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Home My WebLink About2005-03-01 Resolution Prepared by: Ross Spitz, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240, (319)356-5149 RESOLUTION NO. 05-95 RESOLUTION SETTING A PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE 2005 ASPHALT RESURFAClNG PROJECT, DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR PUBLIC INSPECTION. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That a public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above-mentioned project is to be held on the 22n~ day of March, 2005, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than bNenty (20) days before said hearing. 3. That the copy of the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this 1st day of March ,20 05 MAYOR Approved by CITY'CLERK ' C~t~tor~ey's Office It was moved by gai] ey and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn pweng~res~.005asphalt.doc Prepared by: Ron Gaines, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240, (319)356-5145 RESOLUTION NO. 05-96 RESOLUTION SETTING A PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE CAMP CARDINAL ROAD EXTENSION PROJECT, DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR PUBLIC INSPECTION. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That a public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above-mentioned project is to be held on the 22nd day of March, 2005, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. That the City Clerk is hereby authorized and directed to publish notice of the public headng for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 3. That the copy of the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this ~.st day of Hat-ch ,20 05 MAYOR Approved by CIT~ CLERK - Cit~ Attorney's Office Pweng/r es/setph-Ccardinal-ext.doc Resolution No. 05-96 Page 2 It was moved by Bai le.,/ and seconded by Champi on the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn Prepared by: Daniel Scott, Project Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5144 RESOLUTION NO. 05-97 RESOLUTION AUTHORIZING MAILING AND PUBLICATION OF NOTICE OF INTENT TO COMMENCE PUBLIC IMPROVEMENT PROJECT TO CONSTRUCT THE LANDFILL CONSTRUCTION PROJECT AND TO ACQUIRE PROPERTY FOR THE PROJECT; AND SETTING DATE OF PUBLIC HEARING. WHEREAS, under the provisions of Sections 6B.2A and 6B.2B of the Iowa Code, a governmental body which proposes to acquire property under power of eminent domain for a public improvement project is required to give notice of intent to commence the project to all owners of agricultural property whose properties may be acquired in whole or in part for the project; and WHEREAS, the City Council of the City of Iowa City intends to commence a project to construct the Landfill Construction Project, which includes landfill cell construction, which project is to be known as the Landfill Construction Project; and WHEREAS, before the City of Iowa City can proceed with said project, the City Council must: a. Hold a public hearing, providing the opportunity for public input on the question of proceeding with the public improvement and on the acquisition or condemnation of property interests for the project; and b. Adopt a resolution declaring its intent to proceed with said project and authorizing the acquisition of property interests required for the project by negotiation or condemnation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. Documentation showing the proposed location of the Landfill Construction Project shall be placed on file in the office of the City Clerk and made available for public viewing. 2. A public hearing on the City's intent to proceed with the Landfill Construction Project and to acquire property rights therefore is to be held on the 5th day of April, 2005, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 3. The Department of Public Works and City Clerk are hereby authorized and directed to cause notice of the City's intent to proceed with said project and authorize the acquisition of property for said project to be mailed and published as required by law with said Notice of Intent to be in substantially the attached form; said publication to be published in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. Resolution No. 0.~-97 Page 2 Passed and approved this 1 ,st day of March ,20 FI5 Approved by CITY'CLERK City Attorney'd'Offlce It was moved by Bai 1 ey and seconded by C hampi on the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman × O'Donnell X Vanderhoef X Wilburn pweng/res/landfillconstdmprvres.doc 2/05 NOTICE OF INTENT TO ACQUIRE PROPERTY RIGHTS WHICH MAY BE NEEDED FOR THE LANDFILL CONSTRUCTION PROJECT TO: Mary C. Hebl 3899 Hebl Avenue SW Iowa City, IA 52240 Mary C., Michael and Mary Reta Hebl 3899 Hebl Avenue SW Iowa City, IA 52240 Chapter 6B of the Iowa Code requires a governmental body, which proposes to acquire property rights under power of eminent domain for a public improvement project, to give notice of the project to all agricultural property owners whose properties may be affected and to hold a public hearing. 1. DESCRIPTION OF THE PROJECT. NOTICE IS HEREBY GIVEN to the above-identified agricultural property owners that the City Council of the City of Iowa City will consider funding of the site-specific design for the Landfill Construction Project, making the final selectiOn of the route or site location, or acquiring or condemning property rights, if necessary, required for the project. Said project involves construction of future landfill cells adjacent to the current landfill property. 2. PRIVATE PROPERTY RIGHTS MAY BE ACQUIRED BY NEGOTIATION OR CONDEMNATION. If the above-described project is approved by the City Council, the City may need to acquire property rights for the project improvements. Property rights may include a temporary construction easement, a permanent easement, and/or a fee simple parcel (complete ownership). Upon review of the records of the Johnson County Auditor, it appears that properties or portions of properties owned by the above-identified persons may have to be acquired for the project by the methods described above. The City will attempt to purchase the required property by good faith negotiations. If negotiations are unsuccessful, the City will condemn those property rights which it determines are necessary for the project. The proposed location of the above-described public improvement is shown on documentation which is now on file in the office of the City Clerk and available for public viewing. 3. CITY PROCESS TO DECIDE TO PROCEED WITH THE PROJECT AND TO ACQUIRE PROPERTY RIGHTS; CITY COUNCIL ACTION REQUIRED TO FUND PROJECT. The City has provided funding in its budget for this project, as well as funding to acquire any property rights that may be needed for the project. City staff has analyzed the options for how to proceed with this project and has coordinated project planning with other appropriate agencies. The planning has reached the point where preliminary designs now indicate that certain property rights may need to be acquired. Any public comment will be considered in preparing the final designs, particularly as private property may be affected. 2 In making the decision to fund the site-specific design for the public improvement, to make the final selection of the route or site location, or to acquire or condemn property rights, if necessary, the City Council is required to hold a public hearing, giving persons interested in the proposed project the opportunity to present their views regarding the decision to fund the site-specific designs for the project, make the final selection of the route or site location, or to acquire or condemn, if necessary, property or an interest in property for the project. The public hearing will be held on the 5th day of April, 2005 in the Emma J. Harvat Hall, City Hall, 410 East Washington Street, Iowa City, Iowa, commencing at 7:00 p.m. or, if cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. In order to fund the site-specific design for the public improvement, to make the final selection of the route or site location, or to commence the acquisition or condemnation of property rights, if necessary, for the above-described project, City Council will be required to approve the project and authorize acquisition of private property rights for the project by Council resolution. The City Council is scheduled to consider adoption of a resolution authorizing acquisition of property rights for the above-described project following the public hearing. When an appraisal is required, if the project is approved by the City Council, an appraiser will determine the compensation to be paid for easements and/or property acquired in fee simple. The City will offer no less than the appraised value and will attempt to purchase only the needed property by good faith negotiations. If the City is unable to acquire properties needed for the project by negotiation, the City will acquire those property rights by condemnation. 4. CONTACT PERSON If you have any questions concerning the Landfill Construction Project please contact the following person: Daniel Scott, Project Engineer City of Iowa City 410 E. Washington Street Iowa City, IA 52240 (319) 356-5144 5. THIS NOTICE IS FOR INFORMATION ONLY AND IS NOT AN OFFER TO PURCHASE PROPERTY RIGHTS. The City Council of the City of Iowa City, Iowa has not yet determined to undertake the above-described project or to acquire property rights for the project. This Notice does not constitute an offer to purchase property rights. 6. STATEMENT OF RIGHTS. Just as the law grants certain entities the right to acquire private property, you as the owner of property have certain rights. You have the right to: a. Receive just compensation for the taking of property. (Iowa Const., Article I, Section 18) b. An offer to purchase which may not be less than the lowest appraisal of the fair market value of the property. (Iowa Code §8 6B.45, 6B54) c. Receive a copy of the appraisal, if an appraisal is required, upon which the acquiring agency's determination of just compensation is based not less than I0 days before being contacted by the acquiring agency's acquisition agent. ( Iowa Code §6B.45) d. When an appraisal is required, an opportunity to accompany at least one appraiser of the acquiring agency who appraises your property. (lowa Code 86B.54) e. Participate in good faith negotiations with the acquiring agency before the acquiring agency begins condemnation proceedings. (Iowa Code 86B.3(1)) f. If you cannot agree on a purchase price with the acquiring agency, a determination of just compensation by an impartial compensation commission and the right to appeal its award to district court. (Iowa Code 88 6B.4, 6B.7, and 6B. 18) g. A review by the compensation commission of the.necessity for the condemnation if your property is agricultural land being condemned for industry; (Iowa Code § 6}3.4^) h. Payment of the agreed upon purchase price, or if condemned, a deposit of the compensation commission award before you are required to surrender possession of the property. (Iowa Code 88 6B.25 and 6B.54(11)) i. Reimbursement for expenses incidental to transferring title to the acquiring agency. (Iowa Code 88 6B.33 and 6B.54(10)) j. Reimbursement of certain litigation expenses: (1) if the award of the compensation commissioners exceeds 110 percent of the acquiring agency's final offer before condemnation; and (2) if the award on appeal in court is more than the compensation commissioner's award. (Iowa Code 86B.33) k. At least 90 days written notice to vacate occupied property. (Iowa Code 8 6B.54(4)) 1. Relocation services and payments, if you are eligible to receive them, and the right to appeal your eligibility for and amount of payments. (Iowa Code §316.9) The rights set out in this Statement are not claimed to be a full and complete list or explanation of an owner's rights under the law. They are derived from Iowa Code Chapters 6A, 6B and 316, For a more thorough presentation of an owner's rights, you should refer directly to the Iowa Code or contact an attorney of your choice. Marian K. Karr City Clerk I0 WA CITY PROJEOT^R~ EN*R: ~~: DRAWN: BSM FILE #: ~N~INF..ERIN(~ ¢)rV~ON LANDFILL CONSTRUCTION PROJECT DATE: 2-2006 DRAWING: owners-plan SHEET: Prepared by: Kevin O'Malley, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5053 RESOLUTION NO. 05-98 RESOLUTION SETTING A PUBLIC HEARING FOR MARCH 22, 2005 ON AN ORDINANCE AMENDING TITLE 3 ENTITLED "CITY FINANCES, TAXATION & FEES," CHAPTER 4 ENTITLED "SCHEDULE OF FEES, RATES, CHARGES, BONDS, FINES AND PENALTIES," ARTICLE 5, ENTITLED, "SOLID WASTE DISPOSAL," OF THE CITY CODE TO INCREASE OR CHANGE RESIDENTIAL SOLID WASTE COLLECTION FEES. WHEREAS, pursuant to Chapter 384, Code of Iowa (2003), the City of Iowa City provides certain solid waste collection and disposal services; and WHEREAS, it is in the public interest to increase certain fees and charges associated with said solid waste collection and disposal services; and WHEREAS, the Iowa City City Council proposes to increase residential solid waste collection fees by approximately 3% for billing on or after July 1, 2005, to adequately finance operational costs; and WHEREAS, the City Code requires that notice and public hearing on proposed changes in rates for fees and charges for City utilities be provided to the public, pdor to enactment of said rates for fees and charges. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that: 1. A public hearing on an ordinance amending Title 3 entitled "City Finances, Taxation and Fees," Chapter 4 entitled "Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties," Article 5, entitled, "Solid Waste Disposal," of the City Code to increase Residential Solid Waste Collection fees, is to be held on the 22nd day of March, 2005, at 7:00 p.m., in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. Passed and approved this 1st day of t, lat-ch ., 2005. MAYOR~_~~ ATTEST: - ClTY'lDLERK City Attorney's Office finadm\res\solidwaste.doc Resolution No. 05-98 Page 2 It was moved by Ba'i '1 ey and seconded by Champ'i on the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliot[ Lehman O'Donnell Vanderhoef Wilburn Prepared by: Liz Osborne, PCD, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5246 RESOLUTION NO. 05-99 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO THE RELEASE OF LIENS REGARDING TWO MORTGAGES FOR THE PROPERTY LOCATED AT 1504 RIDGE STREET, IOWA CITY, IOWA. WHEREAS, on April 20, 1999, the owner executed a Mortgage for Housing Rehabilitation; and WHEREAS, on July 28, 1999, the owner executed another Mortgage for Housing Rehabilitation; and WHEREAS, the loans have been paid off; and WHEREAS, it is the City of Iowa City's responsibility to do a release of these liens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the attached Release of Liens for recordation, whereby the City does release the property located at 1504 Ridge Street, Iowa City, Iowa from two Mortgages recorded April 29, 1999, Book 2723, Page 271 through Page 275; and recorded August 12, 1999, Book 2805, page 231 through Page 235 of the Johnson County Recorder's Office. Passed and approved this 1st day of March ,20 05 MAYOR ATTEST: ~']'/~.,c~.~ 7~- 5/~.4~ ~'( ~"°~'~- CI'I-~'CLERK City Attorney's Office It was moved by Bai ] e.y and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn ppdrehab/res/1504ddge-rel.doc Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5246 RELEASE OF LIENS The City of Iowa City does hereby release the property at 1504 Ridge Street, iowa City, Iowa, and legally described as follows: An undivided one-fourth interest each in Lot 106, Kirkwood Heights Addition to Iowa City, Iowa. from an obligation of the owner, Earl J. Rogers, to the City of Iowa City represented by two Mortgages recorded April 29, 1999, Book 2723, Page 271 through Page 275; and recorded August 12, 1999, Book 2805, Page 231 through Page 235 of the Johnson County Recorder's Office. This obligation has been satisfied and the property is hereby being partially released from any liens or clouds upon title to the above property by reason of said prior recorded document. MAYOR Cl-l-t' CLERK City Attorney's Office STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this ! day of /l~ch~. , A.D. 20 o5 , before me, the undersigned, a Notary Public in and for said County, in said State, personally appeared Ernest W. Lehman and Madan K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. O~- .~'~ , adopted by the City Council on the ! day /)l~,~zc.~/-, 20 O _q. and that the s~i~t Ernest W. Lehman and Marian K. Karr as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. ppdrehab~rogers-1504ddge-rel.doc Notary Public in and for Johnson County, Iowa Prepared by: Liz Osborne, PCD, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5246 RESOLUTION NO. 05-100 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO THE RELEASE OF LIEN REGARDING A MORTGAGE FOR THE PROPERTY LOCATED AT 530 3rd AVENUE, IOWA CITY, IOWA. WHEREAS, on February 23, 2000, the owner executed Mortgage for Housing Rehabilitation; and WHEREAS, the term of the lien has been satisfied; and WHEREAS, it is the City of Iowa City's responsibility to release this lien. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the attached Release of Lien for recordation, whereby the City does release the property located at 530 3r~ Avenue, Iowa City, Iowa from a Mortgage recorded February 29, 2000, Book 2910, Page 204 through Page 210 of the Johnson County Recorder's Office. Passed and approved this 1st dayof March ., 20 05 MAYOR Approved by CIT~CLERK City Attorney's Office It was moved by Bai ] e,¥ and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell × Vanderhoef × Wilburn ppdrehab/res/530ThirdAve-rel.doc Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5246 RELEASE OF LIEN The City of Iowa City does hereby release the property at 530 3rd Avenue, Iowa City, Iowa, and legally described as follows: Lot five (5) in Block Nineteen (19) in East Iowa City, Johnson County, Iowa, according to the recorded plat thereof. from an obligation of the owner, Mary J. Ross, to the City of Iowa City represented by a Mortgage recorded February 29, 2000, Book 2910, Page 204 through Page 210 of the Johnson County Recorder's Office. This obligation has been satisfied and the property is hereby released from any liens or clouds upon title to the above property by reason of said prior recorded document. MAYOR CIT~CLERK City Attorney's Office STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this / day of tq/~c/-/- , A.D. 20 O~ , before me, the undersigned, a Notary Public in and for said County, in said State, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. 0,5-~/0~ , adopted by the City Council on the / day /lr1,~*¢~, 20 0 c, and that the said Ernest W. Lehman and Marian K. Karr as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. ppdrehab/530ThirdAve-reLdoc Notary Public in and for Johnson County, Iowa jo.,.~"-I SONDRAE FORT I ~ ~-] Commission Number 159791 ! r..~ '| My Commission Expires ] I "]'~x- I ~ - ?-o~, I Prepared by: Liz Osborne, PCD, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5246 RESOLUTION NO. 05-101 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO THE RELEASE OF LIENS REGARDING A REHABILITATION AGREEMENT, A MORTGAGE AND A PROMISSORY NOTE FOR THE PROPERTY LOCATED AT 1603 JACKSON AVENUE, IOWA CITY, IOWA. WHEREAS, on July 15, 1994, the owner executed a RehabiLitation Agreement, a Mortgage and a Promissory Note for Housing Rehabilitation; and WHEREAS, the terms of the liens have been satisfied; and WHEREAS, it is the City of Iowa City's responsibility to release this lien. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the attached Release of Liens for recordation, whereby the City does release the property located at 1603 Jackson Avenue, Iowa City, Iowa from a Rehabilitation Agreement, a Mortgage and a Promissory Note, recorded July 22, 1994, Book 1785, Page 257 through Page 260; and Book 1785, Page 261 through Page 265; and Book 1785, Page 266 through Page 268 of the Johnson County Recorder's Office. Passed and approved this 1st dayof March ,20 il5 MAYOR Appr°~~L.~ ATTEST: ~ x~z''''. ?/~,~f.~ Cl'r~ CLERK City Attorney's Office It was moved by Ra i l~y and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell × Vanderhoef X Wilburn ppdrehab/res/1603jackson-rel.doc Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5246 RELEASE OF LIENS The City of Iowa City does hereby release the property at 1603 Jackson Avenue, Iowa City, Iowa, and legally described as follows: The East One Half of Lot One, Block Fourteen of Rundell, Johnson County, Iowa. from an obligation of the owner, Ruth A. Manna, to the City of Iowa City represented by a Rehabilitation Agreement, a Mortgage and a Promissory Note recorded July 22, 1994, Book 1785, Page 257 through Page 260; and Book 1785, Page 261 through Page 265; and Book 1785, Page 266 through Page 268 of the Johnson County Recorder's Office. This obligation has been satisfied and the property is hereby released from any liens or clouds upon title to the above property by reason of said prior recorded document. Approved by CITY'~LERK City Attorney's Office STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this / day of /V~.~cCf- , A.D. 20 0._5 , before me, the undersigned, a Notary Public in and for said County, in said State, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. o.~-I~/ , adopted by the City Council on the / day /'VIAled, 20 o .~ and that the said Ernest W. Lehman and Marian K. Karr as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. ppdrehab/1603jackson-rel.doc Notary Public in and for Johnson County, Iowa ~4~.J 8ONDRAE FORT J ~ ~.lCommission Number 159791I J'..~.-"l My Commission Expires J Prepared by: John Yapp, Assoc. Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5247 (SUB04-00015) RESOLUTION NO. 05-102 RESOLUTION APPROVING THE PRELIMINARY AND FINAL PLAT OF VILLAGE GREEN PART XX, IOWA CITY, IOWA. WHEREAS, the owner, Third Street Partners, L.L.C., filed with the City Clerk the preliminary and final plat of Village Green XX, Iowa City, Iowa, Johnson County, Iowa; and WHEREAS, said subdivision is located on the following-described real estate in Iowa City, Johnson County, Iowa, to wit: Commencing at the Northeast corner of the Northeast Quarter of Section 24, Township 79 North, Range 6 West, of the Fifth Principal Meridian; Thence S89°53'53"W, along the North line of said Northeast Quarter, 930.78 feet, to the Northwest corner of Outlot "B" of Village Green - Part XVIII, in accordance with the Plat thereof recorded in Book 43, at Page 153, of the records of the Johnson County Recorder's Office; Thence S77°05'19"E, along the Northeasterly line of said Outlot "B", 109.20 feet; Thence S56048'24"E, along said Northeasterly line, 107.12 feet, to the Southeast corner thereof, and the Northwest corner of Village Green-- Part XIX, in accordance with the Plat thereof recorded in Book 46, at Page 300, of the records of the Johnson County Recorder's Office; Thence S70°19'00"W, along the Westerly line of said Village Green - Part XIX, 139.50 feet; Thence S32°04'14"W, along said Westerly line, 85.00 feet; Thence S15°23'06"W, along said Westerly line, 217.09; Thence S10°04'01"W, elong said Westerly line, 60.00 feet; Thence Northwesterly, 223.00 feet, along a 525.38 foot radius curve, concave Northeasterly, whose 221.33 foot chord bears N67°46'24"W; Thence Southwesterly, 31.15 feet, along a 20.00 foot radius curve, concave Southeasterly, whose 28.10 foot chord bears S79°46'05"W; Thence N54°51'02"W, 55.00 feet; Thence N36°02'53"E, 6.41 feet; Thence Northwesterly, 28.82 feet, along a 20.00 foot radius curve, concave Southwesterly, whose 26.39 foot chord bears N04°19'44"W; Thence Northwesterly, 189.83 feet, along a 525.38 foot radius curve, concave Northeasterly, whose 188.80 foot chord bears N35°15'13"W; Thence Northwesterly, 29.11 feet, along a 20.00 foot radius curve, concave Southwesterly, whose 26.61 foot chord bears N66°35'50"W; Thence S72°24'01"W, 4.64 feet; Thence N16°54'29"W, 50.00 feet; Thence Northeasterly, 30.90 feet, along a 20.00 foot radius curve, concave Northwesterly, whose 27.92 foot chord bears N28°49'55"E; Thence Northwesterly, 87.69 feet, along a 525.38 foot radius curve, concave Northeasterly, whose 87.59 foot chord bears N10°38'47"W; Thence N05°51'54"W, 6.11 feet, to a point on the said North line of the Northeast Quarter of Section 24; Thence S89°57'00"W, along said North line, 122.06 feet, to the Southwest corner of Outlot "B", of Village Green - Part XV, in accordance with the Plat thereof recorded in Book 38, at Page 97, of the records of the Johnson County Recorder's Office; Thence N00°03'00"W, along the Westerly line of said Outlot "B", 84.83 feet; Thence N08°58'49"E, along said Westerly line, 136.86 feet; Thence N39°29'01"E, along said Westerly line, 112.85 feet, to the Northwest corner thereof; Thence Southeasterly, along the Northerly line of said Village Green - Part XV, and the Northerly line of Outlot "B" of Village Green - Part XIV, in accordance with the Plat thereof recorded in Book 37, at Page 41, of the records of the Johnson County Recorder's Office, 519.73 feet, and a 746.66 foot radius curve, concave Northeasterly, whose 509.31 foot chord bears S70°27'27"E; Thence Northeasterly, along the Northerly line of said Outlot "B", 23.74 feet, and a 760.00 foot radius curve, concave Northwesterly, whose 23.74 foot chord bears N88°42'22"E, to the Northwest corner of Lot 49 of Village Green - Part XVIII, in accordance with the Plat thereof recorded in Book 43, at Page 153, of the records of the Johnson County Recorder's Office; Thence S02°11'20"E, along the Westerly line of said Lot 49, a distance of 136.52 feet, to the said POINT OF BEGINNING. Resolution No. 05-102 Page 2 Said Tract of land contains 7.01 acres, and is subject to easements and restrictions of record. WHEREAS, the Department of Planning and Community Development and the Public Works Department examined the proposed preliminary plat and final plat and subdivision, and recommended approval; and WHEREAS, the Planning and Zoning Commission examined the preliminary plat and final plat and subdivision and recommended that said preliminary plat and final plat and subdivision be accepted and approved; and WHEREAS, a dedication has been made to the public, and the subdivision has been made with the free consent and in accordance with the desires of the owners and proprietors; and WHEREAS, said preliminary plat and final plat and subdivision are found to conform with Chapter 354, Code of Iowa (2003) and all other state and local requirements. NOW, THEREFORE, Be IT RESOLVED BY The CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The said final plat and subdivision located on the above-described real estate be and the same are hereby approved. 2. The City accepts the dedication of the streets and easements as provided by law and specifically sets aside portions of the dedicated land, namely streets, as not being open for public access at the time of recording for public safety reasons. 3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed, upon approval by the City Attorney, to execute all legal documents relating to said subdivision, and to certify a copy of this resolution, which shall be affixed to the final plat after passage and approval by law. The City Clerk shall record the legal documents and the plat at the office of the County Recorder of Johnson County, Iowa at the expense of the owner/subdivider. Passed and approved this 1st, dayof Flarch ,2005 Approved by cl-r~ CLERK - ' City Attorney's Office It was moved by Vanderhoef and seconded by ~l'i ] burn the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X __ Bailey X __ Champion X __ Elliott X __ Lehman X __ O'Donnell X __ Vanderhoef X __ Wilburn Ppdadmin\ordWillg reenXXapprov.doc STAFF REPORT To: Planning & Zoning Commission Prepared by: John Yapp Item: REZ04-00014/SUB04-00015 Date: June 3, 2004 Village Green Part XX GENERAL INFORMATION: Applican[: Third Street Partners, LLC PO Box 209 Iowa City, IA 52244 Applicant's 'Attorney: Mark Danielson 222 S. Linn Street Iowa City, IA 52240 Applicant's Engineer: MMS Consultants Inc. 1917 S. Gilbert St. Iowa City, IA 52240 351-8282 Requested Action: Amend an approved preliminary plat and OPDH plan; Final plat approval Purpose: A two-lot subdivision and planned development including 19 dwelling units. Location: North side of Wintergreen Drive west of South Jamie Lane Size: 5.84 acres Existing Land Use and Zoning: Vacant; OPDH-5 Surrounding Land Use and Zoning: North: Residential; OPDH-5 South: Vacant; OPDH-5 East: Residential; OPDH-5 West: Vacant; OPDH-5 Comprehensive Plan: Residential; 2-8 dwellings per acre File Date: May 13, 2004 45-Day Limitation Period: June 27, 2004 60-Day Limitation Period: July 12, 2004 BACKGROUND INFORMATION: The applicant, Third Street Partners, is requesting an amended preliminary plat of Village Green Part XX, to allow a third garage stall on 7 of the 19 dwelling units. The existing preliminary plat for Village Green Part XX was approved in December, 2001. The applicant is also requesting a final plat of Village Green Part XX, a two-lot subdivision. 2 ANALYSIS: OPDH Design The OPDH zone is established to permit flexibility in the use and design of structures and land in situations where a conventional development may be inapprepriate, where modifications of requirements of the underlyin,g zone are not contrary to the intent and purpose of the zoning ordinance, inconsistent with the Comprehensive Plan, or harmful to the neighborhood in which they are located. This portion of the Village Green Development was approved as a planned development to allow clustered housing units all with frontage on a pond (which also collects and conveys storm water). The approved plan contains 19 dwelling units in clustere of two and three-unit structures, on a 5.84-acre property. Each unit includes a two-car garage. The applicant has requested an amendment to the approved plan to allow an optional third garage stall to be constructed with up to 7 of the 19 dwelling units. The preposed location of the third stall is shown on the plan - a note is included on the plat that this third stall will be set back at least two feet from the other stalls; this is to provide some articulation along the fa(;;ade. In recent proposed developments, the size and location of the garege in relation to the residential portion of the structure has been the subject of much discussion recently. However, unlike blocks of narrow-lot single-family lots, the Village Green housing units have longer areas of green space between structures. For example the median inside the Lancester Place loop provides an approximate % acre green space; and there is a 140-foot green space and view of the pond between structures west of the Lancester Place / Wintergreen Drive intersection. These green spaces help mitigate the effect of clustered structures and garages. Staff finds the addition of a third garage stall on 7 of the 19 dwellings in the already-approved Village Green Part XX plan to be a minimal change. Preliminary and Final Plat The applicant has submitted a preliminary and final plat of Village Green Part XX, a 2-lot, 5.84- acre subdivision. The preliminary plat was approved in 2001, but has expired due to not being acted on for a 24-month period. The final plat appears to be consistent with the preliminary plat. Open space: the open space requirement have been satisfied with previous parts of Village Green and Village Green South. No new public open space is proposed, and no fees are required. Storm water management: Storm water management requirements were satisfied with previous parts of Village Green. The proposed pond is not part of a City-required storm water management system. However, the proposed pond will improve drainage in the area by providing an additional area for water to aerate and sediments to settle. Lancester Place: With recent subdivisions, staff has recommended that 22-foot wide streets be posted as No Parking. Lancester Place is a 22-foot wide loop street, a portion of which is in Village Green Part XX. The legal papers should state this street will be posted as No Parking. Utilities: A water main tap-on fee of $395/acre is required. A sanitary sewer tap-on fee of $1,698.18/acre is required. These fees go toward off-setting the cost to the City to provide water and sewer service to this and surrounding developments. These fees have already been paid for the portion of the development north of the section line (The land north of the section line was previously part of Village Green, for which fees have been paid). U:\subdivisions\village green XX,DOC 3 Legal Papers and Construction Plans: Legal papers and construction plans have been submitted, and are under review. STAFF RECOMMENDATION: Staff recommends that REZ04-00014 an amended Planned Development Housing Plan of Village Green Part XX, a 5.84 acre, two-lot, 19 dwelling unit plan located on the north side of Wintergreen Drive west of South Jamie Lane, be approved. Staff recommends that SUB04-00015 a preliminary and final plat of Village Green Part XX a 5.84 acre, two-lot residential subdivision, be approved, subject to approval of legal papers and construction plans prior to Council consideration. Approved by: ~ ~ Robed Miklo, Senior Planner, Department of Planning and Community Development ATTACHMENTS: 1. Location Map 2. Preliminary Plat and OPDH Plan 3. Final Plat \\citynt~jyapp$~subdivisions\village green X)(.DOC ~ ~ OX ~D PL o ~fiZ04-0~14 S~E LO~TION: Wintor~roon Drivo 8~B04-0~15 Preliminary Plat Village Green, Part XX, Iowa City, Iowa Preliminary OPDH--5 Plan for Lots 50--51 and Sensitive Areas Site Plan .~,~.~. WELLINGTON CONDOMINIUMS II I · Final Plat VILLAGE GREEN PART XX IOWA CITY, IOWA / ~ ,~ ~ ~ ~ ~ / ,, :.,' -/ , ~ 1~ '~--~ ~:. '~::::::___ . .-,,..' .......... .,. ,' ,.,,~,~ ,' /D Prepared by: Steven J. Rackis, ICHA Administrator 410 E. Washington St., Iowa City, IA 52240; 319-887-6065 . , RESOLUTION NO. 05-103 RESOLUTION APPROVING THE IOWA CITY HOUSING AUTHORITY'S STREAMLINED 5-YEAR PLAN FOR FISCAL YEARS 2005 - 2009 AND STREAMLINED ANNUAL PLAN FOR FISCAL YEAR 2005. WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority and the Department of Housing and Urban Development requires adoption of an updated Streamlined 5-Year Plan for Fiscal Years 2005 - 2009 and Streamlined Annual Plan for Fiscal Year 2005; and WHEREAS, the Streamlined 5-Year Plan for Fiscal Years 2005 - 2009 and the Streamlined Annual Plan for Fiscal Year 2005 have been updated to reflect details about the agency's immediate and ongoing operations, program participants, programs and services, and the agency's strategy for handling operational concerns, residents' concerns and needs, programs and services; and, WHEREAS, the Iowa City Housing Authority met the Quality Housing and Work Responsibility Act of 1998 (QHWRA) requirement that the plans be made available to the public 45 days in advance of this public heating. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The Iowa City Housing Authority's Streamlined 5-year Plan for Fiscal Years 2005 - 2009 and Streamlined Annual Plan for Fiscal Year 2005 are approved. 2. The City Clerk is hereby authorized and directed to certify appropriate copies of this resolution together with any necessary certifications as may be required by the Department of Housing and Urban Development. Passed and approved this 1 s t day of Fla ,20 05 Approved by City Attorney's Office It was moved by Ba J le¥ and seconded by Yanderhoef the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliot X Lehman X O'Donnell X Vanderhoef X Wilbum ~ ~ Phone: (3~) UTHr'IRITY 410 E. Washington S/red · Io~va City · Io~va · 52240.1826 DATE: 02/18/05 TO: City Council FROM: Steven J. Rackis, Administrator, Iowa City Housing Authority ~ ~- ~, RE: Summary of The Iowa City Housing Authority Streamlined 5-Year Plan for Fiscal Years 2005 - 2009 and the Annual Plan for Fiscal Year 2005 The Quality Housing and Work Responsibility Act of 1998 (QWWRA) r~quires the Iowa City Authority (ICHA) to update Agency Plans. The Streamlined 5-Year Plan for Fiscal Years 2005 - 2009 Plan and Streamlined Annual Plan for Fiscal Year 2005 provides details about the agency's immediate and ongoing operations, program participants, programs ahd services, and the agency's strategy for handling operational concerns, residents' concerns, programs and services for the next 5 fiscal years. Copies of the plans are available in print inl the ICHA Iowa City Housing Authority office and the intemet via the e-documents section of the ICHA website: www.icgov.org/icha One major change in agency operations of note is the Housing Authority!s initiative to expand partnerships with Law Enforcement Officials. The Housing Authority partiCipated in the 5 week MATS 2005 training program for all law enforcement personnel in Johnson County, Iowa. Participants in the training represent: The City of Iowa City, The City of Goralville, The City of North Liberty, University Heights, and the Johnson County Sheriff's department. SUMMARY: 1. Funding: The United States Congress allocates funding and passesI laws for all housing programs. The Federal Department of Housing and Urban Development's (HUD) role in the locally administered housing programs is to allocate money to the local housing authorities I . and to develop policy, regulations, and other guidance that interprets h0us~ng legislation. The Actual Funds Received FY04 Year End For Housing Assistance: Housing Choice Voucher Program ~ Annual Contributions Contract (ACC) = $6,568,147 Public Housing Program ~ Rental income = $219,490 > Capital Funds Program (CFP) = ~158,063 ~ Performance Funding System Operating Subsidy = ~167,759 > Resident Opportunities Self-Sufficiency Grant = $55,641 Total Housing Authority Funds Received FY04 = $7,169,100 SRackis Page 1 2/18/2005 · Grant Funds Awarded FY05 & CY05 Public Housing ~' Capital Funds Program (CAP) = ;188,422 >~ Operating Subsidy = ;207,763 > Resident Opportunities Self-Sufficiency Grant = ;83,333 Housing Choice Voucher Renewal ~ Annual Contributions Contract = ;6,372,592 > Family Self-Sufficiency Coordinator (FSS) = ;63,000 ~ Homeownership Coordinator = ;51,240 Total Housing Authority Grant Funds FY04 = ;6,966,276 PILOT (Payment In Lieu Of Taxes) FY03 = ;23,501 2. Analysis of Public Housing Units: Public housing was established to provide affordable, decent and sa fe rental housing for eligible low-income families, the elderly, and persons with disabilities The US Department of Housing and Urban Development (HUD) distributes federal subsi, ties to the Iowa City Housing Authority (ICHA), which owns and manages the housing. The City of Iowa City owns eighty-eight (87) public housing units; tl: e ICHA serves as the landlord and rents these units to eligible tenants. They are scattered thrcughout Iowa City and were constructed to conform and blend into the existing neighborhood ~ rchitecture. Unit type Number of units: Single Family 38 Duplex/Zero Lot 37 Multi-Family 8 Row House 4 Public Housing Economic Impact for the City of Iowa City The 87 Public Housing units represent .005% of the total number of rental units in the City of Iowa City. / i >' The total rental income from our Public Housing properties = $~19,490. > The Housing Authority Payment in Lieu of Taxes (PILOT) for the Public Housing properties in FY04 was $23,501. / > In FY04, the Housing Authority paid approximately $300,000I° private sector Iowa City contractors for the capital improvement, general maintenance, and repair of the Public Housing properties. SRackis Page 2 2/18/2005 3. Analysis of Housing Choice Voucher (HCV) Units: The Housing Choice Voucher Program (HCV) is funded by the U.S. Department Housing and Urban Development (HUD) with the intent of increasing affordabl~ housing choices for low-income families, the elderly, and persons with disabilities. Familie~ with a HCV voucher choose and lease safe, decent, and affordable privately owned rental ho~ tsing. All participants must be income eligible and have no incidents of violent or drug relate, criminal activity for the past five (5) years. Number of available vouchers = 1,213. HCV Economic Impact for the City of Iowa City: There are 15,873 rental units in the City of Iowa City. $20 of our Housing Choice Voucher Vouchers have City of Iow. City addresses. The 820 vouchers represent 5% of the total number of rental un~ ~s in the City of Iowa City. ~ For FY04, the Housing Choice Voucher program paid approxi ~ately $3,869,694 of Housing Assistance Payments to landlords/owners of rental pre ~erties in the City of Iowa City. ~ An additional $1,905,969 was paid to landlord/owners of re tal properties in 16 additional communities in our jurisdiction. 