HomeMy WebLinkAbout05-16-2007 Council Economic Development Committee
AGENDA
City of Iowa City
City Council Economic Development Committee
Wednesday, May 16,2007
8:30 a.m.
City Hall
Lobby Conference Room
410 E. Washington St.
1. Call to Order
2. Approval of Minutes from April 6 and April 12, 2007.
3. CDBG Economic Development Fund Applications
a. Extend the Dream Lease
b. Extend the Dream Property Acquisition
4. Downtown Market Niche Analysis Status Report - Ford
5. Staff time
6. Committee time
7. Adjournment
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
April 6, 2007
LOBBY CONFERENCE ROOM
Preliminary
Members Present:
Regenia Bailey, Connie Champion, Bob Elliott
Members Absent:
None
Staff Present:
Wendy Ford, Karin Franklin
Others Present:
Mark Nolte (ICAD Group), Gigi Wood (Corridor Business Journal), Tom
Brandt (PSO), Nancy Quellhorst (Iowa City Area Chamber)
CALL MEETING TO ORDER
Chairperson Regenia Bailey called the meeting to order at 9:30 a.m.
Prep Sports Online Application for CEBA and HQJC funds throuQh IDEO
Ford indicated that she was approached by Joe Raso of ICAD regarding the possible
headquarters relocation by Prep Sports Online (PSO) to Iowa City. Tom Brandt, a representative
of PSO, introduced the company founded by Nile Anderson to help fund high school athletic
programs. Part of the company is a not-for-profit organization which provides money to
participating schools via website marketplaces created at no cost to the schools by PSO. The
company generates its revenue through advertising, content licensing, and multimedia sales.
Participating schools benefit from a revenue sharing program.
Elliott asked what percent of the revenues goes to the schools. Brandt was unable to give an
exact percent as each school varies some although he estimated that about 11 % of th~ revenues
would go back to schools. Bailey asked how the amount the schools receive is determined.
Brandt responded that it is through the individual agreements, but each school is guaranteed
$2,500. He added that next year the non-profit side of the company will have need-based funds
that can be applied for.
Bailey asked about the corporate structure of the company. Brandt responded that they are a
LLC; previously the not-for-profit was PSO, now it will be Prep Sports Foundation retaining the
same structure just with a new name.
Bailey asked for clarification from Brandt on a third revenue source - multimedia sales. Each
school would have their own online store where people can purchase uploaded images; schools
receive 15% of the revenue from those sales. Bailey asked how proprietorship over the images of
athletes is handled. Brandt responded that they own the rights to the images as designated in the
contract; this is similar to how newspapers own the rights to images taken and printed.
Franklin asked about the plan for collateralizing the requested $100,000. Brandt responded that
they will obtain an irrevocable letter of credit.
Bailey indicated that the projection for job creation and salaries is rather ambitious which was
echoed by Champion. Because a loan would be contingent on those projections, they wanted to
know if the projections were feasible. Brandt indicated that they spent a lot of time setting up their
model and that they are often told that their program sounds too good to be true. The model is
based on what PSO believes to be necessary to set up the minimum of 500 websites they are
committed to. The headcount and salaries in the application would be based in Iowa City.
Bailey asked who PSO's major competitors are. Brandt indicated that PSO does not have any
major competitors in part due to the strength of their Foundation and the value that schools find in
that. Competitors are relatively unattractive to schools as they cannot claim to give back money to
schools like PSO does. In addition, Mr. Anderson is dedicated to covering not only the star
players, but also the whole team and other individual athletes.
The committee determined it did not have enough information to make a recommendation either
way to the Council and would meet again to further discuss the PSO application after application
materials had been distributed and after staff had had a chance to review the business plan and
financials.
BuV Here! Campaian
Quellhorst indicated that after being approached by members of different sectors of the local
economy, a taskforce was assembled to look at a way of promoting local purchasing. The
campaign resulting from the taskforce's recommendation is a business-to-business purchasing
initiative and is voluntary. Businesses are requested to shift 5% of what they spend outside the
county back into Johnson County. There will be accountability through self-reporting, but the
program does not include policing. Local is being defined as businesses that pay property taxes
in Johnson County.
A study was conducted by Dave Swenson, economist with Iowa State University, looking at total
goods and services produced within the county and how that would be impacted by this
campaign. The gains for the County would be $92 million in goods, $27 million in labor, and 859
new jobs from business impacts alone. The study included impacts of household and public
sector spending for a gain of $125.6 million and 1,015 direct jobs as a result of this shift of 5%.
This campaign is modeled on a similar one in Des Moines which has been very successful.
Quellhorst anticipates that once it becomes clear what is not locally produced some
entrepreneurial opportunities would arise
Bailey asked what the Chamber of Commerce is asking for from the city. Quellhorst responded
that they are asking for $1,500 to be able to say that there is public sponsorship of this campaign
in addition to the interest from businesses. The current Chamber website will host a database to
coordinate the need with the local supply.
Elliott expressed satisfaction in the Chamber's attempt to get a lot of people involved with smaller
amounts of money rather than a few people with a lot of money. Ford indicated that she has set
up a meeting with Chairperson Bailey and the legal department to discuss implications and the
legality of supporting this program.
Bailey asked how this would affect the relationship within the Corridor since it would just be
Johnson County. Quellhorst responded that she believes there is potential to expand it to the
region, but Johnson County is a start. She indicated that the Chamber of Commerce in the
northern part of the Corridor is aware of this initiative. Bailey is concerned that by focusing on
Johnson County initially i,s a step backward since so much has been done with the Corridor so
far. Champion expressed that she does not think that this would be a step backward. Elliott
expressed that while he agrees that this would be good for the community, he is aware of the
concern about stepping back from the Corridor concept. He wants to ensure that the Iowa City
Chamber of Commerce makes it clear that this is the first step in the direction of a regional buy
local program.
Quellhorst offered to obtain data and other information from Des Moines as to how they were able
to work their program to help allay concerns that Committee members have regarding the
legalities.
Adiournment
Bailey moved the meeting be adjourned, Champion seconded. Motion carried.
Q)
Q)
~
E
E
o
(.)
...,
C
Q)"C
E 0
Q"U
o G)
-0::
Q)G)....
>UO
Q)CO
QCUN
U"g
.- G)
E=
0<C
c
o
U
w
-
.-
U
C
::::J
o
(.)
\Q
~ ><: ><: ><:
~
M
.... ><: ><: ><:
......
l"'l
-=
se ><: ><: ><:
~
t--
~ ><: ><: ><:
M
=
~ ><: ><: ><:
M
~
se ><: ><: ><:
M
~
~ ><: ><: ><:
....
<Il 00 00 00
E ,~ 0 ~ 0
-.... -....
N N N
Q) ~ ~ 0 ~
-....
t-<~ - - -
0 0 0
C
0
.... 'Q.
~ e
'; .... ~
= .... .c
~ ~ U
'= ~ ~
Q) "=
~ ~
ell ~ C
~ 0 0
Z = U
"0
Q)
CIl
::s
u
>c:
1::-~"O
~ ~ ~ ~
~~1l13
c........<r:>c:
II II II ~
. , Q)
.... f:2 CIl
~><:OO~
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
April 12, 2007
LOBBY CONFERENCE ROOM
Preliminary
Members Present:
Regenia Bailey, Connie Champion, Bob Elliott
Members Absent:
None
Staff Present:
Wendy Ford
Others Present:
Joe Raso
RECOMMENDATIONS TO CITY COUNCIL:
Champion moved, Elliott seconded that the committee recommends to the council the
support of an application on behalf of Prep Sports Online for funding from the Iowa
Department of Economic Development's Community Economic Betterment Account funds
and a local match. Motion carried.
CALL MEETING TO ORDER
Chairperson Regenia Bailey called the meeting to order at 10:04 AM.
Prep Sports Online Application for CEBA and HQJC funds throuqh IDEO
Raso gave an overview of the application. Prep Sports Online contacted Raso 6 - 8 weeks ago
considering locating headquarters in Iowa City. Real estate in Iowa City is considered better than
other regions company is considering and there is a strong desire to be located near the
University of Iowa. The nature of the project is noted in the application.
Elliott asked how long the tax credits from the state would be for. Raso explained the credits are
determined by hard assets, not working capital; and are formula-based and would yield 1-7% of
qualifying investment on a one time basis which must be applied to the firm's State corporate tax
liability. The High Quality Job Creation Credit is not yet determined.
Kirkwood may sell bonds to fund the creation of a job training program for Prep Sports Online
provided that jobs are created; this program has been in place for 23 years or so. If the company
were to leave before bonds are paid off, a skilled workforce would remain. 79 jobs are expected
to be created with the locating of Prep Sports Online within three years.
Bailey asked for clarification on whether the agreement is for 79 jobs after three years or some
increasing scale up to 79 in year three. Raso indicated that the State requires that the jobs be
created within three years, they do not monitor year to year for employment number targets. At
the end of those three years, if those jobs are not created, the State may consider circumstances
and may extend contract by 12 months or prorated paybacks.
Bailey asked why this company is looking to locate in Iowa City given that the capitalization here
is relatively small. Raso pointed out that Lear Corporation and Procter and Gamble have good
access to capitalization and yet located in Iowa City. Bailey expressed the sense that Economic
Development groups get criticized for awarding incentives to businesses that do not need them.
Champion responded that such requests are a matter of competition.
Bailey asked why this firm would want to locate in Iowa City with its higher cost of living and lower
unemployment. Raso commented that he asked the firm's representative this as well, why Iowa
City and not Chicago or Los Angeles or some other media center. The rep responded that there
is an image that Iowa and further Iowa City conveys on the business that is desired. Elliott
pointed out that the current location has a relatively lower educated workforce while this company
is relatively high tech. Raso added that high tech firms provides a draw for other businesses and
people including spouses of employees, etc. He further pointed out that if this venture were to fail,
the public entities would be protected. Bailey commented that they [the public entities] are smart
and thus would protect their interests. She indicated that Senator Grassley is very interested in
the accountability of non-profits. There is concern though with Prep Sports Online's business
structure; will the profits be "skirted" away to a non-profit? Elliott indicated that other than the
potential risk, he is concerned over the money that schools would get.
