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HomeMy WebLinkAbout2024-08-20 ResolutionItem Number: 5.a. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Resolution accepting the work for the 2023 Summer Sidewalk Repair Project. Prepared By: Toni Davis - Program Assistant Reviewed By: Jason Havel - City Engineer Ron Knoche - Public Works Director Kirk Lehmann - Assistant City Manager Fiscal Impact: None Staff Recommendation: Approval Attachments: Engineer's Report Resolution Executive Summary: The project has been completed by Venture Concrete of Cedar Rapids, Iowa, in substantial accordance with the plans and specifications developed by the City of Iowa City. The Engineer's Report and Performance and Payment bonds are on file with the City Engineer. Project Estimated Cost: $ 83,000.00 Project Bid Received: $ 68,902.75 Project Actual Cost: $ 84,314.89 Background / Analysis: This annual project included the removal and replacement of deficient sidewalk squares as part of the City's Sidewalk Inspection Program. ENGINEER'S REPORT August 13, 2024 City Clerk Iowa City, Iowa RE: 2023 Sidewalk Repair Project Dear City Clerk: CITY F 10VVA CITY ( 19) 356 5000 (31 :5 -$009 FAX I hereby certify that the 2023 Sidewalk Repair Project has been completed by Venture Concrete, of Cedar Rapids, Iowa, in substantial accordance with the plans and specifications prepared by the City of Iowa City Engineering Division. The project was bid as a unit price contract and the final contract price is $84,314,89. There were no change or extra work orders for the project. I recommend that the above -referenced improvements be accepted by the City of Iowa City. Sincerely, Jason Havel, P.E. City Engineer 0,6L-- Prepared by: Toni Davis, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5139 Resolution No. 24-214 Resolution accepting the work for the 2023 Summer Sidewalk Repair Project Whereas, the Engineering Division has recommended that the work for construction of the 2023 Summer Sidewalk Repair Project, as included in a contract between the City of Iowa City and Venture Concrete of Cedar Rapids, Iowa, dated July 28, 2023, be accepted; and Whereas, the Engineer's Report and the performance and payment bond have been filed in the City Engineer's office; and Whereas, funds for this project are available in account # 22710220; and Whereas, the final contract price is $84,314.89 Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said improvements are hereby accepted by the City of Iowa City, Iowa. Passed and approved this loth day of August , 2024 MayorPiro Tem Attest: —1), ks. E—Lc City berk It was moved, by Alter and seconded by adopted, and upon roll call there were: Ayes: Nays: Approved by Z - City Attorne s Office (Liz Craig - 08/15/2024) Moe the Resolution be Absent: Alter Bergus Dunn Harmsen Moe Salih Teague Item Number: 5.b. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the City Hall Roof Replacement Project. Prepared By: Ben Clark - Sr. Engineer Reviewed By: Jason Havel - City Engineer Ron Knoche - Public Works Director Juli Seydell Johnson - Parks and Recreation Director Kirk Lehmann - Assistant City Manager Fiscal Impact: $384,604 available in the City Hall Improvements account #R4129 Staff Recommendation: Approval Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the City Hall Roof Replacement Project. Five (5) bids were submitted prior to the August 13th, 2024 deadline: Company Base Bid Bid Alt 1 Bid Alt 2 Black Hawk Roofing $330,857 $27,797 $25,950 Company For Sure Roofing& $378,111 $23,836 $25,105 Sheet Metal Knutson Construction $530,000 $66,000 $66,000 City Construction $535,200 $54,000 $54,000 Company Cedar Service $641,782 $59,197 $56,457 Company Engineer's Estimate 1$545,000 $58,100 1$35,000 Staff recommends awarding the Base Bid plus Bid Alternates 1 and 2, for a contract total of $384,604, for the City Hall Roof Replacement Project to Black Hawk Roofing Company of Waterloo, Iowa. Background / Analysis: The roofing systems at City Hall have reached the end of their useful lifespan and need replacement. This project includes replacing five areas of existing roof with a 90-mil EPDM roof membrane system. The areas to be replaced generally include police, fire, lobby and council chamber roofs. The project also includes masonry repairs and Exterior Insulation Finishing System repairs. Alternate bids include coating the east wing and north court addition roofs to extend their lifespan until budget allows for a complete replacement. 6,�) Prepared by: Ben Clark, Engineering Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5436 Resolution No. 24-215 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the City Hall Roof Replacement Project Whereas, Black Hawk Roofing Company of Waterloo, Iowa has submitted the lowest responsive, responsible bid of $384,604 for construction of the above -named project; and Whereas, funds for this project are available in the City Hall Improvements account #R4129. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The contract for the construction of the above -named project is hereby awarded to Blackhawk Roofing Company of Waterloo, Iowa, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above -named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and 'contract compliance program statements. 3. The City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above -named project. Passed and approved this loth day of August , 20 24 Attest: , City berk iL=, Mayor tro Tem Approved by/ G ' City Attorn s Office (Liz Craig - 08/15/2024) It was moved by Alter and seconded by Moe the Resolution be adopted, and upon roll call there were: Ayes: x Nays: Absent: Alter Bergus Dunn Harmsen Moe Salih Teague Item Number: 5.c. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Resolution authorizing the City Manager to sign a one-year extension of the listing agreement with Lepic-Kroeger Realtors for the Iowa City Industrial Campus. Prepared By: Susan Dulek, First Ass't. City Attorney Reviewed By: Kirk Lehmann, Assistant City Manager Fiscal Impact: None Staff Recommendation: Approval Commission Recommendations: N/A Attachments: Resolution Amended Listing Agreement Executive Summary: The Iowa City Industrial Campus is a shovel -ready industrial use site on 420th Street, and the City Council in 2015 approved a one-year listing agreement with Lepic-Kroeger, Realtors to sell lots. City Council has by resolution extended the term of the listing agreement by one year each year thereafter. The City has sold two lots, and additional lots remain available for sale. This resolution extends the term for another year to July 15, 2025. Prepared by: Susan Culek, First Asst City Attorney, 410 E. Washington Street, Iowa City, IA 52240 (319) 356-5030 Resolution No. 24-216 Resolution authorizing the City Manager to sign a one-year extension of the listing agreement with Lepic-Kroeger Realtors for the Iowa City Industrial Campus. Whereas, the Iowa City Industrial Campus is a 173-acre shovel -ready industrial use site located on 420tn Street; and Whereas, in Resolution No. 15-229, the City Council approved a one-year listing agreement with Lepic-Kroeger, Realtors to sell lots at the Iowa City Industrial Campus; and Whereas, City Council has by resolution extended the term of the listing agreement by one year each year thereafter with the most recent being Resolution No. 23-209 that extended the term until July 15, 2024; and Whereas, the City has sold two lots in Iowa City Industrial Campus and additional lots remain available for sale; and Whereas, it is in the best interest of the City to extend the term again by one year to July 15, 2025. Now, therefore, be it resolved by the City Council of Iowa City, Iowa, that The City Manager is authorized to sign the attached amendment to the Commercial Listing Agreement to extend the term to July 15, 2025. Passed pnd approved this 20th day of August, 2024. Attest: LGr✓ ACItylark Approved by City Atto y s Office (Sue Dulek - 08/07/2024) Resolution No. 24-216 Page 2 It was moved by Alter and seconded by Resolution be adopted, and upon roll call there were: I W-3 x NAYS: Moe the Alter Bergus Dunn Harmsen Moe Salih Teague an1h Iowa City Area Association of REALTORS@ - Listing Status Change/Correction Form Property Address 4748 420th St, Iowa City Industrial ?ark, Iowa City MLS # See rxhibit A Listing mcelm ListmgAgentl_ffEdbergrcarmenKmeger Price See ExhlbftA CONTINGENCY (AC) (Active Status) (Accepted Offer Subject to Contingencies) Contingent Data (Purchase Agreement Date) SOLD STATUS (Closing Taken Place) Selling Office Selling Agent Buyer's Last Name Sale Price Transaction Value (if Sale, Selling Price. If Lease, Total value.) Lease Value (Per Foot or Per Month) Lease Term Sales Terms: (Select One) Qp Cash ® Conventional fn Lease Eg Exchange Q Other 5 PHA ® VA Cf Private Party Contract Pending Date Closing Date ® ENTERED BY AGENT PENDING (Status) (Days on Market Calculated from List Dam to Pending Date) Pending Date WITHDRAWAL/CANCELLATION —0_ Listing is withdrawn RBALTOR® & Seller Signatures Required Below _E3_ Listing is Cancelled oestgaated REALTORS & Seiler Signatures Required Below EXTENSION Listing Expires This Date 0711512024 Extend Expiration Date to 0711512025 REALTORQ] & Seller Signatures Required Below BACK ON THE MARKET (Not to Be Used to Activam an Expired Listing) Listing is Back on Market Listing Expiration Date PRICE CHANGE Change Price to REALTOR0 & Seller Signatures Required Below Use this wea below to make chmmgcs to the text of a listing. If changes are etdemive, use Signatures of Sellers' Signal r. sheet to indicate changes. i 7I �1 REALTORO's Signs e ' a L �� vn n c emn at a engiasl liatiag, oraW' extemtoa tber�$ or is sold within w1THDRAWAL • II is also sae p then this withdmwai agmement stall be alatolutelY void days after dre argisIn o1 a listing as 5 ail ax of. as DmVided is Said anlag, end said origmaE asriug or cxtea+io lhemof shall be in tv ofu ellest.'Ltas is aaittdraaal5om the 9arria:, NOT s anaeaatiaa Of Me tistiog'Rvsd V09 7 4748 42ir St, Imes CRY Lot MLS #. 202304206 Price: $639,216.00 Lot S MLS #: aa2304207 Priers; $585,010A0 Lot 6 MLS #: 202304209 Price: $632,749.00 Lot 7 MLS #; 202304213 Price: $6ii2,248.00 Lepic-Kroeger Realtors Commercial Listing Contract Dated: 7 15 / 15 THIS EXCLUSIVE LISTING AGREEMENT ("Agreement") is made this 15th day of July. 2015 at Iowa City, Iowa, between Lepic- Kroeger, Realtors. ("Broker") and the following person or entity ("Owner"): Owner's Name: The City of Iowa Ctt IN CONSIDERATION OF THE MUTUAL PROMISES IN THIS AGREEMENT, OWNER AGREES TO: (1) Grant Broker the sole and exclusive right to find a purchaser for the real estate described below (the "Property") for a period commencing on July 16. 2015 and ending on July 15. 