4. Promote Self-Sufficiency: The Family Self-Sufficiency (FSS) Program promotes self-sufficiency ~ nd asset development by providing supportive services to participants to increase their empl oyability, to increase the number of employed participants, and encourage an increase ir savings through an escrow savings program. For FY04, 160 households participated in the Family Self-Sufficiencr (FSS) program. Of these, approximately 80% have escrow accounts with an average mont~ .y deposit of $200.00 and an average balance of $2,000.00. Ninety (90) graduates since the pr )gram inception (July 1999) reduces our original HUD mandated number of FSS graduates 83) to zero. Our FSS program enters FY 2005 as a completely voluntary program. Of our te al graduates, 35 have moved to homeownership and most of the remaining 55 graduates hay reached full rent or left housing permanently. For Fiscal Year 2004: · 160 households are currently participating in the Family Self-Su ~ciency program. · Total Mandated Public Housing slots filled = 33 (1£ 0%). · Total Mandated Public Housing slots graduated = 33 (1£ 0%). · Current number of Public Housing Tenants enrolled = 31. · Total Mandated HCV slots filled = 50 (1£0%). · Total Mandated HCV slots graduated = 50 (lC 0%). · Current number of HCV Tenants enrolled = 125. · 100% of our mandatory and voluntary slots are filled. · 60% have escrow accounts established. SRackis Page 3 2/18/2005 · Average monthly escrow deposit = $200. · Average escrow balance = $2,00( · Of our total FSS graduates, 39 have moved to homeownershi' (28 independent of ICHA programs; 7 through ICHA programs). · 9 clients received bikes through the ROSS Bike-to-Work progra · 35 families received cars from the Goodwill Industries of Souti~east Iowa's Wheels- to-Work program. Resident Opportunity Self-Sufficiency (ROSS): Resident Opportuaity Self-Sufficiency (ROSS) is a grant-funded program that provides participants with resot rces to improve their employment skills through job coaching and educational opportunitk s. The program also links clients to resources to meet such needs as child care, transportati~ ~n, education and job training opportunities, employment, money management and other simi ar needs necessary to achieve economic independence and self-sufficiency. · The ROSS Program admits and graduates residents on an ont [oing basis, with 163 referrals since Jutte 2001. This number far surpasses the oJ iginal grant goal of serving 130 residents over three years. · The original competitive grant awarded to the ICHA was $150,000 over 3-years (March 2001 - March 2004). This grant, in partnership with Goodwill Industries of Southeast Iowa, purchased the services of an Employment Speci ~list. · In March 2004, the ICHA again secured a competitive grm~t for $250,000 over the next 3-years (2004 - 2007). This grant will maiutai~ the efforts of the Employment Specialist and will provide additional supportive service to aid clients in seeking and maintaining employment. For exampl ~, childcare start-up fees, car repairs, short-term education/training, licensare, etc. Through public/private partnerships, the grant will support semimtrs and workshops, such as FDIC Money Smart, homeownership preparation elm sses, etc. 5. Promote Homeownership Options: HCV Homeownership Program: The HCV Homeownership program permits eligible participants in the HCV Program, including participants with portable w )uchers, the option of purchasing a home with their HCV assistance rather than renting. The h )meownership option is limited to three percent (3%) of the total HCV program budgeted by the ICHA in any fiscal year, excluding disabled and elderly families. Eligible participants for the HCV Homeownership Program must have completed at minimum a one-year lease term with HCV rental assistance. They must not owe the ICHA or any other ICHA an outstanding debt and must meet the eligibility criteri ~ set forth herein. HCV homeownership assistance payments may be used to purchase he following type of housing within Johnson County: new or existing single-family nits, condominiums, cooperatives, lofts, and, or manufactured units. > Twelve (12) HCV Vouchers were used to purchase homes sinc{ lanuary 2003. SRackis Page 4 2/18/2005 Tenant-to-Ownership Program (TOP): The Tenant-to-Ownership F rogram is funded by Housing and Urban Development (HUD). The Tenant to Ownershi> Program offers an opportunity for low to very low-income families to purchase a single-fa mily house owned by the ICHA. > Nineteen (19) homes sold and three (3) resold since May 199: As of February 4, 2005, One (1) sale is pending. Affordable Dream Home Ownership Program (ADHOP): The Affi 'dable Dream Home Ownership Program operated, managed and funded solely by the ICHA. It offers an opportunity for income eligible families to purchase newly constructed ,r newer homes. > Seven (7) homes (one a "Universal Design" home) built and sol . since May 1999. Homeownership Totals: The combined efforts of the ICHA ;;elf-Sufficiency and Homeownership programs~ May 1998 - Present, resulted in a total of 6 participant families living in their own home. 6. ICHA Participant Characteristics. Definition of Participant (particip~ ~t family): A person or family that has been admitted to the Iowa City Housing Author ty's HCV or Public Housing program and is currently assisted in the program. ~' Family Characteristics (1,314 Total Families as of 9/30/2004): a. Elderly, Disabled and Working Families = 91% b. Female Head of HoUsehold = 72% c. White Head of HouSehold = 69% d. Disabled or Elderly Families = 56% e. All Families with Minor Children = 54% L Working Families = 51% g. African American Head of Household = 29% h. Disabled and/or Elderly and Working = 15% > Income Sources (All Family Members over the age of 18): a. Employment = 29% * b. Social Security (SS) = 22% c. Supplemental Security Income (SSI) = 17% d. Family Investment Program (FIP)(Welfare) = 9% e. Other Non-Wage Sources = 7% L Child Support = 5% g. Pensions = 3% h. Income from self-employment = 1% i. Unemployment Insurance (UI) = 1% SRackis Page 5 2/18/2005 7. Comparative Analysis of Combined Housing Programs by Jurisdiclion for December 1, 2002 through December 31, 2002 (United States, State of Iowa, Iowa City Housing Authority [See Attachment C]. ICHA Participants: · Are more likely to have incomes <30% of the jurisdiction's Me([ian Income than the United States and State of Iowa. · Have Average Annual Incomes below the United States, but above th,: State of Iowa. · Are more likely to report wages as a Source of Income than the United States and State of Iowa. · Are less likely to report Welfare as a Source of Income than the United States and State of Iowa. 8. When the ICHA Participants were admitted to the Housing Authorit programs and where did they come from? Housing Choice Voucher (HCV) program: · 15% of HCV participants were admitted prior to 1998. · 23% of HCV particiPants were admitted from 1998 - 2000. · 70% of HCV participants were admitted prior to January 1, ~03. · 88% of HCV participants lived in Iowa prior to admission. · 6% lived in Illinois prior to admission. 6% lived in all other States prior to admission. Public Housing Program: · 27% of Public Housing tenants were admitted prior to 1998. · 22% of Public Housing tenants were admitted from 1998 - 2000. 76% of Public Housing tenants were admitted prior to Januar 1, 2003. · 77% of Public HoUsing tenants lived in Iowa prior to admissio 6% lived in Illinois prior to admission. SRackis Page 6 2/18/2005 9. Employers with 6 or more ICHA participants on their payroll: University of Iowa 86 Goodwill Industries of SE Iowa 59 NCS 29 Iowa City Community School District 20 Staff Management 19 Hy-Vee 16 Access Direct 13 DHS 12 MCI 11 System's Unlimited 11 Wal-Mart 11 Cambridge Tempositions Inc 9 McDonald's Restaurant 9 Mercy Hospital 9 Iowa City Rehabilitation & Health Care Center 8 Kelly Services 8 Reach For Your Potential 8 Westaff 8 Ch Robinson Company 7 Employment Systems 7 HACAP 7 Sheraton Hotel 7 City of Iowa City 6 Lone Star Steakhouse & Saloon 6 Office Detailers 6 SRackis Page 7 2/18/2005 10. Housing Choice Voucher Contracts by Owner [10 or more vouchers' as of September 30, 2004: Owner # of # of Locat on (Primary Vouchers Available Address) Units Town & Campus Apartments 60 100 Arthur Street, Iowa City Greater Iowa City Housing Fellowship 51 63 Iowa £ ity & Coralville Coralville Housing Associates 48 102 Coralv ille Villa Garden Apartments 29 44 Cross~ ark Avenue, Iowa city KSA Investments 28 100 Keoku c Street, Iowa City Coronet Apartments' 26 34 Broad] ray Street, Iowa City Concord Terrace 22 30 Shanm ,n Drive, Iowa City Penn Oaks Condominiums 21 38 North i ~iberty Pennigroth Apartments 21 38 Wayne Avenue/Dubuque Street, Iowa City Grandview Court Apartments 19 92 Grand~ 'iew Court, Iowa City Regency Heights (1010 Building) 18 37 Scott 1~ ark Drive, Iowa City JAI RAM 18 28 Coralv lle Lexington Place Apartments 17 30 Shann( n Drive, Iowa City Eastern Iowa Properties Ltd. 17 40 Coralv lle, Iowa City Regency Heights (1060 Building) 17 38 Scott P ark Drive, Iowa City Cedarwood Apartments 16 64 Broad~ ~ay Street, Iowa City Liberty Housing Co. LLC. 14 30 North ] fiberty Lakeside Manor 14 400 HWY ~ East, Iowa City Hawkeye Community Action Program 14 18 Broad~ ~ay Street, Iowa City D & S Enterprises 14 74 Iowa City & Coralville Saratoga Springs 12 12 Clearw ~ter Court, Iowa City Terrace Apartments 12 24 Coralv: lie Citizen Building Ltd. Partnership 11 18 E Wasl tington Street, Iowa City Lynch, Lawrence 11 21 Iowa City, Coralville, North Liberty MECCA 11 12 Southg ate Avenue, Iowa Systems Unlimited, Inc. 11 23 Iowa C ty SRackis Page 8 2/18/2005 11. Housing Needs of Families on the ICHA's Waitin~ Lists 9/30/2004 Waiting list type: (select one) [] Section 8 tenant.based assistance [] Public Housing [] Combined Section 8 and Public Housing [] Public Housing Site-Based or sub-jurisdictional waiting list (¢ ptional) If used, identify which development/sub jurisdiction: # of families % of total families Annual Turnover Waiting list total 3,109 I Extremely low income 2252 72% <=30% AMI Very Iow income 56 2% (>30% but <=50% AMI) Low income 258 9% (>50% but <80% AMI} Families with children 2118 68% Elderly families 147 5 % Families with 960 31% Disabilities Race/ethnicity-Black 1845 59% Race/ethnicity-White 1148 37% Race/ethnicity-Asian 32 1% Race/ethnicity-All 32 1% Other Characteristics by Bedroom Size 1BR 1,131 36% 2 BR 1,125 36% 3 BR 694 22% 4 BR 155 5% 5 BR 5+ BR 30 1% Is the waiting list closed (select one)? [] No [] Yes If yes: How long has it been closed (# of months)? Does the ICHA expect to reopen the list in the ICHA Plan ye: tr? [] No [] Yes Does the ICHA permit specific categories of families onto th~', waiting list, even if generally closed? [--] No [] Yes SRackis Page 9 2/18/2005 12. More detailed analysis of applicants on the ICHA HCV Waiting List. Definition of Applicant (applicant family): A person or family that has applied for ~ dmission to the Iowa Housing Authority's Housing Choice Voucher (HCV) or Public Housi~ tg program but is not yet a participant in the program. a. When did families make applications to the ICHA HCV w fiting lists and where do they reside? From 1998 - June 30, 2004, the ICHA processed/receive, a total of 5,872 applications for HCV assistance. · As of June 30, 2004, the total active applicant pool = 1,6~ 7. · 72% of the total applicants resided in Iowa at the time of application. · 24% of the total applicants resided in Illinois at the time (,f application. · 3% of the total applicants resided in All Other States at tk time of application. · 66% of the total Illinois applicants applied after Janm :y 1, 2003. · 39% of the active applicants applied January- June 2004 · 59% of the active applicants applied in 2003. · 1% of the active applicants applied in 2002. · 54% of the :active applicants live in Iowa. · 41% of the active applicants live in Illinois. · 5% of the active applicants live in All Other States. b. Why are 4,205 applicants inactive? · 1,057 (25%) did not respond to the ICHA's January 20, 004, wait list update letter. · 1,049 (25%) are either housed or in the process ofbeingl oused. · 947 (23%) did not respond or did not return information o the ICHA (i.e., the family did not maintain a correct address with the ICHA) · 721 (17%) were ineligible for assistance (primarily for v olent or drug related criminal activity within the last 5 years). · 306 (32%) their voucher expired (vouchers are issued f(,r 120 days and may be extended as a reasonable accommodation). · 125 (3%) declined assistance. SRackis Page 10 2/18/2005 Prepared by: Steven J. Rackis, ICHA Administrator 410 E. Washington St., Iowa City, IA 52240; 319-887-6065 RESOLUTION NO. 05-104 ~'~' RESOLUTION TO ADOPT THE IOWA CITY HOUSING AUTHORITY'S AMENDED HOUSING CHOICE VOUCHER (HCV) ADMINISTRATIVE PLAN. WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority and the Department of Housing and Urban Development (HUD) requires adoption of the Housing Choice Voucher (HCV) Administrative Plan for the administration of the HCV programs; and, WHEREAS, the HCV program will benefit from the adoption of an amended HCV Administrative Plan that updates the interim re-examination policies, portability procedures, and the assignment of bedroom sizes (subsidy standards). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: l. The updates and amendments of the HCV Administrative Plan be adopted as the policy of the Iowa City Housing Authority; and, 2. The City Clerk is hereby authorized and directed to certify appropriate copies of this resolution together with any necessary certifications as may be required by the Department of Housing and Urban Development. Passed and approved this 1st day of blarch ,20 05 Approved by CIT'¢ CLERK City Attorney's Office It was moved by Champion and seconded by Vanderhoef the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliot X Lehman X O'Donnell X Vanderhoef X Wilbum [ ' Phone: (319) 356.5400 TDD: (_~19) .~56.5404 UTHDRITY{ 410 E. W/ashington Street · Iowa CiO' · Ioma · 52240.1826 DATE: Tuesday, February 22, 2005 TO: City Council FROM: Steven a. Rackis, Housing Administrator .~J ]~ SUBJECT: Updates and amendments to the Iowa City Housing Authority's Housing Choice Voucher (HCV) Administrative Plan. 1. On January 18, 2005, the Iowa City Council reviewed and approved the following change to the HCV Administrative Plan, Section 13.2 Interim Reexamination policy: >~ Interim reexaminations based on increases in earned and unearned income will be processed. The family must report all changes in income within 10 days of the occurrence. * · Social Security cost of living increases will be processed at annual review only. The proposed change should have read: ~' Interim reexaminations based on increases in earned and unearned income will be processed. * · Social Security cost of living increases will beprocessed at annual review only. Decreases in income due to voluntary leaves of absence from employment without pay will not resuk in an increase of llAP. Due to budget constraints contained in the Federal Fiscal Year 2005 Appropriations bill, the Iowa City Housing Authority ICHA proposes these additional changes to the HCV Administrative Plan to reduce Housing Assistance Payment costs)(NOTE: Changes are underlined and in italics, additions and modifications are noted in the text): 2. I-ICV Administrative Plan, Section 8.0 Portability: ~ The PHA ma); denvpermission to move if the PHA does not have su_fficientfunding .for continued assistance. (24 CFR 982.314(e)(1) NOTE: New language. 3. HCV Administrative Plan, Section 6.0 Assignment of Bedroom Sizes (Subsidy Standards). The intent of HUD requirements is that the smallest appropriate bedroom size be assigned to participant families without overcrowding. Subsidy assignments will allow at least one bedroom for each two persons. SRackis Page 1 2/22/2005 Subsidy will be determined using the following guidelines: A. A zero (0) bedroom will be assigned to any family consisting of a single person (excluding elderly and disabled). NOTE: New language. B. A _family that consists of a pregnant woman only;, and (no other persons), will be treated as a two-person family. NOTE: New language. C. Except for a family that consists of a pregnant woman only, an unborn child will not be counted in determining subsidy standards. D. One-bedroom will be assigned to a single adult with a child under the age of seven (7). NOTE: Modification. Prior age was one (1). E. One-bedroom will be assigned for two children of the same sex regardless of age. F. One-bedroom will be assigned for children of the opposite sex who are both under the age o£eleven (11). NOTE: Modification. Prior age was five (5). G. One-bedroom will be assigned for every two adults (persons over the age of 18 unless a high school student) regardless of relationship. H. One-bedroom will be added for a live-in aide. I. In the case of shared custody of a child (children), the child (children) must be in the household no less than 51% of the time to be considered when determining subsidy. Pending custody issues will be evaluated on a case by case basis taking into account the reasonable likelihood of success. The household may be required to provide written verification that a child resides with the family such as a court order, school registration documents, etc. J. In determining subsidy, the Iowa City Housing Authority will include children who are temporarily away from home because of placement in foster care. Temporary is defined as less than one year. K. Subsidy allowances will be adjusted accordingly for foster parents who have not had a foster child in placement for one year. 2. HCV Administrative Plan, Section 13.2.1 Interim Reexamination Policy. The ICHA will conduct interim examinations in the event of maternity leave and temporary decreases in income such as those employed by the school district (off_for summer months). NOTE: New Language Prepared by: Mitchel T. Behr, Asst. City Atty., 410 E. Washington St., Iowa City, IA 52240 (319) 356~5030 RESOLUTION NO. 05-105 RESOLUTION APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY OF IOWA CITY AND PRICE PROPERTIES FOR APPROXIMATELY 21,76 ACRES OF PROPERTY LYING WITHIN LOTS '10 THROUGH '17 OF NORTH AIRPORT DEVELOPMENT SUBDIVISION AND LOTS 2 THROUGH 4 OF NORTH AIRPORT DEVELOPMENT SUBDIVISION - PART TWO, AND THE DISPOSITION OF SAID PROPERTY IN ACCORDANCE THEREWITH, WHEREAS, The North Airport Development Subdivision and North Airport Development Part Two Subdivision include commercial lots which have been marketed for sale to the general public; and WHEREAS, City has negotiated a purchase agreement with Price Properties, a land acquisition agent for Wal-Mart, a copy of which agreement is attached hereto and requires City Council approval; and WHEREAS, following public hearing on the City Council's intent to approve said purchase agreement and to dispose of the property in accordance therewith, City Council finds that the purchase agreement should be approved and that said property should be conveyed in accordance with said purchase agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The City Council hereby approves in form and substance the attached purchase agreement between the City of Iowa City and Price Properties for approximately 21.76 acres of property lying within Lots 10 through 17 of North Airport Development Subdivision and Lots 2 through 4 of North Airport Development Subdivision Part Two, and the disposition of said property in accordance therewith. 2. Upon the direction of the City Attorney, the Mayor and City Clerk are hereby authorized to execute all documents necessary to dispose of said property in accordance with said purchase agreement. Passed and approved this 1st day of Hat"ch ,20 05 Approved by ~ CITY'CLERK City Attorney's Office Resolution No. 05-105 Page ;~ It was moved by E11 i ott and seconded by O' Donnel I the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliott Lehman O'Donnell Vanderhoef Wilburn IOWA - Iowa City Store # 1721 PURCHASE AGREEMENT This Agreement is dated as of the 9th day of February , 2005, between THE CITY OF IOWA CITY, IOWA ("Seller"), and PRICE PROPERTIES ("Buyer"); WITNESSETH: 1. Sale and Purchase. Seller shall sell and Purchaser shall purchase, subject to the terms and conditions herein, an approximately 21.76 acre tract of land (the "Propen'y") more particularly described or depicted in Exhibit A attached hereto and made a part hereot~ located at the intersection of Highway 6 and Ruppert Road, in or near the City of Iowa City, Johnson County, Iowa. 2. Purchase Price. The purchase price for the Property shall be Three Million One Hundred Thirty-One Thousand Seven Hundred Twenty-Four and 40/100 Dollars ($3,131,724.40) (the "Purchase Price"), payable as follows: (a) Fifeen Thousand and No/100 Dollars ($15,000.00) shall be paid contemporaneously with the execution by Buyer of this Agreement to LandAmerica Financial Group, Inc., National Commercial Services, 7557 Rambler Road, Suite 1200, Dallas, Texas 75231; Attn: Ms. Stephanie Kleam, National Accounts Administrator (the "Escrow Agent"), to be held in an interest bearing .escrow account (the 'T)eposit"), with interest accruing to Buyer, and to be delivered to Seller at the Closing (hereinbelow defined); or, at Buyer's option, such Deposit may be allocated pursuant to a letter of credit existing in favor of the Escrow Agent; and (b) The balance of Three Million One Hundred Sixteen Thousand Seven Hundred Twenty-Four and 40/100 Dollars ($3,116,724.40) shall be paid on the date of the closing of this sale (the "Closing") by certified check or Federal wire transfer. 3. Survey. Within seventy-five (75) days aider the Effective Date of this Agreement, Buyer, at its expense, shall obtain a current survey of the Property prepared by a Registered Surveyor (the "Survey"). The Survey, in form suitable to Buyer, Seller and Title Company, shall (a) locate all present and future easements, rights-of-way, wetlands, 100-year flood plain, building lines, utility lines, roadways and encroaclunents on or abutting the Property, (b) contain an accurate metes and bounds description of the Property; and (c) conm'm the certification of the surveyor as to the number of net square feet contained in the Property, exclusive of any land lying within areas in, upon, over, under and across which no improvements may be constructed by Buyer, its agents or successors. 4. Title Insurance. Within forty-five (45) days after receipt of the Survey described in section 3 above, Buyer may order a standard form ALTA Owner's Title Commitment Policy (the "Commitment") covering the Property and issued by a National Title Insurance Company acceptable to Buyer and licensed to do business in the state in which the Property is located ("Title Company"), together with copies of all instruments, if any referred to in the Commitment as exceptions to title. The title insurance policy issued to Buyer shall have ALTA comprehensive endorsement, plus coverage for (i) access to physically open streets adjacent to the Property, (ii) any covenants, conditions and restrictions affecting the Property have not been violated nor will be violated by Buyer's intended use of the Property, (iii) contiguity of any multiple parcels which comprise the Property with no gaps nor gores, (iv) that the standard survey exception be omitted'fi.om the title policy and (v) Buyer's successors. Within thirty (30) days of receipt of the latter of the Survey and the Commitment, which Commitment must include copies of all documents constituting exceptions to title and Survey, Buyer shall give notice in writing to Seller of any defects in or obje2tions to the title or the Survey as so evidenced. If Buyer does not either accept the conditions of the Commitment and Survey or object to the conditions of the Commitment and Survey within said thirty (30) day period, then Seller may give Buyer written notice of its failure to Object to the conditions of the Commitment and Survey, and if Buyer fails to give Seller written notice of any defects in or objectiOns of Buyer to the title or the Survey within ten (10) business days after such written notice fi.om Seller, then Buyer shall be deemed to have approved the matters described in the Commitment and the Survey (except for Lien and Lease Exceptions as hereinbelow defined). Additionally, except for (i) matters to which written notice of objection has been given by Buyer to Seller as hereinabove provided, and (ii) Lien and Lease Exceptions as defined below, all exceptions disclosed by the Commitment and the Survey shall be included in the term "Permitted Exceptions" as used herein. Seller shall, within forty-five (45) days after receipt of said notice, or such time as may be extended by Buyer, exert its reasonable and diligent efforts to clear the title of the defects and objections so specified~ Failure to exert such effort to clear the title of defects and objections within the forty-five (45) days, or such time as may be extended by Buyer, shall constitute a 24~31642.4 07.Feb,.O$15:19 04339499 default on the part of the Seller and be subject to the provisions of Paragraph 10 contained herein. 5. Title and Deed. At the Closing, Seller shall convey to Buyer, by General Warranty Deed in a form acceptable to Buyer, marketable title to the Property, flee and clear of any and all encumbrances except for Permitted Exceptions, as determined pursuant to the provisions of Section 4 above. In no event shall mortgages, deeds of trust, monetary liens, or leases be deemed Permitted Exceptions ("Lien and Lease ExCeptions"). At the Closing, Buyer also may obtain, at Buyer's expense, a standard fi.om ALTA Owner's Title Insurance Policy (the "Policy") issued by the Title Company, insuring marketable title to Buyer in the full amount of the Purchase Price and containing no exceptions or conditions other than the Permitted Exceptions. If Buyer elects to obtain an extended form title insurance policy, Buyer shall be responsible for the increase in premium between a standard form policy and an extended form policy. Seller shall deliver to Buyer and Title Company copies of the deed and all other documents required for closing at least ten (10) days prior to Closing. Delay in Seller's delivery of said instrumems may at Buyer's option result in a delay of the Closing equivalent to the delay in the delivery of the instruments. 6. Risk of Loss; Condemnation. Until the Closing, the risk of loss or damage to the Property by fire or other casualty or its taking or damage by condemnation shall be on Seller. If any loss or damage occurs prior to the Closing, then Buyer shall have the option of (i) 6anceling and rescinding this Agreement and receiving a refund of all the Deposits, or (ii) accepting the Prope~a:y with abatement of the Purchase Price in the amount of the estimated cost of replacement or repair (ns agreed upon by Seller and Buyer). If~ prior to the Closing, all or any part of the Property shall be condenmed by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Deposit and any interest earned thereon shall be returned to Buyer and this Agreement shall be terminated with neither party having any rights against the other. 7. Taxes and Assessments. Real estate taxes, if any, for the fiscal year in which the Closing occurs shall be prorated to the date of Closing, Seller to have the last day, to and including the date of Closing. Real estate taxes for all prior years shall be paid by Seller. If the Closing shall occur before the tax rate is fixed for the then-current fiscal year, the apportionment 24531642.4 07-Fe, b-05 15:19 04339499 3 of taxes shall be upon the basis oftbe tax rate for the preceding fiscal year applied to the latest assessed valuation, with the proration to be adjusted between the parties based on actual taxes for the fiscal year in which Closing occurs at the time such actual taxes are determined. Assessments, either general or special, for improvements completed prior to the date of Closing, whether matured or unmatured, shall be paid in full by Seller. All charges for water, sewer, rents and solid waste removal and maintenance attributable to Seller's ownership, possession or use of the Property, including those for which assessments arise after Closing, shall be paid by Seller. All other assessments shall be paid by Buyer. The Escrow Agent shall cause to be completed the Real Property Tax Guidelines For Buyer Built Stores attached hereto as Exhibit B and shall provide to Buyer at closing. 8. Transfer and Sales Taxes. The expense and cost of all Federal, state and local documentary or revenue stamps, transfer, sales and similar taxes, if any, relating to the sale of the Property and imposed on or calculated on the basis of the Purchase Price, shall be pa~d by Seller on the date of Closing. Both parties agree to execute any tax returns requked to be filed in connection with any such taxes. Rollback taxes payable as a result of the sale of the Property (if any) shall be paid by Seller. 9. Default by Buyer. If Buyer shall default in the perfurmance of any of the terms and conditions of this Agreement, or if the Closing shall not occur through the fault of Buyer, Seller shall, as its sole remedy at law, in equity or otherwise, retain the Deposit as liquidated damages, and this Agreement shall be canceled. If the Deposit is not promptly tendered to Seller following written demand from Seller to Buyer and the Escrow Agent, Seller shall not be obligated to file suit against the Escrow Agent to recover the Deposit and may, in the alternative and at its election, file suit against Buyer.in the appropriate court in the State of Iowa to recover an amount equal to the Deposit directly from Buyer. 10. Default by Seller If Seller falls or refuses to fully comply with the terms of this Agreement, for any cause other than Buyer's default hereunder, Buyer shall, at its option and as its sole remedy, either (a) rescind this Agreement and recover from Seller the Deposit, as well as any and all reasonable expenses, not to exceed $50,000.00, paid or incurred by Buyer in connection with this Agreement, or (b) proceed with this Agreement and take the Property as is, or (c) pursue a suit for specific performance of Seller's obligations under this Agreement. 24531642.4 07-Feb-05 15:19 04339499 4 11. Right of Entry. At any time prior to the Closing, and at Buyer's sole expense, Buyer or its authorized agents shall have the fight to enter upon the Property for any lawful purpose, including without limitation making such surveys and site analysis, test borings and engineering studies as Buyer may deem necessary. Except for any preexisting conditions on the Property~ Buyer shall indemnify and hold Seller harmless from and against any and all claims and liens arising out of any act or failure to act of Buyer or its authorized agents as a result of their respective activities on the Property. If Closing does not occur within the time period provided for in this Agreement, and if requested to do so by Seller, Buyer shall restore the Property to the condition in which it existed prior to Buyer's entry thereon. 12. Brokerage Fees. Seller shall be responsible for the payment of the brokerage fee or conunission (the "Commission'), payable only. ~ ns and when the Closing a~'tually occurs, and not otherwise, to NAI Iowa Realty Commercial (Harry Wolf) ("Seller's Broker") and Jason Price ("Buyer's Broker") (together, the "Brokers"), in an amount equ~l to seven percent (7%) of the first $500,000.00 of the Purchase Price for the Property, plus six percent (6%) of the next $500,000.00 of the Purchase Price for the Property, plus five percent (5%) of the next $I,000,000.00 of the Purchase Price, plus three percent (3%) of that portion of the Purchase Price in excess of $2,000,000.00 (thus, a Purchase Price of $3,131,724.40 would result in a calculated Commission of $148,951.73); such Commission to be divided evenly between Seller's Broker and Buyer's Broker. Both parties represent that no other broker is involved in this Agreement and each party indemnifies the other against brokerage or commission claims arising out of the indemnifying party's actions. 13. Ul[iliti~. Seller, at the time of Closing, warrants that water, gas, electrical, sanitary sewer and storm sewer utility services are available to the property line of the Property. 14. Contingencies. The purchase contemplated by this Agreement between the parties is subject to the following contingencies: ~ Feasibility Period. Buyer shall have a one hundred fit~y (150) day period from and at'ocr the date of this Agreement (the "Feasibility Period") to determine the fensibility of Buyer's planned development of'the Property. Buyer may, at its option, ex~end the Feasibility Period for one (1) additional period of ninety (90)-days by depositing with the Title Company an additional Twenty-Five Thousand and No/100 Dollars ($25,000.00) for such extension. At Buyer's election, such additional amount may be allocated pursuant to an irrevocable letter of credit existing in favor of Escrow Agent. Said deposit shall increese the amount of the Deposit and be applied to the Purchase Price. In the event Buyer fails to timely make SUch additional deposit, Buyer shall be deemed to be in default hereunder, and Seller shall be entitled to give Buyer notice of same in accordance with Section 9 above. At any time prior to the end of the Feasibility Period (as extended, if extended), the Buyer may, for any reason in its sole and absolute discretion, cancel this A~greement and receive a refund of the Deposit; provided, however, that if such cancellation by Buyer occurs aider the end of the original 150-day Feasibility Period, then the entirety of the Deposit (the original $15,000.00 Deposit and the additional $25,000.00 Deposit for extension of the Feasibility Period) shall be non-refundable to Buyer and shall be paid to Seller. B. Zoning. This Agreement is expressly conditioned on rezoning of the Prope~y to Community Commercial (CC-2), purSUant to Iowa City Code Section 14-6E-5, ['or business retail usage. Seller shall, at its expense and within sixty (60) days aider the Effective Date hereo~ file an application to have the Property rezoned to Community Commercial (CC-2), pursuant'to Iowa City Code Section 14-6E-5, for business retail usage. Seller and Buyer shall purSUe the zoning application and processing to completion and shall execute all necessary and appropriate instruments. It is acknowledged and agreed, however, that the final reading and the effective date of the ordinance to rezone the Property may be delayed until a date on or before Closing, after all other contingencies contained herein have been waived or satisfied. · Application shall be made in the name of either Seller or Buyer or other parties as may be required or appropriate under the governing zoning ordinances. If the rezoning described above is not obtained on or before the Closing, this Agreement shall, at Buyer's option, terminate and be of no further force or effect, and the Deposit and any interest earned thereon shall be returned to Buyer, or Buyer shall waive this contingency and proceed with the Closing. Once the rezoning described above is completed, Seller agrees to provide a letter fi.om the appropriate zomng entity stating such zoning and this contingency shall have been satisfied. C. Soils T~st~. This Agreement is expressly conditioned upon soils test results, which, in the sole judgment of Buyer, evidences that the property is suitable for Buyer's intended use. Buyer shall obtain soils test borings to be taken on the property within thirty (30) days of receipt of the Survey, provided for in Section 3 hereo£ ffBuyer determines soils are unsuitable 24531642.4 07-Feb-0~ 1~:19 04339499 6 for its use, then this Agreement shall, at Buyer's option, terminate and be of no further force or effect. Should Buyer elect to terminate this Agreement, the Deposit and any interest earned thereon shall be returned to Buyer, or Buyer shall waive this contingency and proceed with the Closing. D. Real Estate Committee Approval. This Agreement and purchase is wholly contingent upon Buyer being able to obtain approval, from the Real Estate Committee for Wal- Mart Real Estate Business Trust, of the placement of a store on the Property. It is underStOOd that Buyer shall notify Seller within ninety (90) days.after the Effective Date of this Agreement of the decision of the Committee. If.the decision is "yes" this Agreement shall continue in full force and effect. If the decision is "no" the Deposit and any interest earned thereon shall be returned to Buyer and this Agreement shall terminate and neither party shall have any further obligations under the terms thereof. E. Governmental Approvals. This Agreement is expressly conditioned upon Buyer receiving from all appropriate and applicable private and/or 8ovemmental agencies and entities including but not limited to city and/or county planning authorities, Department Environmental Regulations, Department of Transportation and Water Manngem~nt District, any written approvals, permits, and licenses as may be required for the construction of its facilities · upon the Property, including without limitation, site plan approval by the City of Iowa City (the attachment and use of a preliminary site plan as Exhibit A to this Agreement i! not intended to be and does not constitute site plan review or approval by the City of Iowa City), a special exception approved by the Iowa City Board of Adjustment, if necessary, for Buyer's proposed use of the Property, and submission and approval of a Federal Aviation Administration (the "FAA") Form 7460-1 "Notice of Proposed Construction and Alteration," including (without limitation) approval by the FAA of the use of that portion of the "Transitional Safety Zone" (as shown on Exhibit A attached hereto) abutting the southeast boundary of the Property for the purposes described in Section 141. below, but excluding any occupancy p~rmits from the City of Iowa City. Buyer agrees to diligently pursue the acquisition of said approvals, permits and licenses promptly after the Effective Date of this Asreement; however, it is expressly understood that Buyer shall not be obligated to close until all necessary approvals, permits and licermes are obtained. If Buyer determines it is unable to obtain the necessary permits and approvals for its use, then this Agreement shall, at Buyer's option, terminate and be of no further force or effect, 24531642.4 07-Feb-O~ 15:19 04339499 7 and the Deposit and any interest eamedthereon shall be returned to Buyer, or Buyer shall waive this contingency and proceed with theCloslng. F. Vacation of Rupoert Road Right-0f-W~y/Ufility E~em~n~. This Agreement is expressly conditioned upon (i) vacation of the portion of the existing Ruppert Road right-of- way contained within the Property, (ii) Buyer granting to Sdler any and all necessary utility easements within the relocated Ruppert Road right-of-way for the utilities located with the existing Ruppert Road right-of-way to be vacated, without compensation, and (iii) Buyer paying the cost of relocation of any such utilities from the existing Ruppert Road fight-of-way to the relocated Ruppoert Road right-of-way. Seller shall, at its expense and within thirty (30) days at, er receipt of the Survey provided for in Section 3 hereof, file an application to have said right- of-way vacated. Seller and Buyer shall pursue the vacation application and processing to completion and shall execute all necessary and appropriate instruments. Application shall be made in the name of either Seller or Buyer or other parties as may be required or appropriate. If the above vaCation and grant of utility easements are not obtained on or before the Closing, this Agreement shall, at Buyer's option, terminate and be of no further force or effect, and the Deposit and any interest earned thereon shall be returned to Buyer, or Buyer shall waive this contingency and proceed with the Closing. G. Subdivision Proceedings. This Agreement is expressly conditioned upon approval of all resubdivision proceedings required for conveyance of the Property as described on Exhibit A hereto. Seller shall, at its expense, and within sixty (60) days at~er receipt of the Survey provided for in Section 3 hereof, file any necessary application(s) for nncessary resubdivision proceedings. In connection with and prior to approval of said resubdivision proceedings, which shall include the re-platting and relocation of Ruppert Road to the location along the north line of the Property as depicted on Exhibit A hereto, with final intersection configuration and design to be determined, Buyer shall enter into a "Development Agreement" with Seller, pursuant to which Buyer shall agree to: (i) reconstruct and relocate Ruppert Road as generally depicted on Exhibit A hereto, at Buyer's cost, in compliance with City standards and specifications; (ii) construct a leR mm lane for north bound traffic on Ruppert Road mining west on to Iowa Highway 1, at Buyer's cost, with final intersection configuration and design to be determined, in compliance with City standards and specifications; and (iii) pay Seller the sum of $100,000.00, as Buyer's total contribution towards the cost of all other off-site public 24531642.4 07-Fe~05 15:19 04339499 improvements necessary as a result of Buyer's proposed use and development of the Property; and pursuant to which the Seller shall agree to cooperate reasonably with Buyer, upon written request I~ut at Buyer, s cost, in having the flood plain boundary on the Property modified and relocated through the letter of map amendment CLOMA'') process with the Federal Emergency Management Agency ("FEMA"). If the above resubdivision proceedings are not obtained on or before the Closing, or if the above-described Development Agreement is not agreed upon before Closing, then in either event this Agreement shall, at Buyer's option, terminate and be of no further force or effect, and the Deposit and any interest earned thereon shall be returned to Buyer, or Buyer shall waive this contingency mad proceed with the Closing. H. Iowa Cit3,- Council Aonroval. This Agreement is also contingent upon formal approval by the City Council for Iowa City, pursuant to Section 364.7 of the Code of Iowa. Seller shall obtain said approval within sixty (60) days after the Effective Date of this Agreement. ff said approval is not obtained within said sixty (60) day period, this Agreement shall terminate and be of no further force or effect, and the Deposit and any interest earned thereon shall be returned to Buyer. I. Use of Transitional Safety Zone. This Agreement is expressly conditioned upon (i) Seller and Buyer entering into, at Closing, a mutually acceptable form of appurtenant, perpetual easement agreement, lease or other recordable document evidencing the right of Buyer, as the-owner of the Property, to use that portion of the "Transitional Safety Zone" (as depicted on Exhibit A attached hereto) abutting the southeast boundary of the Property for access driveway purposes (as to the thirty (30) foot wide portion therenf depicted on Exhibit A hereto), and for the construction, maintenance and use of a "dry detention" storm water detention facility thereon, and (ii) the approval of the terms and provisions of said use agreement by the FAA and/or any other governmental entities or agencies having control over the use of the Transitional Safety Zone. If said use agreement is not agreed upon and approved by Closing, then this Agreement shall, at Buyer's option, terminate and be of no further force or effect, and the Deposit and any.interest earned thereon shall be returned to Buyer, or Buyer shall waive this contingency and proceed with Closing. 