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Home My WebLink About09-22-2010 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Wednesday, September 22,2010 8:00 a.m. City Manager's Conference Room City Hall 1. Call to Order 2. Consider approval of the August 13, 2010 Economic Development Committee meeting minutes 3. Consider request for CDBG Economic Development Loan for The Paper Nest 4. Consider request for CDBG Economic Development Loan for Miss Manners School for Dogs, LLC 5. Consider approval of Resolution of Necessity for Towncrest Urban Renewal Plan 6. Update on completion of Feasibility Study for Downtown Business Incubator 7. Staff time 8. Committee time 9. Adjournment draft MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE AUGUST 13,2010 CITY MANAGER'S CONFERENCE ROOM, 7:30 A.M. Members Present: Staff Present: Others Present: Regenia Bailey, Matt Hayek, Susan Mims Wendy Ford, Jeff Davidson Wally Pelds, Steve Moss, Gigi Wood RECOMMENDATIONS TO COUNCIL: Mims moved to recommend the amendment to the Moss Green Urban Village Development Agreement as discussed. Hayek seconded the motion. Motion carried 3-0. Hayek moved to recommend the 1-year extension of the 5-year funding agreement with Iowa City Area Development Group (I CAD) as discussed. Mims seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 7:35 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE JUNE 15, 2010, ECONOMIC DEVELOPMENT COMMITTEE MEETING: Hayek moved to accept the June 15, 2010, meeting minutes as submitted. Mims seconded the motion. Motion carried 3-0. CONSIDER A RECOMMENDATION ON AN AMENDMENT TO AN AGREEMENT FOR PRIVATE DEVELOPMENT BETWEEN CITY OF IOWA CITY AND MOSS GREEN DEVELOPMENT CORPORATION: Davidson addressed the Members, noting that the next steps in the legislative process for this project have been deferred until further information is received from the Army Corps of Engineers and the State Historic Preservation Office. He then briefly described a proposed amendment to the Moss Green agreement, noting the main reason for the modification is that the developer has been able to further refine their cost estimates and due to delay and local contractors, find prices are higher than originally estimated. The developer's original estimates were $13.7 million and they have now risen to $15.3 million. Davidson noted that of the provisions stated in the original developer's agreement, only one, number 5, would change. He reiterated that the change would only affect the 'not to exceed' limit of funds to be reimbursed and that reimbursed funds would be the lesser of a) 20 years of 50% of the tax increment collected, or 2) the actual cost of the minimum improvements, or 3 $15.3 million instead of $13.7 million. Mims noted that she is fine with this recommendation. Hayek asked for clarification on the costs associated with the environmental issues. Wally Pelds briefly explained the additional items, noting the long list of requirements from the Army Corps of Engineers. Economic Development Committee Meeting August 13,2010 He added that the storm water chambers are about half of the increased costs. The conversation continued, with Pelds responding to Members' questions. Mims moved to recommend the amendment to the Moss Green Urban Village Development Agreement as discussed. Hayek seconded the motion. Motion carried 3-0. CONSIDER REQUEST FROM IOWA CITY AREA DEVELOPMENT GROUP FOR ONE YEAR EXTENSION OF 5-YEAR FUNDING AGREEMENT: Ford noted that Members have a letter in their packet from the ICAD President, Joe Raso, and the ICAD Chair, Scott Fisher, asking the major funders of ICAD for a 1-year extension of their 5-year funding agreement. This would then take them through fiscal year 2012. Hayek moved to recommend the 1-year extension of the 5-year funding agreement with Iowa City Area Development Group (I CAD) as discussed. Mims seconded the motion. Motion carried 3-0. UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES: Davidson referred to the update memo in the packet. There are eight significant on- going projects highlighted and he added that while the economic slowdown is ongoing and developers don't have as much access to capital, that it is important the city continue to prepare for the future when funding does become more available to the private market. Davidson then reviewed the projects beginning with the new industrial park project. He stated that there is much interest in the industrial park. albeit no companies have purchased lots yet. Moving on, he noted the Moss Green Urban Village Project that was previously discussed, and the Ul's music school project downtown which is involving many landowners and businesses. The feasibility study for the downtown incubator is nearly complete according to Davidson. He added that it has some very specific proposals in it. Next, Davidson noted that the multi-use parking facility project (old St. Pat's Parish Hall site) is at the point where some critical decisions must be made with regards to commercial tenancy and residential components. The final two projects he discussed were Towncrest and Riverfront Crossings. STAFF TIME: Ford noted that the City was awarded a $70,000 Iowa Great Places grant that will go towards the streetscape improvement project in the northside neighborhood. This project will extend the Literary Walk from Iowa Avenue up through the north side Market Place Neighborhood. She also noted that staff has been continuing the corporate outreach visits, recently visiting Loparex and United National Foods Inc. Ford requested members look for an email with options for a September meeting date. Economic Development Committee Meeting August 13, 2010 COMMITTEE TIME: None. ADJOURNMENT: Mims moved to adjourn the meeting at 8:30 A.M. Hayek seconded the motion. Motion carried 3-0. Economic Development Committee Meeting August 13, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM ...... w w .j:::o. 01 0> Q:) EXP. - - - - - - - NAME I\) I\) ...... I\) I\) ..... ..... 