HomeMy WebLinkAbout11-13-2007 Council Economic Development Committee
AGENDA
City of Iowa City
City Council Economic Development Committee
Tuesday, November 13, 2007
1 :30 p.m.
Lobby Conference Room
Iowa City City Hall
1. Call to Order
2. Consider approval of October 9 and October 25,2007 Economic Development
Committee meeting minutes
3. Downtown Market Niche Analysis Draft Report (Marketek via conference call)
4. Staff time
5. Committee time
6. Adjournment
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
OCTOBER 9, 2007
CITY HALL, LOBBY CONFERENCE ROOM
PRELIMINARY
Members Present:
Regenia Bailey, Bob Elliott
Members Absent:
Connie Champion
Staff Present:
Wendy Ford, Jeff Davidson, Dale Helling
Others Present:
Joe Raso, Mark Nolte, Craig Gustaveson
CALL MEETING TO ORDER
Chairperson Regenia Bailey called the meeting to order at 8:30 AM.
APPROVAL OF MINUTES OF SEPTEMBER 13, 2007
Elliot moved, Bailey seconded that the minutes of the Sept. 13, 2007 Economic Development Committee
be approved. Motion carried.
ANNUAL REPORT FROM IOWA CITY AREA DEVELOPMENT GROUP
Joe Raso distributed several pieces of information including the ICAD Group Annual and Multi-Year
Reports entitled Measure of Progress - Strategic Investment for Strategic Results; a Progress Report
prepared by the Economic Strategy Center which provides broad based metrics on number of jobs,
earnings, deposits, investments and projects as it relates to the work ICAD has done; and a report on
services provided to the city according to the Memorandum of Understanding between ICAD Group and
the City of Iowa City.
The annual report highlights some FY 2007 results, such as creating 1,067 new jobs with an annual
payroll of $36 million. During the year, they recruited four new companies including KemPharm, Cole's
Quality Foods, Acciona and Prep Sports Online. They also assisted five existing businesses to expand
including Alpla, Whirlpool, P & G/Duke, Plastic Products and LMS America.
The multi-year report for 2002-2006, is the first of its kind for ICAD and is important because it shows how
the recently completed investment campaign is performing for its investors. Notable highlights in the
report include that ICAD Group is responsible for creating 5,015 new jobs with an annual payroll of $150
million and for helping to retain 831 jobs for the period between 2002 and 2006.
Mark Nolte talked about the highlights of another document (provided in the packet) called the Business
Climate Report by Blane/Canada. This report provides standardized reporting of economic development
information for communities of similar size and thus, a set of metrics which we can use to compare with
comparable communities. Local information in the Business Climate Report was gleaned from data
gathered from 25 Synchronist Business Information System Interviews conducted in 2007. The report
includes information on business growth and expansion, community weakness, workforce needs,
community strengths, and an assessment of value, growth risk and satisfaction of Iowa City companies.
An example of information from the business growth section include that 67% of the companies
interviewed have increasing employment needs, as compared to 44% of similar communities in the
national data set. From the community weakness section there were negative comments about
transportation, including two specifically related to the price and the number of flights from the Eastern
Iowa Airport. Of particular note in the workforce section of the report was the extremely high quality
workforce we have. Iowa City scored 5.9 out of 7, while national data scores 4.7.
Finally, Raso distributed a report of Entrepreneurial Companies Assisted by ICAD Group in FY2007,
which included (among others) Bochner. Chocolates, Yeager Enterprises, Bagolitas, Ecolotree and
Asoyia.
STAFF TIME. No report.
COMMITTEE TIME. No report.
Economic Development Committee
October 1, 2007
Page 2
ADJOURNMENT.
Motion and second by Elliott and Bailey to adjourn. Motion carried.
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MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
OCTOBER 25, 2007
CITY HALL, LOBBY CONFERENCE ROOM
Preliminary
Members Present:
Regenia Bailey, Connie Champion, Bob Elliott
Members Absent:
None
Staff Present:
Jeff Davidson, Tracy Hightshoe
Others Present:
Kelly Durian, Karen Kubby, Nancy Quelhorst, Irvin Pfab, Gregg Hennigan, GiGi
Wood
RECOMMENDATIONS TO CITY COUNCIL
Elliott moved to support the application for Tax Increment Financing from Iowa City Ambulatory
Surgical Center. Champion seconded. Motion failed, 1-2 (Champion and Bailey opposed).
CALL MEETING TO ORDER
Chairperson Regenia Bailey called the meeting to order at 9:30 AM.
CONSIDER APPROVAL OF OCTOBER 1. 2007 ECONOMIC DEVELOPMENT COMMITTEE MEETING
MINUTES
Davidson pointed out one correction which was needed; the word "may" changed to "many". With this
revision, it was moved by Champion and seconded by Elliott to approve. The motion carried unanimously.