15. Notices. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be mailed by certified or registered mail, postage prepaid, or by a nationally recognized overnight ca_trier, addressed as follows: 24531642.4 07-Feb-05 15:19 04339499 9 The City of Iowa City, Iowa Price Properties Attn: City Manager 2302 Summit Place 410 East Washington Street Birmingham, AL 35243 Iowa City, Iowa 52246 Attention: Jason Price With a copy to: Wal-Mart Real Estate Business Trust 2001 S.E. 10t~ Street Bentonville, AR 72716-0550 Attention: Richard H. Martin, Corporate Counsel with copy: Karyn Whorton, Real Estate Mgr. Notice shall be deemed to have been given upon evidence of receipt or refusal. 16. Closing. (a) The Closing shall take place at a place and time mutually agreed upOn by the parties, within ten (10) days following the date upon whidh all conditions and contingencies set forth in Sections 3, 4, 14A, 14B, 14(2, 14D, 14E, 14F, 14G, 14H and 14I contained herein are satisfied. It is mutually agreed by the parties that the closing date will be no later than tWo hundred seventy (270) days after the date of this Agreement, unless mutually agreed to in writing by the Seller and Buyer. (b) At the Closing, Seller and Buyer also shall execute and deliver for filing pursuant to appliceble provisions of Chapter 614 of the Iowa Code a "claim" to extend the term of the Declaration described in Exhibit D to this Agreement for a period of twenty-one (21) years from and after the date of Closing and the filing of such claim. The form of such claim shall be prepared by counsel to Buyer and shall be subject to the review and approval of counsel to Seller. 17. Closine Costs. Not withstanding anything to the contrary contained herein, the Closing costs shall be paid as follows: By Seller: (a) Expenses of placing title in proper condition; (b) Preparation of G-enerai Warranty Deed; (c) Revenue stamps or transfer tax; (d) Recording fees; and (e) Brokerage Fee. By Buyer: (a) Preparation of Mortgage, Deed of Trust or other appli~ble financing instruments; (b) The cost of Buyer's title insurance policy obtained pursuant to Paragraph 4 of this Agreement; (c) The escrow fee, if any, payable to Escrow Agent; and (d) All costs and fees related to any letter of eredit used by Buyer for the Deposit or any portion thereof 24531642.4 0'/-F~b-05 15:19 04339499 10 18. Time of Essence: Accentance. Time is expressly declared to be of the essence of this Agreement. Seller shall have ten (10) business days from the date of receipt of this Agreement to accept and agree to the terms and conditions herein. 19. Entire Agreement. This Agreement contains the entire agreement between Seller and Buyer, and there are no other terms, conditions, promises, undertakings, statements or representations, expressed or implied, concerning the sale contemplated by this Agreement. 20. H~adings. The headings to the Sections hereof l~ave been inserted for convenience of reference only and shall in no way modify or restrict any provisions hereof or be used to construe any such prOVisions. 21. Modifications. The terms of this Agreement may not be amend~xl, waived or terminated orally, but only by an instrument in writing signed by both Seller and Buyer. 22. Successors. This Agreement shall inure to the benefit of and bind the parties hereto and their respective successors and assigns. 23. Non Foreian Affidavit. Seller agrees to execute, at the Closing, the Transferor ]Form attached hereto as Exhibit C and made a part hereof~ in compliance with Section 1445 of the Internal Revenue Code. It is understood that if there are multiple Sellers, each Seller shall execute a Transferor Form at the Closing. 24. Effective Date. The Effective Date of this Agreement shall be the last date on which all parties hereto have executed this Agreement. 25. Additional Renr~sentations by Seller. (a) Seller hereby represents to Buyer that, to the best of Seiler's knowledge and belief~ the Property is not contaminated with, nor threatened with contamination from outside sources by, any solid, gaseous or liquid chemical, material or substance to which exposure is prohibited, limited or regnlated by any federal, state, county, local or regional authority or which is known to pose a hazard to health and safety (collectively, "I4a?ardous Substances"), and that the Property has never been used for a landfill, dump site, storage of Hazardous Substances, or by a manufacturer of any product or for any other industrial use. This representation shall survive the Closing for a period of one (I) year. In the event, but only in the event, it is determined (either before or after the Closing) that Seller has breached the representation set forth in this Paragraph 25(a), then Seller agrees, at its sole cost and expense, to perform SUCh acts as may be necessary to cause the Property to be in compliance with all federal, state and local environmental laws, rules and regulationsl In the event that Seller fails to perform such acts, then Buyer may undertake such actions as may be necessary to fulfill Seller's obligations hereunder and recover from Seller the expenses incurred by Buyer in so fulfilling Seller's duties hereunder. Further, if Buyer determines that Hazardous Substances are present in, on or under the Prope~y, but Seller had no knowledge of such I4a7~rdous Substances, and thus Seller did not breach the representation set forth in this Paragraph 25(a), then the Seller shall not be obligated (either before or after Closing) to pay any of the costs and expenses of remediating such ~aTardous Substances, but in the event such Hn?~rdous Substances are discovered before Closing and Seller is unwilling to commit in writing to pay the costs and expenses of such remediation, then Buyer shall have the right and option to terminate this Agreement, in which event the Deposit and any interest earned thereon shall be returned to Buyer and this Agreement shall be of no further force or e/fect. Co) The following shall constitute an "Environmental Condition": the Properw, or any part thereof, is designated or defined as, or may be subject to designation or ddinition as, wetland, woodland, Wild life sanctuapy, critical or other habitat for any threatened or endangered species of plant or animal, a site or location of archeological or historical interest or of artifacts or antiquities or another area protected by or subject to environmental regulation, under any federal, state or local law, regulation or ordinance (including, but not limited to, those dealing with historical or archeological sites, artifacts or antiquities, or which serve to protect or preserve the characteristics or features of all things in or on property). Seller has not made and hereby disclaims any representation or warranty, express or implied, as to the existence or non-existence of any Environmental Condition on the Propen'y. However, if Buyer determines before Closing that an Environmental Condition exists on the Property, Buyer shall have the right and option to terminate this Agreement, in which event the Deposit and any interest earned thereon shall be returned to Buyer and this Agreement shall be of no further force or effect. (c) Buyer shall deliver to Seller a copy of the final version of any environmental assessment report prepared for Buyer by outside consultants; such report shall be provided to Seller for informational purposes only, and shall not constitute an assignment or conveyance by Buyer to Seller of any rights or interests in, or right to rely upon, such reports or their coatacts other than as specifically provided in this Agreement. Seller shall not disclose the results of such environmental assessment report to any third party, other than Seller's engineering consultants, unless required by law (including statutory requirements related to Seller's sale of other parcels 24531642.4 07.Feb-O~ 15:19 04339499 in the North Airport Development or North Airport Development Part Two subdivisions) or court order, or consented to in writing by Buyer. This Section 25(c) shall survive th? Closing. 26. Succession and Assignment. This Agreement shall inure to the benefit of and bind the parties hereto and their respective successors and assigns. Buyer's rights hereunder may be assigned without restriction to Wal-Mart Real Estate Business Trust or any other affiliate of Wal-Mart Stores, Inc., provided that notice of each assignment shall be given in wrifmg to Seller. 27. Amendment to Declaration of Restrictions and Covenant. Buyer and Seller agree to record at Closing a form of First Amendment to Declaration of Restrictions and Covenants (the "Declaration") substantially in the form attached hereto as Exhibit D. modifying certain existing restrictions encumbering the subdivision in which the Property is situated. 28. Tax Free Exchange. Seller acknowledges that Buyer may elect to effect the purchase of the Property as an exchange pursuant to Section 1031 of the Internal Revenue Coda, provided Buyer utilizes the services of a "qualified intermediary" aa defined in Treasury Regulation § 1.I 03 l(k)-(g)(4Xiii) ("Intermediary") to effectuate such Section 1031 exchange and will cooperate in the accomplishment of that purpose provided only that (i) Seller shall not be required to be vested in title to any property other than the Property, (ii) Seller shall incur no liability or expense beyond those inherent in an acquisition of the Prope~y for a cash payment nor be delayed in the Closing, (iii) Buyer shall have given Seller notice of its intentions to close this transaction as an exchange not less than 48 hours prior to the Closing; such notice shall be given by either certified mail, postage prepaid, return receipt requested, facsimile or overnight delivery by a nationally recognized service. Buyer may assign this Agreement to an Intermediary without Seller's consent for purposes of effectuating a 1031 exchange. Notwithstanding an assignment to or substitution of the Intermediary to act in place of Buyer, Buyer agrees to unconditionally 8uarantee the full and timely performance by the Intermediary of the representations, warranties, obligations and undertakings of the Intermediary regarding a Section 1031 exchange, and in the event of breacl~, Seller may proceed directly against Buyer without the need to join the Intermediary. Seller agrees to execute such documents as are reasonably necessary or appropriate and to otherwise cooperate with Buyer to effectuate a Section 1031 exchange, and Buyer hereby holds Seller flee and harmless of any tax liability to Buyer of such Section 1031 exchange except insofar as such liability'is attributable to the failure of Seller to perform as required hereunder. l~l WITNESS WHEREOF, the parties have executed this Agreement in quadruplicate as of the day and year first above written. WITNESS OR ATTEST: THE. CITY OF IOWA CITY, IOWA Name: Stephe~dl. Atkir~/ Its: City Manager Date: February c/, 2005 WITNESS OR ATTEST: PRICE PROPERTIES Name: -- ~ Its: Date: February ~', 2005 24531642.4 0"/-Feb4)$15:19 04339499 14 EXHIBIT A Legal Description/Depiction of the Property 24~31r~42.4 0?-¥eb-03 15:19 04339499 Exh .~ - 1 EXHIBIT B Real Property Tax Guidelines The following items are to be completed by the Closing Agent shortly after the closing date for the property located at: (Address) 1. File the deed with the County Clerk and the Tax Assessor. 2. Notify the tax assessor of the change of ownership of the property and file a plat, if the jurisdiction requires, or file a certified survey with the assessor that outlines and describes Buyer's parcel. The Real Estate Manager will provide you with a plat if the jurisdiction requires a plat for taxing purposes. Additionally, indicate the tax identification number, if available, for Buyer's parcel, ff the tax identification number is not available at this time, then specify a future date when it will be available. Tax II) #: . Future date: 3. Notify the tax assessor that the tax statements are to be sent to: Note: Make sure that our deed reflects this same address and accounting format. 4. Is this property located within the city limits? Yes: ; No: If no, will this property be annexed into the city limits prior to the opening for business of the building to be constructed on the property? Yes: ; No: 5. Obtain details of any special assessments that may encumber the property and record below including assessment start and assessment end dates, yearly assessments, and total special assessments due. 6. Please provide the following information on the taxing authorities which may tax Buyer's parcel. COUNTY~. CITY: SCHOOL DISTRICT: QTHER: Name: Address; 24531642.4 07.F~-05 15:19 04339499 Exh B = ] Phone #: Tax yr. Begins: Tax Yr. Ends: Tax Billing Date~s): Tax Delinauenc¥ D0te: 7. Execute this documem and return it to the Real Estate Manager upon completion of items #1-6. Thank you for your cooperation in this matter, By signing below, you are indicating that you have accurately and comPletely fuliilled the ab6ve requests. Date: By: (Closing Agent) Address: Phone #: 24531642.4 07-Fe.b-0$15:19 04339499 Exh B - 2 EXlH1HT C EN'ITI'¥ TRANSFEROR Section 1445 of the Internal Revenue Code provides that a transferee of a US real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition of a US real property interest by · the undersigned hereby certifies the following on behalf of] 1. is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. 's US employer identification number is ; and 3. 's office address is understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statemem contained herein could be punished by fine, imprisonment, or both. Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Date: By: Its: 24531642.4 07-Feb-05 15:19 04339499 Exh C - 1 EXHIBIT D IOWA - Iowa City Store #1721 FIRST AMENDMENT TO DE~TION OF RESTRICTIONS AND COVENANTS THE STATE OF IOWA § co~ OF JOHNSON' § This FIRST AMENDMENT TO DECLARATION OF RESTRICTIONS AND COVENANTS (this "Amendment") is made. and entered into effective as of ,200__, by and betWecn TIlE CITY OF IOWA CITY, IOWA, a municipal corporation (the "City"), and WAL-MART REAL ESTATE BUSINESS TRUST, a Delaware statutory trust ("Wal-Mart"). Recitals: A. The City has heretofore executed and caused to be recorded in Book Page .__ in the Office of the County Recorder of Johnson County, Iowa, that certain 'qqortl~ Airport Development Subdivision and North Airport Development Subdivision Part Two, a Resubdivision of Lots 1-4 of North Airport Development Subdivision, Declaration of Restrictions and Covenants" (the "Declaration"), covering approximately acres of land located in Johnson County, Iowa (ih the Declaration and herein referred to as the "Subdivision"), as such Subdivision is described on Exhibit A attached hereto and made a part hereof for all purposes; said Declaration being incorporated herein by this reference for all purposes. Any capitalized terms used but not defined in this Amendment shall have the respective meanings provided for such defined terms in the Declaration. B. By deed of even effective date with this Amendment, the City has conveyed to Wal-Mart that portion of the Subdivision described ih Exhibit B attached hereto and made a part hereof for all purposes (the "Wal-Mart Property"). C. Pursuant to Section 16 of the Declaration, the Declaration may be amended by a written instrument executed by the City, as Developer, and the Lot Owners of not less than two- thirds (66.67%) of the Lots in the Subdivision. D. The City and Wal-Mart together are the Lot Owners of the entirety of the Subdivision, and have agreed to amend the Declaration as herein provided. A~reemants: NOW, THEREFORE, for good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the City and Wal-Mart hereby agree that the Declaration is amended as follows: 1. Section 1.A. of the Declaration is amended by adding the following additional provision to the end of the first grammatical paragraph thereof.' "The preceding provisions of this Section 1.A. shall not prohibit or restrict the operation on the Wal-Mart Property of any of the customary uses included in or associated with the customary operation of a Wal-Mart SuperCenter store, including (without limitation) a garden center, a tire and lubrication facility, a fuel station facility, and/or a photo-processing facility; and none of the customary types or levels of odors, fumes, noises or activities associated with or generated by such operations or uses shall constitute a nuisance or otherwise be a violation of the provisions of this Section 1.A. or any other provisions of this D~claration." 2. Sections 1,B. 1, and lB. 2. of the Declaration are amended by adding the following provision to the end of each of such Subsections: 24535614.3 01-Feb-OS 09:24 04339499 D-1 "The preceding provisions shall not prohibit or restrict the Operation of a gas station or other vehicle motor fuel station facility on the Wal-Mart Property (including, without limitation, the installation and/or operation of fuel storage tanks thereon or thereunder in accordance with applicable requirements of law) for the dispensing and sale to the public of motor fuels and other petroleum products or byproducts, nor the operation thereon of a photo-processing facility." 3. ~ The following provisions are hereby added as Section 1.D. of the Declaration: "D. The City covenants and agrees that no portion of the "Restricted Use Area" (as hereinbelow defined) shall be used for: (i) any purpose other than commerciai/industrial purposes of the type permitted by zoning ordinances applicable to the Subdivision; or (ii) the operation of a cafeteria, theater, bowling alley, billiard parlor, night club, other plac~ of recreation or amusement, or business selling or serving alcoholic beverages for on-premises consumption (other than restaurants sellin8 alcoholic beverages for on-premises consumption incidental to the retail serving of food, so long as the annual sales from alcoholic beverages of any such restaurant do not ex,ed 50% of the total annual sales of such restaurant, and so long as parking is provided for such restaurant uses at the ratio of not less than ten (10) parking spa~s per thousand gro~s square feet of restaurant spac~ for restaurants of five thousand (5,000) square feet or less, and fitteen (15) parking spaces per thousand gross square feet of restaurant space for restaurants of more than five thousand (5,000) square feet); or (iii) the operation of a s~hool; or (iv) the operation of any adult-type bookstore, massage parlor, movie theater or other establishment selling, renting, displaying or exhibiting pornographic or sexually explicit material or live nudity. Additionally, no building situated within the Restricted Use Area shall exceed a height of forty-two (42) feet above finished grade, inclusive of parapets, architecturai embellishment and roof-top equipment. As used herein, the "Restricted Use Area" shall mean and refer to that portion (and only that poffion) of the Subdivision that is situated east of the eastern boundary line of the Wal-Mart Propeay and west of the existing east boundary line (as oftha date of this Amendment) of Lot 10 of the Subdivision and the extension of said existing east boundary line of Lot 10 southward a~ross Ruppert Road and Lot 2 of the Subdivision, said Restricted Use Area being depicted and labeled on the Site Plan attached as Exhibit (2 to this Amendment and made a pan hereof for ail purposes. 4. The following provisions are hereby added as Section 1.E. of the Declaration: "E. The City covenants and agrees that as long as Wal-Mart, or any affiliate of Wal-Mart, is the owner or user of the Wal-Mart Property, no spac~ in or portion of the remainder of the Subdivision, and no apace in or portion of any other real prol~rty adjacent to the Subdivision which may subsequently be acquired by the City, shall be leased or occupied by or conveyed to any other party for use as (i) a groc~'y store or supermarket, as hereinafter defined below, (ii) a wholesale club operation similar to that of a Sam's Club owned and operated by Wal-Mart, (iii) a discount department store or other discount store, as hereinafter defined, (iv) a pharmacy, (v) a variety, generai or "dollar" store containing more than 8,000 square feet of gross leasable area, (vi) a gas station, vehicle fueling station or oil change/quick lube facility, or (vii) any combination of the foregoing uses. In the event of a breach of this covenant, Wai-Mar~ shall have the right, to terminate this D~laration and to seek any and ail remedies afforded by either law or equity, including, without limitation, the right to injunctive relief, without any requirement of proving immediate or irreparable harm and/or the lack of an adequate or available remedy of law for damages or other relief. "Grocery store" and "supermarket", as those terms are used herein, shall mean a food store or a food department containing more than 10,000 square feet of gross leasable area for the purpose of selling food for consumption off the premises, which shall include but not be limited to the sale of dry, refrigerated or frozen groceries, meat, seafood, poultry, produce, delicatessen or bakery products, refrigerated or frozen dab3' products, or any grocery products normaily sold in such stores or depertmems. A "discount depatlment store" and/or discount store", as those terms are used herein, shail mean a discount department store or discount store containing more than 35,000 square feet of gross leasable area for the purpose of selling a full line of hard goods and sof~ goods (e.g. clothing, cards, gil~s, electronics, garden supplies, furniture, pharmacy, lawnmowers, toys, health and beauty aids, hardware items, 245356143 01-Feb-05 09:24 04339499 D-2 bath accessories and auto accessories) at a discount in a retail operation similar to that of Wal-Mart." 5. The City and Wal-Mart agree that the provisions of Section 4. of the Declaration hereafter shall not apply to the Wal-Mart Property or any portion thereof It is expressly a~greed that nothing contained in the Declaration or this Amendment shall be construed to contain or be a covenant by Wal-Mart, either express or implied, to either commence the operation cfa business or thereafter continuously to operate a business on the Wal-Mart Property; and the City hereby waives any legal action for damages or equitable relief which might be available to the City' because of cessation of business activities by Wal-Mart. 6. Section 9. of the Declaration is amended by adding the following provisions to the end of the last grammatical paragraph thereof: "Notwithstanding the preceding provisions of this Section 9., and subject to all applicable legal requirements, Wal-Mart shall have the right to (i) display merchandise on the sidewalk in front of the store building constructed on the Wal-Mart Property, (ii) operate a garden center facility with outdoor storage, (iii) operate a gas station or motor fuel facility with outdoor display and storage, (iv) temporarily store trailers or storage containers from time to time on the Wal-Mart Property, in a screened storage area, and (v) periodically use a portion of the parking areas on the Wal-Mart Property as a seasonal display or sales area, such as (but not limited to) a Christmas tree sales area." 7. Section 10. of the Declaration is amended as follows: (a) The self-help curative rights provided to the City in Section 10. also shall extend to and be exercisable by the Owner of any lot or tract within the Subdivision that contains at least f~een (15) contiguous acres of land; (b) The ten (10) day cuxative period provided in Section 10. shall be subject to extension for a reasonable period of time, so long as the defaulting party commences to cure such default within the stated ten (10) day curative period and thereafter diligently pursues such cure to completion; (¢) Any notice of default provided pursuant to the provisions of said Section 10. must specify the nature of the alleged default and describe the specific curative action to be taken; (d) Any billing for costs incurred in exercising the self-help remedy provided in said Section 10. must be for reasonable costs and must be accompanied by supporting documentation for the costs incurred; and (e) With respect to the Wal-Mart Property, the last sentence of said Section I0. (which provides a lien to secure collection of costs incurred in the exercise of self-help curative rights) shall be without further for~e or effect. 8. Section 13. of the Declaration is hereby amended to provide that the rights, powers, privileges, authorities or reservations given or reserved to the City, as the Developer, pursuant to the Declaration as therein described, are personal to the City, and such rights, powers, privileges, authorities or reservations of the City shall not be assignable or transferable to any subsequent Owner, Owner's organization, or other third party (and any purported or asserted assignment or transfer of such rights, powers, privileges, authorities or reservations shall be void and of no force or effect). 9. Section 14. of the Declaration is hereby amended to provide that the enforcement rights provided to the City, as Developer, in Subsections 14.A. and 14.B. thereof, also shall be provided to and enforceable by the Owner of any lot or tract within .the Subdivision that contains at least fifteen (15) contiguous acres Of land. 10. With respect to Section 20. of the Declaration, the City and Wal-Mart hereby acknowledge and agree that the Owner of any lot or tract in the Subdivision shall be a "claimant" entitled to file from time to time the necessary claim to extend the term of the Declaration as provided for in said Section 20 and applicable provisions of Chapter 614 of the Iowa Code (or any successor statute). 24535614.3 01-F~o-0$ 09:24 04339499 D-3 11. Except as hereby amended, all terms and provisions of the Declaration are hereby ratified and confirmed by the City and Wal-Mart and shall continue in full force and effect. In the event and to the extent of any conflict between the provisions of the Declaration and the provisions of this Amendment, the provisions of this Amendment shall supersede and control. 12. This Amendment shall be governed by and construed in accordance with the laws of the State of Iowa; and Shall be for the sole and exclusive benefit of~ and shall be enforceable by, any one or more of the Lot Owners and their respective successors and assigns as provided for in the Declaration. Executed effective as of the date first written above. · ATTEST: THE CITY (DEVELOPER): THE crrY OF IOWA CITY, IOWA, a municipal corporation By: Name: Title: Approved By: City Attorney's Office ATTEST: WAL-MART: WAL-MART REAL ESTATE BUSINESS TRUST, a Delaware statutory trust By:. Name: Title: List of Exhibits: Exhibit A-Description of the Subdivision Exhibit B - Description of the Wal-Mart Property Exhibit C - Site Plan Depicting Restricted Use Area 24535614.3 01-F~b-05 09:24 04339499 D4 STATE OF IOWA § § SS: COUNTY OF JOHNSON § On this .. day of ,' A.D. 200_, before me, the undersigned, a notary public in and for the State of Iowa, personally appeared and , to me personally known, wh9 being by me duly sworn, did say that they are the Mayor and City Clerk. respectively, of IOWA CITY, IOWA, the said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council; and that the said Mayor and City Clerk as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said municipal corporation, by it and by them voluntarily executed. Notary Public in and for the State of Iowa My commission expires: STATE OF ARKANSAS § § 88: COUNTY OF BENTON § On this __. day of , A.D. 200.~ before me, the undersigned, a notmy public in and for the State of Arkansas, personally appeared Michael E. Gardner, to me personally known, who being by me duly sworn, did say that he is an Aasistant Vice President of WAL-MART REAL ESTATE BUSINESS TRUST, the Delaware statutory trust executing the within and foregoing instrument; that said instnunent was signed on behalf of said statutory trust; that said instrument was signed on behalf of said statutory trust by authority of its Board of Directors; and that the said Michael E. Gardner as such officer acknowledged the eXecution of said instrument to be the voluntary act and deed 'of said statutory trust, by it and by him voluntarily executed. Notary Public in and for the State of Arkamas My commission expires: 245356143 01-PebOS09~4 04339499 D-5 Prepared by: Ron Knoche, City Engineer, 410 E. Washington St., Iowa City, IA 52240 (319)356-5138 RESOLUTION NO. RESOLUTION RECOMMENDING THE AWARD OF A CONTRACT BY JOHNSON COUNTY FOR CONSTRUCTION OF THE SOUTH GILBERT STREET IMPROVEMENTS - NAPOLEON LANE TO CITY LIMITS PROJECT WHEREAS, Cedar Valley Corporation of Waterloo, Iowa has submitted the lowest responsible bid of $4,307,230.01 for construction of the above-named project. WHEREAS, Johnson County will be the contracting authority for the above project; and WHEREAS, this project will be known as FM-TSF-CO52(73) - - 5B-32 and STP-S-CO52(67) - - 5E-52. 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 recommended to be awarded to Cedar Valley Corporation, subject to the condition that awardee is deemed qualified by the Iowa Department of Transportation (laDOT). 2. The Johnson County Board of Supervisors and/or the Mayor are hereby authorized to sign the contract for construction of the above-named project. Passed and approved this day of ,20 MAYOR Approved by CITY CLERK Oily' Atto r~ ey's/,Offi ce It was moved by and seconded by the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliott Lehman O'Donnell Vanderhoef Wilburn pweng/res/sgilbed-napoteonawrdcon.doc /£ Prepared by Steve Nasby, Community & Economic Dev. Coordiinator 410 E. Washington St., Iowa Oty, IA 52240 (319) 356~5248 RESOLUTION NO. 05-106 RESOLUTION APPROVING FUNDI'NG FOR LEAR CORPORATION RELATED TO PUBLtC 1~MPROVEMENTS AND AUTHORIZING THE CITY MANAGER TO ACT AS CHIEF ADMINISTRA1/VE OFFICER AND SUBMIT ALL NECESSARY DOCUMENTATION TO THE I~OWA DEPARTMENT OF ECONOMIC DEVELOPMENT AND\OR U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, the City of Iowa City has a Capital Improvement Plan (CIP) budget for economic development activities, a Road Use Tax Fund and a Community Development Block Grant (CDBG) Economic Development Fund; and WHEREAS, the FY05 City of Iowa City budget has been adopted by the City Council; and WHEREAS, the CDBG Economic Development Fund was approved within Iowa City's Annual Action Plans for FY04 and FY05, as part of the City's 2001-2006 Consolidated Plan (CITY STEPS), as amended, to plan for the use of federal funds to assist lower income residents with housing, jobs and services; and WHEREAS, the City has disseminated information and the Iowa City City Council Economic Development Committee held a public meeting to discuss said project; and WHEREAS, the Iowa City City Council Economic Development Committee has recommended that the project submitted by the Lear Corporation - Iowa City Plant be allocated $250,000 for public and/or private site improvements; and WHEREAS, CIP, Road Use Tax and/or CDBG funds that are used for public improvements will be in the form of a grant; and WHEREAS, the Lear Corporation is simultaneously requesting funds from the State of Iowa's New Capital Improvement Program (NCIP) and Community Economic Betterment Account (CEBA); and WHEREAS, the CEBA program requires a local match; and WHEREAS, the City Council finds that the public interest will be served by an allocation of public funding for said project to retain employment opportunities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The City Manager is hereby authorized and directed to provide all the necessary certifications or documents required by the U.S. Department of Housing and Urban Development and Iowa Department of Economic Development. 2. The City Manager is authorized to execute, terminate or amend an agreement(s) with the Lear Corporation for activities in connection with this allocation of public funds. Passed and approved this lst day of March ,2005. Approved by City Attorney's Office It was moved by Bai 1 e,¥ and seconded by Vanderhoef the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTA I N: X __ Bailey X __ Champion X __ Elliott X __ Lehman X __ O'Donnell X __ Vanderhoef __ Wilbum X MEMORANDUM DATE: February 22, 2005 TO: City Council FROM: Steven Nasby, Community and Economic Development Coordinator RE: Proposed Business Assistance for Lear Corporation -[owa City Plant Lear Corporation's Iowa City Plant currently employs 746 persons. Lear Corporation - Iowa City Plant is competing for several new product lines. The product lines being sought are directly related to the retention of 318 jobs within the Iowa City Plant. Lear Corporation anticipates that approximately $17 million of new investment in equipment and improvements to the ]Iowa City Plant will be needed. To assist them with this project, Lear Corporation is asking the City to sponsor a Community Economic Betterment Account (CEBA) application to the State of :Iowa for $500,000. [n addition to the CEBA application, Lear Corporation is also eligible for the State's New Capital :Improvement Program (NC[P). A copy of the CEBA\NCTP application is included in the Council packet. The State of Iowa requires that local jurisdictions provide a minimum match of 50% for CEBA applications. On February :[7 the Council Economic Development Committee reviewed an application for local financial assistance from Lear Corporation for $250,000 as the match for the CEBA funding. Lear Corporation is requesting that the City's $250,000 in match be directed to public infrastructure improvements. The public improvement that has been requested by the company would include a turn lane on Industrial Park Road onto Highway 6. This turn lane project would facilitate a more efficient movement of employee traffic and distribution (semi-truck delivery and load out). Should the City Council approve local funding for the proposed project, Community Development Block Grant (CDBG), Road Use Tax or General Obligation Bond financing could be used. The Council Economic Development Committee recommended the use of CDBG and Road Use Tax monies. As approximately 70% of the jobs to be retained meet the CDBG guidelines, staff is recommending that 70% of the monies allocated to this proposed project come from the CDBG Economic Development Fund with the balance from Road Use Tax. This formula would result in $175,000 in CDBG funds and $75,000 in Road Use Tax. Tf you need additional information, please contact me at 356-5248 or via e-mail at Steven- Nasby@iowa-city.orq. Prepared by: Steven Nasby, Comm. & Eco. Dev. Coord., 410 E. Washington St., Iowa City, IA 52240 (319) 356 5248 RESOLUTION NO. 05-107 RESOLUTION AUTHORIZING APPLICATION FOR FINANCIAL ASSISTANCE FROM THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR COMMUNITY ECONOMIC BETTERMENT ACCOUNT (CEBA) FUNDS TO ASSIST THE LEAR CORPORATION. WHEREAS, the Iowa City Community Economic Betterment Account (CEBA) program provides loans to cities to promote economic development and create long-term employment opportunities; and WHEREAS, it is in the public interest to use State funding to encourage economic development in Iowa City, Iowa; and WHEREAS, the City of Iowa City desires to be the sponsor and apply for and obtain $500,000 in CEBA funding from the Iowa Department of Economic Development in the form of a grant, in order to assist in the expansion of the Lear Corporation facility in Iowa City, Iowa; and WHEREAS, it is necessary to provide a local contribution, and the City will be making public infrastructure improvements and funds for facilities improvements as an economic development tool; and WHEREAS, in order to obtain a competitive CEBA award, the City has approved $250,000 in funds for public improvements to assist the Lear Corporation, which was approved by Resolution No. (~.~-106 ; and WHEREAS, the City has the authority to provide financial assistance for promotion of economic development. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. It is in the public interest to encourage economic development by the City of Iowa City, as applicant, and Lear Corporation as the business, applying for CEBA funding. 2. The Mayor and City Clerk are hereby authorized to make formal application for financial assistance to the Iowa Department of Economic Development for Community Economic Betterment Account funds in the amount of $500,000. Resolution No. 05-107 Page 2 3. The City Manager is hereby authorized to take any additional actions required by the Iowa Department of Economic Development and the CEBA program in order to secure said funding. Passed and approved this 1 st, day of March ,2005. MAYOR Approved .by ,,,~ ATTEST: ~'~.~ ~"~. CI'PTOLERK ~:~ity At"t,ne~r~ It was moved by Cahmpion and seconded by Bailey the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef VVilburn X ppdcdbg/res/ceba.d~c (COPY IOWA Michael Blouin, Director ~ · ~ ,, · Iowa Department of Economic Development ~ (?: J changing:" Application for Financial Assistance Section A- Applicant & Project Information Business Development Division Iowa Department of Economic Development 200 East Grand Avenue. Des Moines, Iowa 50309 www.iowalifechan.qing.com 1/31/2005 Instructions 1. All applicants shall complete Section A of the Application for Financial Assistance and attach only those section(s) for the program(s) to which the applicant is applying. Program Download and Complete Community Economic Bettermeant Account (CEBA) Section B Enterprise Zone Program (EZ) Section C New Capital Investment Program (NCIP) Section D New Jobs and Income Program (NJIP) Section E Entrepreneurial Ventures Assistance Program (EVA) Section F Value Added Agricultural Products & Processes Financial Assistance Program (VAAPFAP) Section G Economic Development Set-Aside Program (EDSA) Section H 2. Please visit the IDED website, www.iowalifechan.qing.com, or contact IDED to see if this version of the application is still current. 