2016 (the "Terre"), with 11:59 p.m, of the last day of the Term known as the "Expiration Time". In the event the Seller has accepted an offer to purchase this Property, whether subject to conditions or not, prior to the expiration of this listing Agreement, and the closing will occur after the expiration of this Agreement, the Broker is hereby authorized to sign and submit to the Multipie Listing Service documentation extending the listing to expire one day after the closing date. Such documentation shall be exclusively for the purpose of allowing the sale to be counted in the MILS statistical records. In the event that the contract fails to close on the date specified in the purchase agreement, the Seller may cancel the listing at any time after the original expiration date stated above. (2) Authorize Broker to place an appropriate sign on the Property and to immediately refer to Broker all inquiries regarding the Property. (3) Give possession of the Property on. closing. Legal Description or Local Address of the Property: Iowa City Industrial Park, 420`h Street, Iowa City, Iowa Consisting of approximately 173 acres.. IF THIS AGREEMENT IS FOR THE SALE OF THE PROPERTY, OWNER FURTHER AGREES TO: (1) Offer to sell the Property for the sum of See hibit A which is attached and Incorporated herein for detailed dcin , subject to these Ex terms/conditions: Cash (2) Furnish an Abstract of Title continued to date of sale showing that Owner has good and merchantable title to the Property, subject to existing restriction(s), and to furnish at the closing of the sale (the "Closing") a General Warranty Deed conveying good title to the Property, as well as such other documents as may be legally required. (3) Pay to Broker at Closing a commission of B°o of the sales price. Broker shall split the 6% commission on a 50%150% basis with other brokers. However, this commission shall be deemed earned by Broker and payable by Owner if: (1) Broker procures a purchaser who is ready. willing and able to purchase the Property on the terms set forth in this Agreement (or other terms acceptable to Owner), whether or not there is a Closing andlor (2) the Property is otherwise sold during the Term. IN CONSIDERATION OF THE MUTUAL PROMISES IN THIS AGREEMENT, BROKER AGREES TO: (1) USE ITS BEST EFFORTS TO PROCURE A PURCHASER FOR THE PROPERTY PURSUANT TO THE TERMS OF THIS AGREEMENT, (2) FURNiSH ANY ADDITIONAL INFORMATION ABOUT THE PROPERTY REQUESTED BY OTHER REALTORS AND (3) PROMPTLY SUBMIT THIS LISTING TO THE IOWA CITY AREA MULTIPLE LISTING SERVICE. IN CONSIDERATION OF THE MUTUAL PROMISES IN THIS AGREEMENT, THE PARTIES FURTHER AGREE: Conveyance of the Property by other means, (i.e., a like -kind exchange), shall be considered a "sale" within the meaning of this Agreement. All funds involved in the completion of a sale transaction for the Property (such as earnest money, option fees, etc), shall be paid to Broker and held in Broker's trust account until Closing of the sale. Owner has furnished to Broker all relevant information concerning the Property, including specifically all information regarding any underground storage tanks, hazardous wastes or wells situated on the Property. Owner agrees to make any and all records and documents pertaining to the property available to the Broker, and agrees to allow Broker to show the property at reasonable times and upon reasonable notice, and to commit no act which might tend to obstruct the Brokers performance hereunder. Owner warrants and represents that the information provided is true, correct and complete to the best of Owner`s knowledge. Owner agrees to Indemnify and hold Broker harmless from any and all loss, damage or expense (including allorney's fees) in connection with any breach of this representation and warranty by Owner. Broker shall be protected For a period of 6 months after the Expiration Time on all prospects introduced to the Property during the Term by Owner or Broker. This Agreement shall be binding upon the heirs, successors and assigns of the Owner. Nothing in this Agreement shall be construed to make Broker the manager of the Property. Owner is the manager of the Property and has all responsibility for collection of income and payment of expenses associated with the Property. In the event of suit to collect commissions due Broker under this Agreement, Owner agrees to pay Broker's attorney's fees. RELEASE OF INFORMATION: Owner authorizes third parties (banks, lenders, lawyers, abstracting companies) to release any information to Broker pertaining to the above indicated property. This may include loan balance, payoff, interest paid, repayment terms, title condition, vesting, and other financial or title concerns. THIS IS A LEGALLY BINDING AGREEMENT. IF NOT UNDERSTOOD SEEK LEGAL ADVICE BEFORE SIGNING. THE POSSIBILITY OF DUAL AGENCY IS PART OF THIS AGREEMENT. The undersigned Owner warrants that he is the owner of record of the property or has the authority to execute this agreement. Lepic Kroeger Realtors Commercial Listing Contract Page 1 EXCHANGE: Should other property be accepted by me in exchange. I hereby consent to you representing and accepting compensation form all parties to the transaction. MARKETING: In order to show the property, Broker and its agents shall have access to it at all reasonable times, and Owner will give Broker all possible assistance in marketing the property. Broker is authorized to place a "For Sale" sign on the property. Broker is authorized to and directed to submit this listing to the Multiple Listing Service of the Iowa City Area Association of REALTORSQ), to be published and disseminated to its participants and to report to the Multiple Listing Service and its members, both before and after the sale, any information concerning price and terms of sale, encumbrances and financing as they may request. Broker is authorized to list the property on the Internet. EXCLUSIVE RIGHT TO SELL: This listing shall be designated as an Exclusive Right to Sell listing. Owner authorizes the listing broker as the exclusive entity to sell the properly but further authorize the listing broker to cooperate with other brokers, including Buyer's brokers, in the sale of this listed property and to compensate such broker out of the commission provided for herein. NON-DISCRIMINATION: This property is offered without regard to race. color, sex, sexual orientation, creed. religion, national origin, disability. gender identity and familial status. Owner and Broker further recognize. authorize and directs that the property be marketed in full compliance with all applicable federal, state and local statutes, regulations and ordinances relating to fair housing EARNEST MONEY: It is further understood that out of any forfeited earnest money, 100% shall go to the Owner. REPRESENTATION: Owner will furnish to Broker the information concerning this property via this listing contract and represent to the best of its knowledge and belief that such information is true and accurate. Owner further agrees to inform Broker of any changes of this information during this contract period_ If it is established that such information and/or representation is incorrect or untrue. Owner agrees to indemnify and hold Broker harmless from any and all loss, damage or expense in connection therewith, including court costs and reasonable attormy's fees. GENDER AND NUMBER: Words and phrases herein shall be construed as in the singular or plural number, as masculine, feminine or neuter gender, as may be indicated by the context hereof. CLOSING NUMBERSIABSTRACT CONTINUATIONIESCROW FEE: Ovmer will provide all needed closing numbers to Buyer, Buyer's [ender, and Buyer's attorney. Owner will arrange for the abstract to be continued and delivered to Buyer's attorney. Owner will not pay for any closing -related service procured by Broker. The Owner will not agree to pay the $200.00 escrow fee to Mormon Trek Escrow LLC. Susan M. Mims, Mayor Pro tem ,OWner�` Signature or Authorized ificer Lepicogtrr, Rebltor�, Jeff i=dWrq, CCIM, SIOR Lepic ICroeger Realtors Commercial Listing Contract Page 2 1' EXHIBIT PMMMRY IRA cii`YINDum AARWL cAANTvs IOWA C[TY, IOHNSON COUNW. IOWA e _ s�G ►� I Rail Sites $1.81/sq. ft. Non -Rail Sites $1.46/sq. ft. Item Number: 5.d. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Resolution authorizing the City Manager to sign a memorandum of understanding with the Housing Trust Fund of Johnson County for the contribution and use of $500,000 for affordable housing. Prepared By: Tracy Hightshoe, Neighborhood and Development Service Director Reviewed By: Kirk Lehmann, Assistant City Manager Fiscal Impact: City budgeted $500,000 for the HTFJC through the FY25 Affordable Housing Fund. Staff Recommendation: Approval Commission Recommendations: N/A Attachments: Resolution Memorandum of Understanding Exhibit A - Affordable Housing Heat Map Executive Summary: City Council will consider adoption of a resolution to authorize the City Manager to enter into a Memorandum of Understanding (MOU) with the Housing Trust Fund of Johnson County (HTFJC) for $500,000 for affordable housing at their August 20, 2024 meeting. Background / Analysis: At the April 2, 2024 City Council work session, the City Council approved the distribution of funds for the Affordable Housing Fund. Under the approved distribution plan, $500,000 of the funds available will go to the HTFJC for affordable housing projects in Iowa City. Upon execution of the Memorandum of Understanding (MOU), the HTFJC will be issued payment of $500,000. The HTFJC is not part of the Aid to Agency annual funding cycle. To provide for administration expenses, the HTFJC can take an administrative fee of up to $40,000, 8% of the funds allocated to them through this MOU. Administrative funds are used for salary and benefit expense to administer the fund, which includes quarterly application rounds, review and allocation of funds to eligible projects, and project monitoring. Each year, more projects are approved and units placed under an affordability period that is monitored by the HTFJC. Some of these projects can have affordability periods of 30 or more years. Under this MOU, affordable housing is defined as housing, either owner -occupied or rental, that serves households under 80% of area median income (AMI). In general, the HTFJC prioritizes rental projects that assist households under 60% AMI; however, the majority of those served are under 30% AMI. A MOU for these funds will be entered between the City and HTFJC. The City no longer has an Affordable Housing Location Model but encourages housing and residential facilities throughout all neighborhoods in Iowa City. The applicant for these funds must provide useful data to support how the project contributes to this goal. The MOU also requires quarterly reporting to Neighborhood Services which identifies projects awarded funding, income levels served, and the fund balance. An Annual Report is also provided to City Council. The Annual Report is typically provided in August for the prior fiscal year. Prepared by: Tracy Hightshoe, NDS Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5244 Resolution No. 24-217 Resolution authorizing the City Manager to sign a memorandum of understanding with the Housing Trust Fund of Johnson County for the contribution and use of $500,000 for affordable housing. Whereas, the City Council desires to fulfill its goal to increase the units of affordable housing in Iowa City, in part, by contributing $500,000 to the Housing Trust Fund of Johnson County, Inc.; and Whereas, the funds should be used to serve households under 80% of median income, the units should be located within the corporate limits of Iowa City, and approved projects shall support the City's goal of encouraging housing and residential facilities throughout all neighborhoods in Iowa City; and Whereas, the attached Memorandum of Understanding sets forth the parameters of how the funds are to be used; and Whereas, the funds to be used as set forth in the attached Memorandum of Understanding are a public purpose. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: The City Manager is authorized to sign the attached Memorandum of Understanding and to amend it as needed. Passed and approved this 20th day of -August 1 �_ Attest: qv LC ,,(f✓ City Clerk 2024. Ma or Pro Tem Approved by ' L---a -. �d---- City Attorne s Office (Sue Dulek - 08/14/2024) Resolution No. 24-217 Page 2 It was moved by Alter and seconded by Moe the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Alter x Bergus x Dunn x Harmsen x Moe x Salih x Teague Prepared by: Tracy Hightshoe, NDS Director, 410 E. Washington St., Iowa City, IA 52240, 319/356-5244 MEMORANDUM OF UNDERSTANDING Re: CITY'S CONTRIBUTION TOWARD AFFORDABLE HOUSING This Memorandum of Understanding is entered into by and between the City of Iowa City, a municipal corporation ("City"), and Housing Trust Fund of Johnson County, Inc. ("Trust Fund") in Iowa City, Iowa. WHEREAS, the City desires to contribute $500,000.00 to the Trust Fund to support affordable housing; and THE PARTIES THEREFORE AGREE AS FOLLOWS: 1. The City will contribute $500,000.00 ("funds") to the Trust Fund to support affordable housing by September 15, 2024. 