Bailey indicated that she wants to keep due diligence as the responsibility of the Committee and
hence the rigorous questioning of this project since the City would be associating with this
company. Elliott expressed concern that schools would only receive a small percentage while the
firm would be bringing in large amounts of money. Bailey responded that this is not bad so long
as the funding is transparent and appropriately structured. She wants to ensure reporting and
public accountability; information which schools would then have access to.
Elliott mentioned that he maintains his concerns, but is satisfied that they have been answered;
the risk is virtually nothing while high quality jobs and a better trained workforce is created. Elliott
indicated that he would like to see a letter of guarantee from a financial institution to support this
application.
Bailey said she wants to make sure that the Committee anticipates the questions that would be
raised in public meetings.
Champion moved to support the application to the State for CEBA funds with a local match of
$100,000 no interest loan, secured with an irrevocable letter of credit from an FDIC insured
financial institution. Raso asked if there is anything else that he could ask for from the company to
make the Committee more comfortable. Champion indicated that she is comfortable. Elliott
seconded.
Bailey asked if there was any further discussion; there was none. Motioned carried.
Adiournment
Bailey moved the meeting be adjourned, Elliot seconded. Motion carried
Q)
Q)
~
E
E
o
()
..
C
Q)"C
E 0
CoU
o CI)
-ct:
Q)CI).....
>UO
Q)CO
cnsN
U"g
.- CI)
E=:
0<(
c
o
(.)
w
-
.-
(.)
c
~
o
()
N
.... >c: >c: >c:
--
~
'C
~ >c: >c: >c:
~
N
~ >c: >c: >c:
--
ff')
'-=
se >c: >c: >c:
!'f'l
r--
t::! >c: >c: >c:
N
=
t::! >c: >c: >c:
N
0\
= >c: >c: >c:
--
N
!'f'l
t::! >c: >c: >c:
~
rJl 00 00 00
a .~ 0 0 0
-- -- --
N N N
Q) ~ 0 S2 0
-- --
E-<~ ..... ..... .....
0 0 0
=
0
~ 'is.
.!! e
.; .... ~
= .... -=
~ ~ u
'c ~ Q,I
Q,I Q,I 'c
e eJ) -= =
~ Q,I 0 0
z c:: = u
'"'0
Q,I
'"
;::l
u
><:
~~~'"'O
(I) (I) s::: (I)
[/) en C1.) en
(I) -= '" ;::l
O::<~~
II II II ~
,. (I)
~ e:!~
~>c:oo<
INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION-
LEASE
Business Proposed:
Extend the Dream Foundation (EDF) requests funds to partially fund the lease at
401 S. Gilbert Street (Uptown Bill's Small Mall). Uptown Bill's Small Mall houses
four micro-enterprises operated by persons with disabilities: Uptown Bill's Ice
Cream and Coffee Bar, Bills Bookmark, The Mad Hatler Room and Mr. Ed's
Super Graphics.
CDBG funds have assisted this location since 2001. $106,750 was provided for
the first three-year lease and $60,000 was provided for the subsequent three-
year lease. The applicant anticipates a $10,000 deficit for the 2007-08 lease.
Budget & Private Financial Contribution
Applicant is requesting funds to meet the one year lease cost of $40,200:
$20,200 EDF micro-enterprise earnings
$10,000 Johnson County
$10,000 City of Iowa City CDBG funds
Comprehensive Plan/CITY STEPS Plan
The project does not require public infrastructure and is located in a CB-5 zone
(central business support). CITY STEPS notes a high priority for employment
training and education skills and micro-enterprise assistance. The focus at EDF
is on improving the lives of persons with disabilities through employment training
and ownership opportunities.
Quality of Jobs
The project is an eligible activity under economic development as it provides
financial support for the establishment, stabilization and/or expansion of micro-
enterprises. (A micro-enterprise is a commercial enterprise that has five or
fewer employees, one or more of whom owns the enterprise.) There are no
employees as each person is considered an owner or a 1099 subcontractor.
Economic Impact
The proposed CDBG funds will assist a non-profit agency stabilize and retain a
property that will incubate micro-enterprises for persons with disabilities.
Environmental/Community Involvement
EDF provides opportunities for businesses and works to enhance the incomes of
persons with disabilities. In addition to operating six potential micro-enterprises
at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates an e-
commerce center that trains persons with disabilities to buy and sell products on
the internet to expand into home based businesses.
May 2007
Extend the Dream has been working with several community partners through
referrals for micro-enterprise or e-commerce training and hosting meeting spaces
for organizations such as AA meetings, Johnson County Coalition on Disability
and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited,
MECCA, CMHC, Elder Services and STAR homeless outreach.
Items to Address:
1. EDF is run entirely through volunteers. The organization has not had
consistent financial management during its years in operation. EDF must
have a financial system that provides control and accountability over funds
and assets, identifies the source and application of federal funds, provides
source documentation, has basic accounting records, and ensures an
adequate separation of financial duties. EDF has worked to resolve some
of these issues; however the organization must incorporate a financial
management system operated on a long term basis that will meet federal
minimal standards.
2. The balance sheet does not contain any fixed assets under the Assets
category. CDBG funds were used to acquire 912 2nd Ave. (2203 F.
Street). The purchase price was $245,000 ($122,000 CDBG conditional
occupancy loan, $75,000 HOME no interest loan, $48,000 private
lender/owner equity). All fixed assets should be included in the balance
sheet as well as their corresponding liability. Profit and loss statement for
Uptown Bill's shows an annual net income of $33,231.40 in 2006.
3. Since this is an organization completely run by volunteers, please discuss
a plan for succession if the director leaves the organization for any reason.
4. EDF provides the accounting and fiscal management for the businesses
incubated at Uptown Bill's Small Mall. Individual profit/loss statements
and cash flow statements were not provided. There is a profit/loss
statement for Uptown Bill's for the 2006 calendar year.
5. The applicant is a non-profit organization so technical assistance at the
Small Business Development Center may be difficult to obtain. The
organization may have to rely on donated financial management or
through consultant fees.
May 2007
Iowa City CDBG Economic Development Funds
Application for Business Financial
Assistance
Business Requesting Financial Assistance:
Individual: Thomas Walz on behalf of the Extend the Dream Foundation
Home Address: 915 E. Davenport St., Iowa City, Iowa 52245
Name of Applicant Business: Extend the Dream Foundation
Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240
Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu
DUNS Number (If awarded funds, applicant must obtain a DUNS number): 421465808
Type of Business Non-Profit: Incubator of Micro-Enterprises Owned and Operated by Persons with
Disabilities.
Date Business: Established 1974 (original coffee shop founded), current program (2001)
Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank
and Trust (e.g. Sackter House, Documentary, Escrow) and Hills Bank (Uptown Bill's Ice Cream and
Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Hatter Room, Vintage Shop/Mick's Workshop,
The Framery, Ramp, Inc, and the Workshop Account.
NOTE:
The City 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 by the City prior to discovery of the incorrect, false or
misleading representation, the City may initiate legal action to recover City funds.
Revised 11/15/06
1
Section 1: Description of Business and Proposed Project
1.1. Describe the proposed "project" (for example, company relocation, building expansion,
remodeling, new product line, number of new jobs, amount of investment in machinery
and equipment) and the expected benefits it will receive from the financial assistance
requested:
The project involves the retention of jobs for persons with disabilities associated with four
micro-enterprises co-located in the small Mall at 401 Gilbert S1. The "jobs" include four
handicapped persons as (4) owners of small businesses and (11 ) persons who work
with these owners (along with some able volunteers) in operating their shops and
programs. The four micro-enterprises include: Uptown Bill's Ice Cream and Coffee Bar,
Bills Bookmark, the Mad Hatter Room and Mr. Ed's Super Graphics.
The request is for some partial continuation of the CDBG subsidy for rent and utilities at
their 401 location to help these owners meet the rising costs of rent and utilities. In
addition to protecting their own jobs, this downtown location is crucial to accessibility of
both employment and social support by a large number of disabled and elderly persons
who live in the downtown area and the Ralston Creek area where the small Mall is
located.
For the first three years (2001-2004) the Extend the Dream Foundation received full
subsidy for the rent and utilities at 401 S. Gilbert; from 2004-2007 EDF received 50% of
the rental costs, while bearing the other 50% rent and all of the utilities. EDF has
attempted to pay as much of the operating costs as it can from the micro enterprise
earning profits. In our projected 2007-2010 budget, we believe we will experience a
shortfall of $10.000 per year in meeting our rental costs. It is this amount that we are
requesting from the Economic Development funds to meet the deficit.
In anticipation of the end of the previous CDBG subsidy, we sought grant support from
Johnson County and community support from two student groups River Run and the 1-
Envision entrepreneurial group. The County has committed $10,000 for 2006-7 and the
student groups believe they will raise enough to cover the rising utility costs ($10,000/yr).
These sources, along with the additional 10,000 requested from the Economic
Development fund, would assure our ability to remain in our present location.
1.2. Provide a brief history of your company:
The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee
Shop on the U of I campus in 1974. Its current community based history began in 2001
with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of
micro-enterprises owned and operated by persons with disabilities. In its early years Bill's
Coffee Shop was operated by the International Bill Foundation until its 1999 merger with
the Extend the Dream Foundation.
1.3. Describe the organizational structure of the business:
EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of
directors most of whom are notable local business, academic and community leaders..
EDF is administered by a retired experienced administrator volunteer and network of
approximately fifty community volunteers.
Revised 11/15/06
2
The financial management is handled by Executive Director with paid assistance through
a service contract With Marlene Perrin at Taxes Plus. The Board meets quarterly and
the Executive Committee meets monthly. Other standing committees include: Community-
University Relations, Futures and Planning and an Endowment Committee meet as
needed.
See Organization Chart.
1.4. Management
(Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of
ownership must be shown) - non-profit
Name & PositionlTitle Complete Address %
Owned
Thomas Walz, Executive Director* 915 E. Davenport St, Iowa City
Allan Young, Chairperson 3248 Hastings Ave, Iowa City
Dale Hankins, Vice Chair Solon, Iowa
Mercedes Bern-Klug, Secretary 1803 CSt, Iowa City
Charles Skaugstad, Jr, Chair, 602 S. Summit St, Iowa City
Communty Relations Committee
Dr. Phillip Jones, co-chair, 3201 Muscatine, Iowa City
Endowment Committee
David Maeglin, Treasurer, Chair of 20 N. Lowell St., Iowa City
Finance Committee
Jeff Larsen 2201 Dubuque Rd., Iowa City
Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City
Carol Fisher 1208 Guilford Crt, Iowa City
Marilyn Austen Williamsburg, Iowa
Barry Morrow Santa Barbara, Calif.