3. Before filling out this application form, please read all applicable sections of the 2005 Iowa Code and Iowa Administrative Code (rules). [Insert website links] 4. Only typed or computer-generated applications will be accepted and reviewed. Any material change to the format, questions, or wording of questions presented in this application, will render the application invalid and it will not be accepted. 5. Complete the applicable sections of the application fully; if questions are left unanswered or requi~'ed attachments are not submitted, an explanation must be included. 6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation. 7. Any inaccurate information of a significant nature may disqualify the application from consideration. 8. Upon completion of the application, please submit the following to the Business Finance Team at IDED: · The original, signed application form and all required attachments · One copy of the application form and all required attachments from which additional copies can easily be made. If electronic copies of the application and required attachments are available, please e-mail these documents to [insert e- mail address to shared mailbox] in addition to submitting the original plus one copy. Business Finance Team Iowa Department of Economic Development 200 East Grand Avenue Des Moines IA 50309 Application Due Dates IDED Board Meeting Application Due Date March 17, 2005 February 21, 2005 April 21, 2005 March 28, 2005 May 19, 2005 April 25, 2005 June 16, 2005 Ma}, 23, 2005 July 21, 2005 June 27, 2005 August 18, 2005 July 25, 2005 September 15, 2005 August 22, 2005 October 20, 2005 September 26, 2005 November 17, 2005 October 24, 2005 December 15, 2005 November 21, 2005 EVA applications will be acted upon every other month starting in March. Section A - Applicant & Project Information 2 Public Records Policies Information Submitted to IDED, The iowa Department of Economic Development CDED) is subject to the Open Records law (Iowa Code, Chapter 22). Treatment of information submitted to IDED in this application is governed by the provisions of the Open Records law. All public records are available for public inspection. Some public records are considered confidential and will not be disclosed to the public unless ordered by a coud, the lawful custodian of the record, or by another person duly authorized to release the information. Confidential Records. IDEB automatically treats the following records as confidential and they are withheld from public disclosure: · Tax Records · Quarterly Iowa Employer's Contribution and Payrofl Report prepared for the Iowa Workforce Development Department · Payroll Registers · Business Financial Statements and Projections · Personal Financial Statements Other information supplied to IDED as part of this application may be treated as confidential under Iowa Code section 22.7. Following are the classifications of records which are recognized as confidential under Iowa law and which are most frequently applicable to business information submitted to IDED: · Trade secrets [iowa Code §22.7(3)] · Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose. [Iowa Code §22.7(6)] · Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22.7(8)] · Communications not required by law, rule or regulation made to IDED by persons outside the government to the extent that IDED could reasonably believe that those persons would be discouraged from making them to the Department if they were made available for general public examination. [Iowa Code §22.7(18)] Information supplied to IDED as part of this application that is material to the application and/or the state program to which the applicant is applying including, but not limited to the number and type of jobs to be created, wages for those jobs, employee benefit information, and project budget, are considered open records and will not be treated as confidential. Additional Information Available. Copies of Iowa's Open Record law and IDED's administrative rules relating to public records are available from the Department upon request or at http://www.iowalifechan,qinq.com/downloads/chap169openrecords.doc. Section A -Applicant & Project Information 3 Applicant Information 1. Name of Business: Lear Corporation Address: 2500 Highway 6 East City, State & Zip Code: Iowa City, Iowa 52240 Contact Person: Brian Pedrick Title: Plant Manager Phone: (319) 338-9281 ext. 6281 Fax: (319) 354-8642 Email: bpedrick@lear.com 2. SIC or NAICS Code: 33630 (Motor vehicle seating & interior trim manufacturing) 3. Federal ID Number: 34-6534576 Does the Business file a consolidated tax return under a different tax ID number?. [] Yes · No If yes, please also provide that tax ID number: 4. Is the contact person listed above authorized to obligate the Business? · Yes [] No If no, please provide the name and title of a company officer authorized to obligate the Business: 5. If the application was prepared by someor~e other than the contact person listed above, please complete the following: Name: Joe Raso Title: President Organization: Iowa City Area Development Group, Inc. Address: 325 East Washington Street, Suite 100 City, State & ZIP Code: Iowa City, Iowa 52244 Phone: (319) 354-3939 Fax: (319) 338-9958 Emaih JRasoC, lowaCityArea.com Application also prepared by: Steven Nasby, Community & Economic Development Coordinator City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Ph. (319) 356-5236 Fax (319) 356-5217 Steven-Nasby@iowa-city.org Sponsor Information Please review the following table to determine who needs to sponsor this application. Program Acceptable Sponsor CEBA City or County or Community College in which the Project Site is Located EZ Local Enterprise Zone Commission NCIP City or County in which the Project Site is Located NJIP City or County in which the Project Site is Located EVA City or County in which the Project Site is Located; Local Development Entity; John Pappajohn Entrepreneurial Center; a Small Business Development Center; Business Accelerator; or similar entity VAAPFAP City or County in which the Project Site is Located or Local Development Entity EDSA City or County in which the Project Site is Located 1. Sponsor Organization: City of Iowa City Official Contact (e.g. Mayor, Chairperson, etc.): Steven Nasby Title: Community and Economic Development Coordinator Address: 410 E. Washington Street City, State & ZIP Code: Iowa City, Iowa 52240 Phone: (319) 356-5248 Fax: (319) 356-5217 E-mail: Steven-Nasby@iowa-city.org Section A -Applicant & Project Information 4 2. If IDED needs to contact the sponsor organization with questions, should we contact the person listed above? [] Yes · No, please contact the following person: Name: Dave Neipp Title: Six Sigma Black Belt Address: 2500 Highway 6 East City, State & ZIP Code: Iowa City, Iowa 52240 Phone: (319) 688-6437 Fax: (319) 338.9533 E-mail: dneipp@lear.com Section A - Applicant & Project Information 5 ORIGINAL Certification & Release of Information I hereby give permission to the Iowa Department of Economic Development (IDED) to research the Business' history, make credit checks, contact the Business' financial institutions, insurance carriers, and perform other related activities necessary for reasonable evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IDED state tax information pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed. I understand that all information submitted to IDED related to this applicat!on is subject to iowa's Open Record Law (iowa Code, Chapter 22). I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is secured. I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial assistance is not available until an agreement is executed within a reasonable time pedod following approval. I hereby certify that all representations, warranties, or statements made or furnished to IDED in connection with this application are true and correct in all matedal respect. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from a state agency or subdivision. For the Business: Sign~ure , ~ Date _Brian Peddck Plant Manager -~ I'/'l ~' ~' ~ Name and Title (typed or pdnted) ~ _~onsor(s): I~a~u r~ - Date Ernest W. Lehman:, Mayor ~.~,>~...~ /~- ~.4 ~ Name and Title (~ped or pdnted) AtteSt: Marian K. Karr, City Clerk Please use the following ff more ~han one sponsor is requimd. Signature Date Name and Title (typed or printed) IDED will not provide assistance in situations where it is determined that any representation, warranty, or statement made in connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has already been provided pdor to discovery of the incorrect, false, or misleading representation, IDED may initiate legal action to recover incentives and assistance awarded to the Business. Section A - Applicant & Project Information 6 Certification & Release of Information I hereby give permission to the Iowa Department of Economic Development (IDED) to reseamh the Business' history, credit checks, contact the Business' financial institutions, insurance carriers, and perform other related activities ' for reasonable evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to state tax information pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed. I understand that all information submitted to IDED related to this application is subject to Iowa's Open Re, Law (Iowa Code, Cha 2_2). I u tis application is subject to final approval by IDED and the Project may not he initiated approval is secured. I understand --D reserves the right to negotiate the financial assistance. Furthermore, 1; ; that financial assistance is not lie until an agreement is executed within a reasonable time period fo approval. I hereby certify that ail re warranties, or statements made or furnished to IDE n connection with this application are true and correct in respect. I understand that it is a criminal violation Iowa law to engage in deception and knowingly make, o nade, directly or indirectly, a false statement in writin economic development assistance from .~ agency or subdivision. For the Business: Sig Date _Bdan Peddck Plant Manager Name and Title (typed or pdnted) For the Sponsor(s): Signature Name and Title (typed or pdnted) Please use the following if more Signature Date Name and Title (typed or pr IDED will not provid~ in situations where it is determined that an ~n, warranty, or statement made in connection with thi is incorrect, false, misleading or erroneous in any If assistance has already been provided discovery of the incorrect, false, or misleading representation, iDED n~y initiate legal action to recover incentives and . awarded to the Business. A - Applicant & Project Information ~ ~¢ Project Information 1. Provide a brief description and history of the Business. Include information about the Business' products or services and its markets and/or customers. The business has been located in Iowa CiO/since 1964. It has been sold twice during that time - the current owner is Lear Corporation. Lear Corporation is listed 129 on the Fodune 500, with corporate offices located in Southfield, MI. Lear is the world's largest automotive supplier with approximately f fO, O00 employees located in 280 plants across 34 countries. The Iowa City facility predominantly manufactures armrests and door and instrument panels. Lear- Iowa City's main customer base includes General Motors and Daimler Chrysler. Over the last several years, however, Lear has been manufacturing pads for Ford and Toyota, as well. within Lear Corporation, the Iowa City facility is well known for its multi-functional processes and innovation. Lear-Iowa City is seen as a center of excellence within the corporation. Some of the processes include injection molding, foam processing, painting - both robotic and electrostatic, foam compounding, electreforming nickel and copper, spray urethane, paint compounding, toro-cast, and high pressure water trimming. New precesses that were recently developed in Iowa City include electrostatic painting on vinyl and spray urethane. Lear- Iowa City has one of the most diverse work forces located in Iowa Cio/ and quite possibly in the state of Iowa. Employees come from 14 counties and 77 zip codes to work at Lear. The Iowa City facility competes for business internally against other Lear plants as well as outside competitors. Lowest cost ultimately determines where products will be manufactured. One of the major disadvantages the Iowa City facility has is its distance to the customers' assembly plants. At one time, Lear- Iowa City was the capitol for making instrument panels, but now the Lear plant in Warren, MI is fast becoming a major competitor to Iowa City for future business. The DR program (Dodge Ram) could be relocated because of the distance the Iowa City facility is from the assembly plant. The Warren, MI plant is nine miles from the Daimler Chrysler plant while Iowa City is five hundred miles away. It cost today $726.00 to ship a truckload of instrument panels to Sterling Heights (includes 12% fuel surcharge) We ship on the average 8 trucks a day, 5 days a week. Total shipping cost per week is $29,040, and yearly cost based on 48 weeks is 1,393,920. This obviously would be much cheaper from a closer location. The Iowa City plant also competes against other plants with significantly lower costs. Lear has many other plants in Michigan and so does Lear's competition. Fifty one per cent of the top 100 auto suppliers sales dollars are generated within ten miles in what is called Automation Alley. "Automation Alley" is the strip of land around 1-75 and 1-690 in Oakland County Michigan. The Iowa City plant also competes against other plants with significantly lower costs. One of Lear's Mexico plants for example, pays $2.40 per hour, including benefits. Lear has 10 plants in Mexico and the $2.40 per hour wage is typical for plants in Mexico. In addition, Iowa City has watched as several of its sister plants have closed over the last 3 to 5 years (please see attachment 1). Some of Iowa's larger suppliers to Lear- Iowa City include: Alliance Pattern Inc located in Keokuk, Menasha Corporation located in Muscatine, Weitz/AbelI-Howe located in Cedar Rapids, Van Meter Industrial Co located in Cedar Rapids, Acme Electric located in Cedar Rapids, Altoffer Machinery Co. located in Cedar Rapids, MMC Enterprises Inc. located in Keokuk, ADF Systems LTD located in Humboldt plus 500 other Iowa suppliers. Total spending with Iowa suppliers exceeded eight million dollars in 2004. Sales to Iowa suppliers could more than double should Lear decide to proceed with the proposed projects. 2. Business Structure: [] Cooperative , Corporation [] Limited Liability Company [] Not for Profit [] Partnership [] S-Corporation [] Sole Proprietorship 3. Identify the Business' owners. Lear is a publicly held corporation 4. List the Business' Iowa Locations and the Current Number of Employees at each Location. Lear's only facility in Iowa is in Iowa City. The company currently employs 746 people in Iowa Section A - Applicant & Project Information 7 5. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other affiliated entities in this figure.) Lear Corporation employs approximately 110,000 people at 280 plants in 34 countries. 6. Briefly describe the proposed project for which assistance is being sought. (Include project timeline with dates, facility size, proposed products/services, any new markets, etc.) Within Lear, products being manufactured for a specific model vehicle receive an alpha or numerical designation. The DR program is for Daimler Chrysler and the instrument panel for the Dodge Ram. Initial production is scheduled to begin in June 2005. The spray urethane program is an instrument panel for the 222 Buick and the 272 Cadillac. Production will begin sometime during the summer 2005. The C segment is an instrument panel for the vehicle replacing the Daimler Chrysler Neon. At this time, Lear has not been notified of the name of the new car. Production will begin at the end of 2005 or the beginning of 2006. R T will be an instrument panel for the new Dodge Caravan, whose production will start sometime in 2006. Finally, the last business Lear- Iowa CiO/is trying to obtain is the GMT 900. This is a door panel for the new Cadillac Escalade. The anticipated start of production is sometime in the spring of 2006. In addition to all of the instrument panels, Lear will manufacture a glove box door, air vents, and other related products that attach to the instrument panel. There is no immediate need on the part of the company to expand its facility for these new product lines. Local management made a strategic decision in 2004 to lease additional space in the market as a way to convince corporate executives that the Iowa City facility could undertake the additional capacity needed for these new product lines. With additional transportation costs associated with this facility over others in their division, Lear- Iowa City must focus its efforts on maintaining an innovative edge over its intemal competitors. The only way in which to maintain this edge is to continue to win work on the leading technologies and production processes in the industry. The aforementioned programs will greatly assist in maintaining the Iowa City operation as a center of excellence. Lear Corporation will be investing 17 million dollars in new machinery and equipment for the proposed new business. If the local plant is able to capture all of the new production lines, they will be able to retain 318jobs with a payroll of over 10 million dollars. The retention of these positions would represent approximately 42% of the company's Iowa workforce. Due to the volatility of the automotive industry, the company is not able to commit to any new jobs, but there is a possibility that new positions could be created over the fife of these programs. 7. Project Address: 2500 Highway 6 East, Iowa City, Iowa 52240 8. Type of Business Project: [] Startup · Expansion of Iowa Company [] New Location in Iowa [] Relocation from another State 9. Please identify the management at the project location and his/her/their experience. Brian Pedrick, Plant Manager: Worked at Lear Corporation since 1980. Rick Innis, Human Resources Manager: Worked at Lear Corporation since 1971. Dave Neipp, Six Sigma Black Belt: Worked at Lear Corporation since 1989 David Helm, Continuous Improvement Manager: Worked at Lear Corporation since 1983. Ken Bricker Controller: Worked at Lear Corporation for two years. 10. Has any part of the project started? [] Yes · No If yes, please explain. Section A - Applicant & Project Information 8 11 Project Budget: The budget should attempt to identify all sources of funding being considered including owner equity/investment, your primary lender as well as all public funds (local loan funds, federal programs, city assistance, etc.) Please be as detailed as possible. AMOUNT BUDGETED Use of Funds Cost Source A Source B Source C Source D Source E Source F Source G Source H Land Acquisition $ $ $ $ $ $ $ $ $ Site Preparation $ $ $ $ $ $ $ $ $ Building Acquisition $ $ $ $ $ $ $ $ $ Building Construction $ $ $ $ $ $ $ $ $ Building Remodeling $ $ $ $ $ $ $ $ $ Machinery & Equipment $17,150,000 $16,650,000 $500,000 $ $ $ $ $ $ Racking, Shelving, etc.1 $ $ $ $ $ $ $ $ $ Computers $ $ $ $ $ $ $ $ $ Furniture & Fixtures $ $ $ $ $ $ $ $ $ Working Capital $ $ $ $ $ $ $ $ $ Research & Development $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Public Infrastructure $250,000 $ $ $250,000 $ $ $ $ $ Improvements $ $ $ $ $ $ $ $ $ TOTAL $f7,400,000 $16,650,000 $500,000 $250,000 $ $ $ $ $ ~Warehouse or Distribution Center Projects only Does the Business plan to lease a facility? [] Yes · No if yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and operating/maintenance expenses) and the length of the lease. TERMS OF PROPOSED FINANCING Source of Funds Amount Form of Funds Rate Term Conditions (Loan, Grant, In-Kind Donation, etc.) Source A: Lear Corporation $16,650,000 Equity Source B: State of Iowa -CEBA $500,000 100% Forgivable Loan Soume C: City of Iowa City $250,000 N/A because it is public improvement Source D: $ Source E: $ Source F: $ Source G: $ Source H: $ TOTAL $17,400,000 Section A -Applicant & Project Information 9 12. Employee Benefits: Plan Provisions Amount or Percentage of (Include deductibles, coinsurance %, office Employee Benefits Total Cost (Premiums) per Costs Paid by the visit co-payments, annual out-of-pocket Provided by the Business Employee Business maximums, face amounts, company match, etc.) Emplo),ee Family Employee Family Single $40.04 Lear Lear pays Depends on the plan, each person has a Medical/Health Insurance pays ~er month Pays $991.27 choice of two different plans. The HMO $24.88 $304.90 per month plan is out of pocket cost of $10. OO per per month per visit. Please see attached documents for month more details.. Is Is Is Is include Typically our employee pays 20% and Dental Insurance included included included in the the company pays 80%. Please see in the in the in the health ins. attached documents for more details. health ins. health ins. health Ins. none none All all $24,500 per employee Life Insurance none none All all $250. O0 per week per employee Short Term and/or Long Term Disability Retirement plan none none /t ll all $34. O0 per month per year worked Pension, 401(K) 401 k plan but currently no matching funds Holidays None None All All 13 paid holidays per year Pd. Facation None None All All 1 week of vacation after one year 2 weeks after 3 years 3 weeks after 8 years 4 weeks after 15 years 5 weeks after 22 years Funeral leave None None All All Up to 3 days for family members Jury duty None None All All Full pay forjury duty minus jury pay Paternity leave One day paid Prescription drugs Part of Part of $5.00 generic $10. O0 name brand co/pay health health $10.00 co-pay Fision check premium premium 13. Identify the Business' competitors and explain what impact the proposed project will have on any Iowa competitors. Iowa does not have many automotive suppliers. One of the suppliers though is Magna Corporation, which has five locations in Iowa. These plants do metal stamping and would not be affected by the retention of these jobs. Magna is also one of our customers that we ship GMT armrest to (approx. 7,000 per day) in Brighton Michigan. 14. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa? · Yes [] No If yes, please explain why and identify those jobs as "retained jobs" in the following question. The 318 retained positions would be lost, and this could affect the entire viability of the facility. The Iowa City facility competes for business intemally against other Lear plants as well as outside competitors. Lowest cost ultimately Section A - Applicant & Project Information 10 determines where products will be manufactured. One of the major disadvantages the Iowa City facility has is its distance to the customers' assembly plants. At one time, Lear- Iowa City was the capitol for making instrument panels, but now the Lear plant in Warren, MI is fast becoming a major competitor to Iowa City for future business. The DR program (Dodge Ram) could be relocated because of the distance the Iowa City facility is from the assembly plant. The Warren, MI plant is nine miles from the balmier Chrysler plant while Iowa City is five hundred miles away. It cost today $726.00 to ship a truckload of instrument panels to Sterling Heights (includes 12% fuel surcharge). We ship on the average 6 trucks a day, 5 days a week. Total shipping cost per week is $29,040, and yearly cost based on 48 weeks is 1,393,920. This obviously would be much cheaper from a closer location. Lear has many other plants in Michigan and so does Lear's competition. Fifty one per cent of the top 100 auto suppliers sales dollars are generated within ten miles in what is called Automation Alley. "Automation Alley"is the strip of land around 1-75 and 1-690 in Oakland County Michigan. The Iowa City plant also competes against other plants with significantly lower costs. One of Lear's Mexico plants for example, pays $2.40 per hour, including benefits. Lear has many plants in Mexico and the $2.40 per hour is typical of wages in Mexico. Local management is trying to be conservative in the hiring of new employees. Lear works in a volatile industry and at the mercy of their customers. An example of this is the new contract the Iowa City plant secured to make end gates for the new GMC Envoy. This year, projected sales were 20 million dollars of end gates, but total sales for 2004 were only 4 million dollars. Due to the great decrease in sales, Lear had to adjust employment. Cost containment, innovation and increased productivity are key to the future success of the Iowa City facility. Local and state assistance is needed to maintain the viability of the plant. Many of Lear's employees travel great distances to work at the Iowa City facility (employees live in 14 surrounding counties). Many people live in Washington, Iowa or further south, east all the way the way to Davenport, and southeast past North English (see attachment 2- laborshed map). Employees have been traveling these distances for years because of the excellent salaries and benefits. Wages at the Iowa City facility ($18.49/hr.) far exceed the CEBA wage threshold of $13.12~hour for Johnson County. In addition, the surrounding counties of Jones ($11.06), Cedar ($11.40), Washington ($11.45) and Benton ($12.10), where a significant number of Lear employees live, have a much lower average wage threshold. Lear Corporation has superior benefits as compared to many Iowa manufacturers. Lear pays for over 95% of their employee's health insurance. 15. List the jobs that will be retained and/or created as the result of this project. (A retained job is an existing job that would be eliminated or moved to another state if the project does not proceed in Iowa.) For retained jobs, include the current hourly wage rate. For jobs to be created, including the startinq houdy wage rate. Job Title Skills, Education, or Experience Number of Retained (R) or Starting or Current Required Jobs Created (C) Hourly Wage Rate Year '1 of the Project Journey Electricians Must be licensed 8 R $19.35 Journey Mechanics Must be licensed 7 R $18.95 Apprentice Mechanic High school diploma or GED 7 R $17.27 And pass mechanical test Group Leaders High school diploma or GED 2 R $15.26 Mold Setters Apprentices High school diploma or GED 4 R $15.94 And pass mechanical test Outside Truck Drivers DOT License 3 R $15.49 Heavy Welders High School Diploma or GED 7 R $15.26 Roto-Cast Operators High School Diploma or GED 10 R $15.06 Handspray Operators High School Diploma or GED 14 R $14.82 Packers High School Diploma or GED 31 R $14.60 Iniection Service High School Diploma or GED 8 R $14.60 Pourhead Operators High School Diploma or GED 4 R $14.60 Service High School Diploma or GED 8 R $14,60 Injection Operators High School Diploma or GED 50 R $14.60 Janitor High School Diploma or GED 1 R $14.40 Roto-Cast Preps High School Diploma or GED 10 R $14.21 Finish Operators High School Diploma or GED 135 R $14.09 Production Supervisor High School Diploma or GED 9 R $19.23 Year1 Subtotal 318 Section A - Applicant & Project Information 11 Year 2 of the Project ** SAME AS YEAR 1'* Year 2 Subtotal Year 3 of the Project **SAME AS YEAR 'I** Year3 Subtotal Total Number of Retained Jobs: 3'18. Retention of these positions will be maintained through the 36 months of the project. Total Number of Created Jobs: 0 16. Discuss each of the following items with respect to the proposed project: a) The current employment conditions in the community, include any business closures, unemployment rates, etc. and if applicable, the community's need for assistance in attracting the Business. There has been a slight decline in manufacturing employment in the Iowa City area over the past two years. Existing firms, such as Alpla, Rockwell Collins and Loparex have added approximately 100 positions, but we have not seen manufacturing growth from companies like Procter & Gamble, Owens-Illinois and RR Donnelly. In Mamh of 2004, Sauer Danfoss announced the closure of their facility, displacing 125 people. And, in the fall 2004, General Mills announced it would be closing its Iowa City facility, displacing 83 high-wage jobs. Given the impact the Lear operation has on the community and surrounding region, it is imperative the City of Iowa City undertake public improvements to help maintain the employment and operation of the Lear facility. The City is committed to assisting this project. The City Council has committed $250,000 to this project, even though the company will not be adding any additional property tax base for local taxing jurisdictions. b) impact of the proposed project on the community and the state, include projections that reflect the impact on local and state tax revenue and any additional costs the community will incur as the result of the proposed project; There is significant economic impact of the Lear operation to the community and state. An economic impact analysis was conducted on the Lear operation, and the impact of payroll alone is more than 27 million dollars annually. Taking a 5% average payroll tax withholding, this figure would equate to approximately $1.35 million annual payment from Lear employees to the state of Iowa. In addition, Lear paid Iowa suppliers more than 8 million dollars in 2004. The indirect and induced employment from Lear's Iowa City operation is more than 850 additional jobs to the state. Indirect and Induced sales from Lear's business is more than $60 million annually, and a considerable percentage of these sales are taxed at the state level. A copy of the economic impact analysis is attached (please see Attachment 3). Section A - Applicant & Project Information 12 c) impact the proposed project will have on current employees, including the potential for increased skills and wages; Being a retention project, the impact of this project will be felt directly by existing workers. More than sro million in annual payroll, excluding substantial benefits, would be lost if these positions were not retained. The individual impact would be devastating because of the lack of a significant number of manufacturing jobs available in the market at the current time. In addition, employees would continue to have the opportunity to improve their skills as new technology is being implemented in the Iowa City facility. As new skills are developed, and wage and benefit packages are negotiated between labor and management, employees will likely receive additional compensation. When new lines are added the company will continue to promote from within for all salary jobs plus they believe that it is important to send employees off to specialized schools for further training. d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities and the extent to which it will increase the Business' productivity and competitiveness; and Without an investment from local and state govemment, the facility will witness significant risk in its ability to expand into these aforementioned production lines. Should these programs take place in Iowa City, the facility will be a central location for new interior body technology, R&D and sustain its competitiveness both internally and externally. e) The potential for future growth in this industry Please see attached letter (please see Attachment 4) from Lear's Corporate Offices for potential growth of the spray urethane business. 17. Is the Business actively considering locations outside of Iowa? · Yes [] No tf yes, where and what assistance is being offered? As a large multi-national corporation, with 75 plants located in the United States, Lear Corporation has the ability to locate their facilities in strategic locations in which shipping costs will be minimal and just in time (JIT) inventories would be less then those experienced within the Iowa City Plant. Many of Lear's facilities are in "Automation Alley" or located in close proximity to their customers. 18. There are three general justifiable reasons for assistance. Financing Gap - The Business can only raise a portion of the debt and equity necessary to complete the project. A gap between sources and uses exists and state and/or federal funds are needed to fill the gap. Rate of Return Gap - The Business can raise sufficient debt and equity to complete the project, but the returns are inadequate to motivate an "economic person" to proceed with the project. Project risks outweigh the rewards. Location Disadvantage (Incentive) - The Business is deciding between a site in Iowa (site A) and a site in another state (site B) for its project. The Business argues that the project will cost less at site B and will require a subsidy to equalize costs in order to locate at site A. The objective here is to quantify the cost differential between site A and site B. Identify the reason why assistance is needed to complete this project and what measures were analyzed to determine the amount and form of assistance needed. The justifiable reason for this request is the location disadvantage the Lear-Iowa City facility faces. The Iowa City facility competes for business intemally against other Lear plants as well as outside competitors. Lowest cost ultimately determines where products will be manufactured. One of the major disadvantages the Iowa Cify facility has is its distance to the customers' assembly plants. The Iowa City plant also competes against other plants with significantly lower costs. The Mexico plant, for example, pays $2.40 per hour, including benefits. Lear works in a volatile industry and at the mercy of their customers. An example of this is the new contract the Iowa City plant secured to make end gates for the new GMC Envoy. This year, projected sales were 20 million dollars of end gates, but total sales for 2004 were only 4 million dollars. Section A - Applicant & Project Information 13 How Lear will invest its capital: · DR program Dodge Ram instrument panel $'1,600,000 · Spray urethane program for Buick 222 and 272 Cadillac $1,300,000 · C segment replacement for Dodge Neon $4,500,000 · RT program new instrument panel for Dodge Caravan $8,000,000 · GMT 900 program for the new Cadillac $1,000,000 19. What amount of state assistance is requested based on the above-identified need? $'1,320,000 Lear is requesting $500,000 in CEBA funds - 100% forgivable loan; and a combination of UP TO $820,000 in the sales tax refund (related to ancillary construction for installation of machinery & equipment) and an R&D tax credit / refund. A comprehensive study is being undertaken to correctly establish qualifying R&D expenditures, though this report is unlikely to be completed by the time of the review and vote by the IDED Board of Directors. What type/form of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)? The company respectfully requests that the CEBA award be a 100% forgivable loan. Given the substantial competition between Lear facilities, it is extremely important to provide corporate executives with the best financial picture for the Iowa City facility to counteract the additional shipping charges that the company will incur. Due to Lear Corporation's ability to secure financing at preferential rates, a short-term, Iow-interest CEBA loan will not offset the shipping differential between locations while allowing the Iowa City Plant to capitalize their re-tooling efforts. 20. Please indicate what financial assistance program(s) the Business is applying to: · CEBA (Complete Section B). [] EZ (Complete Section C) · NCIP (Complete Section D) [] NJIP (Complete Section E) [] EVA (Complete Section F) [] VAAPFAP (Complete Section G) [] EDSA (Complete Section H) The Department reserves the right to review this application and determine, based on the proposed project and available program funds, which financial assistance program(s) is best suited for the Business' project. The actual program(s) utilized may vary from the programs indicated above. Attach merits Please attach the following documents: A1 Business Plan (PLEASE SEE 2003 ANNUAL REPORT) At a minimum, include: · marketing study, · feasibility study, · projected profit and loss statements for three years into the future, · project budget, · production operations, · management structure, · personnel needs, · descriptions of product or process, · status of productJprocess development, and · patent status (if applicable). (Any information outlined above not included in the business plan should be submitted as supplemental information via a separate attachment.) Section A -Applicant & Project Information 14 A2 Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report Summary Page (Page 1) for the past year and a copy of the most recent payroll report for one pay period. A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and regulations, including environmental and worker safety regulations, or, if such violations have occurred, tl~at there were mitigating circumstances or such violations did not seriously affect public health or safety or the environment. [Sample form needed for website] A4 Public Return on Investment (ROI) Worksheet [insert website link] A5 Financial Information (Existing Businesses Only) · Profit and loss statements and balance sheets for past three year-ends; · Current YTD profit and loss statement and balance sheet; · Schedule of aged accounts receivable; · Schedule of aged accounts payable; and · Schedule of other debts. Application Checklist Section A- Applicant & Project Information 15 I Application Checklist j changing' Section A Section B Section C Section D Section E Section F Section G Section H CEBA EZ NCIP NJIP EVA VAAPFAP EDSA , the Business Business Plan w/3-~ections ' Employer's Contribution and Current Pa~ort Affidavit re: Violations ROI Worksheet P/L statements & Balance Sh~ Current YTD Financials ~d Accounts Receivables .=d Accounts Payable Schedule of Other Debts Resolution from S?onsor of Project Site / Public Hearin( Notice Minutes Job Creation Waiver Technical Assistance Budcjet Bids, Quotes, & Estimates )n Form Commitment Letters Comm. Development & Housing Needs Assessment )licanVRecipient Disclosure/U If an item listed above is not included, please indicate in the corresponding box the date on which IDED can expect to receive it or explain below why it has not been included: Application Checklist 1 Lear plans to shut Auburn Hills plant Attachment 1 News Sports Autos Entertainment Business Features Opinion i' " Autonews ~: ::'.e.'r~.~.~.