,000 City Improvements 6/23 3,380,000 June 2014 11,980,000 Refunded City Improvements 6/24 4,875,000 June 2015 7,785,000 City Improvements 6/25 4,915,000 June 2016 8,795,000 City Improvements 6/26 6,785,000 June 2017 9,765,000 City Improvements 6/27 7,960,000 June 2018 8,895,000 City Improvements 6/28 8,085,000 June 2018 3,100,000 Taxable City Improvements 6/20 1,000,000 June 2019 12,535,000 City Improvements 6/29 12,535,000 Total General Obligation Bonds $52,470,000 The remainder of this page was left blank intentionally. City oflowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 13 GENERAL OBLIGATION DEBT(]) (Principal Only) Fiscal Year Ending Series Series Series Series Series Series Series Series June 30 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2018B 2020 ........................................... $ 955,000 $ 820,000 $ 925,000 $ 765,000 $ 910,000 $ 920,000 $ 825,000 $1,000,000 2021 ........................................... 975,000 835,000 950,000 785,000 930,000 940,000 840,000 0 2022 ........................................... 1,005,000 855,000 970,000 805,000 950,000 955,000 855,000 0 2023 ........................................... 0 870,000 1,000,000 830,000 965,000 980,000 875,000 0 2024 ........................................... 0 0 1,030,000 850,000 985,000 1,000,000 895,000 0 2025 ........................................... 0 0 0 880,000 1,010,000 1,025,000 915,000 0 2026 ........................................... 0 0 0 0 1,035,000 1,055,000 940,000 0 2027 ........................................... 0 0 0 0 0 1,085,000 960,000 0 2028 ........................................... 0 0 0 0 0 0 980,000 0 2029 ........................................... 0 0 0 0 0 0 0 0 Total ......................................... $2,935,000 $3,380,000 $4,875,000 $4,915,000 $6,785,000 $7,960,000 $8,085,000 $1,000,000 Fiscal Year Total Ending Series General Obligation Cumulative Retirement Principal & June 30 2019 Debt Amount Percent Interest 2020 ........................................... $ 4,125,000 $11,245,000 $11,245,000 21.43% $12,441,696 2021 ........................................... 905,000 7,160,000 18,405,000 35.08% 8,103,923 2022 ........................................... 925,000 7,320,000 25,725,000 49.03% 8,106,163 2023 ........................................... 955,000 6,475,000 32,200,000 61.37% 7,103,413 2024 ........................................... 985,000 5,745,000 37,945,000 72.32% 6,220,513 2025 ........................................... 875,000 4,705,000 42,650,000 81.28% 5,051,513 2026 ........................................... 905,000 3,935,000 46,585,000 88.78% 4,175,700 2027 ........................................... 940,000 2,985,000 49,570,000 94.47% 3,132,325 2028 ........................................... 960,000 1,940,000 51,510,000 98.17% 2,012,600 2029 ........................................... 960,000 960,000 52,470,000 100.00% 981,600 Total ......................................... $12,535,000 $52,470,000 $57,329,446 Note: (1) Source: the City The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 14 INDIRECT GENERAL OBLIGATION DEBT DEBT RATIOS STATEMENT OF BONDED INDEBTEDNESS(1)(2) City Actual Value, January 1, 2017............................................................................................................................................................. $5,907,660,998 City Taxable Value, January 1, 2017.......................................................................................................................................................... $3,745,477,705 PerCapita Actual Value................................................................................................................................................................................ $87,054.04 PerCapita Taxable Value.............................................................................................................................................................................. $55,192.56 Notes: (1) Source: the City, Audited Financial Statements and EMMA for the County, School Districts and Community College. (2) As of June 30, 2019. (3) Excludes $32,315,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits from withholding taxes. OTHER OBLIGATIONS OTHER DEBT The City has revenue debt payable solely from the net revenues of the City's Urban Renewal Areas as follows: Date of Original Final Principal Outstanding Issue Per Capita Purpose Maturity Applicable Nov 2012 Ratio to City Ratio to City (2010 Pop. $ 2,125,000 Total Percent Amount Actual Value Taxable Value 67,862) Direct Bonded Debt ....................................... $ 52,470,000 100.00% $ 52,470,000 0.89% 1.40% $ 773.19 TIF Revenue Debt ......................................... 14,930,000 100.00% 14,930,000 0.25% 0.40% 220.00 Overlapping Debt: Iowa City Community School District ............. $115,095,000 57.24% $ 65,880,378 1.11% 1.76% 970.80 Clear Creek-Amana Community School Dist. 81,155,000 0.04% 32,462 0.00% 0.00% 0.48 Kirkwood Community College(3) ................... 80,231,000 14.19% 11,384,779 0.19% 0.30% 167.76 Johnson County ............................................ 5,145,000 42.22% 2,172,219 0.04% 0.06% 32.01 Total Overlapping Bonded Debt ................... $349,026,000 $ 79,469,838 1.34% 2.12% $1,171.05 Total Direct and Overlapping Bonded Debt ................................................$146,869,838 2.48% 3.92% $2,164.24 PerCapita Actual Value................................................................................................................................................................................ $87,054.04 PerCapita Taxable Value.............................................................................................................................................................................. $55,192.56 Notes: (1) Source: the City, Audited Financial Statements and EMMA for the County, School Districts and Community College. (2) As of June 30, 2019. (3) Excludes $32,315,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits from withholding taxes. OTHER OBLIGATIONS OTHER DEBT The City has revenue debt payable solely from the net revenues of the City's Urban Renewal Areas as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 Nov 2012 $ 2,655,000 Developer Grant 6/32 $ 2,125,000 Sept.2016 12,805,000 Developer Grant 6/36 12,805,000 Total 5,910,000 Water Refunding 7/25 $14,930,000 The City has revenue debt payable solely from the net revenues of the Municipal Parking System as follows: Date of Original Issue Amount Issued Purpose April 2017 $15,400,000 Parking Final Capital Lease Obligation Maturity As of 6/30/19 6/37 $ 9,413,024 The City has revenue debt payable solely from the net revenues of the Municipal Water System as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2012 $ 4,950,000 Water Refunding 7/22 $ 2,100,000 June 2016 3,650,000 Water Refunding 7/24 2,865,000 June 2017 5,910,000 Water Refunding 7/25 5,300,000 Total $10,265,000 The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2016 $9,360,000 Sewer Refunding 7/21 $5,600,000 June 2017 4,550,000 Sewer Refunding 7/22 4,275,000 Total $9,875,000 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 15 IOWA PROPERTY VALUATIONS In compliance with Section 441.21 of the Code of Iowa, as amended, the State Director of Revenue annually directs all county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The final values, called Actual Valuation, are then adjusted by the County Auditor. Taxable Valuation subject to tax levy is then determined by the application of State determined rollback percentages, principally to residential property. Beginning in 1978, the State required a reduction in Actual Valuation to reduce the impact of inflation on its residents. The resulting value is defined as the Taxable Valuation. Such rollback percentages may be changed in future years. Certain historical rollback percentages for residential, multi -residential, agricultural and commercial valuations are as follows: PERCENTAGES FOR TAXABLE VALUATION AFTER ROLLBACKS(/) BUILDING PERMITS City Building Permits(1) (Excludes the Value of Land) Calendar Year: 2015 New Construction Multi- Ag Land Valuation: .................................................. Fiscal Year Residential Residential(2) & Buildings Commercial 2010/11 ................ 46.90949% N/A 66.2715% 100.0000% 2011/12 ................ 48.5299% N/A 69.0152% 100.0000% 2012/13 ................ 50.7518% N/A 57.5411% 100.0000% 2013/14 ................ 52.8166% N/A 59.9334% 100.0000% 2014/15 ................ 54.4002% N/A 43.3997% 95.0000% 2015/16 ................ 55.7335% N/A 44.7021% 90.0000% 2016/17 ................ 55.6259% 86.2500% 46.1068% 90.0000% 2017/18 ................ 56.9391% 82.5000% 47.4996% 90.0000% 2018/19 ................ 55.6209% 78.7500% 54.4480% 90.0000% 2019/20 ................ 56.9180% 75.0000% 56.1324% 90.0000% Notes: (1) Source: the Iowa Department of Revenue. (2) New category beginning with fiscal year 2017. BUILDING PERMITS City Building Permits(1) (Excludes the Value of Land) Calendar Year: 2015 New Construction No. of New Permits .................................... 184 Valuation: .................................................. $106,350,572 Remodeling Repair and Additions: No. of New Permits: ................................... 461 Valuation: .................................................. $ 31.960.941 Total Permits ............................................. 645 Total Valuations ......................................... $138,311,513 Note: (1) Source: the City 2016 2017 2018 2019 262 211 151 120 $295,339,497 $108,285,647 $115,872,543 $134,485,833 532 507 467 484 $ 93.087,526 $108.532,366 $ 76.942,267 $ 97,036,048 794 718 618 604 $388,427,023 $216,818,013 $192,814,810 $231,521,881 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 16 PROPERTY VALUATIONS AND TREND OF VALUATIONS ACTUAL (100%) VALUATIONS FOR THE CITY(1)(2) Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Property Class Levy Year: 2013 2014 2015 2016 2017 Residential........................................................ $3,495,700,460 $3,617,590,930 $3,893,541,900 $4,011,317,530 $4,279,194,820 Agricultural........................................................ 3,680,920 3,553,520 3,736,510 3,443,020 2,626,150 Commercial....................................................... 1,157,640,090 1,155,761,766 856,972,664 877,491,737 964,588,039 Industrial........................................................... 80,494,880 76,495,918 79,053,598 79,474,988 74,013,639 Multi-residential(3)............................................. 0 0 415,208,021 420,082,751 482,118,763 Railroads........................................................... 3,827,506 4,015,580 4,096,577 3,984,932 3,549,414 Utilities without Gas and Electric ........................ 9,599,528 8,239,789 7,375,066 6,734,894 7,099,293 Gas and Electric Utility ...................................... 78,642,915 87,728,294 92,987,351 94,582,279 97,050,716 Less: Military Exemption ................................... (2,939,122) (2,828,002) (2,727,994) (2,635,396) (2,579,836) Total................................................................ $4,826,647,177 $4,950,557,795 $5,350,243,693 $5,494,476,735 $5,907,660,998 Percent Change +(-) ........................................ 3.39%(4) 2.57% 8.07% 2.70% 7.52% Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations used in the following amounts: (2) Includes tax increment finance (TIF) valuations used in the following amounts: January 1: 2013 January 1: 2013 2014 2015 2016 2017 TIF Valuation ............................... $21,131,574 $42,307,287 $72,650,838 $80,559,947 $85,379,369 (3) New Class as of January 1, 2015, previously reported as Commercial Property. (4) See "PROPERTY TAX INFORMATION - Utility Property Tax Replacement" herein. (4) Based on 2012 Actual Valuation of $4,668,318,992. (5) Based on 2012 Taxable Valuation of $3,036,012,368. For the January 1, 2017 levy year, the City's Taxable Valuation was comprised of approximately 64% residential, 23% commercial, 2% industrial, 10% multi -residential, 1% utilities and less than 1% agriculture and military exemption. PROPERTY VALUATIONS AND TREND OF VALUATIONS TAXABLE ("ROLLBACK") VALUATIONS FOR THE CITY(1)(2) Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Property Class Levy Year: 2013 2014 2015 2016 2017 Residential........................................................ $1,901,667,703 $2,016,210,314 $2,165,817,742 $2,284,007,603 $2,380,126,625 Agricultural........................................................ 1,597,501 1,588,496 1,706,955 1,618,090 1,429,547 Commercial....................................................... 1,099,758,752 1,040,185,590 771,275,414 789,742,578 868,129,247 Industrial........................................................... 76,470,143 68,846,326 71,148,238 71,527,489 66,612,275 Multi-residential(3) ............................................. 0 0 358,117,010 346,568,385 379,668,606 Railroads........................................................... 3,636,130 3,614,022 3,686,919 3,586,439 3,194,473 Utilities without Gas and Electric(4) ................... 9,599,528 8,239,789 7,375,066 6,734,894 7,099,293 Gas and Electric Utility(4).................................. 47,004,994 46,785,426 44,986,783 41,702,196 41,797,475 Less: Military Exemption ................................... (2,939,122) (2,828,002) (2,727,994) (2,635,396) (2,579,836) Total................................................................ $3,136,795,629 $3,182,641,961 $3,421,386,133 $3,542,852,278 $3,745,477,705 Percent Change +(-) ........................................ 3.32%(5) 1.46% 7.50% 3.55% 5.72% Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations used in the following amounts: January 1: 2013 2014 2015 2016 2017 TIF Valuation ............................... $21,131,574 $33,331,128 $72,650,838 $80,559,947 $85,379,369 (3) New Class as of January 1, 2015, previously reported as Commercial Property. (4) See "PROPERTY TAX INFORMATION - Utility Property Tax Replacement" herein. (5) Based on 2012 Taxable Valuation of $3,036,012,368. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 1 7 LEVIES AND TAX COLLECTIONS(]) The following shows the trend in the City's tax extensions and collections. Levy Fiscal Amount Amount Percent Year Year Levied Collected(2) Collected 2010 ............... 2011-12.............. $49,589,988 $49,543,860 99.91% 2011 ............... 2012-13.............. 50,407,375 50,419,618 100.02% 2012 ............... 2013-14.............. 50,307,189 50,051,577 99.49% 2013 ............... 2014-15.............. 51,608,730 51,496,353 97.70% 2014 ............... 2015-16.............. 52,033,966 52,020,805 99.97% 2015 ............... 2016-17.............. 55,330,223 55,357,357 100.05% 2016 ............... 2017-18.............. 56,458,399 56,525,799 100.12% 2017 ............... 2018-19.............. 59,173,825 59,252,017 100.13% Notes: (1) Source: the State of Iowa Department of Management and the City. Does not include Levies or Collections for Utility Replacement. Does not include levies and collections for the City's tax increment finance district. (2) Includes delinquent taxes. LARGER TAXPAYERS(]) Notes: (1) Source: Johnson County. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. LEVY LIMITS A city's general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per $1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384, Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are limited special purpose levies which may be certified outside of the above described levy limits (Code of Iowa, Section 384.12). The amount of the City general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2018-19. The City does levy costs for operation and maintenance of publicly owned Transit, tort liability and other insurance, support of the public library, police and fire retirement, FICA and IPERS and other employee benefits expenses in addition to the $8.10 general fund limit as authorized by law. In addition, the City has not established an emergency fund levy for Fiscal Year 2018-19. Debt service levies are not limited. Levy Year 2017 Taxpayer Name Business/Service Taxable Valuation(2) American College Testing, Inc (aka ACT, Inc.) .............. Commercial................................................................. $ 50,377,182 MidAmerican Energy ..................................................... Utility........................................................................... 39,501,682 BBCS-Hawkeye Housing LLC ....................................... Real Estate Management/Apartments.......................... 25,227,744 Ann S Gerdin Revocable Trust ...................................... Commercial................................................................. 22,903,407 MidWestOne Bank ......................................................... Banking....................................................................... 20,850,984 Dealer Properties IC LLC ............................................... Commercial................................................................. 19,318,887 Procter & Gamble LLC ................................................... Industrial...................................................................... 16,805,285 Vesper Iowa City LLC....................................................Apartments.................................................................. 15,123,579 AlplaInc........................................................................Industrial...................................................................... 14,019,426 National Computer Systems Inc ..................................... Commercial................................................................. 13.673.205 Total................................................................................................................................................................. $237,801,381 Ten Largest Taxpayers as Percent of City's 2017 Taxable Valuation ($3,745,477,705) .................................... 6.35% Notes: (1) Source: Johnson County. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. LEVY LIMITS A city's general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per $1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384, Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are limited special purpose levies which may be certified outside of the above described levy limits (Code of Iowa, Section 384.12). The amount of the City general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2018-19. The City does levy costs for operation and maintenance of publicly owned Transit, tort liability and other insurance, support of the public library, police and fire retirement, FICA and IPERS and other employee benefits expenses in addition to the $8.10 general fund limit as authorized by law. In addition, the City has not established an emergency fund levy for Fiscal Year 2018-19. Debt service levies are not limited. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 18 TAX RATES Levy Years 2013 - 2017(1)(2) (Per $1,000 Actual Valuation) PROPERTY TAX LEGISLATION From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending federal or state tax legislation. During the 2019 legislative session, the Iowa General Assembly enacted Senate File 634 (the "2019 Act"). This bill modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the county budget. The bill also includes a provision that will require the affirmative vote of 2/3 of the board of supervisors when the maximum property tax dollars under these levies exceed an amount determined under a prescribed formula. The 2019 Act does not change the process for hearing and approval of the Debt Service Levy pledged for repayment of the Bonds. It is too early to evaluate the affect the 2019 Act will have on the overall financial position of the City or its ability to fund essential services. During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the "2013 Act"). Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property to 3%, (ii) assigned a "rollback" (the percentage of a property's value that is subject to tax) to commercial, industrial and railroad property of 90%, (iii) created a new property tax classification for multi -residential properties (apartments, nursing homes, assisted living facilities and certain other rental property) and assigned a declining rollback percentage to such properties for each year until the residential rollback percentage is reached in the 2022 assessment year, after which the rollback percentage for such properties will be equal to the residential rollback percentage each assessment year, and (iv) exempted a specified portion of the assessed value of telecommunication properties. Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Levy Year: 2013 2014 2015 2016 2017 City: General Fund ..................................................... $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 Emergency Levy ................................................. 0.00000 0.00000 0.00000 0.00000 0.00000 Debt Service Fund .............................................. 4.12963 3.92833 3.82846 3.57846 3.22846 Employee Benefits ............................................. 2.96331 3.11277 3.14415 3.14415 3.34415 Capital Improvement .......................................... 0.00000 0.00000 0.00000 0.00000 0.00000 Other.................................................................. 1.51226 1.50986 1.51044 1.51044 1.51044 Total City.......................................................... $16.70520 $16.65096 $16.58305 $16.33305 $16.18305 Johnson County ................................................. $6.74168 $6.90337 $6.77140 $6.85143 $6.53594 Iowa City Community School District .................. 13.69999 13.86773 13.98935 13.95855 14.85629 Kirkwood............................................................ 1.05754 1.06125 1.08048 1.13174 1.20354 Other.................................................................. 0.32315 0.32784 0.32450 0.33036 0.30557 Total Tax Rate(3)............................................. $38.52756 $38.81115 $38.74878 $38.60513 $39.08439 Notes: (1) Source: Iowa Department of Management. (2) Does not include the tax rate for agriculture. (3) Taxpayers in the Iowa City Community School District area. PROPERTY TAX LEGISLATION From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending federal or state tax legislation. During the 2019 legislative session, the Iowa General Assembly enacted Senate File 634 (the "2019 Act"). This bill modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the county budget. The bill also includes a provision that will require the affirmative vote of 2/3 of the board of supervisors when the maximum property tax dollars under these levies exceed an amount determined under a prescribed formula. The 2019 Act does not change the process for hearing and approval of the Debt Service Levy pledged for repayment of the Bonds. It is too early to evaluate the affect the 2019 Act will have on the overall financial position of the City or its ability to fund essential services. During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the "2013 Act"). Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property to 3%, (ii) assigned a "rollback" (the percentage of a property's value that is subject to tax) to commercial, industrial and railroad property of 90%, (iii) created a new property tax classification for multi -residential properties (apartments, nursing homes, assisted living facilities and certain other rental property) and assigned a declining rollback percentage to such properties for each year until the residential rollback percentage is reached in the 2022 assessment year, after which the rollback percentage for such properties will be equal to the residential rollback percentage each assessment year, and (iv) exempted a specified portion of the assessed value of telecommunication properties. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 19 The Act includes a standing appropriation to replace some of the tax revenues lost by local governments, including tax increment districts, resulting from the new rollback for commercial and industrial property. Beginning in fiscal year 2018 the standing appropriation cannot exceed the actual 2017 appropriation amount. The appropriation does not replace losses to local governments resulting from the Act's provisions that reduce the annual revaluation growth limit for residential and agricultural properties to 3%, the gradual transition for multi -residential properties from the residential rollback percentage (currently 53% of market value), or the reduction in the percentage of telecommunications property that is subject to taxation. Given the wide scope of the statutory changes, and the State's discretion in establishing the annual replacement amount that is appropriated each year commencing in fiscal 2018, the impact of the 2013 Act on the City's future property tax collections is uncertain and the City has not attempted to quantify the financial impact of the 2013 Act's provisions on the City's future operations. Notwithstanding any decrease in property tax revenues that may result from the 2013 Act, Iowa Code section 76.2 provides that when an Iowa political subdivision issues bonds, "[t]he governing authority of these political subdivisions before issuing bonds shall, by resolution, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county auditor or the auditors of the counties in which the political subdivision is located; and the filing shall make it a duty of the auditors to enter annually this levy for collection from the taxable property within the boundaries of the political subdivision until funds are realized to pay the bonds in full." From time to time, other legislative proposals may be considered by the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described in this Official Statement. It cannot be predicted whether or in what forms any of such proposals may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for the levy of taxes by the City. CITY FUNDS ON HAND (Cash and Investments as of June 30, 2019, in thousands) City Operating Funds $175,028 City Restricted Funds 48,703 Total $233,731 The remainder of this page was left blank intentionally. City oflowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 110 STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES(]) (Amounts Expressed in Thousands) ASSETS: Equity in Pooled Cash and Investments .................................. Receivables: PropertyTax.......................................................................... Accounts and Unbilled Usage ................................................ Interest.................................................................................. Notes..................................................................................... Internal Balances..................................................................... Due from Other Governments .................................................. PrepaidItem............................................................................ Inventories............................................................................... Assets Held for Resale............................................................ Restricted Assets: Equity in Pooled Cash and Investments ................................. Other Post Employment Benefits Asset ................................... Capital Assets: Land and Construction in Progress ........................................ Other Capital Assets (Net of Accumulated Depreciation)......... TotalAssets....................................................................... Audited as of June 30 2015 2016 2017 2018 2019 $ 63,571 $ 84,052 $111,030 $109,860 $111,645 52,240 55,482 56,639 59,538 60,529 718 953 820 817 941 364 284 428 920 967 17,308 16,252 5,524 5,304 5,209 (12,127) (13,688) (15,494) (16,069) (20,055) 10,298 5,987 4,519 4,067 7,584 0 10 811 810 907 656 688 730 602 650 2,170 582 750 562 689 45,981 36,914 24,560 26,108 18,553 25 40 35 0 0 48,032 48,275 52,545 73,176 51,291 151,620 158,947 173,598 174,835 210,302 $380,856 $394,778 $416,495 $440,530 $449,212 DEFERRED OUTFLOWS OF RESOURCES:(2) Pension Related Deferred Outflows ......................................... $ 6,767 OPEB Related Deferred Outflows ............................................ 0 Total Deferred Outflows of Resources ................................. $ 6,767 LIABILITIES: Accounts Payable.................................................................... Contracts Payable................................................................... Accrued Liabilities................................................................... InterestPayable...................................................................... Deposits.................................................................................. Advances from Grantors.......................................................... Due to Other Governments...................................................... NotesPayable......................................................................... Noncurrent Liabilities: Due Within One Year: Employee Vested Benefits ................................................... BondsPayable.................................................................... Due in more than One Year: Employee Vested Benefits ................................................... Net Pension Liability............................................................ Other Post Employment Benefits Liability ............................ NotesPayable..................................................................... BondsPayable.................................................................... Total Liabilities................................................................... DEFERRED INFLOWS OF RESOURCES: Unavailable Revenues: $ 7,192 $ 13,131 $ 11,477 $ 11,255 0 0 637 1,467 $ 7,192 $ 13,131 $ 12,114 $ 12,722 $ 2,296 $ 3,374 $ 2,127 $ 5,168 $ 3,399 5,468 2,773 2,521 3,663 5,864 4,145 4,143 4,182 4,193 5,231 168 110 133 134 151 1,078 1,715 1,230 952 1,008 69 47 144 124 98 636 402 42 29 31 2,004 582 663 475 602 1,148 1,185 1,252 1,253 1,308 11,255 10,384 8,230 9,612 11,534 928 947 989 987 1,012 24,556 30,539 39,080 38,867 38,890 2,932 3,227 3,660 5,472 6,401 211 211 211 211 211 50,785 48,105 59,509 58,307 56,771 $107,679 $107,744 $123,973 $129,447 $132,511 Pension Related Deferred Inflows .......................................... $ 10,791 OPEB Related Deferred Inflows ............................................ 0 Succeeding Year Property Taxes .......................................... 52,035 Notes..................................................................................... 11,422 Grants................................................................................... 0 Total Deferred Inflows of Resources .................................. 74,248 NET POSITION: $ 1,603 Net Investment in Capital Assets ............................................. $153,729 Restricted for or by: 0 Employee Benefits................................................................. 1,593 Capital Projects..................................................................... 27,014 DebtService.......................................................................... 6,921 Police.................................................................................... 510 Other Purposes..................................................................... 409 GrantAgreement................................................................... 0 Unrestricted............................................................................. 15.520 Total Net Position.............................................................. $205,696 $ 3,740 $ 1,603 $ 1,565 $ 1,940 0 0 246 216 55,330 56,459 59,173 60,296 11,226 0 0 0 12 0 0 0 70,308 $58,062 60,984 62,452 $163,362 $183,651 $157,106 $208,028 1,671 2,810 3,119 4,249 31,456 30,856 21,463 17,020 6,463 7,221 8,423 9,514 458 349 283 214 1,657 2,590 4,469 4,359 449 3,850 3,733 3,463 18,402 1223,918 16,264 $247,591 63,617 $262 213 20,124 1266,971 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. City oflowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 111 STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES(]) (Amounts Expressed in Thousands) FUNCTION/PROGRAMS: Governmental Activities: PublicSafety......................................................................... PublicWorks......................................................................... Culture and Recreation.......................................................... Community and Economic Development ............................... General Government............................................................. Interest on Long -Term Debt ................................................... Total Governmental Activities .............................................. General Revenues: Property Taxes, Levied for General Purposes ....................... Hotel/Motel Tax..................................................................... Gas and Electric Tax............................................................. Utility Franchise Tax.............................................................. Grants and Contributions Not Restricted to Specific Purposes................................................................. Earnings on Investments....................................................... Gain on Disposal of Capital Assets ........................................ Miscellaneous........................................................................ Transfers................................................................................. Reassignment of Cable Television to Governmental Activities................................................................................ Total General Revenues and Transfers ............................... Changes in Net Position .................................................... Net Position Beginning of Year ................................................ Net Position End of Year ......................................................... Audited for the Year Ended June 30 2015 2016 2017 2018 2019 $ (16,991) $ (15,969) $ (18,053) $ (20,466) $ (20,862) 8,350 998 6,746 (3,084) (2,516) (13,208) (13,535) (14,573) (15,189) (14,834) (6,101) (4,322) (6,264) (10,166) (14,116) (4,777) (4,988) (4,600) (5,338) (5,807) (1,517) (1,287) (1,481) (1,414) (1,444) $(34,244) $(39,103) $(38,225) $(55,657) $(59,579) $ 52,205 $ 53,114 $ 57,649 $ 59,046 $ 61,739 1,057 1,079 1,137 1,046 1,302 851 764 726 684 668 902 874 939 976 965 1,048 2,080 1,583 1,547 1,552 1,188 1,045 1,397 2,368 3,257 135 218 2,151 140 186 5,518 4,464 3,369 3,656 3,329 (10,057) (6,395) (7,053) 1,814 (8,661) 0 82 0 0 0 52,847 57,325 61,898 71,277 64,337 $ 18,603 $ 18,222 $ 23,673 $ 15,620 $ 4,758 187,093(2) $205,696 205,696 $221918 223,918 $247,591 246,593(2) $2521213 262,213 $266 971 Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. (2) Restated. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 112 BALANCESHEET GENERAL FUND(1) (Amounts Expressed in Thousands) Audited as of June 30 2015 2016 2017 2018 2019 ASSETS: $32,500 Equity in Pooled Cash and Investments .................................... $19,001 Receivables: 32,965 PropertyTaxes........................................................................ 29,922 Accounts and Unbilled Usage .................................................. 250 Interest.................................................................................... 217 Notes....................................................................................... 1,340 Advances to Other Funds.......................................................... 2,681 Due from Other Governments.................................................... 1,859 PrepaidItem.............................................................................. 0 Assets Held for Resale.............................................................. 2,005 Restricted Assets: 56 Equity in Pooled Cash and Investments ................................... 30,141 Total Assets....................................................................... $87416 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES: Liabilities: $30,214 $32,500 $36,321 $38,979 31,825 32,965 34,973 36,301 449 410 496 491 163 161 276 360 1,305 1,292 1,276 1,329 0 0 0 56 1,758 1,887 1,941 2,131 10 719 726 818 582 750 562 689 21,277 $87 583 10,268 =2u 1,904 $78 A_Z5 2,028 $$3.1$2 Accounts Payable.................................................................... $ 1,328 $ 1,376 $ 1,191 $ 1,492 $ 1,497 Accrued Liabilities.................................................................... 887 1,141 1,321 1,391 1,466 Due to Other Governments...................................................... 312 29 38 29 31 Interest Payable...................................................................... 37 0 4 5 17 Notes Payable......................................................................... 2,004 582 663 475 602 Liabilities Payable from Restricted Assets: Deposits............................................................................... 1,072 1,710 1,224 947 1,004 Advances from Grantors....................................................... 27 0 7 113 94 Total Liabilities................................................................... 5,667 4,8 8 $ 4,448 4 452 $ 4,711 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenues: Succeeding Year Property Taxes .......................................... $29,805 $31,739 $32,863 $34,764 $36,176 Notes..................................................................................... 1,340 1,305 0 0 0 Grants................................................................................... 82 15 6 9 34 Other..................................................................................... 1.393 1.434 1.539 1.600 1.643 Total Deferred Inflows of Resources .................................... $32,620 $34,493 $34,408 $36,373 $37,853 FUND BALANCES: Nonspendable......................................................................... $ 69 $ 69 $ 788 $ 793 $ 887 Restricted................................................................................ 25,291 18,975 9,974 1,942 1,808 Committed............................................................................... 0 4,699 5,199 4,962 0 Assigned................................................................................. 4,483 1,143 1,342 1,437 3,565 Unassigned............................................................................. 19.286 23,366 24,793 28,516 34,358 Total Fund Balances.......................................................... $49,129 $48,252 $42,096 $37,650 $40,618 Total Liabilities, Deferred Inflows of Resources and Fund Balances.......................................................... $87,416 $82583 $84,952 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019 The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 113 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND(1) (Amounts Expressed in Thousands) EXPENDITURES: Audited Fiscal Year Ended June 30 Current: 2015 2016 2017 2018 2019 REVENUES: $ 21,087 $ 20,967 $ 22,005 $ 22,762 $ 23,858 Taxes........................................................................................ $ 31,909 $ 32,229 $ 34,290 $ 35,363 $ 37,426 Licenses and Permits................................................................ 1,806 3,056 3,521 2,734 2,981 Intergovernmental..................................................................... 3,487 3,830 3,574 3,786 4,099 Charges for Service................................................................... 1,460 1,543 1,665 1,465 1,595 Fines and Forfeits...................................................................... 0 760 750 695 776 Use of Money and Property....................................................... 845 749 839 1,164 1,599 Miscellaneous............................................................................ 5,83 1,430 1,692 1,878 1,950 Total Revenues....................................................................... $45,342 $43,597 $46,331 $47,085 $50,426 EXPENDITURES: Current: Public Safety........................................................................... $ 21,087 $ 20,967 $ 22,005 $ 22,762 $ 23,858 Public Works........................................................................... 1,624 1,312 1,803 1,871 1,922 Cultural and Recreation........................................................... 11,698 12,038 12,890 13,099 13,096 Community and Economic Development ................................. 3,187 2,842 3,074 2,785 3,561 General Government............................................................... 7,093 5,479 5,471 5,550 6,144 Capital Outlay............................................................................ 3,333 1,651 1,463 2,124 1,718 Total Expenditures................................................................... $48,022 $44,289 $46,706 $48,191 $50,299 Excess (Deficiency) of Revenues Over (Under) Expenditures........................................................................... (2,680) 692 375 (1,106) 127 Other Financing Sources (Uses): Issuance of Debt....................................................................... $ 0 $ 0 $ 0 $ 17 $ 0 Sale of Capital Assets............................................................... 164 252 268 140 758 Premiums on Issuance of Bonds ............................................... 0 0 0 0 0 Transfers In............................................................................... 8,780 10,692 10,725 10,138 11,548 Transfers Out............................................................................ (5.044)1( 1,129) 1( 8,023) 1( 3.6351 (9,465) Total Other Financing Sources and (Uses) .............................. 3,900 185 (7,030 (3,340) 2,841 Net Change in Fund Balances ................................................... $ 1,220 $ (877) $ (7,405) $ (4,446) $ 2,968 Fund Balances, Beginning........................................................ $47,909 $49,129 $49,501(2) $42,096 $37,650 Fund Balances, Ending............................................................. $ 49-,129 $-48.252 &A2&96 131-650 S4451$ Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. (2) Restated. PENSIONS The City participates in two public pension systems, Iowa Public Employee's Retirement System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). Summary descriptions of each Plan follow. In fiscal year 2019, pursuant to the IPERS' required rate, the City's Regular members contributed 6.29% of pay and the City contributed 9.44% for a total rate of 15.73%. The City's contributions to IPERS for the year ended June 30, 2019 were $2,912,438. The City's contribution to MFPRSI for year ended June 30, 2019 was $2,902,433. The City's share of the contributions, payable from the applicable funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount. The City has always made its full required contributions to IPERS and MFPRSI. At June 30, 2019, the City reported a liability of $25,419,730 for its proportionate share of the IPERS net pension liability. The net pension liability was measured as of June 30, 2018 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension liability was 7%. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all IPERS participating employers. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 114 OTHER POST -EMPLOYMENT BENEFITS (OPEB) The City operates one self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The following table shows the City's total OPEB liability: Total OPEB Liability Beginning of Year ................................................. Changes for the year ServiceCost.......................................................................... Interest.................................................................................. Difference Between Expected and Actual Experience ........... Changes in Assumptions....................................................... Benefit Payments.................................................................. NetChanges......................................................................................... Total OPEB Liability End of Year........................................................... The remainder of this page was left blank intentionally. $7,589,740 552,791 296,944 1,160,860 225,633 (948,137) 1,288,091 $8,877,831 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 115 FINANCIAL AND OPERATING REPORT FOR THE FISCAL YEAR JUNE 30, 2019 Relating to CITY OF IOWA CITY Johnson County, Iowa WATER SYSTEM REVENUE BASE CUSIP NO. 462380 SEWER SYSTEM REVENUE BASE CUSIP NO. 462362 PARKING SYSTEM REVENUE BASE CUSIP NO. 462344 and URBAN RENEWAL AREA REVENUE BASE CUSIP NO. 462371 To the extent not included in the City's Financial Statements, all information the City of Iowa City has agreed to provide in its annual reports, as it relates to its outstanding water revenue, sewer revenue and urban renewal revenue debt is included in this report. Attached is additional information as required to be submitted under previous disclosure undertakings of the City. Pursuant to Securities and Exchange Commission Rule 15c2-12 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 116 WATER SYSTEM The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public Information/Education. There are a total of 31.75 (FTE) employees who work in the Water Division. This division serves about 75,798 people and has over 28,972 customer water accounts. The average daily use for fiscal year 2019 was approximately 5.4 million gallons per day (MGD). A peak flow of over 8.6 MGD was experienced during the summer of 2012. Water Sources: The primary source of water for the City is the alluvial aquifer collector wells along the Iowa River. Four collector wells can provide approximately 10.5 MGD. Additional sources include two Jordan aquifer wells which can provide 1.0 MGD; three Silurian aquifer wells which can provide 1.0 MGD; a sand pit that can provide 1.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 16.7 MGD maximum capacity. Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening coagulation/flocculation/sedimentation), and granular activated carbon filtration processes with fluoridation and free chlorination. The Grade IV Water Treatment Facility houses an operations team that performs over 230 water quality tests per day in-house and collects regulatory samples for testing at the University Hygienic Laboratory. This testing ensures that Iowa City's drinking water meets all IDNR and EPA Safe Drinking Water Act Standards. Distribution System: The water flows through approximately 279 miles of water mains and includes over 28,000 service connections. The distribution piping consists of cast iron, ductile iron and plastic main that ranges in size from 2" to 30". The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,669 public and private hydrants located throughout the community. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write-offs have been less than 0.2% of gross revenues for the past three years. WATER SYSTEM RATES AND CHARGES The following rates and charges were effective July 1, 2016. Water Service Charge Minimums(]) (Includes up to the first 100 cubic feet (c.f.)) Meter Size Charge Meter Size Charge 5/8" ..................... $ 7.42 2..................... $ 25.63 3/4.. ..................... 8.11 3..................... 47.37 1.. ....................... 9.56 4..................... 82.62 1-1/2 ...................... 19.06 6..................... 166.25 Note: (1) Source: the City Monthly Usage in excess of 100 Cubic Feet (c.f.)(1) 101 c.f. - 3,000 c.f...................$3.47 per 100 c.f. 3,001 c.f. and over..................$2.49 per 100 c.f. Note: (1) Source: the City City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 117 Single Purpose Meter Charges(]) First 100 c.f......................................... Minimum Monthly Charge Usage in excess of 100 c.f................... $3.47 per 100 c.f. Note: (1) Source: the City. Changes in water rates over the last ten fiscal years: Water Rate Changes(]) Note: (1) Source: the City. SALES HISTORY AND WATER SYSTEM CHARGES(]) Rate Change 0% 0% 0% 0% 0% 5% 5% 0% 0% 0% Water Sales Water System Cubic Feet Sold(2) Charges 234,342,825 .............................. $7,568,378 236,838,370 .............................. 