Josh Gersten 79 Primrose Crt, Iowa City
Rev. Eugene Mathews 3113 Court St., Iowa City
Attach a brief description similar to a resume of the education, technical and business
background for all the people listed under Management.
EDF Management Resumes:
Revised 11/16/06
3
Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center,
Mpls. 1959-61, Director Living Learning Center, U of Minn, 1964-68, Director of Community
Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71),
Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973-
78), Director of the U of I Gerontology Center (1977-81), Director of the Des Moines Graduate
Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001.
Dale Hankens, former Director of Training for Accenture (formerly Arthur Anderson)
International Division, 20 years.
David Maeglin, President of Muscatine Storage (1994-2004), currently an international
investor.
Jeff Larsen, former owner of several Iowa City businesses, investor.
Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years.
1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or
Johnson County facility or replace operations or jobs currently being provided by
another? No
1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or
company(s) affected.
No
Revised 11f15f06
4
Section 2: Financial Contributions to the Proposed Project
2.1. Use of Proceeds
USE OF Proceeds ~
Loan Requested I
(Enter gross dollar I
amount rounded to I
I
the nearest I
i
Activity hundreds)
Land acquisition i
I
New Construction/Expansion Repair i
I
I
Acquisition and/or Repair of Machinery i$ I
and Equipment I I
i I
1$ I
Inventory Purchase I
Working Capital (including accounts i$ I
payable) I i
i i
Acquisition of Existing Business 1$ I
All Other - subsidy for rent 2007-8 i $ $10,000 I
I
I
Total Loan Requested (All Sources): $ 10,000 I
2.2. Terms of Proposed Financing (Sources)
Proposed* Amount Monthly Pay Type(1) Rate Term
Financing
Financial
Financial
Institution
Other:
Iowa City $10,000
CDBG
Economic
Dev. Fund
Total $10,000
* Other income sources to meet rent and utility obligations for 7/1/07-6/31/08 will come from
EOF micro-enterprise earnings ($20,000), Johnson County ($10,000), River Run ($7,000)
and I-Envision ($3,000). Monthly rent is $3350/mo and utilities average about $650fmo.
2.3. Explain why assistance is needed from the City, and why it cannot be obtained
elsewhere. If the applicant did not apply for a loan through a private financial institution,
please explain why. If denied assistance through a financial institution, please attach
the letter of denial.
Revised 11/15/06
5
Successful efforts have been made to explore other areas of subsidy, but a shortfall of
approximately $10,000 for 2007-2008 remains. Given the CDBG support to date and
our ability to take over a large part of the past subsidy through earnings over the past
three years, we felt the City might be willing to continue its support again at a reduced
level. EDF would continue to explore the avenue of county and community funding to
take over this operating cost in the future.
Revised 11f15f06
6
2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to
this project.
EDF from micro-enterprise earnings will contribute a minimum of $20,000 and an
additional $10,000 from its community (student) donors.
2.5. Identify all agencies or institutions involved in the project (financial, technical
assistance, etc.) and what their involvement is:
2.6.
Extend the Dream Foundation - $20,000
Johnson County government - $10,000
River Run (beneficiary of race) - $7,000
I-Envision student organization (golf tournament) - $3,000
What type of security will the assisted business provide the City? If no security or less
than the dollar amount requested is offered, an explanation must be provided.
n
LI
Corporate Guaranty
UCC Financing Statement
Irrevocable Letter of Credit
Personal Guarantee
Surety Bonds
Mortgage on Real Estate
Escrow Account
Other: this has to do with a building lease payment ($3,350/month)
[]
[!
Before execution of a CDBG agreement, if the collateral consists of machinery and equipment,
inventory, or other, the applicant must provide an itemized list that contains serial and
identification numbers for all articles that had an original value of greater than $5,000. Include
a legal description of real estate offered as collateral.
We would have about $10,000 of inventory among the small Mall micro-enterprises, but
nothing of value greater than $5,000.
2.7 If the City did not provide financial assistance, could the project proceed?
It would be difficult, we would need to borrow from our modest endowment funding that has
been set aside to eventually hire a full time director to replace our current "volunteer" director.
Walz, while in good health, is 74 years old.
Section 3: Jobs to Be Created/Retained
Special Note: The Community Development Block Grant (CDBG) program requires that
at least 51% of the jobs created or retained must be held by or made available to low-
moderate income persons. The business acknowledges that if it fails to create and/or
retain the jobs identified below by the end of the project period and maintain them for a
period of time (usually 12 months from the date of the award); it may be required to
reimburse City funds for the employment shortfall.
Revised 11/15/06
7
3.1 If an existing business, how many employees are currently employed at your Iowa City
location? Please attach a copy of the company's quarterly Iowa "Employers
Contribution and Payroll Report" for the most recent quarter.
Listed are only those low-income persons with disabilities:
Uptown Bill's Ice Cream and Coffee Bar - (1) owner, (2 assistants), (4) volunteers.
Bill's Bookmark (2 co-owners), (3) assistants.
Mad Hatter Room (1) owner, (1) coordinator of music outreach
Mr. Ed's Computer Graphics (1) owner
3.2 Complete the following chart identifying the number of jobs to be created and/or
retained based on this specific project.
Type of Job and Hourly Rate for Created and/or Retained Positions in First 12
Months of Project Award (please see attached Job Category Definitions)
Hourly
# of Jobs # of Jobs No. Hours Rate of Pa Fringe
Created Retained Type of Job Per Week y Benefits*
5 Owner/managers 100 I Profit share
Professional
Technicians
Sales
Office & Clerical 50 Stipend
Craft Wokers (Skilled)
Operatives (semi-skilled)
1 Laborers (unskilled) 20 houtslwk $50/wk
Service Workers
*If fringe benefits are provided, please attach a description of aU employee benefits
provided by and paid for (in full or in part) by the business.
3.3 What is the estimated annual payroll for the new employees resulting from this project?
N/A
3.4 If an existing business, will any of the current employees lose their jobs if the project
does not proceed? If yes, how many? Explain why: No
Section 4: Economic & Environmental Impact
4.1. What other Johnson County companies could be considered to be your competitors?
Revised 11115106
8
We are the only business in the downtown area that can cope with persons with mild to
severe disability and in which adult members of this constituency can feel comfortable
and accepted. In addition,we are the only alcohol and smoke free environment that
provides an adult family atmosphere in the southeast section of downtown. The
competitors for the student residents in the area are the bars, liquor stores and upscale
coffee shops. The majorit of our existing student costumers are book buyers, musicians
and volunteers.
4.2. Please describe the energy and resource efficiency, waste reduction, waste exchange,
and recycling programs at your Iowa City operation.
We recycle all hazardous materials through the county facility at the landfill. One of our
volunteers is a waste management specialist (engineer) and is planning to do a study of
our facility at the end of April.
Section 5: Community Involvement, Compliance with Law
5.1 In addition to your normal business activities, does your business contribute or have
plans to contribute to the community through volunteer work, financial contributions, or
through other means? Please describe.
EDF and its micro-enterprises recruit, train and utilize a large number of volunteers
annually (more than 100 different persons) per year, most of whom are assigned to one
another small business in the small Mall. The small Mall annually sponsors the Ralston
Creek Labor Day Fair and Flea Market which is entering Its sixth year with annual
attendance of over (1000) persons. The businesses of the small Mall provide an
important supportive resource to low-income elderly and disabled persons in the
community 365 days a year. The Mad Hatter Room provides downtown space for 8-11
AA meetings per week, in addition to offering many supportive services to persons in
recovery, including temp employment.
5.2 Has the business been cited or found to violate any federal or state statute or regulation
within the last five years (including, but not limited to environmental regulations, payroll
taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the
National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain
the circumstances of the violation(s).
No
5.3 Has the company or any officer of your company ever been involved in bankruptcy or
insolvency proceedings? If so, please provide the details.
No
5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name
of the lawsuit, docket number, and city and state where it is pending.
Revised 11/15/06
9
No
Section 6: Summary of Required Attachments
Check off each attachment submitted. If not submitted, explain why.
[ x] Business plan (if start-up business)
[ x] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro-
forma balance sheet)
[ x] Profit and loss statements (3 year historical if an existing business, 3 year projection for
start-ups)
[ x] 12 month cash flow statement (if the business does not expect to turn profitable within
the first 12 months, provide a cash flow statement extended to the year the business
expects to turn profitable)
[] Description of fringe benefits provided to employees, if applicable N/A
[ x] Brief description of the education, technical and business background for all the persons
listed under Management (Question #1.4)
Micro-enterprise owners in the small Mall:
Tim C, 36, owner of Uptown Bills Ice Cream and Coffee Bar, some college, worked in
restaurants as a cook or cooks helper prior to illness, on disability, has both MI and
substance abuse background.
Dave M, 57, college grad, local poet, has variable work history, mainly white collar, is a
published poet and writer, has MI background.
Allisa W, 18, high school grad (07), being reunited with mother in recovery, has some MI
problems as well.
Del A, 52, some college, veteran, PTSD and severe diabetes, has varied background,
Has a disability pension.
Ed G, 57, AA degree accounting, has cerebal palsy and is deaf, disability pension.
Revised 11115/06
10
[x] Please provide the social security numbers for all the persons listed under Management
(Question #1.4)
DaveM 1.,DeIA- 1::::1 .TimC.....,EdG
[] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution
and Payroll Report" for the most recent quarter.
N/A
[] Construction loans only: Cost estimates for construction and a statement of the source
of any additional funds
[] Include a list of any machinery or equipment or other non-real estate assets to be
purchased with the financial assistance and the cost of each item as quoted by the
seller. Include the seller's name and address.
None
Upon review of a submitted application, the City reserves the right to request additional
information in order to assist the City with its evaluation of an application.