~:::, E-MAIL THIS STORY I PRINTER-FRIENDLY FORMAT CLAS . , · ' · Fin k_ ............. _~ · Fin · V~a Lear plans to shut Auburn Hills · · 2005 Detroit Autoplant Show · Auto reviews · Driving Today UAW workers face loss of GM seat jobs s.oP · Used car prices from Kelley Blue Book June 4, 2004 · AP business wire Photo galleries · Detroit Auto Show BY JOCELYN PARKER · Chicago Auto Show FREE PRESS BUSINESS WRITER ~<~,~ u~,~s. Multibillion-dollar auto interiors supplier Lear Corp. said Thursday that it plans Home page to close its Auburn Hills plant by mid-June, a move that will put the factory's site index 305 hourly employees out of work. View the front page V'~ather Lotter~ The Auburn Hills plant makes seats for the Buick LeSabre and Buick Park comics Avenue sedans, which are built at General Motors Corp.'s Orion Township Photos ~DVER Movie listings plant. Company officials said Lear doesn't have the seating contract for the Restaurant guide next vehicle to be assembled at Orion, the Pontiac G6 sedan, so it has no Search choice but to close its Auburn Hills plant. Archives Death notices Personals Lear sent a letter to the State of Michigan in March warning that the plant Newspaper subscriptions Could close. About the Free Press Free Press Jobs Page Bookstore Company spokesman Mel Stephens said the United Auto Workers union and Lear reached an agreement Tuesday about the fate of the plant. He wouldn't divulge details, but he said both parties knew about the possibility. "Both sides understood the business situation, and that was that," Stephens said. The UAW contract at the Auburn Hills plan expired in May. The union declined to comment on the situation. According to a person familiar with the situation, workers at the plant will receive severance packages that include a lump-sum payment and medical benefits in many cases. The company also said workers there will get preference when applying at other Lear plants. Separately, the UAWand Lear reached an agreement Tuesday that would allow Lear's two Grand Rapids-area seating plants to stay open. ' Lear plans to shut Auburn Hills plant Page 2 of 3 allow Lear's two Grand Rapids-area seating plants to stay open. In the last couple of months, Lear and the UAWwere engaged in intense contract talks over whether the company would merge its Grand Rapids and : Walker plants, which could have resulted in 400 job losses. The contract expired in May. Lear said in March that any job losses at the factories would result from not having enough future business at the plants. The union declined to comment on the details of the agreement. Both plants make seat parts for GM and other automakers. The Grand Rapids plant, also known as the Alpine facility, employs 650 hourly workers and the Walker factory, known as the Walkent plant, employs 362 hourly workers. Lear spokeswoman Andrea P0chalsky said it is not uncommon for Lear to su~sc close plants like the one in Auburn Hills because of just-in-time manufacturing, which requires its suppliers to be near their customers. Auburn Hills is south of Orion Township. A few months ago, Lear closed its Oakville, Ontario, plant because Ford replaced its V~ndstar minivan with the Freestar. Ford didn't award Lear the ~ new business for the Freestar. -start .Rene f "This is kind of the nature of the business because of just-in-time. VVe have to .cust be located within 30 minutes of the customer," Puchalsky said. .Earn an In She said the move has nothing to do with restructuring, declining sales or so- NEWSP called offshoring, the movement of work to plants overseas. David Cole, chairman of the Center for Automotive Research in Ann Arbor, said automakers usually rotate business among a handful of auto interior FE^ suppliers, which include Lear, Magna International Inc., Johnson Controls Dinin Inc. and Faurecia, so it's typical for any of these suppliers to close a plant when its contract is up. "Bidding is really tough right now," Cole said. .Onlin ,Print The situation at Auburn Hills caught the eye of the Gev. Jennifer Granholm's .v~n office, which has contacted the supplier about tax breaks and incentives to .Brow retain jobs in the state. Michigan has lost more than 170,000 manufacturing jobs since 2000. Mary Dettloff, a spokeswoman for the governor, said the office understands the circumstances at Auburn Hills but is pleased that the two plants in the Grand Rapids area will stay open. Contact JOCEL YN PARKER at 313-222-5391 or parker@freepress, com Free Press business writer Jeffrey McCracken contributed to this report. email this I print this Ford rolls out new era at oldest assembly plant - 08/11/04 Page 1 of 5 ~ I~ Latest Autos In Autos ~ I~ Previous Story 1. Next Story Autos Insider Marketpl -- Insider Columns V~dnesda 11,2004 *:Browse -- Autos Talk * New&U 2005 Auto Show :*;:Employ -- Virtual Tour ,.Homes Autos Photos ~. Shop O .__- -__C g__n c__ej3t Ca rs --2006 Models Home Del --2005 Models *:Start ho --2004 Models ,~. ;Renew s --Auto Shows ',~ Custom Drive -- Car Reviews Autos In -- Latest Deals · Autos In . -- Model Reports Wednesda J~°x,-rid e s 2004 -- Car of the Day__. -- Joyrides Photos · Feds lin ~:!~ wed k roofs ~CH · Balmier d~ 2005 price I i~ Cherokee ~ Charles V. Tines / The Detroit News · Daimler Home Page Essentials 10.5 percen CyberSurveys Chicago Assembly Plant worker Charlotta Antwine · UAW wo Forums latest Cater Photo Galleries works on a 2005 Ford Freestyle, a cross between a offer Weather minivan and a sport utility. · Cadillac Horoscope Lottery luxury seal Giveaways Ford rolls out new era at oldest assembly year Crossword · Shuffle t Advanced Search pi Contact Us ant declines Autos $400 million Chicago factory builds three crucial new models · Hahn El headquarte Autos Insider 273 to lose Drive -- Car Reviews By Eric Mayne / The Detroit News · Middleb -. Latest Deals promoted a -- Model Reports CHICAGO Ford · SUV glu Joyrides Motor Co. is about to find interest Business Business out ifa $400 million · Ford Sh Money & Life gamble to refurbish an old at the futur Careers · Chrysler -- Find a Job factory on Chicago's south up 300c Real Estate -- Find a Home side will Pay off in hot · Mazda t campaign Metro demand for the Metro/State opening ce Wayne automaker's next · Energy Oakland Devices to Macomb generation of passenger Livingston 2005 Ford Five Hundred · GM to s Commuting cars. model in Br Obituaries The shiny Ford Five About Ford's Chicago plant · GM wor -- Death Notices Schools Hu_~dred sedans that roiled What: Renovated assembly factory, and off for $175 Special Reports nearby stamping plant and supplier park · GM cuts Editorials off the assembly ]iTle Where: Chicago production Columnists Detroit History Tuesday to the cheers of Investment: $800 million by Ford and 12 · Daimier Ford rolls out new era at oldest assembly plant - 08/11/04 Page 2 of 5 rating raise Nation/World workers represent the auto parts suppliers Chrysler pr Nation/World Politics/Gov automaker's best chance to Employment: 5,600, including workers · Michelin Census at nearby, 155-acre supplier park continue ta Health win back ground lost to Products: Ford Five Hundred, Ford hold Religion Japanese rivals. Technology Freestyle and Mercury Montego. A fourth · Toyota Sports The Dew flagship of product, a Mercury crossover, will be hybrid offe Sports Insider · Federal LIons/NFL Ford's Blue Oval car produced at a future date. Pistons/NBA lineup isoneof a trio of History: Opened in 1924 to build Model fateindictedOf formin Red Wings/NHL T. Later assembled the F-100 pickup, Tigers/MLB new models to be built in Galaxie 500, Thunderbird, Torino, LTD, · Ford roll ShockJVVNBA oldest asse MSU Chicago that Ford is and the Ford Taurus and Mercury Sable. · Mitsubis U-M Ford's oldest plant in the world. More colleges betting will put the rebou,d High Schools company back on top of Fun fact: Flexible body shop and final · New ven Golf assembly area allows Ford to quickly of Hummer Motor Sports the American car market it change product mix build up to eight · GM begi Outdoors More SPorts oncedominated with the different models off two vehicle platforms, defense Scoreboards stalwart Taurus. Source: Ford Motor Co. · GM's In Entertainment $'135 millio Entertainment Although Ford has been equipment Rant/Rave · Ford ad Events churning out Five Indian plan -- Event Finder Hundreds since mid-July, · suvs ra Movies/TVlDVD -- Movie Finder the company celebrated the ro over rati -- TV Listings · Ford be Eats & Drinks vehicle's launch Tuesday fuel ce, .e -- Restaurants -- Wine Report at the 80-year-old Chicago · New air Books Assembly Plant a . protection CD Reviews Escapes former site of Taurus Sections Casino Guide Michigan's Best production and the oldest 2005 Ford Freestyle I~''l.Sellg~°~n~aly; Living Ford factory in the world. Lifestyle Homestyle Ford executives joined Fitness Forums local politicians and United News Talk Auto Workers officials to Faith Talk Autos Talk mark the complex, Wings Talk Lions Talk simultaneous introduction Pistons Talk of the Five Hundred; its copy Tigers Talk The Big t0 Talk Technicaltwin,the use of this High Schools agreemen Movie Talk Mercury Montego; and the Service (up Tach Talk Ford Freestyle a cross 2005 Mercury Montego Weblogs Photo Slog betweena car, a minivan ~ Comment on this story Politics Slog ~- Send this story to a friend Pistons Slog and asport utilityvehicle. ~ Get Home Delivery Tigers Slog The launch is critical for Lions Slog Rant/Rave Ford because it marks the automakef s re-entry into a car RSS ~ Feeds market dominated by foreign competitors. Fords car sales are down 12.3 percent this year, while overall car sales are down 1.4 percent. "If you think about Ford, people a lot of times think immediately about trucks," said Greg Smith, Ford executive vice president and president of the Americas?We are presenting some products that will be in the mainstream of the Ford rolls out new era at oldest assembly plant - 08/11/04 Page 4 of 5 Chicago Assembly, the supplier park saves Ford $50 per vehicle in transportation costs. That amounts to $15 million annually, if Chicago builds to its maximum capacity of 300,000 units. The supplier park, which created more than 1,000 jobs, was established with help from the city of Chicago in the form of $17 million in tax rebates. ~The state of Illinois also chipped in $100 million for infrastructure improvements. Ford has a similar setup at an assembly site in Genk, Belgium. But Tony Brown, Fords vice president of global purchasing, cautions against concluding that a trend exists. So far, suppliers are content. "It means we carry less inventory we're five minutes away," said Jeff Schropp, plant manager of a Lear Corp. facility that supplies interior trim. Ford invested $400 million to gut the 2.7 million squarefoot Chicago Assembly, built by Henry Ford in 1924 to make Model Ts, and install flexible manufacturing capability. With no room on the land-locked site for expansion, design engineeers had to make efficient use of every square foot. Working with partners, Ford purchased 155 acres adjacent to the factory to build the supplier park. Ford moved a major road to provide better access to the plant and spent millions on an enviromnental cleanup of marshland polluted by slag dumped by nearby steel plants. "This is the hardest changeover weYe ever had," said Ron Evans, a 62-year'old Chicago plant employee with 39 years' seniorityl "People had to learn how to use all the highlech tools." Among them are computer-controlled tools akin to electric wrenches and screwdrivers. They ensure fasteners are tightened appropriately. While costly at the outset, flexible manufacturing portends long-term savings and enables quick response to changing consumer tastes. Chicago has the capability to build eight different vehicles from two basic designs. A fourth vehicle, a Mercury version of the Freestyle, has already been promised to Chicago, but production is about two years away. Half of Ford's North American assembly plants will have flexible manufacturing capability by 2006, said Roman Krygier, Ford's group vice president of manufacturing and quality. Once the toast of the industry, Taurus redefined family cars when it was introduced in 1987 Until recent years, it topped Ford roils out new era at oldest assembly plant - 08/11/04 Page 5 of 5 midsize car sales and was hailed for its quality and driveability. It and Sable will be relegated to rental car fleets -unlike the Five Hundred and Montego, Hazel said. They will be reserved for retail customers in keeping with Fords strategy to increase the value of its declining market share. Commercial fleets, however, are another matter."On commercial fleet, we never turn down business,"he said. "We always evaluate." Chicago's manufacturing flexibility will also enable Ford to adjust its mix to match market demand, avoiding a gaffe made by DaimlerChrysler when it launched the Pacifica. Despite the vehicle's edgy styling, dealers had so many highpriced models after launch, buyers balked. You can reach Eric Mayne at (313) 22~2443 or emayne~detnews, com. Charles V. Tines / The Detroit News Greg Smith, Ford executive vice president, second from left, Chicago Mayor Richard Daley and Gerald Bantom, UAW vice president, attend Ford's new car launch in Chicago. Previous Story I~ Next Story Location Advantages for an Auto Supplier Exchange Firm Patrick L. Anderson lan K. Clemens BBK, Ltd. Southfield, Michigan · Lansing, Michigan * Chicago, Illinois September 9, g0o0 Executive Summary .................................................................................... Figure 1: Auto Assembly Plants in North America .......................... Figure fl: Auto Industry Concentration Near Oakland County.... 5 E-Commerce and Location Decisions .................................................... 6 Concentration in the Automobile Industry .......................................... 6 The Location Decision for Covisint ........................................................ Potential Candidates for Covisint ........................................................... Geographic Analysis ................................................................................... 8 Results ............................................................................................................. 9 Table 1: Auto Assembly Plants in North America .......................... 10 Table ~: Top 100 Auto Suppliers in North America ....................... 10 Ranking the Locations .............................................................................. 10 Table $: Average Supplier Distances from Potential Locations.. 1 Location Advantages Within Michigan .............................................. 12 About the Authors ......................................................................................... 12 SEPTEMBERg, 2000 Table 1: Auto Assembly Plants in North America Car Truck United States 28 58 within 10 miles of Automattbn Alley 5 wz?hin 1 oo miles of Automatwn Alley 18 12 Canada 8 7 Mexico 8 7 Total 44 52 Table ~: Top 100 Auto Suppliers in North America Number of Sales Percent Suppliers (millions) of Total United States 940 $1~31,910 95 within 10 miles of Automation Alley 42 $ 70, 78¥ 51 within 1 O0 miles of Automation Alley 56 $ ! 00,1 ~ ~ 72 Canada 40 $ 5,990 40 Mexico 1 $ 60~ 0 Other I 1 $ 8400 Total North America 100 $158,642 Source for tables 1 and 2: Anderson Economz¢ Group geographt¢ analysis; Base data source for tables 1 and 2:1999 and 2000 Market Data Book, Automotive News R~nking th~ ~ From the information provided above, it is clear that locating in or near Oakland County provides tremendous advantages, as it would situate Covisint in the middle of the largest concentration of auto suppliers and manufacturing plants. Suppose, for a moment, that Covisint has other important considerations 10 Lear jobs going to Brownstown 08/01/04 Page 1 of 4 The News-Herald A Heritage Newspaper Twice Weekly Publication Today: Tuesday, February 15, 2005 Lear jobs going to Brownstown Sections > Front Page > News PUBLISHED: August 1, 2004 > Education > Business MONROE Automotive supplier Lear Corp. plans ~ Sports . Auto to close a former Delta USA Corp. plant and shift its ~ Entertainment work to other facilities. ~. Lifestyles > Opinions The move will begin in September and be completed > Religion , Classifieds by mid-October. There are 247 union-represented jobs ~ Public Notices at the former Delta plant and about 85 salaried > Announcements workers. ~ Death Notices > Archives > Special Sections Lear said some employees will have the opportunity to transfer to Lear's plant in Brownstown Township, I ........................... i1 some could transfer to a Highland Park factory and ill others will get a chance to transfer to other Lear facilities. Southfield-based Lear acquired Delta in June. Other News Links : I General Info About Us ~, Advertising Contact Us .lobs at Heritage ~ Letter to the Editor ,~ Place a Classified ~ Newsstand Locations · Subscribe/Renew Carrier Info Attachment 2 Lear Iowa City jobs by county Benton County23 employees Cedar County 82 employees Des Moines County I employee Henry County1 employee Iowa County 32 employees Jefferson County 3 employees Johnson County 315 employees Jones County33 employees Keokuk county 7 employees Linn County 44 employees Louisa County 48 employees Muscatine County 72 employees Scott County1 employee Washington County 84 employees Attachment 3 U=III~I~ ~=l]!~J~ (If ~ Institute for Decision Making NorthernloMra College of Businesa Administration Economic Impact Analysis Summary Lear Corp. Using numbers provided by Iowa City Area Development Group, the Institute for Decision Making (IDM) at the University of Northern Iowa completed the following economic impact analysis for Lear Corp. in Johnson County, Iowa. IDM used IMPLAN* to complete the analysis, · The first area of analysis is called Operations Output and is the total output in the region generated directly by the finn's sales and indirectly from the multiplier effect. This impact occurs each year. Direct Indirect Induced Total Impacts Existing impact $146,000,000 34,454,164 25,784,363 $206,238,527 2006 impact $280,000,000 66,076,488 49,449,463 $395,525,939 2006 retained $156,000,000 36,814,038 27,550,415 $220,364,446 · Payroll (or employment) output is the money employees from Lear Corp. will spend in the community each year, assuming they are all local employees and spend 75% of their payroll locally. This impact occurs each year. Direct Indirect Induced Total Impacts Existing impact $22,155,750 2,557,429 2,751,846 $27,465,025 Retained impact $ 7,500,000 865,722 931,534 $ 9,297,256 · Next, we examine Operations Employment that is the total employment in the region generated by the firm's sales. Direct Indirect Induced Total Impacts Existing impact 749.0 430.7 420.0 1,599.7 employees Retained impact 330.0 189.8 185.1 704.9 employees Curris BosinessBuilding Suite 5 · CedarFalls. Iowa50614-0120 * Phone: 319-273-6941 · Fax: 319-273-6830 · www.bcs.uni.edu/idm University of Institute for Decision Making North6rnlowa College of Business Administration · Payroll Employment is employment generated by the spending of thc payroll of the Lear Corp. employees. This is employment that is in addition to the employment at Lear. For example, grocery stores and restaurants originally had to hire more employees to deal with the spending of the employees at Lear. Direct Indirect Induced Total Impacts Existing impact 161.1 30.9 42.0 234.0 employees Retained impact 54.5 10.5 14.2 79.2 employees The total economic impact of Lear Corp. is $233,703,552 and it accounts for 1,833.7 jobs in the economy. The retained impact will be $77,101,702 and 784.1 jobs. In 2006, the economic impact will be $422,990,964, with a retained impact of $229,661,702. Direct effects are those directly tied to Lear Corp. Indirect effects are the results of local industries purchasing from each other. This includes business growth/decline resulting from changes in sales for suppliers to the directly affected businesses. Induced effects reflect changes in spending from households as income/population increases or decreases due to the changes in production. This includes shifts in spending on food, clothing, shelter and other consumer goods and services, as a result of the change in workers and payroll of directly and indirectly affected businesses. This analysis is based on the following numbers provided by Iowa City Area Development Group: NAICS code 336360 - Motor vehicle seating and interior trim manufacturing Total employment: 749 existing; 330 retained Annual payroll 2005:$29,541,000 existing; $10 million retained Annual sales 2005:$146 million existing 2006 sales: $280 million; $156 million retained Counties for analysis: Johnson, Cedar, Washington IMPLAN is a PC based economic analysis system composed of data files and software. For additional information on IMPLAN, please refer to their website at www.implan.com. Cums BusinessBuildingSuite 5. Cedar Falls;Iowa50614-0120 · Phone: 319-273-6941 · Fax: 319-273-6830 · www.bcs.uni.edu/idm Employment Impact IMPACT NAME: employ330 MULTIPLIER: Type II co~t ~o ~oo~ LearCorplowaCity.iap Industry Direct* Indirect* Induced* Total* I Oilseed farming 0.0 0.0 00 2 Grain farming 0.0 0.0 0.1 0.1 3 Vegetable and melon farming 0.0 0.0 0,0 0.0 # 4 Tree nut farming 0.0 0.0 0.0 5 Frail farming 0.0 0.0 0,0 0.0 6 Greenhouse and nursery production 0.0 0.0 0.0 0.0 # 10 All other crop fanning 0.0 0.0 0.1 0.1 11 Callle ranching and fanning 0.0 02 0,5 03 12 PooltD' and egg production 0.0 0.0 0.0 0.0 # 13 Animal production- except cattle and 0.0 0.1 0.1 0.2 l 8 Agriculture and forem'ry support acliv 0.0 0,0 0.1 0.1 24 Stone mining and quan~ing 0.0 0.0 0.0 0.0 # 25 Sand- gravel- clay- and refractory mi 0.0 0.1 0.0 0.1 30 Power generation and supply 0.0 0,5 0.3 0.9 31 Natural gas distribution 0.0 0.0 0.0 0,1 42 Maintenance and repair of farm and 0.0 0.0 0.3 0.3 43 Maintenance and repair of nonmsiden 0.0 2.2 0.7 2.9 45 Other maintenance and repair constm 0.0 0.1 0.2 0.3 47 Other animal food manufacturing 0.0 0,0 0.0 0.0 # 48 Flour milling 0.0 0.0 0.0 0.0 # 54 Fats and oils refining and blending 0.0 0.0 0,0 0.0 61 Fruit and vegelable canning and d~yi 0.0 0.0 0.0 0.0 62 Fluid milk manufacturing 0,0 0.0 0.1 0.1 64 Cheese raanufacturing 0.0 0.0 0.1 0. 67 Animal- except poultry- slaughtering 0.0 0.1 0.1 0.2 68 Meat processed from carcasses 0.0 0.0 0.0 0. I 69 Rendering and meat byproduct proce 0.0 0.1 0.0 0.1 73 Bread and bakery product- except fi- 0.0 0.0 0.6 0.6 85 Soft drink and ice manufacturing 0.0 0.0 0.0 0.0 # 86 Breweries 0.0 0.0 0.0 0.0 97 Textile and fabric finishing mills 0.0 0.3 0.0 0.3 101 Textile bag and canvas mills 0.0 0.0 0.0 0.0 # 107 Cut and sew apparel manufacturing 0.0 0.0 0.0 0.0 # 110 Footwear manufacturing 0.0 0.0 0.0 0.0 # 112 Sawmills 0.0 0.0 0.0 0.0 # 116 Engineered wood member and tress m 0.0 0.0 0.0 0. 117 Wood windows and door manufantur 0.0 0.0 0.0 0.0 120 Wood container and pallet manufactu 0.0 0.8 0.0 0.8 122 Prefabricated wood bniiding manufac 0.0 0.0 0.0 0.0 1:23 Mig:ellaneous wood product manufac 0.0 0.0 0.0 O, 126 Paperbeard container manufacturing 0.0 0.1 0.0 0.1 129 Coated and laminated paper and pack 0,0 0.2 0,0 0.2 131 Die-cut paper office supplies manufa 0.0 0.0 0.0 0.0 # 136 Manifold business forms printing 0.0 0.1 0.0 0.1 139 Commemial printing 0.0 0.6 0.4 1.1 143 Asphalt paving mixture and block ma 0.0 0.0 0.0 0.0 # 158 Fertilizer- mixing only- raanufacturin 0.0 0.0 0.0 0.0 160 Pharmaceutical and medicine manufa 0.0 0.0 0.1 0.1 161 Paint and coating manufacturing 0.0 0,0 0.0 0.0 # 166 Toilet preparation manufacturing 0.0 0.0 0.1 0.2 173 Plastics pipe- fittings- and profile sh 0.0 0.1 0.0 0.2 177 Plasticsplambingfixmres ahd all othe 0.0 6.9 0.4 7.3 17.8 Foam produc! manufacturing 0.0 0.5 0.0 0.5 181 Other robber product manufacturing 0.0 0.0 0.0 0.0 # 183 Vitreous china and earthenware attic 0.0 0.0 0.0 0.0 # 192 Ready-mix concrete manufacturing 0.0 0.0 0.0 0.0 195 Other concrete product manufactufin 0.0 0.0 0.0 0.0 # 199 Cut stone and stone product manufac 0.0 0.0 0.0 0.0 # 206 Rolled steel shape manufacturing 0.0 7.6 0.0 7.6 221 Ferrous metal foundaries 0.0 1.0 0.0 1.0 222 Aluminum foundries 0.0 4.0 0.0 4.0 233 Fabricated structural metal manufact 0.0 0.0 0.0 0.0 *Dollars v~:~0,o~, Page # 1 Report IM020 Employment Impact IMPACTNAME: employ330 MULTIPLIER: Type I1 Co~,,~,t vao 2oo~ LearCorplowaCity. iap lndustry Direct* Indirect* lnduced* Total* 234 Plate work manufacturing 0.0 01 0,0 0.1 235 Metal window and door manufacturi 0.0 00 0.0 0.0 237 Ornamental and architectural metal 0,0 0.0 0,0 0,0 238 Power boiler and heat exchanger man 0.0 0.0 0.0 0.0 242 Spring and wire product manufacturi 0.0 0.4 0.0 0.4 243 Math!ne shops 0.0 9:8 0.1 9.8 244 Turned product and screw- nut- and O0 1.6 0.0 1.6 246 Metal coating and nonpreeious engra 0.0 0.0 0.0 0.0 247 Electroplating- anodizing- and coloti 0,0 0.5 0.0 0.5 248 Metal valve manufacturing 0.0 0.7 0.0 0.7 255 Miscellaneous fabricated metal produ 0,0 0,0 0,0 0.0 257 Farm machinery and equipment mann 0.0 0,0 0.0 0.0 259 Construction machinery manufacturi 0.0 0.1 0.0 0.1 266 Printing machinery and equipment m 0,0 0,0 0.0 0.0 271 O~tical instnunant and lens manufact 0.0 0.0 0.0 0.0 # 273 Other ¢ommoroial and service indust 0.0 0.2 0.0 0.2 280 Me/iai cutting machine tool manufact 0.0 0.1 0.0 0.1 292 Conveyor and conveying equipmem 0.0 0.1 0.0 0.1 311 Semiconductors and related device m 0.0 0.2 0.0 0.2 313 Eleo~rnmedical apparatus manufactur 0.0 0.0 0.0 0.0 314 Search- detection- and navigation in 0.0 0.0 0.0 0.0 319 Analytical laboratory instrument man 0.0 0.0 0.0 0.0 322 Software reproducing 0.0 0.0 0.0 0.0 327 Electric housewares and household f 0.0 0.0 0.0 0.0 333 Electric power and specialty Iransfo 0.0 0.0 0.0 0.0 336 Rainy and industr/al control manufac 0.0 0.0 0.0 0,0 347 Truck trailer manufacturing 0.0 0.0 0,0 0.0 349 Travel trailer and cmnpar manufactur 0.0 0.0 0.1 0.1 350 Motor vehicle pa~s manufacturing 330,0 5.2 0.1 335.3 362 Wood kitchen cabinet and countertop 0.0 0.1 0.1 0.1 364 Nonupholstemd wood household furn 0.0 0.0 0.0 0.0 371 Showcases- partition*- shelving- and 0.0 0.0 0.0 0.0 # 375 Surgical and medical instrument man 0.0 0.0 0.1 0.1 376 Surgical appliance and supplies manu 0.0 0.0 0.0 0.0 # 378 Ophthalmic goods manufacturing 0.0 0.0 0.0 0.0 # 379 Dental laboratories 0.0 0.0 0.1 0.1 380 Joweh3, and silverware manufacturin 0.0 0.0 0.0 0.0 381 Sporting and athletic goods manufact 0,0 0.0 0.0 0,0 # 382 Doll- toy- and game manufacturing 0.0 0.0 0,0 0.0 # 384 Sign manufacturing 0.0 0.0 0.0 0.0 386 Musical instrument manufacturing 0.0 0.0 0.0 0.0 # 387 Broom- brush- and mop manufaeturi 0.0 0.1 0.0 0.2 389 Buttom- pin*- and all other miscall 0.0 0.0 0.0 0.0 390 Wholesale trade 0.0 33,9 5.1 38.9 391 Air transportation 0.0 0,1 0.1 0.2 392 Rail mmspo~ation 0.0 0.3 0.0 0.3 394 Truck transportation 0.0 8.7 1.4 10.1 395 Transit and ground passenger transpo 0.0 0.5 0.6 1.1 396 Pipeline transportation 0.0 0,0 0.0 0.0 398 Postal service 0.0 1.5 0.8 2.3 399 Couriers and messengers 0.0 0.9 0,3 1,2 400 Warehousing and storage 0.0 2.5 0.2 2.7 401 Motor vehicle and parts dealers 0.0 0,3 4,8 5.1 402 Furniture and home furnishings store 0.0 0.1 1.6 1.7 403 Electronics and appliance stores 0.0 0.4 1.5 2.0 404 Building material and garden supply 0.0 0,6 2.7 3.3 405 Food and beverage stores 0.0 1,1 7.7 8.8 406 Health and personal care stores 0,0 0.6 2.3 2.8 407 Gasoline stations 0.0 0.2 2.6 2.8 408 Clothing and clothing accessories sto 0.0 0.3 4.8 5.1 409 Sporting goods- hobby- book and taus 0,0 0.4 2,0 2.4 410 General memhandise stores 0,0 0.6 7,8 8.4 *Dollars v.,~.~ .... Page # 1 Report IM020 Employment Impact UvlPACT NAME: employ330 MULTIPLIER: Type II Cong. ~o ~oos LearCorpIowaCity.iap Industry Direct* Indirect* Induced* Total* 411 Miscellaneous store retailers 0.0 0.6 4.1 47 412 Nonstore retailers 0.0 0.4 5.6 5.9 413 Newpaper publishers 0.0 1.0 0.7 1.7 414 Periodical publishers 0.0 0.0 0.0 0.1 415 Book publishers 0,0 0.0 417 So~vare publishers 0.0 0.0 0.0 0.0 # 418 Motion picture and video industries 0.0 0.4 0.4 0.8 419 Sound recording industries 0.0 0.0 0.0 0.0 420 Radio and television broadcasting 0.0 0.5 0.3 0,8 422 Telecommunications 0.0 2.0 1.1 3.1 423 Information services 0.0 0.1 0.0 424 Data processing services 0.0 1,4 0.1 1.5 425 Nondepository credit intermediatiun a 0.0 2.7 1.3 4.0 426 Securities- commodity contracts- inv 0.0 2.4 2.2 4.5 427 Insurance carders 0,0 0.5 2.0 2.5 428 Insurunc~ agencies- brokerages- and r 0.0 0.3 1.0 1.3 429 Funds- trusts- and other financial veh 0.0 0.0 0.l 0. 430 Mon~my authorities and depository c 0.0 2.4 3.6 6.0 431 Real estate 0.0 2.5 6.4 8.9 432 Automotive equipment rental and lea 0.0 0.;2 0.2 0.3 433 Video tape and disc rental 0.0 0.0 0,7 0,7 434 Machinery and equipment rental and 0,0 0.2 0.0 0.2 435 General and consumer goods rental ex 0.0 0.8 0.5 1.3 436 Le~ors of nonfinancial intangible ass 0.0 0.1 0.0 ' 0.1 437 L~gal services 0.0 1.2 2.0 3.1 438 Accounting and bookkeeping service 0.0 4.0 1.2 5.2 439 Asehit~tural and engineering service 0.0 8.9 0,5 9.4 440 Specialized design services 0.0 0.1 0,1 0.2 441 Custom computer programming servi 0.0 0.3 0.0 0.3 442 Computer systems design services 0.0 0.3 0.1 0.3 443 Other computer related services- inclu 0.0 0.3 0.0 0.3 444 Management consulting services 0,0 1.7 0.5 2.2 445 Environmenlal and other teclmJcal co 0.0 0.1 0.0 0. l 4~6 Scientific research and development s 0.0 14.4 0.5 14.9 447 Advertising and related services 0.0 0.3 0.2 0.6 448 Photographic services 0.0 0.0 0,4 0,5 449 Veterinary services 0.0 0.l 0.7 0.8 450 All other miscellaneous professional 0.0 4.7 0.2 4.9 451 Management of companies and enterp 0.0 2.8 0.3 3.1 452 Office administrative services 0.0 0.5 0,3 0.9 454 Employment services 0.0 3.7 2.1 5.7 455 Busine~ supporl services 0.0 2.1 1.2 3.3 456 Travel arrangement and reservation s 0.0 0.I 0.2 0.3 457 Investigation and security services 0.0 0.7 0.5 1 458 Services to buildings and dwellings 0.0 1.7 1.8 3.5 459 Other support services 0.0 0.1 0.1 0.2 460 Waste managameut and remediation s 0.0 0.8 0.3 1. 461 Elementm3' and seconda~ schools 0.0 0.0 1.3 t.3 462 Colleges- universities- and junior col 0.0 0.0 0.0 0.0 # 463 Other educetinnal services 0.0 0.7 0.6 1.3 464 Home health care services 0.0 0.0 0.9 0.9 465 Offices of physicians- dentists- and o 0.0 0.0 8.2 8.2 466 Other ambulatory health care services 0.0 0.0 1.7 1.7 467 Hospitals 0.0 0.0 4.8 4.8 468 Nursing and residential care facilities 0.0 0,0 8.5 8.5 469 Child day care services 0.0 0.0 4,7 4.7 470 Social assistance- excep! child day ca 0.0 0,0 5.9 5.9 ' 471 Performing arts companies 0.0 0.1 0.6 0.8 472 Spectator spor~s 0,0 0.4 0.5 0.8 473 Independent artists- writers- and per 0.0 0,4 0.1 0.5 474 Promoters of performing arts and spo 0.0 0,1 0.1 ' 0.2 475 Museums- historical sites- zoos- and 0.0 0.0 0,2 0.2 *Dollars ~,~o.,., Page # I Report IM020 Employment Impact IMPACT NAME: employ330 MULTIPLIER: Type H Copyashl Mio 2005 LearCorplowaCity.iap Industry Direct* Indirect* Induced* Total* 476 Fitness and recreational sports center 0.0 1.0 2.0 30 477 Bowling centers 0.0 0.0 0.2 0.2 478 Other amusement- gambling- and recr 0.0 0.1 26 27 479 Hotels and motels- including casino h 0,0 2.4 1.6 40 480 Other accommodations 0.0 0.0 0,2 0.2 481 Food services and drinking placas 0.0 5.8 24.2 30,0 482 Car washes 0.0 0.1 0,5 0.5 483 Automotive repair and maintenance- 0.0 6.1 4.7 10.8 484 Electronic equipment repair and mai 0.0 1.1 0.2 1,3 485 Commercial machinery repair and ma 0.0 2.5 0.2 2.7 486 Household goods repair and mainten 0.0 0.3 0.1 0.4 487 Personal care services 0.0 0.0 1.7 1,7 488 Death care services 0.0 0.0 0.5 0.5 489 Drycleardng and laundry services 0.0 0,1 0.5 0.7 490 Other personal services 0.0 0.0 0.3 0,3 491 Religious organizations 0.0 0.0 0.2 0.2 492 Onmtmaking and giving and social a 0.0 0.0 1.3 1.3 493 Civic- social- professional and simila 0.0 1.6 3.3 4.9 494 Private households 0.0 0.0 4.9 4.9 496 Other Federal Government enterprise 0.0 0.1 0.3 0.4 497 State and local government passenger 0.0 0.2 0.3 0.6 499 Other State and local government ente 0.0 0.8 1.8 2.7 330.0 189.8 185.1 704.8 *Dollars v,.~0,~, Page # 1 R~port IM020 Employment Impact IMPACT NAME: employ749 MULTIPLIER: Type II co~O~t v.~ ~s LearCorplowaCity.iap lndustry Direct* Indirect* induced* Total* 1 Oilseed farming 00 00 01 0.1 2 Grain farming 00 0.0 0.2 0.2 3 Vegetable and melon farming 0,0 0.0 0,0 0.0 4 Tree nut farming 0,0 0.0 0.0 0.0 5 Fruit fanmng 0.0 0.0 0,0 0.0 6 Greenhouse and nursery production 0,0 0.0 0.0 0.1 10 All other crop farming 0.0 0,1 0.1 0.:2 11 Cattle ranching and Arming 0.0 0.5 1.2 1.7 12 Poultry and egg production 0.0 0.0 0.0 0.0 13 Animal production- except cattle and 0,0 0.2 0.3 0.6 18 Agriculture and forestt3' support activ 0.0 0,1 0.2 0.3 24 Stone mining and quar~ing 0.0 0,0 0.0 0.0 # 25 Sand- IOavel- clay- and refractory mi 0.0 0.2 0.0 0.2 30 Power generation and supply 0,0 1.2 0.8 1.9 31 Natural gas distribution 0.0 0.1 0.0 0.1 42 Maintenance and repair of farm and 0.0 0.0 0.6 0.6 43 Maintenance and repair of nonr~sidan 0.0 5.1 1.6 6.7 45 Other maintenance and repair eonstm 0.0 0.2 0.4 0.6 47 Other animal food manufacturing 0.0 0.0 0.0 0.0 48 Flour mgling 0.0 0.0 0.0 0.0 # 54 Pats and oils refining and blending 0.0 0,0 0.0 0.0 61 Fruit and vegetable canning and dryi 0.0 0,0 0.0 0,0 62 Fluid milk manufacturing 0.0 0.0 0.3 0.3 64 Cheese manufacturing 0.0 0.0 0.2 0.3 67 Animal- except poultry- slaughtering 0,0 0,3 0,1 0.4 68 Meat processed from carcasses 0.0 0,1 0.1 0.2 69 Rendering and meat byproduct proce 0.0 0.1 0.0 0.1 73 Bread and bake~ product- except fr 0.0 0.1 1.3 1.4 85 Soft drink and ice manufacturing 0.0 0.0 0.0 0.0 # 86 Breweries 0.0 0.0 0.0 0.0 # 97 Textile and fabric finishing migs 0.0 0.7 0.0 0,8 101 Textile bag and canvas mills 0.0 0,0 0.0 0.0 107 Cut and sew apparel manufacturing 0.0 0,0 0.0 0,0 # 110 Footwear manufacturing 0.0 0.0 0.0 0.0 112 Sawmills 0.0 0.1 0.0 O. 1 116 Engineered wood member and truss m 0,0 0.1 0.0 0.1 117 Wood windows and door manufactur 0.0 0.0 0.0 0.1 120 Wood container and pallgt manufactu 0.0 1.8 0.1 1.9 122 Prefabricated wood building manufac 0.0 0,0 0.0 0.0 # 123 Miscellaneous wood product manufac 0.0 0.1 0.0 0.1 126 Paperboacd container manufacturing 0,0 O. 1 0.0 0.1 129 Coated and laminated paper and pack 0.0 0.4 0.t 0.5 131 Die-cut paper office supplies marmfa 0.0 0.0 0.0 0.0 136 Manifold business forms printing 0.0 0.1 0. l 0.2 139 Commercial printing 0.0 1.4 1.0 2.4 143 Asphalt paving mixture and block ma 0.0 0.0 0,0 0.0 # 158 FertiliT~r- mixing only- manufacturin 0.0 0.0 0.0 0.0 160 Pharmaceutical and medicine manufa 0.0 0.0 0.I 0.1 161 Paint and coating manufacturing 0.0 0.0 0.0 0.0 166 Toilet preparation manufacturing 0.0 0.0 0.3 0.4 173 Plastics pipe- fittings- and profile sh 0.0 0.3 0.0 0.3 177 Plastics plumbing fixtures and all othe 0.0 15.7 0.9 16.6 178 Foam product manufacturing 0.0 1.1 0.1 1.2 181 Other rubber product manufacturing 0.0 0.0 0.0 0.0 # 183 Vitreous china and earthenware attic 0,0 0.0 0.0 0.0 # 192 Ready-mix concrete manufacturing 0.0 0.0 0.0 0,0 195 Other concrete product manufacturin 0.0 0.0 0.0 0.0 # 199 Cut stone and stone product manufac 0,0 0.0 0.0 0.0 # 206 Rolled steel shape rmiaufacturing 0.0 17.3 0.0 17.3 221 Ferrous metal foundaries 0,0 2.4 0.0 2.4 222 Aluminum foundries 0.0 9.1 0.0 9,1 233 Fabricated structural metal manufact 0.0 0.0 0.0 0.0 *Dollars w~o~0~ Page # 1 Report IM020 Employment Impact , n 24,2oo5 IMPACT NAME: employ749 MULTIPLIER: Type Cop~ht mo ~oos LearCorplowaCity.iap Industry Direct* Indirect* Induced* Total* 234 Plate work manufacturing 0,0 0.2 00 0.2 235 Metal window and door manufactari 0,0 0.0 0.0 0.0 237 Ornamental and amhitectural metal 0.0 0.0 00 0,0 # 23 $ Power boiler and heat exchanger man 0.0 0,1 0.0 0 1 242 Spring and wixe product maunfacmri 0.0 0.8 0.0 0.9 243 Machine shops 0.0 22.2 0.1 22.3 244 Turned product and screw- nut- and 0.0 3.6 0,0 3,6 246 Metal coating and nonprecious engra 0.0 0.1 0.0 0.1 247 Electmplating- anodizing- and colori 0.0 1.2 0,0 1.2 248 Metal valve manufacturing 0.0 1,6 0.0 1.7 255 Miscellaneous fabricated metal produ 0.0 0.0 0.0 0.0 # 257 Farm machinery and equipment manu 0.0 0.0 0.0 0.0 # 259 ConsU'uction machinery manufactati 0,0 0.2 0.0 0.2 266 Printing machinery and equipment m 0.0 0.0 0,0 0.0 # 271 Optical insmunent and lens manufact 0.0 0.0 0.0 0.0 273 Other commercial and service indust 0,0 0.5 0.0 0.5 280 Metal cuing machine tool manufact 0.0 0.2 0.0 0.2 292 Conveyor and conveying equipment 0.0 0.1 0.0 0.1 311 Semiconductom and related device m 0.0 0.4 0.0 0.4 313 Blecffomethcal apparatus manufaetur 0.0 0.0 0.0 0.0 # 314 Search- detection- and navigation in 0.0 0.0 0.0 0.0 # 319 Analytical laboratory instmmetu man 0.0 0.0 0.0 0.0 # 322 Software reproducing 0.0 0,0 0.0 0,0 # 327 Electric housewarcs and household f 0.0 0,0 0.0 0.0 # 333 Electric power and specialty transfo 0.0 0.0 0.0 0.1 336 Relay and industrial control manufac 0.0 0.1 0.0 0.1 347 Truck ~railer manufacturing 0.0 0.0 0.0 0.0 # 349 Travel lzailer and camper manufactur 0.0 0.0 0.1 0.1 350 Motor vehicle paris manufacturing 749.0 11.9 0.2 761.1 362 Wood kitchen cabinet and countcrtop 0.0 0.I 0.1 0.3 364 Nonupholstured wood household rum 0.0 0.0 0.1 0.1 371 Showcases- partitions- shelving- and 0.0 0.0 0.0 0.0 # 375 Surgical and medical iastmment man 0.0 0.0 0.2 0.2 376 Surgical appliance and supplies manu 0.0 0.0 0.0 0.0 378 Ophthalmic goods manufacturing 0.0 0.0 0.1 0.1 379 Dental laboratories 0.0 0.0 0.2 0,2 380 Jewelry and silverwa~ manufactufin 0,0 0.0 0.0 0.0 # 381 Sporting and athletic goods manufact 0.0 0.0 0.0 0.0 # 382 Doll- toy- and game manufacturing 0.0 0.0 0.0 0.0 # 384 Sign manufacturing 0.0 0.0 0.0 0.0 # 386 Musical inslxument manufacturing 0.0 0.0 0.0 0.0 s 387 Broom- brush- and mop manufacturi 0.0 0.3 O. 1 0.4 389 Burtons- pins- and ag other miscall 0.0 0.0 0.0 0.0 390 Wholesale trade 0.0 76,9 11.5 88,4 391 Ak transportation 0.0 0.2 0.3 0.4 392 Rail transportation 0.0 0.6 0.1 0.7 394 Truck transportation 0,0 19.7 3.2 22.9 395 Transit and ground passenger transpo 0,0 1.1 1.4 2.5 396 Pipeline transportation 0.0 0.0 0.0 0.1 398 Postal service 0.0 3.4 1,8 5,2 399 Couriers and messengers 0.0 2.1 0.6 2.7 400 Warehousing and storage 0.0 5,8 0,4 6.1 401 Motor vehicle and parts dealers 0.0 0.7 10.8 I 1.5 402 Furniture and home f~mishings store 0.0 0.2 3.7 3,9 403 Electronics and appliance stems 0.0 1.0 3.5 4.5 404 Building material and garden supply 0.0 1.3 6.2 7.5 405 Food and beverage stores 0.0 2,5 17.5 19.9 406 Health and peranaal care stores 0.0 1,3 5.1 6A 407 Gasoline stations 0.0 0.4 6.0 6.5 408 Clothing and clothing accessories sro 0.0 0.7 10.8 11.6 409 Sporting goods- hobby- book and taus 0.0 0,9 4,5 5.4 410 General merchandise stores 0.0 1.5 17.7 19.1 *Dollars ,~,,0,o~ Page # 1 Report 13/I020 Employment Impact , .. y24,2oo5 IMPACT NAME: employ749 MULTIPLIER: Type Cop~h,~.o 2oos LearCorplowaCity.iap hdustry Direct* Indirect* Induced* Total* 411 Miscellaneous store retailers 00 1.3 9.3 10.6 412 Nonstore retailers 0.0 0.8 12.7 13.5 413 Newpaper publishers 0.0 24 1.6 39 414 Periodical publishers 0.0 0.1 0.1 0.2 415 Book publishers 0.0 0.0 0.0 0.0 417 Software publishers 0.0 0.0 0.0 0.1 418 Motion picture and video indus~es 0.0 0.8 0.9 1.7 419 Sound recording industries 0.0 0.0 0.l 0.1 420 Radio and television broadcasting 0.0 1.1 0.8 1.8 422 Telecommunications 0.0 4.6 2,4 7.1 423 Information services 0.0 0.1 0.0 0.2 424 Data processing services 0.0 3.1 0.3 3.4 425 Nondepository credit intermediation a 0.0 6.1 2.9 9.0 426 Securities- commodity contracts- inv 0.0 5.3 4.9 10.3 427 Insurance can/ers 0.0 1. I 4.6 5,8 428 Insurance agencies- brokerages- and r 0.0 0.6 2.4 3.0 429 Funds- trusts- and other financial veh 0.0 0.0 0.3 0.3 430 Monetary authorities and depositor3, c 0.0 5.5 8.1 13.6 431 Real estate 0.0 5.6 14.6 20.2 432 Automotive equipment rental and lea 0.0 0.4 0.4 0.7 433 Video tape and disc rental 0.0 0.0 1.5 1.6 434 Machinery and equipment rental and 0.0 0.4 0.1 0.5 435 General and consumer goods rental ex 0.0 1.9 1.0 2,9 436 Lessors of nonfinancial intangible ass 0.0 0,2 0,0 0.2 437 Legal services 0,0 2.7 4.4 7.1 438 Accounting and bookkeeping service 0.0 9.0 2.8 11.8 439 Architectaral and engineering service 0.0 20.3 1.2 21.4 440 Specialized design services 0,0 0.2 0.2 0.4 441 Custom computer progrenmUng servi 0.0 0.7 0.1 0.8 442 Computer systems design services 0.0 0.6 0.1 0.7 443 Other computer related services- inclu 0,0 0.6 0.1 0.7 444 Management consulting services 0.0 3.9 1.2 5.1 445 Environmental and other tecludcal co 0.0 0. I 0.1 0.2 446 Scientific research and development s 0.0 32.8 1.1 33.9 447 Advertising and related setwices 0.0 0.8 0.5 1.3 448 Photographic services 0.0 0.1 1.0 1.1 449 Veterinary services 0.0 0.1 1.7 1.8 450 All other miscellaneous professional 0.0 10.6 0.4 I 1.0 451 Management of companies and entevp 0.0 6.5 0.6 7.1 452 Office administrative services 0.0 1.2 0.8 2.0 454 Employment services 0.0 8.4 4.7 13.0 455 Business support services 0,0 4.8 2.7 7.5 456 Travel arrangement and reservation s 0.0 0.2 0.5 0.7 457 Investigation and security services 0.0 1.7 1.1 2.8 458 Services to buildings and dwellings 0.0 3.9 4.1 8.0 459 Other support services 0.0 0.3 0.2 0.5 460 Waste management and remediation s 0.0 1.8 0.6 2.4 461 Elemenlaxy and secondary schools 0.0 0.0 3.0 3.0 462 Colleges- universities- and junior col 0.0 0.0 0.0 0. l 463 Other educational services 0.0 1.6 1.3 2.9 464 Home health care services 0.0 0.0 2.0 2.0 465 Offices of physicians- dentists- and o 0.0 0.0 18.7 18.7 466 Other ambulatory health care services 0~0 0.0 3.8 3.8 467 Hospitals 0.0 0.0 10.9 10.9 468 Nursing and residential care facilities 0.0 0.0 19.2 19.2 469 Child day care services 0.0 0.0 10.7 10.7 470 Social assistance- except child day ca 0.0 0.0 13.4 13.4 471 Performing arts companies 0.0 0.3 1.5 1.8 472 Spectator sports 0.0 0.8 1.0 1.9 473 Independent artists- writers- and per 0.0 0.8 0.3 1.1 474 Promoters of performing arts and spo 0.0 0.3 0.3 0.5 475 Museums- historical sites- zoos- and 0.0 0.0 0.4 0.4 *Dollars w,o_ ..... Page # 1 Report 13/I020 Employment Impact IMPACT NAME: employ749 MULTIPLIER: Type II Co~:n~ht um ~oo~ LearCorplowaCity. iap Industry Direct* Jndirect* Induced* .Total* 476 Fitness and recreational sports center 0.0 2,2 4.6 6.7 477 Bowling centers 0.0 0.0 0.4 04 478 Other amusement- gambling- and recr 0.0 0.3 5.9 6.1 479 Hotels and motels- including casino h 0.0 5.5 3.6 9.1 480 Other accommodations 0.0 0.0 0.5 0.5 481 Food serx'ices and drinking places 0.0 1.3,2 55.0 68,1 482 Car washes 0.0 0.1 1.0 1.2 483 Automotive repair and maintenance- 0.0 13,9 10.6 24.6 484 Electronic equipment repair and mai 0.0 2.4 0.4 2.9 485 Commercial machinery repair and ma 0.0 5.7 0.4 6.2 486 Household goods repair and mainten 0.0 0.6 0.3 0.9 487 Personal care services 0.0 0.0 3.9 3.9 488 Death cm~ services 0.0 0.0 l.l 1.1 489 Drycleaning and laundry services 0,0 0.3 1,2 1.5 490 Other personal services 0.0 0.0 0.7 0.8 491 Religious organizations 0.0 0.0 0.3 0.3 492 Grantmaking and giving and .