0 0'> 0 01 01 W Regenia 01/02/11 X X X X X X X Bailey Matt 01/02/11 X X X X X X X Hayek Susan 01102/11 X X X X x x x Mims Key: X = Present o = Absent OlE = Absent/Excused INITIAL REVIEW OF THE PAPER NEST WORKING CAPITAL Business Proposed: Applicant, Elizabeth Munger, is requesting funds to expand a retail custom print and design company in Iowa City. The owner opened the business last year from her home with sales totaling over $3,000. She is looking for a commercial space to expand the business. The expansion will allow her to showcase her products, space to consult with customers and to expand her inventory. The business offers quality printing and bookbinding paper and tools as well as custom stationary such as wedding invitations and business cards. The owner graduated from the University of Iowa with a BFA in Printmaking and received a graduate certificate from the Center of the Book, University of Iowa, in 2009. The applicant proposes to lease 600 SF of space from Beadology Iowa at 220 E. Washington. Beadology is a retail store specializing in beads, tools and beadwork supplies. Beadology offers custom jewelry, complete jewelry repair and offer various classes. The applicant hopes to increase foot traffic for her business and will partner with Beadology for some business services and marketing endeavors such as wedding parties where the guests can print their own invitations and make their wedding jewelry. The business qualifies as a micro-enterprise under the Community Development Block Grant program. The owner requests $11,000 in CDBG funds for working capital expenses. Budget & Private Financial Contribution The applicant's total budget for expansion and working capital is $22,000. The applicant has secured financing for 50% of the loan through MidWestOne. After discussions with the lender, the bank's loan will be secured though a lien on all business assets. The lender recommended the application due to the thoroughness of the business plan and the applicant's strong credit. The lender can't fully fund the total request due a collateral shortfall. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in the central business district. Micro-enterprise assistance is a high priority under CITY STEPS. A micro-enterprise is a commercial enterprise that has five or fewer employees, one or more whom owns the enterprise. At least 51 % of the employees and owners must qualify as low-to-moderate income. Quality of Jobs The business does not anticipate hiring employees at this time. Once the business is able to run sufficiently, it is her hope to hire a part time employee to assist in printing, customer service and packaging. The owner hopes to draw her income from this business without outside employment. September 2010 Economic Impact The proposed CDBG funds will provide a small, woman owned business with access to low interest working capital and enable her to expand her operations. These funds will also allow the business to obtain private financing through a commercial lender. Environmental/Community Involvement The business will recycle all waste paper and other materials as able. The proposed remodeling will result in increased energy efficiency in regards to temperature control. Staff recommendation: The owner has worked with various professionals and the Small Business Development Center to develop and enhance her business plan. The applicant will be utilizing the Small Business Center for further training in bookkeeping, business and financial management, marketing and tax services. The applicant secured private financing for 50% of the anticipated expansion and working capital needs. The applicant has a history of paying debt obligations. The applicant will utilize a downtown location made affordable by leasing 600 SF of space in Beadology and will partner with that business for various business strategies and marketing endeavors to create a win-win situation. Staff recommends $11,000 for working capital with a maximum term of 7 years at 1 % interest. The remaining $11,000 will be a loan secured through MidWestOne. Staff recommends as a condition of the award the business receives the technical assistance recommended by the Small Business Development Center. For partial security, staff recommends a lien on the owner's personal vehicle. The commercial lender will have the first lien on all business assets. September 2010 Iowa City CDBG Application for Assistance Economic Development Funds Business Financial Business Requesting Financial Assistance: Individual Elizabeth Munger Home Address 1105 Ginter Ave Iowa City, IA 52240 Name of Applicant Business the Paper Nest Full Street Address of Business Phone Number & Email Address (319)455-6378 / liz@papernestpress.com DUNS Number (If awarded funds, applicant must obtain a DUNS number): Type of Business Retail/ Custom Print & design Date Business Established January I, 2010 Bank of Business Account and Address (if applicable): Farmers & Merchants Savings 2235 Mormon Trek Boulevard Iowa City, IA 52246-4436 (319) 341-5900 NOTE: The City will not provide assistance in situations where it is determined that any repre- sentation, 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 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 Paper Nest is looking to relocate to a public space (220 E. Washington) where customers will be able to come in to see and feel paper and tools before purchasing instead of ordering them online as they do now. The move will also provide much needed space for the current inventory, as well as allow for inventory expansion. The larger location will allow for a different press and better equipment that is more conducive to custom job printing. The added room will also create a space to comult with clients. I also want to incorporate a small gallery space to bring in non-traditional customers and make the store a part of the art making community. It will also eliminate the need for me to deliver paper creating more time to be in the shop printing and working with customers. Because the anticipated space is shared with an already existing business, Beadology, the price per square footage is less then it would otherwise be in an independent location, allowing the relocation and rent rate to be very affordable. The Paper Nest also gains a potential client base from Beadology's foot traffic that it wouldn't otherwise have, increasing potential sales and word of mouth advertising and vice - a - versa. 