Release of Information and Certification
NOTE: Please read carefully before signing
I hereby give permission to the City of Iowa City (the City) to research the company's history,
make credit checks, contact the company's financial institution, and perform other related
activities necessary for reasonable evaluation of this proposal. I understand that all information
submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa
Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all
representations, warranties or statements made or furnished to the City in connection with this
application are true and correct in all material respects. 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 aS~Afe from a state agency or political subdivision.
"
<~~ "~
,._-~
eneral partner, sign below.
i
/
/
~_.
"c:L-(/
Date:
"-/./ S u Jv'7
If applicant is a Corporation,'-- Ign below:
vi ~k~~:Jih/
rate Name and Seal
Date
By:
tL~~ . e~
.. .~ of President
Attested by:
Signature of Corporate Secretary
Revised 11115/06
11
^--- ....,...,
INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION -
PROPERTY ACQUISITION
Business Proposed:
Extend the Dream Foundation (EDF) requests funding to purchase a property
they currently lease at 2218-20 F Street to house two micro-enterprises.
Currently the property houses Mick's Workshop, an antique furniture refinishing
and wood working shop that is run by a person with disabilities. Applicant also
proposes to initiate a new business called RAMP UP that provides design and
construction of minor renovations in homes and apartments for low-income
disabled persons and for the elderly.
Applicant currently pays $1,200/month to lease the proposed property. With a
forgivable loan and a partial private loan, applicant estimates their mortgage
could be reduced to $350/month.
Budget & Private Financial Contribution
$99,000 Iowa City CDBG forgivable loan (no repayment unless sold or in
default)
$50,000 Private lender loan (30 year loan - 7.5% interest rate)
$6,000 Applicant contribution to upgrade the property
Comprehensive Plan/CITY STEPS Plan
The project does not require public infrastructure and is located in a CC-2 zone
(community commercial). Applicant proposes to upgrade an existing property
that needs rehabilitation. CITY STEPS notes a high priority for employment
training and education skills and micro-enterprise assistance. The focus at EDF
is on improving the lives of persons with disabilities through employment training
and ownership opportunities.
Quality of Jobs
The project is an eligible activity under economic development as it provides
financial support for the establishment, stabilization and expansion of one
existing micro-enterprise and will create one additional micro-enterprise. (A
micro-enterprise is a commercial enterprise that has five or fewer employees,
one or more of whom owns the enterprise.)
Miek's Workshop has one owner and RAMP UP will have a volunteer coordinator
with independent contractors. None of the persons identified in the application
are employees, each is considered 1099 subcontractors.
Economic Impact
The proposed CDBG funds will assist a non-profit agency stabilize and expand a
property that will incubate micro-enterprises. All the businesses are operated by
persons with disabilities.
J{1.7
EnvironmentallCommunity Involvement
EDF provides opportunities for businesses and also works to enhance the
incomes of persons with disabilities. In addition to operating six potential micro-
enterprises at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates
an e-commerce center that trains persons with disabilities to buy and sell
products on the internet to expand into home based businesses.
Extend the Dream has been working with several community partners through
referrals for micro-enterprise or e-commerce training and hosting meeting spaces
for organizations such as AA meetings, Johnson County Coalition on Disability
and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited,
MECCA, CMHC, Elder Services and STAR homeless outreach.
Items to Address:
1. EDF is run entirely through volunteers. The organization has not had
consistent financial management during its years in operation. EDF must
have a financial system that provides control and accountability over funds
and assets, identifies the source and application of federal funds, provides
source documentation, has basic accounting records, and ensures an
adequate separation of financial duties. EDF has worked to resolve some
of these issues; however the organization must incorporate a financial
management system operated on a long term basis that will meet federal
minimal standards.
2. Zoning Issues: The home on the property is a non-conforming, single
family property in a commercial zone. The home has a rental permit with
an active tenant; last housing inspection was 4/11/2007. The application
did not reference the property as a rental unit. The property can be
changed to a commercial use; however it may involve substantial
upgrades to bring it up to commercial standards. The work required to
bring the property to code would be subject to Davis Bacon (prevailing)
wages. If conversion of the property to a commercial use occurs and the
tenant is displaced, then Uniform Relocation Assistance requirements
would apply. If the applicant maintains the rental unit and operates the
businesses in the workshop, then lead based paint regulations apply (the
home was built in 1930).
3. EDF provides the financial management and accounting for Mick's
Workshop. Uptown Bill's profit and loss statement, calendar year 2006,
shows an annual net income of $33,231.40 in 2006. Does this contain the
lease expense of $1,200 or tenant rent received?
4. Since this is an organization completely run by volunteers, please discuss
a plan for succession if the director leaves the organization for any reason.
5. The applicant is a non-profit organization so technical assistance at the
Small Business Development Center may be difficult to obtain. The
organization may have to rely on donated financial management or
through consultant fees.
6. CDBG funds were used to purchase the building at 912 2nd Ave. (2203 F.
Street) in 2005. A few items remain from the building permit issued in
October of 2005 in regards to electric and riser height issues and must be
reinspected.
May 2007
Iowa City CDBG Economic Development Funds
Application for Business Financial
Assistance
Business Requesting Financial Assistance:
Individual: Thomas Walz on behalf of the Extend the Dream Foundation
Home Address: 915 E. Davenport St., Iowa City, Iowa 52245
Name of Applicant Business: Extend the Dream Foundation
Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240
Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu
DUNS Number (If awarded funds, applicant must obtain a DUNS number): 421465808
Type of Business Non-Profit: Incubator of Micro-Enterprises Owned and Operated by Persons with
Disabilities.
Date Business: Established 1974 (original coffee shop founded), current program (2001)
Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank
and Trust (e.g. Sackter House, Documentary, Escrow) and Hills Bank (Uptown Bills Ice Cream and
Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Hatter Room, Vintage Shop/Mick.s Workshop,
The Framery, Ramp, Inc, and the Workshop Account.
NOTE: The City 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 by the City prior to discovery of the incorrect, false or
misleading representation, the City may initiate legal action to recover City funds.
Section 1: Description of Business and Proposed Project
1.1. Describe the proposed "project" (for example, company relocation, building expansion,
remodeling, new product line, number of new jobs, amount of investment in machinery
and equipment) and the expected benefits it will receive from the financial assistance
requested:
The project involves the purchase of a property (two buildings) at 2218-2220 F. St to
house two micro-enterprises: Mick's Workshop and RAMP UP. The first of these
specializes in furniture refinishing and antique restoration for the general public and the
second specializes in the design and construction of minor renovations in homes and
apartments for the low income disabled and elderly to help them improve the physical
accessibility of their domiciles. In addition will provide some "chores" services may be
offered to low income elderly persons and persons with disabilities..
The proposed purchase is attractively priced, the landlord has upgraded the building with
new siding, a new heating plant and cooling plant. The building is located across the
street from one of our other buildings (the Ecommerce Center at 2203 F St) and has a
functional tie to the buildings to be purchased ( refinishing antiques for our vintage shop,
frame making for the Framery and the shared use of equipment, office and storage space
for the new RAMP UP micro enterprise). Another benefit is the enhanced value that can
be expected from building through sweat equity upgrades (similar to what we did with the
F street building across the street).
1.2. Provide a brief history of your company:
The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee
Shop on the U of I campus in 1974. Its current community based history began in 2001
with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of
micro-enterprises owned and operated by persons with disabilities. In its early years Bill's
Coffee Shop was operated by the International Bill Foundation until its 1999 merger with
the Extend the Dream Foundation.
1.3. Describe the organizational structure of the business:
EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of
directors most of whom are notable local business, academic and community leaders..
EDF is administered by a retired experienced administrator volunteer and network of
approximately fifty community volunteers.
The financial management is handled by Executive Director with paid assistance through
a service contract With Marlene Perrin at Taxes Plus. The Board meets quarterly and
the Executive Committee meets monthly. Other standing committees include: Community-
University Relations, Futures and Planning and an Endowment Committee meet as
needed.
See Organization Chart.
1.4. Management
Revised 11/15/06
2
(Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of
ownership must be shown) - non-profit
Name & PositionlTitle Complete Address %
Owned
Thomas Walz, Executive Director* 915 E. Davenport St, Iowa City
Allan Young, Chairperson 3248 Hastings Ave, Iowa City
Dale Hankins, Vice Chair Solon, Iowa
Mercedes Bern-Klug, Secretary 1803 CSt, Iowa City
Charles Skaugstad, Jr, Chair, 602 S. Summit St, Iowa City
Communty Relations Committee
Dr. Phillip Jones, co-chair, 3201 Muscatine, Iowa City
Endowment Committee
David Maeglin, Treasurer, Chair of 20 N. Lowell St., Iowa City
Finance Committee
Jeff Larsen 2201 Dubuque Rd., Iowa City
Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City
Carol Fisher 1208 Guilford Crt, Iowa City
Marilyn Austen Williamsburg, Iowa
Barry Morrow Santa Barbara, Calif.
Josh Gersten 79 Primrose Crt, Iowa City
Rev. Eugene Mathews 3113 Court St., Iowa City
Attach a brief description similar to a resume of the education, technical and business
background for all the people listed under Management.
Management Resume: Walz
Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center,
Mpls. 1959-61, Director Living Learning Center, U of Minn, 1964-68, Director of Community
Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71),
Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973-
78), Director of the U of I Gerontology Center (1977-81), Director of the Des Moines Graduate
Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001.
Dale Hankens, fonner Director of Training for Accenture (fonnerly Arthur Anderson)
International Division, 20 years.
Revised 11/15/06
3
David Maeglin, President of Muscatine Storage (1994-2004), currently an international
investor.
Jeff Larsen, former owner of several Iowa City businesses, investor.
Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years.
1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or
Johnson County facility or replace operations or jobs currently being provided by
another? No
1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or
company(s) affected.
No
Revised 11/15/06
4
Section 2: Financial Contributions to the Proposed Project
2.1. Use of Proceeds
USE OF Proceeds
Loan Requested
(Enter gross dollar
amount rounded to
the nearest
Activity hundreds)
Land acquisition $ part of property
New Construction/Expansion Repair $
Acquisition and/or Repair of Machinery $
and Equipment
Inventory Purchase $
Working Capital (including accounts $
payable)
Acquisition of Existing Business $
All Other (provide description) - $99,000
property acquisition (two buildings)
Total Loan Requested (All Sources): $149,000
2.2. Terms of Proposed Financing (Sources)
Monthly Type(1)
Proposed Financing Amount Payment Rate Term
Financial $
Financial Institution @direct loan $ 50,000
Other: $
Iowa City CDBG Economic Dev. Fund $ 99,000
TOTAL: $149,000
(1lForgiveable loan requested"..