2. The Trust Fund will use the funds for affordable housing projects as follows: a. All units assisted must serve households under 80% area median income. The project itself may have units designated for higher incomes, but the units assisted by the funds must serve households under 80% area median income. b. The projects must be located within the corporate limits of Iowa City. c. The projects shall support the City's goal of encouraging housing and residential facilities throughout all neighborhoods in Iowa City. The applicant shall provide useful data to support how the project contributes to this goal. The Heat Map of the City's existing subsidized housing under a compliance/affordability period is attached for reference (Exhibit A). d. Quarterly reports must be provided to the City Neighborhood Services Coordinator following the completion of each funding round until all funds have been allocated and all units are occupied by eligible households. An annual report must be submitted by August 1, 2025 for FY25 (July 1, 2024 to June 30, 2025). The reports must include the following information on each project: i. Address and developer, ii. Amount of funds allocated, identify City funds as well as other funding sources; iii. Description of development, such as 12-plex or 20-unit tax project for seniors; iv. Status of construction; v. Rent limitations as detailed in funding agreements with grant/loan recipients. e. Up to 8% of funds ($40,000) may be used for administrative expenses. L)s mil- f Dated, this �r day of.Septembi, 2024. CITY OF IOWA CITY, IOWA By: -15i,off Frum City Manager 2 HOUSING TRUST FUND OF JOHNSON COUNTY, INC. By: Ellen McCabe Executive Director EXHIBIT Affordable Housing Heat Map Iowa City Neighborhood Services: November 2022 NO/iday Rd 2' ct dS t 216 \ Coralville `O °age S 3 2hd Sr Z University of Iowa - Iowa City Campus A7. Uni rsity 6 a Cit ester Aye VLO 80 0 Hei s y E Court S� �` r Benton St4� scatir o �. 10 b • Iowa City Municipal 6 Loo�) Airport n Density of Subsidized Housing Units N LOW W+E � r � High CITY FlownClry City of Iowa City Boundary 0 0.3 0.7 1.4 Miles This map is intended to serve as an aid in graphic representation only. This information is not warranted for accuracy or other purposes. lu J 6 Item Number: 5.e. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT August 20, 2024 Resolution Approving Final Plat of Murry Subdivision, a Resubdivision of a portion of Block 4 Manville Addition, Iowa City, Iowa. (SUB24-0004) Attachments: SUB24-0004 Staff Report Final Plat Existing Home Exhibit SUB24-0004 Resolution STAFF REPORT To: City Council Prepared by: Rachael Schaefer, Item: SUB24-0004 Associate Planner Murry Subdivision, a resubdivision of a Date: August 6, 2024 portion of Block 4 Manville Addition. GENERAL INFORMATION: Owner/Applicant: Contact Person: Requested Action: Purpose: Location: Location Map: Size: Existing Land Use and Zoning: Surrounding Land Use and Zoning John P. Murry, Jr 333 Lexington Ave Iowa City, IA 52246 jpmurrylr(c-)_gmail.com Lacey Stutzman MMS Consultants, Inc. 1917 South Gilbert St Iowa City, IA 52240 I.sexton(o-)mmsconsultants.net Approval of final plat Approval of Murry Subdivision, a resubdivision of a portion of Block 4 Manville Addition. 333 Lexington Ave 0.57 Acres Single -Family Residential; Low Density Single - Family Residential Zoning (RS-5). North: Low Density Single -Family Residential Zoning (RS-5). K Comprehensive Plan: District Plan: Neighborhood Open Space District: File Date: 60 Day Limitation Period: South: Low Density Single -Family Residential Zoning (RS-5) East: Low Density Single -Family Residential Zoning (RS-5) West: Low Density Single -Family Residential Zoning (RS-5). 2-8 Dwelling Units Per Acre Northwest (No District Plan) EMT July 2, 2024 August 31, 2024 BACKGROUND INFORMATION: The applicant, John P. Murry, Jr, has requested approval of a final plat for Murry Subdivision, a 0.57-acre resubdivision, a portion of Block 4 Manville Addition. The Manville Addition Subdivision was originally platted in 1909. The proposed resubdivision would create two residential lots, splitting the existing property in half. The property is currently improved with a single-family residential structure that will be contained on Lot 1 of the Murry Subdivision. Lot 2 of the Murry Subdivision will be vacant with the purpose of selling for residential development. ANALYSIS: The final plat is in general compliance with the subdivision regulations. The two lots have frontage on Lexington Ave for vehicular access. The two lots meet the minimum lot width of 50', the minimum frontage of 40', and the minimum lot size of 6,000 sq ft required for detached single-family units in the RS-5 zone. A 5' wide sidewalk along Lexington Ave adjacent to both lots is required before a Certificate of Occupancy is issued for Lot 2. Construction documents were not required to be submitted as no other public improvements were needed. Legal papers are currently being reviewed by staff. These documents are anticipated to be approved before the August 6, 2024, City Council meeting. With the new property line dividing Lots 1 and 2, the existing residential structure on Lot 1 continues to meet all zoning requirements (lot area, setbacks, etc.) for the RS-5 zone. Lot 2's gross area is 12,348 sq ft; however, the buildable area of Lot 2 is limited by the storm and sanitary sewer easements running through the property (see Existing Home Exhibit attachment). When the easements and setbacks are considered, the buildable area of Lot 2 is 5,008 sq ft. While the subdivision is exempt from the Sensitive Area Ordinance, the site does contain slopes that could impact how the lot develops. Neighborhood Open Space: According to section 14-5K of the City code, the dedication of public open space or fee in lieu of land dedication is addressed at the time of final platting for residential subdivisions. Payment of a fee in lieu of land dedication is appropriate for this subdivision. Transportation & Infrastructure: Access to the proposed lots is provided via Lexington Ave. A five -foot -wide sidewalk is required along Lexington Ave adjacent to both lots. Stormwater management improvements are not required since the area of the final plat is less than 3 acres. Existing storm and sanitary sewer lines run from the western lot line of Lot 1 southeast to the eastern lot line of Lot 2 of the Murry Subdivision. 3 NEXT STEPS: Once the final plat and legal documents are approved, the applicant can submit building permit applications. STAFF RECOMMENDATION: Staff recommends approval of SUB24-0004, an application submitted by John P. Murry, Jr, a Final Plat for Murry Subdivision, a 0.57-acre resubdivision of a portion of Block 4 Manville Addition Iowa City, Iowa. ATTACHMENTS: 1. Final Plat 2. 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CO .�, w O �♦ n Z (5 m z o Joy O Q a CD ZD \ U } J a to �n ~ z n n ❑ �0 UO U) ° m zrn v Q X X O /�'^ o00 uO - a o w w J VJ —)— o° in' o LEMLI V OMLI V AVENUE S00'58'41"E 159.00'(M) 160'(R) OZ'6L ,09'6L / —.—.——'---v--'--'-- 15 SETBACK7 15' SETBACK ....... ....... .. M.......... ... ........ ..... .... ....... / 25' SETBACK 25 SETBACK m : � 16.44'CO N / Q: N / / Y .l { K a 1 m N Li 03Iz 3�w Ow / m 20' SETBACK . 2.. SETBACK / / z ,49'09 160.04'(M) 160'(R) ,OZ'6L N00'54'53"W m m V) Y U m N in 5-P-A L00-996 L L\ L00-996 L L\996 L L\-9 Prepared by: Rachael Schaefer, Associate Planner, 410 E. Washington St., Iowa City, IA 52240 (SUB24-0004) Resolution No. 24-218 Resolution Approving Final Plat of Murry Subdivision, a Resubdivision of a portion of Block 4 Manville Addition, Iowa City, Iowa. (SUB24-0004) INCOMPLETE DOCUMENT Item Number: 6.a. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT August 20, 2024 Establishment of a "No Parking Any Time" parking prohibition on the north side of Hickory Trail from 1 st Avenue west to the end of the cul-de-sac. Prepared By: Emily Bothell, Senior Associate Transportation Planner Reviewed By: Kent Ralston, Transportation Planner Jason Havel, City Engineer Tracy Hightshoe, Neighborhood and Development Services Director Fiscal Impact: None Staff Recommendation: Approval Commission Recommendations: N/A Executive Summary: As directed by Title 9, Chapter 1, Section 3A of the City Code, this is to advise the City Council of the following action: Pursuant to Section 9-1-3A (12); Establishment of a "No Parking Any Time" parking prohibition on the north side of Hickory Trail from 1st Avenue west to the end of the cul-de- sac. Background / Analysis: This action is being taken to prohibit parking on one side of Hickory Trail (26 feet wide) in accordance with the public improvements for the Hickory Trail Subdivision. Item Number: 6.b. I, CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Establishment of "Yield" signs at the entrances to eight neighborhood traffic circles. Prepared By: Emily Bothell, Senior Associate Transportation Planner Reviewed By: Kent Ralston, Transportation Planner Jason Havel, City Engineer Tracy Hightshoe, Neighborhood and Development Services Director Fiscal Impact: None Staff Recommendation: Approval Commission Recommendations: N/A Executive Summary: As directed by Title 9, Chapter 1, Section 3A of the City Code, this is to advise the City Council of the following action: Pursuant to Section 9-1-3A (5); Establishment of "Yield" signs at the entrances to eight neighborhood traffic circles on the following roads/intersections: Tamarack Trail, Buckle Down Circle and Tamarack Trail, Toby Circle and Cherry Avenue, Winnsboro Drive and Aiden Street, Dubs Drive and Declan Drive, and Preston Lane. Background / Analysis: This action is being taken to establish consistent traffic control at neighborhood traffic circles and to comply with the new 11th edition of the Manual on Uniform Traffic Control Devices (MUTCD) for Streets and Highways. This action does not include/affect full roundabouts where yield signs were previously required and are currently present. Item Number: 6.c. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT August 20, 2024 Replace existing "Yield" signs with "Stop" signs along Russell Drive from Tofting Avenue to Dickenson Lane. Prepared By: Emily Bothell, Senior Associate Transportation Planner Reviewed By: Kent Ralston, Transportation Planner Jason Havel, City Engineer Tracy Hightshoe, Neighborhood and Development Services Director Fiscal Impact: None Staff Recommendation: Approval Commission Recommendations: N/A Executive Summary: As directed by Title 9, Chapter 1, Section 3A of the City Code, this is to advise the City Council of the following action: Pursuant to Section 9-1-3A (5); Replace existing "Yield" signs with "Stop" signs for east and westbound traffic at the Russell Drive and Tofting Avenue / Tofting Circle intersection. Replace existing "Yield" signs with "Stop" signs for north and southbound traffic at the intersections of Russell Drive with Wetherby Drive, Terrapin Drive, and Dickenson Lane. Background / Analysis: This action is prompted by ongoing neighborhood concerns regarding poor visibility, noncompliance with existing "Yield" signs, documented collisions, and vehicle speeds along Russell Drive. Despite various measures taken to address these concerns, such as installing "No Parking Here to Corner" signs, tree trimming, and increased police enforcement of traffic control and speeds, we continue to receive similar complaints and experience noncompliance with the existing traffic control. Staff believes that this action will reinforce expectations and improve motorist compliance. Item Number: 9.f. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Resolution adopting City of Iowa City Tax Increment Financing (TIF) Policy. Prepared By: Rachel Kilburg Varley, Economic Development Coordinator Reviewed By: Kirk Lehmann, Assistant City Manager Eric Goers, City Attorney's Office Fiscal Impact: n/a Staff Recommendation: Approval Commission Recommendations: Council Economic Development Committee recommends approval, 3-0. Attachments: Resolution Executive Summary: Iowa City's TIF Policy was last updated in 2017, and this resolution adopts a revised version the TIF Policy. A previous version of this policy was considered by the City Council at the August 6, 2024 meeting and was referred back to the Council Economic Development Committee (EDC) for additional edits. The Council EDC met on this topic on August 12, 2024 and will meet again on August 16, 2024 to consider recommendation of a proposed TIF Policy for full City Council approval. Pending the Council EDC's recommendation, the revised TIF Policy will be issued as a Late Handout prior to the August 20, 2024 City Council meeting. City goals intended with this policy update include: • Make necessary updates to ensure the policy references and aligns with the City Council Strategic Plan, Climate Action & Adaptation Plan, Downtown Historic District, and other new City plans and initiatives which have developed since the 2017 policy was adopted. • Provide clarification about the types of projects that TIF may be used to support, including infrastructure projects or other investments in priorities that do not necessarily generate property tax revenue such as historic preservation, public facilities, or arts and culture. • Reinforce the City's high expectations for TIF-supported projects while enhancing the City's flexibility to meet and advance City priorities and goals within the context of each unique project. In addition to updates which accomplish the goals listed above, other notable changes to the TIF Policy include: • Clarification that the use of district -wide increment may be considered for non -property tax revenue generating public interests such as public infrastructure, arts and culture, or historic, recreational, and/or natural assets. • Climate Action & Resilience: Clarifies differences between projects occurring in new construction versus existing buildings; shifts the emphasis from primarily LEED to expand flexibility for other verifiable, sustainable development efforts for new construction projects such as an alternative green building certifications, exceeding energy code performance, full -building electrification and on -site renewable energy, and embodied carbon reduction; and adds language describing the frequency and types of verification and reporting that may be requested. • Historic Preservation: Simplification of the historic preservation section through acknowledgement of the Downtown Historic District designation and an emphasis on contextual development which preserves, enhances, and contributes to the character and designation of a historic district or landmark. • Affordable Housing: Clarification of minimum compliance period, with a preference for longer -term and permanent affordability. • Economic Justice: Expanded to emphasize workplace safety, child labor, and other labor laws in addition to wage labor laws. • Underwriting and Application: Notes that third -party financial review may be enlisted to help evaluate the need for TIF and clarifies the possible structure and terms of TIF assistance. Background / Analysis: Tax increment financing (TIF) is a mechanism used to provide financial assistance for projects that remove slum and blight and/or advance economic development within a designated urban renewal area and TIF district. The City's TIF Policy provides the standards against which TIF incentives or assistance shall be considered. The TIF Policy works in conjunction with a financial and gap analysis to assess financial need for TIF assistance. The Council Economic Development Committee first reviewed a proposed version of the TIF Policy at their July 1, 2024 meeting. The Committee reviewed, discussed, and recommended the following changes, which were incorporated into the version recommended for City Council approval by a vote of 3-0: • Add support for projects which advance sustainable and alternative transportation principles within the "Climate Action and Resilience" section • Remove language related to demolition in the "Historic Preservation" section, leaving the focus on projects which preserve, enhance, and contribute to the historic character of a designated district or landmark. • Add strong preference for permanent affordability or longer -term commitments beyond the 20-year minimum in the "Affordable Housing" section. City Council first considered approval of this recommended policy at their July 16, 2024 meeting and moved to defer it to the August 6, 2024 meeting due to public comment on the Climate Action section of the policy. At the August 6 meeting, the Council voted to refer the policy back to the Council EDC for additional edits to the Climate Action section. The Council EDC met again on August 12, 2024 to discuss the revised TIF Policy and recommended the following additional changes: • Add language to the introductory text clarifying that TIF assistance and requirements are determined on a project -by -project basis and in context of the totality of the public benefit priorities identified in the TIF Policy. • In the "Climate Action and Resilience" section, insert a list of specific examples of acceptable standards/metrics for new construction projects as well as identify that alternative standards may be necessary for projects occurring within existing buildings. Additionally, add language describing the frequency and type of verification and reporting that may be requested. The Council EDC is scheduled to meet on August 16, 2024 and the agenda includes review of the revised TIF Policy incorporating these changes, and consideration of a recommendation to the full City Council. Pending the Council EDC's recommendation, the revised TIF Policy will be issued as a Late Handout prior to the August 20, 2024 City Council Meeting. This policy update is in line with the City Council Strategic Plan action item to adopt flexible incentives which support the economy and local business. Additionally, the Affordable Housing Action Plan identifies infrastructure TIFs as a tool to help boost housing supply in the community. Item Number: 9.f. CITY OF IOWA CITY COUNCIL ACTION REPORT August 20, 2024 Adopting Tax Increment Financing Policy - See draft minutes of the Economic Development Committee for August 16th, redlined version and the final version of the proposed Tax Increment Financing Policy. Attachments: Draft minutes Economic Development Committee - August 16 Proposed Tax Increment Financing Policy - redlined version Proposed Tax Increment Financing Policy Minutes City Council Economic Development Committee August 16, 2024 Emma J. Harvat Hall DRAFT - p.1 Council EDC, 8/16/24 Late Handouts Distributed City Council Economic Development Committ �q- Members Present: Josh Moe, Andrew Dunn (Date) Members Absent: Laura Bergus Staff Present: Rachel Kilburg Varley, Eric Goers, Sarah Gardner Others Present: None Recommendations to council: Dunn moved, Moe seconded a motion to approve a recommendation to the full City Council for approval of the revised TIF Policy. Motion passed (2-0). Call to Order Councilor Moe called the meeting to order at 10:03 a.m. Consider approval of minutes from the August 12, 2024 Economic Development Committee meeting Dunn moved, Moe seconded a motion to approve the minutes of the August 12, 2024 meeting. Motion passed (2-0). Consider recommendation to full City Council for approval of revised Tax Increment Fi- nancing Policy Councilor Moe briefly reviewed the proposed changes to the policy, including edits to the Climate Action & Resilience section and the addition of an introductory paragraph clarifying how the policy will be used by staff and City Council. Moe asked Dunn for feedback or comments. Dunn expressed his approval of the changes. Moe invited discussion on other areas of the TIF Policy beyond those changes. Neither Moe nor Dunn had additional comments. Dunn moved, Moe seconded a motion to approve a recommendation to the full City Council for approval of the revised TIF Policy. Motion passed (2-0). Old or New Business None. DRAFT - p.2 Council EDC, 8/16/24 Adjournment Dunn moved, Moe seconded that the meeting be adjourned. Motion carried (2-0) DRAFT - p.3 Council EDC, 8/16/24 Council Economic Development Committee ATTENDANCE RECORD 2020-24 TERM 12/09/20 10/27/21 10/19/22 11/29/22 9/25/23 7/1/24 NAME EXP. Josh Moe 01/02/24 --- --- --- --- --- X Andrew Dunn 01/02/24 --- --- --- --- --- X Laura Ber us 01/02/24 --- -•- X X X X John Thomas 01/02/24 X X X X X --- Megan Alter 01/02/24 --- --- X X X --- Susan Mims 01/02/22 X X --- --- --- --- Mazahir Salih 01/02/22 O/E X --- --- --- --- Key: X = Present O = Absent --- = not a member O/E = Absent/Excused Late Handouts Distributedg� Y--1q-�� (Date) Proposed Tax Increment Financing Policy I August 44 2024 Formatted: Indent: Left: 0- v I -Ay 3 1 Z �l r+a�_ CITY OF IOWA CITY UNESCO CITY OF LITERATURE Tax Increment Financing (TIF) Policy Tax Increment Financing (TIF) is a tool to provide financial assistance for projects within a designated urban renewal area and TIF District. Iowa City's use of TIF is intended to remove slum and blight and/or advance economic development by encouraging residential, commercial, or industrial development in line with this policy document. 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 (Exhibits A, B), it may be eligible to be considered for TIF. The City of Iowa City's current Strategic Plan priorities are attached as Exhibit C. The full plan can be found online at tnrww.iceay.oig/stratekicalan. TIF support for projects located in the Downtown or Riverfront Crossings must also demonstrate alignment with the Downtown and Rlverfront C(p5sIngs Master Plan. Recognizing that some minimal or non -tax -generating 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 public infrastructure, arts and cultural, recreational, historic, and/or natural assets. The City may utilize TIF to improve or develop new public infrastructure and/or other amenities and usesthat further goals and objectives in other adopted planning documents, including but not limited to, the Comprehensive Plan, Urban Renewal Area plans, Climate Action plans, Affordable Housing plans, and public facility and recreation plans. Understanding that TIF is made possible by the increased value in real property, and that many of these economic activity generators are tax exempt, a TIF project that advances these public interests would only be possible by using existing, district -wide increment. Additionally, catalyst projects that encourage additional unsubsidized private development in an Urban Renewal Area, either directly or indirectly, may be given special consideration for TIF incentives. TIF org ects rewire an investment of considerable time and resources For both the City and applicants seeking TIF aSiistarlCe. As such, this policy establishes RuidinR PrinCIPIeS and detaIts key ublic benefit p ricrities the City w0l seek to advance through TIF assistance. Each p ro ect will be assessed by the tot atit of Public benefit in additic n to the financial anal sis- Specific re Q uirem enIs ❑r community -benefits of any org;L Lorpr_ogram_benS fitting,fro[n TIF support wi i be individua]Iv evaluated and determined and may include a combination of policy priorities Outlined in this document and orother public henefits not Ide ntified in thi s document but which 0, li n W, it the Citv's Strategic Plan and other adopted Plans- All projects receiving TIF sLloport shall ultimately be subi ect to a eor ova I by City Council. Climate Action and Resilience The City of Iowa City has established goals and a Climate Action Plan to reduce community -wide carbon emissions by 45% from 2010 levels by 2030 and achieve net -zero carbon emissions by 2050. Formatted: Left: 0.81 ", Right: 0.81 ", Top: 0.81 Bottom: 0,81 ", Header distance from edge: 0,4" Proposed Tax Increment Financing Policy I AugustJ4 2024 In orderto aid the City