7,661,898 246, 618, 257 .............................. 7,953,738 254,616,773 .............................. 8,194,467 239, 790, 719 .............................. 7,778,364 240,423,612 .............................. 8,161,522 255, 524, 943 .............................. 8,758,683 267,511,531 .............................. 9,156,005 293, 046, 636 .............................. 9,953,510 289,055,329 .............................. 10,139,587 Notes: (1) Source: the City. (2) Beginning in March 2015 the amounts include unbilled usage. WATER SYSTEM CUSTOMERS BY CLASSIFICATION(1)(2) Classification FY2015(4) FY2016 FY2017 FY2018 FY2019(5) Residential ............................. 23,089 23,638 24,025 27,042 27,232 Commercial ........................... 1,409 1,415 1,425 1,428 1,528 Industrial ................................ 14 14 14 17 17 Other(3)................................. 135 131 134 178 198 Total Meters ......................... 24,647 25,198 25,598 28,665 28,972 Notes: (1) Source: the City (2) Represents the number of meters customers billed as of the end of the fiscal year. (3) Other meters consist of rural, schools, government, churches and City meters. (4) Implemented a new utility billing system during Fiscal Year 2015, which consolidated customers with multiple meters. (5) Included all active meters for each customer — dual purpose (water and sewer) as well as single purpose meters (water only, typically for irrigation). City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 118 LARGER WATER SYSTEM CUSTOMERS(]) Customer Name Proctor & Gamble .................................................... Iowa City Veterans Health Care System .................. Campus Apartments ................................................ MercyHospital......................................................... Tailwind Iowa City (Rus Properties Management).... DorminiumJIT ......................................................... Graduate Hotel ........................................................ Seville Apartments ................................................... Iowa City Community School District ........................ Emerald Court Apartments ....................................... Total...................................................................... Total Water System Customers Note: (1) Source: the City. $10,139,587 The remainder of this page was left blank intentionally. Fiscal Year 2019 Charges Rank Percentage $ 884,980 1 8.73% 108,501 2 1.07% 69,523 3 0.69% 62,721 4 0.62% 62,045 5 0.61% 52,530 6 0.52% 48,311 7 0.48% 38,770 8 0.38% 37,848 9 0.37% 32,840 10 0.32% $1,398,069 13.79% $10,139,587 The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 119 SEWER SYSTEM The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300+ miles of sanitary sewers, 17 sanitary sewer lift stations, and a wastewater treatment plant. There are a total of 26.00 (FTE) employees who work in the Wastewater Division. This division serves approximately 76,000 people and has approximately 26,000 customers. The system has 3 significant industrial users, 2 non -categorical and 1 categorical. The average daily treatment plant flow for fiscal year 2019 was 10.05 million gallons per day (MGD). The Wastewater Plant was constructed in 1990. The plant was upgraded in 2002 and underwent another expansion in 2014. The City conducts all wastewater treatment at the Wastewater Treatment Plant and monitors and controls operations of the system remotely through supervisory control and data acquisition (SCADA) computer systems. The wastewater treatment system design has a maximum daily treatment capacity of 43.30 MGD. The Wastewater Treatment Division is currently in compliance with federal clean water standards. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write-offs have been less than 0.2% of gross revenues for the past three years. SEWER SYSTEM RATES AND CHARGES 2015 The following Sewer System rates and charges were approved by the City Council and became effective July 1, Monthly Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15 Monthly Usage in excess of 100 cubic feet (c.£) $3.99 The following table shows historical rate increases over the last ten fiscal years. Sewer Rate Increases(]) Fiscal Year Rate Change 2010 .................................................... 0% 2011 .................................................... 0% 2012 .................................................... 0% 2013 .................................................... 0% 2014 .................................................... 0% 2015 .................................................... 0% 2016 .................................................... 0% 2017 .................................................... 0% 2018 .................................................... 0% 2019 .................................................... 0% City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 120 SALES HISTORY AND SEWER SYSTEM CHARGES(]) Fiscal Sewer Sales Sewer System Year Cubic Feet Sold(2) Charges 2010 ..................................... 265,375,857 $12,541,905 2011 ..................................... 280,303,237 12,748,695 2012 ..................................... 282,134,840 12,784,321 2013 ..................................... 285,472,392 12,883,641 2014 ..................................... 269,494,125 12,382,031 2015 ..................................... 266,830,947 12,278,153 2016 ..................................... 270,547,701 12,022,203 2017 ..................................... 277,712,785 12,404,360 2018 ..................................... 283,246,320 12,524,540 2019 ..................................... 288,537,266 12,822,250 Notes: (1) Source: the City. (2) Beginning in March 2015 the amount includes unbilled usage in totals. NUMBER OF SEWER SYSTEM CUSTOMERS(]) Fiscal Number of Sewer Year System Customers 2012 .................................................. 23,529 2013 .................................................. 24,059 2014 .................................................. 24,389 2015 .................................................. 24,533 2016 .................................................. 25,085 2017 .................................................. 25,485 2018 .................................................. 26,049 2019 .................................................. 26,201 Note: (1) Source: the City. LARGER SEWER SYSTEM CUSTOMERS(]) Customer Name University of Iowa.......................................................... Proctor & Gamble.......................................................... Iowa City Landfill............................................................ Iowa City Veterans Health Care System ........................ MercyHospital............................................................... Campus Apartments...................................................... DorminiumJIT.............................................................. Tailwind Iowa City LLC .................................................. Seville Apartments......................................................... Graduate Hotel.............................................................. Total............................................................................ Total Sewer System Customers ..................................... $12,822,250 Note: (1) Source: the City. Fiscal Year 2019 Charges Rank Percentage $ 2,145,648 1 16.73% 1,317,634 2 10.28% 249,780 3 1.95% 133,486 4 1.04% 100,293 5 0.78% 77,874 6 0.61% 60,449 7 0.47% 57,910 8 0.45% 53,432 9 0.42% 50,597 10 0.39% $ 4,247,103 33.12% Total Sewer System Customers ..................................... $12,822,250 Note: (1) Source: the City. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 121 PARKING SYSTEM The Parking System currently consists of approximately 5,105 parking spaces located at various parking facilities in the City. The Parking Division of the Transportation Services Department oversees the operation of parking garages, parking lots, and on -street (metered) parking. Parking Division enforces parking regulation in the central business district, while the Police Department enforces parking regulations in residential areas. Recognizing that there is a high demand for parking in downtown Iowa City, Parking Services promotes turnover of on -street metered parking spaces in the core of the downtown. Customers with longer-term needs are encouraged to use the garages or on streets in outlying areas. There are a total of 21.38 (FTE) employees who work in the Parking Division. Parking System Utilization, Demand and Other Considerations: The City tracks Parking System utilization by the hour in each of the cashiered facilities. During peak hours, the occupancy rate regularly runs between 85% to 100% depending on the time of year and the time of day. Peak hours for the Parking System are 10:00 am through 3:00 pm with high occupancy rates regularly maintained through 5:30 pm daily. In addition to hourly parking, the Parking System offers monthly permit parking. The Parking System currently has 2,051 permit holders. The largest customer for the monthly permit parking is the University of Iowa with 615 permits. There are currently over 2,000 people on the Parking System's waiting lists for monthly permit parking. In addition to monthly and permit parking, the Parking System has parking space contracts with the Graduate Hotel in the amount of $8,500.00 per month and with the Hotel Vetro in the amount of $2,125.00 per month. The City regularly evaluates parking demand. As development has continued to move south of Burlington Street and the central business district, the need for additional spaces in this area has increased. The underlying economic growth and employment base of the City continues to contribute to increased demand. Parking System Rates and Charges:_Rates for the Parking System are set by the City Council. Parking System rates are reviewed annually. The rates vary by facility and the hourly and monthly rates and charges as approved by the City Council are listed below by facility. These rates include the most recent hourly rate adjustments that were approved by the City Council on June 4, 2013 and became effective July 1, 2013 and the most recent monthly permit rate adjustments that were approved by the City Council became effective July 1, 2017. Parking Facilities: The Parking System consists of 2 cashiered garages and 3 unattended garages, as well as, various parking lots and on -street metered parking in the Central Business District. The City completes regular visual inspections of the parking garages to evaluate their current appearance and general condition. The garages are visually inspected for the condition of the main structural elements (columns, girders, beams), parking decks, expansion and control joints, and their coating systems. Based on the most recent inspections, all of the Parking System's facilities are in excellent condition. All garages will continue to receive routine inspections and maintenance. A description of each parking facility, their locations, access, the number of spaces, monthly permits, and current rates are as follows: Capitol Street Garage Constructed 1980 Address 220 S. Capitol Street Description Located on a parcel confined by Burlington Street to the south, Capitol Street to the west, Clinton Street to the east and the Old Capitol Town Center to the north. Access This is a cashiered facility with two entry lanes off of Clinton Street; two entry lanes off of Capitol Street; and four exit lanes onto Capitol Street. Spaces 875 Monthly Permits 178 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 122 Changes in Capitol Street Garage rates over the last ten fiscal years: *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 *2018 Monthly Rate increase from $80.00 to $85.00 Dubuque Street Garage Constructed Hourly Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 *2018 Monthly Rate increase from $80.00 to $85.00 Dubuque Street Garage Constructed 1980 Address 220 S. Dubuque Street Description Located on a parcel confined by Burlington Street to the south, Dubuque Street to the west, 2011 Linn Street to the east and the Sheraton Hotel to the north. Access This is a cashiered facility with two entry lanes off of Dubuque Street; one entry lanes off 0% of Linn Street; and two exit lanes onto Dubuque Street. Spaces 625 Monthly Permits 264 Rates Hourly $1.00 per hour, with first hour free 2015 Monthly $85.00 per month Changes in Dubuque Street Garage rates over the last ten fiscal years: *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 ** 2018 Monthly Rate increase from $80.00 to $85.00 Chauncey Swan Garage Constructed Hourly Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 ** 2018 Monthly Rate increase from $80.00 to $85.00 Chauncey Swan Garage Constructed 1993 Address 415 E. Washington Street Description Located on a parcel confined by College Street to the south, Van Buren Street to the east, Gilbert Street to the west and Washington Street to the north. Access This is an automated facility with one entry/exit lane off of College Street; one entry/exit lane off of Washington Street; and one entry/exit lane through the Recreation Center parking lot onto Burlington Street. Spaces 475 Monthly Permits 261 Rates Hourly $0.75 per hour Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 123 Changes in Chauncey Swan Garage rates over the last ten fiscal years: **2018 Monthly Rate increase from $80.00 to $85.00 Tower Place Garage Constructed 2001 Address 335 E. Iowa Avenue Description Located on a parcel confined by Iowa City Senior Center to the south, Gilbert Street to the east, Linn Street to the west and Iowa Avenue to the north. Access This is a cashiered facility with two entry lanes off of Iowa Avenue; three exit lanes onto Iowa Avenue; and secured permit -only entry and exit off of Gilbert Street. Spaces 510 Monthly Permits 266 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month Changes in Tower Place Garage rates over the last ten fiscal years: Hourlv Monthly 2010 0% 17% 2011 0% 14% 2012 0% 0% 2013 0% 0% 2014 25% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% **2018 Monthly Rate increase from $80.00 to $85.00 Tower Place Garage Constructed 2001 Address 335 E. Iowa Avenue Description Located on a parcel confined by Iowa City Senior Center to the south, Gilbert Street to the east, Linn Street to the west and Iowa Avenue to the north. Access This is a cashiered facility with two entry lanes off of Iowa Avenue; three exit lanes onto Iowa Avenue; and secured permit -only entry and exit off of Gilbert Street. Spaces 510 Monthly Permits 266 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month Changes in Tower Place Garage rates over the last ten fiscal years: *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 **2018 Monthly Rate increase from $80.00 to $85.00 Harrison Street Garage Constructed 2017 Address 175 E. Harrison Street Description Located on a parcel confined by Harrison Street to the north, Sabin Townhomes to the east, Prentiss St to the south, and Midwest One to the west. Access This is an automated facility with one entry lane and two exit lanes off of Harrison Street. Spaces 600 Monthly Permits 302 Rates Hourly $0.75 per hour Monthly $85.00 per month Hourlv Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 **2018 Monthly Rate increase from $80.00 to $85.00 Harrison Street Garage Constructed 2017 Address 175 E. Harrison Street Description Located on a parcel confined by Harrison Street to the north, Sabin Townhomes to the east, Prentiss St to the south, and Midwest One to the west. Access This is an automated facility with one entry lane and two exit lanes off of Harrison Street. Spaces 600 Monthly Permits 302 Rates Hourly $0.75 per hour Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 124 Changes in Harrison Street Garage rates over the last ten fiscal years: Hourly Monthly 2017* 100% 100% 2018 0% 0% 2019 0% 0% *Garage was opened in fiscal year 2017. On -Street Parking Meters: The City operates short-term meters (1-2 hours) concentrated in the core of the downtown. These meters are intended for shopper's use. Each parking meter dial states the maximum time. Longer term meters become more common away from the core downtown area. Meters 1,177 Rates Hourly $0.75 - $1.50 per hour based on proximity to the central business district and usage. Parking Lots: The City operates seven parking lots in the Central Business District. They consist of a mix of permit spaces and metered spaces. Spaces 245 Monthly Permits 59 Rates Hourly $0.75 - $1.50 per hour based on proximity to the central business district and usage. Monthly $65.00 per month Moped Parking: FY12 saw the implementation of a parking permit program for mopeds, scooters, and motorcycles. Spaces were designated throughout the Central Business District to accommodate the use of mopeds and scooters while also removing them from parking in bicycle racks. Spaces 206 Total Annual Permits 721 Rates Annual $90.00 per year The remainder of this page was left blank intentionally. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Net Revenue Annual Debt Service Ended Available for Ratio of June 30 Revenue Expenses' Debt Service Principal Interest Total Coverage Parking Revenue 20106 5,509 3,149 2,360 390 504 894 2.64 2011 5,389 2,920 2,469 420 391 811 3.04 2012 4,945 3,034 1,911 500 339 839 2.28 2013 5,122 3,549 1,573 515 324 839 1.87 2014 5,365 2,969 2,396 530 308 838 2.86 20157 5,620 3,828 1,792 540 254 794 2.26 2016 - - - - - - - 2017 2018 2019 - - - - - Wastewater Treatment Revenue° 20106 13,174 5,050 8,124 4,205 2,307 6,512 1.25 20116 13,281 5,477 7,804 1,840 2,054 3,894 2.00 2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52 2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29 2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31 2017 13,383 6,357 7,026 3,625 985 4,610 1.52 2018 13,181 6,622 6,559 3,580 756 4,336 1.51 20198 13,548 6,840 6,708 6,135 539 6,674 1.68 Water Revenues 20106 8,336 5,153 3,183 680 1,055 1,735 1.83 2011 8,354 5,464 2,890 1,110 902 2,012 1.44 20126 8,649 5,653 2,996 1,200 861 2,061 1.45 20136 9,342 6,348 2,994 845 758 1,603 1.87 20146 8,613 5,818 2,795 1,335 650 1,985 1.41 2015 8,715 5,632 3,083 1,380 610 1,990 1.55 2016 9,323 5,387 3,936 1,715 579 2,294 1.72 2017 9,529 6,332 3,197 1,760 524 2,284 1.40 2018 9,838 6,949 2,889 1,455 394 1,849 1.56 2019 10,078 6,888 3,190 1,510 280 1,790 1.78 Notes: ' Excludes depreciation and interest. 2Includes principal and interest of revenue bonds only. 3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 6 Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service. 7 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service. 8 Ratio of Coverage excludes the amount called early of $2,670,000. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page 125 Urban Renewal Area: CITY — UNIVERSITY PROJECT I The City, acting under the authority of Chapter 403 of the Code of Iowa, has established an urban renewal area designated as "City - University Project I Urban Renewal Area" (the "Urban Renewal Area") designed to implement their comprehensive plan. Description of CITY — UNIVERSITY PROJECT I Urban Renewal Plan/Area On October 2, 1969, the Iowa City Council adopted Resolution No. 2157 approving the City - University Project I Urban Renewal Plan (Project No. IA R-14) which plan has been modified and amended from time to time (said plan, as amended, is hereinafter referred to as the "Urban Renewal Plan" or "Plan"). The Urban Renewal Area is located in the heart of City's downtown. The northern edge of the original area consists of part of Washington Street with the western edge consisting of the eastern bank of the Iowa River. The southern edge consisted of a part of Court Street to the eastern edge which ran to Linn Street. In 2001, the original urban renewal area was expanded north to Iowa Ave, south to Prentiss Street and east to Gilbert Street. In 2012, the amended urban renewal area was extended south of the existing boundaries. In 2016, the amended urban renewal area was expanded to include a one block area bounded by Iowa Avenue on the north, Van Buren Street on the East, Washington Street on the South and Gilbert Street on the West. The original Urban Renewal Area is classified as a blighted area and does not have a sunset or expiration date. The 2001 amended urban renewal area has, at a minimum, a twenty year life and will expire after fiscal year 2023-24. The 2012 amended urban renewal area is classified as a blighted area and does not have a sunset or expiration date. The 2016 amended urban renewal area will expire, at a minimum, twenty years from the calendar year following the calendar year in which the City first certifies debt for the amended area. The objectives of the Plan called for the City to undertake a program for the clearance and reconstruction or rehabilitation to enhance and promote the economic development within the Urban Renewal Area. Through the implementation of the Plan, the City's overall goal is to develop and redevelop the Urban Renewal Area; to stimulate through public action and commitments, private investment which creates employment and increases to the tax base within the City. In general, tax increment revenues from an Urban Renewal Area are determined annually by multiplying the aggregate of all local taxes, excluding the portion of the overall tax rate associated with debt service, physical plant and equipment and the instructional support program levies applicable to the taxable valuation of all property within the Urban Renewal Area, by the aggregate difference ("Tax Increment Valuation Available") between the current taxable valuation and the original taxable valuation upon creation of the Urban Renewal Area. In general, the original taxable valuation reflects the valuation upon creation of the Urban Renewal Area (the "Frozen Base Valuation"). Johnson County (the "County") collects the real estate taxes and distributes the Tax Increment Revenues to the City to use for repayment of the urban renewal revenue bonds. Tax Increment Revenues are generally distributed by the County to the City in the months of October and April of each calendar year. The remainder of this page was left blank intentionally. TOP TAXPAYERS LOCATED WITHIN URBAN RENEWAL AREA Taxpayer MIDWESTONE BANK RISE AT RIVERFRONT CROSSING OWNER LLC IOWA CITY HOTEL ASSOCIATES LLC GRADUATE IOWA CITY OWNER, LLC OC GROUP LC RIVERFRONT CROSSING HOSPITALITY OWNER LLC PLAZA TOWERS LLC MOEN, MARC B FIRST NATIONAL BANK IOWA CITY ICF LLC Total Classification Financial Institution Residential & Comm. Condo Rentals Hilton Garden Inn Hotel Gaduate Hotel Old Capital Mall Residential & Comm. Condo Rentals Residential & Comm. Condo Rentals Residential & Comm. Condo Rentals Financial Institution Residential & Comm. Condo Rentals Taxable Valuation $ 18,637,551 $ 16,173,442 $ 14,623,650 13,609,404 9,915,912 9,211,257 8,488,241 8,175,475 7,915,158 7,232,307 $ 113,982,397 (1) The Total Taxable Valuation in the Urban Renewal Area for 1/1/2018 for fiscal year 2019-20 is $463,563,686. FY2019/20 % of Total Taxable Valuations (1) 4.02% 3.49% 3.15% 2.94% 2.14% 1.99% 1.83% 1.76% 1.71% 1.56% 24.59% TAX INCREMENT TAX RATES Total City Tax Rate City Debt Service Iowa City CSD Debt Service Iowa City CSD PPEL Iowa City CSD ISPL Kirkwood Debt Service Johnson County Debt Service Tax Increment Tax Rate Iowa City Downtown SSMID (2) Tax Increment Tax Rate in SSMID FY2012-13 FY2013-14(1) FY2014-15(1) FY2015-16(1) FY2016-17(1) FY2017-18(1) FY2018-19(1) FY2019-20(1) $ 39.49917 $ 38.63862 $ 38.52756 $ 38.81115 $ 38.74878 $ 38.60513 $ 39.16292 $ 38.60077 (4.44287) (4.02965) (4.12963) (3.92833) (3.82846) (3.57846) (3.22846) (2.97846) (0.69729) (0.63500) (0.59831) (0.58612) (0.55017) (0.52868) (1.95540) (1.44867) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (0.12405) (0.08550) (0.08991) (0.07069) (0.10140) (0.12733) (0.06273) (0.20000) (0.20000) (0.20000) (0.27005) (0.21003) (0.25000) (0.25000) (0.25000) (0.62813) (1.61074) (2.05908) (1.77673) (2.00829) (2.13947) (2.24196) (2.25950) $ 