2.3. Explain why assistance is needed from the City, and why it cannot be obtained
elsewhere. If the applicant did not apply for a loan through a private financial institution,
please explain why. If denied assistance through a financial institution, please attach
the letter of denial.
Financial assistance has been explored with Iowa State Bank and Trust and Hills
Bank, both were supportive of the project and agreed to a loan of $50,000 (pending
outcome of our other applications). A letter from Iowa State bank confirms their loan
Revised 11/15/06
5
willingness. We need to limit the direct bank loan to reduce costs of housing the two
aforementioned micro-enterprises. A loan of $50.000 at prime would leave us with
about $350 (monthly cash flow) mortgage payment over 30 years. Currently we are
paying monthly lease payments of $1200 for this property.
Revised 11/15/06
6
2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to
this project.
It is our intention to use our recent donations of $6,000 to immediately upgrade the
property. This property (along with the building we recently purchased) had been
neglected for many years to the point of impacting community appearances.
2.5. Identify all agencies or institutions involved in the project (financial, technical
assistance, etc.) and what their involvement is:
Extend the Dream Foundation - underwrite cost of upgrades
Iowa State Bank and Trust - provide a direct loan of $50,000
Economic DevelopmentlCDBG Council- provide a forgiveable loan of $99,000.
2.6. What type of security will the assisted business provide the City? If no security or less
than the dollar amount requested is offered, an explanation must be provided.
o Corporate Guaranty
o UCC Financing Statement
o Irrevocable Letter of Credit
o Personal Guarantee
o Surety Bonds
X Mortgage on Real Estate
o Escrow Account
o Other:
Before execution of a CDBG agreement, if the collateral consists of machinery and equipment,
inventory, or other, the applicant must provide an itemized list that contains serial and
identification numbers for all articles that had an original value of greater than $5,000. Include
a legal description of real estate offered as collateral.
We also own about 7,000 worth of equipment and materials that could be used as collateral.
2.7 If the City did not provide financial assistance, could the project proceed?
No, unless our Director wins the 2007 Purpose Prize for which he was a "finalist" in 2006.
There are several prize winners to be selected whose organizations would each be given
$100,000. It would be self-defeating even if conventional bank loans were available for the full
amount since the mortgage payments would be no different than the lease payments. With our
partial rent subsidy from the City for our downtown small Mall project completing its sixth and
final year, we woulc:f not be able to handle the current lease levels for both sets of property
from micro enterprise earnings supplemented by our savings for very long.
Section 3: Jobs to Be Created/Retained
Special Note: The Community Development Block Grant (CDBG) program requires that
at least 51% of the jobs created or retained must be held by or made available to low-
moderate income persons. The business acknowledges that if it fails to create and/or
retain the jobs identified below by the end of the project period and maintain them for a
Revised 11/16/06
7
period of time (usually 12 months from the date of the award); it may be required to
reimburse City funds for the employment shortfall.
3.1 If an existing business, how many employees are currently employed at your Iowa City
location? Please attach a copy of the company's quarterly Iowa "Employer's
Contribution and Payroll Report" for the most recent quarter.
Micks Workshop - 2 full handicapped employees, 2-4 independent contract workers.
RAMP UP - estimate one half time coordinator, 2-4 independent contract workers.
None of the above are employees, each are 1099 sub-contractors.
3.2 Complete the following chart identifying the number of jobs to be created and/or
retained based on this specific project.
Type of Job and Hourly Rate for Created andlor Retained Positions in First 12
Months of Project Award (please see attached Job Category Definitions)
Hourly
# of Jobs # of Jobs No. Hours Rate of Pa Fringe
Created Retained Type of Job Per Week y Benefits.
1 1 Officials & Managers #1 60, #2 20 Open nfa
Professional
Technicians
Sales
Office & Clerical
Craft Wokers (Skilled) 2 nfa
Operatives (semi-skilled)
Laborers (unskilled) 6-8 $10-12hr nfa
Service Workers
*If fringe benefits are provided, please attach a description of all employee benefits
provided by and paid for (in full or in part) by the business.
3.3 What is the estimated annual payroll for the new employees resulting from this project?
Difficult to estimate since one of the projects will be just starting out. Hourly rate will be
approximately $15fhr on a project by project timetable.
The RAMP UP coordinator will be a volunteer.
3.4 If an existing business, will any of the current employees lose their jobs if the project
does not proceed? If yes, how many? Explain why: No
Revised 11/15106
8
Section 4: Economic & Environmental Impact
4.1. What other Johnson County companies could be considered to be your competitors?
Mick's Workshop is one of three furniture refinishing and repair shops listed in the yellow
Pages, though we know of a few others like Knock on Wood that do essentially what
Mick does. Mick's also does a variety of odd jobs for low-income persons with disabilities
(e.g. we moved many elderly residents at the Ecumenical Towers during the construction
of the new elevator and other type of chore services for persons who couldn't afford to
hire at regular rates). The workers at Mick's also keep up our properties on F Street
(mowing, snow removal, etc.)
From our knowledge of local building contractors, the kind of "accessibility remodeling" at
affordable prices that many low income handicapped and elderly are able to pay is hard
to find. Most contractors are not interested in small scale projects of this type. The small
home repair individuals take up some of the need. but there are without the expertise to
assess and design what needs to be done. None of the local contractors have the
knowledge of ADA standards held by Jordan Pettus, the owner (coordinator) of RAMP.
4.2. Please describe the energy and resource efficiency. waste reduction, waste exchange,
and recycling programs at your Iowa City operation.
We recycle all hazardous materials through the county facility at the landfill. One of our
volunteers is a waste management specialist (engineer) and is planning to do a study of
our facility at the end of April.
Part of our intended building upgrade is to increase the energy efficiency of both of the
buildings on the property we want to purchase. The Workshop building has just had a
new energy efficient heating unit installed and siding added (as insulation as well as
cosmetic improvement). Our upgrade will include replacement of windows and frames
In the 2220 F 5t.storage facility.
Both Mick's Workshop and RAMP UP will share the same furniture refinishing and small
home repair equipment as well as an interchange of expertise. Mick has construction
and masonry background and Jordan was construction and sheet metal worker until his
accident.
Section 5: Community Involvement, Compliance with Law
5.1 In addition to your normal business activities, does your business contribute or have
plans to contribute to the community through volunteer work, financial contributions, or
through other means? Please describe.
EDF and its micro-enterprises recruit, train and utilize a large number of volunteers
annually (more than 100 different persons) per year, some of these will be involved in the
Workshop and RAMP micro-enterprises. The new businesses along with the old
sponsor the Ralston Creek Labor Day Fair and Flea Market entering Its sixth year with
annual attendance of over 1000 persons). As noted many of the projects the two micro-
Revised 11/15/06
9
enterprises will undertake will involve assisting persons who could not otherwise pay for
such services.
5.2 Has the business been cited or found to violate any federal or state statute or regulation
within the last five years (including, but not limited to environmental regulations, payroll
taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the
National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain
the circumstances of the violation(s).
No
5.3 Has the company or any officer of your company ever been involved in bankruptcy or
insolvency proceedings? If so, please provide the details.
No
5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name
of the lawsuit, docket number, and city and state where it is pending.
No
Section 6: Summary of Required Attachments
Check off each attachment submitted. If not submitted, explain why.
[ x] Business plan (if start-up business)
[ x] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro-
forma balance sheet)
[ x] Profit and loss statements (3 year historical if an existing business, 3 year projection for
start-ups)
[ x] 12 month cash flow statement (if the business does not expect to turn profitable within
the first 12 months, provide a cash flow statement extended to the year the business
expects to turn profitable)
[] Description of fringe benefits provided to employees, if applicable N/A
[ x] Brief description of the education, technical and business background for all the persons
listed under Management (Question #1.4)
Jordan Pettus, Coordinator, RAMP - AA degree in architectural drafting, 20 years
experience in the trades as a sheet metal worker and construction worker. Has a
consulting firm thru which he provides ADA consults for local developers on projects.
Mick Vevera is the owner of Mick's Workshop (which operates financially as part
Of the Vintage Shop. Mick has a high school degree, was in the masonry business with
his father Bob Vevera for many years, was disabled in a fall, but has for the past
six years worked as a subsidized volunteer for EDF until 2004 when we helped him
Revised 11115/06
10
open his own shop.
Revised 11/16/06
11
[x] Please provide the social security numbers for all the persons listed under Management
(Question #1.4)
Mick Vevera -
[] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution
and Payroll Report" for the most recent quarter.
N/A
[] Construction loans only: Cost estimates for construction and a statement of the source
of any additional funds
[] Include a list of any machinery or equipment or other non-real estate assets to be
purchased with the financial assistance and the cost of each item as quoted by the
seller. Include the seller's name and address.
None
Upon review of a submitted application, the City resetveS the right to request additional
information in order to assist the City with its evaluation of an application.
Release of Infonnation and Certification
NOTE: Please read carefully before signing
I hereby give permission to the City of Iowa City (the City) to research the company's history,
make credit checks, contact the company's financial institution, and perform other related
activities necessary for reasonable evaluation of this proposal. I understand that all information
submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa
Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all
representations, warranties or statements made or furnished to the City in connection with this
application are true and correct in all material respects. 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 political subdivision.
If applicant is a proprietor or general partner, sign below.