1.2. Provide a brief history of your company: The Paper Nest has been in business for a little more then a year. We have been focusing on retailing high quality printing and bookbinding papers, as well as printing wedding invitations and custom stationary. The Paper Nest was started to fill a niche market that was not being served in the art community of Iowa City. As a printer and bookmaker I was always ordering materials online and buying outside of the community. In hopes of supporting the community and maintaining an integral role within it I decided to open a store that would cater to the numerous other artists here. With a degree in Book Arts I was also interested in taking advantage of my skills and felt that offering printing would compliment paper retail as well as give me an opportunity to hone my profession and work within the Iowa City community. As Iowa City takes on its role as a City of Literature I envision the Paper Nest assimilating even more into our art community. Becoming an integral part of the Center for the Book, Writer's Workshop, and other local artists is what is most exciting about starting and maintaining this business. 1.3. Describe the organizational structure of the business: The Paper Nest is a small woman run business. I am the sole proprietor as well as the in- house printer and sales woman. I'm interested in hands-on work and enjoy the opportunity of working one on one with customers whether that be discussing what paper works best for a project or working with a client from beginning to end to produce a print that they are excited about. Revised 11/15/06 2 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name & PositionfTitle Complete Address % Owned Elizabeth Munger / Owner 1105 Ginter Ave. 100 Iowa City, IA 52240 Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. 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 Iowa City , or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. N/A Revised 11/15/06 3 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds *See Attachments USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to Activity the nearest hundreds) Land acquisition $N/A New Construction/Expansion Repair $ 5056 Acquisition and/or Repair of Machinery $ 7573 and Equipment Inventory Purchase $ 2305 Working Capital (including accounts $ 5612 payable) Acquisition of Existing Business $N/A All Other (Additional Potential Minor AlP) $ 349 Marketing $ 1106 Total Loan Requested (All Sources): $22,000 2.2. Terms of Proposed Financing (Sources) Monthly Type(1) Proposed Financing Amount Payment Rate Term Farmers & Merchants Savings $ Hills Bank and Trust $ Midwest One $11,000 225 SBr Loan 8.10% 5 years Iowa City CDBG Economic Dev. Fund $ 11 ,000 136 (1 %) 0-1% 7 years TOTAL: $ 22,000 361 (1)For example: forgivable loan, direct loan, or grant. 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 4 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. Owners cash + Assets =13905.85 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: 1. Anna Ullerich - Financial, general business strategy 2. Paul Heath/ SBDC - General business strategy 3. Karen Kubby / Beadology - Resource 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. € Corporate Guaranty € UCC Financing Statement € Irrevocable Letter of Credit € Personal Guarantee € Surety Bonds € Mortgage on Real Estate € Escrow Account € Other: _Machinery, Equipment, and Inventory_ 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. 2.7 If the City did not provide financial assistance, could the project proceed? Without funding the move would not be possible. The Paper Nest believes relocating would increase sales and aid in making it a successful and integral part of the community. At its current location the Paper Nest is unable to grow any further. I am able to do enough business to sustain the operation itself but do not have enough income to draw any salary for myself. Revised 11/15/06 5 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. 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. I am the only employee. 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. I would be the only employee, and would fulfill these positions. The Paper Nest creates a place in the community, utilizing the skills that I have gained through a University education that I would not have otherwise found. Once the business is able to run self sufficiently, I hope to hire a part time employee to assist me in printing and overall in-store activities, such as customer service, paper cut down, and packaging. Additionally I will be outsourcing contractual work to local binders and hand made papermakers. 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) # of Jobs # of Jobs No. Hours Hourly Fringe Created Retained Type of Job Per Week Rate of Pay Benefits* Officials & Managers Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) Operatives (semi-skilled) Laborers (unskilled) 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. Revised 11/15/06 6 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: N/A Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? RSVP, Zephyrs, Tecnigraphics & Dick Blick are local printers. RSVP, Zephyrs, and Tecnigraphics do some form of wedding invitations and custom stationary. What differentiates the Paper Nest is that it specializes in the entire printing process, designing, choosing paper, and hand printing, while Zephyrs and Technigraphics only print digitally and RSVP has predesigned catalogues that the customer goes through to choose their design to be printed. Dick Blick is the only other local retail option for art quality papers. They do not design or print letterpress. Since they are a more generalized art store their quantity and quality tend to suffer. The other options for buying paper are: driving a few hours away to Chicago or St. Louis, or order online. The Internet offers materials and custom invitations but again there is a disconnect from the customer to the product. The Paper Nest allows one to experience the paper, and take part in all design choices in order to make more personalized decisions. Not only does the Paper Nest benefits the community by providing a local alternative but contributes to keeping Iowa money in Iowa. Revised 11115106 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. The Paper Nest's main waste is paper and I plan to