31.86088 $ 30.36918 $ 29.78504 $ 30.49001 $ 30.41114 $ 30.33712 $ 29.68977 $ 29.93141 2.00000 2.00000 2.00000 2.00000 1.79500 2.00000 2.00000 2.00000 $ 33.86088 $ 32.36918 $ 31.78504 $ 32.49001 $ 32.20614 $ 32.33712 $ 31.68977 $ 31.93141 (1) Any urban renewal area created after April 24, 2012, will not be eligible to receive the benefits of the local school district's instruction support levy (ISPL) tax revenues, unless the ISPL is necessary to pay principal and interest on the urban renewal debt and the school passes a special resolution approving such use of the revenues. Urban renewal debt incurred on or before April 24, 2012, may receive the benefit of ISPL tax revenues for fiscal year 2013-14 and following only if the ISPL is necessary to pay principal and interest on the urban renewal area debt and the city certifies to the school district by July 1 of each fiscal year, beginning July 1, 2013. The school district must then pay those amounts during that fiscal year (Nov. 1 and May 1) back to the City's urban renewal fund. (2) In fiscal year 2012-13, the City created a Self Supporting Municipal Improvement District (SSMID) within a portion of the Urban Renewal Area. The tax levy for the SSMID increases the tax increment rate but is only applied to certain properties when the County is apportioning the tax increment revenue request. HISTORICAL AND PROJECTED TAXABLE VALUATIONS WITHIN THE URBAN RENEWAL AREA (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. Total taxable value increased in fiscal year 2013-14 due to 2012 Amended Area of the Urban Renewal Area. (2) Taxable value frozen base decreases due to commercial and industrial rollback amounts starting in fiscal year 2014-15 and multi -residential rollback amounts starting in fiscal year 2016-17. Taxable Total Taxable Taxable New Taxable New Taxable Valuation Taxable Assessment Fiscal Taxable Value Valuation Valuation Valuation Available for Valuation Date Year Value 1 Frozen Base (2) Available Park @ 201 Chauncey Certification Certified 1/1/2010 FY 2012 195,540,284 89,677,074 105,863,210 0 0 105,863,210 0 1/1/2011 FY 2013 199,993,156 90,475,486 109,517,670 0 0 109,517,670 3,925,401 1/1/2012 FY 2014 306,901,127 196,103,957 110,797,170 0 0 110,797,170 9,358,858 1/1/2013 FY 2015 316,944,391 178,306,881 138,637,510 2,880,000 0 141,517,510 16,477,686 1/1/2014 FY 2016 309,883,790 159,027,124 150,856,666 6,041,734 0 156,898,400 17,156,898 1/1/2015 FY 2017 336,428,957 147,479,758 188,949,199 6,461,998 0 195,411,197 25,360,541 1/1/2016 FY 2018 359,905,681 140,030,863 219,874,818 6,564,472 0 226,439,290 23,992,851 1/1/2017 FY 2019 407,922,479 119,175,408 288,747,071 6,691,956 2,040,000 297,479,027 46,941,691 1/1/2018 FY 2020 463,307,274 134,766,543 328,540,731 6,796,297 6,399,369 341,736,397 72,764,197 1/1/2019 FY 2021 463,307,274 134,766,543 328,540,731 6,796,297 16,345,771 351,682,799 19,668,135 1/1/2020 FY 2022 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 51,967,983 1/1/2021 FY 2023 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 50,884,506 1/1/2022 FY 2024 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 49,624,959 1/1/2023 FY 2025 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 48,527,450 1/1/2024 FY 2026 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 47,586,966 1/1/2025 FY 2027 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 42,454,565 1/1/2026 FY 2028 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 38,266,323 1/1/2027 FY 2029 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 38,003,388 1/1/2028 FY 2030 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,880,608 1/1/2029 FY 2031 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,730,431 1/1/2030 FY 2032 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,717,902 1/1/2031 FY 2033 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,646,735 1/1/2032 FY 2034 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,665,111 1/1/2033 FY 2035 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,658,429 1/1/2034 FY 2036 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,626,689 (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. Total taxable value increased in fiscal year 2013-14 due to 2012 Amended Area of the Urban Renewal Area. (2) Taxable value frozen base decreases due to commercial and industrial rollback amounts starting in fiscal year 2014-15 and multi -residential rollback amounts starting in fiscal year 2016-17. TAX INCREMENT CASH FLOW AND ANTICIPATE DEBT COVERAGE (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. (2) The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of $.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting in fiscal year 2012-13, a portion of the taxable valuation certified will beat the higher rate due to its location in the SSMID. (3) The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at the higher SSMID rate. (4) The balance includes TIF reserve fund of $207,845. Taxable Valuation Taxable Available Certified 2012DTIF 2016E TIF Other Total Annual Ending Available Requested Assessment Fiscal Available for Valuation TIF Tax Increment Tax Increment Other Total Revenue Revenue TIF TIF Surplus/ Cash Debt Debt Date Year Certification (1) Certified Tax Rate (2) Revenues (3) Revenues Revenues Revenues Bonds Bonds Debt Debt Deficit Balance (4) Coverage Coverage 1/1/2010 FY 2012 105,863,210 0 33.01166 3,494,720 0 0 0 0 0 0 0 0 662,510 n.a. n.a. 1/1/2011 FY 2013 109,517,670 3,925,401 31.86088 3,489,329 128,072 31,795 159,867 0 0 159,867 159,867 0 662,510 n.a. n.a. 1/1/2012 FY 2014 110,797,170 9,358,858 30.36918 3,364,819 289,650 148 289,798 75,335 0 214,315 289,650 148 662,658 44.66 1.55 1/1/2013 FY 2015 141,517,510 16,477,686 29.78504 4,215,105 502,339 5,090 507,429 75,335 0 427,004 502,339 5,090 667,748 55.95 1.05 1/1/2014 FY 2016 156,898,400 17,156,898 30.49001 4,783,834 532,776 2,434 535,210 205,335 0 172,256 377,591 157,619 825,367 23.30 1.00 1/1/2015 FY 2017 195,411,197 25,360,541 30.41114 5,942,677 805,965 273,412 1,079,377 204,035 273,173 307,715 784,923 294,454 1,119,821 12.45 1.00 1/1/2016 FY 2018 226,439,290 23,992,851 30.33712 6,869,516 727,874 392,552 1,120,426 207,345 384,150 229,624 821,119 299,307 1,419,128 11.61 1.00 1/1/2017 FY 2019 297,479,027 46,941,691 29.68977 8,832,084 1,393,688 276,767 1,670,455 205,185 384,150 244,454 833,789 836,666 2,255,794 14.99 1.00 1/1/2018 FY 2020 341,736,397 72,764,197 29.93141 10,228,652 2,177,935 117,620 2,295,555 207,485 384,150 1,703,920 2,295,555 0 2,255,794 17.29 1.00 1/1/2019 FY 2021 351,682,799 19,668,135 29.93141 10,526,362 588,695 0 588,695 204,545 384,150 0 588,695 0 2,255,794 17.88 1.00 1/1/2020 FY 2022 365,465,262 51,967,983 29.93141 10,938,891 1,555,475 0 1,555,475 206,325 1,349,150 0 1,555,475 0 2,255,794 7.03 1.00 1/1/2021 FY 2023 365,465,262 50,884,506 29.93141 10,938,891 1,523,045 0 1,523,045 207,845 1,315,200 0 1,523,045 0 2,255,794 7.18 1.00 1/1/2022 FY 2024 365,465,262 49,624,959 29.93141 10,938,891 1,485,345 0 1,485,345 203,945 1,281,400 0 1,485,345 0 2,255,794 7.36 1.00 1/1/2023 FY 2025 309,129,082 48,527,450 29.93141 9,252,669 1,452,495 0 1,452,495 204,745 1,247,750 0 1,452,495 0 2,255,794 6.37 1.00 1/1/2024 FY 2026 309,129,082 47,586,966 29.93141 9,252,669 1,424,345 0 1,424,345 205,095 1,219,250 0 1,424,345 0 2,255,794 6.50 1.00 1/1/2025 FY 2027 309,129,082 42,454,565 29.93141 9,252,669 1,270,725 0 1,270,725 204,975 1,065,750 0 1,270,725 0 2,255,794 7.28 1.00 1/1/2026 FY 2028 309,129,082 38,266,323 29.93141 9,252,669 1,145,365 0 1,145,365 204,365 941,000 0 1,145,365 0 2,255,794 8.08 1.00 1/1/2027 FY 2029 309,129,082 38,003,388 29.93141 9,252,669 1,137,495 0 1,137,495 203,245 934,250 0 1,137,495 0 2,255,794 8.13 1.00 1/1/2028 FY 2030 309,129,082 37,880,608 29.93141 9,252,669 1,133,820 0 1,133,820 206,770 927,050 0 1,133,820 0 2,255,794 8.16 1.00 1/1/2029 FY 2031 309,129,082 37,730,431 29.93141 9,252,669 1,129,325 0 1,129,325 204,925 924,400 0 1,129,325 0 2,255,794 8.19 1.00 1/1/2030 FY 2032 309,129,082 37,717,902 29.93141 9,252,669 1,128,950 0 1,128,950 207,800 921,150 0 1,128,950 0 2,255,794 8.20 1.00 1/1/2031 FY 2033 309,129,082 30,646,735 29.93141 9,252,669 917,300 0 917,300 0 917,300 0 917,300 0 2,255,794 10.09 1.00 1/1/2032 FY 2034 309,129,082 30,665,111 29.93141 9,252,669 917,850 0 917,850 0 917,850 0 917,850 0 2,255,794 10.08 1.00 1/1/2033 FY 2035 309,129,082 30,658,429 29.93141 9,252,669 917,650 0 917,650 0 917,650 0 917,650 0 2,255,794 10.08 1.00 1/1/2034 FY 2036 309,129,082 30,626,689 29.93141 9,252,669 916,700 0 916,700 0 916,700 0 916,700 0 2,255,794 10.09 1.00 (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. (2) The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of $.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting in fiscal year 2012-13, a portion of the taxable valuation certified will beat the higher rate due to its location in the SSMID. (3) The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at the higher SSMID rate. (4) The balance includes TIF reserve fund of $207,845. Item Number: 4. CITY OE IOWA CITY www.icgov.org February 6, 2020 Memo from Historic Preservation Commission Chair and Historic Preservation Planner: Historic Preservation Commission Annual Planning Session Report and Work Plan for Calendar Year 2020 ATTACHMENTS: Description Memo from Historic Preservation Commission Chair and Historic Preservation Planner: Historic Preservation Commission Annual Planning Session Report and Work Plan for Calendar Year 2020 r � ,:,® CITY OF IOWA CITY ��, M 4 � T4 k MEMORANDUM Date: February 4, 2020 To: City Council Geoff Fruin, City Manager From: Kevin Boyd, Chair, Historic Preservation Commission Jessica Bristow, Historic Preservation Planner Re: Historic Preservation Commission Annual Planning Session Report and Work Plan for Calendar Year 2020 The Iowa City Historic Preservation Commission held its annual planning session on Thursday, December 12, 2019, as part of its regular monthly meeting, at 5:30 p.m. in Emma Harvat Hall. Each year the Commission holds a planning session to review its progress in implementing the goals and objectives of the Historic Preservation Plan, and to set objectives for the upcoming year. The results of that planning session, the Historic Preservation Commission's Annual Work Plan for Calendar Year 2020, is intended to serve as a guide for the Commission's activities for the upcoming calendar year. The current work plan was reviewed and approved by the Commission at their January 9, 2020 regular meeting and is now presented to City Council. Iowa City Historic Preservation Commission City Hall, 410 E Washington Street, Iowa City. IA. 52240 Commission Work Plan for Calendar Year 2020 Recent Successes In 2018 and 2019, the Commission and Staff saw many large projects to completion. These projects are included here. Civil Rights Grant: This two-part project with grant funding from the National Park Service was completed with the successful listing in the National Register of Historic Places of both the Tate Arms and the Iowa Federation Home. Educational signage and digital online materials were also created. The research and information from the project will be used in future presentations to educate and inform the public. 2040 Waterfront Drive Intensive Survey: Funded in part through a Certified Local Government Grant, an intensive survey of the property at 2040 Waterfront Drive was completed. The final document will be provided to the Commission and the property owner for their review in the coming months. National Register Nomination for the Clinton Street and Railroad Depot Historic District: Funded in part through a Certified Local Government Grant, the potential historic district was nominated to the National Register of Historic Places. The State Nomination Review Committee voted unanimously to recommend the district to the National Park Service. Because of the objection of the majority of the owner's in the district, the National Park Service reviewed the district for eligibility only. On October 21, 2019, the National Park Service determined that the District is eligible for listing in the National Register of Historic Places. If the majority of owners change their mind about the listing, the District would be listed upon receipt of a notarized statement to this effect sent to the State Historic Preservation Office. Pre -planning for Relocation of the Sanxay-Gilmore House: In January 2019, the consultant, Douglas Steinmetz, completed the evaluation of the Sanxay-Gilmore House which was partially funded through an emergency Historical Resource Development Program grant from the State Historical Society of Iowa. The report outlined the concerns and considerations to be addressed as planning for the continued existence of the house move forward. Given the current delay allowed by the University of Iowa, who now owns the property, the extensive planning and preparation that will be involved if the house is moved will be a project that is not undertaken in 2020. Historic Preservation Fund: With the implementation of the fund in FY 2018, the Fund has approved 20 grants or loans improving 18 properties. This is a popular program which has helped property owners maintain the historic character of their properties and has helped keep valuable material out of the landfill. Iowa City Historic Preservation Commission City Hall, 410 E Washington Street, Iowa City. IA. 52240 Priority Issues for 2020 Downtown National Register Historic District: The drafting of the Nomination for the Downtown District to the National Register of Historic Places is in progress by consultant Alexa McDowell of AKAY Consulting. The current schedule is for the Nomination to be reviewed by the State Nomination Committee in June 2020 with review and comment by the Commission proceeding that in May. Because of public interest and the timing corresponding with Preservation Month, a public presentation is proposed. This project requires minimal Commission time in public outreach and education. Annual Historic Preservation Awards: The annual awards highlights successful preservation work within the community and the expertise of contractors and consultants. As one of the Commission's main forms of community outreach, the awards are a high priority every year and attract an audience of about 100 people. The annual awards have been moved to May to coincide with Preservation Month activities. The awards will require Commission involvement for nominating properties and for work on the awards sub -committee producing the awards. Summit Street Monument: In 2019 the consultant, Atlas Preservation, completed the "Summit Street Monument Assessment and Conservation Options Plan" that was financed in part through a Certified Local Government Grant. Given the ongoing deterioration of the monument, the Commission will review the options and recommend an appropriate action to City Council. Preliminary work and discussion on the proposal could be completed by a sub -committee of the Commission. Update of the College Green Historic District: In 2016, the Commission approved the relocation of the Houser -Metzger House from 422 Iowa Avenue to 623 College Street where the contributing structure had been damaged beyond repair by fire and water. In order for the relocated house to be considered contributing to the Historic District, an amendment to the National Register -listed district is required as a first step. This amendment will be reviewed by the Commission following revision by staff and the District representative. Update of the Iowa City Preservation Handbook (Maps): The most recent version of the handbook was updated in 2010 and does not include several recent changes and needs to be reviewed for accuracy. While the compilation of the updated handbook, which would be approved by City Council as a final step, will extend beyond 2020, a review of the maps for property status is a high priority. Since many properties have changed status in the past ten years, the maps, which are the basis for review -type, application of exceptions, and in some cases eligibility of the Historic Preservation Fund, are outdated. This project will involve staff and individual Commissioners or a sub -committee to review property status. The full Commission would review and approve updated maps. New Commissioner Recruitment: With two open positions and three additional openings this summer, recruiting new commissioners is an ongoing priority task for existing commissioners. Iowa City Historic Preservation Commission City Hall, 410 E Washington Street, Iowa City. IA. 52240 Future projects and potential projects beyond 2020 Montgomery Butler House: In 1998, as part of a Memorandum of Agreement for the development of the new water plant, the City mothballed the Montgomery/Butler House, a significant historic resource, for roughly $70,000. In 2015, a meeting of interested parties occurred in the hope of determining a path forward for the use and rehabilitation of the house without success. Staff was recently informed that the enclosures and protections for the house are failing and recommends that planning for the future use of the property becomes a priority. Likely stakeholders will include local preservationists, commissioners, FHP, planning and parks staff as well as community leaders. While time is impacting the integrity of the structure, this project will not begin this year. State Preservation Conference: This continues to be a future interest of both staff and the Commission. It is unlikely that the State would plan to hold the conference in the eastern half of the state prior to 2022. Still, with Iowa City's involvement and interest in Historic Preservation, hosting the conference is part of the Commission's long-range plan. Reconnaissance Survey of Kirkwood Avenue and Lucas Farms Neighborhoods: These neighborhoods contain a significant amount of historic resources that have never been reviewed or researched. The owners in the neighborhoods could benefit from the information that could be found about their properties. The first step in any neighborhood survey is a reconnaissance survey that could be performed by minimally trained volunteers. With an active neighborhood group and interested Commissioners, this could begin at any time with a formal survey by a consultant in future years. Increased Digital online presence: The City has valuable resources and information on historic properties in several different formats. Currently the ability for the public to access this information is dependent upon the format of the information. Digitizing hardcopy information and combining it in with existing digital information in a searchable online database would make this information about city history more available for property owners and researchers. Evaluation of Mid-century Modern Housing Stock: Since these properties have reached historic status, Commissions across the country are developing plans for how to evaluate them. In Iowa City, many of the areas where they are concentrated have not been reviewed but could begin with reconnaissance - level surveys in future years. Iowa City Historic Preservation Commission City Hall, 410 E Washington Street, Iowa City. IA. 52240 Staff project update Education and outreach: Staff will be presenting a lecture based on the work of the Civil Rights Grant in February during Black History Month. Staff will also lead a downtown tour on April 1 as part of a conference requested by the Iowa City Downtown District. Staff will also host a student for a job - shadowing experience this spring. Implementation of digital review process: As part of the new permitting software being adopted by the City this spring, staff will be integrating the current non -digital review process into the new system. University of Iowa Planning Project: This ongoing project for the 2019-2020 UI school year involves graduate students in the Planning department in a project focusing on downtown with limited staff and chair involvement. Item Number: 5. CITY OE IOWA CITY www.icgov.org February 6, 2020 Email from Jennifer Baum: Sharp Shooters [Staff Response Included} ATTACHMENTS: Description Email from Jennifer Baum: Sharp Shooters [Staff Response Included] Kellie Fruehling From: jennifer baum <jen.fiona.dashill@gmail.com> Sent: Tuesday, February 4, 2020 6:48 PM To: Bill Campbell Cc: Council; Geoff Fruin Subject: Re: FW: sharp shooters Thanks very much for getting back to me. I spoke with Kurt and Russ the following day and they gave me the skinny on the set up. We fully respect the security that has been taken to be so far from the residences, however, up here in Deweyville the cemeteries are our backyard. We respect them and treat them as such. It concerns us when we see a bait station so close to the entrance of the part of our back yard that is not off limits during the shooting times. We prefer safe to sorry, and are deeply grateful the City and White Buffalo are so helpful and accommodating. Thank you again for getting back to me. See you around Deweyville! best regards, jennifer Mayor of Deweyville, ad hoc On Tue, Feb 4, 2020 at 5:14 PM Bill Campbell <Bill-Campbell@iowa-city.org> wrote: Jennifer, Thank you for your email. The bait site that you are referring to in Oakland Cemetery is currently about 220 yards from the closest residence. We believe White Buffalo exercised appropriate judgement in selecting this site location. That said, the City has asked White Buffalo if there are other options in that area. They have located a site that is slightly further from the closest residence, at just over 300 yards. The Oakland Cemetery site will be moved to this new location. Sincerely, Y1... 4 Captain Bill Campbell $at Commander PWra+ Support Services Division kmraCityPolioe Department (319)35&5286 From: jennifer baum[mailto:len.fiona.dashill@email.com] Sent: Sunday, February 2, 2020 7:42 PM To: Oakland Cemetery <Cemetery@iowa-city.org> Cc: Council <Council@iowa-city.org> Subject: sharp shooters Hey Russ and Kurt - i just got a report from a Deweyvillian that a bait sight is set up behind the shop next to the St. Joe's gate for the next deer shoot. That is uncomfortably close to St. Joes, where we may still go during the daylight shoot hours. Can that be moved back to the Hickory Hill entrance area again? If not all the way back where it was before maybe behind the Koser's house or at the Deeded Body gazebo at least? And yes, yes, yes, sharp shooters, very safe, know what they're doing, etc etc etc. i know. But still. Let me know, thanks. srsly. really too close to Deweyville for us. really too close. not cool. best, jennifer Mayor of Deweyville Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. INCITY OE IOWA CITY www.icgov.org February 6, 2020 2020 Building Statistics ATTACHMENTS: Description 2020 Building Statistics Item Number: 6. City of Iowa City 2020 Building Statistics Value/Type of Construction January February March April May June July August September October November December TOTAL NON-TAXABLE Single Family -$ 1,293,769 1,293,769 Number of Permits 4 4 Duplex - $ 315,000 315,000 Number of Permits 1 1 Sororities & Fraternities - $ 0 Number of Permits 0 Multiple Units 4,000,000 4,000,000 Number of Permits 1 1 Number of Buildings 1 1 Number of Dwelling Units 24 24 Mix- Commercial/Residential 0 Number of Permits 0 Number of Buildings 0 Number of Dwelling units 0 Motels, Hotels - $ 0 Number of Permits 0 Churches - $ 0 Number of Permits 0 Industrial - $ 0 Number of Permits 0 Service Stations - $ 0 Number of Permits 0 Hospitals & Institutions - $ 0 Number of Permits 0 Offices, Banks, Prof. - $ 0 Number of Permits 0 Public Works & Utilities - $ 0 Number of Permits 0 Schools - $ 0 Number of Permits 0 Stores & Customer Svc. - $ 0 Number of Permits 0 Misc. Structures/Fences - $ 0 Number of Permits 0 Remodel, Residential - $ 586,338 586,338 Number of Permits 21 21 Remodel, Commercial - $ 2,185,686 2,185,686 Number of Permits 7 7 Remodel, Public Works - $ 0 Number of Permits 0 Accessory Structures 0 Number of Permits 0 Condo Conversion - No Value 0 TOTAL VALUE 8,380,793 8,380,793 TOTAL PERMITS 34 34 Demolition: Residential units lost 18 18 Item Number: 7. INCITY OE IOWA CITY www.icgov.org February 6, 2020 Planning & Zoning Commission: January 16 ATTACHMENTS: Description Planning & Zoning Commission: January 16 MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION JANUARY 16, 2020 —7:00 PM —FORMAL MEETING E M M A J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Larry Baker, Carolyn Dyer, Mike Hensch, Phoebe Martin, Max Parsons, Mark Signs, Billie Townsend MEMBERS ABSENT: STAFF PRESENT: Ray Heitner, Sarah Hekteon, Tim Hennes, Anne Russett, Danielle Stutzman OTHERS PRESENT: Adam Kos, Jon Marner, Phil O'Brien, Rob Decker, Nathan Griffith, Bill Gearhart RECOMMENDATIONS TO CITY COUNCIL: By a vote of 0-6 (Hensch recused) the Commission recommends denial of CZ19-06 an application submitted by CJ Moyna & Sons for a rezoning of approximately 32.87 acres from County Agricultural (A) to County Commercial (C) and 0.09 acres from County Residential (R) to County Commercial (C) in unincorporated Johnson County. By a vote of 4-2 (Baker and Martin dissenting) the Commission recommends approval of SUB19- 16, an application submitted by CJ Moyna & Sons for a preliminary plat of the 218 Commercial Park subdivision, a 5 -lot commercial subdivision with eight outlots in unincorporated Johnson County. By a vote of 7-0 the Commission recommends approval of ZCA19-06 an application submitted by Phil O'Brien requesting an amendment to the zoning code to allow animal related commercial uses in the Commercial Highway (CH -1) zone to allow for the development of a community based indoor dog park and recreation center at 2513 North Dodge Street. By a vote of 5-2 (Dyer and Townsend dissenting) the Commission recommends approval of DRC19-04, an application submitted by Rob Decker requesting a Level II design review which includes a 7 -story height bonus request for two 15 -story buildings located at 12 East Court Street including the following staff recommendations: 1. Re -design of the Capitol Street right-of-way, for review and approval by staff, to ensure consistency with the Riverfront Crossings Master Plan and other recent City street reconstructions, like Washington Street in downtown. 