By:
Date:
If applicant is a Corporation, sign below:
~e~1~ 44D7
Co orateNam and Seal Dare
By:
Attested by:
Signature of Corporate Secretary
Revised 11/15106
12
10:00 AM Uptown Bill's
o.tI26J07 Balance Sheet
Cash Basis As of April 26, 2007
Apr 26, 07
ASSETS
Current Assets
Checking/Savings
Bill's BookMart 2,847.24
Bill's Coffee Shop 5,912.53
BlII's Documentory 4,636.68
Computer Graphics 365.94
Escrow 65,681.14
Extend The Dream Foundation 7,411.21
Framery 507.44
Mad Hatter Room -795.49
RAMP 39.75
Sackter House -182.50
Vintage Shoppe 7,983.78
Workshop 547.11
Total Checking/Savings 94,954.83
Total Current Assets 94,954.83
TOTAL ASSETS 94,964,83
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Credit Cards
American Express 627.13
Total Credit Cards 627.13
Total Current Liabilities 627.13
Total Liabilities 627.13
Equity
Opening Bal Equity 63,905.15
Retained Earnings 26,605.59
Net Income 3,816.96
Total Equity 94,327.70
TOTAL LIABILITIES & EQUITY 94,954.83
Page 1
-, ",,,*"
11:26 AM Uptown 8i11's
04120/97 Profit & Loss
Cash Basis January through December 2006
Jan 06 Feb 06 Mar 06 Apr06 May 06 Jun 06 Jul06
Inc~~
OR 718.91 500.00 544.56 609.93 600.00 608.24 624.95
I 26,n5.05 16,nO.72 17,545.70 16,686.05 26,104.04 14,668.96 24,072.76
Total Income 27,493.96 17,270.72 18,090.26 17,296.98 26,7()4.()4 15,277.20 24,697.71
Expense
Account Expense -74.00 85.11 0.00 0.00 0.00 0.00 0.00
AD 43.74 0.00 146.70 189.25 0.00 15.00 17.75
Auto 0.00 319.48 220.11 0.00 0.00 0.00 0.00
C 616.95 657.14 838.00 520.13 765.93 506.41 896.99
car purchase 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CC 350.00 500.00 350.00 600.00 600.00 600.00 600.00
FC 8.13 3.49 8.08 8.97 9.83 9.71 10.86
Garbage 25.00 37.71 232.00 0.00 0.00 0.00 0.00
IN 2,902.31 3,991.97 3,337.00 327.55 327.55 0.00 608.55
Insurance 0.00 0.00 327.55 0.00 0.00 0.00 0.00
interest -0.21 -0.14 0.00 -0.22 0.00 0.00 0.00
IR 1,n8.31 1,569.32 1,467.73 1,958.96 3,280.37 2,639.39 2,705.00
L 0.00 0.00 0.00 320.00 320.00 320.00 320.00
M 1 ,525.82 583.89 2,382.57 5,215.19 6,575.30 5,703.83 6,789.23
misc 187.20 61.50 403.41 0.00 0.00 0.00 0.00
OS 0.00 0.00 0.00 72.50 31.13 168.33 64.99
Parking 15.00 0.00 0.00 0.00 0.00 0.00 0.00
PAY 1,000.00 1,115.00 2,424.69 2,541.53 3,676.87 3,357.03 2,576.00
Payroll Expenses 1,997.50 2,135.75 1,856.76 0.00 0.00 0.00 0.00
POST 119.90 316.35 348.85 399.92 229.75 222.53 284.68
R 4,292.00 8,492.00 6,567.00 2,492.00 8,217.00 4,945.00 2,392.00
S.H. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
S.H. Mort 250.00 500.00 250.00 0.00 0.00 0.00 0.00
S.H. OPER 200.00 425.00 200.00 0.00 0.00 0.00 0.00
Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
U 925.85 949.79 831.07 140.53 1 ,351.94 1,081.81 1,647.87
UI work study 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UI work study 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expense 16,163.50 21,743.36 22,191.52 14,786.31 25,385.67 19,569.04 18,913.92
Net Income 11,330.46 -4,472.64- -4,101.26 2,509.67 1,318.37 -4,291.84 5,783.79
Page 1
'''"- .....
11:26 AM Uptown Bill's
04120/07 Profit & Loss
Cash Basis January through December 2006
Aug 06 Sep06 Oct 06 Nov06 Dee 06 TOTAL
Income
CR 738.11 795.53 800.00 0.00 0.00 6,540.23
I 21,830.88 30,111.72 32,035.62 25,660.41 19,957.04 272,218.95
Total Income 22,568.99 30,907.25 32,835.62 25,660.41 19,957.04 278,759.18
Expense
Account Expense 0.00 0.00 143.91 0.00 32.50 187.52
AD 197.27 167.53 415.19 267.42 190.00 1,649.85
Auto 0.00 0.00 981.44 0.00 0.00 1,521.03
C 793.31 700.54 1,535.01 1,149.30 1,055.12 10,034.83
car purchase 0.00 0.00 0.00 600.00 0.00 600.00
CC 700.00 775.00 800.00 450.00 468.65 6,793.65
FC 11.04 8.71 11.63 0.00 0.00 90 .45
Garbage 0.00 0.00 59.75 59.75 59.75 473.96
IN 567.89 221.00 1 ,238.01 4,440.00 2,65O.7S 20,612.62
Insurance 0.00 0.00 655.13 327.57 59.46 1,369.71
interest 0.00 0.00 0.00 0.00 0.00 -0.57
IR 2,181.96 1 ,917.24 1,941.45 0.00 0.00 21,439.73
L 320.00 320.00 0.00 0.00 0.00 1,920.00
M 5,022.53 7,682.26 2,068.77 577.68 79.23 44,206.30
misc 0.00 0.00 250.85 748.75 166.45 1,818.16
OS 15.98 133.87 0.00 0.00 0.00 486.80
Parking 0.00 0.00 0.00 0.00 15.00 30.00
PAY 3,309.50 3,418.75 2,532.50 1,198.98 2,288.77 29,439.62
Payroll Expenses 0.00 0.00 1,635.00 1,076.75 6,918.34 15,620.10
POST 283.46 237.81 273.94 124.29 0.00 2,841.48
R 8,292.00 6,667.00 3,881.50 4,867.00 2,467.00 63,571.50
S.H. 0.00 0.00 225.00 425.00 495.00 1,145.00
S.H. Mort 0.00 0.00 250.00 500.00 500.00 2,250.00
S.H. OPER 0.00 0.00 0.00 0.00 0.00 825.00
Tax 0.00 0.00 0.00 600.00 200.00 800.00
U 1,246.00 1,501.38 1,639.21 1,515.63 2,444.96 15,276.04
UI work study 0.00 0.00 143.75 0.00 0.00 143.75
UI work study 0.00 0.00 381.25 0.00 0.00 381.25
Total Expense 22,940.94 23,751.09 21,063.29 18,928.12 20,091.02 245,527.78
Net Income -371.95 7,156.16 11,772.33 6,732.29 -133.98 33,231.40
Page 2
, .
PROFIT AND LOSSES 2006-2007 EXTEND THE DREAM FOUNDATION
MICK'S WORKSHOPNINT AGE SHOPPE
Month Expenses Revenues
06 Aug $5,229.51 $5,307.85
Sept $4,086.81 $4,392.63
Oet $5,166.66 $5,017.63
Nov $5,084.54 $6,219.40
Dee $3,501.93 $5,156.43
07 Ian $8,267.81 $4,440.97
Feb $4,413.81 $3,425.46
Mar $3,860.45 $4,785.55
Total $39,611.52 $38,745.55
Revenues minus expenses+ -$865.60
RAMP (new business start up scheduled for March 1st)
Total of$140 expenses for administrative start up; no revenue.
~
BUSINESS PLAN 2007
RAMP UP
Description: the following business plan addresses a start up micro-enterprise called
RAMP UP. RAMP was accepted as a non-profit start up enterprise on January 1 st, 2007
under the Extend the Dream Foundation. It is officed at 2203 F S1. in the EDF
Ecommerce Building and works out the properties across the street 2218&2220 F S1.
The mission of RAMP is provide design, consultation and construction services for
improving the accessibility of the domiciles oflow-income handicapped and elderly or
buildings frequently used by them.
Staffing Plan: RAMP will be coordinated ("owned") by Jordan Pettus, a person with
disability and a background in architectural drafting and design. He will be assisted by
Mick Vevera (owner ofMick's Workshop) and other sub-contract employees (1099's) on
a project by project basis. To the extent possible all persons associated with RAMP will
be low-income, handicapped or elderly retired.
Management Plan: RAMP will have its own checking account at Hills Bank and will be
the sole determiner of the projects it accepts. The accounting and fiscal management of
the enterprise will be handled by the parent EDF organization. The insurance liabilities of
projects will be subsumed under the EDF comprehensive plan that covers all entities
managed byEDF.
RAMP will work with an advisory committee of representatives from EDF board,
Elderly Services board, the Johnson County Coaltion on Disability and a like
representative from a local consumer aging group. RAMP has successfully applied for a
Federal contractors license and is currently applying for a state license (both are needed
to do business with Federal agencies, such as the VA ofIowa City).
Projected Work Flow: in its first year, RAMP anticipates responding to approximately
one request a month with about 30% requiring some construction follow through (two
referrals in late 2006 from the VA ofIowa City are pending). The other 70% will involve
some household rearrangements, minor changes in lighting or design and estimates of
more major modifications (e.g. addition ofa ramp). These projects will be invoiced at an
average of $15-20 per hour with an understanding that pro bono services may often be
expected.
Design services will be carried out exclusively by RAMP's owner, Jordan Pettus. Minor
construction services will be handled through a sub contract with Mick's Workshop,
major construction services will be handled through small scale local contractors working
under the general contract supervision of RAMP.
Marketing: RAMP intends to grow slowly during its first year. The principal marketing
will be through referrals from EDF and Elderly Services. A pamphlet describing the
program will be produced and distributed through a variety of local sources (e.g. senior
.
center, Independent Living, etc.) Later in the year a feature article will be arranged with
the local press.
Budget Summary: RAMP will operate out of its own checkbook. Start up capital of $150
(from EDF) was used to open the account. A grant application to the Mary 0 Cauldron
fund requesting $7000 start up capital was submitted. In the interim, EDF will use its
internal resources to support small projects. RAMP will have no rental obligations for
either its office or work space, until it is fiscally able to contribute. The owner will work
without pay as a volunteer until financial developments allow a profit share.
Expenses and Revenues: it is estimated that after a ninety day start up, by April 1 st,
RAMP can expect a cash/expense flow of $10,000 annually.