recycle that along with any other materials I am using that are recyclable, including the photopolymer plates used in the printing process. Any cleaning that happens whether its on the press or in the space will be done using minimal non-toxic, eco friendly products utilizing rags and the like to decrease what is thrown out. A majority of the remodeling is geared towards increasing energy efficiency, especially regarding temperature control. I plan on having one of the outfacing walls finished, and placing doors in-between the studio space and inventory area so as to use less heat. This will in turn help the energy efficiency of the adjacent space, Beadology. The new location (220 E. Washington St.) will allow myself, and the customers to easily use alternative transportation to go to and from the store. I also offer a reusable bag large enough to fit the large sheets of paper I sell, decreasing the use of throwaway packaging. The bags are even made by a local Cedar Rapids woman owned company! 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. I intend to eventually offer bookbinding and printing workshops to the community, as well as opening up a community print and bindery shop that would allow people to have access to equipment and workspace that would otherwise be unavailable or cost and commitment prohibitive through the University Also I would like to eventually be in a position that a percentage of my proceeds would go to the Iowa Gty Animal shelter and/ or PBRC(Pit Bull Rescue Center). 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 been involved in bankruptcy or insolvency proceedings during the past 7 years from the date of this application? If so, provide the details. No Revised 11/15/06 8 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. [] Business plan (if start-up business) [] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) [] Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [] 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 [] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) [] Please provide the social security numbers for all the persons listed under Management (Question #1.4) [] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. [] 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. 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. Revised 11/15/06 9 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 assistance from a state agency or political subdivision. If applicant is a proprietor or general partner, sign below. By: ~ Date: '1.!-/0 If applicant is a Corporation, sign below: Corporate Name and Seal Date By: Signature of President Attested by: Signature of Corporate Secretary Revised 11/15/06 10 Table of Contents 1. Our Mission 2. Products & Services We Offer 3. Development Summary 4. Growth Phase 2 5. Growth Phase 3 6. What Makes Us Unique 7. What We Offer as a Business to Iowa 8. Our Competition 9. Marketing Plan 10. Anticipated Growth In Sales 11. Attachments · Paper Survey · Bio · Resume · Letters of Recommendation · References · Financials · Taxes · Contractor Estimates · List of Machinery and Equipment · The Paper Nest Price Estimates · The Paper Nest Printing Samples 1. Our Mission The Paper Nest has a two tiered mission: First to provide a local alternative to artists in the area who require quality paper and tools which they currently mail order from outside markets. Secondly, to provide a unique, high quality letterpress printing service to the community. 2. Products & Services We Offer The Paper Nest offers quality printing and bookbinding paper and tools, as well as expert advice on what materials would be most appropriate on a project-to-project basis. In addition to retailing quality materials we also offer custom stationary, such as wedding invitations and business cards, starting from the design process to hand printing. Paper and tool costs make up a third of our income, while the rest of the two thirds are based on printing. 3. Development Summary: Phase 1 With funding the Paper Nest will be able to relocate to a bigger space, 220 E. Washington St., which will allow for expansion of inventory, as well as a working studio space, and the opportunity to be accessible to the public. 4. Growth Phase 2 In 2 years I hope to facilitate and run printing and book binding workshop a couple times a month, allotting other artisans to come in utilize their skills. Also I would like to be a in a position to expand my inventory by 50%, which will fit comfortably in my already existing location. 5. Growth Phase 3 In 5 years I intend to open doors to the community for a print and bindery shop. Giving local access to studio space and presses, as well as continuing to facilitate a working environment for fellow craftsmen. Membership and/ or time rental will apply. 2 6. What Makes Us Unique First, on hand quality and quantity resources: Offering materials and tools to customers that are difficult to get locally. Most artists in the community order paper online where they forego seeing and feeling what the paper actually looks like. The Paper Nest enables the artist to come in and experience different papers allowing them the opportunity to pick out first hand what paper works best for them. The second advantage to the customer coming in is that they have the benefit of an on hand paper expert they can trouble shoot with if they don't know what they are looking for. Secondly, a revival of an old world printing process, Letterpress! A hands-on printing service for wedding invitations, custom stationary, business cards, fine press printing and special edition album covers. We differ from local competitors by being part of the process from the design, to printing and assembling the final product. No pre designed or packaged products. The Paper Nest is a unique asset to the community. As Iowa City steps up to the reputation of a City of Literature, boasting the Writers Workshop, Center for the Book, and other creative cultural endeavors the Paper Nest fits right in to this image. 