in meeting climate action and resilience goals, projects should clearly demonstrate leadership in sustainable development. Tw,_ Fnay lAc de aRe ^- Af the fellewino= effAF49 aOOitioR to ether 5ww sable dpvelepment wategles suElh as theiie listed above. Wmaii_Ps of leadership in sustainable development for new construction protects may include: • Green 6SriSding AChleyinR EEEL7 Silver or hitcher certification for new construction or maiar rehabiiltatInn of commercial. mixed -use. or roidential Construction. ■ Alternative Green B01dingCertification: Dther sustainable building rating Sy sterns or standards that exceed the current_enerey rode t7y a minimum of 25%. • E ne rgy Performance; Exceed adopted L ii F, M code gerformance by 25%w ■ Electrificabon_FuI] buildingelectrification supported by on -site renewable energy sufficient to offset I01i or more of total oroiected annual eneray, usp- • m bod i e d Carbon Reduction; Whole 6 ui Id Ing Life Cycle Assessment WBLCAI that produces a 15% reduction in Global Warming Potential fGWPjr TIF m V also be used (p hel Q Finance climate anion resilience and carbon reduction 13 ro'ects in existi n a bulldings. Such uses shall advance the Clty's emission -reduction goals and be subject to specific Impact and reporting renulrements as determined anarrogriate by the City. Projects and proprams which go above and beyCond or stack su st a ina bi I ity benefits are encouraged. Beneficiaries receiving TIF assistance that support climate action and resilience efforts should view the investment as a Iona -term commitment to Sustainabilfty. As such, the City will segk_to-verify the vallditV and impact of agreed upon strategies at multiple points aver the lifetime of the TIF includin-g, at a minimum, pproval of the Oevetopment Agreement and the annual certification process. Acceptable methods of vent t.Otran, or_repar�in�,shall be Suhje[t to a roval brit m ay include third-Cpcarrt verification thrri ou h a reen bulIdicertificaton program,EnE rly Service Ccmpa ny IESC . or IIra used_-'rnan bulid! ng professio naI and/or enrollment in the Energit Star Portfolio Manage r_u; col laborahnn with the City. The City will work in partnership with the project developer to ensure each project has a tailored strategy that demonstrates leadership in climate action and resilience. Historic Preservation TIF-supported projects located in historic districts should increase the diversity and vibrancy of the district, while also preserving and enhancing the historic character. Building design should be contextual to the area and complement the historic character of the district. This may be achieved Formatted: Indent: Left: 0" f '— Formatted: Body Text, Indent. Left: 0.3", Hanging: 0", Right: 0.4", Space Before: 0 pt, No bullets or numbering, Tab stops: Not at 0,8" + 0.8" J —� Formatted: Indent: Left. 0.25", First line: 0" 1 Formatted: Space Before: Opt Proposed Tax Increment Financing Policy I August 14 2024 —I Formatted: Indent: Left 0" through design considerations such as size, form, materials, and engaging pedestrian -level streetscape. Historic preservation projects may be eligible forTIF funding from district -wide increment 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 rental units as affordable to tenants at or below 60%AMI (area median income) for a minimum 20-year compliance period, with a strong preference for permanent affordability or longer -term commitments. If those housing units are for sale, 15% of the units must be targeted to households at or below 110% AMI. Current AMI limits are available on the City's website: httos;),lwww,iseov.orp/government/deoartments-and-d t onV eiehborhood-and- develoamgnt-services),neighborhood-serylce-&fcommunity-develoomentfresnurces-For- r organ izatlo ns-rece (vine-ci ty- funds. 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 exchange for the increased density allowed in 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, workplace safety, child labor, or other labor laws. 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, written provisions requiring compliance with all state, federal, and local laws and regulations governing wages, child labor, workplace safety, and other labor laws, proof of which must be provided to City prior to the start of construction. Additionally, the General Contractor of a TIF-supported project will be required to provide the Developer and City, no later than the filing of an application for a building permit, a list of the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. 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 or retention of high Proposed Tax Increment Financing Policy I August - - 2024 Formatted: Indent Left: 0" j payingjobs to the local economy, a jobs -based TIF incentive would be structured using the thresholds of the State of Iowa High Quality Jobs Program. Underwriting and Application The following criteria are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a) Application: Developer must submit a complete application. b) "But For" Test: TIF support tied directly to private projects must meet a "but for' standard. That is, each project must sufficiently demonstrate need for the City's financial assistance, such that without it, the project would not occur. TIF assistance in the form or rebates will be used as gap financing as determined through a gap analysis. The City may enlist third party support to review private project financials and evaluate the need for TIF. Use of a third party is not anticipated when TIF is being utilized to rebate costs of public infrastructure, state and federally -supported affordable housing projects, and projects that support non -property tax generating economic activity. c) Structure of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the City. This includes variables such as the percentage of increment utilized, maximum rebate amount, and maximum term. d) Developer equity: For private development projects, 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. Proposed Tax Increment Financing Policy I August 14 2024 — { Formatted: indent Left: 0" Exhibit A Urban Renewal Areas Enabling Tax Increment Financing Ili[II IIIIA ■ MMMrrre IM . .:��. t►fl�lri: �. MWHav Proposed Tax Increment Financing Policy I August 2024 1 Formatted: Indent Left: 0" Exhibit B City -University Project 1 Urban Renewal Area City -University Project 1 Urban Renewal Area �$ AsAmended S % i � A • i R'IRIIB,IIE V• a 7 � rwtx i S h ayn• u,+ ��,� 11q. gt - Urban renewal area boundaryRA...LLr ® 1969 Original Area 2001 Amended Area E ® 2012 Amended Area art �'►„ , A„a ®2016Amended Area AR 4A g Proposed Tax Increment Financing Policy I August 14 2024 Formatted: Indent: Left: 0" Exhibit C City of Iowa City FY2023-2028 Strategic Plan The full Strategic Plan document is available online at www.icoov.orplS1ralegicPlan. VALUES • Racial Equity, Social Justice & Human Rights: We prioritize diversity, equity, and inclusion, eliminatination of systemic barriers, and facilitating equal access forall. • Climate Action: We are leaders in reducing greenhouse gas emissions and adopt sustainable energy, transportation, land, and water practices. • Partnerships & Engagement: We are transparent and foster trust, involve the public in decision - making, and offer facilities and services that foster community connection. IMPACT AREAS & STRATEGIES Neighborhoods & Housing • Update City Comprehensive Plan and Zoning Code to encourage compact neighborhoods with diverse housing types and land uses. • Partner in projects that serve as models for desired future development. • Create inviting and active outdoor spaces with unique and engaging recreation offerings. • Address the unique needs of vulnerable populations and low to moderate -income neighborhoods. Mobility • Expand the access and convenience of environmentally friendly and regionally connected public transit. • Design and maintain complete streets that are comfortable and safe for all users. • Grow and prioritize bike and pedestrian accommodations. Economy • Reinforce Iowa City as a premier community to locate and grow a business. • Ensure appropriate infrastructure is in place for future business growth and development. • Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating new pathways to success for marginalized populations. • Build Iowa City's image as the Greatest Small City for the Arts. • Strengthen the Iowa River's role as a signature community amenity and tourism generator. Safety & Well -Being • Implement and expand innovative public safety models and facilities to improve outcomes and relationships within the community. • Partner with non -profits to address the most emergent and foundational community safety and well-being needs. • Build community by fostering social connections and developing safe, accessible public spaces for gathering. Proposed Tax Increment Financing Policy I August 16, 2024 � r t CITY OF IOWA CITY UNESCO CITY OF LITERATURE Tax Increment Financing (TIF) Policy Late Handouts Distributed 8 -- / q -,;L C/ Tax Increment Financing (TIF) is a tool to provide financial assistance for projects within a designated urban renewal area and TIF District. Iowa City's use of TIF is intended to remove slum and blight and/or advance economic development by encouraging residential, commercial, or industrial development in line with this policy document. 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 (Exhibits A, B), it may be eligible to be considered for TIF. The City of Iowa City's current Strategic Plan priorities are attached as Exhibit C. The full plan can be found online at www.icgov.org/strategicplan. TIF support for projects located in the Downtown or Riverfront Crossings must also demonstrate alignment with the Downtown and River€rout Crossings Master Plan. Recognizing that some minimal or non -tax -generating 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 public infrastructure, arts and cultural, recreational, historic, and/or natural assets. The City may utilize TIF to improve or develop new public infrastructure and/or other amenities and uses that further goals and objectives in other adopted planning documents, including but not limited to, the Comprehensive Plan, Urban Renewal Area plans, Climate Action plans, Affordable Housing plans, and public facility and recreation plans. Understanding that TIF is made possible by the increased value in real property, and that many of these economic activity generators are tax exempt, a TIF project that advances these public interests would only be possible by using existing, district -wide increment. Additionally, catalyst projects that encourage additional unsubsidized private development in an Urban Renewal Area, either directly or indirectly, may be given special consideration for TIF incentives. TIF projects require an investment of considerable time and resources for both the City and applicants seeking TIF assistance. As such, this policy establishes guiding principles and details key public benefit priorities the City will seek to advance through TIF assistance. Each project will be assessed by the totality of public benefit in addition to the financial analysis. Specific requirements or community benefits of any project or program benefitting from TIF support will be individually evaluated and determined and may include a combination of policy priorities outlined in this document and/or other public benefits not identified in this document, but which align with the City's Strategic Plan and other adopted plans. All projects receiving TIF support shall ultimately be subject to approval by City Council. Climate Action and Resilience The City of Iowa City has established goals and a Climate Action Plan to reduce community -wide carbon emissions by 45% from 2010 levels by 2030 and achieve net -zero carbon emissions by 2050. Proposed Tax Increment Financing Policy I August 16, 2024 In order to aid the City in meeting climate action and resilience goals, projects