~ial a 0.0 0.0 3.0 3.0 493 Civic- social- professional and simila 0.0 3.7 7.5 11.1 494 Private households 0.0 0.0 11.2 11.2 496 Other Fedw~lal Government enteqnfise 0.0 0.3 0.6 0.8 497 State and local government passenger 0.0 0.6 0.8 1.3 499 Other State and local government ente 0.0 1.9 4.2 6.0 749.0 430.7 420.0 1,599.7 *Dollars w,.~o,~, Page # I Report IM020 Output Impact LearCorplowaCity.iap Co~y.,h~Mm :oo~ IMPACT NAME: sales156 MULTIPLIER: Type II Industry Direct* Indirect* Induced* Total* Deflator 1 Oilseed farming 0 449 5,698 6,147 1.00 2 Grain farming 0 1,895 14,362 16,257 1.00 3 Vegetable and melon farming 0 26 1,038 1,064 1.00 4 Tree nut farming 0 0 2 2 1.00 5 Fruit farming 0 4 876 880 1.00 6 Greenhouse and nursery production 0 659 8,780 9,440 1.00 10 All other crop farming 0 7,179 15,804 22,983 1.00 11 Cattle ranching and farming 0 62,459 139,654 202,113 1.00 12 Ponitxy and egg production 0 903 21,321 22,224 1.00 13 Animal production- except cattle and 0 22,816 33,636 56,452 1.00 18 Agriculture and forestry support activ 0 1,256 4,242 5,498 1.00 24 Stone mining and quamying 0 123 184 307 1.00 25 Sand- gravel- clay- and refractory mi 0 14,842 12 14,854 1.00 30 Power generation and supply 0 320,460 202,770 523,230 1.00 31 Natural gas distribution 0 48,609 29,692 78,301 1.00 42 Maintenance and repair of fasm and 0 4,002 64,325 68,326 1.00 43 Maintenance and repair of nonresiden 0 404,514 124,969 529,483 1.00 45 Ot~cr maintenance and repair constru 0 15,794 24,330 40,124 1.00 47 Other animal food manufacturing 0 527 2,034 2,561 1.00 48 Flour milling 0 66 3,305 3,371 1.00 54 Pats and oils refining and blending 0 24 345 369 1.00 61 Fruit and vegetable canning and dryi 0 24 458 482 1.00 62 Fluid milk manufacturing 0 4,643 104,637 109,280 1.00 64 Cheese manufacturing . 0 8,322 126,572 134,893 1.00 67 Animal- except poultry- slaughtering 0 103,724 50,679 t 54,404 1.00 68 Meat processed from carcasses 0 23,356 18,821 42,177 1.00 69 Rendering and meat byproduct proee 0 20,143 75 20,218 1.00 73 Bread and bakery product- except fi' 0 8,097 107,127 115,224 1.00 85 Soft drink and ice manufacturing 0 36 982 1,017 1.00 86 Breweries 0 35 1,105 1,140 1.00 97 Textile and fabric finishing mills 0 75,285 1,818 77,103 1.00 101 Textile bag and canvas mills 0 68 210 278 1.00 107 Cut and ~ew apparel manufacturing 0 784 2,690 3,475 1.00 110 Footwear manufacturing 0 0 3,420 3,420 1.00 112 Savaralls 0 14,891 2,781 17,672 1.00 116 Engineered wood member and truss m 0 9,359 4,634 13,993 1.00 117 Wood windows and door manufactur 0 5,791 3,894 9,685 1.00 120 Wood container and pallet manufactu 0 98,883 5,555 104,438 1.00 122 Prefabricated wood building manufac 0 620 96 715 1.00 123 Miscellaneous wood product manufac 0 8,854 3,576 12,430 1.00 126 Paperboard container manufacturing 0 20,965 1,093 22,058 1.00 129 Coated and laminated paper and pack 0 88,990 14,818 103,808 1.00 131 Die-cut paper office supplies manufa 0 57 13 70 1.00 136 Manifold business forms printing 0 18,301 9,409 27,710 1.00 139 Commemial printing 0 162,756 110,691 273,446 1.00 143 Asphalt paving mixtm'e and block ma 0 3,528 4,232 7,760 1.00 158 Fertilizer- mixing only- manufactudn 0 165 641 806 1.00 160 Pharmaceutical and medicine manufa 0 231 43,513 43,744 1.00 161 Paint and coating manufacturing 0 521 27 547 1.00 166 Toilet prepasati on manufacttu5 ng 0 22,323 154,191 176,514 1.00 173 Plastics pipe- fittings- and profile sh 0 35,063 2,981 38,045 1.00 177 Plastics plumbing fixtures and all othe 0 · 2,557,565 144,180 2,701,745 1.00 178 Foam product manufacturing 0 238,181 17,837 256,018 1.00 181 Other robber product manufacturing 0 4,740 81 4,821 1.00 183 Vitreous china and ca~'thenware attic 0 13 16 30 1.00 192 Ready-mix concrete manufacturing 0 270 291 561 1.00 195 Other concrete product manufacturin 0 266 164 430 1.00 199 Cut stone and stone product manufac 0 0 0 0 1.00 206 Roiled steel shape manufacturing 0 1,406,513 954 1,407,467 1.00 221 Ferrous metal foundarias 0 239,557 150 239,708 1.00 '2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) v.~,0~, Page # 1 Report IMOIO OUtput Impact LearCorplowaOity,iap copy,~ao ~oo~ IMPACT NAME: sales156 MULTIPLIER: Type II [nduslsy Direct* Indirect* Induced* Total* Deflator 222 Aluminum foundries 0 757,983 324 758,307 1 00 233 Fabricated structural metal manufaet 0 3,336 95 3,430 1.00 234 Plate work manufacturing 0 8,486 50 8,536 1.oo 235 Metal window and door manufacturi 0 1,425 56 1,481 1.00 237 Omamantal and architectural metal 0 1,975 60 2,035 1.00 238 Power boiler and heat exchanger man 0 11,263 77 11,340 1.00 242 Spring and wire product manufacturi 0 57,945 2,076 60,021 1.00 243 Machine shops 0 1,892,099 11,737 1,903,836 1.00 244 Turned'produnt and screw- nnt- and 0 343,524 761 344,285 1.00 246 Metal coaling and nonprecious engra 0 t 1,809 198 12,008 1.00 247 Electroplating- anodizing- and colori 0 33,312 478 33,790 1.00 248 Metal valve manufacturing 0 242,833 4,602 247,435 1.00 255 Miscellaneous fabricated metal produ 0 4,319 135 4,454 1.00 257 Farm machinery and equipmen~ manu 0 4,275 1,114 5,389 1.00 259 Construction machine~ manufacturi 0 34,754 2,474 37,227 1.00 266 Printing machinery and equipment m 0 4,589 925 5,514 1.00 27l Optical instxmnent and lens manufact 0 1,832 443 2,275 1.00 273 Other commercial and service indust 0 64,631 2,543 67,174 1.00 280 Metal cutting machine tool manufacl 0 28,717 365 29,083 1.00 292 Conveyor and conveyiag equipment 0 13,582 662 14,244 1.00 311 Semiconductors and related device m 0 745 5 749 1.00 313 Electromedical apparatus manufactur 0 44 4,254 4,299 1.00 314 Search- detection- and navigation in 0 1,028 270 1,298 1.00 319 Analytical laboratory iustmment man 0 396 365 761 1.00 322 Software reproducing 0 2,244 651 2,895 1.00 327 Electric housewares and household £ 0 3 39 42 1.00 333 Electric power and specialty transfo 0 4,144 591 4,734 1.00 336 Relay and industrial control manufac 0 7,954 124 8,077 1 347 Truck u-slier manufactuhng 0 332 2 ! 353 1.00 349 Travel hailer and camper manufactur 0 2,151 18,645 20,796 1.00 350 Motor vehicle parts manufacturing 156,000,000 2,471,552 46,343 158,517,888 1.00 362 Wood kitchen cabinet and countertop 0 7,078 8,689 15,768 1.00 364 Nonupholstered wood household furn 0 58 5,753 5,811 1.00 371 Showcases- part~tious- shelving- and 0 1,664 110 1,774 1.00 375 Surgical and medical instrument man 0 759 14,596 15,355 1.00 376 Surgical appliance and supplies manu 0 1,719 6,328 8,048 1.00 378 Ophthalmic goods manufacturing 0 1,938 7,064 9,001 1.00 379 Dental laboratories 0 68 10,461 10,529 1 380 Jewelry and silverware manufacturin 0 8 236 244 1.00 381 Sporting and athletic goods manufact 0 3 26 29 1 382 Doll- toy- and game manufacturing 0 0 2 2 1.00 384 Sign manufacturing 0 2,243 1,375 3,618 1.00 386 Musical instrument manufacturing 0 0 I 1 1.00 387 Broom- brush- and mop manufaeturi 0 46,243 10,134 56,377 1.00 389 Buttons- pins- and all other miscell 0 1,277 864 2,142 1.00 390 Wholesale trade 0 7,932,998 1,183,480 9,116,478 1.00 391 Air transportation 0 24,112 35,729 59,842 1.00 392 Rail transportation 0 217,723 29,345 247,068 1.00 394 Truck transportation 0 1,951,944 317,509 2,269,453 1.00 395 Transit and ground passenger transpo 0 19,170 25,485 44,655 1.00 396 Pipeline transportation 0 17,943 17,306 35,249 1.00 398 Postal service 0 228,909 123,221 352,130 1.00 399 Couriers and messengers 0 133,598 36,830 170,429 1.00 400 Warehousing and storage 0 256,848 16,872 273,720 1.00 401 Motor vehicle and parts dealers 0 48,439 733,231 781,669 1.00 402 Furniture and home furnishings store 0 9,810 212,470 222,280 1.00 403 Electronics and appliance stores 0 37,651 131,995 169,556 1.00 404 Building material and garden supply 0 71,975 342,983 414,958 1.00 405 Food and beverage sleses 0 104,640 740,130 844,771 1.00 406 Health and personal care stores 0 42,069 170,462 212,53 l 1 *2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) ~,~_0.,o~ Page # I Report [M010 Output Impact LearCorplowaCity.iap Co~, ~no ~0os IMPACTNAME: sales156 MULTIPLIER: Type II Industry Direct* Indirect* Induced* Total* Deflator 407 Gasoline stations 0 19,523 265,578 285,101 100 408 Clothing and clothing accessories sro 0 21,856 326,521 348,377 1 00 409 Sporting goods- hobby- book and taus 0 32,771 169,784 202,555 1 410 Ganeml memhandise stores 0 48,168 582,249 630,416 1.00 4t 1 Miscellaneous store retailers 0 49,658 342,437 392,096 1.00 412 Nonstore retailers 0 20,756 321,633 342,389 1.00 413 Newpaper publishers 0 160,398 106,559 266,957 1.00 414 Periodical publishers 0 11,996 13,446 25,442 1.00 415 Book publishers 0 936 9,084 10,020 1.00 417 Software publishers 0 3,378 4,041 7,419 1.00 418 Motion picture and video industries 0 58,533 64,243 122,776 1.00 419 Sound recording industries 0 1,126 12,370 13,495 l.O0 420 Radio and television broadcasting 0 125,748 92,180 217,928 1.00 422 Telecommunications 0 809,231 429,052 1,238,283 1.00 423 Information services 0 13,701 3,350 17,051 1.00 424 Data processing services 0 219,124 23,525 242,650 1.00 425 Nundepository credil intermediatiun a 0 380,263 183,734 563,997 1.00 426 Seoutifies- commodity cunlrac~- inv 0 222,070 204,638 426,709 1.00 427 Insurance carders 0 148,614 599,698 748,312 1.00 428 Insurance agencies- brokerages- and r 0 41,496 163,385 204,881 1.00 429 Funds- trusts- and other financial veh 0 356 66,762 67,118 1.00 430 Monetary authorities and depository c 0 772,042 1,133,083 1,905,125 1.00 431 Real estate 0 652,302 1,688,218 2,340,521 1.00 432 Automotive equipment rental and lea 0 45,887 41,515 87,403 1.00 433 Video tape and disc rental 0 485 30,536 31,022 1.00 434 Machinery and equipment rental and 0 130,356 24,297 154,653 1.00 435 General and consumer goods rental ex 0 80,325 44,082 124,407 1.00 436 Lessors of nonfinancial intangible ass 0 1,510,069 113,755 1,623,824 1.00 437 Legal services 0 101,390 169,168 270,557 1.00 438 Accounting and bookkeeping service 0 301,519 93,956 395,475 1.00 439 Architectural and engineering service 0 1,144,914 65,192 1,210,105 1.00 440 Specialized design services 0 49,077 31,279 80,355 1.00 441 Custom computer programming servi 0 32,129 3,396 35,525 1.00 442 Computer systems design services 0 53,867 11,488 65,355 1.00 443 Other computer related services- inclu 0 25,588 4,413 30,000 1.00 444 Management consulting services 0 267,697 83,683 351,380 1.00 445 Environmnnlal and other technical eo 0 9,098 4,585 13,684 1.00 446 Scientific research and development s 0 819,075 28,515 847,590 1.00 447 Advertising and related services 0 41,313 25,592 66,905 1.00 448 Photographic services 0 2,628 22,858 25,487 1.00 449 Veterinary services 0 5,454 69,606 75,060 1.00 450 All other miscellaneous professional 0 586,399 21,955 608,353 1.00 451 Management of companies and eoterp 0 486,472 45,233 531,704 1.00 452 Office administrative services 0 98,423 62,342 160,765 1.00 454 Employment services 0 126,362 70,864 197,226 1.00 455 Business support services 0 149,191 83,049 232,240 1.00 456 Travel arrangement and reservation s 0 12,852 31,038 43,890 1.00 457 Investigation and sesutity services 0 34,917 22,411 57,328 1.00 458 Services to buildings and dwellings 0 98,386 103,503 201,889 1.00 459 Other support services 0 11,172 5,863 17,035 1.00 460 Waste management aM remedialion s 0 199,880 66,990 266,870 1.00 461 Elementary and secondary schools 0 0 72,480 72,480 1.00 462 Colleges- universities- and junior col 0 491 1,354 1,845 1.00 463 Other educational services 0 70,406 59,905 130,311 1.00 464 Home health care services 0 0 87,294 87,294 1.00 465 Offices of physicians- dentists- and o 0 0 1,739,667 1,739,667 1.00 466 Other ambulatory health care services 0 385 521,344 521,729 1.00 467 Hospitals 0 0 1,025,225 1,025,225 1.00 468 Nursing and residential care facilities 0 0 641,781 641,781 1.00 469 Child day care services 0 0 211,404 211,404 1.00 '2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) v.~0.,0~, Page # I Report IM010 Output Impact LearCorplowaCity,iap co~a~4m 2~os IMPACTNAME: sales156 MULTIPLIER: Type II Industry Direct* Indirect* Induced* Total* Deflator 470 Social assistance- except child day ca 0 35 243,313 243,348 1.00 471 Performing arts companies 0 3,719 17,184 20,904 1.00 472 Spectator sports 0 8,365 10,663 19,028 ! .00 473 Independent artists- writers- and per 0 54,071 19,912 73,983 1.00 474 Promoters of performing arts and spo 0 4,512 4,976 9,488 ! .00 475 Museums- historical sites- zoos- and 0 0 19,199 19,199 1.00 476 Fitness and recreational sports center 0 20,744 43,391 64,135 1.00 477 Bowling centers 0 7 7,713 7,721 1 478 Other amusement- gambling- and mcr 0 10,211 216,531 226,742 1.00 479 Holels and motels- including casino h 0 240,031 157,234 397,265 1.00 480 Other accommodations 0 1,536 50,704 52,240 1.00 481 Food services and drinking places 0 432,299 1,803,511 2,235,810 1.00 482 Car washes 0 2,806 21,460 24,267 1.00 483 Automotive repair and maintanance- 0 1,362,707 1,041,272 2,403,979 1.00 484 Electronic equipment repair and mai 0 272,284 46,747 319,031 1.00 485 Commercial machinery repair and ma 0 369,842 28,363 398,206 1.00 486 Household goods repair and mainten 0 59,025 30,036 89,061 1.00 487 Penonal care services 0 0 169,866 169,866 1.00 488 Death cam services 0 0 81,618 81,618 1.00 489 DrycleanJng and laundry services 0 8,893 31,621 40,514 1.00 490 Other personal services. 0 3,138 66,681 69,820 1.00 491 Religious organizations 0 0 40,426 40,426 1.00 492 Grantmaking and giving and social a 0 0 73,956 73,956 1.00 493 Civic- social- professional and simila 0 80,115 162,592 242,707 1.00 494 Private households 0 0 101,290 101,290 1.00 496 Other Federal Government enterprise 0 17,185 39,709 56,894 1.00 497 State and local government passenger 0 2L143 28,321 49,463 1.00 499 Other State and local government ente 0 267,421 588,259 855,680 1.00 509 Owner-occupied dwellings 0 0 3,931,808 3,931,808 1.00 Total 156,000,000 36,814,038 27,550,415 220,364,446 *2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) ~.~ ....... Page # 1 Report IMOIO Output Impact LearCorplowaCity,iap co~vn~,t ~o ~oo~ IMPACT NAME: sales280 MULTIPLIER: Type II Industry · Direct* Indirect* Induced* Total* Deflator 1 Oilseed farming 0 806 10,227 11,033 1.00 2 Grain fanning 0 3,401 25,778 29,179 1.00 3 Vegetable and melon fanning 0 47 1,864 1,911 1.00 4 Tree nut farming 0 0 4 4 1.00 5 Frail farrmng 0 8 1,571 1,579 1.00 6 Greenhouse and nursery production 0 1,183 15,760 16,943 1.00 10 All olher crop famUng 0 12,886 28,365 41,251 1.00 11 Cattle ranching and fanning 0 112,105 250,661 362,767 1.00 12 Poultry and egg production 0 1,621 38,269 39,889 1.00 13 Animal production- except cattle and 0 40,951 60,372 101,324 1.00 18 Agriculture and foresU3' support activ 0 2,255 7,614 9,869 1 24 Stone mining and quanying 0 220 330 550 1.00 25 Sand- gravel- clay- and refractory mi 0 26,640 22 26,662 1.00 30 Power generation and supply 0 575,184 363,946 939,131 1.00 31 Natural gos distribution 0 87,246 53,294 140,540 1.00 42 Maintenance and repair of farm and 0 7,182 115,455 122,637 1.00 43 Maintenance and repair of nonresiden 0 726,050 224,304 950,354 1.00 45 Other maintenance and repair constru 0 28,348 43,670 72,018 1.00 47 Other animal food manufacturing 0 946 3,651 4,597 1.00 48 Flour milling 0 119 5,933 6,051 1.O0 54 Fats and oils refining and blending 0 43 619 662 1.00 61 Fruit and vegetable canning and dryi 0 42 822 865 1.00 62 Fluid milk manufacturing 0 8,333 187,810 196,143 1.00 64 Cheese manufacturing 0 14,937 227,180 242,116 1.00 67 Animal- except poultry- slaughtering 0 186,172 90,963 277,135 1.00 68 Meat processed from carcasses 0 41,921 33,781 75,703 1.00 69 Rendering and meat byproduct proce 0 36,155 134 36,289 1.00 73 Bread and bakery product- except fr 0 14,533 192,279 206,812 1.00 85 Soft drink and ice manufacturing 0 64 1,762 1,826 1.00 86 Breweries 0 63 1,984 2,047 1.00 97 Textile and fabric finishing mills 0 135,127 3,263 138,389 1.00 101 Textile bag and canvas mills 0 123 377 500 1.00 107 Cut and sew apparel manufacturing 0 1,408 4,829 6,237 1.00 110 Footwear manufacturing 0 0 6,138 6,138 1.00 112 Sawmills 0 26,727 4,992 31,720 1.00 116 Engineered wood member and tress m 0 16,798 8,317 25,115 1.00 117 Wood windows and door manufactur 0 10,394 6,989 17,384 1.00 120 Wood container and pallet manufactu 0 177,482 9,971 187,453 1.00 122 Prefabricated wood building manufac 0 1,112 172 1,284 1.00 123 Miscellaneous wood product manufac 0 15,892 6,418 22,310 1.00 126 Paperboard container manufacturing 0 37,630 1,962 39,591 1.00 129 Coated and laminated paper and pack 0 159,725 26,597 186,322 1.00 131 Die-cut paper office supplies manufa 0 103 23 126 1.00 136 Manifold business forms printing 0 32,848 16,888 49,737 1.00 139 Commercial printing 0 292,126 198,675 490,801 1.00 143 Asphalt paving mixture and block ma 0 6,332 7,597 13,929 1.00 158 Fertilizer. mixing only- manufacturin 0 296 1,151 1,447 1.00 160 Pharmaceutical and medicine manufa 0 414 78,100 78,514 1.00 161 Paint and coating manufacturing 0 935 48 982 1.00 166 Toilet preparation manufacturing 0 40,067 276,753 316,820 1.00 173 Plastics pipe- fittings- and profile sh 0 62,934 5.351 68,285 1 00 177 Plastics plumbing fixtures and all othe 0 4,590,501 258,785 4,849,286 1.00 178 Foam product manufacturing 0 427,504 32,016 459,520 1.00 181 Other robber product manufacturing 0 8,508 145 8,652 1.00 183 Vitreous china and earthenware attic 0 24 29 54 1.00 192 Ready-mix concrete manufacturing 0 485 522 1,007 1.00 195 Other concrete product manufacturin 0 477 295 772 1.00 199 Cut stone and stone product manufac 0 0 0 0 1.00 206 Rolled steel shape manufacturing 0 2,524,511 1,712 2,526,223 1.00 221 Ferrous metal foundaries 0 429,975 270 430,245 1.00 '2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) ......... Page # 1 Report IM010 Output Impact LearCorplowaCity.iap co~y~t ~o 2oos IMPACT NAME: sales280 MULTIPLIER: Type II Industry .Direct* Indirect* Induced* Total* Deflator 222 Aluminum foundries 0 1,360,482 582 1,361,064 1.00 233 Fabricated structural metal manufact 0 5,987 170 6,157 1,00 234 Plate work manufacturing 0 15,232 89 15,321 1.00 235 Metal window and door manufactur~ 0 2,558 100 2,658 1.00 237 Ornamental and architectural metal 0 3,544 107 3,652 1.00 238 Power boiler and heat exchanger man 0 20,215 139 20,354 1.00 242 Spring and wire product manufacturl 0 104,005 3,726 107,730 1.00 243 Machine shops 0 3,396,075 21,067 3,417,142 1.00 244 Turned product and screw- nut- and 0 616,582 1,365 617,947 1.00 246 Metal coating and nonprecions engra ' 0 21,196 356 21,552 1.00 247 Electroplaling- anodizing- and colori 0 59,790 859 60,649 1.00 248 Metal valve manufacturing 0 435,854 8,260 444,114 1.00 255 Miscellaneous fabricated metal produ 0 7,752 243 7,995 1.00 257 Farm machinery and equipment manu 0 7,673 2,000 9,673 1.00 259 Construction machinery raanufacturi 0 62,378 4,440 66,818 1.00 266 Printing machinery and equipment m 0 8,237 1,660 9,897 1.00 271 Optical iustrmnent and lens manufact 0 3,288 795 4,083 1.00 273 Other commercial and service indust 0 116,005 4,564 120,569 1.00 280 Metal cuing machine tool manufact 0 51,544 655 52,199 1.00 292 Conveyor and conveying equipment 0 24,378 1,188 25,566 1.00 311 Semiconductors and related device m 0 1,337 8 1,345 1.00 313 Elec~rnedical apparatus manufactur 0 80 7,636 7,715 1.00 314 Search- detection- and navigation in 0 1,845 485 2,330 1.00 319 Analytical laboratory ins~xumant man 0 710 656 1,366 1.00 322 Software reproducing 0 4,029 1,168 5,197 1.00 327 Electric hunsewams and household f 0 5 71 76 1.00 333 Electric power and specialty transfo 0 7,437 1,060 8,498 1.00 336 Relay and industrial control manufac 0 14,276 222 14,498 1.00 347 Truck trailer manufacturing 0 596 37 633 1.00 349 Travel Iraller and camper manufactur 0 3,862 33,465 37,326 1.00 350 Motor vehicle parts manufacturing 280,000,000 4,436,128 83,179 284,519,296 1.00 362 Wood kitchen cabinet and countertop 0 12,705 15,596 28,301 1.00 364 Nonupholstercd wood houseb, old furn 0 104 10,326 10,430 1.00 371 Showcases- partitions- shelving- and 0 2,986 197 3,183 1.00 375 Surgical and medical instana'nant man 0 1,362 26,197 27,560 1.00 376 Surgical appliance and supplies manu 0 3,086 11,359 14,444 1.00 378 Ophthalmic goods manufacturing 0 3,478 12,678 16,156 1.00 379 Dental laboratories 0 121 18,776 18,898 1.00 380 Jewelry and silverware munufacturin 0 15 423 438 1.00 381 Sporting and athletic goods manufact 0 6 47 53 1.00 382 Doll-toy- and game manufacturing 0 0 4 4 1.00 384 Sign manufacturing 0 4,025 2,468 6,494 1.00 386 Musical instxument manufacturing 0 0 I I 1.00 387 Broom- brush- and mop manufacturi 0 83,000 18,189 101,189 1.00 389 Buttons- pins- and all other miscall 0 2,293 1,551 3,844 1.00 390 Wholesale trade 0 14,238,715 2,124,196 16,362,910 1.00 391 Air transportatiun 0 43,278 64,130 107,408 1.00 392 Rail transportation 0 390,785 52,671 443,456 1.00 394 Truck transpoflation 0 3,503,490 569,888 4,073,378 1.00 395 Transit and ground passenger transpo 0 34,408 45,741 80,149 1.00 396 Pipeline transportahon 0 32,205 31,063 63,268 1.00 398 Postal service 0 410,863 221,165 632,028 1.00 399 Couriew and messengers 0 239,792 66,106 305,898 1.00 400 Warehousing and storage 0 461,009 30,283 491,292 1.00 401 Motor vehicle and parts dealers 0 86,942 1,316,055 1,402,996 1.00 402 Funsiture and home furnishings store 0 17,607 381,356 398,964 1.00 403 Electronics and appliance stores 0 67,579 236,752 304,331 1.00 404 Building material and garden supply 0 129,186 615,611 744,796 1.00 405 Food and beverage stores 0 187,816 1,328,439 1,516,255 1.00 406 Health and personal care stores 0 75,508 305,958 381,467 1.00 '2001 Dollars - if results are deflated and ag~egated, then deflators displayed are set to 1.0 (results have been deflated) ......... Page # 1 Report IM010 Output Impact J .. 2,.2oo5 LearCorplowaCity.iap co~,~uo 20os IMPACTNAME: sales280 MULTIPLIER: Type Il Industry Direct* Indirect* Induced* Total* Deflator 407 Gasoline stations 0 35,041 476,679 511,719 1 00 408 Clothing and clothing accessories sro 0 39,228 586,063 625,291 1.00 409 Sporting goods- hobby- book and mus 0 58,819 304,740 363,560 1.00 410 C~neral merchandise slores 0 86,455 1,045,062 1,13.1,517 1.00 411 Miscellaneous store rerailers 0 89,131 614,631 703,761 1.00 412 Nons~ore retailers 0 37,254 577,290 614,544 1.00 413 Newpaper publishers 0 287,894 191,259 479,153 1.00 414 Periodical publishers 0 21,532 24,133 45,665 1 415 Book publishers 0 1,679 16,305 17,984 1.00 417 Software publishers 0 6,063 7,253 13,316 1.00 418 Motion picture and video industries 0 105,059 115,308 220,367 1.00 419 Sound recording industries 0 2,020 22,202 24,223 1.00 420 Radio and television broadcasting 0 225,702 165,450 391,153 1.00 422 Telecommunications 0 1,452,467 770,093 2,222,559 1.00 423 Information services 0 24,59l 6,013 30,605 1.00 424 Data processing services 0 393,300 42,225 435,525 1.00 425 Nondepositary credit intermediation a 0 682,523 329,780 1,012,303 1.00 426 Securities- commodiB, contracts- inv 0 398,588 367,299 765,887 1.00 427 Insurance can'icrs 0 266,743 1,076,380 1,343,123 1.00 428 Insurance agencies- brokerages- and r 0 74,480 293,255 367,734 1.00 429 Funds- txusts- and other financial veh 0 638 119,830 120,468 1.00 430 Monetary authoriti~ and depository c 0 1,385,716 2,033,739 3,419,455 1.00 431 Real estate 0 1,170,799 3,030,136 4,200,934 1.00 432 Automotive equipment rental and lea 0 82,362 74,515 156,877 1.00 433 Video tape and disc r~ntal 0 871 54,809 55,680 1.00 434 Machinery and equipment rental and 0 233,973 43,610 277,583 1.00 435 C~neanU and consumer goods rental ex 0 144,172 79,122 223,295 1.00 436 Lessors of nonfinancial intangible ass 0 2,710,380 204,175 2,914,555 1.00 437 Legal services 0 181,981 303,635 485,616 1.00 438 Accounting and bookkeeping service 0 541,I 88 168,639 709,827 1.00 439 Architec~u~ and engineering service 0 2,054,973 117,011 2,171,984 1.00 440 Specialized design services 0 88,086 56,141 144,228 1.00 441 Custom computer programming servi 0 57,668 6,095 63,763 1.00 442 Computer systems design servic~ 0 96,685 20,619 117,304 1.00 443 Other computer related se~ices- inclu 0 45,927 7,920 53,847 1.00 444 Management consulting services 0 480,482 150,200 630,682 1.00 445 Environmental and olher technical co 0 16,330 8,230 24,560 1.00 446 Scientific research and development s 0 1,470,134 51,181 1,521,315 1.00 447 Advertising and related sauces 0 74,152 45,934 120~086 1.00 448 Photographic services 0 4,717 41,028 45,745 1.00 449 Yeterinmy services 0 9,790 124,933 134,723 1.00 450 All other miscellaneous professional 0 1,052,510 39,406 1,091,916 1.00 451 Maungemant 0fcompanies and anterp 0 873,154 81,187 954,341 1.00 452 Office administrative services 0 176,657 111,896 288,553 1.00 454 Employment services 0 226,804 127,191 353,995 1.00 455 Business support services 0 267,779 149,062 416,842 1.00 456 Travel an-angement and reservation s 0 23,068 55,710 78,778 1.00 457 Inv~tigation and security services 0 62,672 40,226 102,897 1 458 Services to buildings and dwellings 0 176,591 185,774 362,365 1.00 459 Other support services 0 20,052 10,524 30,576 1.00 460 Waste management and remediation s 0 358,758 120,239 478,997 1 90 461 El~mentsry and secondary schools 0 0 130,092 130,092 1.00 462 Colleges- universities- and junior col 0 881 2,430 3,311 1.00 463 Other educational services 0 126,369 107,522 233,891 1.00 464 Home health care services 0 0 156,682 156,682 1.00 465 Offices of physicians- dentists- and o 0 0 3,122,479 3,122,480 1.00 466 Other ambulatory health errs services 0 690 935,746 936,437 1.00 467 Hospitals 0 0 1,840,147 1,840,147 1.00 468 Nursing and msidantial care facilities 0 0 1,151,914 1,151,914 1.00 469 Child day care services 0 0 379,444 379,444 1.00 '2001 Dollars - if results are deflated and aggregated, then deflators displayed are set to 1.0 (results have been deflated) Page # I Report IM010 Output Impact LearCorplowaCity.iap Co~y~ht MIa 2005 IMPACT NAME: sales280 MULTIPLIER: Type II Industry Direct* Indirect* Induced* Total* Deflator 470 social assistance- except child day ca 0 63 436,715 436,778 1 471 Performing arts companies 0 6,676 30,843 37,519 1.00 472 Spectator sports 0 15,014 19,139 34,153 1.00 473 Independent artists- writers- and per 0 97,050 35,740 132,790 1.00 474 Promoters of performing arts and spo 0 8,098 8,932 17,030 t.00 475 Museums- historical sites- zoos- and 0 0 34,460 34,460 1.00 476 Fitness and recreational sports center 0 37,232 77,881 115,114 1.00 477 Bowling centers 0 13 13,845 13,858 1.00 478 Other amusement- gambling- and rear 0 18,327 388,645 406,972 1.00 479 Hotels and motels- including casino h 0 430,824 282,215 713,039 1.00 480 Other accommodations 0 2,757 91,008 93,765 1.00 481 Food services and drinking places 0 775,922 3,237,071 4,012,993 1.00 482 Car washes 0 5,037 38,519 43,556 1.00 483 Automotive repair and maintenance- 0 2,445,884 1,868,950 4,314,834 1.00 484 Electronic equipment repair and mai 0 488,715 83,905 572,621 1.00 485 Commercial machiner~ repair and ma 0 663,820 50,909 714,728 1.00 486 Household goods repair and maimen 0 105,943 53,910 159,853 1.00 487 Personal car~ services 0 0 304,887 304,887 1.00 488 Death ca~ services 0 0 146,495 146,495 1.00 489 Dryclenming and laundry services 0 15,962 56,755 72,717 1.00 490 Other permnal servieas 0 5,633 119,684 125,317 1.00 491 Religious orgamzations 0 0 72,559 72,559 1.00 492 Grantmaking and giving and social a 0 0 132,741 132,741 1.00 493 Civic- social- professional and simile 0 143,796 291,831 435,627 1.00 494 Private households 0 0 181,803. 181,803 1.00 496 Other Federal Government enterprise 0 30,845 71,272 102,117 1.00 497 State and local government passenger 0 37,948 50,832 88,780 1.00 499 Other State and local government ante 0 479,987 1,055,849 1,535,836 1.00 509 Owner-occupied dwellings 0 0 7,057,091 7,057,091 1.00 Total 280,000,000 66,076,488 49,449,463 395,525,939 *2001 Dollars - if results are deflated and aggregated, then deflators displayed are set lo 1.0 (results have been deflated) v,,~.,o,, Page # 1 Report IMOIO Attachment 4 From: LEAR BROADCAST To: World Wide Employees Date: 2/9/05 ll:56am Subject: Press Release - Lear Works 'with GM to Develop Interiors and Electronics For New cadillac DTS and Bui General Motors Corporation today unveiled its all new Cadillac DTS and Buick Lucerne models at the Chicago Auto Show featuring complete interiors designed and developed by Lear Corporation in the first-ever collaborative effort between GM and one of its suppliers for a total interior. In 2002, Lear was awarded total interior responsibility to work with GM to jointly design, source and engineer the interiors for a pair of the automaker's 2006-model luxury cars. The rationale was simple: legerage Lear's considerable expertise in vehicle interiors to create elevated levels of harmony, craftsmanship and quality perception in GM's upscale luxury vehicles. The project involves an unprecedented level of teamwork and cooperation between GM and Lear. Involvement in the early stages of the program allowed Lear to interface with the vehicles as a whole as it worked hand-in-hand with GM's engineering and program teams over the past three years to provide critical input for the content, design and production processes that were selected for these vehicles. Lear will provide approximately 80 percent of the interior content for the program and will also integrate components from other suppliers. In addition to the interior content, Lear also supplies 100 percent of the wire harness and bussed electrical centers. In total, more than 1,500 part numbers will be supplied in five colors sequenced from various Lear-controlled distribution centers. "The GM program illustrates that Lear is recognized as a true leader among interior suppliers and can balance the quality, design, cost and manufacturing imperatives to deliver a total design to exceed the industry's best efforts to date," said Bob Rossiter, Lear Chairman and Chief Executive Officer. Among the benefits to GM are lower cost and improved quality by getting Lear involved in balancing and managing the myriad of variables to achieve the optimum combination of interior components, based on its extensive experience as an interior provider. All design work was completed by the Lear engineering team while sourcing decisions were cooperatively made between Lear and GM Purchasing. Premium materials and processes were carefully selected for the DTS and Lucerne interiors to allow them to compete among the best nameplates in the premium luxury segment. The vehicles are equipped with extremely comfortable leather seating, with optional 100 percent leather upgrade to semi-aniline leather on the DTS. The interiors also feature expansive use of real wood and chrome accents throughout the cockpit, lending a jeweled effect to the console and LED lighting adds to the overall premium effect and customer "wow" appeal of the interior. Hand-wrapped door armrests and inserts add a soft touch and appeal to the consumer. In addition, the DTS and Lucerne feature a number of Lear innovations, including Lear's Flexible Seating Architecture (LFSA), and Spray PUR (tm), a seamless polyurethane coating for the instrument panels. The major benefit of LFSA is in the cost savings achieved by using a common seat architecture across multiple platforms as opposed to the traditional approach of designing separate seat structures for each vehicle. Lear's Spray PLrR technology provides best-in-class grain and gloss performance for instrument panels and eliminates the visual seams for air bag compartments. "This kind of ability to respond to customer needs with the full capability of the Lear portfolio of products, production and services is one reason why Lear is a leading player among interior and electrical system suppliers," said Rossiter. "Lear's total interior capability will continue to drive future new business wins and increased content per vehicle." Lear is also conducting total interior programs on an exclusive, low-volume scale on vehicles with highly visible launches, such as the Ford GT and the Maserati Quattroporte. In the case of the current Chevrolet HHR, Volvo XC90 and Mahindra & Mahindra Scorpio, Lear's role was systems integrator, supplying partial content, manufacturing, sub-assembly, sequencing and some engineering while the design and sourcing were directed by the manufacturer, with the Mazda RX-8 sports car, Lear is putting its knowledge as a pure integrator to work, without providing major content. Lear Corporation, a Fortune 500 company headquartered in Southfield, Mich., USA, focuses on integrating complete automotive interiors, including seat systems, interior trim and electrical systems. With annual net sales of $17 billion in 2004, Lear is one of the world's largest automotive interior systems suppliers. The company's world-class products are designed, engineered and manufactured by more than 110,000 employees in 34 countries. Further information about Lear and its products is available on the internet at www.lear.com. Attachment A1 inside 3 I~1~ letter to our shareholders 4 1,1~ putting customers first 9 I,~ focusing on operational excellence '2 ~ growing ourlntertronics®portfolio 44 ~ reaching global markets 17 ~ integrating total interiors 20 ~ delivering shareholder value 21 1~1~ form 10-K a history of customer focus What helped Lear Corporation grow {rom a small seat-frame manufacturer formed in 1917, under the name of American Metal Products, to the largest automotive interior supplier in the world? The answer is a culture that focuses on the needs of customers. Today, that customer focus has led to 289 facilities in 34 countries, with 111,000 employees worldwide, and record annual net sales of $15.7 billion in 2003. Lear has consistently responded to the needs of automakers as the demands of the marketplace have changed. With 17 strategic acquisitions since 1994, combined with dynamic internal growth, Lea r has gained total capabilities in all five principal interior product sys- tems: seating; flooring and acoustics; door panels; instrument panels and cockpits; and overheads. We are also one of the leading global automotive suppliers in electronic and electrical products. Headquartered in Southfield, Michigan, USA, Lear is now the leader in the fastest-growing product segment of the automotive industry-- interiors-- and can serve customers worldwide with any level of interior integration they require. record net sales of $15.7 billion letter to our shareholders We will continue leveraging our Itwas another year of putting In Europe, we continued total automotive growth worldwide and gen- ourcustomersfirstatLear-- to improve our business interior eratings,trong cashflow. In with impre~?e results. In ad- structure and grow market capabilities to North. America, that means dition to record sales and share. We furthered our everaging our leadership deliver value to earnings, we achieved in- credibilitywith Asian manu- position in total interiors. In · ' our customers and ' vestmer)t grade credit rat- facturers and expanded our profitably grow Europe~ we see 9rowth in ings with Standard & Poor's presence with them through our seating, electronics and our business, and Fitch Ratings, utilized strate9icjoint ventures and cockpit businesses. Our top stroh9 cash flow to further partnerships. '~ J priority, thou9h, is to a9- stren9then our balance sheet Additionally, we 9ener- tion from our major custom- 9ressively expand our busi- and declared our first-ever ated stron9 cash flow, ers for excellence in quality ness in Asia and 9row our quarterly dividend. We con- which allowed ustc reduce andcustomerservice. Forthe market share with Asian tinuedtoimproveourquality our debt even further -- fourthstrai9htyearwehave manufacturers globally. Over levels and launched our our net-debt-to-capital ra- shown improvements in au- the next several years, this "Quality First" initiative to tic is the lowest since the tomotive seat quality ac- will be the fastest-growin9 maintain our momentum, company went public, cordin9 to the J.D. Power and part of our business. profitable growth quality and service Associates 2003 Seat Quality deliverin9 value During2003, wecontinuedto Quality and customer set- Repo~M. And we were rec- To summarize: In 2003, we grow our business profitably, vice remained our top pri- ognized by FORTUNE'as delivered record financial We maintained a leadership orities in 2003 and continue America's Most Admired performance and we im- position in North America, to drive our success. Our Company in Motor Vehicle proved quality and cus- our largest market. Our busi- operational excellence ini- Parts and the World's Most tomer satisfaction levels. nessthereis performing well tiatives improved quality, Admired Company in the We believe we have the -- quality continues to ira- cost, speed, innovation same category, right strategy in place to prove, and we are winning and customer satisfaction, future direction continue advancing auto- new business and improving During the year, we re- Our strategic focus is to con- motive interiors relentlessly our competitiveness, ceived awards and recogni- tinue pursuing profitable in 2004. Robert E. Rossiter James H. Vandenberghe David C. Wajsgras Chairman and CEO Vice Chairman Senior Vice President and CFC putting customers first A strong customer service quality first In 2003 Lear supported ethic is the foundation for Takin9propercareofcustom- launches of more than 120 everythin9 Lear does. It's ers would Jot be possible products in the Americas and the primary reason Lear has without a consistent emphasis 125 in Europe and Asia, in "We go the extra successfully built and main- on qualit¥ ©urfocus on opera- cluding the new Chevrolet mile for our tained strong customer tionalexcellencemakesitpos Corvette, CadiltacXLR, the customers -- this has relationships with automak- sibte to deti.¢er products and new Ford F 150 pickup, Ford been our lifeblood ers throughout the world, servicesontimetoourcustom- GT, Chnysler Crossfire, Dodge It's ingrained in In 2003 our customer- ersatafair, competitive price. Durango, Chrysler Pacifica, everybody at Lear, focused strategy resulted Lear has always been a Mercedes SLK, Volvo XCg0, ~nd it's ~ competitive in significant new-business high-quality producer. In Maserati Guattroporte, Saab advantage." wins and new launches, a 2003, with an even stronger 9-3, BMW X3 and X5, D~ ¢ J ~bL~i.s growing business backlog emphasis cn delivering su- Mazda RX 8, Nissan Maxima ?-~ s o'eq! ~u~d COO and numerous awards and perior value, we made sig- and Toyota Sienna. In all, .