7. What We Offer as a Business to Iowa I am a graduate student from Iowa who is interested in living here and contributing to my community. Being able to create a job in my field allows me to have that opportunity, as well as to support Iowa's economy and diversity. " A student who stays in Iowa after graduation to live and work is an investment that pays for itself many times over. Last year 73% of the Iowa resident graduates remained in Iowa - this investment continues to pay great dividends for the state of Iowa." hup: / / wwvv .iowacollegefoundation.org / programs.html 8. Our Competition Within the Iowa City and surrounding area there are few business that offer similar products and services. RSVP, Zephyrs, Technigraphics and Dick Blick. Neither of these fully addresses the niche market that we do. RSVP, although retailing letterpress cards and other gift items does not have a press or an in-house printer. We are not a card retailer and we do all the printing in house. Nor are their designs entirely custom made. Their invites are predesigned catalogues that you choose from. Dick Blick retails papers but is more of a general art retailer, carrying a little bit of everything, rather then specializing in this particular area of printing and bookbinding papers. 3 Copy centers such as Technigraphics and Zephyrs mainly do photocopying and digital printing. There is an element of custom design work, but they are then translated to digital rather then a direct printing method. The look and feel of digital vs. direct is vastly different. The Paper Nest is not Zephyrs, Technigraphics, RSVP, or Dick Blick. We specialize in quality and quantity of papers, handmade bookbinding tools, and custom letterpress work. By offering these items we will fill a void not found in Iowa City or the surrounding area. In conjunction with these services the Paper Nest is able to offer an expert perspective to artist of all kinds looking for advice on papers and printing. 9. Marketing Plan Market Analysis Summary In 2009 The United Nations Educational, Scientific and Cultural Organization (UNESCO) designated Iowa City, Iowa, the world's third City of Literature. "The community's strategic commitment to literary culture through the diversity of grassroots initiatives, such as the Iowa's Writers Workshop and the Iowa Summer Writing Festival, was highly regarded as an instructional model and inspiration for other small cities to promote local economic and socio-cultural development through creative industries" http:// porta1.unesco.org/ culture/ en/ ev.php- URL. IO=-~38314&URL 00=00 TOPIC&URL SECTION=201.html Iowa city is also home to the nations #2 printmaking school and one of the few graduate book arts program. Currently there are 114 printmaking students enrolled in fall semester printmaking classes, and 121 students in bookbinding, letterpress, and calligraphy classes. With experience in both fields I have been privy too and participated in purchasing paper and specialized tools online. A majority of projects require specific paper and the majority of that paper can either not be found locally or in the quantity that is sufficient. Due to the unique community found here, printers, bookbinders and writers, Iowa City would benefit from having a local business offering the materials, tools, and services of this industry. 4 Our target markets are: Paper 1. University Students & Faculty Students - This is the largest target audience and includes all prinbnaking and Center for the Book students consisting of 500 plus students, as well as the drawing, painting, and design students. Also the turnover of new and graduating students each year, provides a continuously regenerating customer base. Instructors/ faculty - This group consists of 32 University of Iowa Art faculty, as well as adjunct positions. They recommend what supplies are needed and where to find them, as well as being independent, working artists. a. Center for the Book - prinbnakers and bookbinders needing paper as well as tools on a regular basis for projects. b. Prinbnakers -looking for quality paper that can't be attained locally, on a regular basis for projects. c. Writer's workshop - seeking a printer for small fine press editions of their work. d. Instructors -looking for quality paper that cant be attained locally, as well as a local retailer to suggest to new students looking for paper. 2. Book Artists - Bookbinders and Printers who are seeking a reliable local resource to buy materials from and discuss paper choices. 3. Printmakers - Printers seeking a reliable local resource to buy materials from and discuss paper choices. 4. Scrap bookers - This group consists mainly of women ages 30-50 that are looking for specialty paper. "The scrapbooking industry doubled in size between 2001 and 2004 to $2.5 billion[13] with over 1,600 companies creating scrapbooking products by 2003" http:// en.wikipedia.org/ wiki/Scrapbooking Printing 1. The Wedding Market - Brides to be & Planners seeking professional announcements and invitations. 2. Businesses & Individuals - Seeking unique business identities and/ or marketing materials. 3. Musicians/ Recording Studios - Musicians and recording studios consisting of people looking to promote, and put out albums. They are looking for ways to be unique, having an editioned letter pressed album cover or poster is a way for them to stand out. 4. .Writers - Local writers including workshop graduates seeking a fine press edition of their work. 5 I expect to gain long term and committed clients based on becoming known within the community, and by participating in local art happenings, as well as . from annual regeneration and word of mouth. Marketing Industry Overview Paper In 2007 US. News and World Report ranked the University of Iowa's Prinbnaking program number two in the nation. This honor is based on the faculty, number of classes offered, equipment, number of graduate students and the quality of the program overall. This type of recognition has resulted in the addition of two faculty members, the expansion of introductory prinbnaking classes, and a renewed interest in the graduate program. The flooding in the summer of 2008 required that this area replace much of its equipment, further increasing the attractiveness of the deparbnent. Similarly, the University of Iowa's Center for the Book has gained national attention in the fine art and rare books community over the past four years. In 2007 the Center for the Book became governed by the Graduate College, which may lead to development