Annual expense breakdown: *
Rent and equipment... ... ... ......... ... ... ... ...... ......... ........... .00
Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00
Office supports (consumables, telephone)............ ............... ..00
Project supplies......................................................... .$4,000
Project sub contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $6,000
Total $10,000
. Most of the actual cash flow and revenue will come via a major contract to
build ramp(s) for veterans (one already approved at $5000).
Annual Revenue breakdown:
Service fees from projects...... ... ... ... ... ... ... ... ... ...... ... ... $.6,000
Grants and loans - EDF .......................................... $ 1,000
Mary 0 Cauldron... ...... ... ... ... ...... ... ...... ... ... ............ $ 3,000
Total $ 10,000
BUISNESS PLAN 2006-2007
MICK'S WORKSHOP
STAFFING PLAN
1. Ownership will remain as before, Mick Vevera is the owner. His staff includes
one regular part-time worker (JW) and several on-call independent contract
workers (LW, BB, JC, JV).
2. EDF Executive Director will provide oversight and will be responsible for
inventory purchases and approval of chore service requests.
PROJECTED WORK FLOW
1. Eighty percent of activity will involve refinishing and repairing furniture,
mainly antiques.
2. Ten percent of activity will involve chore services ("small home repairs)"..
3. Ten percent of activity will involve "buying", assessing, securing voluntary
contributions of in-kind donations.
4. The above activities combined will require 100 hours of paid or voluntary
work weekly. --
MARKETING
1. Regular ads will be placed in local newspapers associated with monthly
summer yard sales and special events (the Ralston Creek Fair and Flea
Market).
2. Signage will be redesigned and placed on lawns of 2220 & 2203 F Street
noting the workshop hours and activities.
3. A link to Mick's Workshop will be designed for the new Uptown Bills
website (uptownbills.org)
BUDGET SUMMARY
1. Mick's Workshop is fiscally a part of The Vintage Shoppe (operate out of
one checkbook). It is anticipated that the combined micro enterprises will
maintain an average monthly revenue flow of$5000/month for 2006-2007.
Total Income............ $60,000
2. Expenses for this calendar year include:
a) consumable supplies.................................... $1800/mo or 21 ,600/yr
b) inventory replacement................................. $600/mo or $7,200/yr
c) transport (gas, insurance, repair). . . . . . . . . . . . . . . . . . . . . $200/mo or $2400/yr
d) stipends and sub contracts............... ................. $10,000/yr if
e) lease payments and utilities (based on current lease) $18,000/yr 1
Total Expense............ $59,20
PROJECTED DEVELOPMENTS
1. Prepare CBDG public facility grant ( request $99,000) to buy the property
(two buildings at 2218 and 2220 F St.)
2. Pursue bank loan with local bank to complete financing ($50,000) ofthe
purchase price of$149,000. An earnest money contract to buy the building
will be signed shortly (Feb., 2007).
3. If the property is purchased, $6000 donation in the escrow account will be
used to cover costs of the energy upgrade of both buildings on the property.
Some cosmetic improvements (e.g. would be carried out as well).
~
ca
E
E
::J
en
-
cu
.-
u
c:
cu
c:
.-
LL
-
CUU)
:::::So
c: .
ell)
<(8
fnN
....
U
Q) 0
M
. ..... M
0 en
'- en
D.. N
tA-
fn .
-
-
-
.-
m ~
co
e co
'V
~ 'V~
en
0 I.t)
tA-
.... III
Q.
::)
en !
ow
en 0:
o .-
.- E 2:
.r:::. 0 Q) Q)
0. 0 0. CJ)
~ a:: 0. Q)
00. c:> '- 0 0
'- Q) .r:::. '-
.r:::.t::Q):::CJ)Q)
CJ) co .... co Q) E
iC Q) E 5..J: C) E
u..~-aE"O~o
o 0 0 0 co .~ ()
W()(l)O~>W
'iii . 0 LJ . II .
l{)
o
o
N
-
..-
:>.
::;
....,
c
o
\1)
-0
ro
E
\1)
'-
\1)
3:
(f)
c
o
:p
u
ro
(f)
c
ro
.b
en
~
o
......
I.t)
o
o
M
tA-
.
.J::.
o
Q)
o
o
o
I"-
~
N
tF}
o
.-
CL
;:,
0>
C
:0
-0
ro
o
o
o
Q)
~
tF}
...
.E
c
ro
.Q
ro
-0
c
ro
o
o
o
co
Q)
..-
tF}
...
.e
.-
c
e?
0>
<<I
(f)
~
~
Q)
.r::.
l-
ii
en en
~ en
'V I.t) ~ <0
en ...... ~
0 co co ~
I.t) I.t) 'V ('t)
tA- ...... ~ ('t)
. tA-
~ ('t) .
tA- N
C] tA-
D
"
C
:J
...,
>.
co
~
'-
U) a. L.O
0 <( 0
0
. N
-
It) '- ..-
CO ~
0 :J
~ -,
0 C
0
N Q)
.c "0
CO
~ Q.) E
lJ.. ~
ca ~
E c I/J
C
lJ.. CO 0
:;:::
E 0 ..., ()
co
W I/J
::::s c
III u ~
U) Q.) .c:
0 ....
0
- lD
ca > c:i
-- 0
(.) 0 0
Z t-
c: -:t
N
(fi
ca ..- c..
....
c: u c..
0 :J
-- Ol
LL c
'5
a. "0
>. co
- Q.) 0
.c C/) 0
0
... 0)
C 0) ~
....
0 :J .E
<( c
::E co
.Q
co
LL :J "0
C
Q ..., co
0
-Ie 0
W 0
as
0 0 0 0 0 0 0>
.....
0 0 0 0 0 0 (fi
....
. . . . . . oS!
0 0 0 0 0 0 ....
0 0 0 0 0 fA- c
~
0 0 0 0 0 Ol
.. .. .. .. .. m
0 0 0 0 0 en
I.() 0 I.() 0 I.() ~
N N ~ ~ fA- ~
fA- fA- fA- EA- ~
....
..
~
ftS
E
E
::s
U)
-
ftS
--
C.)
C
ftS
C
--
LLCD
>.0
- I
.cll)
.. 0
CO
ON
:E
CI)~
c..g
g.~
.c~
U)~
Cl)i1
C)'l
S~
C
--
>
Q)
0.
0.
o
..c
en
Q)
C):
CO'
.+oJ!
C'
5'
.
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
. . . . . . . .
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 ~
0 0 0 0 0 0 0
- - - .. .. .. ..
,..... co LO V C') N ~
~ ~ ~ ~ ~ ~ ~
c
::s
-,
~
co
:::E
"-
0.
<(
"-
co
:::E
.c
Q)
I.L.
c
co
-,
(,)
Q)
Cl
>
o
Z
.+oJ
(,)
o
0.
Q)
en
0>
::s
<(
::s
-,
~
t"
Ji
z....~
..
04 00
.. :> Q)
? .....
rJ:J .~
~ ~:-;:
H g~
l-< rJ:J
Q) .....
~ 0.. "'0
~.;3
~..... ~
~ t:: ~ .........
~ &~ ..
~ 2-.s ~
rJ:J Co+-< -=
Cd 0
..... rJ:J
g13 U
O rJ:J Q)
"'0 ~
:3 ~
~ .3~ ~
,J '13 -g =
~ € 03 =
~ @:'g .~
~ 0 0 .....-
.....~ ~
~ [38
~~ ~
0.;3 .~
U}g =
< ~.~ ~"
r" :> Co) ~
V ..J. 0::1 ~
0. 13 ,...
~ ~,g 0
~ ~1 )
~ S]
CO Q) C'::S
~
......0
(/) .....
-
~ .....
~ o~
=o~,a
~
x
5'
~z
~9
o~
5~
~~
~o
~~
S2~
u~
<z
C/J.o
~z
~~
~u
co.-
~~
~
f--4
Of!
r/J N
l-<~
0>
t);;>
(1) .
"'0 .!:: E-<
~ 0 ~
ot+-<t)
~ 0 (1)
] .!::
Goo
:.::::co~
o I....
~~=:s
r./) ()
co (1)
<::t ~
-~
1:1)
~
~ is ~
o ......s
o ~ ~
~5~5<::E
5 ~.~ ~ ,; 5
::E 0 (1) J.c co
~c.....~::s
~~ ()'t::E~
;0"0::4.....
CO.....~
co
::s ~
Q 1;;
I c:: co rIl
e .... ::s c:: (1)
1:1) (1)'bh~ ~ ~ c::
CO.S co ~ ~ ~ € ~
c:: ~ ~ "0::4 .... r/J 0 Po
::s ~ 'C ~ ~ (1) ^ ....
~:I:Q)~-i-=
ta (1) ~.~ m .c:: ~ f
~'8::EOuu.....
f
I
--l-.....;,
I 0..\
\~,g~~\
I i.:l lZl ::t: 02.
~ Q) ~ ~\
\:g~'.~::i
\~ o,Z,\
\P"U J
L. __
co 0
d :-;::
;e .s
- '1:1)
'S c::
~ as 8-
~ ~ ~
o is l-<
::: - in
o "'" a
.~ ~ 1S ~ >>
~ ~].~ ~
~ ~', ~!
I ~ J.g ~
~:a ~a"
ac.D I I d'
rIl I 1S.,~,io,
~ ~ '0.. >s"
"~,~ ! ~, O"'...:.'~'
-= 0" e tlJ ..m.,
m . tlJ .....i:
i~~~~
~~~-
j ~ !
~~S_4....
~~~!:~
~ _l1li"
_:
CITY OF IOWA CITY
MEMORANDUM
Date:
To:
From:
Re:
May 9, 2007
Economic Development Committee
Wendy Ford
Downtown Market Niche Analysis
Marketek is assembling background information on Iowa City in preparation for their first site
visit, May 29-31.
They have a full schedule including driving tours, walking tours, a lunch meeting meeting with
the Economic Development Committee, Chamber and Downtown representatives leading the
project (tentatively set for May 29 at noon); 6 focus group sessions; a community meeting and a
wrap up with our local committee again on Thursday.
Following this memo are the drafts of two surveys
· for downtown shoppers/consumers and
· for our' downtown businesses.
Staff is currently investigating the most effective and efficient ways of distributing the surveys to
consumers. Among the choices are water bill distribution (a 4-week process), direct mail to
residents, and web-based survey requiring PR push to get people to respond.
