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2024-08-01 Info Packet - DRAFT
City Council Information Packet August 1, 2024 IP1.Council Tentative Meeting Schedule IP2.Work Session Agenda IP3.Request for Proposal: Private Developer for the 21 S Linn Street Property [DRAFT] IP4.Pending City Council Work Session Topics IP5.Memo from City Clerk: Proposed Council Meeting Schedule, January - December 2025 IP6.Memo from Bloomberg Harvard Summer Fellow: Expanding Access to Affordable Housing Through Repositioning of Public Housing IP7.Quarterly Investment Report: April 1 - June 30, 2024 IP8.State of the Cities: 2024 Report IP9.Press Release: Listening Post announced for August 17 at the Farmer's Market IP10.Civil Service Examination: Community Service Officer - Support Services Assistant Council Tentative Meeting Schedule August 6 Work Session Miscellaneous Draft Minutes August 1, 2024 City of Iowa City Attachments:Council Tentative Meeting Schedule Item Number: IP1. August 1, 2024 Council Tentative Meeting Schedule City Council Tentative Meeting Schedule Subject to change August 1, 2024 Date Time Meeting Location Tuesday, August 6, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, August 20, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, September 3, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, September 17, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, October 1, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, October 15, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Monday, October 21, 2024 4:30 PM Joint Entities Meeting TBD Hosted by the City of University Heights Monday, November 4, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, November 19, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, December 10, 2024 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Item Number: IP2. August 1, 2024 Work Session Agenda Attachments:Request for Proposal: Private Developer for the 21 S Linn Street Property [DRAFT] Item Number: IP3. August 1, 2024 Request for Proposal: Private Developer for the 21 S Linn Street Property [DRAFT] 1 August 1, 2024 Request for Proposal: Private Developer for the 21 South Linn Street Property NOTE: This document constitutes a Request for Proposal, and is not a request for professional services. This Request for Proposal is not a request for a bid or a construction contract, but it is subject to Iowa Code Section 403.8 related to transfer of real property. Moreover, any acceptance of a proposal may result in a binding contract between the City and the proposer, contingent upon certain legislative acts of the City Council related to sale of land and approval of a Development Agreement. Notice to proposers: Submittals must be submitted electronically via IonWave as directed on the City’s website at https://www.icgov.org/government/departments-and-divisions/public- works/engineering/construction-project-bids and https://icgov.ionwave.net/Login.aspx. Submittals must be complete and uploaded to IonWave in their entirety before 1:00 p.m. (CST) on Friday, November 1, 2024. Submittals should include one (1) electronic (PDF) copy of the submittal. Hard copies or faxed submittals will not be accepted. Late submittals will not be evaluated so applicants are encouraged to allow sufficient time for upload into Ion Wave to avoid encountering last-minute delays or technical difficulties. At its sole discretion, the City retains the right to reject any or all submittals, to ask for clarification, to enter into negotiations to discuss cost, scope of work, procedures, and final work product. Acceptance of a proposal does not constitute approval for construction purposes; other normal administrative and legislation procedures and actions may be required including but not limited to property sale and approval of financing, site plan, development agreement, and building permits. Inquiries to clarify the requirements of the RFP must be made no later than Wednesday, October 23, 2024. All inquiries should be directed via e-mail to: Rachel Kilburg Varley, Economic Development Coordinator, City of Iowa City, Iowa 410 East Washington Street, Iowa City, Iowa 52240 319-356-5248 | rkilburg@iowa-city.org All inquiries and staff responses will be posted for public viewing on the project posting in Ion Wave (https://icgov.ionwave.net/Login.aspx) within three (3) business days of the response. Requests for meetings with project teams or other interested parties will not be accepted. 2 Table of Contents Section 1: Background Information ................................................................................. 3 Section 2: About Iowa City & Downtown Iowa City ........................................................ 6 Section 3: Project Description ......................................................................................... 8 Section 4: Potential Sources of Public Financial Assistance and the Development Agreement ..................................................................................................................... 12 Section 5: Submittal Requirements .............................................................................. 14 Section 6: Reservation and Disclosures ....................................................................... 17 Section 7: Evaluation Criteria ....................................................................................... 19 Section 8: Non-assignment of Interest ......................................................................... 20 EXHIBIT A: 2021 ALTA Land Survey ............................................................................ 21 EXHIBIT B: Iowa City TIF Policy ................................................................................... 22 EXHIBIT C: Environmental Assessments ...................................................................... 23 EXHIBIT D: Litigation Statement ................................................................................... 24 EXHIBIT E: Signature Form .......................................................................................... 25 3 Request for Proposals Private Developer for the City of Iowa City 21 South Linn Street Section 1: Background Information This Request for Proposal (RFP) is directed to private developers and development teams interested in the development of a mixed-use building (the “Project”) at 21 South Linn Street. The City’s goal is to convey the property to the development team which best meets the City’s goals for a contextual, mixed-use development incorporating property tax revenue-generating uses on a prominent downtown corner. The Project site, 21 South Linn Street, is the easternmost parcel of the block bounded by Dubuque, Linn, and Washington Streets. The Project property is approximately 0.4 acres or 15,000 SF. The project site is geographically situated near several critical public facilities. The Tower Place Parking Ramp (510 parking spaces) is diagonally adjacent to the northeast corner of the parcel along South Linn Street. Serving important civic connections, the Iowa City Senior Center is located directly east across South Linn Street and the Iowa City Public Library is located approximately one block south on South Linn Street. Prominent public open spaces, including the Pedestrian Mall and Chauncey Swan Park, are located within one block of the site. Location maps of the project site are included in the subsequent pages. An ALTA land survey completed in 2021 by a previous owner prior to the demolition of the site is attached as Exhibit A. The site is currently owned by the City of Iowa City. The City purchased the site to facilitate private redevelopment in a manner that is in the best long-term interests of the downtown economy and larger community. Additionally, it is expected the private development will generate annual property tax income which the City can reinvest in critical public services. The purpose of this RFP is to solicit proposals from developers and development teams for the development of a contextual, mixed used, and property tax generating building on this property. The City intends to work toward conveying this property to the selected development team. Project goals are consistent with the City’s FY23-28 Strategic Plan, Downtown Master Plan, and Tax Increment Financing (TIF) Policy. Specific project goals are detailed further in Section 3: Project Description. 4 Aerial Maps of Project Site – 21 S. Linn Street View map online: https://gis.johnsoncountyiowa.gov/piv/ (parcel # 1010312020) Washington St 6 Section 2: About Iowa City & Downtown Iowa City Iowa City is a vibrant Big Ten university town located in Johnson County in east-central Iowa. Based on 2020 U.S. Census data, Iowa City has a population of 74,828. The population of the larger Iowa City Metropolitan Statistical Area (MSA) is approximately 175,428 and has increased 28.5% since 2000, outpacing both the state of Iowa and the United States by nearly triple. University of Iowa and University of Iowa Hospitals & Clinics: Iowa City is home to the University of Iowa with approximately 31,500 students, and the University of Iowa Hospitals and Clinics, one of the largest teaching hospitals in the nation. The academic and research mission of the University, along with the healthcare services and employment provided at the hospitals and clinics, have a stabilizing influence on the area. As a center of culture, athletics, education, and commerce, the University attracts millions of visitors throughout the year. The University of Iowa campus is adjacent to Downtown Iowa City, with several academic facilities and health clinics located directly within the Downtown District. This location fosters a deep town-gown relationship between the University’s students, faculty, staff, and guests and Downtown Iowa City. Strong and Diverse Economy: Iowa City boasts a strong and diverse economy, anchored by the University of Iowa (23,488 employees) and the University of Iowa Hospitals and Clinics (9,443 employees). The second largest employer is the Iowa City Community School District, which has 2,000 employees and serves more than 14,000 students in the Iowa City area. Iowa City’s historically low unemployment rate (2.1% as of May 2024) is demonstrative of the city’s stable economic conditions. Iowa City also hosts a number of national and international businesses, including several Fortune 500 Companies. Iowa City is home to ACT, RR Donnelley, and Procter and Gamble; as well as many smaller industries and businesses including over 150 businesses in Downtown Iowa City. In 2023, Iowa City was named the Small Business Administration’s Iowa Small Business Community of the Year. Arts & Culture: Iowa City is the first city in the United States to be named as a UNESCO City of Literature due to the heritage around the University of Iowa Writer’s Workshop and the city’s deep literary culture and history; this designation attracts events and writers from around the world. The City of Iowa City also offers many arts and cultural attractions including music and arts festivals throughout the year, venues such as the historic Englert Theatre, Film Scene nonprofit cinema, and Riverside Theatre. National Recognitions: Iowa City has a track record of being one of the best places in the country to live, work, and recreate. Recent recognitions include: • The Best College Towns in the Midwest, Condé Nast Traveler • Top 20 Best Small Town to Retire, HGTV 7 • Top 100 Places to Live in the US, Livability • #4: Best Cities For Working Parents, SmartAsset • #46: Best Places to Live in the US, Livability • #13: The 50 Happiest Cities in the United States, USA Today Downtown Iowa City Downtown Iowa City is a vibrant economic and cultural hub of the Iowa City community. It is home to many independent, locally owned boutiques, shops, restaurants, residential, grocery, and entertainment venues along with a variety of major festivals such as Iowa Arts Festival, Iowa City Jazz Festival, Friday Night Concert Series, Block Party, and many other celebrations and parades. Downtown Iowa City also features one of the few remaining pedestrian malls in the nation, which serves as a popular location for events and festivals and is lined with sidewalk patios. From July 1, 2023 to June 1, 2024, the Downtown District had 907,800 visitors, creating 8.8 million unique visits. Downtown Iowa City’s design aesthetic features a valued historic building stock alongside contemporary architecture, reflecting the authenticity of a Downtown that has evolved over the past 175 years. It offers a bikeable and walkable urban grid and the main public transit interchange offering access to both the City’s and University’s free bus service. The City, Downtown, and University of Iowa have made important policy, program, and financial investments in recent years to foster a clean, safe, and welcoming downtown environment for all community members. Downtown Iowa City’s adjacency to the University of Iowa central campus, Old Capitol, and Pentacrest creates a unique and important connection between the 31,500+ students and 32,900+ staff and faculty and the larger community. The University of Iowa offers over 100 fields of study and features one of the largest teaching hospitals in the country. The University has consistently earned ranking as one of the nation’s top public universities while the hospital has been named one of the best hospitals in the country and one of the top 100 hospitals in the world. The University’s academic events, readings, speakers, concerts, arts and cultural exhibits