of an MA or MFA program. Through the generosity of donors, the UICB was able to add their first full time faculty in 2008. In January 2009 the UICB hosted the first biennial national conference of the College Book Arts Association on the University of Iowa campus which drew 230 registered participants. Despite being home to two of the nation's outstanding arts programs, currently there are no specialized fine art paper stores in Iowa City or surrounding areas. With the recent closing of Aiko's in Chicago (due to a sudden family tragedy) the closest fine arts paper supplier is Stephen Kinsella in St. Louis, MO. Area Hobby and Craft stores, such as Hobby Lobby, Ben Franklin, and Michael's, do not stock the high quality, archival papers required for classes in prinbnaking or in book arts. Chain-style" Art Stores," such as Blick Art Materials, may carry some of the same papers The Paper Nest will stock, but they tend to stock low quantities, and the staff is not trained in the use or handling of paper. Students, faculty, and professional artists are forced to mail order their paper supplies, paying an outrageous amount in shipping and handling. The Paper Nest conducted an informal survey, using Survey Monkey [dot] com in the Fall of 2008 (*see survey attachment) 100% of the participants indicated they would prefer to buy their materials (tools and papers) locally, rather than have them shipped. It is important to recognize the trend to "shop locally" is increasingly a concern for the average consumer. The Paper Nest will provide a wide range of quality fine art papers, which will meet the requirements of beginners as well as seasoned artists. The Paper Nest will also provide hard-to-find and specialty tools for working in binding, printing, and papermaking. Exclusive items include handcrafted papers from Hark! Handmade Papers (Madison, WI) and handcrafted tools by Sharma Leino (Manchester, NH). The knowledgeable staff can provide first hand, professional 6 advice on a variety of techniques, including bookbinding, box making, letterpress, relief printing, silkscreen, intaglio, papermaking and pulp painting. The average customer to shop at The Paper Nest will be students, men and women, between the ages of 20 and 35 years old, who are currently enrolled in classes at the University of Iowa's Department of Art or Center for the Book. For the Spring 2009 semester the University of Iowa's Department of Art had nearly 400 students enrolled in either printmaking or drawing classes. The UlCB had an additional 120 students registered for binding, printing and calligraphy classes. These individuals typically have ongoing projects and specific deadlines to meet throughout the school year. Student enrollment has the potential to increase as these programs grow. By targeting the needs of this core group of customers, The Paper Nest can establish repeat customers and faculty endorsements. The Paper Nest will concentrate marketing efforts in established art communities in Cedar Rapids, Fairfield, Solon, Amana, and Cedar Falls. As a specialty store, The Paper Nest prides itself on its ability to carry the finest quality papers, but understands that mistakes are inevitable while mastering a new skill. Recognizing the need for students to make the most of their money, The Paper Nest will offer a range of papers to meet everyone's budget. By keeping well stocked in a great variety of papers, customers can buy only what they need for the project at hand, knowing that they can always return for more, as the need arises. Bulk items such as thread, glue and beeswax, is another cost saving strategy that The Paper Nest will pass down to its customers. Printing Letterpress printing has been an increasing trend from wedding invitations to artist books. There are now an ever growing number of sites dedicated to presses, print shops, and of course custom stationery. "Letterpress, we were once told, was a thing of the past. Yet, now letterpress is very clearly 'the focus of renewed enthusiasm. Interest in setting types by hand continues to grow, with an increase in letterpress activity further fuelled by an ongoing concern with visual authenticity. For many, letterpress offers something beyond straightforward graphic reproduction. It offers the means to create hand-made objects of worth." http://stbride.org/events In Iowa City alone, not including surrounding areas there were 1131 marriages last year, with an increase seen due to the legalization of same sex marriages. According to a number of wedding focused sites and magazines, The average wedding costs $23,657 (not including the engagement ring or the honeymoon). Bud~et 22.000 25,000 30,000 60,000 Stationery 3% 660 750 900 1800 http://www.smartmoney.com/personal-finance / marriage-di vorce / theyll-never- know-eight-hidden-ways-to-cut-wedding-costs-13918 / #ixzzOy2p Tnd7 A 7 · Wedding invitation costs can range from $1.50 each with do-it-yourself kits from craft stores to $3 or $4 each for mid-range standardized invitations on mid-weight paper to $9 or more each for invitations that use a high-end printing process -- such as engraving or letterpress -- on quality handmade or silk paper. · The per-invitation cost goes up with extra folds -- tri-fold costs more than bi-fold -- or lining on the invitations or envelopes. · The average couple spends $659 on invitations and reply-cards, according to The Bridal Association of America. 2006 65% of the Paper Nest printing jobs consist of wedding invitations with business cards and personal stationery making up the last 35%. The Paper Nest expects to increase printing sales 100% with the relocation and marketing strategies. Marketing Strategy 1. I will send a press release upon opening to: a. The Press Citizen b. The Daily Iowan c. Little Village Magazine d. Cedar Rapids Gazette e. Kirkwood Community College Communique 2. Consumer Website a. The Paper Nest web site and Facebook Fan Page b. Beadology's web newsletter, Beadology e-list. 3. Advertising a. Newspaper - The Press Citizen, The Daily Iowan, Little Village Magazine, Cedar Rapids Gazette, Kirkwood Community College Communique b. Web - Retail web site, Facebook c. Radio - KRUI d. Co-advertising with Beadology on IPR, and other ads and underwriting 4. Signage a. Front entrance - A sign on the front window / door. b. Back entrance - A double-sided sign that can be seen from either side of the sidewalk as one walks past. 5. Community a. Gallery openings b. Gallery Walks c. Workshops (Phase 2) 8 10. Anticipated Growth in Sales I expect my paper sales to increase once I am in 220 E. Washington from 1 paper customer a week to 12 paper customers a week, and my printing customers to increase from 2 a month to 4 a month. Not having a physical location makes me less accessible to the public and customers stopping in, asking questions, and seeing the products. Changing this to a downtown storefront will allow for the anticipated growth. 