Iowa City Area Shopper Survey
Your opinion counts! The City of Iowa City and the Iowa City Chamber of Commerce are
working to improve shopping and services in downtown Iowa City. Please take a few minutes to
complete this survey. If you are in a hurry, answer <)flY af tRe /:lu&6tioI16. Deadline: June 15. 2007.
cts ~"--l^.'1 'tu.e~h'oV\~ as: t>OSS1'~~.
Section 1: Shoppinq Habits
1. Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings,
sporting goods, etc.)?
o Downtown Iowa City 0
o Coral Ridge Mall 0
o Sycamore Mall 0
o Cedar Rapids 0
2. What are the primary reasons for shopping where you d
THREE (3) REASONS.
o Convenience
o Familiarity
o Loyalty
o Price
Section 2: Shoppinq Needs in Iowa City
3. What types of SPECIAL TY/MERCH
supported in Iowa City if they existe
DArts & Craft Supplies
o Beauty Supplies
o Books
o Cameras & Supp .
o Crafts/Handm
o Computers
o Galleries
o Auto Supplies
o Gifts & Cards
4.
NISHINGS are needed and would be supported in Iowa
apply)
o Garden Supplies
o Lighting
o Other (Please specify)
5. What kinds stores are needed and would be supported in Iowa City if they
existed? (che at apply)
o Women's ual
o Women's Business
[:J Women's Specialty
[:J Men's Casual
o Men's Business
o Men's Specialty
o
o
o
o
o
Children & Infants
TeenlYoung Adult
Shoes
Jewelry
Other (please specify
6. What kinds of CONVENIENCE MERCHANDISE are needed and would be supported in Iowa
City if they existed? (check all that apply)
o Bakery
[:J Groceries
o Pharmacy
Hardware
Building Supplies
Other (please specify)
o
[:J
o
7. Some of this merchandise may be available locally. Please explain why you may not be buying
these products locally.
8. What kinds of LEISURE/ENTERTAINMENT services are needed and would be supported in
Iowa City if they existed? (check all that apply)
[J Restaurants
[J Exercise Studio/Gym
[J Bowling
[J Movie Theater
[J Live Theater
[J Galleries
Section: 3 Service Needs in Iowa City
[J
[J
Concerts/Live Music
Outdoor Recreation (please
specify)
Indoor Recr
specify)
Other (
[J
[J
9. What kinds of GENERAL SERVICES are needed and wouldb
existed (check all that apply)
[J Appliance Repair
[J Car Wash/Detailing
[J Computer Repair
[J Computer Training
[J Day Care
10. What kinds of PERSONAL SERVICES
existed? (check all that apply)
[J Dry Cleaner/Laundry
[J Hair/Beauty
11. What BUSINESS/PROF
in Iowa City if they ex.
[J Bank/Financia
[J Insurance
[J Copy Center
12.1n your
and
[J
[J
[J
[J
[J
[J
wish)
Alterations
t as many as you wish)
think are needed and would be supported
Pack & Mail
Legal/Accounting
Other (List as many as you wish)
TAURANTS AND EATING PLACES are needed in Iowa City
ed? (check all that apply)
Fast Food
Seafood
Healthy/Natural
Deli
Mexican
Steakhouse
Cafeteria
Dinner Theater
Fine Dining
Tea Room
Other (List as many
as you wish)
[J
[J
[J
[J
[J
13. What HEALTH SERVICES do you think are needed and would be supported in Iowa City if
they existed?
[J Chiropractic
[J Dental
[J Homeopathic/Naturopathic
[J Hospice
Vision Care
General Health Care
Other (please specify)
[J
[J
[J
14. Some ofthese services may be available locally. Please explain why you may not choose
local service providers, if you are aware of their services.
Section 4. Shoppino/Personal Business Preferences
Questions 15-20 deal with what influences your current preferences as they relate to shopping and
doing personal business in downtown Iowa City.
15. Currently, what are the major ADVANTAGES of shopping or doing personal business (e.g.
banking) in downtown Iowa City? (Please check the top 3).
D Convenient location D Less traffic & crowds
D Fair prices D Within walking distance
D Friendly service D Selection of goods/services
D Easy to find parking D Know the store employees
D Support local businesses D Other (pleasecify)
16. Currently, what are the major DISADVANTAGES of shopping or d
banking) in downtown Iowa City? (Please check the top 3).
D Poor appearance D Tr
D Poor selection of goods/services D U
D High Prices D
D Lack of Parking D
D Limited hours
17. What can downtown merchants do to improve
D Improve appearance
D Promotions/advertise
D Improve safe access
D Lower prices/sales
Very
1m ortant
4 5 6 7
4 5 6 7
4 5 6 7
4 5 6 7
4 5 6 7
4 5 6 7
op during the week (MONDAY-FRIDAY)?
DAfter 5:00 PM
20. What are
D Saturd
D Saturda
you to shop on the weekend?
D Sunday afternoon
D Other (please specify)
21. Would you consid
available?
DYes
living in downtown Iowa City if high quality new or renovated units were
D
No
D
Not Sure
22. If you checked YES to question 21, would you be interested in:
D Renting or DOwning
Section 5. Your Thouohts about Downtown Iowa City
Questions 23-25 pertain to specific thoughts you have in relation to downtown Iowa City
23. As Iowa City continues to grow and change, if you could keep one thing the same about the
downtown area, what would it be?
24. If you could chanae one thing about the downtown area, what would it be?
25. What identity or image would you like to see downtown 10
unique shopping and business district?
Section 6. General Information
Please answer a few brief questions about yo
26. Please check your age
o 14-18
o 19-24
o
o
27. Please tell us your home
28. Please share any ot
o
65 or over
City of Iowa City Area Business Survey
1
The City of Iowa City and the Iowa City Chamber of Commerce are working to improve
shopping in the downtown Iowa City area. Please take a few minutes to complete this
survey. All information will be kept confidential. Statistics will be used to help these
organizations to better serve the Iowa City business community. Deadline: June 15. 2007.
6. If you answered OTHE
Days of Week:
1. What is the nature of your business?
o Retail 0 Services 0 Professional
o Restaurant 0 Public Administration 0 Construction
o Transportation/Utilities 0 Financial/lnsurance/Real Estate
o Other (Please specify)
2. How long have you been operating this business in Iowa City? (C appropriate box)
o < 1 year 0 1-4 years 0 5-9 years years or more
3. Name up to 3 advantages or strengths you associate with d
1)
2)
3)
4. How many employees does your compa
Part-time
5. What are your hours and
Dav: 0 Mon - F
Hours: 0 8 as'pm
o Mon - Sun
o 24-hour
o Other:
o Other
business operation hours:
7. D
Lease
you are paying? Please share the $/square foot, OR share your
size (in square feet) of the space you rent.
9. How would you ch cterize your current business' activity level (Le. last 24 months of operation)?
o Declining business activity (fewer clients, fewer sales, less income)
o Holding your own (same level of business, fairly steady)
o Business is moderately growing, increasing
o Business is rapidly expanding
@ @1IIat"t'tetet\
City of Iowa City Area Business Survey
2
10. Which description below best characterizes your plans to expand or reduce your operations in the next
one-two years?
o Plan to expand operations
o Plan to relocate
o Plan to reduce operations
o No plans to change
o Plan to sell business
o Uncertain
11. Please check any type of investment or improvement you have made in your business in the last two
years and provide the estimated value of investment/improvement:
D Physical improvements (store design/layout, interior/exterior remodeling) $
D New/expanded products, services, inventory $
D New/expanded marketing/promotional activities $
D New/additional employees $
D Systems improvements $
D Other: $
D None
12. Please provide the estimated $ value for each investment/improvement checked in
question 9.
13. Please check any type of investment or i
ng in the next one-to-two years.
ich the maioritv of your sales are derived? (Choose just one)
CJ University-related CJ Travelersffourists
urists, please provide more detail on this market: [For example, "We
pture a large share of business travelers. '1
16. In addition to a strong economy, what are the critical factors for the success and expansion of your
business? (Check all that apply)
o Qualified Labor
o Tourism
o Current inventory
o Up-to-date equipment/inventory
o Financing
o Public access
o Foot traffic
o Other (Please specify):
@ @1lIart\l!'te....
City of Iowa City Area Business Survey
3
17. What are some of the major issues or obstacles facing your business today? (Please check the top
five priority issues)
o Customer traffic (not enough/shrinking)
o Property improvements (fa~ade, etc.)
o Cost of rent/property
o Availability of telecom services
o Cash flow/working capital
o General operating costs
o Cost of rent/property
o City/County/State codes or regulations
OSkilllevel/preparation of employees
o Other (Please specify):
o Current economic conditions
o Public safety/crime
o Parking
o Payroll costs
o Competition
o Insurance costs
o Availability of employees
o Computer/technology issu
o Outdated machinery/te
18. Please expand on any of your answers to the question above.
19. To keep your business healthy and com
are important to your company's growth? (
o Business expansion/relocation informatio
o Market identification
o Business planning and cash flow
o Assistance with loan prep
o Property and fa~ade im
OTHER (please speci
owing types of infonnation or assistance
business marketing effort to attract customers to
nts to shop locally?
21. I
22. As downt Iowa Ci
the shopping/busi
lease tell us:
Your phone #:
tinues to grow and change, if you could keep one thine the same about
district what would it be?
@ @ llIaf"l"tetet't
City of Iowa City Area Business Survey
4
23. If you could change one thing about downtown Iowa City, what would it be?
24. What identity or image would you like to see downtown Iowa City develop for itself as a unique
shopping district attractive to residents and visitors alike?
25. How would you rate your overall confidence in the economic
o High 0 Moderate 0 Low
Iowa City as a whole?
26. Are there products or services that your business
would purchase in town if they were available.
DYes 0 No
27. If you answered Yes, please name them and explain yo
at you
28. In your opinion, what could Iowa City buSt
currently shopping in other areas?
al residents who are
29. What could local b
area?
. . rs and other shoppers who live out of the
nfidential. However, if you would like a small business advisor
sistance or other issues, please check YES below.
31.
DYes
ONo
following information.
Please share any other comments below or attach a separate page. Thank you for completing the
survey!
@ @~ete...