2. An additional administrative review of the management plan that includes details regarding staffing, cameras, accessing video, etc. prior to the issuance of a building permit. 3. Additional detail and justification on the academic amenity space. 4. Secure fencing around bicycle parking must be non-opaque (e.g. chain-link). 5. If the building plans deviate substantively from the approved design review plans, these changes must be reviewed and approved by the City Council. An example of a substantive change is a change to exterior building materials. CALL TO ORDER: Planning and Zoning Commission January 16, 2020 Page 2 of 29 Hensch called the meeting to order at 7:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. CASE NO. CZ19-05 AND SUB19-16: Applicant: CJ Moyna & Sons Location: Fringe Area; West of Oak Crest Hill Rd SE, east of Highway 218 SE and south of F50 SE a. An application submitted by CJ Moyna & Sons for a rezoning of approximately 32.19 acres of County Residential (R) to County Highway Commercial (CH) and approximately 32.87 acres from County Agriculture (A) to County Commercial (C) in unincorporated Johnson County. b. An application submitted by CJ Moyna & Sons for a preliminary plat of the 218 Commercial Park subdivision, an 11 -lot commercial subdivision with five outlots in unincorporated Johnson County. Hensch noted since he is an employee of Johnson County he is recusing himself from this item and Vice Chair Parsons will oversee this agenda item. Heitner presented the staff report noting they received a revised rezoning and preliminary plat application from the applicants earlier this week. Heitner gave a brief overview of the changes from those revisions. With regards to the rezoning item, the main item he wanted to point out is parcel number three in the originally proposed rezoning was going to go from County Residential (R) to County Highway Commercial (CH) but the applicant has rescinded that request, so under the revised proposal it will remain County Residential (R). The major changes to the preliminary plat are in the original proposal there were 11 lots for immediate development. The revised proposal only includes five. The original proposed preliminary plat had one outlot for future development. The revised proposal is four. In terms of new streets that would be built with the subdivision there were originally three new streets proposed, the revised proposal just has one long street, an extension of Isaac Walden Road SE. Heitner showed an aerial view of the originally proposed subject area and then a view of the revised subject area and pointed out the large area north of Isaac Walton Road, or where Isaac Walton Road is to be extended is not included in the revised area. Next he showed a view of the revised subject area with the context of the current County zoning. The revised area is predominantly in County Agricultural zoning, with County Residential zoning to the north and that will remain in place. In the context of the City fringe area this is Area C which is fringe area outside the growth area. To the north, just a little bit north of Riverside Drive, there is a part of Area C that's inside of the City's growth area. Heitner next showed the revised rezoning exhibit and the revised plat. He noted the five lots for immediate development, numbered one through five are on the south side of the Isaac Walton Road extension. Planning and Zoning Commission January 16, 2020 Page 3 of 29 Regarding the general background information on this case, the applicant applied for a Comprehensive Plan Amendment to the County in June 2019 to amend the County's future land use area for the subject area from agricultural to commercial. At the time, City staff provided comment on this potential plan amendment and expressed several concerns. Those concerns were detailed in an attachment that was in the Commission packet. Despite the City's concerns about the future land use map amendments the County Board of Supervisors still voted to amend the land use map from agricultural to commercial. With regards to background information on the rezoning, there are actually two parcels this applies to, parcel 1 is 32.87 acres going from County Agricultural to County Commercial, the second parcel is a small triangular parcel 0.09 acres from County Residential to County Commercial. With respect to the City's Comprehensive Plan on this rezoning, the fringe area dictates for Fringe Area C "that in the portions of Area C that are not within Iowa City's growth area and which are zoned for non-farm, development may occur in conformance with the Johnson County Unified Development Ordinance and City Rural Design Standards until otherwise changed by amending this agreement this area shall be restricted to those uses consistent with a rural agricultural area, as indicated in the Johnson County Land Use Plan and has designated for a rural agricultural area in Chapter 816 Class A District of the Johnson County Unified Development Ordinance as amended." Heitner next gave an overview of City staff's concerns with the rezoning. A County Commercial zoning designation in this area would open up the area for a large amount of by -right retail and service-oriented uses and this would generally conflict with the current nature of the Fringe Area Agreement which has intent to preserve the area as rural and agricultural. Lastly, the Fringe Area Agreement typically guides commercial development into the City so that areas with existing access to utilities and infrastructure are not passed over for gap or leapfrog development. Moving on to the preliminary plat Heitner reiterated the revised plat would have five lots for commercial development with four outlets for future development, two outlots for open space and one outlot that will be for future street infrastructure. As far as subdivision design, with the revised plat the only street that would be platted would be the extension of Isaac Walton Road to the west. Stormwater detention would be provided in Outlot B, in the southeast corner of the development. In terms of traffic implications, the proposed street infrastructure in the subdivision meets the City's Rural Design Standards. Transportation planning staff did note that overhead lights might be appropriate along Oak Crest Hill Road should the subdivision continue to develop. With respect to environmental sensitive areas the subdivision must meet County regulations pertaining to sensitive areas development. Outlots C and E at the far southern end of the subdivision are intended to be preservation outlets per the County's direction to preserve an existing stream corridor. With respect to water and sewer, a water system with a distribution line running off the north side of the proposed Isaac Walden Road extension will provide water to the five proposed lots for development. Individual septic systems are required to meet the Johnson County Board of Health rules and regulations and will be necessary on each developable lot. In summary, the applicant has submitted a revised rezoning request and preliminary plat, reducing the rezoning acreage from 65.15 acres to 32.96 acres. All of which would be rezone to County Commercial. The plat would reduce the number of lots from 11 to 5 for immediate development, with future development potentially taking place on 4 outlets. Planning and Zoning Commission January 16, 2020 Page 4 of 29 The role of the Commission tonight would be to provide a recommendation to the City Council on the rezoning based on the Fringe Area Agreement. Ultimately with respect to the rezoning and the plat, the Johnson County Board of Supervisors will make the ultimate decision. As far as next steps, after the Commission provides a recommendation Council, Council will review and provide a recommendation to the Johnson County Planning Commission. Heitner stated there is a two-part staff recommendation as it pertains to the rezoning. Due to conflict with the existing Fringe Area Agreement staff is recommending denial of CZ19-05 an application submitted by CJ Moyna & Sons for a rezoning of approximately 32.87 acres from County Agricultural (A) to County Commercial (C) and 0.09 acres from County Residential (R) to County Commercial (C) in unincorporated Johnson County. Staff did hold a meeting with Johnson County staff back in September 2019. City staff's position on the land use in this area has not changed since that meeting and therefore does not believe that a future conflict resolution meeting with the County is necessary. With respect to the preliminary plat because the preliminary plat meets the City's Rural Design Standards staff is recommending approval of SUB19-16, an application submitted by CJ Moyna & Sons for a preliminary plat of the 218 Commercial Park subdivision, a 5 -lot commercial subdivision in unincorporated Johnson County. Baker asked for clarification on staff's recommendation that the Commission deny the rezoning request but approve the plat which is based upon a zoning which they are opposing. Heitner confirmed that was correct as in denying the rezoning request and approving the plat, the plat is just based on following the City's Rural Design Standards from the Fringe Area. Baker asked if the zoning that's in place now would not allow that development to occur. Heitner confirmed it is currently agricultural and would not allow the development. Russett noted staff is not recommending approval of the plat unless the County Board of Supervisors approves the rezoning, assuming they approve the rezoning staff would recommend approval of the plat. Signs asked if what was originally Outlot A on the northern half of this property is remaining County Residential is that what the new proposal states. Heitner confirmed that is correct. Signs noted he is confused by the drop from 11 lots to 5 lots and having all these outlots and wondered what if any advantage that change had in any decision making processes City staff or County staff might have. Heitner stated there wasn't a great deal of decision making that City staff made based on that change, their recommendation was going to be the same, regardless. It was their understanding that the Applicant in some discussions with County planning staff were encouraged to make that reduction in scale. Parsons opened the public hearing. Adam Kos (CJ Moyna & Sons) is representing the applicant along with Jon Marner from MMS Consultants who worked on the design for them. Kos gave a little background information on their company and maybe why they acquired the piece of property, they've had the property for a few years now, maybe four or five years. Initially they purchased the property with some ideas and the longer they had it and spoke with the City and started thinking about what can happen Planning and Zoning Commission January 16, 2020 Page 5 of 29 down in that location, the number one objective was to find a home for themselves. CJ Moyna & Sons is a grading contractor located in Elkader, Iowa, and they do a lot of big, heavy highway civil type work such as all the grading at the 1-80/380 interchange. They have also done large grading jobs at the Park Place development in Tiffin, also in North Liberty and in Iowa City. They do a lot of work all across the state of Iowa. One of the things for them moving forward is that the work demographic is changing a little bit, a lot of the workforce that they have right now with a tremendous amount of experience and talent are getting a little bit older and with their vision and thought process moving forward to get into some urban areas like Iowa city it's a great place to put little satellite office, a place to stage and work on some equipment and then get into the community and look for some good employees. Currently they have about 250 -275 employees depending on the season, and with the type of work that they do there's an opportunity to make some pretty good wages. Kos noted he lives in Kalona, just south of Iowa City, his family's from here so that also played a role in wanting to be in Iowa City as well. On the east side of Oak Crest Hill Road there's also 80 acres that they are looking at, doing some preliminary studies and reviewing finances involved in creating a wetland on that side of the road as well. Kos stated part of the resubmittal that came in yesterday came from some conversations with both City staff and County staff, they heard some concerns, heard some excitement, and therefore ultimately trying to find the right path moving forward to make this work. They acknowledge that it's a fun and unique interchange and offers a lot for the City of Iowa City in the future. That being said they would like to get moving forward, especially with a building for themselves and maybe a few others. A blue-collar office park is what they are envisioning there for the 5 to 11 lots. Parsons stated that it seems for a commercial aspect it makes more sense to develop Outlot A before going south of Isaac Walton Road because at Outlot A they are closer to the action such as the interchange and South Riverside Drive. Parsons is curious on their thought process on why they decided to eliminate Outlot A from initial development. Kos replied not know what the short-term or long-term vision is for that interchange. That particular interchange probably holds a lot of value as a recreational potential in the future, there's a lot of public land there currently. Therefore, for them and what they want to do they see the least desirable land or the area that is probably least attractive is a little bit farther south. They would like to be tucked in by the tree line, low visibility, pretty setting, nice place to work, etc. They acknowledge that that northern piece is probably better suited for something else then what they are needing. Parsons asked if they are envisioning office space as opposed to retail or mix of both. Kos confirmed they were envisioning office space and not retail. Martin asked in the conversations with the County, because of what the agreement says, is this the route that the County said was needed to go first. Why wouldn't the County have had a conversation about rewriting that verbiage first. Russett replied they are currently working together on an update to the Fringe Area Agreement. Kos added the conversations have been very encouraging and the county is very excited to have a company like theirs come to the area. Bringing their business and footprint to Johnson County is exciting and the job potentials that they can bring to the table is exciting as well. Jon Marner (MMS Consultants) added that part of the reason the northern parcel was pulled out from the zoning and is listed as a future development is the recognition by CJ Moyna there are Planning and Zoning Commission January 16, 2020 Page 6 of 29 conversations that need to be had between the County and City staff regarding the Fringe Area Agreement. By shifting the focus of the development to those four to five lots along the Isaac Walton Road extension allows CJ Moyna to come in, go ahead and get that development process started while those other issues can get worked out. It allows that area to start to develop and a little bit of progress to begin to move forward and hopefully that stimulates some conversation about what truly wants to be there. Dyer asked if they knew who the other occupants in the development will be. Kos replied they feel like it would be folks will be similar to them, what they are seeing right now in Tiffin is a small industrial park that's coming online that has some electricians there and other businesses similar Kos noted that particular area and the proximity to the interstate is appealing. For them they have big equipment and trucks so for them to come rolling down through Highway 6 or through town and hit all the stoplights is probably not a good idea. The proximity to the interstate is a better location for them. They would continue to have their main facility up in Elkader but would like to have a location here where they could bring equipment in a heated shop to service. Parsons closed the public hearing. Parsons noted with staff making two separate recommendations he feels it makes sense to have two separate votes. Signs moved to recommend approval of CZ19-05 an application submitted by CJ Moyna & Sons for a rezoning of approximately 32.19 acres of County Residential (R) to County Highway Commercial (CH) and approximately 32.87 acres from County Agricultural (A) to County Highway Commercial (CH) and 0.09 acres from County Residential (R) to County Commercial (CH) in unincorporated Johnson County. Martin seconded the motion. Parson stated with its position close to Highway 218 and South Riverside Drive he does see a path that there could be some commercial development in this area down the road, especially with its proximity to the fairgrounds, Colonial Lanes and other industrial activity. However, he thinks staff makes a compelling argument that based on what the Fringe Area Agreement says right now this wouldn't comply and so he would have to submit his vote for denial. Baker stated there's a cliche here about putting the cart before the horse that we are going to let the applicant proceed to do everything they could and then we'll work out the rules and regulations later. Martin agrees that's the way she understands it as well. Baker stated he has not heard a compelling case argument that the staff's concerns don't have more merit here in this case right now so he will be voting against this rezoning as well. Signs stated that based on the current Fringe Area Agreement staff's assessment is correct. Ultimately, however we vote it still is going to County and ultimately is their decision. His biggest concern is that we have a lot of vacant commercial industrial lots around the community and he personally doesn't see a need for more. Additionally because of this would be kind of bending the rules a little bit he doesn't find terribly compelling A vote was taken and the motion failed 0-6. Planning and Zoning Commission January 16, 2020 Page 7 of 29 Parsons next moved to item B. Signs moved approval of SUB19-16, an application submitted by CJ Moyna & Sons for a preliminary plat of the 218 Commercial Park subdivision, an 11 -lot commercial subdivision with four outlots in unincorporated Johnson County. Dyer seconded the motion. Signs acknowledged it was odd to deny the rezoning but approve the plan but understand staff's approach on both of them. Also the County may approve the rezoning even with the recommended denial. Baker disagreed and said until the County approves the rezoning the plat is a moot point so why approve the plat before the County approves the zoning. Signs noted if the Commission doesn't approve either one then it's just totally dead. By denying the rezoning they are basically putting the decision in the County's lap and by approving the plat they are acknowledging if the County approves the rezoning then the plat does meet the Rural Area Development standards. Baker asked why it is necessary to approve the plat before the County does. Russett noted this is because the applications were submitted together as a rezoning and a preliminary plat so they are reviewed together. Baker asked if the Commission were to vote down the plat the applicant could come back in with a resubmission once the rezoning is in place. Russett said she was not sure. Some ordinances have clauses that do not allow for immediate resubmittals after an action has been taken and she is not familiar with the County's ordinance. Signs stated based on the logic of the staffs arguments about why the plat should be approved he would agree and will vote for it. A vote was taken and the motion passes 4-2 (Baker and Martin dissenting). Hensch rejoined the meeting. Planning and Zoning Commission January 16, 2020 Page 8 of 29 CASE NO. CZA19-06: Applicant: Phil O'Brien An application submitted by Phil O'Brien requesting an amendment to the zoning code to allow animal related commercial uses in the Commercial Highway (CH -1) zone to allow for the development of a community-based indoor dog park and recreation center at 2513 N. Dodge Street. Heitner began the staff report with an aerial view of 2513 North Dodge Street, noting its very highway adjacent just north of the 1-80/Dodge Street interchange. The next map showed the current zoning surrounding 2513 North Dodge Street. There is CH -1 zoning in the area however CH -1 zoning does not allow for animal related commercial establishments. The majority of zoning in the area is research park or office oriented. Heitner stated in some discussions with the applicant the proposed use would be a community based indoor dog park and recreation center, totaling around 22,000 square feet. The center would be primarily indoors with some contained outdoor space and walking trails. The applicant expressed he believes that the center will have a regional draw. With respect to the City's current regulations on animal related commercial uses, they are defined as related to the temporary care, medical treatment or cremation of domestic animals. Then the code breaks that into two subgroups, the first of which is general subgroup and examples provided within the code include veterinary clinics, animal grooming establishments and pet crematoriums. The second subgroup is the intensive subgroup and examples include kennels and stables. Heitner pointed out general animal related commercial is allowed provisionally in CN -1 (Neighborhood Commercial) but not in CH -1 (Highway Commercial), which maybe is a little bit of an oddity given that CN -1 is a less intense zone than CH -1 and operates in a more neighborhood context. In terms of the proposed code amendments that staff is recommending, the first would be to allow general animal related commercial uses as a provisional use in Highway Commercial (CH - 1) zones. Second, allowing animal daycare and indoor animal recreation uses as allowable provisional general animal related commercial uses, which would be allowed provisionally in CN - 1, CH -1, CI -1, CC -2, CB -2, and CB -5 zones. And finally amending the definition of animal related commercial uses to include animal daycare and indoor animal recreation uses. Heitner stated Staff is also proposing to amend the code to allow private outdoor animal recreation uses via special exception in CH -1 zones. This amendment is not intended to regulate or otherwise constrain the keeping of household pets, or the development of public recreation facilities such as public dog parks. The special exception process would require all outdoor animal recreation uses to obtain approval from the City's Board of Adjustment. Staff is proposing the following additional approval criteria to obtain a special exception for outdoor animal recreation uses. 1. Outdoor animal recreation areas must be located at least 400' from any residential zone. 2. No outdoor animal recreation uses are allowed overnight. 