~/ industry recognition, nificant gains in the quality there are Lear products in ~ .......... ~ a capable partner of our proc'.ucts -- improv- more than 300 nameplates Lear is viewed asa partner lng our internal quality around the globe. rather than a supplier -- a measures by 22% globally, customer awards partner that has a global product launches Putting customers first has infrastructure, total inte- Lear can work with custom always distinguished Lear in rior capabilities and the ers on any ievel, providing the eyes of its customers. In technology to provide the everything [rom singlesys- 2003, Lear was named kinds of innovative prod- tems to system integration Supplier of the Year by ucts and services custom- to total interiors -- and it General Motors and won ers demand throughout has a welt diversified cus- three World Excellence the world, tomer portfoliothat proves it. awards from Ford, as well as putting customers first, continued a Technical Achievement VisionWorks personnelwork want. With technology centers Award, for developing its with each launch team in North America, Europeand ClearViewTM laser-based to provide the highest- Asia continuously researching ,, ,+ Active Night Vision technol- quality interiors, and anticipating consumer C LiS OlCrl~r {OC~S n'x~ms acing ogy for automobiles. Lear meeting challenges preferences, Lear is able to d~ also received a Recognition As the automotive industry liver innovative products that throe ~vl~en our of Achievement from Ford continuously seeksto improve address convenience, comfort customers nee~J us for Six Sigma in Germany pro{itabitity, lear actively sup and safety lssues. rnost~ r~o,t ~vhen it's and won the President's ports its customers' effortsto As drivers demand more t¼~ ,siest tine Award from Ferrari for tech become mole competitive, from their vehicles, Lear has nical innovation. Lear's ability to meet ag responded with a number of working asateam gressive qLality, cost and unique Intertronics products Lear can work with custom manufactulability metrics and our Business is grow ers on a number of levels to while produ( in9 designs that lng as a result of this electron achieve quality, craftsman- aretotallyhar~noniouswiththe ics capability Such products ship and cost targets, brand char~ cter of a given include hybrid analog/digital Lear's VisionWorks de nameplate has resulted in an TV/video receivers and smart sign studio is a world class increasingamountotbusiness junction boxtechnology full service facilit~ that en from ~uxu~ and performance Globally, manufacturers ables Lear's design team to marques such as Cadillac, recognize Lear's combina work in close cooperation BMW, Mercedes Benz, Saab tion of innovative technology, withthe compan/s custom and Jaguar to name a few. cost reduction efforts and ers. Inthe studio, where qual. a global pa~ner continuous qualitx ~mprove ity and cra~smanship is de Putting customers first also ments ~ and are respond fined as the harmonizing meansdelive'ingcutting edge lng with ~ncreasing amounts o{ design elements, Lear's produ~that consumers really otnew business 6 I.J. focusing on operational excellence The Lear management and efficiency, with regard are executed accurately team continuously works to inventory reduction and and efficiently and pro-. to improve the business waste elimination in manu- motes global product systems that impact qual- facturing. It allows Lear to collaboration. ity, cost, speed, innova- meet ever-increasing cus- The deployment of "Our vision of a tion and, ultimately, cus- tomerrequirementsbypro- global business practices 'One Lear' common tomer satisfaction, ducing what is needed, on has significantly improved operatin9 philosophy In 2003 Lear made time and in the right Lear's ability to manage and global business Quality First a company- amount, using the mini- complex product devel- pra¢.ices is now a wide global initiative, mum materials, equipment, opment projects and reality. Powerful focusing on Six Sigma, labor, overhead and space, leverage the global tal- tools like the processes for Product global business practices ents of the organization. Lear Progrc~,m Development, Harmony Lear's Global Business quality consumers notice Managemer~t Proc:(..~ss and Craftsmanship and Practices team focuses HarmonyandCraftsmanship and our Product Dat;:~ Lean Manufacturing. on creating world-class addressestheareasofsub- Malqagemen~ systero, fast and flawless product development jectivequalitythatdrivecon- are supporting our With a successful Six Sigma systems and methodolo- sumer purchase decisions. drive to achiow~ culture already in place gies. For example, the Consumers form opin- operationaI throughout the world, Lean Lear Program Management ions about a vehicle based excellence Manufacturing in company Process (LPMP), provides on the look and feel of its t¼roughout our plants came to the fore- a single methodology components. If the fit and organization~" front in 2003. It was imple- that is used throughout finish don't match, if any ..lames H. Vandenberghe mented in every Lear Ioca- the organization to man- part "sounds" plastic, con- ViceChairrnan/ tion worldwide during the age product develop- sumers perceive that the '~ ~ yearto help reduce operat- ment and launch activi- entire vehicle is lacking in ingcosts, ties on all products for all quality -- regardless of While Six Sigma affects customers worldwide, the engineering that went quality by reducing the de- Another resource tool, into its design. fectsmostimportanttocus- the Lear Product Data Througha disciplined tomers, Lean Manufacturing Management system, en- process that begins with has an impact on speed sures that product changes consumer research, bench- operational excellence, continued marking and craftsmanship Throughout the design mental management stan data ~rom Lear's People phase oft~e project, the dard, ISO 14001, at all Vehicle Inter{ace (PVl) VisionWor~steamhasana- applicable facilities world Method, Lear can establish lyzed vehicle interior sur wide, including our corpo appearance goals and pro- faces to ensure their qual rate headquarters. vide detailed analysisofthe ity. It has ~lso influenced continuous improvement enablers and engineering the materials to be used in Lear is never satisfied when solutions necessary to the vehicles, putting to it comesto delivering the achieve quality by design gether interior specifica highest quality, innovative integration, cost savings tions to ensure that materi products and outstanding When developing quality als on the side wall, instru customer service. products in partnership ment panel and console Having an understanding with automakers, engineers wall work together in the of quality benchmarks can at Lear's VisionWorks stu final product, help Lear predict the mix of dio engage in advanced environrne~tal standards products it will take to satisfy product development, pro- Lear also works closely with consumers and remain corn duction design studio activ automakers and its suppliers petitive. Lear can also bring ity, prototyping and market to reduce tha environmental cost saving solutions to cus and consumer research impact of its products, roi- tomers and improve areas VisionWorks has been lowing cus omer require- that don't con{orm to crafts involved in the 2006 Buick ments rega ding materials, manship goals. LeSabre and Cadillac hazardoussJbstances, recy In addition, focusingon DeVille program from the clability and life-cycle as quality and craftsmanship outset, establishing crafts- sessment data. helps Lear improve manu manshipinitiativestofacili Lear has achieved {acturing, warranty and tate proper integration of third party certification to future J.D. Power and parts and systems, the interna :ional environ Associates rankings. conbinuous improvement In 2003, de'e~ive parts per ~ ~ Lear's seating systems showed improve~ merit i~ the past four years according to million (PPMs) reduced by 22%* th~ j.r). Power and Associates 2003 Seat forward *Based on automakers' data. Quailt / Report~, growing our Intertronics portfolio With consumers and auto- ics, Lear can establish the are also interested in makers continuing to put architectur~ to streamline Lear's OccuSense® tech more emphasis on elec- electronic applications nology, which uses sen- tronic content in their while creatlng a "plug and sorsin the seat todeter- vehicles, Lear remains play"-style modularity for mine air bag deployment focused on developing newtechnc,logies. New federal regulations advanced technologies, interior innovation require sensors for pas- Electronic capability is Lear has pfc neered numer- senger seats rapidly becoming the ous products enabled by plugged in to thefuture future of automotive irate Intertronizs capability. In the near future, our riors as manufacturers add They were developed at new smart junction more safety, communica- the company's research boxes will allow vehicles tions and infotainment facilities in Southfield to receive video signals features to their vehicles, andDearb3rn, Michigan, while moving down the Learofferstheuniqueabil USA, ValI.~, Spain, and road, just as they now ityto integrate and opti Kronach, Cermany. receive radio signals mize these applications Ford ancl Hyundai signed Lear is also in the process through a technology contracts in 2003 that will of developing a totally knownaslnter~ronics, which place Lear's IntelliTireTM keyless operation that seamlessly incorporates tire-pressure monitoring will appear on the 2005 electronic/electrical and systems in millions ofvehi- Ford GT. And watch for interior components into cles. Genelal Motors now long range keyless entry, other vehicle systems, uses the Lear remote start which lets drivers do Using components such system in the new 2004 everything they now do as smart junction boxes Chevroletklalibu with a key fob, butfroma and embedded electron- Severa automakers greater distance. reaching global markets In 2003, Lear continued to electronicar delectricalcom- their vehicle designs, Lear increaseitsmarket penetration ponents for China Brilliance is working to help develop in foreign markets, especially BMWandtwoofChina'slarg such platforms with engi "China anct Korea inAsia--thefastest growing est automakers, Shanghai neers at design centers ~,re exploding, from geographic sector for Lear. GM and Do,ag Feng Motors, around the world. a vehicle production Overthe nextfiveyears, Aslam and give Lear strong cover Like other vehicle sys- standpoint. In related sales o{ Lear's noncon age in mosL o{the region's tems, electrical systems are Asia, ~*,,e formed solidatedjoint ventures (JVs) majorautomotivemarkets becoming a global prod new joint ventu es, worldwide are projected to In Japan, Lear formed a uct, and Lear aggressively launched new continuegrowing relationship with Tachi S, the grew its business in this facilities, m~int~ined strategic partnerships country'ssecond largestseat sector in 2003 Electrical ou~r profil t~biiit) ;nrj Its reputation as a global maker, to pJrsue the global integration is one of Lear's ~]r~;w our bus Floss partnerhasenabledLearto RenaultNis~an seating busi- key strengths ~n ~nterna form JVs with automakers ness. Lear also established a tional markets, and vehicle and suppliers in Korea, technical center inAtsugi, manufacturers worldwide r~<! t China and Japan Most no Japan, to better serve Nissan are demonstrating a strong ~ tably, Lear formed a JVwith for interiors and electronic interest in Lear's Intertronics Korea's Kyungshin Industrial and electrical products. Mak products. Company to supply wiring lng further inroads with its strategy for gr~wtl~ harnesses for Hyundai. LearDiamond JV, which was Lear plans to continue to In China, Lear formed established in 2002, Lear won increase its market share in four new JVs, bringing the new electrizal business with Asia, building the neces totalto 11JVsand 13opera Mitsubishi~,nd Nissan. sary global infrastructure tions that serve a number of increasingly global and pursuing more content automakers. The new JVs As automa(erstodaymove pervehiclein electrical sys will produce seats and/or toward global platforms in rems and total Interiors 14 1,1~ going the exl:ra mile in late 2003, Lear was ii the Process of building a new facility near Montgomery, Alabama (p ctured above), to menufacture ~eats f0~a nearby Hyundai plant: Always focused on the ;Customers' needs, Lear setup its factory and plants in Alabama much earlie~ than in the traditional dme]ine so Hyundai could test out its full systems. a new business model re s p o n d [ n g t o A G M Large Car Progra ~n, as well as other total interior program wins in 2003, illustrates how Lear has successfully changed its a changing b.s,nes, model--from building seats to integrating total interi- industrv °rs--to better meet c~ stomer requirements. integrating total interiors Asthe largest interior sup In this endeavor, Lear is efits for GM are lower cost plier in the world, Lear is recognized as a true part and improved quality Lear uniquely positioned to inte- ner that can balance the will provide approximately grate programs on three quality, design, cost and 80% of the content for the levels--totaL interior inte manufactuling imperatives program and will also in 9ration, system integrator to deliver a total interior tegrate components from 'We ~-~avo ~ ~ and program management designed to exceed the other suppliers U~iOL~O OCIV,~-~ ~.]r.. Perhapsthe best exann industry's best efforts to Lear innoYations !3C, CaL~'Se We i~, ~'~ pie of Lear's total capability date The project involves The interiors of the next total h~erior is winning the first large an unprecedented level of generation LeSabre and tapco Ih . T'!-v3r e scaletotal interior program teamwork and coopera DeVille will feature a num ~, ..,I, from Oeneral Motors late in tionbetwe~nGMandLear ber of Lear innovations thiu~ ',~i I 2002 for the 2006 Cadillac It allows GM to leverage These include Lear's flexi tc ~ ~ DeVille and Buick LeSabre. Lear's considerable exper- ble seating architecture ,~, ~, . Lear is involved at every tise in vehmle interiors and SonoTec~ lightweight :, level, from design to pro The GIX4 total integra acoustical products, as well ~ (~ duction. Giving this degree tion program puts Lear in as Spray PUR% a seamless ,,~ of authority to a supplier the driver s seat in terms polyurethane coating for indicates the level of confi of balanci ]g and manag- the instrument panel that dence General Motors has lng the myriad variables makes possible the elimi in Lear and validates Lear's of quality, host, design and nation of visual seams for total interior strategy, manufactutabilityto achieve the air bag compartments an integrated effort the optimum combination, The Learteam is concen This breakthrough prograrTi based on _ear's extensive trating on executing a turn is laying the groundwork experience as an interior key interior package that for programs of the future, provider Among the ben is simply the world's best achieving a best-in-class ve fast 17 il.~ integrating total interiors, continued niche markets & Mahindr~ Scorpio, Lear is with automakers worldwide Lear is also conducting acting as a ~ystems integra and is setting the stage total interior programs on a torsupplyingparta content, in Asia to take on more more exclusive, Iow volume manufactuling, sub assem- responsibility for engineer scale on vehicles with highly bly, sequencing and some lng and manufacturing. visible launches, such asthe en9ineerincj,whilethe design Lear is leveragin9 joint Ford GT and the Maserati and sourcing are directed by ventures and partnerships ©uattroporte. the manuf~ cturer. With the in foreign countries -- and In the case of the current Mazda RX 13 sports car, Lear utilizing local expertise - VolvoXCg0andMahindra is putting i;s knowledge as to continue expanding its a pure int(grator to work, total capabilities and put global market position without providing any sig- suing business in emer9 nificant content lng markets. Growing capabilities leading the field seating systems ~#1 in electronic and electrical This kind of ability to flooring & systems for instrument respond to customer needs acoustic systems 11~#2 panels, na,,igation systems withthefullcapabilityofthe and cockpits are also Lear portfolio of products, increasing Lear's market production and services door panels ~#2 share in nichevehicles helps explain why Lear is ebctrical global capabilities the leading player among distribution systems ~#3 While Lear increases its interior Tier 1 suppliers. responsibility for autorno Lear's total capabilities will tive interior design with continue to drive newbusi headliners ~#3 domestic manufacturers, ness wins and content per instrument it iS also ~oving toward vehicle throughout 2004 panels & cockpit systems 1~#7 increasin~cl design control and beyond. delivering shareholder value The Lear finance team strives to inspire the eom custom~.:r- ! p ere confidence ofourcus- ]ocusec. t, tomers, employees, inves I~dnco- tors and business partners stla~egy by focusing on dehvering drive the highest level of integ c,,~ ' nty, outstanding customer service and ~ata-or ven i,~~- .~ ~.':~,,, , financial analysis '- ~ :: Our customer-focused ...... strategy alwaysthe basis for imp~oving sna~eno~oer va~ue at Leal and performance driven culture resu ted in anothe~ year of success in 2003. Once again, the Lear team dehvered on our corn at~ons to dive process and ments and proactively man mitments by setting new system efficiencies glob ages Lear's capital structure records in sales and net allyandachievecontinuous to strike the optimal hal ncome, as we I as achievin9 improvements in our prod ance between minimizing investment-grade status from uct qual t!' and customer risk and maxim zing share- Standard & Poor's and Ftch sat sfactior levels, holder value. Ratngsand initiatingourfirst Going forward, we in everquarterlycash dividend tend to maintain a world LEA l he finance team also classteamtqat supports con worked together with oper- tinuous op ~rabng ,rnprove NYSE. 20 Pictured above: David C. Wajsgras, Douglas G. DelGrosso, Donald J, Stebbins, senior management J .... .. Vandenberghe, Robert E. Rf~ssiter Robert E. Rossiter Jimmie E. Comer Arthur Kennedy Daniel A. Ninivaggi Chairman and North American Joint Ventures Continuous Improvement Secretary and General Counsel Chief Executive Officer and Diversity Peter Kong D. William Pumphrey James H. Vandenberghe John R. Crary Asia Asia Pacific Vice Chairman Information Technology Rodolfo Kroebel Thomas L Saeli Douglas G. DelGrosso William C. Dircks Fiat Corporate Development President and CO0 - Corporate Controller Europe, Asia and Africa Collin C. Malcolm Louis R. Salvatore Osvaldo de Falco Ford -Europe Ford and Electronics Donald J. Stebbins Mexico/South America President and COO - James C, Masters Raymond E. Scott Americas Jeffrey S. Edwards Electrical Systems General Motors General Motors -Europe David C. Wajsgras Chris Mein Joseph R Sefcik Senior Vice President and Russ Hall Korea Purchasing Chief Financial Officer China James L. Murawski Frank B. Sovis Steven L. Hayworth Internal Audit Interior Systems Seating Systems Pierre Boulet Patrick M. Murray Mel Stephens PSAJRenault Miguel Herrera-Lasso Advanced Technology Investor ReJations and Electrical Systems-Europe Corporate Communications James M. Brackenbury Americo Nesti DaimlerChrysler Roger A. Jackson South America R Joseph Zimmer Human Resources Interior Systems -Europe Shari L. Burgess Bernhard Niggemeier Treasurer Gideon Jewel BMW/VW/DCX/Porsche Japan board of directors Anne K. Bingaman Larry W. McCurdyTM David R Spalding~ Kenneth L. Way Chairman Retired President and Vice Chairman Retired Chairman Valor Telecommunications, LLC Chief Executive Officer Cypress Advisors Inc. Lear Corporation Dana Automotive Dr. David E. Fry Aftermarket Group James A. Stern4~ President Chairman Northwood University Roy E. Parrott Cypress Advisors Inc. 1presiding Director Retired President, 2 Chairman, Audit Committee Justice Conrad L. Mallett Business Operations James H. Vandenberghe 3 Chairman, Compensation Committee President Metaldyne Vice Chairman 4Chairman, Executive Committee Sinai Grace Hospital s Chairman, Nominating and Corporate Robert E. Rossiter Richard E Wallman Governance Committee Chairman and Retired Senior Vice President Chief Executive Officer and Chief Financial Officer Allied Signal and Honeywell International Inc. ~_ Most Recent Payroll (2-15-05) Attachment A2 R~port~D. ~rc~O28 J - Salary Workers Location: 0044 IowaCity,IAPlant ~ PayEnd:02/15/2005 ~ On/0ffCycleCONFIRMED EA-D~NINGS ................ > < ......... TAXES ........ > < ....... DEDNS ...... > E~p 1 oyeeName / FormID Emplid/ CheckD~/ Form# Type Hours Earnings Gross Type Tax Type Amount NetPay I Dept/ B .U./C0./PayGrp LocationTotals- IowaCity REG 11,176.00 297,872.70 370,318.63 QASDI 22,284.30 222,577.53 00-HPREM 10,784.00 ~i. OT1 286.50 9,163.27 O~DI-ER 22,284.30 00-OLIFE 2,014.90 OTS 9.00 272.02 MEDI 5,211.69 00-PAI 449.90 SEV 49,411.48 FWT 49,813.24 00-SLIFE 938.73 VAC 9,520.00 MEDI-ER 5,211.69 40~401K 27,548.31 STD 4,028.41 FUI-ER 1,606.49 40-401K-ER 6,613.26 AUT 350.00 IASWT 18,467.00 00-CLIFE 78.30 EST 57.24 IAUI-ER 15,172.56 00-HCARE 851.86 MSP 299.25- 00-401YJ~N 1,737.49 GR-1 5,620.85 00-DC~tRE 263.33 00-UNWAY 89.00 00~401CU 1,096.83 45-BOND 175.00 00-GAUTO 160.38 00-DDREF 58.00- 00-CASP 150.00 00-OLTD 55.99 11,471.50 370,375.87 140,051.27 58,578.13 ! SourceLegend: K=Bat chFinalL=On - 1 ~neFinalO=On - 1 ine HourlyM°St RecentworkersPayroll (2-15-05) LABOR DISTRIBUTION TO DATE EARNINGS PL03W3 LEAR CORP. EEDS AND INTERIORS PAGE 569 PERIOD END DATE 02-13-2005 SII2-IS-IOWA CITY RUN DATE 02-14-2005 LEVELS 0 - 2 REPORT SEQUENCE SI I2 L2 L3 L6 CHARGEABLE LEVELS 2 - 8 Q-T-D Y-T-] EMPLOYEE NO. TRANSACTION M-T-D Q-T-D Y-T-D M-T-D EMPLOYEE NAME DESCRIPTION AMOUNT AMOUNT ~J4OUNT HOURS HOURS HOUR: LOCATION REG. EARNINGS 1,074,693 34 2,087,600.05 2,087,600.05 71,845.10 139,039.90 139,039 9( I2 O.T. EARNINGS 63,455 25 116,157.33 116,157.33 7,527.70 13,076.60 13,076 6( GRIEVANCE PAY 1,046 20 1,273.60 1,273.60 78.00 94.00 94 0( MISC INCOME 5,061 92 7,906.64 7,906.64 336.00 528.00 528 JURY DUTY 00 111.60 111.60 .00 8.00 8 0( MILITARY LEAVE 373 20 870.80 870 80 .00 .00 BEREAVEMENT 1,912.08 5,749.04 5,749 04 128 00 384.00 384 0( PERSONAL PAY 113.92 113 92 113 92 8 00 8.00 8 HOLIDAY PAY 715.44- 219,424 74 .3 219,424 74 48 00- 14,732.50 14,732 GROSS PAY ADJ 2,576.53 5,993 56 5,993 56 71 90 223.60 223 6~ SHIFT PREM 5,684.77 12,654 60 12,654 60 00 .00 01 VACATION PAY 65,856.80 224,515 82 224,515 82 3,672 00 12,518.00 12,518.0( TOTAL EARNINGS 1,220,058.57 2,682,371 70 2,682,371 70 83,618 70 180,612.60 180,612.6( FICA 92,285.23 202,759 08 202,759 08 FUI 9,416.19 20,969 00 20,969 00 SUI IA 51,242.17 112,659 04 112,659 04 TOTAL BENEFITS 152,943.59 336,387 12 336,387 12 Most Recent Payroll - Quarter (Oct-Dec 2004) PageNo. 50 ,~.po=~, ~=p~.o28 Salary Workers .,~t. 12/~6/2oo4 Location: 0044 IowaCity, IkPlant RunTime 08:59:58 PayEnd: 12/31/2004 EmployeeName / Formed < ............... EARNINGS ................ · < ......... TAX~S ........ · < ....... DEDNS ...... > E~plid/ CheckDt / Form~ Type Hours Earnings Gross Type Tax ~ype Amount NetPay Dept/ B .U./CO. / PayGrp LocationTotals- IowaCity REG 8,384.00 195,015.43 330,351.58 OASDI 17,761.56 00-HP~EM 7,119.00 209,380.78 HOL 4~192.80 114,155.39 OASDI-ER 17,761.55 00-0LIFE 1,917.19 435.501' '~''~13,850.36 MEDI 4,796.29 00-PAI 406.95 OT1 0TS 69.50 1,982.93 FWT 42,386.04 00-SLIFE 998.65 GUP 5,188.30 MEDI-ER 4,796.30 40-401K 23,291.20 MET 8,239.83 IASWT 16,874.00 40-401K-ER 6,242.79 AUT 350.00 IAUI-ER 58.52 00-CLIFE 77.60 00-401KIJq 1~762.82 MSP 190.83- GR-1 679..~ 00-UNWAY 107.~2 00-HCARE, 1,030.22 00-DCARE 461.68 45-BOND 175.00 00-GAUTO 157.48 00-0LTD 75 :~2 00-CASP 50300 00-401CU 833.11 00-LPAC 10.42 13,081.00 336,591.41 104,434.26 45,395.70 SourceLegend:K=BatchFinalL=On-lineFinalO=On.line PeopleSoft PageNo. 48 ReportID: lrcpy028 PayrollRegister RunDate 12/13/2004 Location: 0044 IowaCit¥,IAPlant RtunTime 09:01:51 payEnd:12/15/2004 On/0ffCycleCONFIRMED Em~loyeeName/ Form/D < ............... E~%NINGS ................ · < ......... T~XES ........ · < ....... DEDNS ...... · Emplid/ CheckDt/ Form~ Type Hours Earnings Gross Type Tax Type Amount NetPa¥ Dept/ B .U./CO. / PayGrp LocationTotals- IowaCity REG 11,528.00 309,170.82 333,061.32 OASDI 17,679.89 00-HPREM 7,119.00 212,659.23 OT1 603.50 18,683.93 OASDI-ER 17,679.89 00-OLIFE 1,917.19 OTS 23.50 682.00 MEDI 4,7%6.53 00-PAI 406.95 SEV 4,365.40 FWT 40,714.40 00-SLIFE 998.65 AUT 350.00 MEDI-ER 4,716.53 40-401K. 24,976.71 DET 36.37 IASWT 16,427.00 40-401K-ER 6,458.75 MSP 190.83- IAUI-ER 52.05 00-CLIFE 77.40 00-401EI=N 1,762.82 GR-1 679.05 00-UNWAY 107.42 1,030.22 00-DCARE 461.68 45-BOND 175.00 00-GAUTO 157.48 00-OLTD 75.32 00-CASP 50.00 00-401CU 858.96 00-LPAC 10.42 12,155.00 333,097.69 101,986.29 47,323.02 SottrceLegend:K=BatchFinalL=0n-lineFinalO=On-line PeopleSoft PageNo. 49 ReportID: lrcpy02 $ PayrollRegister RunDate 11/22/2004 Ru/%Time 14:42:40 Location: 0044 IowaCity, IAPtant On/0f fCycle PayE~d: 11/30/2004 E~ployeeName / FormID < ............... EARNINGS ................ · < ......... TAXES ........ Emplid/ CheckDt / Form~ Type Hours Earnings Gross Type Tax Type Amount NetPay Dept / B .U./CO. / PayGrp LocationTotals- IowaCity SEV 25,326.59 354,734.28 OASDI 19,422.59 00-HPREM 7,155.00 225,262.16 REG 9,432.00 249,825.68 OASDI-ER 19,422.59 00-OLIFE 1,917.19 MOL 2,096.00 57,021.52 MEDI 4,999.61 00-PAI 406.95 OT1 431.00 12,906.75 FWT 46,018.61 00-SLIFE 1,034.95 OTS 107.00 3,135.84 MEDI-ER 4,999.61. 40-401K 25,413.48 RET 375.00 IASWT 17,639.00 40-401K-ER 6,578.30 VAC 749.12 IAUI-ER 89.47 00-CLIFE 77.40 00-401K~ 1,762.82 TUT 2,400.00 GR-1 702.77 STD 2,019.46 00-UNWAY 107.42 PAW 815.15 00-HCAR~ 1,030.22 AUT 350.00 00-DC3%RE 461.68 MSP 190.83- 45-BOND 175.00 00-GAUTO 160.25 00-OLTD 75.32 00-CASP 50.00 00-401CU 851.44 00-LPAC 10.42 12,066.80 354,734.28 112,591.48 47,970.61 SourceLegend:K=BatchFinalL=0n-lineFinal0=On-line PeopleSoft PageNo. 49 ReportID: lrcpy02$ PayrollRegister RunDate 11/05/2004 Ru/%Time 14:19:23 Location: 0044 IowaCity, IkPlant On/OffCycle EmployeeName/ FormID < ............... EARNINGS ................ · < ......... TAXES ........ > < ....... DEDNS ..... > E~plid/ CheckDt/ Forms Type Hours Earnings Gross Type Tax Type Amount NetPay DeDt/ B.U./CO./Pa~Gr~ Loc~tionTotals- IowaCity REG 11,528.00 312,358.33 347,688.08 OASDI 19,724.22 00-HPR~4 7,323.00 219,605.23 OT1 463.00 14,662.90 OASDI-ER 19,595.09 40-401K 26,520-32 SEV 20,507.68 MEDI 4,955.55 40-401K-ER 6,639.52 AUT 350.00 FWT 43,502.02 00-OLIFE 1,917.19 MSP 190.83- MEDI-ER 4,925.35 00-PAI 406.95 IASWT 17,215.00 00-SLIFE 1,034.95 IAUI-ER 91.86 00-CLIFE 77.40 00-401KLN 1,762.82 GR-1 679.05 00-UNWAY 107.42 00-~CARE 1,030.22 00-DC-AP~ 461.68 45-BOND 175.00 00-GAU~O 194.52 00-OLTD 75.32 00-CASP 50.00 00-401CU 859.80 00-LPAC 10.42 11,991.00 347,688.08 110,009.09 49,325.58 SourceLegend:K=BatchFinalL=On-lineFinalO=On-line People$0ft PageNo. 52 Payr°llRegister Ru~Date 10/22/2004 HeportID: lrcpy028 RunTime 17:08:28 Location: 0044 IowaCity,IAPlant On/OffCycle PayF~nd:10/31/2004 E~loyeeName/ Formed < ............... EARATINGS ................ · < ......... TAXES ........ · < ....... DF~DNS ...... · E~plid/ C~ecFdDt/ Form# Type Hours Earnings Gross Type Tax Type ~ount NetPay Dept/ B.U./CO./PayGz~ LocationTotals- IowaCity P~EG 10,440.00 306,779.99 383,992.92 OASDI 22,038.55 00-HPP~EM 7,148.50 242,702.84 OT1 426.50 13,106.23 OASDI-ER 22,167.68 40-401K 25,366.40 SEV 56,440.44 MEDI 5,423.50 40-401K-ER 6,520.75 VAC 4,309.88 Fg~T 53,851.49 00-HC/G~E 1,063.50 OTS 7.00 197.21 MEDI-ER 5,453.70 00-L~gWAY 109.42 R3%D 3,000.00 IASWT 19,382.00 00-OLIFE 1,956.88 AUT 350.00 IAUI-ER 131.75 00-PAI 419.65 MSP 190.83- FUI-ER 32.61 00-SLIFE 1,036.65 00-DCARE 461.68 GR-1 238.34 00-401CU ~54.34 00-OLTD 75.32 00-CA~P SO.O0 00-LPAC 10.42 10,873.50 383,992.92 128,481.28 47,115.29 SourceLe§end:K=BatchFinalL=On-lineFinalO=On-line People$oft PageNo. 52 ReportID: lrcpy028 PayrollRegister Rurd3ate 10/12/2004 Locatiom: 0044 IowaCity,IAPlant Rtn/Time 09:00:38 PayF~Td:10/15/2004 0n/OffCycleCONFIRMED Employe~Name/ FormID < ............... EAP,NINGS ................ · < ......... TAXES ........ · < ....... DEDNS ...... > Emplid/ CheckD~/ Fo~m# Type Hours Earnings Gross Type Tax Type Amount NetPay Dept/ B .u./co_/Pa~Gr~ LocationTotals- IowaCity REG 11,888.00 315,581.43 356,894.52 OASDI 21,443.55 00-HpREM 7,279.50 221,251.42 OT1 834.00 25,818.04 OASDI-ER 21,443.95 40-401K 27,429.67 SEV 5,123.10 MEDI 5,232.54 40-401K-ER 7,050.35 TUT 2,400.00 FWT 47,697.54 O0-HCARE 1,063.50 GUP 7,291.19 MEDI-ER 5,232.84 00-LSgWAY 109.42 MET 12,037.36 IASWT 18,338.00 00-OLIFE 1,956.88 OTS 17.50 521.59 IAUI-ER 138.29 00-PAI 419.65 MEN 800.03 FUI-ER 45.45 00-SLIFE 1,036.65 AUT 350.00 00-CLIFE 80.10 MSP 190.83- 00-401KLN 1,762.82 00-DC-AR~ 524.18 GR-1 238.34 00-401CU 514.39 45-BOND 175.00 00-GAUTO 205.24 00-OLTD 75.32 00-CASP 50.00 00-LPAC 10.42 12,739.50 369,731.91 119,572.26 49,981.42 SourceLegend: K=Bat chFinalL=0n- 1 ineFinalO=0n- 1 ine Most Recent Payroll - Quarter (Oct-Dec 2004) pAGE 1, PER~OD END DATE 12-26~ ~ '"Hour,¥ Workers RUN DATE 12-23-2004 LEVELS 0 - 2 REPORT SEQUENCE SI I2 L2 L3 L6 CHARGEABLE LEVELS 2 - 8 EMPLOYEE'NO. ' TRANSACTION M-T-D Q-T-D Y-T-D M-T-D Q-T~D Y-T-] EMPLOYEE NAME DESCRIPTION AMOUNT AMOUNT AMOUNT HOURS HOURS HOUR: LOCATION :' z ' REG. EARNINGS 1,480,359.76 4,800 639.38 19,785,572.52 98,975.20 321,649.18 1,339,289.4: I2 O.T. EARNINGS 113,877.01 331 677.69 1,626,236.11 12,963.20 39,433.58 187,482.1: GRIEVANCE PAY 118.00 2 040.78 7,263.65 8.00 151.10 524.1~ MISC INCOME 3,800.32 9 787.12 45,382.79 248.00 648.00 3,053.9~ JURY DUTY 598.18 1 308.90 3,524.73 44.50 92.50 252.5~ MILITARY LEAVE 622.00 1 741.60 5,697.52 .00 .00 .01 BEREAVEMENT 1 760.56 4 582.40 27,722.13 120.00 304.00 1,868.6~ HOLIDAY PAY 290 186.00 290 176.48 1,196,056.86 19,496.00 19,496.00 81,563.4~ GROSS PAY ADJ 4 201.06 16 614.02 77,017.66 167.10 581.20 2,697.22 SHIFT PREM 10 129.16 29 867.42 124,517.83 .00 .00 .0~ VACATION PAY 234 281.02 412 653.24 1,766,016.42 13,142.00 23,028.00 101,142.0~ TOTAL EARNINGS 2,139 933.07 5,901 089.03 24,665,008.22 145,164.00 405,383.56 1,717,873.2' -- FICA ~-~'~'f'~-162 202.82 447 151.09 1,869,430.99 -- FUI 124.58 137.39 40,852.96 -- SUI IA 1,287.05 4,009.04 585,851.95 TOTAL BENEFITS 163,614.45 451,297.52 2,496,135.90 PAGE 506 LABOR DISTRIBUTION TO__EARNINGS PL03W3 LEAR CORP. EEDS AND INTERIORS RUN DATE 01-31-2005 PERIOD END DATE 01-30~ SII2-IS-IOWA CITY LEVELS 0 - 2 REPORT SEQUENCE SI I2 L2.L3 L6 CHARGEABLE LEVELS 2 - 8 M-T-D Q-T-D Y-T-I EMPLOYEE NO. TRANSACTION M-T-D Q-T-D Y-T-D EMPLOYEE NAME DESCRIPTION AMOUNT AMOUNT AMOUNT HOURS HOURS HOURS LOCATION REG. EARNINGS 366,917.29 1,379,824 00 1,379,824.00 24,558.30 91,753.10 91,753.1f I2 O.T. EARNINGS 16,587.02 69,289 10 69,289.10 2,091.80 7,640.70 7,640.7f GRIEVANCE PAY 940.52 1,167 92 1,167.92 68.00 84.00 84.0C MISC INCOME 1,477.60 4,322 32 4,322.32 96.00 288.00 288.0C JURY DUTY .00 111 60 111.60 .00 8.00 8.0f MILITARY LEAVE 124.40 622 00 622.00 .00 .00 .0f BEREAVEMENT 1,094.48 4,931 44 4,931.44 72.00 328.00 328.0( HOLIDAY PAY .00 220,140 18 220,140.18 .00 14,780.50 14,780.5C GROSS PAY ADJ 878.44 4,295 47 4,295.47 24.30 176.00 176.0£ SHIFT PREM 1,938.83 8,908 66 8,908.66 .00 .00 .0C VACATION PAY 19,589.84 178,248 86 178,248.86 1,118.00 9,964.00 9,964.0( TOTAL EARNINGS 409,548.42 1,871,861 55 1,871,861.55 28,028.40 125,022.30 125,022.3~ ~ FICA~%~z~'~}%~-~¥~ 30,975.99 141,449 84 141,449.84 -- FUI 3,222.54 14,775 35 14,775.35 -- SUI IA 17,200.90 78,617 77 78,617.77 TOTAL BENEFITS 51,399.43 234,842 96 234,842.96 ~AYF~Lb REGISTER - PRR402 LEAR CORP. EEDS AND INTERIORS DIVISION - SI P.E.DATE CHK DAT.~--..~ SII2-IS-IOWA CITY LOCATION - I2 RUN DATE 01/ W K5 ~'~[~" -'r~4L y 01/30/2005 02/04/~0053 SEM.I-MTHLY/MTHLY 00/00/0000 00/00/0000 '-LEVELS .... EMP NUMBER EMPLOYEE NAME 80C SEC NO RATE/SALARY 3 4 5 ...... 3 ................ TAXES ............................... DED/NET/CK AMT-' TYPE ...... iHOURS---~ ........ EARNINGS CHECK NUM FEDERAL STATE CITY/COUNTY TOTAL LOCATION - I2 REV ..00 'REG ' .00 REG .00 FIT .00 SIT .00 CNTY .00 TOT D5 '.00 OT .00 OT .00 SS .00 SDI .00 CITY .00 NET P~ .00 OTH~ .00 OTH .00 MED .00 SUI .00 TOT .00 TOT .00 TOT .00 TOT .00 TOT CURR 24 721.80 REG 366,917.29 REG 46,961.79 FIT 19,499.00 SIT .00 CNTY 29,176.11 TOT DE 2 116.60 OT 16,587.02 OT 25,104.64 SS .00 SDI .00 CITY 282,935.53 NET 1 190.00 OTH 26,044.11 OTH 5,871.35 MED .00 SUI 177,982.63 CK 28 028.40 TOT 409,548.42 TOT 77,937.78 TOT 19,499.00 TOT .00 TOT NET 24 721.80~' REG 366,917.29 REG 46,961.79/ FIT 19,499.00/ SIT .00 CNTY 29,176.11 TOT D5 2 116.60 OT 16,587.02 OT 25,104.64 SS .00 SDI .00 CITY 282,93~3 NET P~ 1 190.00 OTH 26,044.11 OTH 5,871.35> MED .00 SUI 28 028.40 TOT 409,548.42 TOT 77,937.78 TOT 19,499.00 TOT .00 TOT MTD 24 721.80 REG 366,917.29 REG 46,961.79 FIT 19,499.00 SIT .00 CNTY 29,176.11 TOT DE 2 116.60 OT 16,587.02 0T 25,104.64 SS .00 SDI .00 CITY 282,935.53 NET 1 190.00 OTH 26,044.11 OTB 5,871.35 MED .00 SUI 28 028.40 TOT 409,548.42 TOT 77,937.78 TOT 19,499.00 TOT .00 TOT QTD 92 225.90 REG 1,379,824.00 REG 208,734.96 FIT 87,182.00 SIT .00 CNTY 156,874.92 TOT D~ 7 715.90 0T 69,289.10 OT 114,639.01 SS .00 SDI .00 CITY 1,277,619.83 NET PS 25 080.50 OTH 422,748.45 OTH 26,810.83 MED .00 SUI 125 022.30 TOT 1,871,861.55 TOT 350,184.80 TOT 87,182.00 TOT .00 TOT YTD 92 225.90 REG 1,379,824.00 REG 208,734.96 FIT 87,182.00 SIT .00 CNTY 156,874.92 TOT DE 7 715.90 OT 69,289.10 OT 114,639.01 SS .00 SDI .00 CITY 1,277,~83 NET PS 25 080.50 OTH 422,748.45 OTH 26,810.83 MED .00 SUI 125 022.30 TOT 1,871,861.55 TOT 350,184.80 TOT 87,182.00 TOT .00 TOT PAYROLL REGISTER - PRR402 LEAR CORP. EEDS AND INTERIORS DIVISION - SI FAGE 461 RUlg DATE 12/26/20 P.E.DATE CHK DA~----~ SII2-IS-IOWA CITY LOCATION I2 WK~Y/BI-WKLY 12/26/2004 12/310j~ SEMI-MTHLY/MTHLY 00/00/0000 00/00/0'0-00 .... LEVELS .... EMP NUMBER EMPLOYEE NAME SOC SEC NO RATE/SALARY 3 4 5 TYPE ....... HOURS ............ EARNINGS ................................. TAXES ............................... DED/NET/CK AMT-- CHECK NUM FEDERAL STATE CITY/COUNTY TOTAL LOCATION ~2 ' CURR /12,465.10 REG 184,461.52 REG 45,013.75 FIT 18,463.00 SIT .00 CNTY 27,515.46 TOT D 1,376.90-~OT 12,331.31 OT 24,021.35 SS .00 SDI .00 CITY 271,038.71 NET P f12,308.00 OTH 194,877.37 OTH 5,617.93 MED .00 SUI 173,228.41 CK AM 26,150.00 TOT 391,670.20 TOT 74,653.03 TOT 18,463.00 TOT .00 TOT NET 12,46.5.10 REG 184,461.52 REG 44,886-91fFIT 18,426'00//SIT .00 CNT¥ 28,423.18 TOT D 1,376.90 OT 12,331.31 OT 23,973.367 SS .00 SDI .00 CITY 269,5~4 NET P 12,268.00 OTH 194,103.37 OTH 5,606.71~ MED .00 SUI 26,110.00 TOT 390,896.20 TOT 74,466.98 TOT 18,426.00 TOT .00 TOT MTD 99,363.80 REG 1,480,359.76 REG 258,012.83 FIT 103,735.00 SIT .00 CNT~ 148,366.56 TOT E 12,997.70 OT 113,877.01 OT 131,458.52 SS .00 SDI .00 CITY 1,467,615.86 NET P 32,802.50 OTH 545,696.30 OTH 30,744.30 MED .00 SUI ~ 145,164.00 TOT 2,139,933.07 TOT 420,215.65 TOT 103,735.00 TOT .00 TOT QTD 322,825.38 REG 4,800,639.38 REG 709,436.98 FIT 285,702.00 SIT .00 CNT~ 426,998.17 TOT E 39,637.68 OT 331,677.69 OT 362,397.04 SS .00 SDI .00 CITY 4,031,800.79 NET ~ 42,920.50 OTH 768,771.96 OTH 84,754.05 MED .00 SUI 405,383.56 TOT 5,901,089.03 TOT 1,156,588.07 TOT 285,702.00 TOT .00 TOT YTD 1,344,129.94 REG 19,785,572.52 REG 2,977,577.34 FIT 1,200,735.00 SIT .00 CNT~ 1,699,132.23 TOT E 188,916.83 OT 1,626,236.11 OT 1,515,094.37 SS .00 SDI .00 CITY 16,918,252-66 NET P 184,826.50 OTH 3,253,319.59 OTH 354,336.62 MED .00 SUI / 1,717,873.27 TOT 24,665,128.22 TOT 4,847,008.33 TOT 1,200,735.00 TOT .00 TOT *** TOTAL OUT OF CROSSFOOT = 4 *** Attachment A3 Attachment A3 Affidavit State of Iowa County of Johnson I. Rick Innis. depose and say that I have examined the following statement and have found it to the best of my knowledge to be accurate and true. Lear Corporation - Iowa City Plant has not, within the last five years, violated state or federal statutes, rules, and regulations, including environmental and worker safety regulations, or, if such violations have occurred, that there were mitigating circumstances or such violations did not seriously affect public health or safety or the environment. I further depose that the signatur/~e'~e~w is m. yj)w~proper.,S~nature. Signature Subscribed and sworn to before me on ___¢~',~"e,. R"ONDA BO.EBR,,~'-'I ,'~ this,~___t day t~f ~ 2005 =~ ~ Commissi~ NU~ 7~72 I My Commi~n ~ ~ ~tary Public) ~ November20, 2~ I J~hnson County ~ / My commission expires on ~Oi ~ Attachment A4 Lear Corporation INDUSTRY TYPE NAICS Code:[ 33630] and/or SIC Code: [ ] and/or Describe [Motor vehicle seating & interior trim manufacturing [ Industry: NEW CONSTRUCTION COSTS Cost of Construction [ $ New Furniture, Fixtures b$ 17,400,000 and Equipment TOTAL [ $ 17,400,000 EMPLOYEE INCOME CLASSIFICATION Lear Corporation Projected annual wage Projected number of employees (FTEs) for each wage bracket categories - $ Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 16,000-I 7,999 18,000-19,999 20,000-21,999 22,000-23,999 24,000-25,999 26,000-27,999 28,000-29,999 146 30,000-31,999 134 32,000-33,999 7 34,000-35,999 7 36,000-37,999 38,000-39,999 16 40,000-44,999 8 45,000-49,999 50,000-54,999 55,000-59,999 60,000-64,999 65,000-69,999 70,000-74,999 75,000-79,999 80,000-84,999 85,000-89,999 90,000-99,999 100,000-109,999 110,000-119,999 120,000-130,000 Totals 318 0 0 0 0 0 0 0 0 0 Public Investment Lear Corporation Dollar Investments in the Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 State Investments: source, if known: State grant/forgivable loan CEBA $ $ 500,000 $ $ - $ $ State grant/forgivable loan $ $ $ $ $ $ State loan 1' $ $ $ $ $ $ State loan 2* $ $ $ $ $ $ State tax credits $ $ $ $ $ $ Refundable R&D tax credits NCIP $ 320,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Value-added tax credits $ $ $ $ $ $ State Job training $ $ $ $ $ $ Other state investment $ $ $ $ $ $ Local Investments: source, if known: Local grant/forgivable loan $ $ $ $ $ $ Local grant/forgivable loan $ $ $ $ $ $ Local loan 1' $ $ $ $ $ Local loan 2* $ $ $ $ $ $ Local loan 3* $ $ $ $ $ $ Local tax abatements $ $ $ $ $ $ Local In-kind: land/improvements $ $ $ $ $ $ Off-Site public improvements GO Bond\CDBG $ $ 250,000 $ $ $ $ Other oca nvestment $ $ $ $ $ $ ICompany investment: ]Debt I$ I $11,ooo,ooo I $ 3,ooo,ooo I $ 2,550,001 I $ investment: $ $ Other Non-Public [ I$ iS $ I$ $ I$ $ -I * for each loan, fill out the following: term-¥rs iht rate further details State loan 1' 0% State loan 2' 0% Local loan 1' 0% Local loan 2* 0% Local loan 3* 0% Business Taxes Lear Corporation Category Increase in Tax Collections Associated with this Project State business taxes Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 State corporate income tax: Estimates from calculator, or none none none none none none Applicant estimates none none none none none none State business sales and use $ 22,000 $ 22,880 $ 23,795 $ 24,747 $ 25,736 $ 26,766 State insurance premium none none none none none none Other state business taxes none none none none none none Local business taxes Local real estate property $ 243,981 $ 253,741 $ 263,890 $ 274,446 $ 285,424 $ 296,841 Special assessments/permits none none none none none none Local option sales none none none none none' none Other local business taxes none none none none none none Corporate income tax calculator Net corporate income 380 million 380 million 380 million 380 million 380 million 380 million Federal taxes paid or accrued 154 million 154 million 154 million 154 million 154 million 154 million Percent of sales that occur in Iowa 0% 0% 0% 0% 0% 0% Iowa taxable sales none none none none none none Iowa corporate income tax liability none none none none none none Federal corporate income tax estimators: Regular C corporations 1154 million 1154 million 1154 million 1154 million 1154 million 1154 million I Small business S corporations: It is advisable to determine the average federal taxes that will be paid from the applicant. However, if that information is not available estimate the marginal tax rate conservatively at 28% (which includes income between $68,800 and $143,500 for 2003). The amountatthe28%rateis:I #VALUE! I #VALUE! I #VALUE! I #VALUE! I #VALUE! I #VALUE! I Attachment A5 LEAR CORPORATI'ON FI'NANC?AL I'NFORHAT?ON LI'NK TO SECURI'T1'ES AND EXCHANGE COMMI'SSI'ON (SEC) FlrLI'NGS * Please see the following link for Lear Corporation Financials, per telephone conversation with Mike Farley at the Iowa Department of Economic Development. http://www./ear, com/jsp/common.jsp?page=/r fd secfi/ings 2/11/05 Consolidated Iowa City, IO (479T) Income Statement 2005 Projection Current Year Plan JAN 05 FEB 05 MAR 05 APR 05 MAY 05 JUN 05 JLY 05 AUG 05 SEP 05 OCT 05 NOV 05 DEC 05 Full Year Sales-Commercial 8,092 8,518 9,795 8,538 8,538 10,246 3,183 9,522 11,427 8,823 7,941 8,824 103,449 Sales - Intercompany 2,369 2,493 2,867 3,231 3,231 3,877 2,178 4,356 5,227 4,810 4,149 4,810 43,199 Total Sales 10;-461 ~1,,0-1-1- 12,663- 1'1~76~ tt.769 ~4~'t23- ....... $~361 13~878' 16,653 t'3~434 --1-2~090 13~435 146,647- Material 4.781 5,028 5,763 5,350 5,350 6,387 2,285 7,024 8,333 8,887 5,970 5,827 89,586 Labor 1,866 1,946 2,414 2,100 2,108 2,432 1,437 2,254 2,803 2,085 2,067 2,280 25,790 Overhead 3,100 3,064 3,337 3,098 3,098 3,313 3,024 3,258 3,516 3,149 3,098 3,357 38,408 Total Cost of Goods Sold ---9~747 - 70,038 .... -11.5'F4 10~5746- --'10~554 ---'[2~'132 --6~746- 12,53E--'I:4~65Z 1-1~2-1- --'11~.13-3- '~2~2'6'3- 133,782- , % Sa/es 93.18 91.16 90.93 89.61 89.67 85.90 125.84 90.33 87.98 88.74 92.08 91.28 91.23 Gross Margin 713 974 1,149 1,223 1,215 1,991 (1,385) 1,342 2,002 1,5t3 958 1,172 12,865 % Sales 6.82 8.84 9.07 10.39 10.33 14.10 (25.84) 9.67 12.02 11.26 7.92 8.72 8.77 Selling R&D Administration Total Operating Expense % Sales I/C Operating Charges Operating Income 713 974 1,149 1,223 1,215 1,991 (1,385) 1,342 2,002 1,513 958 1,172 12,865 % Sales 6.82 8.84 9.07 1039 10.33 14.10 (25.84) 9.67 12.02 11.26 7.92 8.72 8.77 Interest (Income) Interest Expense ' - Intercompany interest Exp Amortization of Goodwill Restructuring Costs Foreign Exchange Hedge Expense Misc (Income) / Expense State & Local Tax I/C Non-Operating Charges Minority Interest Equity in Earnings of Subs Extraordinary (Gain)/Loss Pretax Income 713 974 1,149 1,223 1,215 1,991 (1,385) 1,342 2,002 1,513 958 1,~172 t2,865 Income Taxes Net Income 713 974 1,149 1,223 1,215 1,991 {1,385) 1,342 2,002 1,5t3 958 IjI72 12,865 % Sales 6~7 8.8-4 gOT lO~39 1073'3- ---'f-4~' 725.8-4) 9.67 12~02- ~1.26 7~9~ -8~72- ~T 2/~1,~5 Consolidated Iowa City, IO (479T) 2005 Projection Balance Sheet Current Year Plan (United States Dollar-000's) DEC 04 JAN 05 FEB 05 MAR 05 APR 05 MAY 05 JUN 05 JLY 05 AUG 05 SEP 05 OCT 05 NOV 05 DEC 05 Cash & Cash Equivalents 20,240 17,557 12,153 21,222 18,136 21,527 25,450 23,601 22,431 30,894 28,793 25,297 35,897 Net Receivables 7,872 8,753 15,135 9,442 10,204 8,889 ,9,891 4,902 9,358 9,820 9,858 14,926 7,381 inventories 2,516 2,452 2,595 2,672 2,722 2,781 2,478 2,654 2,874 3,312 3,203 3,011 2,875 Customer Tooling/Engineering Deferred Taxes Other 535 2,494 2,290 2,464 2,218 1,972 1,726 1,480 1,234 988 742 496 250 Total Current Assets --- 31,16~ .... 