DISCUSSION/ACTION ON IOWA CITY AMBULATORY SURGICAL CENTER TAX INCREMENT
FINANCING REQUEST
Durian stated that the charity care issue is something they might be able to work with. Durian asked if the
Economic Development Committee wished to state specifically what would be required, and he could
take that back to his board. Bailey asked for further explanation of the MidAmerican Energy standards in
lieu of LEED certification. Durian responded that a baseline energy level was calculated and then
strategies were determined for achieving a 5% savings.
Champion stated that she had not changed her mind and that she did not think the medical care provided
by the proposed ambulatory surgical center would be superior to medical care provided by Mercy
Hospital. Champion stated she was concerned about the profit motivation and the impact on medical care
due to investor expectations. In response to a question, Durian stated that Mercy Hospital's percentage of
ownership could eventually be as low as 51%. Champion noted that other medical facilities have not
asked for TIF funding.
Elliott asked for further explanation of how energy savings calculations were made. Durian stated that an
engineering firm would develop a baseline energy usage estimate, and then develop strategies for
achieving a 5% or 10% energy savings and the associated expense. Bailey stated it would require a high
level of charitable care to be provided for her to change her vote. Bailey stated the MidAmerican Energy
standards were important, but they did not appear to be as high of a standard as LEED certification.
Bailey asked if there were any public comments. Nancy Quelhorst asked if there were standards for when
TIF funding is acceptable to request. Bailey stated it was a discretionary process. Champion stated there
are standards which are used but they are not set in policy. Champion stated this TIF request would
impact the City's ability to fund Fire Station 4, which was a priority for her. Bailey noted that Fire Station 4
would benefit the proposed ambulatory surgery center.
Karen Kubby stated the proposed ambulatory surgical center would be successful with or without TIF
funding. Kubby noted that ACT had gone on record as supporting the construction of Fire Station 4.
Kubby stated there would be lost opportunities from using TIF funding for the Iowa City Ambulatory
Economic Development Committee
October 25, 2007
Page 2
Surgical Center. Kubby stated it was the responsibility of the Economic Development Committee to
convince the remainder of the City Council that this was not the appropriate use of TIF funds.
Davidson explained that the applicant would still be able to request that the City Council address the TIF
request again, regardless of the Economic Development Committee's recommendation. Elliott stated he
disagreed with Champion. Elliott stated he would not typically favor a project for TIF funding that was
going to be constructed anyway. Elliott stated he favors this project by a slight margin, but he would
prefer $200,000-$300,000 instead of the requested TIF amount. Elliott stated he likes the idea of
encouraging not-for-profit entities to become property-tax-paying entities.
Bailey stated she supported the project and hoped it succeeded without public funding.
It was moved by Elliott and seconded by Champion to approve the application for Tax Increment
Financing from Iowa City Ambulatory Surgical Center. The motion failed, 1-2 with Champion and Bailey
voting no. Elliott stated he liked the project and hoped it would succeed. Bailey concurred.
STAFF TIME
Hightshoe stated that underwriting guidelines for CDBG funds would be coming to the Economic
Development Committee for their consideration. Hightshoe noted that other places have standards for
when TIF funds may be used, but the use of such standards is a discretionary matter.
COMMITTEE TIME
Champion stated she did not want standards governing when TIF funds can be used; she felt it was more
appropriate to keep the process discretionary. Elliott stated he might favor some TIF standards. Davidson
stated this matter had been discussed several times and that because requests for TIF funds are all
different, the determination had been to keep the process discretionary. Champion .stated that community
need was important. Bailey stated that TIF should be used to make happen what otherwise would not
occur. Bailey stated she felt this was the community's expectation.
Kubby asked if guidelines developed earlier by the Economic Development Committee were followed.
Davidson stated they were followed as part of the discretionary evaluation process.
ADJOURNMENT
It was moved by Champion and seconded by Elliott to adjourn. The motion carried unanimously. Bailey
declared the meeting adjourned at 10:00 AM.
s/pcd/minutes/ecodev/10.25-07 ED.doc
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CITY OF IOWA CITY
MEMORANDUM
Date:
To:
From:
Re:
November 8, 2007
Economic Development Committee
Wendy Ford
Draft - Downtown Market Niche Analysis
The following report is a draft of the Downtown Market Niche Analysis prepared by Marketek,
Inc. As you know, Marketek has been working on this project since being awarded the contract
in February, 2007.
At the Economic Development Committee meeting on Tuesday, Nov. 13, Marketek will present
the report via conference call and answer any questions about the draft findings and
recommendations. The meeting is planned to be the last opportunity for the committee to
provide feedback and to discuss changes for the final document which will be presented by
Marketek in person at a presentation at the City Council Work Session on Monday, November,
26.
On the following evening, Tuesday, November 27, Marketek will present their findings and
recommendations at a Public Meeting from 5:00 - 6:30 p.m. at the Iowa City Public Library
Room A.