3. All outdoor animal recreation areas must be fully enclosed by a fence that is of sufficient height to prevent animals from escaping. 4. Animals shall not be permitted in an outdoor animal recreation area unless a handler is present. 5. Where outdoor animal recreation facilities are accessed by the public, a double -entry Planning and Zoning Commission January 16, 2020 Page 9 of 29 gate is required. 6. All outdoor animal recreation areas must be kept in a clean, dry, and sanitary condition. 7. All outdoor animal recreation areas shall be located in an interior side or rear yard and screen from any right-of-way or adjacent residential zone by at least the S2 screening standard In terms of proposed definitions staff is recommending three: 1. Animal daycare, which would be a non-residential facility offering care for domestic animals during daytime hours, not during overnight hours. 2. Indoor animal recreation, indoor facility used for the exercise, recreation or training of domestic animals. 3. Private outdoor animal recreation and outdoor facility used for the exercise recreation or training of domestic animals. Heitner noted because this is an application for text amendment staff looks at consistency with Comprehensive Plan as well as compatibility with the existing neighborhood. In context of the Comprehensive Plan it does call for office and general commercial uses on CH -1 parcels which staff sees as potentially fitting with this proposed development. 2513 North Dodge Street is not specifically addressed in the Northeast District Plan, that Plan area terminates just south of it. As far as compatibility with the existing neighborhood character, CH -1 parcels are predominantly surrounded by office and research park uses and they tend to have larger scale buildings with deeper setbacks. Heitner noted it's possible that a hybrid animal recreation use and office use might be a nice complement to either the planned or existing office uses in the immediate area. In terms of more broadly speaking rationale for the text amendments, staff feels that the amendments would allow regionally focused animal related commercial uses to take advantage of highway adjacency that's provided by CH -1 zones. The provisional criteria would require soundproofing for all general animal related commercial indoor uses and private outdoor animal recreation uses would be allowed as an accessory use only by a special exception in CH -1 zones. Heitner noted that most the current CH -1 zones in the City are clustered around the Dodge Street/1-80 interchange. The surrounding uses are predominantly either research park, interim development -research park, or commercial office zones. He pointed out there's a pretty good degree of buffering between where this use could be allowed and any adjacent residential. In looking at this text amendment staff wanted to look at a few peers zoning ordinances, Heitner showed a general snapshot of three zoning ordinances pertaining to animal services in Des Moines, Cedar Rapids and Davenport. Des Moines and Cedar Rapids did have some kind of separation requirement, Des Moines being about 200 feet to residential zones and Cedar Rapids being 100 feet. The 400 -foot recommendation that staff is proposing is understandably larger than those requirements. Des Moines and Cedar Rapids also allow animal services to take place in a bit more suburban and urban oriented context. In Des Moines for example, animal services can be even in mixed use in downtown. Most ordinances staff looked at had either a fencing requirement or screening requirement, almost all of them had a requirement pertaining to over nights and outdoor uses not being permitted. The role of the Planning and Zoning commission is to recommend approval or denial to the City Planning and Zoning Commission January 16, 2020 Page 10 of 29 Council within 45 calendar days of the date the City receives the rezoning text amendment application or the rezoning shall be considered recommended for approval. With respect to next steps, pending recommendation of approval by the Planning and Zoning Commission, City Council will hold a public hearing to consider the proposed text amendments. Staff is recommending amending the City Code to allow the following: 1. Allow general animal related commercial uses as a provisional use in Highway Commercial (CH -1) zones. 2. the creation of animal daycare and indoor animal recreation uses as general animal related commercial uses as provisional uses in CN -1, CH -1, CI -1, CC -2, CB -2, and CB -5 zones. 3. Allowing private outdoor animal recreation as an accessory use to be obtained by a special exception in Highway Commercial (CH -1) zones. Hensch noted on the 400 -foot requirement for separation from residential area seems way more than the other peer groups and it seems overly prescriptive to him. Heitner agreed and noted staff discussed that but it was a carryover from a provisional requirement from the intensive animal related commercial use and seemed like a good starting point and a good distance to include for this new outdoor animal recreation accessory use being created. Hensch also asked if all proposed outdoor animal recreation areas have to go before the Board of Adjustment. Heitner confirmed that was correct. Hensch noted it seems like there's a lot of prescriptive things are prohibited when it's going to go to the Board of Adjustment anyway and they could set all kinds of different requirements. Hensch noted it makes it seem like this could only happen in this one place and he would like to see these kinds of things be more common and around everywhere. He noted Colorado Springs, Colorado, was very pet friendly town and that's very attractive to people and he'd like to see Iowa City go in that direction. He doesn't want to stand in the way of anything today but would certainly like to see Iowa City be moving towards more leniency and more pet friendly. Baker asked if Hensch is recommending reducing the 400 -foot requirement. Hensch noted it seems kind of random but it doesn't look like it hurts this application at all, it just may be for future things. Baker said he would certainly support any sort of reduction if others wanted to do that. Baker had a question about the three definitions, animal daycare, indoor animal recreation, private and so forth. The animal daycare definition notes overnight kenneling is not allowed but the others don't say that so are they allowed to provide overnight accommodations. Heitner stated that overnight will not be allowed as a component of the outdoor animal recreation at all. Baker stated if they had the capacity for it, even though it's called an outdoor recreation facility, but they have a building so there could be room for indoor kennels for people who want to keep their pets overnight there this would seem to even prohibit that. Russett stated the zoning code regulates kennels differently and kennels are considered an intensive animal related commercial use, which are only allowed in the CI -1 zone. Martin asked about Bright -Eyed & Bushy -Tails that is out there and what are they zoned. Russett said it is zoned CO -1, it does have a kennel as it's a vet clinic and the code allows kennels as an accessory use to a vet clinic. Planning and Zoning Commission January 16, 2020 Page 11 of 29 Baker asked for a clarification about the third standard on fencing height. Who determines the height? Heitner said probably the building inspection services staff. That was a recommendation again they saw in a peer community. They could just state a height, such as Davenport states the fence must be six feet in height. Baker asked if that would be settled at the Board of Adjustment? Heitner said it could be. Baker noted if six feet is sufficient for the City dog parks, then why not have that be sufficient for this amendment. Baker also noted there's no specification here about type of fence, chain link fence versus a wooden fence or a fence that can be seen through, is there any requirement in terms of the opaqueness of the fence. Heitner replied there's no requirement. Baker stated lastly regarding fence height, the whole thing is to prevent animals from escaping and he's had some experience with dogs ignoring the height of a fence and figuring out a way to go under that fence. Dyer stated that is why there is a requirement of having to be with a handler. Signs asked what the standard for residential heights limitations on fences is. Hekteon thinks it is six feet. Signs notes some possible rewording of bullet point number three and referencing a six -foot minimum fence height, which means it could be considerably greater than that. Townsend asked if there was any input or notification of the current tenants around that area of this going in the area. Russett stated since its not a map amendment, there's no noticing requirement. Hensch opened the public hearing. Phil O'Brien (416 2nd Avenue) came forward to answer questions. Baker asked how tall would the fence at the facility be. O'Brien said that is o be determined but they will make sure all the dogs stay in it. Hensch asked if any of the recommendations staff has the report cause any question or pause, or can they be worked with? O'Brien stated it is definitely stuff he can work with. Dyer asked if O'Brien was familiar with a facility like this elsewhere? O'Brien noted they've done some research and looked at different facilities around the country. They range everything from a warehouse space with the garage door to elaborate 50,000 square foot facilities. Signs noted his interpretation is it's basically an office building with a lot of indoor dog amenities. O'Brien stated it will be a metal frame building, part of it was modeled after the University of Iowa rec center, so there is an elevated track and an open area below. There will also be meeting areas and a retail restaurants and co -labs. Hensch closed the public hearing. Parsons moved the Commission approve ZCA19-06 an application submitted by Phil O'Brien requesting an amendment to the zoning code to allow animal related commercial uses in the Commercial Highway (CH -1) zone to allow for the development of a Planning and Zoning Commission January 16, 2020 Page 12 of 29 community based indoor dog park and recreation center at 2513 North Dodge Street. Signs seconded the motion. Hensch stated he thinks it's overly prescriptive, but he really wants this to pass, so maybe that is a conversation for a future date to address the 400 -foot separation from residential. He will not argue about that today as he likes this and hopes it's wildly successful and will support it. Signs noted he is excited to see potentially see something going in on that piece of property, it will really help that corner and it's a difficult spot. A vote was taken and the motion passed 7-0. CASE NO. DRC19-04: Applicant: Rob Decker, Axiom Consultants Location: 12 E. Court Street An application submitted by Rob Decker requesting a Level II design review, which includes a 7 - story bonus height request, for two, 15 -story buildings located at 12 E. Court Street. Russett began the staff report showing an aerial map showing the location of the project site Just south of Burlington, in between Clinton Street to the east and Madison Street to the west. As an overview of this application, again it is a Level II height bonus request, which requires review by the staff Form -Based Code Committee and Planning and Zoning Commission in this case, which is not typical, these typically go from the Form -Based Code Committee straight to City Council, but in this instance, it must be reviewed by the Planning and Zoning Commission. The Form -Based Code Committee includes Russett, Danielle Stitzman, development services coordinator and Tim Hennes, senior building inspector, and they have reviewed this plan and are also here tonight to answer questions. They determined that the project meets the standards of the zoning code. The height bonus request is a discretionary process and there's specific criteria that must be met and can help and guide decision making. Although the project meets the letter of the Code staff does have some concerns with the project, one being the proposed skywalk, the second being fully screened balconies, and the third is the design of the Capitol Street right- of-way which Russett will elaborate on later in the presentation. Some history on the project, this property was rezoned to Riverfront Crossings South Downtown in September 2018. There were several conditions associated with this rezoning and Russett wants to highlight a couple of them. First is the dedication of the Capitol Street right-of-way and second is that if a Level II Design Review was required for a bonus height request that it must come back to the Planning and Zoning Commission for a recommendation to City Council. An overview of the bonus height request, the applicant has requested seven stories of bonus height for two 15 story mixed-use buildings. The bonus maximum height in this zone is 15 stories subject to a discretionary review. The applicant has requested bonus height through three different means, the first is the transfer of public right-of-way, the second is the historic preservation height transfer, and the third is for student housing. Planning and Zoning Commission January 16, 2020 Page 13 of 29 Russett showed the site plan. Capitol Street runs between the two buildings, there is a west building and east building. She began with an overview of the west building. It is proposed to have 492 dwelling units. There are three levels of underground parking. The non-residential uses would be along Capitol Street, Court Street and Burlington Street. Russett showed an image of the proposed elevation from Capitol Street looking west, and a couple of renderings that show some of the courtyard spaces. Next, she showed a map of the first level floor plan. The blue areas are residential uses, the green areas are amenity spaces and recreational spaces, the orange areas are office and then the yellow is retail. There are some residential uses that front the courtyard on the first level, the amenity space is the study areas along Capitol Street and then there's some recreational and amenities along Burlington Street. There is retail proposed at the northeast corner of Capitol Street and Burlington and also at the southern end along Court Street and Capitol Street. The proposed office space is on the Court Street side. The academic spaces are to include study rooms and computer labs with Wi Fi and the recreational amenities include a half basketball court, track, jacuzzi area and an outdoor pool deck. In the image that shows the proposed open space the blue areas are the publicly accessible open space and the green areas are privately accessible open space. For the west building around 9,500 square feet of open space is required and the plans show just over 15,000 square feet. Moving on to the east building, it has 426 dwelling units proposed, three levels of underground parking. Again, the non-residential uses are along Capitol Street, Court Street and Burlington Street. Russett showed the first level floor plan for the east building. Again, the orange area is offices, the green areas are study spaces and amenity spaces, and then there's a small portion of retail at the corner of Capitol and Court Streets. There are no recreational uses proposed in the east building, there is a restaurant that's proposed on the 15th floor. The required open spaces for the east building 8,200 square feet and the plans show around 10,300 square feet of open space. In terms of proposed material, the applicant has proposed to use metal panels, terracotta spandrel and regular glass, metal screens and concrete. Russett brought down the sample board the applicant provided for the Commission to take a look at. Russett also noted that along the first floor of Capitol Street, the applicant has proposed an artistic component in the form of a graphic panel behind metal screens near building entrances. She showed a rendering illustrating the metal screen with plantings growing up them and then the lighted graphic panels in the back. The applicant also proposed a skywalk which connects the two buildings at the fourth floor. The proposed Capitol Street right-of-way shows 12 %2 foot unobstructed walkways, 12 1/2foot travel lanes and angled parking. Next Russett explained the criteria for each height bonus request. First, the public right-of-way transfer. The criterion related to the public right-of-way transfer is that the land proposed for dedication, which could be called the sending site, is needed in order to construct or improve rights-of-way necessary to realize the vision of the Riverfront Crossings Master Plan. The applicant has agreed to dedicate the public right-of-way to extend Capitol Street, that was a condition of the rezoning and this extension is envisioned in the Riverfront Crossings Master Plan. The applicant has requested to transfer 304,000 square feet of right-of-way to the buildings. Staff does have concerns with the design of the Capitol Street right-of-way. First, staff Planning and Zoning Commission January 16, 2020 Page 14 of 29 recommends that the angled parking be changed to parallel parking. Although there are no bicycle facilities proposed along Capitol Street it will be used by cyclists and angled parking is not the best type of parking to have with cyclists. In addition, the Riverfront Crossings Master Plan shows parallel parking in this location. Additionally, the travel lanes proposed are 12 %2 feet wide, which are wider than would be supported by the City and do not align with current City designs like the recent reconstruction of Washington Street. The sidewalks on Washington Street are also wider than the proposed 12 %2 feet along Capitol and staff anticipate this to be highly traveled corridor especially by pedestrians. In terms of the proposed skywalk, staff concerns are that the skywalk could block the views of the Old Capitol and could potentially divert street level activity. Next is the historic preservation transfer. The criterion related to this transfer request is that the site from which the height transfers requested, the sending site, is designated as an Iowa City landmark. The Tate Arms is designated as an Iowa City historic landmark, this was designated several years ago by the applicant. The applicant previously transferred a portion of the development potential of the Tate Arms to an adjacent property and agreed to a rehabilitation plan as part of that. The current request is to transfer the remaining potential of the Tate Arms building, which is 27,400 square feet to 12 East Court. Next is the student housing bonus height request. There are two sets of criteria for this request, first is the locational criteria. The project must be located within the University, South Downtown or West Riverfront Subdistrict and be located within 1,000 feet walking distance from the University of Iowa campus. Russet confirmed the proposed project meets both of those criteria. The next set of criteria are related to management design and amenities. This includes an enforcement plan for professional 24-hour on-site management and security. Open space must be provided within amenities that create a high-quality living environment for students and secure bicycle parking. Russett reiterated this project meets the location criteria, it also demonstrates compliance with the number of on-site bicycle parking that's required. Staff would recommend transparent fencing around the bike parking within the parking garages for safety reasons. Mentioned in the staff report, the City has reviewed the security plan however more detail is needed. Staff recommends that a final administrative review and approval of the management plan take place at a later date so staff can confirm various things such as confirmation of camera coverage, protocols for police department accessing videos, protocols for timely repairs as well as staffing requirements. Russett noted the plan lacks detail on how the student amenity spaces creates a high-quality living environment. Therefore staff is recommending some additional justification on those student amenity spaces to ensure that they are the right type, the right size and right amount based on the size of the building. Lastly, the applicant has proposed fully screened balconies, staff recognize that the screening is provided for safety reasons but have concerns that the screening could take away from the quality of the design. Russett stated there are several rezoning conditions that had to be reviewed as part of the development plan. The first condition is that the property must substantially conform to the building footprint shown in the Downtown and Riverfront Crossings Master Plan. Russett showed an image comparing the Master Plan and the proposed building. The applicant's plans show 5% more linear feet along exterior walls and 4.8% more square feet than the Master Plan. but staff feels that this condition has been met. Russett pointed out the Master Plan originally is showing four buildings and the proposed project is two buildings. The next condition is that the Planning and Zoning Commission January 16, 2020 Page 15 of 29 development of the subject property must include a landscaped interior courtyard between the two easternmost buildings. Russet acknowledged the plans show an interior courtyard extending from Capitol Street to the alley between the east building and the Voxman Music Building, so this condition has been met. The last condition is the bonus height shall demonstrate excellence and building and site design, use high quality building materials and be designed in a manner that contributes to the quality and character of the neighborhood. This is not only a condition but also a standard within the Form -Based Code to review the height bonus, Russett mentioned the materials earlier but noted there are extensive window and door openings that show that the project meets the fenestration requirements of the Code. All entrances to non-residential uses along Burlington, Court and Capitol Streets are at grade, helping to create a more walkable environment. The step backs meet the 10 foot at the fifth story, and there's even deeper step backs closer to Court Street, and they narrow as you move north toward Burlington along Capitol Street. The proposed project is located between the Voxman Music Building on the east and an eight story residential project on the west and the Johnson County Courthouse to the south. The role of the Commission here is to review and make a recommendation to City Council on the proposed development. The Commission should use the criteria that staff has outlined here that the Form -Based Code Committee used. City Council will be using that same criteria. In terms of next steps, after the Commission makes a recommendation and the plans will be reviewed by City Council and the awarding of the bonus height is up to City Council. Russett stated the Form -Based Code Committee finds that the proposal meets the standards of the Riverfront Crossings Form -Based Code. Staff does recommend the following modifications and some additional details. 