3%256 327174- 35,,800 33,281 ' 35,170- ----3975-45 32,638 35,896 4~0-'~4 42~596 4-3~3~ 4674-03- Gross Fixed Assets 82,288 82,988 84,043 84,823 85,965 86,231 86,266 87,351 87,501 87,686 88,300 88,448 88,548 Accumulated Depreciation (50,406) (50,786) (51,166) (51,546) (51,926) (52,441) (52,956) (53,503) (54,133) (54,762) (55,391) (56,018) (56,645) Net Fixed Assets 31~882- 32,202- ---32,877~ 33~277- ---34,039 33~790' 33,310 33~8748 33968- 3-2,92'4 327909 32~-430- 31,903- Net Goodwill Net Intangible Assets investments LFF Customer Tooling/Engineering Deferred Taxes Other 0 0 0 0 0 Total Non-Current Assets 31,882 ---32~202 327877- 33,277 --~4~039- 33~90 33~31'0 33,848 .... 33,368 32,92r4 --32,g0[Y 327430 3'1~,903 Total Assets 63,045 63,459 65,051 69,077 67,321 68,960 72,856 66,486 69,265 77,938 75,506 76,160 78,307 Short Term Borrowings Accounts Payable 10,869 10.107 10,641 13,057 10,492 10,831 12,317 7,997 9,515 15,726 12,195 11.806 13,203 Uncleared Checks/Overdrafts Other Accrued Liabilities 2,095 2,556 2,841 3,102 2,688 2,773 3,192 2,528 2,447 2,907 2,493 2,579 2,156 Income Taxes Payable Current Portion-LTD Total Current Liabilities --12,963 12,663- '----13,282 I67159- ----137180 13,604 15;509 10,524- --1~;961 -18~633 ---14,688 1-4~385~ 15'735~ Long-Term Debt Deferred Taxes - Other Minority Interest Intercompany Accounts (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) (115,712) Total Long-Term Liabilities ~115,712) --(115,712) ~115~712) ~'1-1~5~12) ---(115~12) (-'F15~712) -(T1'5,712) ~11577T2) --('1'1-57712~ ~'rlS,~'r2) ¢F15,712} --(115~".'.7'I2} --('F'r57712) Total Liabilities (102,749) (103,049) (102,431) (99,553) (102,533) (102,109) (100,204) (105,188) (103,751) (97,080) (101,025) (101,328) (100,353) Capital Stock Treasury Stock Capital Surplus Minimum Pension Adjustment - Retained Earnings-Prior Year 157,203 165,795 165,795 165,795 165,795 165,795 165,795 165,795 165,795 165,795 165,795 165,795 165,795 Retained Earnings-YTD Income 8,592 713 1,687 2,836 4,059 5,274 7,265 5,879 7,221 9,223 10,736 11,693 12,865 Other Comprehensive Income Currency Translation Adjustment Total Equity -~65,795 166,508- ~67;'482 168,630 -- 169,853 ~71,068 173,059 --~T1;'674- --173,0f6 --175~-017 ~6,~30~ 177,~-8'8- ~8~,66'0- Total Liabilities & Equity 63,045 63,459 65,051 69,077 67,321 68,960 72,856 66,486 69,265 77,938 75,506 76,160 78,307 Memo: ~JR Factored Balance A/R ABS Balance Consolidated Iowa City, IO (479T) 2005 Projection Statement of Cash Flows - Division/Plant Current Year Plan (United States Dollar-OOO's) JAN 05 FEB 05 MAR 05 APR 05 MAY 05 JUN 05 JLY 05 AUG 05 SEP 05 OCT 05 NOV 05 DEC 05 Full Year Operating Income 713 974 1,149 1,223 1,215 1,991 (1,385) 1,342 2,002 t,513 958 1,172 12,865 Depreciation 380 380 380 380 515 515 547 630 629 629 627 627 6,239 Total Depreciation/Amortization 380 380 380 380 515 515 547 630 629 629 627 627 6,239 Accounts Receivable (880) (6,382) 5,693 (763) 1,316 (1,002) 4,989 (4,456) (462) (38) (5,068) 7,544 491 Inventories 63 (143) (77) (50) (59) 304 (176) (219) (438) 109 192 137 (359) Other Current Assets (1,959) 204 (174) 246 246 246 246 246 246 246 246 246 285 Accounts Payable (761) 533 2,417 (2,565) 338 1,486 (4,320) 1,518 6,211 (3,531) (389) 1,397 2,335 Other Accrued Liabilities 461 86 461 (414) 86 419 (664} (81) 461 (414) 86 (423) 61 Total Working Capital (3,077) (5,702) 8,320 (3,546) 1,926 1,452 74 (2,992) 6,017 (3,629) (4,933) 8,902 2,8t3 Other L/I- Assets - Misc. 0 0 0 0 0 0 0 0 Total Other 0 0 0 0 0 0 0 0 Net Cash From Operations (1,983) (4,349) 9,848 (1,943) 3,657 3,958 (764) (1,021) 8,648 (1,487) (3,348) 10,700 21,917 Capital Expenditures (700) (1,055) (780) (1,142) (266) (35) (1,085) (150) (185) (614) (148) (100) (6,260) Free Cash Flow * (2,683) (5,404) 9,068 (3,085) 3,391 3,923 (1,849) (t,171) 8,463 (2,101) (3,496) 10,600 '15,657 * Free Cash Flow excludes: AR Factoring Asset Backed Securities Intercompany Cash Overdrafts Goodwill Hedge Minority interest Investment in Affiliates "~-", t,,U~L -~U,;.t~'c~ I ~ ¢' Web ........................ ; ,.~:,,,,;. ....... "'u'~'" (" CNN/Money Home Iflarkets News 3obs& Economy World Biz Technology Commentary Personal Finance Iflutual Funds Honey Magazine NEWS > COMPANIES > Company Research Lear Corporation LEA (NYSE) $53.31 + $-0.24 -0.45% 2/16/2005 3:30 PM ET Bi~C liar1 Quote Snapshot Charts Estimates Analyst Reports Insiders SEC Filings Financials News Historical ncome Statement {Balance Sheet C~h Fl'ow Stat~, men~t~ Annual Statement Show Ouarterlv Fiscal Year-End 12/31 All data in mi[lions 2003 2002 2001 2000 Net Income (Loss) 380.50 13.00 26.30 274.70 Depreciation and Amortization 321.80 301.00 392.20 392.20 Net Increase (Decrease) In Assets Liabilities (298.10) (122.20) 245.00 21.20 Cash Provided By (Used In) Discontinued Operations n/a 298.50 n/a n/a Other Adjustments. Net 182.10 54.80 166.30 65.00 Net Operating Cash Flow 586.30 545.10 829.80 753.10 Increase (Decrease) In Property, Plant, and Equipment (375.60) (272.60) (267.00) (322.30) Acquisition/Disposition Of Subsidiaries Or Other Business 20.00 (15.20) 50.60 105.10 Increase (Decrease) In Investments n/a n/a n/a n/a Other Cash Inflow (Ouflow) From Investments 8.80 28.50 15.30 (7.90) Net Investing Cash Flow (346.80) (259.30) (201.10) (225.10) Issuances (Purchases) Of Equity Security 65,30 47.40 10.10 (75,80) Issuances (Repayments) Of Debt Security n/a 250.30 223.40 n/a Dividends Or Other Distributions n/a n/a n/a n/a Other Cash Inflow (Outflow) From Financing n/a ,10 n/a .70 Net Financing Cash Flow (158.60) (295.80) (645.50) (523.80) Effect Of Exchange Rates On Cash (3.30) 14.10 5.60 (12.30) Net Change In Cash Or Equivalents 77.60 4.10 (11.20) (8.10) Cash - Beginning Of Year 91.70 87.60 98.80 106.90 Cash - End Of Year 169.30 91.70 87.60 98.80 redvertiser links ehat'$ this?, ~tt~://m~ney~cnn.c~n~news/c~m~ani~s/r~s~arc~dresearch~htrn~?~g=~&~symb=LEA&s~ d= ~ 2: Home Markets News .lobs & Economy World Biz Technology Commentary Personal Finance Mutual Funds Money Magazin NEWS > COMPANZES > Company Research Lear Corporation LEA (NYSE) $53.31 + $-0.24 -0.45% 2/16/2005 3:30 PM ET B i g C h a r t., Quote Snapshot Charts Estimates Analyst: Reports Insiders SEC Filings Financials News Historical (: ~,,~ncome~tatem ~en~ Balance Sheet I Cash Flow Statement Annual Statement _Show Ouarterlv Fiscal Year-End 12/31 All data in millions 2003 2002 2001 2000 Net Sales 15,746.70 14,424.60 13,624.70 14,072.80 Cost Of Goods Sold 14,400.30 13,164.30 12,589.90 12,622.70 Gross Profit 1,346.40 1,260.30 1,034.80 1,450.10 R and D Expenditures n/a n/a n/a n/a SG and A Expenses 573.60 517.20 514.20 524.60 Income Before Depreciation and Amortization 772.80 743.10 520.60 925.30 Depreciation and Amortization n/a n/a 90.20 89.90 Non-Operating Income (51.80) (52.10) (78.30) (35.00) Interest Expense 186.60 210.50 254.70 316.20 Income Before Tax 534.40 480.50 97.40 484.20 Provision For income Taxes 153.70 157.00 63.60 197.30 Minority Interest 8.80 13.30 11.50 13.90 Investment Gains (Losses) n/a n/a n/a n/a Other Income 8.60 1.30 4.00 1.70 Net Income Before Extra Items 380,50 311.50 26.30 274.70 Extra Items Discontinued Operations n/a (298.50) n/a n/a Net Income 380.50 13,00 26,30 274.70 iadvertiser links ehat's this?- http//money cfm com/news/companics/rcsearch/rcsearch.html?pg=fi&osymb=LEA&sid=123 CNN/Money Home Markets News 3obs & Economy World Biz Technology Commentary Personal Finance 14utual Funds HoneylVlagazine NEWS > COMPANIES > Company Research Lear Corporation LEA (.¥SE} $53.31 ~' $-0.24 -0.45% 2/1~/2005 3:29 PM ET Bi g C tt a r t Quote Snapshot Charts Estimates Analyst Reports Insiders SEC Filings Financials News Historical Annual Statement Show Quarterly Fiscal Year-End 12/31 All data in millions 2003 2002 2001 2000 Cash 169.30 91.70 87.60 98.80 Marketable Securities n/a n/a n/a n/a Receivables 2,200.30 1,508.00 1,392.80 1,639.00 Inventories 550.20 489.70 440.30 538.80 Raw Materials n/a n/a n/a n/a Work In Progress n/a n/a n/a n/a Finished Goods n/a n/a n/a n/a Notes Receivable n/a n/a n/a n/a Other Current Assets 455.60 418.30 446.10 551.40 Total Current Assets 3,375.40 2,507,70 2,366.80 2,828~00 Property, Plant, and Equipment, Gross 1,817.80 1,710.60 1,715.70 1,891.30 Accumulated Depreciation n/a n/a n/a n/a Property, Plant, and Equipment, Net 1,817.80 1,710.60 1,715,70 1,891.30 Investment Advances To Subsidiaries n/a n/a n/a n/a Other Non-Current Assets n/a n/a n/a n/a Deferred Charges n/a n/a n/a n/a Intangibles 2,940.10 2,860.40 3,139.50 3,266.60 Deposits And Other Assets 437.70 404.30 357.20 389.60 Total Assets 8,571.00 7,483.00 7,579.20 8,375.50 Notes Payable 17.10 37.30 63.20 72.40 Accounts Payable 2,444.10 1,966,40 1,982,90 2,174.00 Current Long Term Debt 4,00 3.90 129.50 158.60 Current Portion Capital Leases n/a n/a n/a n/a Accrued Expenses 1,116.90 1,037,60 1,007.20 969.60 http://m~ney~cnn~c~nffn~ws/c~mpanies/research/research~htm~?pg=fi&~symb=LEA&sid= 122 News:Company Research Income Taxes n/a n/a n/a n/a Other Current Liabilities n/a n/a n/a n/a Total Current Liabilities 3,582,10 3,045.20 3,182.80 3,371.60 Mortgages n/a n/a n/a n/a Deferred Charges To Income n/a n/a n/a n/a Convertible Debt n/a n/a n/a n/a Long Term Debt 2,057.20 2,132.80 2,293.90 2,852.10 Non-Current Portion Of Capital Leases n/a n/a n/a n/a Other Long Term Liabilities 674.20 642.70 543.40 551 .O0 Total Liabilities 6,313.50 5,820.70 6,020.10 6,774.70 Minority interest Liabilities n/a n/a n/a n/a Preferred Stock n/a n/a n/a Common Stock, Ne[ .70 .70 ~70 .70 Capital Surplus 1,027.70 943.60 888.30 874.1 0 Retained Earnings 1,441.80 1,075,80 1,062.80 1,036.50 Treasury Stock 110.80 111.40 111.40 111.40 Other Equity (101.90) (246.40) (281.30) (199,10) Total Shareholder Equity 2,257.50 1,662.30 1,559.10 1,600.80 Total Liabilities Shareholders Equity 8,571.00 7,483.00 7,579.20 8,375.50 I OVVA Section B- CEBA I changing 1. Which program component is the Business applying for? [] Small Business Gap Financing [] New Business Opportunity [] New Product Development · Modernization Component 2. Funding Information: Total Amount Requested: $ 500,000 Loan Amount: $ 0 Forgivable Loan Amount: $ 500,000 See Chapter 53, Section 261 in the CEBA Administrative Rules for maximum funding amounts. The CEBA program is not designed to provide 100% funding for any project and limits assistance based on the type of project submitted. 3. Security: [] Corporate Guaranty [] Surety Bonds [] UCC Financing Statement [] Mortgage on Real Estate · Irrevocable Letter of Credit [] Escrow Account [] Personal Guarantee [] Other: All awards secured by Personal Guarantees will require a current financial statement from each of the personal guarantors, which must be attached to the application. 4. Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise Job Padicipants? · Yes [] No 5. Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other chemicals, waste oil or other liquid waste or any other inflammable, corrosive, reactive or explosive liquid or gas located on the project site? [] Yes · No if yes, please explain: Will the Business be storing above-ground, on or about the project site, in tanks or otherwise, any liquid or gas (as described above) or any inflammable, corrosive, reactive or explosive solid, for any length of time or any purpose? · Yes [] No Store raw materials for our manufacturing processes in above ground tanks located inside the building. Will the Business be treating, transporting or disposing of any liquid, gas, or solid (described above) either on or about the project site or at a landfill or other treatment facility or upon any public street or highway, or on any waterway or body of water, or in any aircraft? · Yes [] No We have waste transported offsite for disposal and recycle in van and bulk trailers. Section B - CEBA 2/4/2005 1 If yes, please specify the substance and what the Business will be doing with it. 6. Does the Business generate solid or hazardous waste? , Yes [] No If yes, please describe and provide a copy of the Business' solid and hazardous waste reduction plans. Brief history of efforts to reduce waste. (Please See Attachment B1). 1991 Iowa Governor's Waste Reduction Award 1991 Iowa City Area chamber of Commerce award Innovative business practices in solid waste management 1996 Iowa Governor's Waste Reduction Award 2002 Host company for IDNR pollution prevention intern 2003 Host company for IDNR pollution prevention intern 2002 -Present ISO 14001 environmental management system registered Last 3 years reduction in landfill tonnage: 2002 waste 1363.72 tons 2003 waste 1175.26 tons 2004 waste 1056.68 tons Attachments Please attach the following documents: B3 Community resolution authorizing the submission of the application Section B - CEBA 2~4~2005 2 Attachment B1 LEAR IOWA CITY ISO14001 2005 INITIATIVES A)Pollution Prevention 1) Recycling I) Fine tune in-plant recycling area II) Set goal of 1.3 dollars received from recycling activities versus dollars spent on waste disposal. 2) Monitor four significant aspect projects. I) Plastisol II) Waterborne Paint Treatment III) Oil and Water IV) Electrostatic paint 3) Continue pollution prevention team meetings. I) Start energy conservation projects. 4) Continued development of Spray Urethane technology. I) Reduce usage ofpolyvinyl chloride. B) Increase Proactive Stakeholder Involvement 1) Participation in EPA and IDNR Strategic Goals Program (SGP) for Metal Finishers in Iowa. 2) Planting and development of natural prairie landscaping on east property boundary. C:~Documents and Settings\SNasby\Local Settings\Temporary Internet · Files\OLK434A~BMURRY~ 1 .DOC Prepared by: Steven Nasby, Comm. & Eco. Dev. Coord., 410 E. Washington St., Iowa City, IA 52240 (319) 356 5248 RESOLUTION NO. RESOLUTION AUTHORIZING APPLICATION FOR FINANCIAL ASSISTANCE FROM THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR COMMUNITY ECONOMIC BETTERMENT ACCOUNT (CEBA) FUNDS TO ASSIST THE LEAR CORPORATION. WHEREAS, the Iowa City Community Economic Betterment Account (CEBA) program provides loans to cities to promote economic development and create long-term employment opportunities; and WHEREAS, it is in the public interest to use State funding to encourage economic development in Iowa City, Iowa; and WHEREAS, the City of Iowa City desires to be the sponsor and apply for and obtain $500,000 in CEBA funding from the Iowa Department of Economic Development in the form of a grant, in order to assist in the expansion of the Lear Corporation facility in Iowa City, Iowa; and WHEREAS, it is necessary to provide a local contribution, and the City will be making public infrastructure improvements and funds for facilities improvements as an economic development tool; and WHEREAS, in order to obtain a competitive CEBA award, the City has approved $250,000 in funds for public improvements to assist the Lear Corporation, which was approved by Resolution No. ; and WHEREAS, the City has the authority to provide financial assistance for promotion of economic development. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. It is in the public interest to encourage economic development by the City of Iowa City, as applicant, and Lear Corporation as the business, applying for CEBA funding. 2. The Mayor and City Clerk are hereby authorized to make formal application for financial assistance to the Iowa Depadment of Economic Development for Community Economic Betterment Account funds in the amount of $500,000. Resolution No. Page 2 3. The City Manager is hereby authorized to take any additional actions required by the Iowa Department of Economic Development and the CEBA program'in order to secure said funding. Passed and approved this day of ,2005. MAYOR Approved by ATTEST: CITY CLERK City Attorney's Office It was moved by and seconded by the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliott Lehman O'Donnell Vanderhoef Wilburn ppdcdbglreslceba,doc I OVVA Section D - New Capital t!'/~ t c hanging~ Investment Program Attachments Please attach the following documents: D1 Resolution by the sponsoring City Council or County Board of Supervisors approving this application Section D- NCIP 2/4/2005 1 Prepared by Steve Nasby, Community & Economic Dev. Coordinator 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IOWA CITY APPROVING THE APPLICATION OF LEAR CORPORATION FOR THE PURPOSE OF RECEIVING BENEFITS UNDER 2003 IOWA ACTS, HOUSE FILE 6?7, THE NEW CAPITAL INVESTMENT PROGRAM. WHEREAS, the City of Iowa City has received a request by Lear Corporation to approve and submit an application to the State of Iowa under 2003 Iowa Acts, House File 677, the New Capital Investment Program. WHEREAS, the New Capital Investment Program was established to promote economic development in the State of Iowa; and WHEREAS, the City Council supports activities which promote and facilitate economic development within Iowa City; and WHEREAS, Lear Corporation has indicated they will: 1. Provide comprehensive health benefits to its employees. 2. Retain at least 318 full-time, or career positions that pay an hourly wage of $14.00 per hour or greater. 3. Make a new investment in the Iowa City facility of at least $17,000,000 within the next three years. NOW, THEREFORE, BE IT RESOLVED by the City Council of Iowa City: a. The City of Iowa City approves the expansion of Lear Corporation in Iowa City for purposes of receiving the benefits of 2003 Iowa Acts, House File 677 authorizing the New Capital Investment Program. b. The city clerk shall provide a copy of this Resolution to the Iowa Department of Economic Development. c. Officers of the City are hereby authorized to take such further actions as deemed necessary in order to carry into effect the provisions of this Resolution. d. All Resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. e. That the provisions of this Resolution are hereby declared to be separable and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions hereof. f. This Resolution shall become effective immediately upon its passage and approval. Resolution No. Page 2 PASSED, APPROVED, AND ADOPTED this day of 2005. Mayor ATTEST: Approved by Clerk City's Attorney Office It was moved by and seconded by the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliott Lehman O'Donnell Vanderhoef Wilburn ppdcdbg\res\ncip.doc 03-0117'05 Prepared by Steve Nasby, Community & Economic Dev. Coordinator 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. 05-108 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IOWA CITY APPROVING THE APPLICATION OF LEAR CORPORATION FOR THE PURPOSE OF RECEIVING BENEFITS UNDER 2003 IOWA ACTS, HOUSE FILE 677, THE NEW CAPITAL INVESTMENT PROGRAM. WHEREAS, the City of Iowa City has received a request by Lear Corporation to approve and submit an application to the State of Iowa under 2003 Iowa Acts, House File 677, the New Capital Investment Program. WHEREAS, the New Capital Investment Program was established to promote economic development in the State of Iowa; and WHEREAS, the City Council supports activities which promote and facilitate economic development within Iowa City; and WHEREAS, Lear Corporation has indicated they will: 1. Provide comprehensive health benefits to its employees. 2. Retain at least 318 full-time, or career positions that pay an hourly wage of $14.00 per hour or greater. 3. Make a new investment in the Iowa City facility of at least $17,000,000 within the next three years. NOW, THEREFORE, BE IT RESOLVED by the City Council of Iowa City: a. The City of Iowa City approves the expansion of Lear Corporation in Iowa City for purposes of receiving the benefits of 2003 Iowa Acts, House File 677 authorizing the New Capital Investment Program. b. The city clerk shall provide a copy of this Resolution to the Iowa Department of Economic Development. c. Officers of the City are hereby authorized to take such further actions as deemed necessary in order to carry into effect the provisions of this Resolution. d. All Resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. e. That the provisions of this Resolution are hereby declared to be separable and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions hereof. f. This Resolution shall become effective immediately upon its passage and approval. Resolution No. 05_108 Page 2 PASSED, APPROVED, AND ADOPTED this 1 st day of March 2005. It was moved by Bai 1 ey and seconded by 0'Donnell the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn ppdcdbg~res\ncip.doc Prepared by: Kevin O'Malley, Finance Director, 410 E. Washington St., Iowa City, IA 52240; 319-356-5053 RESOLUTION NO. 05-109 RESOLUTION ADOPTING THE ANNUAL BUDGET EXCLUDING HUMAN SERVICES AID TO AGENCIES FOR THE FISCAL YEAR ENDING JUNE 30, 2006. WHEREAS, a public hearing on the proposed budget for the fiscal year ending June 30, 2006 was held on February 15, 2005, at a regularly scheduled City Council meeting and public comments were received. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The annual budget for the fiscal year ending June 30, 2006, as set forth in the Adoption of Budget and Certification of Taxes and on the Adopted Budget Summary, together with the detailed budget in support thereof showing revenue estimates, appropriation expenditures, and program allocations for said fiscal year should be and hereby is adopted except for the expenditures for Human Services Aid to Agencies totaling $433,954 which will be approved by separate resolution. 2. The City Clerk is hereby directed to make the filings required by law, and to set up the books in accordance with the summary and details, as adopted. Passed and approved this !st day of Hatch ,2005. cI'r~'-CLERK City Attorney's Office It was moved by 0'Donne] ] and seconded by Vanderhoef the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn finadm~res~nnlbdgt.doc Prepared by: Kevin O'Malley, Finance Director, 410 E. Washington St., Iowa City, IA 52240; 319-356-5053 RESOLUTION NO. 05-110 RESOLUTION ADOPTING THE ANNUAL BUDGET FOR HUMAN SERVICES AID TO AGENCIES FOR THE FISCAL YEAR ENDING JUNE 30, 2006, WHEREAS, a public hearing on the proposed budget for the fiscal year ending June 30, 2006 was held on February 15, 2005, at a regularly scheduled City Council meeting and public comments were received. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The annual budget for the fiscal year ending June 30, 2006 for Human Services Aid to Agencies totaling $433,954 should be and hereby is adopted. 2. The City Clerk is hereby directed to make the filings required by law, and to set up the books in accordance with the summary and details, as adopted. Passed and approved this 1st day of March ,2005. CITY'CLERK ' City Attorney's Office It was moved by Vonderhoef and seconded by J~ai ]ev the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: AB STA 1~ N: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef Wilburn X finad rnYes~annlbdgt-hurnan serv.doc Prepared by: Kevin O'Malley, Finance Director, 410 E. Washington St., Iowa City, IA 52240; 319-356-5053 RESOLUTION NO. 05-111 RESOLUTION APPROVING THE FINANCIAL PLAN FOR THE CITY OF IOWA CITY, IOWA, FOR FISCAL YEARS 2006 THROUGH 2008 AND THE MULTI- YEAR CAPITAL IMPROVEMENTS PROGRAM THROUGH FISCAL YEAR 2009. WHEREAS, the City Council of the City of Iowa City deems it in the public interest and in the interest of good and efficient government for the City of Iowa City, Iowa, to adopt a three-year Financial Plan for operations and a multi-year Capital Improvements Program budget; and WHEREAS, the three-year Financial Plan and multi-year Capital Improvements Program are subject to annual review and revisions; and WHEREAS, a public hearing was held on February 15, 2005, at a regularly scheduled City Council meeting and public comments were received. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The City Council of the City of Iowa City does hereby adopt the three-year Financial Plan for the Fiscal Years 2006 through 2008 and the multi-year Capital Improvements Program through Fiscal Year 2009. 2. This Resolution is an expression of the Council's legislative intent for planning future operation and capital improvements for the City of Iowa City, Iowa; and the anticipated means of financing said plan, subject to applicable laws. Passed and approved this 1st day of March ., 2005. ~ Apprg~E.b_.~~ Ci'l-~ CLERK City Attorney's Office finad m\res\tinplan.doc Resolution No. 05-111 Page 2 It was moved by Vanderhoef and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn Publish 2/18 NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of General Obligation Bonds of the City of Iowa City, Iowa, will be received at the office of the Finance Director, in the City of Iowa City, Iowa (the "Issuer") at 1:00 o'clock P.M., on the 1st day of March, 2005. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the TERMS OF OFFERING. The Bonds: The bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2005A, in the amount of $7,020,000, to be dated March 29, 2005 (the "Bonds"). Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: · Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director, Iowa City, Iowa · Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director, Iowa City, Iowa. The bids must be submitted through the PARITY® competitive bidding system. · Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director, Iowa City, Iowa. Electronic facsimile bids will be sealed and treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the bonds will be held at the Emma J. Harvat Hall, City Hall at a meeting of the City Council on the above date at 7:00 o'clock P.M. Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the Finance Director, City Hall, 410 E. Washington Street, Iowa City, Iowa, 52240 - telephone: (319) 356-5053; or the City's Financial Consultant, Public Financial Management, Inc., 2600 Grand Avenue, Suite 214, Des Moines, Iowa, 50312 - telephone: (515) 243-2600. Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Terms of Offering as set forth in the Official Statement. Legal Opinion: Said bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines, Iowa, as' to the legality and their opinion will be furnished together with the printed bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the bonds. Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Iowa City, Iowa. Marian K. Kart City Clerk of the City of Iowa City, Iowa (End of Notice) 441586.1\WP10714086 Kevin O'Malle¥ From: Moody's Investors Service [epi@moodys.com] Sent: Tuesday, February 22, 2005 7:38 AM To: kevin-omalley@iowa-city .org Subject: Iowa City (City of) IA MOODY'S ASSIGNS Aaa RATING TO THE CITY OF IOWA CITY'S (IA) $7.0 MILLION G.O. BONDS, SERIES 2005 Aaa AFFIRMATION AFFECTS $92.1 MILLION OF OUTSTANDING PARITY BONDS, INCLUDING CURRENT ISSUE Iowa City (City of) IA ~ ~ Municipality / Iowa Moody's Rating ~ Issue Rating General Obligation Bonds, Series 2005A Aaa Sale Amount $7,020,000 Expected Sale Date 03/01/05 Rating Description General Obligation Unlimited Tax NEW YORK, February 18, 2005 -- Moody's Investors Service has assigned a Aaa rating to the City of Iowa City's (IA) $7.02 million General Obligation Bonds, Series 2005. The Bonds, which is secured by the city's general obligation unlimited tax pledge, will finance various citywide capital improvements. Concurrently, Moody's has affirmed the Aaa rating on the city's $92.1 million of outstanding parity debt, including the current issue. Moody's highest quality Aaa rating is based on the city's strong and diverse local economy benefiting from the presence of the state's flagship university, sound financial operations characterized by healthy reserve levels, and favorable debt profile. STRONG AND DIVERSE LOCAL ECONOF[Y BENEFITS FROM PRESENCE OF UNIVERSITY Moody's expects the city's local economy to remain strong due to the stability afforded by the University of Iowa (revenue bonds rated Aa2) and the University of Iowa Hospitals and Clinics. Significant employment opportunities for more than 20,000 people at the University and its medical center, complemented by a mix of service and light manufacturing entities, result in economic stability and continued moderate economic growth. The University of Iowa is the flagship public institution in the state, with Fall 2004 enrollment exceeding 26,000. These positive economic factors continue to drive tax base growth with assessed valuation increasing 5.4% annually over the last five years and full value reaching a sizable $3.19 billion for the 2004 assessment year. Moody's expects the current level of growth will be maintained due %o continued commercial and residential development, as well as the availability of land for development Despite the significant student population, the city's wealth levels are healthy, exceeding state averages. The unemployment rate of 4.0% as of Decentber 2004 is lower than the state rate of 4.7% and the national level of 5.1% for the same time period in the city. SOUND FINANCIAL OPEP~ATIONS CH3~RACTERIZED BY HEALTHY RESERVE LEVELS Moody's believes the city's financial operations will remain sound given a demonstrated record of prudent management and conservative budgeting practices. Results for Fiscal 2004 were positive despite the city's budget being dramatically impacted by state funding reductions and declines in the residential rollbacks. Thorough the use of various revenue enhancements and ! revenue reductions, the city realized an increase of $1.3 million in the General Fund, which resulted in a year-end General Fund balance of $14.69 million, or a healthy 36% (after transfers) of General Fund revenues. Favorably, city officials expect balanced operations for fiscal 2005. The city derives the bulk of its revenues from property taxes, comprising almost two-thirds of core revenues during fiscal 2004. The strength and stability of the property tax base lends further support to Moody's expectation of consistently sound financial operations. Also, the city is currently at its operating lev!; rate limit and is using its emergency levy for some operational expenditures. FAVOR3%BLE DEBT PROFILE WITH DIRECT DEBT SUBJECT TO AGGRESSIVE RETIREMENT Moody's believes the city's debt profile will remain favorable as outstanding debt is rapidly retired and taxable resources will continue to expand, moderating the impact of the city's limited future borrowing plans. The debt burden of 3.8% is average and the direct debt is similarly average at 2.9% of full valuation. The rate of principal amortization is rapid with 78% of general obligation debt retired in ten years. The city policy of not issue more than it retires in a given year is being met with the expected issuance of $4 million at the end of 2005 and another $~ million in fiscal 2006. KEY STATISTICS 2002 estimated population: 63,618 2004 full valuation: $3.19 billion 2004 full valuation per capita: $51,294 Overall debt burden: 3.8% Direct debt burden: 2.9% Principal amortization (10 years): 78% Fiscal 2004 General Fund balance: $14.6 million (36% of General Fund revenues) Median family income as % of state: 120% Per capita income as % of state: 103% Unemployraent (December 2004): 4.0%, State 4.7% Post-sale parity debt outstanding: $92.1 million ~N~_LYSTS: Paul Nolan, ~-nalyst, Public Finance Group, Moody's Investors Service Sara A. Schnoor, Backup knalyst, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2005, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved. March 1, 2005 The Finance DireCtor of Iowa City, Iowa, met at the Civic Center, 410 East Washington Street, Iowa City, Iowa, at one o'clock P.M., on the above date, to open sealed bids received, access electronic bids and to refer the sale of the bonds to the best and most favorable bidder for cash, subject to approval by the City Council at seven o'clock P.M. on the above date. The following were present: David Dirks Marian Karr Kevin O'Malley Leigh Lewis This being the time and place for the opening of bids for the sale of $7,020,000 General Obligation Bonds, Series 2005A, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: t. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders NIC ($) TIR(%) Northland Securities Minneapolis, MN 1,573,431.72 3.6593 2. The Finance Director then declared the time for filing 'of sealed bids to be closed and that sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders NIC ($) TIR(%) J.P. Morgan Securities Chicago, IL 1,508,519.11 .3.5708 Hutchinson, Shockey, Chicago, IL 1,512,475.01 3.5734 Erly & Co. Wachovia Bank Charlotte, NC 1,512,825.35 3.6051 Citigroup Global Markets Chicago, IL 1,525,307.67 3.6158 4. The best bid was determined to be as follows: Name & Address of Bidder: J.P. Morgan Securities Chicago, IL Net Interest Cost: $1,508,519.11 True Interest Rate: 3.5708% All bids were then referred to the Council for action in accordance with the Notice of Sale. Terrace Place, Suite 214 515 243-2600 2600 Grand Avenue 515 243-6994 fax Des Moines, IA 50312 The PFM Group TABULATION OF BIDS CITY OF IOWA CITY, IOWA $7,020,000 General Obligation Corporate Purpose Bonds, Series 2005A March 1, 2005 TABULATION OF BIDS City of lowa City, Iowa $7,020,000 General Obligation Corporate Purpose Bonds, Series 2005A AWARD: J.P. MORGAN SECURITIES RATING: Moody's AAA SALE DATE: Tuesday, March 1, 2005 COUPON NET INTEREST COST I NAME OF BIDDER RATE YEAR & TRUE INTEREST RATE PRICE J.P.MORGAN SECURITIES 3.00% 2006 $1,508,519.11 $7,062,928.60 Chicago, Illinois 3.00% 2007 3.25% 2008 3.5708% 3.25% 2009 3.50% 2010 3.50% 2011 3.75% 2012 3.75% 2013 4.00% 2014 4.00% 2015 HUTCHINSON, SHOCKEY, ERLY & CO. 3.50% 2006 $1,512,475.0l $7,094,552.25 Chicago, lllinois 3.50% 2007 3.50% 2008 3.5734% 3.50% 2009 3.50% 2010 3.625% 2011 3.75% 2012 3.875% 2013 4.00% 2014 4.00% 2015 WACHOVIA BANK 3.00% 2006 $1,512,825.35 $7,001,360.00 Charlotte, North Carolina 3.00% 2007 3.00% 2008 3.6051% 3.25% 2009 3.50% 2010 3.50% 2011 3.50% 2012 3.75% 2013 3.75% 2014 3.75% 2015 CITIGROUP GLOBAL MARKETS, Chicago, Illinois 3.00% 2006 $1,525,307.67 $7,041,207.30 UBS Financial Services 3.00% 2007 Bear Stearns 3.00% 2008 3.6158% Cronin & Co. Inc 3.25% 2009 Citizens Bank 3.25% 2010 CIBC World Markets 3.25% 2010 3.50% 2011 3.625% 2012 4.00% 2013 4.00% 2014 4.00% 2015 NORTHLAND SECURITIES 3.00% 2006 $1,573,431.72 $7,206,781.75 Minneapolis, Minnesota 3.00% 2007 3.00% 2008 3.6593% 3.50% 2009 3.50% 2010 4.00% 2011 4.00% 2012 4.00% 2013 5.00% 2014 5.00% 2015 March 1, 2005 The Finance Director of Iowa City, Iowa, met at the Civic Center, 410 East Washington Street, Iowa City, Iowa, at one o'clock P.M., on the above date, to open sealed bids received, access electronic bids and to refer the sale of the bonds to the best and most favorable bidder for cash, subject to approval by the City Council at seven o'clock P.M. on the above date. The following were present: David Dirks Marian Karr Kevin O'Malle¥ Leigh Lewis This being the time and place for the opening of bids for the sale of $7,020,000 General Obligation Bonds, Series 2005A, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders NIC ($) TIR(%) Northland Securities Minneapolis, MN 1,573,431.72 3.6593 2. The Finance Director then declared the time for filing of sealed bids to be closed and that sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders NIC ($) TIR(%) J.P. Morgan Securities Chicago, IL 1,508,519.11 .3.5708 Hutchinson, Shockey, Chicago, IL 1,512,475.01' 3.5734 Erly & Co. Wachovia Bank Charlotte, NC 1,512,825.35 3.6051 Citigroup Global Markets Chicago, IL 1,525,307.67 3.6158 4. The best bid was determined to be as follows: Name & Address of Bidder: J.P. Morgan Securities Chicago, IL Net Interest Cost: $1,508,519.11 True Interest Rate: 3.5708% All bids were then referred to the Council for action in accordance with the Notice of Sale. March 1 ,2005 The City Council of Iowa City, Iowa, met in re.qul ar session, in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7: 00 o'clock P .M., on the above date. There were present Mayor Lehman , in the chair, and the following named Council Members: Bailey, Champion, [lliott. Lehman, O'Donnell. Vanderhoef, Wilb~rn Absent: None -3- Council Member Champi on introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $7,020,000 GENERAL OBLIGATION BONDS SERIES 2005A," and moved its adoption. Council Member 0' Oonnel 1 seconded the motion to adopt. The roll was called and the vote was, AYES: Vanderhoef, Wilburn, Baile.¥, Champion, Elliott. Lehman. O'Donnell NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: Resolution No. 05-112 RESOLUTION DIRECTING SALE OF $7,020,000 GENERAL OBLIGATION BONDS, SERIES 2005A WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds described as follows and the best bid received is determined to be the following: $7,020,000 GENERAL OBLIGATION BONDS, SERIES 2005A: Bidder: J.P. Morgan Securities of Chicago, IL the tem;s of said bid being: Purchase Price: $ 7,062,928.60 True Interest Rate: 3. 5708 % Net Interest Cost $ 1,508,51g. 11 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: -4- Section 1. That the bid for the bonds as above set out is hereby determined to be the best and most favorable bid received and, said bonds are hereby awarded based on said bid. Section 2. That the statement of information for bond bidders and the form of contract for the sale of said bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the bonds heretofore given and all acts of the Clerk done in furtherance of the sale of said bonds are hereby ratified and approved. PASSED AND APPROVED, this 1st day of March ,2005. ATTEST: erk MMCGINLE5441319. I\WPI0714.086 -5- CIG-3 9/91 CERTIFICATE STATE OF IOWA ) ) ss COUNTY OF JOHNSON ) I, the undersigned City Clerk of Iowa City, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a tree and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this 3rd day of March ,2005. City C~erk, Iowa City, Iowa SEAL MMCGINLE5439448.1 ~WP 10714.086 Prepared by: Kevin O'Malley, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5053 RESOLUTION NO. 05-113 RESOLUTION RESCINDING RESOLUTION 04-180 AND ESTABLISHING A NEW POLICY FOR USE OF FUNDS DERIVED FROM HOTEL-MOTEL TAX. WHEREAS, as authorized by Chapter 422A of the Code of Iowa, at an election on November 3, 1992, the voters of Iowa City approved an increase from five percent (5%) to seven percent (7%) for the tax upon gross receipts from rental of hotel and motel rooms in the City; and WHEREAS, Code Section 422A.2 places certain limitations on the use of fifty percent (50%) of the funds derived from the hotel-motel tax; and WHEREAS, the City Council adopted Resolutions 98-164 and 04-180 establishing and revising a policy for use of funds derived from hotel-motel tax based on a seven percent tax approved by voters on November 3, 1992; and WHEREAS, the City Council has formally allocated the proceeds from hoteFmotel tax. WHEREAS, the City Council approved reallocating these funds during a FY2006 Budget Work Session on January 11, 2005. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. Resolution 04-180 is hereby rescinded and amounts received by the City from the hotel-motel tax shall be allocated as follows, effective July 1, 2005: a. Forty-seven and one-half percent (47.5%) shall be allocated to police protection. b. Twenty-five percent (25%) shall be allocated to the Iowa City-Coralville Convention & Visitors Bureau for the promotion and encouragement of tourism and convention business in the City. c. Twenty-seven and one-half percent (27.5%) shall be allocated for the constructing, improving, enlarging, equipping or operating of parks and recreational facilities. Passed and approved this 1st, day of Hat*ch ,20 05 ClTY'GLERK City Attorney's Office flnadm~res\hotlmotl.doc Resolution No. 05-113 Page 2 It was moved by Bailey and seconded by Wi 1 burn the Resoluiion be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliott X Lehman X O'Donnell X Vanderhoef X Wilburn