should clearly demonstrate leadership in sustainable development. Examples of leadership in sustainable development for new construction projects may include: • Green Building Certification: Achieving LEED Silver or higher certification for new construction or major rehabilitation of commercial, mixed -use, or residential construction. • Alternative Green Building Certification: Other sustainable building ratings systems or standards that exceed the current energy code by a minimum of 25%. ■ Energy Performance: Exceed adopted energy code performance by 25%. • Electrification: Full building electrification supported by on -site renewable energy sufficient to offset 10% or more of total projected annual energy use. • Embodied Carbon Reduction: Whole Building Life Cycle Assessment (WBLCA) that produces a 15% reduction in Global Warming Potential (GWP). TIF may also be used to help finance climate action, resilience, and carbon reduction projects in existing buildings. Such uses shall advance the City's emission -reduction goals and be subject to specific impact and reporting requirements as determined appropriate by the City. Projects and programs which go above and beyond or stack sustainability benefits are encouraged. Beneficiaries receiving TIF assistance that support climate action and resilience efforts should view the investment as a long-term commitment to sustainability. As such, the City will seek to verify the validity and impact of agreed upon strategies at multiple points over the lifetime of the TIF including, at a minimum, approval of the Development Agreement and the annual certification process. Acceptable methods of verification or reporting shall be subject to City approval, but may include third -party verification through a green building certification program, Energy Service Company (ESCO), or licensed green building professional and/or enrollment in the Energy Star Portfolio Manager in collaboration with the City. The City will work in partnership with the project developer to ensure each project has a tailored strategy that demonstrates leadership in climate action and resilience. Historic Preservation TIF-supported projects located in historic districts should increase the diversity and vibrancy of the district, while also preserving and enhancing the historic character. Building design should be contextual to the area and complement the historic character of the district. This may be achieved through design considerations such as size, form, materials, and engaging pedestrian -level streetscape. Historic preservation projects may be eligible for TIF funding from district -wide increment 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 rental units as affordable to tenants at or below 60% AMI (area median income) for a minimum 20-year compliance period, with a strong preference for permanent affordability or longer -term commitments. If those housing units are for sale, 15% of the units must be targeted to households at or below 110%AMI. Current AMI limits are available on the City's Proposed Tax Increment Financing Policy I August 16, 2024 website: https:llwww.icgov.org/government(departments-and-divisions/neighborhood-and- d evelopment-sere iceslneih_bochoad-services/community-development/resources-for- , orga n izatio ns-receiving-city-funds. 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 exchange for the increased density allowed in 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, workplace safety, child labor, or other labor laws. 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, written provisions requiring compliance with all state, federal, and local laws and regulations governing wages, child labor, workplace safety, and other labor laws, proof of which must be provided to City prior to the start of construction. Additionally, the General Contractor of a TIF-supported project will be required to provide the Developer and City, no later than the filing of an application for a building permit, a list of the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. 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 or retention 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. Underwriting and Application The following criteria are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a) Application: Developer must submit a complete application. b) "But For" Test: TIF support tied directly to private projects must meet a "but for" standard. That is, each project must sufficiently demonstrate need for the City's financial assistance, such that without it, the project would not occur. TIF assistance in the form or rebates will be used as gap financing as determined through a gap analysis. The City may enlist third party support to review private project financials and evaluate the need for TIF. Use of a third party is not anticipated Proposed Tax Increment Financing Policy I August 16, 2024 when TIF is being utilized to rebate costs of public infrastructure, state and federally -supported affordable housing projects, and projects that support non -property tax generating economic activity. c) Structure of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the City. This includes variables such as the percentage of increment utilized, maximum rebate amount, and maximum term. d) Developer equity: For private development projects, 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. Proposed Tax Increment Financing Policy I August 16, 2024 Exhibit A Urban Renewal Areas Enabling Tax Increment Financing MH ! i�1� ON I. ■ ON L mom so so t M WIN -� Proposed Tax Increment Financing Policy I August 16, 2024 Exhibit B City -University Project 1 Urban Renewal Area City -University Project 1 Urban Renewal Area NEWTON \ m a As Amended w �Lvle AYE WASHINGTON 5T ti Sj o D o a 1.1oo F1., mGRANDAVE MELROSE AVE E COURT ST n p O O F 19 a O z RY ST MYRTLEAVE 2 �_ ... . PAGE ST t a WALNUT ST em�uu W BENTON ST S O A D O DOUGLASS ST C ST P Z IS S O\PNPG HIGHWAY 1 W a i tr O Y IGHLA RAVE U W UqE" ST ERREST E ftu, RUPPE RT RD H/ y} ONw4y s E s C Urban renewal area boundary mOLYMPIC CT ® 1969 Original Area SOUTHGATE 2001 Amended Area AVE Y ® 2012 Amended Area a T H'NSTAVA AVE o 2016 Amended Area ' AST CAVE Y �nn SANDUSKY DR � .50 500 t 000 G / A Proposed Tax Increment Financing Policy I August 16, 2024 Exhibit C City of Iowa City FY2023-2028 Strategic Plan The full Strategic Plan document is available online at www.icgov.orglStrategicPlan. VALUES • Racial Equity, Social Justice & Human Rights: We prioritize diversity, equity, and inclusion, elimination of systemic barriers, and facilitating equal access for all. ■ Climate Action: We are leaders in reducing greenhouse gas emissions and adopt sustainable energy, transportation, land, and water practices. • Partnerships & Engagement: We are transparent and foster trust, involve the public in decision - making, and offer facilities and services that foster community connection. IMPACT AREAS & STRATEGI Neighborhoods & Housing • Update City Comprehensive Plan and Zoning Code to encourage compact neighborhoods with diverse housing types and land uses. • Partner in projects that serve as models for desired future development. • Create inviting and active outdoor spaces with unique and engaging recreation offerings. • Address the unique needs of vulnerable populations and low to moderate -income neighborhoods. Mobility ■ Expand the access and convenience of environmentally friendly and regionally connected public transit. ■ Design and maintain complete streets that are comfortable and safe for all users. • Grow and prioritize bike and pedestrian accommodations. Economy • Reinforce Iowa City as a premier community to locate and grow a business. • Ensure appropriate infrastructure is in place for future business growth and development. • Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating new pathways to success for marginalized populations. • Build Iowa City's image as the Greatest Small City for the Arts. • Strengthen the Iowa River's role as a signature community amenity and tourism generator. Safety & Well -Being • Implement and expand innovative public safety models and facilities to improve outcomes and relationships within the community. • Partner with non -profits to address the most emergent and foundational community safety and well-being needs. Build community by fostering social connections and developing safe, accessible public spaces for gathering. Prepared by: Rachel Kilburg Varley, Economic Development Coordinator, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 Resolution No. 24-219 Resolution adopting City of Iowa City Tax Increment Financing (TIF) Policy. Whereas, the Iowa City City Council believes it is in the public's best interest to establish a policy guiding the community's economic development activities; and Whereas, the City Council determined to review and revise existing TIF policies in their 2016- 2017 Strategic Plan; and Whereas, the City Council Economic Development Committee voted to recommend the current TIF policy to the City Council at their meeting on October 19, 2017; and Whereas, City Council later adopted that policy; and Whereas, following the passage of time and changing environment, revisions were needed to ensure the policy references and aligns with the City Council Strategic Plan, Climate Action & Adaptation Plan, Downtown Historic District, and other new City plans and initiatives which have developed since the 2017 policy was adopted; and Whereas, the City Council Economic Development Committee directed the policy review and revision process; and Whereas, the revised policy provides clarification about the types of projects that TIF may be used to support, including infrastructure projects or other investments in priorities that do not necessarily generate property tax revenue such as historic preservation, public facilities, or arts and culture; and Whereas, the revised policy also reinforces the City's high expectations for TIF-supported projects while enhancing the City's flexibility to meet and advance City priorities and goals within the context of each unique project; and Whereas, the revised policy addresses the public benefits that can be gained through the use of tax increment financing; and Whereas, the City Council Economic Development Committee voted to recommend the attached TIF Policy to the City Council at their meeting on August 16, 2024; and Whereas, the policy will be used to guide the City Council's future use of tax increment financing. Now, therefore, be it resolved, by the City Council of the city of Iowa City, State of Iowa: The Tax Increment Financing (TIF) Policy attached hereto is adopted. Resolution No. 24-219 Page 2 Passed and approved this 20th Attest: City berk Approved: G City At rney — 08/15/2024 HAV of August �r1�� Resolution No. 24-219 Page 3 Moved by Alter , seconded by Moe that the Resolution be adopted and upon roll call there were: AYES: NAYS: ABSENT: x Alter X Bergus % Dunn X Harmsen �— Moe Salih X Teague Tax Increment Financing Policy I August 20, 2024 i r 1 — -4 I —A III1+Jtp��� CITY OF IOVVA CITY UNESCO CITY OF LITERATURE Tax Increment Financing (TIF) Policy Tax Increment Financing (TIF) is a tool to provide financial assistance for projects within a designated urban renewal area and TIF District. Iowa City's use of TIF is intended to remove slum and blight and/or advance economic development by encouraging residential, commercial, or industrial development in line with this policy document. 