1. Removal of the skywalk. 2. Re -design of the Capitol Street right-of-way, for review and approval by staff, to ensure consistency with the Riverfront Crossings Master Plan and other recent City street reconstructions, like Washington Street in downtown. 3. Removal of the balconies. 4. An additional administrative review of the management plan that includes details regarding staffing, cameras, accessing video, etc. prior to the issuance of a building permit. 5. Additional detail and justification on the academic amenity space. 6. Secure fencing around bicycle parking must be non-opaque (e.g. chain-link). 7. If the building plans deviate substantively from the approved design review plans, these changes must be reviewed and approved by the City Council. An example of a substantive change is a change to exterior building materials. Martin asked why staff want to remove the balconies or is staff recommending removing balconies or just not fully screening balconies. Russett replied the balconies are proposed to be fully screened but for safety reasons staff recommend that they be removed. Staff feels like the materials and the screening that are being proposed take away from the quality and design of the building. Martin asked why didn't staff renegotiate what that would look like rather than just take away balconies. Russett acknowledged they did some negotiation with the applicant and they have changed the materials however staff is still not comfortable with the proposed materials and the balconies being fully screened with those materials. They've told the applicant the best option is to remove the balconies. Planning and Zoning Commission January 16, 2020 Page 16 of 29 Martin next asked why staff want the skywalks removed. Russett stated they were concerned as there's a view shed, an important view shed on Capitol Street to the Old Capitol, and with the opening of Capitol Street that will create that view shed that was once closed, and they are concerned that that skywalk will block the view of the Old Capitol. Additionally, staff want the activity in this area to be at the street level and with skywalks they were concerned it could divert potential retail or pedestrian activity from the street to the skywalks. Martin assumed the skywalks are for the residents. Parsons agreed noting especially since the recreational activities are all only in one of the buildings. Russett acknowledged the skywalk would be mainly used for the residents. Martin noted nothing was said about the airport flight path, so she assumes the height bonus is fine with the flight path. Russett confirmed that was correct. Dyer asked about the provision of affordable housing and what is the provision. Russett replied the applicant must meet the affordable housing requirement which is 10% affordable, either by fee -in -lieu or on site. She will defer to the applicant on more details of their plan. Hensch commented on the landscaped central courtyard and noted given the amount of physical structures around that and he is concerned that all that stuff will end up dying, and it would be wise to have a landscape architect to select species that have a chance of staying alive in there. Hensch stated that all the architecture philosophies now need to be very biophilic oriented and need to be pretty intentional about the selection of that landscaping. He would like to put a stipulation above to have a landscape architect signing off on this to make sure there will be plants that can survive in that environment and are native Iowa so they can handle the cold and the drought and the heat because it's going to be a really tough environment. Hensch stated regarding the balconies, he is a big balcony fan, the 19 -story building across street has 19 balconies, but he can see staff's concern about the screening making it look too institutional so will defer to staff. However regarding the skywalk, the renderings have it to be pretty transparent so if there's a skywalk that people can see through it won't really interfere with the view. Additionally, this is Iowa and it would be nice for people to be able to move between buildings. Baker noted on page seven of the staff report he needs more clarification on that phrase "divert from street level activities". A skywalk to go from one building to another or a skywalk concept in general makes perfect sense to him. Baker asked about the parking changes staff proposes, from angle to parallel, he assumes all those spaces will be metered regardless. Russett acknowledged she doesn't know the answer to that and would have to look into it. On security, Baker notes a phrase on page eight where "staff recommends at least three security personnel providing security 24/7" and wondered if that means literally one person, eight hour shifts, seven days a week, just three people for that entire complex or does that mean nine people, three on each shift. Russett stated it means three people on site at all times. Baker noted the paragraph right below that talking about the plan lacks detail on how this amenity, the academic community space, creates a high-quality living environment, and wondered who's involved in judging it as an academic space, or high-quality. Is it just a staff decision or will they Planning and Zoning Commission January 16, 2020 Page 17 of 29 bring in people from the University, who's making the decision about what really qualifies as academic amenity space? Russett stated it would be the Form -Based Code Committee that would be reviewing it. Baker asked if there any University representation on that committee and Russett replied no. Baker feels there should be someone with experience to evaluate academic amenity space and that is not on staff right now. Hekteon stated that is part of the applicants burden and one way that they could support their application is by bringing in evidence supporting the University's practices or something of that nature. Baker also wanted to address the question of balconies again, he has mixed feelings about balconies in general for large developments, he understands why the developer would want them, they are an amenity that people like to have, but is staff's concern only over how they look, an aesthetic question. Russett replied staff wouldn't want them to have the balconies without screening because of the fact that it's student housing and do recognize that they're proposing the screening for safety reasons. Staff is recommending the balconies just be removed. Baker asked if the Commission or the Council says if they can have balconies would they have to be 100% enclosed or perhaps just waist high or such. Russett stated if Council chooses to allow balconies staff would recommend that they were fully screened, 100% screened. Staff has gotten feedback from the Police Department based on their review of the plans, they had lots of concerns with balconies, and they would need to be screened completely. Baker noted in the latest planning magazine that they get every month as Commission members, this month it was on the City of Houston and there's all sorts of designs in there about high rises in Houston and balconies and high rises, and they're not enclosed balconies at all. Baker asked if the concern here that we're dealing with a student population. Russett confirmed that was the concern. Baker asked then how that is concern different than on a 10 -story building versus a three- or four-story building, which has a balcony which is only half enclosed, if a person falls off the three story it can be just as tragic. Russett stated that the difference here is that this is a discretionary review process for a height bonus, and they have concerns with the proposed to balconies. Beyond safety there is a concern about noise and trash, things getting thrown off the balconies, that type of thing. Baker acknowledged then if is the staff recommendation that under no circumstances would they support the inclusion of balconies that were not fully enclosed. Russett reiterated their recommendation is removing the balconies. Baker concurs and would prefer they be removed too, he likes balconies but aesthetically for buildings that size he can see where a design with no balcony having all that balcony space included back into the apartment itself would be would be an advantage as well for the for the developer. Townsend asked after these buildings are completed and after students move in, how long are these plans in place such as the security. Russett said it is in perpetuity. Townsend also noted the buildings are right next door to the University Rec Center so why are all these things included in this building, students pay for those amenities with their Ubills. Russett stated the applicant could address that. Signs asked if the open space calculations are all ground level square footage. Russett confirmed it is, it's the courtyards. Signs interpreted the comments about the amenities as staff thought there were too many amenities in the in the building and wondered what's the reasoning behind that. Russett replied that wasn't the intent, in reviewing the plans, the Form -Based Code Committee didn't have a good idea of how many student study rooms and spaces should be in a building of this size, so they wanted more information from the applicant to justify the square footage, the types of amenities, the computer labs, those types of things that are being Planning and Zoning Commission January 16, 2020 Page 18 of 29 proposed. Signs also asked for clarification on staff's thoughts on the size of the sidewalks proposed on Capitol and Court Streets. Russett stated the travel lanes are too wide, the street width. Townsend noted the width of the sidewalks were mentioned in the report. Russett reiterated that the sidewalks on Washington Street are much wider than what is currently proposed along Capitol Street. Baker had one final question about balconies and asked if there are any sort of record of problems with the current balconies in Iowa City, people hurting themselves through balconies now. Russett said the Police Department could probably provide some information on that. Hensch presumes it's more associated with noise generation and people throwing things. Hekteon reiterated what Russett said that this recommendation was informed in large part by input from the Police Department. Townsend voiced a concern of having two 15 -story buildings in that area. It will tower over Voxman, it's going to be taller than the engineering building. Hensch noted when the applicants here they can ask them but noted the elevations are going to be different due to the topical map of the area. Hensch opened the public hearing. Rob Decker (Axiom Consultants) is the project manager for this project and will try to expand on what was presented by staff and then be happy to answer any questions. He began noting he appreciates all the effort that staff has provided them with over this long process, next month will be two years that they've been working on this effort. They understand it's gigantic and there's a lot to digest here. Decker start by showing a video that gives a really good example of the project. Then he will go into a couple of clarification items and go through the building as a whole. Decker next read a prepared statement because this project is so big he wanted to write his thoughts down so nothing got missed. "On behalf of the ownership group and the design team, I want to thank you for the opportunity to talk briefly about this project. I don't want to stand up here for an incredibly long time and I don't intend to, together with Newman Monson we'll give you a rundown of what you're going to see with all the design that this entails. It's incredibly large and while many of us on the team have the benefit of this being second nature at this point, after these many months, we understand that there's an incredible amount to digest. We're incredibly excited about being on the project. It's a really, really unique opportunity to transform this area. This is my hometown, so I'm excited about it. I think it's a game changer for the City. Very few if any private properties present so unique and opportunity is to be essentially on campus while providing private residential opportunities of incredibly high quality that allow for a student experience in such a proximity, walkability, incredible amenities, urban design and more. Not only is what you saw something that would change the landscape of Iowa City for the better, in our opinion, it brings an incredible host of benefits, including an estimated $3 to $4 million annually into Iowa City coffers in the form of property taxes, an estimated $9 million into the affordable housing fund. A reopening of the long -closed Capitol Street with is described as one of the axial entry points to the Old Capitol, its last remaining one of the four. It provides Planning and Zoning Commission January 16, 2020 Page 19 of 29 incredibly high-quality safe housing for the students on campus, literally just south of downtown closer than most of the dorms. It makes sense, it fits the site, the height is partially offset by the steep grade of the hill, so it gobbles up a lot of the height. It's less than or equally as tall as high rises that are already in town. It replaces outdated infrastructure, puts a newer building and a new energy code into place in a town that benefits tremendously from that. The impermeable area of the site is nearly the same as what currently sits there with a much higher urban density, density that's called for in the City's Master Plan as well as other student housing studies completed in town. Our analysis of the current market rates and other analyses recently released assume less than 3% downtown vacancy and around 6% in the metro area, which is an incredibly healthy level. In discussions with our colleagues in the industry and from other accounts supplied by Housing and Urban Development arguments can often be made that healthy levels nationally should sit around 8% to 10%. Iowa City within the past decade or so has experienced incredibly low vacancy rates below 1 % downtown. Obviously, these levels aren't sustainable and that's why a number of housing projects have popped up and continue to pop up. The analysis that developers are looking at are still showing really excellent opportunities in town and that's why you continue to see these projects, they wouldn't be completing these projects if it wasn't fiscally sound opinion. And the last thing I would say is, besides making sense for the reasons above, it's been very well received. We've received positive reinforcement or outright support from affordable housing programs, most of them, the local unions, the Downtown Association, countless local contractors and businesses, and numerous members of the general public that I've spoken with and best of all the projects being completed locally. The owners are lifetime residents of Iowa City and a family that made their whole life here. The design teams are Iowa City firms, the general contractors is an Iowa City firm, McComas Lacina that has a wonderful reputation downtown and has been here for decades. The entire team on this project is Iowa City based, you'll never find a project this big that's going to do that again, I guarantee it. And lastly, that project will push an estimated 2 million hours of full-time labor into the economy during it if not more than that, it's probably a low estimate. Their process to get here is basically been nine months of rezoning, nine months of design review of City staff which has been great, Planning and Zoning right now and we're going to move to Council next, as you're all aware, that'll be a two year process next month." Decker next went through the requirements from Zoning that staff went through. (1) Dedication of Capitol Street right-of-way, that's being done, it was agreed to in the CZA, it is a 100 -foot right- of-way that's been blocked since the 1970s and it will open up the axial view to the Old Capitol that is envisioned in the Master Plan. (2) Obtain approval of elevations from Planning and Zoning, that's why they're here tonight. (3) Build the Capitol Street right -for -way to City specifications which they have. One of the things Decker wanted to clarify is that's been vetted heavily with the City already, the vast majority of it meets expectations. The lane width can easily be changed to what the City wants. However, Decker does feel strongly about the angle parking and will address that later. (4) The satisfaction of affordable housing was addressed in a formal memo, they will agree to pay the fee in lieu of to The Affordable Housing Coalition, its near $9 million into the fund. (5) The compliance with the footprint in the Master Plan was shown in a good example earlier. (6) Development of landscaped interior courtyards has been reviewed extensively with staff as well. Decker will read one more prepared statement from their landscape architect, which describes the landscape architecture that they've designed to date. (7) Approval of the architect, that was completed a long time ago and lastly, (8) demonstrating excellence in design for the building and the site. Decker will do a general walkthrough of the site and try to clarify some things. There's sort of a central concourse, or courtyard, but it's more of a concourse that runs between the buildings. One could debate on whether this is four or two Planning and Zoning Commission January 16, 2020 Page 20 of 29 buildings, by code it's two buildings because they're connected, but they're designed to feel independent, and that's to meet with the Master Plan. The forecourts are entry points into each of those four facilities. Each one of them, with the exception of the northeast one, has a has a private courtyard that can only be accessed by private residents of the buildings. Voxman doesn't allow for one in that northeast corner. There are parking garages under each structure that are independent of one another, they span the length of each of those footprints. There are two entry points to the garages. The right-of-way is 100 -feet which is really large, there aren't many places in town large, but it matches through the corridor. In addition to the really large setbacks that they've done, it provides what they think is a really bright and open corridor north to south. Decker next read the landscape architecture prepared statement. "An important piece of this project has been the carefully planned landscape features intended to create a beautiful space for pedestrians, motorists and users of the building. Plants, paving materials and other site features were selected to complement existing nearby streetscapes, to provide a seamless transition along east Burlington and east Court Street. South Capitol Street will be lined with trees framing the views of the Old Capitol building to the north, overstory trees will shade proposed parking and complement the surrounding buildings. The resulting tree canopy is intended to create a comfortable pedestrian experience along with the large beds of ornamental grasses, paralleling the generous walkway connecting adjacent spaces. Throughout the site unique planting beds reflect the architectural details of the building, as well the proposed colored concrete accents. Public entrances with seating will be enhanced with the use of ornamental trees, flowering shrubs and a mix of perennials integrated into the surrounding streetscape with perennial beds that wrap around the building. Some entrances are screened by living wall which will create more vertical green infrastructure in an urban environment. A courtyard space between the buildings will be flanked with vegetation and ornamental trees to create a strong access while softening the hardscape. The addition of colorful public art opportunity, varied seating types and accent lighting will create a living environment around the building." Nathan Griffith (Architect, Newman Monson) wanted to speak about the three major goals for the project. One goal is that the project is designed to contribute to the quality and the character of the neighborhood. He will talk about that and speak to that as shows some of the images. Second critical to the project is the student health, safety and welfare and that will be addressed in many different ways throughout the project, including the balconies as well as the skywalk. Third goal is the enhanced pedestrian environment. First Griffith showed an image comparison of the Master Plan footprint and the proposed footprint and pointed out a few different critical parts. One is the pedestrian experience along the street. On their plan one can see how much frontage at ground level the building will have as compared to what was proposed in the Master Plan, and with that they were able to obtain goal one by creating the forecourts and courtyards and a more friendly pedestrian experience as you're walking along the street. Another point is the step back of the buildings as compared to the Master Plan footprint, at the north side of the site there is an additional 10 feet of stepback and the south tower is 15 feet to allow for more sunlight and access to sky. Thirdly, the towers as tight and efficient and spindly as possible so that it really reduces the scale of the building from an urban sort of context. Next Griffith showed a few images showing the context of the project within the City and how the Planning and Zoning Commission January 16, 2020 Page 21 of 29 building is broken up into pieces and the way that the colors of the cladding start to allow the building to dissipate into the sky being a lighter color, rather than a darker color, which is very much in tune with the neighborhood. Voxman School of Music has the same material, terracotta cladding which has a light gloss to it, which will start to reflect in the sky and the surrounding environment. As one approaches from the west, the recesses of the building are much deeper than one might see on a building like the Rise and that matters a lot to how one experiences the project on the urban setting has been broken up into smaller components. Griffith pointed out they were very intentional and have the living spaces pointed away from the building per se as opposed to facing towards the courtyards. For instance, from across the front edge, the living space for the west building to the east building is 160 feet in distance and they thought that was critical to the safety and security of the students as they're living. Looking at the development from the south in the foreground would be an office space on the first floor, the materials are just a bit darker, which kind of grounds the building, but also a lot of glass striations along the facade, as well as many different recesses, including the forecourts, enhance the pedestrian experience on the street, and make it a friendly experience as you walk through. Next Griffith showed some images one would walk through the development as a pedestrian again noting the many, many plants and benches and sort of colored paving and things that will help make this place more friendly and engaged and give some depth and friendly experience to the pedestrians. He showed an image of the community space and potentially a classroom area where they could host lectures or informal gatherings. He then showed the forecourt areas, re- emphasizing some of those design characteristics of the way that forecourt is designed to engage the building and becomes more friendly. Some of the elements are the dark paving with the light paving, aligning with the building, colored plantings and things. He showed the connection over on both the west building and the east building and where that connection starts. The connection is 40 feet off the ground, it's the height of a four-story house. The width of that space is 48 feet wide, and the depth of the soffit is 50 feet. Regarding nuts and bolts of the skywalk, it is at the fourth level of the project and set back from Burlington Street. They are very purposeful in the way that they are cladding the skywalk with transparent glass that can