11. Attachments 9 SurveyMonkey - Survey Results http://www.surveymonkey.com/MySurvey _Responses.... You have a BASIC account I To remove the limits of a BASIC account and get unlimited questions, Paper needs, uses and desires Default Report + Add Report Response Summary Total Started Survey: 29 Total Completed Survey: 29 (100%) PAGE: PAPER NEEDS, USES, & DESIRES 1. Please choose the answer that best describes you. Response Response Percent Count Student 0 3.4% Graduate Student -::J 72.4% 21 Artist c:::J 13.8% 4 Instructor [=:J 10.3% 3 Hobbist 0.0% 0 answered question 29 skipped question 0 2. What are your interests? Please check ALL that apply to you. Response Response Percent Count Prlntmaklng (general) =::J 58.6% 17 Letterpress printing 62.1% 18 Book binding :=J 69.0% 20 Artist books ~ 69.0% 20 Box maker J 34.5% 10 Scrapbooklng D 6.9% 2 Drawing I ~ 48.3% 14 Painting L 27.6% 8 answered question 29 skipped question 0 lof5 8/23/10 4:00 PM SurveyMonkey - Survey Results http://www.surveymonkey.com/MySurvey _Responses.... 3. Are you interested in buying paper locally, rather than mail order? Response Response Percent Count Yes 100.0% 29 No 0.0% 0 answered question 29 skipped question 0 4. How frequently to you buy paper? Response Response Percent Count Weekly 0.0% 0 Monthly 24.1% 7 As new projects arise 58.6% 17 Every 3 months C=:J 10.3% 3 Every semester 0 3.4% Once a year 0.0% 0 Rarely 0 3.4% answered question 29 skipped question 0 5. What paper (specifically) do you use most often? Choose all that apply 2of5 8/23/10 4:00 PM SurveyMonkey - Survey Results Sommerset 5. What paper (specifically) do you use most often? Choose all that apply Ingres (Hahnemulhe, Fabrlano) " Johannot Stonehenge c::==J Lennox 100 UlCB cover paper Zerkall c::==J Morlki c::==J Hosho 0 Japanese Decorative papers L.____...J Lettra c::==J Canson MI Tlenes Book cloth Book board Mohawk ===:J 6. Any we missed? Type your favorites here: 3 of 5 http://www.surveymonkey.com/MySurvey _Responses.... 48.0% 20.0% 28.0% 7 20.0% 5 16.0% 4 28.0% 7 36.0% 32.0% 12.0% 24.0% 40.0% 48.0% 48.0% answered question 25 skipped question 4 answered questfon skipped question 28.0% 7 Seklshu L-- Sakamoto D Kltlkata L_--1 Okwara D Mullberry r=:=::J Cave Paper 12 12.0% 5 12.0% 3 0.0% o 12.0% 4.0% 8.0% 2 8.0% 2 9 8 6 10 12 12 Response Count 8 21 8/23/104:00 PM SurveyMonkey - Survey Results http://www.surveymonkey.com/MySurvey _Responses.... 6. Any we missed? Type your favorites here: 8 answered question 8 skipped question 21 7. Do you feel local art suppliers have items you need when you need them? Response Response Percent Count Ves 0 3.4% No C'-i 20.7% 6 Sometimes 75.9% 22 answered question 29 skipped question 0 8. What supplies/tools would you like to buy locally? List them here. Response Count 17 answered question 17 skipped question 12 9. If you would like to join the Paper Nest mailing list, please enter your Information here. Response Response Percent Count Name: 100.0% 16 Company: [- l 25.0% 4 Address: 81.3% 13 Address 2: 0 6.3% CltyfTown: 87.5% 14 answered question skipped question 16 13 4of5 8/23/10 4:00 PM SurveyMonkey - Survey Results http://www.surveymonkey.com/MySurvey _Responses.... 9. If you would like to join the Paper Nest mailing list, please enter your information here. State: 93.8% 15 ==:J 87.5% 14 ----l 100.0% 16 answered question 16 skipped question 13 ZIP/Postal Code: r---- Emall Address: SofS 8/23/10 4:00 PM _.~~---_._--~.,-~---,-"--~~----_.._- Bio I graduated from the University of Iowa with a BFA in Printmaking in 2000, then went back to school for the Center of the Book and received a graduate certificate in 2009. At the Center I took more classes then were required so I could become proficient with letterpress printing, handmade papermaking, and artist books. I have been printing for a little more than a decade, and have been working on art ever since I can remember. After graduating I had the opportunity to work for a year making handmade paper for the University of Iowa's Oakdale Paper Facility. During this time I was involved in production papermaking, as well learning about the integrity of paper and what effects different fibers, substrates and time have on paper. Since graduating in 2000 I have assisted or run workshops, and organized group printing projects. Throughout the past few years I have been actively apart of my community by helping establish the Ladies Typographic Union, which organizes yearly printing projects to raise money to donate back into the local bookbinding community. After graduating I have been working on getting the Paper Nest up and running. 10 Resume Elizabeth Munger 1105 Ginter Ave. Iowa City, IA 52240 Telephone: 319.358.0027 Email: liZ(fDp?pernestpress.com Education: Graduate Certificate - Book Arts University of Iowa Center for the Book, 2009 B.F.A.- Printmaking University of Iowa, 2000 Non-degree Coursework Intaglio II, Foil Workshop, Artist Book, Boxes & Enclosures University of Iowa, 2000 - 2006 Exhibitions and Appointments: 2010 Artist Book Speaker, Iowa City Book Festival, Iowa City, Iowa Twist Gallery, Joint show, Nashville, Tennessee Creatures Great and Small, Yeiser Art Center in Paducah, Kentucky 2009 Third Place Finalist, Elevator Pitch Competition, John Pappajohn Entrepreneurial Center (JPEC), University of Iowa, Iowa City, Iowa Special Collections, University of Iowa, Iowa City, Iowa Purchase Prize Award at BookOpolis, Asheville, North Carolina The Printed, The Bound, The Final, Graduate Show, Art Iowa City, Iowa City Creatures Great and Small, Murray State University, Kentucky 2008 Grad. Finalist for the 2008 CBAA student book award Dog-eared Exhibit, Purdue University, Indiana Bookopolis Book Arts show, Ashville, North Carolina 11 5th International Book & Paper Arts Triennial, Columbia College Center for Book & Paper Arts, Chicago, Illinois Penland School of Craft Work Study scholarship, Penland, North Carolina Center for the Book Fellowship, University of Iowa, Iowa City, Iowa Love + Misplacement Portfolio, University of Iowa Center for the Book, Iowa City, Iowa 2007 University of Iowa Center for the Book Show, R.S.V.P. Gallery Walk, Iowa City, Teaching Assistantship to Virginia Myers, summer foil-imaging workshop, University of Iowa Printmaking, Iowa City, Iowa Book and Paper Art by the faculty and students in the University of Iowa Center for the Book, Lowe Arts & Environmental Center. 