and performances, and athletic events attract hundreds of thousands of visitors to Iowa City each year. The 21 S. Linn project is site is located nearby several important public facilities and civic connections in the Downtown. The Saturday morning farmers market, located just one block east of the project site, sees tens of thousands of visitors each year between May and October. The Iowa City Public Library, approximately one block south, has served the community from a downtown location since 1896 and last year welcomed 526,659 visitors from across Johnson County with over 1.2 million checkouts. The Iowa City Senior Center, located directly across S. Linn St. from the project site, serves nearly 1,500 members and over 100,000 visits per year. More information about Downtown Iowa City can be found at www.downtowniowacity.com and www.iowacityarea.com. 8 Section 3: Project Description Overall, 21 S. Linn project proposals should align with and contribute to general vision for the Downtown including increasing taxable valuation of the property, encouraging projects and uses which draw and increase the number and diversity of people working, living, and visiting downtown, fostering a sustainable and authentic urban center, and providing a pedestrian-oriented, safe, and inviting environment. Project Goals The 21 S. Linn Redevelopment Project is envisioned as a mixed-use building which complements and takes advantage of the close proximity to key assets in Downtown Iowa City, including the Tower Place Parking Ramp, and other previously noted civic facilities. The building should promote an inclusive urban experience which advances City and Downtown goals including economic viability, walkability and multi-modal transportation, art and culture, safety and cleanliness, and engaging street-level design. In general, Proposals are encouraged to align with the values and priorities outlined in the City’s FY2023-2028 Strategic Plan and other adopted plans as referenced in the Iowa City TIF Policy (Exhibit B). Proposals to this RFP should describe how they are meeting one of more of the following Project Goals: o A mixed-use building with active and engaging commercial (retail, recreational, entertainment, dining, etc.) uses on the first floor. Upper floors may be commercial, office, entertainment/recreational, hotel, residential or a combination of uses. If commercial uses are proposed, the City encourages consideration of uses which support the small business culture of Downtown Iowa City as well as office, dining, entertainment, or other uses that provide clear benefit to the larger downtown economy and which are not alcohol-centric. Please note that a recent City Space Needs Study has recommended the City may need up to 25,000sf of office space to meet projected needs in the coming years. Submittal requirements will ask teams to comment on the viability of the City owning or leasing upper floor office space, given other proposed uses in the building. Inclusion of City office space at this site has not yet been determined by City Council and is not to be considered a preference or requirement by project teams. o A mix of market and affordable rate residential is strongly encouraged for a portion of the building. Luxury housing focusing solely on the student- aged demographic will not be considered. For any residential units that are proposed, affordable housing is encouraged for at least a portion of the project. A mix of unit types which diversifies the everyday users of downtown is also encouraged. To be eligible for TIF incentives, a minimum of 15% of units must serve rental tenants at or below 60% AMI (or below 110% AMI for units for sale) for at least 20 years, but with 9 longer-term and permanent affordability preferred. Please see the TIF Policy (Exhibit B) for more details about affordable housing requirements. o High quality construction standards which exceed minimum building code requirements are highly desired. Type I building construction is favored. Wood frame or Type V building construction will not be considered. A construction approach which also demonstrates leadership in climate action is strongly preferred and required for projects seeking TIF incentives (see Exhibit B TIF Policy for more details). o High quality, contextual architecture recognizing adjacent properties and the broader Iowa City Downtown Historic District is desired along with a design that is welcoming and engaging at the pedestrian-level and to downtown users in general. Parking In the CB-10 Zone, no parking is required for non-residential uses. For residential dwellings, off-street parking is required as follows: • Efficiency and one-bedroom units: 0.5 spaces per unit • 2 bedroom units: 1 space per unit • 3 bedroom units: 2.5 spaces per unit • Units with more than 3 bedrooms: 3 spaces per dwelling unit • Elder apartments: 1 space for every 2 dwelling units Affordable Housing dwelling units provided as described under City Code Section 14-4F are not required to provide on-site parking. Per 14-5A-4F.6, qualifying development may request that the number of required on-site parking spaces be reduced by paying a fee in lieu. Requests above a 50% reduction require review and approval by the Board of Adjustment. Additional information regarding parking requirements that may benefit proposers can be found in Section 14-5A of the Iowa City Zoning Code. If off-site parking is desired in a City parking facility, then an estimated number of spaces desired should be provided in the RFP response. Zoning The property is currently zoned CB-10 (Central Business Zone). The CB-10 zone is a high-density downtown zoning classification intended to promote a compact and pedestrian-oriented development pattern that accommodates a wide range of commercial, service, office, and residential uses. More detail on the CB-10 zone can be found in Iowa City Zoning Code Section 14-2C, Commercial Zones. A link to the Zoning 10 Code is available at https://codelibrary.amlegal.com/codes/iowacityia/latest/iowacity_ia/0-0-0-19281. CB-10 zoning has the following general mass and scale parameters: • Minimum setbacks: 0’ • Maximum front setback: 12’ • Maximum Heights: None* • Maximum FAR: 10** *Development will be subject to Airport Zoning regulations and require a determination from the FAA. **For lots with an approved Floor Area Ratio (FAR) bonus, the FAR may be increased to 12 by providing an off-street loading area. The FAR may be increased up to 15 by providing dedicated Class A Office Space. Consult Iowa City Zoning Code Section 14-2C, Commercial Zones, for more details. Phase I and Phase II Environmental Site Assessment and Other Studies In 2021, a Phase I and Phase II Environmental Site Assessment was completed for the Project site, prior to demolition of the surface parking lot and 2,128 sf single-story commercial building formerly occupying the site. The Phase I Assessment included a records search, identification of past uses of the property, and noninvasive reconnaissance. The Phase II Assessment included soil and groundwater samples and testing. The assessment did not identify any contaminants which exceed applicable statewide standards0F1 and no further investigation was recommended. The transmittal letter of the Phase II site assessment is attached to the RFP as Exhibit C. The full Phase II document is available upon request. Additionally, a Federal Aviation Administration aeronautical study and Geotechnical Engineering Report were also completed by a previous property owner and both documents are also available upon request. Utility Relocation Two transformers owned by MidAmerican Energy are located on a portion of the Project site, at the northwest corner. MidAmerican Energy has previously indicated a willingness to negotiate relocation of this infrastructure. Proposers should be aware of 1 The Iowa DNR reduced the arsenic SWS from 17 mg/kg to 1.9 mg/kg in June 2019. Background arsenic concentrations for arsenic reportedly range from 10 to 13 mg/kg in soils in the area of the site. The arsenic concentrations detected in soil samples were above statewide levels, but are below expected background concentrations and no additional investigation is recommended. More details are available in the Phase II Limited Site Investigation Report, dated June 28, 2021. 11 this infrastructure and be prepared to engage in timely coordination with the City and MidAmerican Energy on potential impacts, costs, and relocation or replacement needs. Alley and Street Access Adjacent to Project Site The proposed building design should support the safe and efficient functioning of the adjacent alley and S. Linn and Washington Streets, based upon proposed building uses and access points. There is a public alley located along the north side of the project site which provides both primary and secondary access for nearby businesses. It is a highly utilized alley by service trucks, passenger vehicles, and pedestrians during all hours of the day. Project proposals should ensure the building design contributes to the safe functioning of the alley for all types of users and guarantees that access for businesses and critical services remains. Additionally, the alley features an overhead lighting installation. The selected project team should be prepared to work with the City and Downtown District to coordinate any temporary removal and/or reconfiguration or replacement that may be necessary to retain this public art feature. Construction & Trades Labor Economic justice standards for fair wage, labor, and safety practices are outlined in the City’s TIF Policy (Exhibit B). Additionally, contractors and subcontractors will be encouraged to employ Qualified Apprentices that participate in a U.S. DOL Registered Apprenticeship Program. 12 Section 4: Potential Sources of Public Financial Assistance and the Development Agreement The City currently owns the Project Site and intends to enter into a property transaction and Development Agreement with a development team who will commit to constructing a mixed-use building accomplishing several City goals. The City is seeking development proposals for the Project that maximize private debt and equity financing, and leverage other non-City sources to the greatest degree possible. Incentives and/or financial participation potentially available from the City are not intended to replace financing from other private and public sources. Rather, they are intended to be flexible resources that may be able to assist in bridging funding gaps that may be created or compounded by current market conditions, the nature of infill projects as opposed to greenfield sites, and efforts to go above and beyond meeting public interest goals. If financial assistance is requested, the City will work with the selected developer to analyze specific details about the proposed Project financial pro forma and other factors. Potential financial assistance will be based on the project meeting the City’s goals for the property, and the nature and extent of the financing gap identified between the project costs and the available debt and equity to cover those costs. Market-average interest and rates of return on debt and equity investments will be used to evaluate gap financing requests. Project Proposals should include a reasonable estimate of the need for financial assistance, based on a preliminary pro forma. A link to the Iowa City’s TIF Policy attached as Exhibit C. The policy and complementary gap analysis resources are available online at: https://www.icgov.org/business/resources-and-documents. Potential State and Federal Financial Assistance The City encourages proposers to identify and explore potential for state and federal development finance programs to reduce or eliminate the need for City gap financing assistance. Potential programs include but are not limited to: • State of Iowa Jobs Incentive Programs • State of Iowa Development Incentive Programs • New Markets Tax Credit (NMTC) Program • Federal Solar Tax Credits • Federal Energy Efficient Commercial Buildings Tax Deduction 13 Potential Sources of City Assistance The City may contemplate providing the following financial assistance for an identified gap in project financing: • Tax Incrementing Financing (TIF): The Project Site is located within the City- University Urban Renewal Area, thus may be eligible for TIF assistance. TIF incentives may be proposed to be used for gap financing related to site development costs or post-development property tax burdens. Any negotiated TIF incentives will ultimately remain subject to required legislative processes (published notice and public hearing) as well as City Council approval of a Development Agreement which contains the specific terms of incentives. TIF assistance in the form of rebates will be used as gap financing as determined through a gap analysis. The City would likely enlist third party support to review project financials and evaluate the need for TIF. The Iowa City TIF Policy and complementary financial and gap analysis resources are available at: https://www.icgov.org/business/resources-and-documents. • Sale of Project Site: The sale of the Project Site from the City to the developer may be negotiated on terms responsive to the Project’s gap financing needs (and in accordance with state and local law). • LMI Housing and Employment Assistance: Local or federal pass-through funding may be a potential source of financial assistance for projects which include permanent affordable housing. Development Agreement The City will ultimately enter into a Development Agreement with the selected development team. The Development Agreement will include specific terms for the conveyance of the property; security requirements to ensure Project completion; financial terms associated with property conveyance and Project construction; and any additional terms as may be necessary to ensure compliance with the Project goals stated herein. 