be seen through, but also in the way that it's structured so that it appears very spindly and skeletally and would then dissipate into the sky in the way that the colors might reflect the surroundings. They don't think that it impedes the view corridor of the Old Capitol. Griffith added it's worth noting the safety and security point of the skywalk and most of the amenities in the two buildings are in the west building so having access to those amenities is critically important to the success of the east building. Griffith next took a moment to talk about the balconies and showed an image, an example, of the type of material and the application on a residential project. The balconies will be 5 -foot by 15 - foot spaces which are very generous for balconies in Iowa City. The 15 -foot side has a perforated metal guardrail. He showed an example of this on a real building in Los Angeles. Without the balconies it will be a cold building. The material on the 5 -foot side of the balcony of t is a metal mesh guardrail and he showed an example of that product in Austin, Texas on a sky bridge that connects a couple residential buildings. With this material again they are trying to provide as transparent as possible, but keep the safety of the students as they're not able to throw things off or jump off or anything like that. The balconies provide a place to soften the edges of the building and help reduce the scale, as well as providing for vertical lines that reduce the building beyond the larger 50 -foot recesses. He noted the access to light and air is critically important to the student's health in this development, and just being able to go outside and get Planning and Zoning Commission January 16, 2020 Page 22 of 29 some fresh air contributes to the success of the project. Students/tenants having access to light and air and just being able to step outside and get some fresh air enhances their experience and their likelihood to rent here and the success of the project. Decker noted that they are not here to disagree or to fight with City staff, he respects their opinions, as again noted they've been great to work with, but they obviously have their own opinions on the project. The reason that the angle parking is important them and the reason that this is different than Washington Street is it is not a street lined with businesses, it's a housing project. It does have a few scattered offices and businesses on it and therefore those additional 20 parking stalls are incredibly critical to the success of those few businesses that are going to be there. The project already has a very small amount of parking for how substantial it is and they don't feel like it detracts from the Capitol Street corridor. With regards to the skywalk it is important for safety at all hours, safety during any kind of weather, to get from one building to the other. A resident should have access to all the amenities if they pay rent there. They shouldn't have to go down into a tunnel in the garages, which would be an incredible safety issue even with cameras and the alternative is they walk outside or there are amenities on both sides, which is not feasible. The better opportunity is to have a set of amenities for the complex that people can access and that is why they want the skywalk. Lastly, Decker said the balconies are probably the biggest issue for them. Beyond the health and fresh air benefits they disagree that they're displeasing visually and think they help break up the facade in ways that help it correspond with the code and softens those corners. With such a big building softening the corners makes a big impact. Additionally, nearly all of the other high-rise and mid -rise buildings in town have balconies. They spent a lot of time working with staff on the materials and look of the balconies, they also spent a lot of time with ICPD and met with them three different times to talk about these balconies. They've heard what people have said, and they've adjusted things to try and get what they want to have on the buildings but in the way that makes sense and meets as many of those boxes as they can. Lastly, leaving them off could make the building functionally obsolete. This building is going to be around for 100 or more years. Yes, it's intended for students now but it might not always be for students. Student populations may decline, they may increase, at some point the upper floors may not be students, the upper floors may be professionals, they may be retirees, the building may convert to retirees down the road, they don't know. Leaving off those balconies is something that can never be corrected. Griffith addressed the amenities and how they came to the amount of academic and recreation spaces in the building. The owner has gone way beyond necessary to achieve a successful project and they did a comparison of the study spaces and academic spaces of this project with the Rise as a comparison example of a project near this one, and this project has per bedroom twice the amount of area of academically oriented spaces. And not only that, but those spaces are spread throughout the building, on each floor, there's a study space, which is not anywhere else in Iowa City. Baker asked about the amenities and if that was the case they made to the staff and the staff has said that's not clear. Griffith stated that's a recent study that they had done so this may be the first time everybody's hearing this. Hensch noted the skywalk that will be built, if approved, will be transparent and that is the intention, not just a rendering. Decker confirmed noting if they vary substantially from the renderings they need to ask Council for permission or changes. Planning and Zoning Commission January 16, 2020 Page 23 of 29 Hensch asked an elevation question in what the change in elevation from Madison Street to the west wall of the Voxman building is. Decker said the elevation change across the site is a difference of 30 feet. Just by appearance wise it's really going to look more like a 11 or 12 story building rather than 15 stories and be lower than Hilton Garden Inn. The top of the flagpole of the courthouse is very similar to the height of this building. Hensch thanked him for reading the statement from the landscape architect. He noted however historically they see lots of really good drawings and then when it's actually implemented all those plantings and trees and grasses suddenly aren't there, or they're dead the first year and they never get replaced. Signs noted a lot of the images show a lot of colorful artwork is committed and will be there. Griffith noted the artwork is conceptual, they are not seeking additional height for artwork, which can be done. The City wants a really engaged experience with this building and artwork is one opportunity to do that. That's something that would have to be vetted but it would enhance the building. Signs agrees that it enhances the building and would be very disappointed if it wasn't there when it was done and makes a big difference on how he looks at this entire project. Martin commented that earlier in the presentation they said there were these sorts of murals in the project and wanted them to confirm that was their intention. Griffith confirmed. Martin asked for clarification having heard a couple of different words such as private residence and student housing and to her those mean different things and what is the current vision for who's living there and how they're living there. Decker replied it's not a dorm, so it's a private student residence. They expect mainly upperclassmen who want to stay downtown. Martin asked if people other than students can live in the facility and Decker confirmed anyone can live there, not just students. Yes the intent is students but if 200 people come and ask if they can live at the top of it that certainly could be a possibility and then making the upper stories have a different look to them. Martin then asked about the security. Decker noted the security plan is complicated and they've gone through it with City staff numerous times, it's not finalized but will be finalized as part of the process. Martin did note she would hate to see that project without balconies. Hensch asked about the step back issue and if there were going to be two step backs, or just one step back. Griffith replied just one step back. Hensch asked at what height. He added that will affect how the balconies above that appear. Griffith said the step back is at the 4th story and because of the slope of the site, the stepback is anywhere from 30 to 50 feet up and also those setbacks are different, they're skinny up on the north side and they're back down below. Martin did note she would hate to see that project without balconies, asked based on the picture they showed if someone fall out of that balcony. Decker noted people have asked him this and the truth is someone could take a chair and shatter a window easier than break through that metal. Martin again reiterated she is not concerned. Dyer noted being a retired professor, she noticed the community space spaces on the upper Planning and Zoning Commission January 16, 2020 Page 24 of 29 levels are smaller than her living room for 30 apartments, that seems inadequate, and there are no lounges like there are in dorms for gatherings other than studying. The other thing she thought of that doesn't seem adequate is all the fancy recreation places, there are no restrooms or locker rooms and going around the track for half an hour, one might need to use a bathroom. It just seems inadequate in in that respect. Another thing that disturbs her a great deal is making affordable living in lieu of the buildings that are on this site, a relatively affordable housing close to campus and replacing affordable housing close to campus with luxury residential housing close to campus, and wherever those $9 million dollars are going to go with someplace else farther from campus. The City is trying to integrate affordable housing within the community, scattered throughout the community and this is a monstrous project closing out affordable living. The last thing that bothers her a lot is blocking the light from the offices in Voxman Music Building. It's going to have a blank wall they are looking at and that is not neighborly. Dyer said for those reasons she is going to vote no. Decker addressed the question on size of the study spaces on the floors. As already mentioned they have way more than any other building of this size. a lot more than approved buildings in town. Additionally there are a lot of very large spaces on the ground floor, that was that was done intentionally because the engagement with the pedestrian experience in a building that doesn't require any commercial space on the ground floor, it could be residential all the way up, is incredibly important and they felt like those spaces will be were students are engaged. It is not a dorm, it's a private residence but it's also important to the City that they have that type of engagement. They feel it is a better project than having large spaces up above. With regards to the affordable housing comment, the units that are going to be there, he would not call these luxury or that this is going to go into any kind of luxury. The units there now, the Pentacrest Garden Apartments are not the cheapest apartments, they are not affordable housing. The inventory that's there and the inventory that's going to go there are not that much different in terms of rent, but the units and amenities will be so much better. In terms of paying the fee in lieu of was because City Council was very interested in seeing the fee in lieu of, they didn't see that this project is a great place for the application of an affordable housing. It is not a location for a family looking for affordable housing. Voxman in terms of shadow, the majority of that side of the building is not offices and that's not where most of the windows and engagement are. It also won't be in shadow until midday through late in the evening. That's what the loading dock is, that's where the backdoors to most of the area go. He acknowledged there are some windows on that side of the Voxman Building but stated one can't put up a project like this without impeding on something. In terms of the bathrooms and the amenities there Griffith stated the spaces will have bathrooms. Griffith also mentioned they did a study of the way the windows align with the Voxman Building and did what they could to misalign them so that no one is looking right into an office or a person in the office is not looking right into a living room. Townsend noted looking at the floor plans for the spaces and wondered what the differences are in square feet from the efficiencies to the three bedrooms and why the efficiencies are kind of tucked in between. Griffith said on the fourth level area the efficiency units are 254 square feet and the three-bedroom areas are 963 square feet. Townsend asked how many elevators are in each building. Griffith replied there are four elevators in the west building and five elevators in the east building, one of the elevators in the east building will serve the restaurant. Additionally there are two staircases in the west building and three staircases in the east building. The Planning and Zoning Commission January 16, 2020 Page 25 of 29 building has been designed to meet all egress codes and will be reviewed when they get the building permit. Baker asked if regarding the balcony question, was the total enclosure the original plan or was that an accommodation to a concern raised by the staff? Decker replied they originally proposed open balconies but are okay with the totally enclosed concept now. Baker noted his concern is he can't visualize that on a giant building will look, that's just a leap of faith. Martin asked if it is similar to some of the ones at Vetro. Griffith noted it is the same material. Townsend asked about the student height bonus if other people are going to be living there as well. Decker said to get the height bonus is half a floor of the whole project. The Capitol Street transfer is all but one floor, there's enough square footage in the 304,000 square feet to go from 8 to 14. The last sliver is a combination of historical transfer from the Tate Arms and student housing. Baker noted he has no problem with the height and overall design of this project and hated the buildings that were there now. This is a dramatic improvement over what's there in a lot of ways for the City. His question is on the skywalk, it seems like a missed opportunity. It is such a visible part from the public point of view and seems like a missed opportunity on some sort of design that sets it apart with artistic contributions. Baker feels somebody needs to take that concept and create something original for that space and accomplish the same purpose. It's such a significant visual part of the project that is not really taking advantage of the opportunity. Decker added quickly that in regards to University engagement, he met with Rod Lehnertz and David Keft on this three or four different times, they're very aware of what is happening and have been supportive of it. The other person they met with was Melissa Shivers, Director of Student Engagement, to get her input in terms of security, how students are being treated, what their lessons learned are from dorms, all those good pieces and try to integrate as much of that as they can into their design. Bill Gearhart (President, State Building Construction Trades Council) and has been a resident of Iowa City since 1969. He has seen a lot of changes. The Building Trades Council is an umbrella organization for the 16 different craft unions that perform construction work. They are excited about this project, it's big, its bold, it goes up instead of sprawls and it replaces a bunch of outdated apartment houses that are there now. This is going to be a big improvement and going to be a lot of jobs for a lot of construction workers. 2 million -man hours is an awful lot of paychecks for skilled trades people and their selection of a general contractor that's local and does quality work, is going to be really good for the building, for the building trades, and for our city. So they are in complete support of this project. Hensch closed the public hearing. Parsons moved the Commission approved DRC19-04, an application submitted by Rob Decker requesting a Level 11 design review which includes a 7 -story height bonus request for two 15 -story buildings located at 12 East Court Street including the seven staff recommendations. Signs seconded the motion. Planning and Zoning Commission January 16, 2020 Page 26 of 29 Hensch stated he is always super supportive of staff, but he happens to disagree with them this time about the removal of the skywalk. A transparent skywalk would not obstruct the view, this is Iowa with terrible weather and it's integral to this project. Hensch noted he is a big fan of skywalks, the skywalk between the County Administration Building and the Health and Human Services Building was just a brilliant idea, he uses it every day. He has mixed feelings about the balconies, he purposely drove around buildings around town to look at balconies today and noted that on the Chauncy all 19 stories has balconies. He can understand the police department's concern with younger persons and their behavior sometimes, but it would be unfortunate to not have them. Hensch noted feeling much better about the landscaping after hearing the statement from the architect. Martin also notes she has been in Iowa City her entire life, born here, and loves the idea of so much happening that is so Iowa City centric, the people that are involved, the building, workers, that's very important stuff. She thinks a skywalk is very cool and liked Baker's idea of something fun with this skywalk such as shown in the picture of something in Houston that had a swanky skywalk. Martin also stated she loves a balcony, she sells a lot of real estate and people love an outdoor space, no matter in what form. She also really likes the art piece, more art the better. Signs stated he is in agreement with both the skywalk and the balconies, he thinks the skywalk is an added positive note to this project. As one is driving up the hill, they may lose a 10 second view of the Old Capitol but that is not a huge problem. The fact they've made such a broad streetscape and really opened up that area makes a better view. Signs noted he would be in favor of taking out the recommendation to remove the skywalk. Additionally he feels the balconies are important. What concerns him the most is noise, but that is present in almost any student housing situation and they are used to it whether it's right good, bad, right or wrong. He is personally am not a huge fan of the color scheme but will note let that sway his decision. He is totally in favor of allowing balconies as long as they are screened and protected so that people aren't throwing things off the 15th floor and doing things like that. He does feel the look is extremely monolithic and was hoping to see some rooftop terraces and some variation in height but overall they've done enough other nice things that he can live with. He is inclined to vote in favor after they remove the skywalk and balcony removals. He also really wants to emphasize how important artwork is to the beauty and character of the project. Finally, he hopes the landscaping plan does work well and is maintained well as they say it will be. Parsons stated he is also in favor of removing staff recommendations one and three and feel others have summarized his opinions as well. He does really hope that the developers follow through with the artwork and landscaping because the ground floor is what people will see. He really impressed by the project and thinks it will be a great asset. Signs added one more comment, he doesn't have a problem with the angle parking, he thinks it adds to the width of the whole corridor there and would rather see 40 parking spaces over 20 because it is such a large project. Baker noted he is very pleased with this project he has never been bothered by the height question considering the topography of the area. He did reiterate the design is a leap of faith, it looks good on paper, hopefully it will look like that in reality. Going back to the question of the skywalk. If there is going to be a skywalk, he'd like for the Commissioners to mandate that skywalk design go through some sort of design review process that requires a little bit more Planning and Zoning Commission January 16, 2020 Page 27 of 29 thought from the developer about what the thing will look like. In a sense it can be a form of public art and be functional at the same time. Regarding the balconies, he is not bothered by the balconies and experience has shown balconies are useful and not necessarily a dangerous part of any large project. He is not too thrilled about the total enclosure but if that's what the City and the developer can compromise on, that's fine too. He also has no problem with the angle parking. The academic community thing can be resolved one way or the other. Overall it's a vast improvement for the area. Dyer stated she thinks it would be good to remove the angle parking, it's a lot safer for bicyclists to not have angled parking and there are going to be a lot of bicycles in this building and it's not permitted to ride on the sidewalk downtown. Hensch agrees noting the most dangerous part of driving is backing up and if they can minimize people backing up they should do that. Martin commented as a bicyclist she likes angle parking better because she has been doored from parallel parking. Parsons moved to amend his motion on DRC19-04 to approve DRC19-04 with staff recommendations four through seven. Baker asked if there was any desire to make the skywalk go through some sort of design review process. Hensch noted the whole process will go through a design review. Hensch asked if Parsons wanted to include the angled parking recommendation in his motion (recommendation 2). Russett asked to clarify stating the issue is not just with the angled parking, it's also with the width of the travel lanes and width of the sidewalk as well. Hekteon stated ultimately that's going to be a City owned right-of-way so in terms of how it's designed, the City has significant more amount of control over that. Parsons moved to amend his motion on DRC19-04 to approve DRC19-04 with eliminating staff recommendations one and three. Signs seconded that amendment. A vote was taken and the motion passed 5-2 (Dyer and Townsend dissenting). CONSIDERATION OF MEETING MINUTES: DECEMBER 5,201 Signs moved to approve the meeting minutes of December 5, 2019. Townsend seconded. A vote was taken and the motion passed 7-0. PLANNING AND ZONING INFORMATION: Russett noted the special exception for the Kum & Go on South Gilbert Street went to the Board of Adjustment last week. Staff recommended a condition not to have any noise and the Board of Adjustment removed that condition. Planning and Zoning Commission January 16, 2020 Page 28 of 29 ADJOURNMENT: Parsons moved to adjourn. Townsend seconded. A vote was taken and the motion passed 7-0. PLANNING & ZONING COMMISSION ATTENDANCE RECORD 2018-2019 KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member 1/17 (W.S.) 2/4 2/21 317 3/21 4/4 4/18 5/16 6/6 6/20 7/18 8115 9/5 1013 10/17 11/7 BAKER, LARRY X X X X X X X O/E X X X X X O/E X X DYER, CAROLYN O/E X X X X X X O/E X X X X X O/E X X FREERKS, ANN -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- HENSCH, MIKE X X X X O/E X X X X O/E X X X X X X MARTIN, PHOEBE X O/E X X X O/E X X X X O/E O/E X X X X PARSONS, MAX X X X X X X X X X X X X O/E X X X SIGNS, MARK X X X X X O/E X X X X O/E X X X X X THEOBALD, JODIE -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- TOWNSEND, BILLIE X X X O/E X X X X X X X X X X X X KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member 12/5 1/16 BAKER, LARRY X X DYER, CAROLYN X X HENSCH, MIKE X X MARTIN, PHOEBE O/E X PARSONS, MAX X X SIGNS, MARK X X TOWNSEND, BILLIE O/E X KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member