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 (Exhibits A, B), it may be eligible to be considered for TIF. The City of Iowa City's current Strategic Plan priorities are attached as Exhibit C. The full plan can be found online at www.icgov.org/strategicplan. TIF support for projects located in the Downtown or Riverfront Crossings must also demonstrate alignment with the Downtown and Riverfront Crossings Master Plan. Recognizing that some minimal or non -tax -generating 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 public infrastructure, arts and cultural, recreational, historic, and/or natural assets. The City may utilize TIF to improve or develop new public infrastructure and/or other amenities and uses that further goals and objectives in other adopted planning documents, including but not limited to, the Comprehensive Plan, Urban Renewal Area plans, Climate Action plans, Affordable Housing plans, and public facility and recreation plans. Understanding that TIF is made possible by the increased value in real property, and that many of these economic activity generators are tax exempt, a TIF project that advances these public interests would only be possible by using existing, district -wide increment. Additionally, catalyst projects that encourage additional unsubsidized private development in an Urban Renewal Area, either directly or indirectly, may be given special consideration for TIF incentives. TIF projects require an investment of considerable time and resources for both the City and applicants seeking TIF assistance. As such, this policy establishes guiding principles and details key public benefit priorities the City will seek to advance through TIF assistance. Each project will be assessed by the totality of public benefit in addition to the financial analysis. Specific requirements or community benefits of any project or program benefitting from TIF support will be individually evaluated and determined and may include a combination of policy priorities outlined in this document and/or other public benefits not identified in this document, but which align with the City's Strategic Plan and other adopted plans. All projects receiving TIF support shall ultimately be subject to approval by City Council. Climate Action and Resilience The City of Iowa City has established goals and a Climate Action Plan to reduce community -wide carbon emissions by 45% from 2010 levels by 2030 and achieve net -zero carbon emissions by 2050. Tax Increment Financing Policy I August 20, 2024 In order to aid the City in meeting climate action and resilience goals, projects should clearly demonstrate leadership in sustainable development. Examples of leadership in sustainable development for new construction projects may include: • Green Building Certification: Achieving LEED Silver or higher certification for new construction or major rehabilitation of commercial, mixed -use, or residential construction. • Alternative Green Building Certification: Other sustainable building ratings systems or standards that exceed the current energy code by a minimum of 25%. • Energy Performance: Exceed adopted energy code performance by 25%. • Electrification: Full building electrification supported by on -site renewable energy sufficient to offset 10% or more of total projected annual energy use. • Embodied Carbon Reduction: Whole Building Life Cycle Assessment (WBLCA) that produces a 15% reduction in Global Warming Potential (GWP). TIF may also be used to help finance climate action, resilience, and carbon reduction projects in existing buildings. Such uses shall advance the City's emission -reduction goals and be subject to specific impact and reporting requirements as determined appropriate by the City. Projects and programs which go above and beyond or stack sustainability benefits are encouraged. Beneficiaries receiving TIF assistance that support climate action and resilience efforts should view the investment as a long-term commitment to sustainability. As such, the City will seek to verify the validity and impact of agreed upon strategies at multiple points over the lifetime of the TIF including, at a minimum, approval of the Development Agreement and the annual certification process. Acceptable methods of verification or reporting shall be subject to City approval, but may include third -party verification through a green building certification program, Energy Service Company (ESCO), or licensed green building professional and/or enrollment in the Energy Star Portfolio Manager in collaboration with the City. The City will work in partnership with the project developer to ensure each project has a tailored strategy that demonstrates leadership in climate action and resilience. Historic Preservation TIF-supported projects located in historic districts should increase the diversity and vibrancy of the district, while also preserving and enhancing the historic character. Building design should be contextual to the area and complement the historic character of the district. This may be achieved through design considerations such as size, form, materials, and engaging pedestrian -level streetscape. Historic preservation projects may be eligible for TIF funding from district -wide increment 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 rental units as affordable to tenants at or below 60% AMI (area median income) for a minimum 20-year compliance period, with a strong preference for permanent affordability or longer -term commitments. If those housing units are for sale, 15% of the units must be targeted to households at or below 110% AMI. Current AMI limits are available on the City's Tax Increment Financing Policy I August 20, 2024 website: https://www.icgov.org/government/departments-and-divisions/neighborhood-and- development-services/neighborhood-services/community-development/resources-for- organizations-receiving-city-funds. 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 exchange for the increased density allowed in 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, workplace safety, child labor, or other labor laws. 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, written provisions requiring compliance with all state, federal, and local laws and regulations governing wages, child labor, workplace safety, and other labor laws, proof of which must be provided to City prior to the start of construction. Additionally, the General Contractor of a TIF-supported project will be required to provide the Developer and City, no later than the filing of an application for a building permit, a list of the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. 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 or retention 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. Underwriting and Application The following criteria are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a) Application: Developer must submit a complete application. b) "But For" Test: TIF support tied directly to private projects must meet a "but for" standard. That is, each project must sufficiently demonstrate need for the City's financial assistance, such that without it, the project would not occur. TIF assistance in the form or rebates will be used as gap financing as determined through a gap analysis. The City may enlist third party support to review private project financials and evaluate the need for TIF. Use of a third party is not anticipated Tax Increment Financing Policy I August 20, 2024 when TIF is being utilized to rebate costs of public infrastructure, state and federally -supported affordable housing projects, and projects that support non -property tax generating economic activity. c) Structure of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the City. This includes variables such as the percentage of increment utilized, maximum rebate amount, and maximum term. d) Developer equity: For private development projects, 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. Tax Increment Financing Policy I August 20, 2024 Exhibit A Urban Renewal Areas Enabling Tax Increment Financing Tax Increment Financing Policy I August 20, 2024 Exhibit B City -University Project 1 Urban Renewal Area City -University Project 1 Urban Renewal Area �EW1GN As Amended W IOWA AVE z WAAVE 'W WASNINGTON ST z o i 4 m m 0 a GRAND AVE M"OSE AVE E COURT ST M Y A 9 l4 0 O O ERY ST Z MYRTLE AVE O OOa � w _ O PAGE ST A ~ gym WALNU' ST W BEKrON ST S p A 2 O DDuclnss sT O A y A Z P m �pE4 �OS WGNWAY 1 W y u �Y,UK G1 M ° 0 GRLAND AVE O SURF[ 3r ERNEST S RUPPERT RD SUM H, ST Cpb rsF Z K Urban renewal area boundary p OLYMP!O CT o � ® 1969 Original Area = SOUTHGATE AYE g 2001 Amended Area = 1 AVE ® 2012 Amended Area f��O e '*3, AVE ®�2016 Amended Area '� AST 4AVE � r I---- SANDUSKY OR Tax Increment Financing Policy I August 20, 2024 Exhibit C City of Iowa City FY2023-2028 Strategic Plan The full Strategic Plan document is available online at www.icgov.org/StrategicPlan. VALUES Racial Equity, Social Justice & Human Rights: We prioritize diversity, equity, and inclusion, elimination of systemic barriers, and facilitating equal access for all. Climate Action: We are leaders in reducing greenhouse gas emissions and adopt sustainable energy, transportation, land, and water practices. • Partnerships & Engagement: We are transparent and foster trust, involve the public in decision - making, and offer facilities and services that foster community connection. IMPACT AREAS & STRATEGIES Neighborhoods & Housing • Update City Comprehensive Plan and Zoning Code to encourage compact neighborhoods with diverse housing types and land uses. • Partner in projects that serve as models for desired future development. • Create inviting and active outdoor spaces with unique and engaging recreation offerings. • Address the unique needs of vulnerable populations and low to moderate -income neighborhoods. Mobility • Expand the access and convenience of environmentally friendly and regionally connected public transit. • Design and maintain complete streets that are comfortable and safe for all users. • Grow and prioritize bike and pedestrian accommodations. Economy • Reinforce Iowa City as a premier community to locate and grow a business. • Ensure appropriate infrastructure is in place for future business growth and development. • Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating new pathways to success for marginalized populations. • Build Iowa City's image as the Greatest Small City for the Arts. • Strengthen the Iowa River's role as a signature community amenity and tourism generator. Safety & Well -Being • Implement and expand innovative public safety models and facilities to improve outcomes and relationships within the community. • Partner with non -profits to address the most emergent and foundational community safety and well-being needs. • Build community by fostering social connections and developing safe, accessible public spaces for gathering. Proposed Tax Increment Financing Policy I August 14, 2024 • wr���� CITY OF IOWA CITY UNESCO CITY OF LITERATURE Tax Increment Financin§ (TIF) Policy Tax Increment Financing (TIF) Na tool to provide financial assistan a for projects within a designated urban renewal area and TIF District. Iowa City's use of TIF is inte ded to remove slum and blight and/or advance economic develo ment by encouraging resid tial, commercial, or industrial development in line with this polic document. Alignment with the City's Strategic PI n 'wectill providf'e the st indicator about whether a project may be eligible for TIF. To the extent that a pr helps achie e the City's Strategic Plan objectives and is located within an established Urban Re wal Area (E ibits A, B), it may be eligible to be considered for TIF. The City of Iowa City's current Str egic Pla priorities are attached as Exhibit C. The full plan can be found online at www.ic ov.or str egicp ft. TIF support for projects located in the Downtown or Riverfront Crossings must also a onstrate alignment with the Downtown and Riverfront Crossings Master Plan. Recognizing that some minimal or non -tax- ener ting activity and/or investment in public infrastructure may influence additional pr' ate ec omic development activity, TIF may be an appropriate tool to further investment i Iowa City' public infrastructure, arts and cultural, recreational, historic, and/or natural a ets. The City ay utilize TIF to improve or develop new public