14 Section 5: Submittal Requirements Proposals must be submitted electronically via IonWave as directed on the City’s website at https://www.icgov.org/government/departments-and-divisions/public- works/engineering/construction-project-bids. Submittals must be complete and uploaded in their entirety before 1:00 p.m. (CST) on Friday, November 1, 2024. Submittals should include one (1) electronic (PDF) copy of the submittal. Hard copies or faxed submittals will not be accepted. Late submittals will not be evaluated so applicants are encouraged to allow sufficient time for upload into Ion Wave to avoid encountering last-minute delays or technical difficulties. At its sole discretion, the City retains the right to reject any or all submittals, to ask for clarification, to enter into negotiations to discuss cost, scope of work, procedures, and final work product. Acceptance of a proposal does not constitute approval for construction purposes; other normal administrative and legislation procedures and actions may be required including but not limited to property sale and approval of financing, site plan, development agreement, and building permits. Inquiries to clarify the requirements of the RFP must be made no later than Wednesday, October 23, 2024. All inquiries should be directed via e-mail to: Rachel Kilburg Varley, Economic Development Coordinator, City of Iowa City, Iowa 410 East Washington Street, Iowa City, Iowa 52240 319-356-5248 | rkilburg@iowa-city.org All inquiries and staff responses will be posted for public viewing on the project posting in Ionwave (https://icgov.ionwave.net/Login.aspx) within three (3) business days of the response. Requests for meetings with project teams or other interested parties will not be accepted. All proposals must comply with the following requirements and must be numbered accordingly: 1. Signed letter on the proposer’s letterhead indicating an interest in the project. 2. Primary contact person and contact information. 3. Legal name and address of the development entity, including all joint ventures, limited partnerships and limited liability companies, and the percentage of interest of each. Proposers are encouraged to include size of their firm, parent company if applicable, and officers/principals of the firm. 15 4. Identification of the legal entity with whom the City would contract, whether the entity exists currently or would be created for the purpose of this project, and the names and titles of all parties authorized to act on behalf of proposer. 5. An organizational chart showing all members of the proposed development team including but not limited to developer, management agency, legal, design professionals, and consultants. Contact information should be provided for each team member. 6. Description of proposer’s previous experience, including a brief description of relevant mixed-use projects where the proposer played a substantial role. The descriptions should include the specific role of the proposer and the current status of the projects. Sufficient reference contact information should be provided for each project in order to permit the City to verify the information. 7. A description of the proposer’s financial capacity to obtain acquisition, construction, and permanent financing, including letters of interest from lenders and/or tax credit allocates. A discussion of the financing sources and partnerships utilized for prior projects and references from these parties are also welcome and encouraged. 8. A narrative description of the proposed Project, including how it meets the goals outlined in “Section 3: Project Description” of this RFP and a description of how the project and design is contextual within the historic downtown district. 9. State the viability of the City owning or leasing upper floor office space, given other proposed uses in the building. Inclusion of City office space at this site has not yet been determined by City Council and is not to be considered a preference or requirement by project teams. 10. A visual description of the proposed Project, including: a. Conceptual renderings or schematics, including one or more which show the proposed building in relationship to adjacent properties; b. Conceptual square footage of commercial space; c. Conceptual square footage and size/type of residential units; d. Schematic layout of commercial and residential floors and parking; e. Schematic or rendering of the pedestrian-level façade. 11. Narrative description of the proposer’s plan for construction and financing of the Project. This should include: a. Organization and management approach to the Project; b. General schedule for completion of the Project following property acquisition; 16 c. Description of a general financing plan and a preliminary pro forma including anticipated and/or potential financing sources; d. Copies of any letters of intent from prospective purchasers and/or tenants; e. Description of the marketing approach to secure purchasers or tenants; f. The proposed purchase price and the explanation of the purchase price for the Project property; g. The proposed amount and description of gap financing assistance for the Project. 12. A statement relative to whether any of the principals, development entities, or members of the development team have ever been indicted for or convicted of a felony, and a description of any and all litigation involving the principals, development entities, or members of the development team during the past five years (Complete Exhibit D). 13. References from financial institutions, city governments, and community organizations that will permit the City to verify the capabilities of the proposer. 14. Identify any unique resources, capabilities, or assets which the proposer would bring to the Project. 15. Proposal submittal signature form (copy attached as Exhibit E). 17 Section 6: Reservation and Disclosures Reservation Issuance of this RFP does not commit the City of Iowa City to enter into a Development Agreement, pay any costs incurred in preparation of a response to this request, or to procure or contract any services or supplies. The City reserves the right to reject any and all proposals and to make recommendations for changes in any proposal submitted, to waive informalities or irregularities, and may, in the process of this recommendation, allow the developer to make such recommended changes in its proposal. The City reserves the right to require additional information from the developer, financial or otherwise, and to hold meetings with any developer to review the offer and development proposal, and to waive any of the requirements set forth herein. The City may, at the conclusion of its review, recommend that the City Council, in conjunction with appropriate legislative process, enter into a Development Agreement with the selected developer. As an equal opportunity/affirmative action employer, the City prohibits discrimination on the basis of race, creed, color, sex, age, religion, sexual orientation, gender identification, marital status, disability, or national origin. Minority and women’s business enterprises will be afforded full consideration and are encouraged to respond. Disclosure of Proposal Content After the deadline for submissions of proposals, the contents of the proposals will be placed in the public domain and open for inspection by the public. Trade secrets or proprietary information that are recognized as such and are protected by law may be withheld if clearly identified as such in the proposal. Disposition of Proposals All proposals become the property of the City and will not be returned to the proposer. Independent Contractor The selected developer will act as a separate legal entity and will not be in joint venture, employment or be otherwise affiliated with the City. The developer is responsible for all insurance, salaries, contracts, withholding taxes, social security, unemployment, worker's compensation and other taxes and other liabilities it incurs in connection with the Project, and shall hold the City harmless from any and all claims for the same. The submission of a letter of interest and statement of qualifications will not require a fee or deposit. The City shall have the right to verify the accuracy of all information submitted and to make such investigation as it deems necessary or appropriate to determine the ability of a prospective developer to carry out the Project. The City reserves the right to reject any response where the evidence or information does not 18 satisfy the City that the prospective developer is qualified to carry out the Project, is a person or firm of good reputation or character, or if the developer refuses to cooperate with and assist the City in the making of such investigation. 19 Section 7: Evaluation Criteria Proposals must be fully responsive to the requirements described in Section 5, and to any subsequent requests for clarification or additional information made by the City. Proposals must comply with and are subject to all provisions of applicable federal, state, and local laws on urban renewal development, zoning, and building regulations. Proposals failing to comply with the submission requirements or those unresponsive to any part of this solicitation may be disqualified at the City’s sole discretion. The City may, at its sole discretion, elect to waive requirements either for all proposals or for a specific proposal. Evaluation Process A City staff review committee will evaluate proposals individually and in the context of all other proposals and recommend semi-finalist proposal(s) to the City Council. The City Council will ultimately determine finalist proposal(s) selections and may invite finalist(s) to present and answer questions at a public meeting of the City Council. At the City’s discretion, requests for timely response of clarification, additional information, or modifications to proposals may be made to a proposer at any point in the selection process. Additionally, the City reserves the right to accept and/or reject proposals without seeking presentations at a public meeting. The City will inform proposers of the status or acceptance and/or rejection of proposals upon conclusion of each stage of the evaluation process. Evaluation Criteria The criteria against which each proposal will be considered may include the following (in no particular order), as well as other factors considered by the City as appropriate: 1. Compliance with Section 5: Submittal Requirements 2. Alignment with goals, objectives, and regulations contained in Section 3: Project Description 3. Developer experience and capabilities 4. Alignment with the City Council’s Strategic Plan values and priorities 5. Market and economic viability of the proposal 6. Long-term fiscal benefit to the City 7. Compliance with all applicable federal, state and local laws, rules, regulations, and policies 20 Section 8: Non-assignment of Interest No developer shall assign or transfer to any other person or corporation, any interest in its proposal prior to execution of a Development Agreement without the express written authorization of the City. After execution of a Development Agreement and until the proposed development has been completed, no interest in the contract may be assigned or transferred without the written consent of the City, except as set forth in the Development Agreement. 21 EXHIBIT A 2021 ALTA Land Survey [ document begins on next page ] 22 EXHIBIT B [ document begins on next page ] Iowa City Tax Increment Financing (TIF) Policy TIF policies | approved Nov. 21, 2017 | Page 1 Tax Increment Financing (TIF) Policies City of Iowa City’s Strategic Plan Alignment with the City’s Strategic Plan will provide the first indicator about whether a project may be eligible for TIF. To the extent that a project helps achieve the City’s Strategic Plan objectives and is located within an established Urban Renewal Area (Exhibit A), it may be eligible to be considered for TIF. 2016 – 2017 City of Iowa City Strategic Plan The Strategic Plan intends to foster a more inclusive, just and sustainable Iowa City a)Promote a strong and resilient local economy b)Encourage a vibrant and walkable urban core c)Foster healthy neighborhoods throughout the City d)Maintain a solid financial foundation e)Enhance community engagement and intergovernmental relations f)Promote environmental sustainability g)Advance social justice and racial equity In addition, the City will continue to seek projects that diversify existing uses in the given urban renewal area. Such projects may include Class A office, hotel, entertainment, and residential uses, provided market studies and financial analysis support such investment. Sustainability New office and mixed-use building projects receiving TIF in any urban renewal area shall be certified Silver or better under the LEED for New Construction Rating System current at the time of design development. New Residential projects shall be certified Silver under the National Green Building Standard or the LEED Green Building Rating System appropriate to the building type. Further, for LEED projects, at least 8 points shall be awarded for the LEED-NC Optimize Energy Performance credit to ensure that TIF projects help meet the City’s carbon emission reduction goals. This requirement does not apply to renovation projects. Downtown building heights and character Applications for TIF support for downtown projects must indicate how the proposed project will help fulfill the overall vision of the downtown portion of the Downtown and Riverfront Crossings Plan, “to preserve and enhance the historic buildings and character of Downtown, while encouraging appropriate infill redevelopment with a mix of building uses.” (p. 18, Downtown and Riverfront Crossings Master Plan.) Except under extraordinary circumstances, applicants seeking TIF should ensure that their projects fall within the Desired Height ranges shown on the Downtown and Riverfront Crossings Master Plan’s building heights diagram shown on p. 106 of the Plan (Exhibits C and D of this document). The height considerations shall only apply to area inside the border of Iowa Avenue, Gilbert, Burlington and Clinton Streets. Deviations from the Downtown and Riverfront Crossings Plan’s guidelines shown on p. 56 and the Desired Building Height map (p. 106 of the Plan and Exhibit C, following) may be considered if the TIF policies | approved Nov. 21, 2017 | Page 2 applicant demonstrates that 1) the proposed building and uses will help fulfill the overall vision of the Plan by facilitating – architecturally, materially, and/or financially –the preservation and enhancement of adjacent or nearby historic structures, if applicable, and 2) that the proposed building will provide exceptional public benefits. Exceptional public benefits are ones that go well beyond what is required by other sections of this policy, and which advance the City’s vision of fostering a more inclusive, just, and sustainable city. These public benefits may include: 1.innovative building design which produces affordable housing for long-term residents and/or affordable retail space for locally-owned businesses; 2.attractive public space that is available and easily accessible to all city residents; 3.good job opportunities for low-income youth; 4.carbon-neutrality, or achievement of LEED Gold or higher certification; and 5.public display of paintings, photographs, sculpture, poems, and other visual and literary art, maps, or historical artifacts that express how diverse groups have contributed to (and are contributing to) the unique character and identity of contemporary Iowa City community and culture. This list is not intended to constrain the developer’s ingenuity in proposing public benefits that clearly help foster an inclusive, just, and sustainable city. For a proposed project which would be located on a street with a substantial number of buildings eligible for historic landmark designation, the tallest portion of the project must be stepped back from its street frontages far enough to produce “no significant impact” on the existing historic character of the street fronts when seen from the public right-of-way. The provisions of this section will apply until a Downtown Form-Based Code or urban design plan is adopted. Historic preservation Properties in the downtown area are designated one of four ways. Those that are: a)on the National Register of Historic Places, b)individually eligible (for the National Register of Historic Places)/key properties, c)contributing properties (those that add to the historical integrity or architectural qualities to make a local and/or national historic district significant), and d) non-contributing properties. New construction requiring the demolition of structures on the National Register of Historic Places, or those identified as individually eligible for the National Register of Historic Places or those identified as key properties are not eligible for tax increment financing. Further, all rehabilitation to these structures shall be done in such a manner as to preserve or restore any historic structure to productive use. The guidelines for determining if rehabilitation does preserve or restore the structure shall be those set forth in the 1990 revised edition of the Secretary of Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. All additions to buildings on the National Register of on the National Register of Historic Places or those that are individually eligible for the National Register of Historic Places or are key properties shall be developed in such a manner as to be architecturally compatible with existing development. (Amendment #9, 2001 City-University Project 1 Urban Renewal Plan.) TIF policies | approved Nov. 21, 2017 | Page 3 Properties designated contributing may be eligible for tax increment financing and any redevelopment of contributing properties should preserve and enhance the historic character of the block Historic preservation projects may be eligible for TIF funding via district-wide TIF, to incentivize historic renovation projects that may not add enough taxable value to rely solely on the subject property’s increment. Affordable housing TIF projects in any urban renewal area with a residential component as part of the project must provide a minimum of 15% of the units as affordable to tenants at or below 60% AMI (area median income). If those housing units are for sale, units will be targeted to households at or below 110% AMI. The City may require a lower AMI for rental units. Developers may be eligible to negotiate a fee-in-lieu of providing on site affordable housing, or to provide affordable housing elsewhere in the community, subject to the City’s sole discretion. In part, in exchange for the increased density created for the Riverfront Crossings (RFC) zone, any project with housing in the district, regardless of whether it is a TIF project, must include 10% affordable housing. TIF policy in the RFC zone is that any financial gap due to affordable housing created by zoning requirements (10%) is the responsibility of the developer and that affordable housing above the required 10% in RFC could be TIF eligible, if the financial analysis determines a gap. Economic Justice The City will not contract with or provide any economic development incentives to any person or entity who has participated in wage theft by violation of the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act (FLSA) or any comparable state statute or local ordinance, which governs the payment of wages. Misclassification of employees as independent contractors is a violation of the FLSA and is included in the definition of wage theft. Development Agreements for TIF projects shall include in the contract for the construction of the Minimum Improvements, between the Developer and the General Contractor, the following written provisions, proof of which must be provided to City prior to the start of construction: a)Agreement by the General Contractor to comply with all state, federal and local laws and regulations, including, but not limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. b)Agreement by the General Contractor to provide to the Developer and the City no later than the filing of an application for issuance of a building permit, the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. c)Demonstration by the General Contractor that it has the capacity to meet all performance, and labor and material payment, bonding requirements relative to the Minimum Improvements. d)Providing to the City a certificate by the General Contractor’s insurer that it has in force all insurance coverage required with respect to construction of the Minimum Improvements. TIF policies | approved Nov. 21, 2017 | Page 4 e)Demonstration by the General Contractor that it has required all subcontractors to agree, in writing, that the subcontractor will comply with all state, federal and local laws and administrative rules and regulations, including, but not limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. Quality jobs When a TIF project is based on the creation or retention of jobs, certain wage thresholds must be met to help ensure the City’s financial participation only serves to increase the average area wage. This policy does not require that every job associated with a TIF project, such as those that might be created by the addition of a new retailer in a building, or the construction jobs required to build a TIF project, meet these standards. Rather, as a policy to incentivize the addition of high paying jobs to the local economy, a jobs-based TIF incentive would be structured using the thresholds of the State of Iowa High Quality Jobs Program. Other Public Interests Recognizing that some non-profit activity and/or investment in public infrastructure may influence additional private economic development activity, TIF may be an appropriate tool to further investment in Iowa City’s cultural and/or natural assets. Understanding that TIF is made possible by the increased value in real property, and that most cultural organizations and public lands are generally tax exempt, a TIF project would only be possible by using increment from the district. Examples include: a)Arts and cultural activities or facilities b)Historic preservation c)Public improvements that serve as a catalyst for the economic development of the urban renewal area Underwriting and Application The following policies are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a)Complete application submission. b)But for” standard: Each project must demonstrate sufficient need for the City’s financial assistance, such that without it, the project would not occur. Every other financial piece of the project must be in place prior to the consideration of TIF. TIF assistance will be used as gap financing as determined through gap analysis. c)Method of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the taxpayer. As such, the City strongly prefers the use of TIF rebates over the shortest term possible. d)Developer equity: Developer Equity must be equal to or greater than City funding. TIF assistance shall not exceed the amount of equity provided by the Developer. Equity is defined as cash, unleveraged value in land, or prepaid costs attributable to the project. e)Project based TIF: TIF for private developments must generate TIF increment sufficient to be self- supporting. Only in exceptional cases, will the City consider using district-wide increment. TIF policies | approved Nov. 21, 2017 | Page 5 Exhibit A Urban Renewal Areas Enabling Tax Increment Financing TIF policies | approved Nov. 21, 2017 | Page 6 Exhibit B City-University Project 1 Urban Renewal Area TIF policies | approved Nov. 21, 2017 | Page 7 Exhibit C Downtown and Riverfront Crossings Master Plan Building Heights diagram TIF policies | approved Nov. 21, 2017 | Page 8 Exhibit D Downtown and Riverfront Crossings Master Plan Building Heights diagram 23 EXHIBIT C Phase II Environmental Assessment: Engineer’s Transmittal Letter (full Phase I/III Environmental Assessment Reports available upon request) [ document begins on next page ] Terracon Consultants Inc. 2640 12th St SW Cedar Rapids, IA 52404-3440 P 319-366-8321 F 319-366-0032 terracon.com June 28, 2021 CASL Holdings, LLC 130 East Randolph Street, Suite 2100 Chicago, Illinois 60601 Attn: Mr. Jose De La Maza P: (872) 259-1719 E: jdelamaza@CA-Ventures.com RE: Limited Site Investigation (LSI) 21 Linn Street Iowa City, Johnson County, Iowa Terracon Project No. 06217061 Dear Mr. De la Maza: Terracon Consultants, Inc. (Terracon) is pleased to submit this Limited Site Investigation (LSI) report for the above referenced site to CASL Holdings, LLC (CASL). Our services were performed in general accordance with Terracon Proposal No. P06217074 dated May 12, 2021. Based on our investigation, the laboratory analysis of soil samples identified chemical concentrations of arsenic, barium, chromium and lead above the laboratory reporting limits in borings B-2, B-3 and B-4, but below the applicable statewide standards, with the exception of arsenic over the statewide standard for soil in all three borings. The laboratory analysis of groundwater samples identified concentrations of barium in temporary monitoring wells (TMW)-2 and TWM-4, as well as barium, lead and selenium in in TMW-3 above the laboratories reporting limit, but below the applicable statewide standards. Based on results of the field exploration, no additional investigation is recommended at this time. We appreciate the opportunity to perform these services for you. Please contact us if you have questions regarding this information or if we can provide any other services. Sincerely, Terracon Consultants, Inc. For Jordan M. Smith Dennis R. Sensenbrenner, CGP, PG Staff Scientist Senior Associate 24 EXHIBIT D Listing of Lawsuits or Litigation Within the Past Five Years Lawsuit or Litigation Status or Outcome Comments 25 EXHIBIT E Proposal Submittal Signature Form The undersigned attests to his/her authority to submit this proposal and to bind the firm herein named to perform if the firm is selected by the City of Iowa City. The undersigned further certifies that he/she has read the Request for Proposal, terms and conditions, and any other documentation relating to this request; has complied in all respects with all conditions hereof, and this proposal is submitted with full knowledge and understanding of the requirements and time constraints noted herein. The undersigned hereby further acknowledges that it accepts the terms of the Request for Proposals in its entirety and by the submission of its proposal hereby waives any claims or claims to irregularities that arise out of such RFP, the process employed by the