infrastructure and/or other a nities and uses t at further goals and objectives in other adopted planning documents, inclu Ing but not limited the Comprehensive Plan, Urban Renewal Area plans, Climate Action plans, ordable Housing plan and public facility and recreation plans. Understanding that TIF is made ssible by the increased v Lie in real property, and that many of these economic activity genera rs are tax exempt, a TIF pro ct that advances these public interests would only be possible by usin existing, district -wide increme t. Additionally, catalyst projects that encourage additional unsubs' ized private development in an ban Renewal Area, either directly or indirectly, maybe given spe ial consideration for TIF incentives. TIF projects require an in estment of considerable time and resourc for both the City and applicants seeking TIF a sistance. As such, this policy establishes guide g principles and details key public benefit prioritie the City will seek to advance through TIF assist rice. Each project will be assessed by the total' y of public benefit in addition to the financial ana sis. Specific requirements or community bene is of any project or program benefitting from TIF su ort will be individually evaluated and det mined and may include a combination of policy priorit s outlined in this document and/or they public benefits not identified in this document, but hich align with the City's Strategic P an and other adopted plans. All projects receiving TIF supp rt shall ultimately be subject to appr vaI by City Council. Climate Acti n and Resilience The City of 1 wa City has established goals and a Climate Action Plan to reduce community -wide carbon emi sions by 45%from 2010 levels by 2030 and achieve net -zero carbon emissions by 2050. Proposed Tax Increment Financing Policy I August In order to aid a City in meeting climate action and resilience goals, projects should cl nstrate lea demoership in sustainable development. / Examples of leader§ pin sustainable development for new construction p include: • Green Building Certification: Achieving LEED Silver or higher ce ication for new construction or ajor rehabilitation of commercial, mixed -us , or residential construction. • Alternative Green wilding Certification: Other sustaina a building ratings systems or standards that exce d the current energy code by a imum of 25%. • Energy Performance. Exceed adopted energy code erformance by 25%. • Electrification: Full bui ding electrification suppo ed by on -site renewable energy sufficient to offset 10% r more of total projec d annual energy use. • Embodied Carbon Reduc 'on: Whole Buildin if Cycle Assessment (WBLCA) that produces a 15% reduction 'n Global Warm' g Potential (GWP). TIF may also be used to help finance limate a ion, resilience, and carbon reduction projects in existing buildings. Such uses shall adv ce ttfe City's emission -reduction goals and be subject to specific impact and reporting requirem n as determined appropriate by the City. Projects and programs /nd go above n tyond or stack sustainability benefits are encouraged. Beneficiareiving T assince that support climate action and resilience efforts should view thetment s a long- rm commitment to sustainability. As such, the City will seek to verify the vand mpact of ag ed upon strategies at multiple points over the lifetime of the TIF inclut minimum, appr val of the Development Agreement and the annual certification proA ceptable methods f verification or reporting shall be subject to City approval, but may third-partyverificati n through a green building certification program, Energy Servicpany (ESCO), or Iicense green building professional and/or enrollment in the EnerPortfolio Manager in col boration with the City. The City will work in partnership with thect developer to ensure eac project has a tailored strategy that demonstrates leadershlimate action and resilience. Historic Preservatio TIF-supported proj cts located in historic districts should in\andngagin iversity and vibrancy of the district, while als preserving and enhancing the historic childing design should be contextual to th area and complement the historic charactstrict. This may be achieved through design onsiderations such as size, form, materials,ing pedestrian -level streetscape. Historicpr ervation projects maybe eligible for TIF fundinict-wide increment to incentiviz historic renovation projects that may not add enle value to rely solely on the subject operty's increment. Affor ble housing TIF p ojects in any urban renewal area with a residential component as part f the project must pJ de a minimum of 15% of the rental units as affordable to tenants at or b low 60% AMI (area man income) for a minimum 20-year compliance period, with a strong preference for permanent adabilityor longer -term commitments. If those housing units are for sale, 15% of the units must be targeted to households at or below 110% AMI. Current AMI limits are available on the City's Proposed Tax Increment Financing Policy I August 14,X24 website: https://www.icgov.o mmunitv-develo organ izations-receiving-city-fu rids. Developers ay be eligible to negotiate a fee -in -lieu of providing on site affor able housing, or to provide ffordable housing elsewhere in the community, subject tot City's sole discretion. In exchange for he increased density allowed in the Riverfront Cro ings (RFC) zone, any project with housing in t e district, regardless of whether it is a TIF prof t, must include 10% affordable housing. TIF polic in the RFC zone is that any financial gap du o affordable housing created by zoning requiremen s (10%) is the responsibility of the devel er and that affordable housing above the required 10% in FC could be TIF eligible if the financi analysis determines a gap. Economic Justice The City will not contra t with or provide /econo development incentives to any person or entity who has participa din wage theftf the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Faiards Act (FLSA) or any comparable state statute or local ordinance, hichgovernsof wages, workplace safety, child labor, or other labor laws. Misclassifi tionofemppendent contractors is a violation of the FLSA and is included in the definiti n of wage t Development Agreements for TI proj is shall include in the contract for the construction of the Minimum Improvements, bet a the Developer and the General Contractor, written provisions requiring compliance wi all state, federal, and local laws and regulations governing wages, child labor, workplace saf y, nd other labor laws, proof of which must be provided to City prior to the start of con, ion. dditionally, the General Contractor of a TIF-supported project will be required to pro de the eveloper and City, no later than the filing of an application for a building per it, a list o he names and addresses of each subcontractor and the dollar value of the work he subcontra for is expected to perform. Quality Jobs When a TIF project is b ed on the creation or etention of jobs, certain wage thresholds must be met to help ensure the Cit s financial participation ly serves to increase the average area wage. This policy does not requi a that every job associated ith a TIF project, such as those that might be created by the addi ion of a new retailer in a buildi or the construction jobs required to build a TIF project, meet thes standards. Rather, as a policy to ' centivize the addition or retention of high paying jobs to th local economy, a jobs -based TIF inc ntive would be structured using the thresholds of the State of I wa High Quality Jobs Program. Underwriting/and Application The followin criteria are designed to provide a consistent d transparent process for the review and analysiX of all applications for TIF assistance. a) ApplJcation: Developer must submit a complete applicatio . b) "B For" Test: TIF support tied directly to private projects ust meet a "but for" standard. That is,,each project must sufficiently demonstrate need for the ity's financial assistance, such that without it, the project would not occur. TIF assistance in the rm or rebates will be used as gap financing as determined through a gap analysis. The City may enlist third party support to review private project financials and evaluate the need for TIF. Use of a third party is not anticipated Proposed Tax Increment Financing Policy I August J 4;'2024 when,TIF is being utilized to rebate costs of public infrastructure, state and fed ally -supported afford le housing projects, and projects that su/Iand, non-property tax erating economic activity. c) Structurebf TIF financing: The City reserves the rietermine th ethod of TIF financing that is in th� best interests of the City. This includeles such the percentage of increment utfl zed, maximum rebate amount, and m ter . d) Developer equty: For private development projeclop equity must be equal to or greater than Cit�funding. TIF assistance shall not h amount of equity provided by the Developer. Equity is defined as cash, unleverain land, or prepaid costs attributable to the oject. e) Project based TIF: TIfor private developments mrate TIF increment sufficient to be self-supporting. Only i exceptional cases will thesider using district -wide increment. Proposed Tax Increment Financing Policy I August 14, Exhibit B City -University Project 1 Urban Renewal Area City -University Project 1 Urban enewal Area As Amended WA AVE ' 'W WASNiNGTON ST GRAND AVE MELROSE AVE n �p & O L m \ MYRTLE ODq, A N(011 ST E DOUGLASS ST O S lG � �C,R"Fv MK Y 1 W O Ar, EI.�RU►PERT RO RNEIT i Urban renewal area boundary ® 1969 Original Area 2001 Amended Area ® 2012 Amended Area ® 2016 Amended Area IZik.w o m sin � o00 Z O < 1 K O 8 O E COURT ST ST PAGE WALNUTST Y �G` u *UK CT x AVE K „'•F( dr a� M y dT u E 11 C0.YMnG CY fAK � car IAK � dr ' AVE 't AST •AK SANDUSKY OR Proposed Tax Increment Financing Policy I August 14, 2024 Exhibit C City of Iowa City FY2023-2028 Strategic Plan The full Strategic Pkn document is available online at www.icgov.org/StrategicPlan. VALUES • Racial Equity, Social11 stice Human Rights: We prioritize diversity, equity, and incl Sion, elimination of systemic arriers, and facilitating equal access for all. • Climate Action: We are lea rs in reducing greenhouse gas emissions and pt sustainable energy, transportation, land, d water practices. • Partnerships & Engagement: We a transparent and foster tru , involve the public in decision - making, and offer facilities and sery es that foster commun' connection. IMPACT AREAS & STRATEGIES Neighborhoods & Housing • Update City Comprehensive Plan and Zoning de to encourage compact neighborhoods with diverse housing types and land uses. • Partner in projects that serve as models or desir future development. • Create inviting and active outdoor sp es with uniq a and engaging recreation offerings. • Address the unique needs of vuln able populations nd low to moderate -income neighborhoods. Mobility • Expand the acces/omplete nience of environmentally iendly and regionally connected public transit. • Design and maintstreets that are comfortable nd safe for all users. • Grow and prioritipedestrian accommodations. Economy • Reinforce I a City as a premier community to locate and grow a siness. • Ensure a ropriate infrastructure is in place for future business gro th and development. • Cultiva a strong entrepreneurial and small businesses ecosystem wi a focus on creating new path ys to success for marginalized populations. • Buil Iowa City's image as the Greatest Small City for the Arts. • St engthen the Iowa River's role as a signature community amenity and to rismgenerator. :ty Well -Being Implement and expand innovative public safety models and facilities to improveloutcomes and relationships within the community. • Partner with non -profits to address the most emergent and foundational community safety and well-being needs. • Build community by fostering social connections and developing safe, accessible public spaces for gathering.