City to solicit and develop proposals, the RFP evaluation process described in the RFP, and agrees to release and hold harmless the City, its employees, agents, and consultants from any claim, loss, or damage arising therefrom. The undersigned hereby authorizes any person, firm or corporation to furnish any credit history and financial condition or other information required by the City to verify information related to the Firm's submission to the City. I hereby certify, on behalf of the undersigned firm, that the above information is true and correct to the best of my knowledge and that the City may rely on the information provided. Firm name: ________________________________________________________ Home office address: ________________________________________________ City, state, zip: _____________________________________________________ Signature: _________________________________________________________ Date: _____________________________________________________________ Attachments:Pending City Council Work Session Topics Item Number: IP4. August 1, 2024 Pending City Council Work Session Topics Attachments:Memo from City Clerk: Proposed Council Meeting Schedule, January - December 2025 Item Number: IP5. August 1, 2024 Memo from City Clerk: Proposed Council Meeting Schedule, January - December 2025 Attachments:Memo from Bloomberg Harvard Summer Fellow: Expanding Access to Affordable Housing Through Repositioning of Public Housing Item Number: IP6. August 1, 2024 Memo from Bloomberg Harvard Summer Fellow: Expanding Access to Affordable Housing Through Repositioning of Public Housing Date: July 30, 2024 To: Geoff Fruin, City Manager From: Naomi Mehta, Bloomberg Harvard Summer Fellow Re: Expanding Access to Affordable Housing Through Repositioning of Public Housing The City of Iowa City participated in the Bloomberg Harvard City Leadership Initiative this last year. A key area of concern that the City wanted to address was that of affordable housing. In 2021, 22% of homeowners with a mortgage and 61% of renters were considered housing cost burdened in Iowa City. Of households over the age of 25, 20% make less than $30,000 annually and another 13% make less than $50,000. It is challenging for these households to find affordable housing within the expensive housing market of Iowa City. To address these challenges, the City wanted to explore the potential of repositioning its federal Public Housing Program and expand its overall housing portfolio by actively acquiring and constructing a robust and diverse stock of City owned units. The City applied to have a Bloomberg Harvard Summer Fellow to undertake this project. The Iowa City Housing Authority (ICHA) occupies a unique position in the city government, and within the Neighborhood and Development Services Department. It serves three counties (Johnson, Iowa, and Washington) under its jurisdiction. It consists of 14 staff members and primarily administers affordable housing through two platforms, the Housing Choice Voucher Program (HCVP) and the federal Public Housing Program. The City also owns and manages 21 additional affordable housing units outside of the above federally funded programs. The Housing Choice Voucher Program falls under the Section 8 program. It is federally funded assistance provided to low-income households to afford decent, safe, and sanitary housing through monthly rent-assistance paid directly to private landlords. ICHA prioritizes households with minor children, elderly, and those with disabilities. It allows households to choose a unit meeting the requirements of the program in any location of their choice. The voucher holding household pays rent to the landlord commensurate to their income level and the Iowa City Housing Authority (ICHA) pays a housing subsidy to the landlord that equals the difference between the market rate rent and the affordable rent paid by the voucher holder. The ICHA currently administers 1,595 Housing Choice Vouchers under various categories. There are over 10,000 households on the City’s current waitlist for assistance; 1,385 of those households live or work in the ICHA jurisdiction and accordingly have priority for receiving a voucher. The Public Housing Program is a federally assisted program under which ICHA is granted a limited amount of federal aid through the US Department of Housing and Urban Development (HUD), to own, operate and manage housing for low-income residents at rents based on their income2. The ICHA currently owns 86 units under this program distributed across the city. The Public Housing waitlist consists of 973 households living or working in the ICHA jurisdiction. To best address the wide gap between our current affordable housing supply and demand, the City needs to expand its portfolio and operations for sustainable growth. However, it is faced primarily with two barriers in addressing this challenge: 1. Financial Burden: The Public Housing Program has operated at a financial loss over the last 4 years. The ICHA has an average expenditure of $966,486 which exceeds their average revenue of $776,384. This program is largely dependent on August 1, 2024 Page 2 federal aid, which has been historically unstable and declined consistently in recent history. A major part of Public Housing expenses is directed toward maintaining the housing properties to the federally required physical property standards and the staff hours in administering the complex regulations of the program. The revenue shortfall has resulted in a declining capital reserve, which otherwise can be used to acquire or develop more affordable housing. 2. Operational Capacity: The complex requirements of program administration, federal compliance, rent determination, rent collection, utility payments, maintenance, and inspections etc. for each unit is handled by two full time staff and disproportionately occupies staff time in comparison to management of affordable units not funded by the Public Housing Program. These barriers restrict the City from being able to more proactively partake in increasing affordable housing supply to the extent possible. Similar challenges are being faced by Public Housing Authorities around the country. As a response, the U.S. Department of Housing and Urban Development (HUD) encourages PHA’s to undertake a “Repositioning of Public Housing” which moves them out of the federal Public Housing Platform and places them on a Housing Choice Voucher Platform. This repositioning allows the City to retain ownership of the current Public Housing units and manage them as local affordable units, and increase the number of Housing Choice Vouchers ICHA can administer through the issuance of tenant protection vouchers for current Public Housing tenants. It shifts Public Housing Authorities from a platform entirely dependent on lower federal aid to a platform which can combine private equity with a higher federal aid amount to assist low-income families. It is important to understand that Public Housing Repositioning is just a change of operating platforms, and not a change of the ICHA’s mission to serve low-income populations with affordable housing. Contrarily, the repositioning can actually provide both immediate and long-term capacity to increase the number of households being assisted without losing control of existing housing stock that is publicly owned. The presentation at your work session on Tuesday will provide a brief review of Repositioning pathways available through HUD and outline the pathway which shall enable the ICHA to operate sustainably and provide capital to increase affordable housing production. The following points of discussion shall be covered in the presentation: • Public Housing | Section 8 Housing Choice Voucher Program • Need for Repositioning • Repositioning options available through HUD, including option best suited for the City. • Potential options for Expanding the City’s Affordable Housing Portfolio Attachments:Quarterly Investment Report: April 1 - June 30, 2024 Item Number: IP7. August 1, 2024 Quarterly Investment Report: April 1 - June 30, 2024 Attachments:State of the Cities: 2024 Report Item Number: IP8. August 1, 2024 State of the Cities: 2024 Report 2024 State of the Cities © 2024 National League of Cities. About the National League of Cities The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. About the Center for Research and Data NLC’s Center for Research and Data provides research and analysis on key topics and trends important to cities, creative solutions to improve the quality of life in communities, inspiration and ideas for local officials to use in tackling tough issues, and opportunities for city leaders to connect with peers, share experiences and learn about innovative approaches in cities. Authors Farhad Omeyr, PhD, Program Director, Center for Research and Data, National League of Cities Ivonne Montes-Diaz, PhD, Senior Research Specialist, Center for Research and Data, National League of Cities Acknowledgments The authors extend their gratitude to the numerous mayors of cities, villages and towns nationwide who dedicated their time to complete the survey questionnaire. The valuable insights provided have significantly enhanced the results of this study. Additionally, the authors appreciate the assistance of OneNLC Staff, which has contributed to the improvement and enrichment of this year’s State of the Cities report. 01 02 03 04 Index Foreword 4 Intro 5 Top Mayoral Priorities in 2024 6 Figure 1. Economic Development, Infrastructure and Housing Among Top Mayoral Priorities in 2024 7 Figure 2. Infrastructure and Energy/Environment Garnered the Most Attention from Residents in 2023-2024 11 Economic & Workforce Development 12 Figure 3. Attracting Businesses and Insufficient Federal Investment Among Major Economic Challenges Facing Cities 14 Figure 4. Business Attraction, Downtown Revitalization, and Workforce Development Among the Most Utlized Strategies by Mayors to Address Economic Development Challenges 15 Infrastructure 16 Figure 5. Increased Funding and Seeking External Support Among the Methods to Address Community Needs in Various Policy Areas 17 Housing 18 Figure 6. High Costs and Lack of Supply Among the Main Housing Challenges for Cities 19 Figure 7. Substance Use, Mental Health, and Cybersecurity Among the Most Concerning Public Health/Safety Issues for American Mayors 24 Conclusion 27 Appendix 28 Figure 1. Rankings of Priorities 2014–2024 30 Table 1. Economic Development, Infrastructure and Housing Among Top Mayoral Priorities in 2024 31 Table 2. Infrastructure and Energy/Environment Garnered the Most Attention from Residents’ Public Engagement in 2023–2024 31 Table 3. Attracting Businesses and Insufficient Federal Investment among Major Economic Challenges Facing Cities 32 Table 4: Business Attraction, Downtown Revitalization, and Workforce Development Among the Most Utilized Strategies by Mayors to Address Economic Development Challenges 32 Table 5: Increased Funding and Seeking External Support Among the Most Implemented Methods to Attend to Infrastructure Needs 33 Table 6. High Costs and Lack of Supply among the Main Housing Challenges for Cities 33 Table 7: Substance Misuse, Mental Health and Cybersecurity Among the Most Concerning Public Health/Safety Issues for American Mayors 34 Endnotes 35 4NATIONAL LEAGUE OF CITIESForeword In the dynamic landscape of local governance, the State of the Cities report reflects the collective vision and unwavering commitment of local leaders. This comprehensive study, supported by data from annual mayoral speeches and a survey of mayors, offers an unparalleled window into the administrative heartbeat of our cities, towns and villages. As we navigate through the complexities of the year 2024, the report identifies economic development as the foremost priority, underscoring the relentless pursuit of prosperity and growth that defines our cities’ ambitions. Infrastructure, the backbone of any municipal life, stands as the second priority, highlighting the ongoing efforts to fortify the frameworks upon which our daily lives depend. Housing follows closely, addressing the fundamental need for safe and affordable shelter that supports the dreams of our residents. Public safety and health services also feature prominently, reflecting a holistic approach to governance that prioritizes the well-being and security of every individual. These priorities are not mere policy points but are the pillars upon which the structure of our future is being constructed. They represent a promise of progress, a blueprint for action and a testament to the resilience and adaptability of our cities. The State of the Cities report is a narrative encapsulating the challenges our cities, towns and villages face, and the innovative solutions that mayors across the nation employ to usher in an era of unprecedented local renewal. As you delve into the pages of this report, let it be a guide and an inspiration. The journey ahead is filled with potential, and together, we stand on the cusp of transforming our city landscapes into thriving spaces of opportunity and inclusivity for all. Clarence E. Anthony CEO AND EXECUTIVE DIRECTOR National League of Cities 5STATE OF THE CITIES 2024Intro Now in its eleventh iteration, the State of the Cities report offers an in-depth exploration of the complex challenges confronting municipal governments across the United States and the strategic objectives city leaders set to elevate the quality of life for their residents. This comprehensive report synthesizes insights from a broad array of data sources, including annual addresses delivered by mayors from a diverse range of American cities, extensive survey responses from a representative cohort of city mayors nationwide, and the perspectives of the local populations. The report is structured to spotlight the predominant themes that have surfaced from the mayors’ annual addresses. These themes include Economic Development, Infrastructure, Housing, Public Safety and Health. Within each thematic section, the report presents a detailed summary of the key issues highlighted by the mayors, outlines the significant challenges that municipal governments are grappling with, and identifies the strategies that municipal leaders are employing to address these challenges. Additionally, the report integrates data gathered from surveys, enriching the narrative with quotes and statistics that shed light on the mayors’ visions and action plans for their cities. Through this report, readers gain a nuanced understanding of the priorities that are top of mind for city leaders, the obstacles that cities must navigate and the innovative solutions being crafted to foster sustainable development. The State of the Cities report thus stands as a testament to the ongoing efforts of municipal governments to forge a brighter, more prosperous future for all residents. 016NATIONAL LEAGUE OF CITIESTop Mayoral Priorities in 2024 Analysis of annual mayoral State of the City speeches reveals that economic development emerged as the most prominent topic, accounting for 32 percent of the overall speech duration. It was followed by infrastructure, which comprised 24 percent of the discourse, housing with 14 percent, public safety with 10 percent, and public health with 9 percent. Other notable themes include energy/ environment and budget/ management. Subsequent sections will more closely examine the five primary themes and explore their associated subtopics in greater detail. Mayors’ emphasis on economic development in their 2024 State of the City speeches underscores its critical role in municipal governance and strategic planning. Economic development shapes the quality of life for residents, determines the city’s competitive edge and influences its ability to attract investment and talent. Focusing on this area, mayors are not only addressing immediate fiscal stability but are also crafting a vision for sustainable growth. This forward-thinking approach can lead to the creation of jobs, support for local businesses and the development of infrastructure that meets future demands. In essence, economic development is a multifaceted strategy that can drive innovation, enhance livability and ensure long-term prosperity for cities. With infrastructure securing the second top spot (accounting for almost a quarter of the total speech content), the evidence indicates that municipal leaders are attentive to the condition, upkeep and new demand of community infrastructure and utilities, such as water systems, power grids and transportation networks. 7STATE OF THE CITIES 2024This topic emerged as the most prominent issue among mayoral speeches. Figure 1 Economic DevelopmentMost prominent topic 32% Economic Development, Infrastructure and Housing among Top Mayoral Priorities in 2024* MAYORAL PRIORITIES IN 2024 STATE OF THE CITY ADDRESSES * See Appendix C for more information on percentages of each topic covered in mayoral speeches. Power BI DesktopEconomic Development, Infrastructure and Housing Among Top Mayoral Priorities in 2024 MAYORAL PRIORITIES IN 2024 STATE OF THE CITY ADDRESSES Source: Content Analysis of Mayoral Speeches given between January-April 2024.Notes: Size of font is based on percentage which denotes the average portion of State of the City addresses that reference this topic. FIGURE 1 Economic DevelopmentInfrastructure Health Human ServicesHousing Public Safety Energy Environment Budget Management Education Another essential topic that mayors frequently discuss is housing, representing about 14 percent of the speech content and underscoring the critical role of housing in municipal policy and the economy. Affordable housing is fundamental to the well-being of residents, serving as a cornerstone for stable communities. It influences not only the quality of life but also economic vitality, as affordable housing can attract a diverse workforce and reduce the strain on local resources. Addressing housing challenges, 8NATIONAL LEAGUE OF CITIESincluding affordability, homelessness and supply, reflects a commitment to fostering inclusive, sustainable cities for the future. In mayoral addresses, public safety also frequently emerges as a key theme, comprising roughly a tenth of the discourse. The multifaceted nature of public safety is often explored, encompassing topics from crime deterrence to the reform and responsibility of law enforcement, as well as readiness for emergencies, fire safety measures, and cybersecurity threats. A recurrent sentiment in these speeches is the acknowledgment and appreciation directed toward the dedicated individuals who contribute to the safety of their localities. Another topic mentioned in speeches is public health. Public health and human services issues account for about 9 percent of speech content, with mayors emphasizing the importance of providing residents with quality social services, mental health services and recreation opportunities. Many of these issues have been continuously prevalent among mayoral priorities; over the last decade (see Appendix B), infrastructure, economic development, public safety and housing were among the top issues for cities nationwide. ‘We need to focus more on [firefighters’ and EMS workers’] personal health. They put us first in times of need, now we need to do the same.” Mayor Amy Shuler Goodwin, Charleston, WV ‘ 9STATE OF THE CITIES 202401 PROMINENT TOPICS: Economic Development is connected to shaping the quality of life for residents, determining the city’s competitive edge and influencing its ability to attract investment and talent. Infrastructure remains a top priority for cities. The urgency of addressing the aging infrastructure in American cities cannot be overstated. Housing The struggle to provide adequate housing continues to be a formidable obstacle across America’s cities, towns and villages. Public Health & Public Safety The well-being and protection of the community is a crucial issue for local leaders. of mayors use social media platforms to communicate with residents, reflecting the modern trend toward digital engagement. 77% 0210NATIONAL LEAGUE OF CITIESMayoral and Public Priorities Aligned Communication with residents regarding municipal policies is a multifaceted endeavor. Seventy seven percent of mayors utilize social media platforms, reflecting the modern trend toward digital engagement. Sixty-eight percent of mayors make use of town hall meetings, a more traditional approach, followed by press releases and newsletters with 58 percent and 55 percent, respectively. These findings highlight the diverse strategies city leaders employ to foster transparency and civic involvement in the governance process. Social media can be an effective proxy for gauging community interests because it allows for real-time interaction and feedback. Residents often use social media to express concerns, preferences and suggestions, providing local officials with immediate insights into the pulse of the community. Town hall meetings, press releases and newsletters also play significant roles, offering more traditional, in-depth platforms for discussion and information dissemination. However, the immediacy and accessibility of social media make it uniquely suited for understanding and addressing the most pressing issues residents face in their daily lives. 11STATE OF THE CITIES 2024Infrastructure and Energy/Environment Garnered the Most Attention from Citizens in 2023-2024 PERCENTAGE OF PUBLIC ENGAGEMENT IN 2023-2024 BY RESIDENTS Source: Data gathered from the Quorum Local Platform from April 25, 2023, to April 25, 2024.Notes: Public Engagement on X (i.e., platform formerly known as Twitter) measures the ratio of posts issued by local authorities to the number of times these posts were shared by residents within each category. The sample for tweets di ers from one another, ranging from the highest one found for the Housing category, with a total of 1,060 tweets, to the smallest sample of 117 tweets for the Budget category. FIGURE 2 Housing 32% Infrastructure41% Development33% Energy38% Education 35%Public Health& Safety 26% Budget 20% Using data collected from a popular social media platform* over the last year, researchers investigated the areas of policy around which communities engaged the most with their local leaders (in the form of retweets in response to government tweets in various areas). Infrastructure, energy and education garnered the most attention from residents on social media (Figure 2). When combined with mayoral speches the top priorities for mayors and residents alike are infrastructure, economic development and housing. * X (i.e., the platform formerly known as Twitter). Figure 2 02 12NATIONAL LEAGUE OF CITIES0303Economic & Workforce Development Like prior years, economic development continues to be a major topic of discussion for mayors in their State of the City addresses and in response to our survey (see Appendix A for details). Mayors see leading local economic competitiveness and strengthening the financial stability of local communities as critical to their communities’ success. In the dynamic landscape of municipal economic development, mayors play a pivotal role in shaping the future of their cities. Data from this survey reveals a sense of hopefulness among city leaders, with more than 80 percent rating their city’s economic situation as acceptable to excellent. The survey data presents an intriguing dichotomy in the perspectives of city mayors regarding their economic landscapes. On the one hand, there is a sense of guarded confidence, with a majority viewing their cities’ economic situations as either acceptable, good or excellent – a testament to the resilience and potential of municipal economies. On the other hand, the data unveils underlying challenges that persist beneath the surface of this optimism. Thirty-three percent of mayors pinpoint the difficulty in attracting businesses as a primary economic hurdle, highlighting the competitive nature of economic development and the need for cities to differentiate themselves to lure enterprises. Furthermore, 11 percent of mayors underscore the issue of insufficient federal investment, which suggests a gap in support that could hinder growth and stability despite the existing federal funding opportunities available through the American Rescue Plan Act (ARPA) and Bipartisan Infrastructure Law (BIL), among others. Ten percent of responding mayors also consider poverty as a main economic challenge in their communities. This juxtaposition paints a realistic picture: while mayors may acknowledge the strengths of 33% of mayors identified attracting and retaining businesses as their primary economic challenge. Rated their city’s economic situation as acceptable to excellent. 13STATE OF THE CITIES 202480% CITY LEADERS 14NATIONAL LEAGUE OF CITIEStheir cities’ economies, they are acutely aware of the obstacles that could impede progress and the continuous efforts required to overcome them. Mayors consider a wide range of strategies in addressing these economic development challenges. Survey data shows that business attraction and retention, downtown revitalization, and workforce development are strategies mayors most utilize in the face of economic development challenges (Figure 4). In the last year, NLC member cities have demonstrated strong commitment, with over 250 cities participating in the City Inclusive Entrepreneurship Network, the Southern Cities Economic Inclusion initiative as well as Good Jobs Great Cities initiative. This extensive involvement underscores the proactive steps these cities are taking to address economic disparities and foster inclusive growth. Attracting Businesses and Insu cient Federal Investment Among Major Economic Challenges Facing Cities PERCENTAGE OF RESPONSES IDENTIFYING ECONOMIC CHALLENGES FACING CITIES IN 2024 38% 20% 13% 12% 7% 7% 4% Source: State of the Cities 2024 Mayoral Survey. Notes: Percentages are calculated as the proportion of all total responses to the question - respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. Sample size (N): 169 responses. FIGURE 3 Attracting businesses Other Insu cient federal and/ or private investment Poverty Insu cient childcare providers Underemployment/ Unemployment Inequality Figure 3 15STATE OF THE CITIES 2024Economic development is actually the only true objective measure of the success of a community to attract people and businesses.” Mayor Jim Gilvin, Alpharetta, GA ‘‘ Business Attraction, Downtown Revitalization, and Workforce Development Among the Most Utilized Strategies by Mayors to Address Economic Development Challenges STRATEGIES TO ADDRESS ECONOMIC DEVELOPMENT CHALLENGES BY PERCENTAGE OF RESPONSES Source: State of the Cities 2024 Mayoral Survey.Notes: Percentages are calculated as the proportion of all total responses to the question - respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. Sample size (N): 200 responses. FIGURE 4 Business Attraction Downtown revitalization Workforce development Investments in tourism & hospitality Innovation & technology Investments in green & sustainable development 48% 59% 46% 34%29%28% Figure 4 03 16NATIONAL LEAGUE OF CITIES0404Infrastructure Infrastructure continues to remain a top priority for cities. The U.S. economy relies on a vast network of roads and bridges, water systems, freight rail and ports, electrical grids and broadband networks. Many current systems were built decades ago, and many are in need of repair and modernization. The urgency of addressing the aging infrastructure in American cities cannot be overstated, especially as its resilience is put to the test. Extreme weather events, such as hurricanes, floods and heat waves are becoming more frequent and intense, exacerbating the existing vulnerabilities of roads, bridges and public utilities. Flooding and extreme weather events are among the most common natural disasters threatening local infrastructure.1 Additionally, water and sewer systems, roads and bridges are among the types of infrastructure most vulnerable to climate change.2 This current study shows that only one-fifth of mayors consider their cities very (18%) prepared to face natural disasters. NLC’s Local Infrastructure Hub has been working with nearly 2,000 cities to secure funding to address these and other infrastructure issues. This aligns with mayor’s responses to our survey, in which they identify a host of tools and strategies (including increased funding, seeking external support and implementing new technologies) that cities plan to implement over the next five years to attend to major infrastructure assets, including water systems, broadband grids, roads and public transportation. Figure 5 shows various tools and techniques municipal governments implement to adress community needs and demands in various policy areas. Mayors identify increased funding as a foundational component of improving water systems and roads (not shown here). Seeking external support, on the other hand, seems to be the main strategy reported by mayors in addressing broadband and public transportation challenges. Finally, implementing new technologies appears to be the main strategy relied upon in addressing energy infrastructure challenges. 17STATE OF THE CITIES 2024Power BI Desktop Increased Funding and Seeking External Support Among the Methods to Address Community Needs in Various Policy Areas PERCENTAGE OF RE PSONSES IDENTIFYING METHODS TO ADDRESS NEEDS, BY POLICY AREA 0% 20% 40% 60% 80% 100% POLICY AREASPERCENTAGE (%) OF RESPONSESEarly Childhood, K-12 &Postsecondary Education Energy and environment Infrastructure Economic & WorkforceDevelopment Public Health & Safety Budget & Management 56% 44% 32% 17%16%15% 19% 21% 8% 30% 15% 15% 22% 18% 18% 18% 25% 13% 20% 26% 33% 22% 27% 7%18%25%15% Increase funding Implement new technologies Prioritize critical areas Seek external support Other Source: State of the Cities 2024 Mayoral Survey.Notes: Percentages are calculated as the proportion of all total responses to the question - respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. Sample size (N): 201 responses. FIGURE 5Figure 5 0404 of surveyed mayors describe the state of housing in their cities as less than satisfactory. 18NATIONAL LEAGUE OF CITIESHousing Housing instability, homelessness and the lack of a permanent residence rank highly among critical public welfare issues. The struggle to provide adequate housing continues to be a formidable obstacle across America’s cities, towns and villages. Notably, for the first time in a decade, housing is one of the top three priorities for mayors, according to this report. The availability and affordability of housing in urban areas have long been topics of concern, but recent survey data sheds new light on the severity of the issue as perceived by city leaders. Survey data shows that a staggering 60 percent of mayors describe the state of housing in their cities as less than satisfactory, with over 41 percent labeling it as poor and nearly 18 percent as very poor. This is a stark contrast to the mere 14 percent who view their housing situation positively (either good or excellent). The remaining 26 percent consider the availability of housing in their community as merely acceptable. The primary challenges identified by these mayors are twofold: the high cost of housing and a lack of supply. These issues are intertwined, as the limited availability of housing inevitably drives up prices, making affordability a significant hurdle for many residents. The survey indicates that nearly 70 percent of mayors are grappling with these challenges, which are fundamental barriers to ensuring that all residents have access to safe and affordable housing. Despite these unfavorable statistics, there is a silver lining. Mayors are not standing idly by; instead, they are actively seeking solutions to increase the housing supply and resolve housing challenges and issues. Working with multiple national partners, NLC recently released the Housing Supply Accelerator Playbook, which highlights the challenges and opportunities cities encounter as they strive to create housing solutions. 0505 60% 19STATE OF THE CITIES 2024Power BI Desktop High Costs and Lack of Supply Among the Main Housing Challenges for Cities PERCENTAGE OF RESPONSES IDENTIFYING A MAIN HOUSING CHALLENGE FACING CITIES Source: State of the Cities 2024 Mayoral Survey. Notes: Percentages are calculated as the proportion of all total responses to the question - respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. Sample size (N): 163 responses. FIGURE 6 39% 29% 10% 6% 4% 1 % 1% High cost of housing L a c k o f s uppl y Vacant, abandoned and Other Low quality NIMBY or community opposition Homelessness Displacement E v ic t i o n s deteriorated properties3.6% 3% Figure 6 20NATIONAL LEAGUE OF CITIES 05 21STATE OF THE CITIES 2024IOWA CITY, IA, has allocated $700,000 for construction of senior apartments, including 36 affordable units, and a domestic violence shelter. LITTLE ROCK, AR Mayor Frank Scott, Jr. is launching a “Homeless Village” to reduce homelessness, increase supportive housing and establish a vacant property registry. MILWAUKEE, WI, is addressing neighborhood decay through the Raze and Revive Program. The city spent $5 million to demolish 180 derelict houses, according to Mayor Cavalier Johnson in his 2024 address. This proactive stance is crucial, as it addresses the immediate shortage and stabilizes housing costs in the long term. City leaders are taking a comprehensive approach to tackle the housing crisis by focusing on both the supply side and the cost. The survey’s findings highlight a critical juncture for housing policy. With a clear recognition of the issues at hand and a commitment to action from city leaders, there is a path forward. A path that not only relies on what cities can do but also on how public-private partners can work together to address this issue, including support from both state and federal governments.3 The efforts to ramp up the housing supply, as reported by mayors across the country, are a testament to the resilience and dedication of our municipal leaders to overcome the challenges they face. Additionally, looking at the ways mayors are addressing these housing challenges, the intersection between housing supply and public health and safety is clear, making it unsurprising that these issues are the next highest priority areas in mayoral speeches. 0622NATIONAL LEAGUE OF CITIESPublic Health & Safety Public Safety and Health were the fourth and fifth top priorities, respectively, in mayoral speeches. The well-being and protection of the community is a crucial issue for local leaders throughout the United States. The challenge of maintaining safety in American cities is complex, requiring the collaboration of multiple stakeholders and requiring the leadership of local leaders. In response to these concerns, the National League of Cities’ recent report on Lessons Learned through Collaborative Community Safety Initiatives aims to facilitate discussions among municipal leaders and help them formulate strategies to forge a renewed approach to safety in communities. In the landscape of public safety and health, mayors across the nation are prioritizing the diversification and strengthening of their workforce. Thirty-seven percent of mayors have identified the retention and recruitment of a diverse public 23STATE OF THE CITIES 2024Public Safety Mayors continue to sound the alarm on the challenges of substance use, mental health and suicide. The well-being and protection of the community is a crucial issue for local leaders. Public Health 24NATIONAL LEAGUE OF CITIEShealth and safety workforce as their top priority for 2024.4 This reflects a growing recognition of the challenges of recruitment for public safety positions and the importance of inclusivity and representation in these critical sectors. Additionally, 20 percent are focusing on the creation or expansion of civilian-led crisis response teams, indicating a shift toward more specialized and community-oriented approaches to public safety. The development of community violence intervention plans is also on the agenda for 15 percent of mayors, showcasing a proactive stance on reducing violence through strategic planning and community engagement. Power BI Desktop Substance Use, Mental Health, and Cybersecurity Among the Most Concerning Public Health/Safety Issues for American Mayors PERCENTAGE OF RESPONSES BY LEVEL OF CONCERN FOR PUBLIC HEALTH AND SAFETY 0% 20% 40% 60% 80% 100% PUBLIC HEALTH AND SAFETY CHALLENGESPERCENTAGE (%) OF RESPONSESClearance rates Cybersecurity Emergency preparedness(inclusive ofnaturaldisasters) Property crime Substance misuse / Mentalhealth Suicide Tra c accidents Violence 5% 17%9%8% 23% 11%7%7% 1 0% 35% 24%21 % 44% 24% 18%20% 30% 23% 32%36% 12% 23% 27% 32% 26% 18% 23%26% 17% 28%35% 33% 30% 6%12%9%3% 13%14%8% Extremely Very Moderately Slightly Not at all Source: State of the Cities 2024 Mayoral Survey.Notes: Percentages are calculated as the proportion of all total responses to the question. Sample size (N): 200 responses. FIGURE 7 Figure 7 25STATE OF THE CITIES 2024Meanwhile, police accountability remains a pressing issue, with nearly 14 percent of mayors choosing it as a priority, highlighting the ongoing need for transparency and trust between law enforcement and the communities they serve. On the public health front, mayors are continuing to sound the alarm on the challenges of substance use, mental health and suicide. These concerns underscore the multifaceted nature of public health and safety, where cities are increasingly investing in co-responder models to address the emergency response needs of their community. With an increasing number of local governments experiencing cyber-attacks in the last year, many mayors also highlighted the challenges around addressing cybersecurity in their operations. As mayors navigate these complex issues, their choices reflect a commitment to addressing both the immediate and long-term needs of their constituents, ensuring a safer and healthier future for all. 06 26NATIONAL LEAGUE OF CITIESDespite these challenges, city leaders are actively seeking solutions to improve the safety and health of their communities. FAYETTEVILLE, AR, has secured a $400,000 Department of Justice grant to enhance their Crisis Intervention Response Team, aiming to assist more individuals during mental health emergencies. LUBBOCK, TX, has allocated $3.5 million from ARPA funds to establish the Hope Center, a mental health facility aiding law enforcement and EMS. BOULDER CITY, NV, is developing The Healing Center to provide specialized treatment for trauma victims. FOLSOM, CA, is rebranding its Community Crime Suppression Unit to the Problem-Oriented Policing team, focusing on broader community issues such as homelessness and local business thefts while also improving communication between the police and community through an expanded public information team. of mayors have identified the retention and recruitment of a diverse public health and safety workforce as their top priority for 2024. 37% 06 27STATE OF THE CITIES 2024Conclusion The 2024 State of the Cities report offers a comprehensive overview of the pressing issues confronting cities, towns and villages across the United States, along with their strategies and blueprints for what lies ahead. It synthesizes an array of data sources, notably expanding beyond the annual addresses delivered by mayors from municipalities of varying scales and locales to include a survey of these mayors and assessment of the concerns of their residents based on social media engagement. The findings of this year’s report highlight shared objectives and concerns among municipal leaders, as well as the distinct approaches and innovations they employ to tackle these issues. Economic development is a critical aspect of leading local economic competitiveness and strengthening the financial stability of local communities, and mayors play a pivotal role in shaping the future of our cities. While there is a sense of cautious optimism among city leaders regarding their cities’ economic situations, there are underlying challenges that persist beneath the surface of this optimism. Attracting businesses and insufficient federal investment are significant hurdles that mayors face in their efforts to promote economic development. Infrastructure is another critical area of concern for cities, with the need to address aging infrastructure and the resilience of systems to natural disasters being top priorities. Mayors are actively seeking solutions to increase the housing supply and overcome housing challenges, recognizing the importance of addressing the availability and affordability of housing in urban areas. Municipal governments are increasingly prioritizing the well-being and protection of their residents. City leaders are acutely aware of the necessity to confront challenges including the increasing rates of substance use disorder, increasing community-wide mental health needs and the security of digital infrastructure, alongside a spectrum of other public health and safety matters. Support delivered through ARPA has been a lifeline for municipal governments, enabling them to stabilize budgets and invest in essential services during challenging times. While not all municipalities have applied for and received these funds, the success stories highlight the need for continued federal support and more streamlined guidance to ensure all local governments can access and utilize federal funds and resources effectively in the future.5 The State of the Cities report highlights mayors’ efforts to tackle crucial issues facing their communities. It underscores their commitment to enhancing residents’ quality of life through equity, inclusion and sustainability. Demonstrating resilience and optimism, mayors are dedicated to improving their communities and are keen to collaborate with federal agencies to achieve common objectives. 28NATIONAL LEAGUE OF CITIESAppendices Appendix A: Methodology For this report, the National League of Cities (NLC) utilized three different methodologies: a content analysis of mayors’ State of the City Address speeches, a survey of mayors and a quantitative analysis of public engagement with the mayors’ priorities. For these different methods, we gathered and analyzed data from three different sources. a. Mayoral Speeches We conducted a content analysis of 50 State of the Cities (SOTC) addresses delivered by mayors between January 1 and April 1, 2024. Mayoral speeches were collected from municipal governments’ official websites. At the time of this analysis, these 50 SOTC speeches were the only ones the researchers could locate online and then code. To analyze each SOTC address delivered, we considered only the forward-looking and actionable plans mayors expressed in their speeches. We then categorized each of these plans into one the following priority categories: Budget and Management, Economic Development, Infrastructure, Housing, Public Safety, Education, Data and Technology, Health and Human Services, and Energy and Environment. For each category, we counted the words expressed in the speeches. Lastly, we calculated the ratio of the number of words counted for each category to the total number of words counted for each speech. b. Survey of Mayors NLC fielded a survey to a sample of mayors from cities of various sizes across the country (all members of the NLC) to identify their main priorities for 2024. The survey was sent to 2,230 mayors and was open for responses from March 28, 2024, to April 26, 2024. In total, 202 mayors completed the survey and, therefore, were included in our analysis. The analytic sample varies by question as we use all available responses as the denominator for each question. Survey respondents were asked to assess different topics in the following categories: Budget and Management; Economic and Workforce Development; Infrastructure; Housing; Public Health and Safety; Early Childhood, K-12, and Postsecondary Education; and Energy and Environment (contact authors for the instrument). The distribution of the responding cities’ populations is mostly balanced among the different population size categories. A greater percentage of 29STATE OF THE CITIES 2024respondents are from cities with less than 10,000 residents and cities with population sizes between 10,000 and 49,999, while cities with more than 30,000 residents make up the lower percentage of survey respondents. This aligns with the distribution of cities across the country by population size. As for regional distribution, we observed a low rate of response from the Northeast census region and relatively well-balanced responses from the other regions. Population % Responses <10,000 48.5 10,000-49,999 32.2 50,000-99,999 7.4 100,000-299,999 10.4 300,000+1.5 Source: State of the Cities 2024 Mayoral Survey and Census Bureau for population sizes of Cities, Towns, and Villages. Region % Responses South 47.5 West 34.0 Midwest 16.0 Northeast 2.5 Source: State of the Cities 2024 Mayoral Survey. and Census Bureau for the distribution of Cities, Towns, and Villages. c. Public Engagement To understand residents’ sentiments regarding governments’ priorities, we analyzed social media engagement. To conduct this analysis, we gathered data from Quorum Local Platform. Our analysis was based on the most frequent hashtags used on X (i.e., the platform formerly known as Twitter) from April 25, 2023 to April 25, 2024, for the same main categories as the ones used in the survey: Budget and Management; Economic and Workforce Development; Infrastructure; Housing; Public Health and Safety; Early Childhood, K-12, and Postsecondary Education; and Energy and Environment.6, 7 Public Engagement on X (i.e., platform formerly known as Twitter) measures the ratio of posts issued by local authorities to the number of times these posts were shared by residents within each category. The sample for tweets differs from one another, ranging from the highest one found for the Housing category, with a total of 1,060 tweets, to the smallest sample of 117 tweets for the Budget category. Please contact the authors for more detail.8 30NATIONAL LEAGUE OF CITIESAppendix B: Mayors’ Priorities Over the Last Decade Power BI Desktop Rankings of Mayoral Priorities 2014-2024 2 4 6 8 10 YEARRANKING PLACE2014 2016 2018 2020 2022 2024 Source: NLC State of the Cities reports 2014-2024. APPENDIX FIGURE 1 Economic Development Infrastructure Housing Health & Human Services Public Safety Energy & Environment Budgets & Management Education Demographics Appendix Figure 1 Rankings of Priorities 2014–2024 31STATE OF THE CITIES 2024Appendix C: Figure Tables Table 1 Economic Development, Infrastructure and Housing Among Top Mayoral Priorities in 2024 Priority Category % Responses Economic Development 31.7 Infrastructure 23.5 Housing 14.3 Public Safety 9.5 Health-Human Services 9.4 Energy-Environment 5.5 Budget-Management 3.8 Education 1.5 Data-Technology 0.7 Source: Content Analysis of 50 Mayoral Speeches Given between January-April 2024. Figure Note: Percentages denote the average portion of State of the City addresses dedicated to each topic. Table 2 Infrastructure and Energy/Environment Garnered the Most Attention from Residents’ Public Engagement in 2023-2024 Priority Category % Responses Infrastructure 40.8 Energy and Environment 38.1 Education 34.5 Economic Development and Workforce 32.6 Housing 32.3 Public Health and Safety 25.9 Budget and Management 19.7 Source: Data gathered from Quroum Local 2023-24. Figure Note: Public Engagement on X (i.e., platform formerly known as Twitter). For more details refer to Appendix A. 32NATIONAL LEAGUE OF CITIESTable 3 Attracting Businesses and Insufficient Federal Investment Among Major Economic Challenges Facing Cities % Responses Underemployment/Unemployment 5.5 Attracting businesses 32.5 Insufficient childcare providers 6.0 Poverty 10.0 Inequality 3.0 Insufficient federal and/or private investment 11.0 Other 16.5 Source: State of the Cities 2024 Mayoral Survey. Sample Size (N): 169 responses. Figure Notes: Percentages are calculated as the proportion of all total responses to the question; respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. Table 4 Business Attraction, Downtown Revitalization, and Workforce Development Among the Most Utilized Strategies by Mayors to Address Economic Development Challenges % Responses Innovation and technology (entrepreneurship services and/or incubator programs)29.0 Workforce development (skills training/wrap-around supports for workers)46.0 Business attraction and retention 59.0 Investments in tourism and hospitality 33.5 Increased green and sustainable development (bike lanes, parks, green spaces, etc.)28.5 Downtown revitalization (arts investments, sports investments, Business Improvement Districts, etc.)47.5 Other 5.5 Source: State of the Cities 2024 Mayoral Survey. Sample Size (N): 200 responses.Figure Notes: Percentages are calculated as the proportion of all total responses to the question; respondents were able to select multiple options so the total of the count column is greater than the total number of respondents. 33STATE OF THE CITIES 2024Table 5: Increased Funding and Seeking External Support Among the Methods to Address Community Needs in Various Policy Areas % Responses Increase funding Seek external support Implement new technologies Prioritize critical areas Other Water 32.4 19.9 18.8 22.2 6.8 Energy 14.6 22.4 30.3 18.2 14.6 Broadband 16.6 25.8 21.5 18.4 17.8 Roads 56.4 24.6 2.2 15.1 1.7 Public Transportation 15.8 33.3 8.2 17.5 25.2 Other 43.8 12.5 2.1 14.6 27.1 Source: State of the Cities 2024 Mayoral Survey. Sample Size (N): 201 responses.Figure Note: Percentages are calculated as the proportion of all total responses to the question. . Table 6 High Costs and Lack of Supply among the Main Housing Challenges for Cities % Responses Lack of supply 29.5 High cost of housing 39.3 Low quality 4.3 Evictions 0.6 Homelessness 2.5 Displacement 0.6 Vacant, Abandoned and Deteriorated Properties 10.4 NIMBY or Community Opposition 3.7 Other 9.2 Source: State of the Cities 2024 Mayoral Survey. Sample Size (N): 163 responses. Figure Note: Percentages are calculated as the proportion of all total responses to the question. 34NATIONAL LEAGUE OF CITIESTable 7 Substance Misuse, Mental Health and Cybersecurity Among the Most Concerning Public Health/Safety Issues for American Mayors % Responses Not at all concerned Slightly concerned Moderately concerned Very Concerned Extremely concerned Violence 8.0 33.0 32.0 20.0 7.0 Property crime 9.2 25.5 35.7 21.4 8.2 Clearance rates 29.6 26.1 29.6 10.2 4.6 Traffic accidents 13.9 34.7 26.7 17.8 6.9 Emergency preparedness (inclusive of natural disasters)12.0 23.0 32.0 24.0 9.0 Substance misuse/Mental health 3.1 17.4 12.2 43.9 23.5 Suicide 13.1 28.3 23.2 24.2 11.1 Cybersecurity 6.1 18.2 23.2 35.4 17.2 Other 14.3 0.0 0.0 14.3 71.4 Source: State of the Cities 2024 Mayoral Survey.Sample Size (N): 200 responses. Figure Note: Percentages are calculated as the proportion of all total responses to the question. 35STATE OF THE CITIES 20241 National League of Cities (2023). Municipal Infrastructure Conditions in 2023. National League of Cities. https://www.nlc.org/resource/municipal-infrastructure-conditions- in-2023/ 2 National League of Cities. Municipal Infrastructure Conditions in 2023. 3 National League of Cities and American Planning Association (2024). The Housing Supply Accelerator Playbook: Solutions, Systems, Partnerships. National League of Cities. https:// www.nlc.org/resource/housing-supply-accelerator-playbook/ 4 The National League of Cities is urging Congress and the Biden administration to offer multifaceted support aimed at bolstering diversity and mental health services within public safety sectors. This includes assistance in technology, finance and recruitment, alongside initiating a nationwide marketing campaign to draw a greater number of women and minorities. Furthermore, NLC is advocating for a boost in the COPS hiring grants, the implementation of the HELPER Act for improved mortgage conditions for first responders and the allocation of these funds towards the employment of co-responders and crisis intervention units. 5 Omeyr, F., Bauer, J., & Montes Diaz, I. (2024). How ARPA Funds Helped Stabilize Budgets & Investment in Municipal Services. National League of Cities. https://www.nlc.org/ article/2024/03/05/how-arpa-funds-helped-stabilize-budgets-investing-in-municipal- services/ 6 Please note that the criteria for choosing the specific hashtags was that the number of appearances be significant (>10), and the description/wording of the hashtag make sense with the category analyzed. 7 For each category, we focus only on specific hashtags to be more accurate in the topic. For each category, the hashtags utilized were the following: Infrastructure: #infrastructure, #transportacion, #infrastructureworks Budget and Management: #budget Economic Development and Workforce: #economicdevelopment, #hiring, #workforce, #workforcedevelopment Housing: #Housing, #Affordablehousing, #homelessness, #homeless Education: #earlychildhood, #childcare, #k12, #education Energy and Environment: #energy, #cleanenergy, #energyefficiency, #sustainability, #environment Public Safety: #publicsafety Health-Human Services: #publichealth 8 To clarify, the database does not allow for a count of how many times a post was reshared by platform users. Our assumption for the quantitative calculation is that each post was shared only once. Endnotes 36NATIONAL LEAGUE OF CITIES Not an NLC member? Join today. NLC is the leading resource for local leaders, advocating relentlessly for America’s cities, towns, and villages and delivering best practices to build thriving communities. Join at www.nlc.org/membership. Attachments:Press Release: Listening Post announced for August 17 at the Farmer's Market Item Number: IP9. August 1, 2024 Press Release: Listening Post announced for August 17 at the Farmer's Market Attachments:Civil Service Examination: Community Service Officer - Support Services Assistant Item Number: IP10. August 1, 2024 Civil Service Examination: Community Service Officer - Support Services Assistant