2006 Classroom Assistant to Virginia Myers and TA's, summer foil-imaging workshop, Iowa City, Iowa University of Iowa Print making Scholarship for summer foil workshop, Iowa City, Iowa The Original Editioned Prints. Bound book of Artists working in foil. Edition size: 50 Foil imaging II. University of Iowa Printmaking, Iowa City, Iowa 2005 Foil imaging II Editioning. University of Iowa Printmaking, Iowa City, Iowa 2004 Foil imaging II. University of Iowa Printmaking, Iowa City, Iowa 2003 The Missing Piece; independent mixed media show of collage, textile work, found objects, wood blocks, artists' books and mail art, Iowa City, Iowa 2000 Foil imaging I. University of Iowa Printmaking, Iowa City, Iowa 12 Current and Past Employment 2009 -2010 Papermaker Oakdale Paper Facility Tim Barret, 319-335-4410 Iowa City, Iowa 2008-Present Assisted Living Facilitator Consumer Choice's Option Melinda Crane, 319-936-9276 Iowa City, Iowa 13 Letters of Recommendation Karen Kubby Jeanette Pilak 14 July 22, 2010 Elizabeth Munger The Paper Nest 1105 Ginter Avenue Iowa City, fA 52240 Dear Elizabeth: Thank you for your time today in introducing us to your venture, The Paper Nest and your business plan. it is exciting to see a graduate frc>l'n the UI Center For The Book bring their talent, knowledge, and experience to our community. Having a business that provides fine book art materials for printing and binding is a real treasure. I know the workshops you will offer are going to be very popular. ~. The Iowa City UNESCO City of Literature supports and develops literary culture and promotes reading and writing locally, regionally, nationally and internationally. We focus on two main areas, Educational Leadership and Creative Cultural Tourism. Your shop and the offerings you will provide there is exactly the kind of business that foster Creative Cultural Tourism - allowing our community and visitors to have authentic, hands-on engagement in all matters of book arts. When visitors go home, they will take with them not only a deeper understanding of book arts, but a treasured learning experience from having stopped at The Paper Nest. Please do let us know when the grand opening will be so that we may collaborate on bringing the conference bus tours, out of town visitors and local community folks to your venue. Additionally, we should look for the opportunity to host events at your location similar to the activities the local businesses did during the Iowa City Book Festival. Finally, you will want to mark your calendar that April 23 is the annual UNESCO World Book and Copyright Day, so that we may publicize how folks can partake in book arts at your business during that celebration. Thank you again for your time. We look forward to working with you. Sincerely, ~.~ ~~/ (/7'Vf~ltdK // Jeaflette Pilak ! / i //,.- ..._~_.... '\ i t ! I I Iowa City UNESCO City of UteratuT€ ! 123 S.linn Street I Iowa City, Iowa 52240 I I I I t I I I i PHONE: 319-356-5245 E-MP.lL: jea nette@iowacityofiiterature.org WEBS!TE: www.iowacityofiiterature.com -'I Kubby Gyrls, Inc dba Beadology Iowa 220 E. Washington Street Iowa City, Iowa 52240 info@beadologyiowa.com www.beadologyiowa.com 319.338.1566 FAX: 319.688.2847 City Council Economic Development Committee 410 E. Washington Street Iowa City, IA 52240 August 2, 2010 Economic Development Committee, This letter is in support of the application by Elizabeth Munger, sole proprietor of the PaperNest, for CDBG monies for economic development purposes. As part of Beadology Iowa's business plan, we are creating collaborative partnerships to increase retail businesses in downtown Iowa City. As we have a generous amount of space, we have been looking for a compatible business with which to collaborate and share our square footage. We are offering this space at our cost, which is well below fair market rent if a business were to lease this same amount of space independently. According to local commercial realtors, the cost per square foot goes up as you rent fewer overall square feet. The space we are offering the PaperN est would rent for three times as much if rented independently. We like to think of this space as retail incubator space within our store. One of our closer collaborations will be with the PaperNest. The PaperNest will be located in the back 600 square feet of what is now Beadology Iowa. This space is currently utilized for recycling and storage. A higher and better use of this space is retail activity. Besides shared space, we will also partner in some business services and marketing endeavors. For example, we have plans to partner in our underwriting of public radio, to more publically align our businesses. Another example is to cater to the bridal market by offering a package where a wedding party can print their own invitations with PaperNest and their wedding jewelry with us. Retailers in downtown Iowa City are working hard to maintain the Central Business District as a core commercial area of our community. This project will be another in a list of recent activities to spur retail success in our downtown. As the PaperNest grows its business, it may need to move to a larger venue. This will leave the proposed space in a very usable and attractive condition for another start up business to slide in and begin their business journey. Investing in this application will be helpful in the short and long term. I hope you will support this application. Kubby Gyrls, Ine dba Beadology Iowa 220 E. Washington Street Iowa City, Iowa 52240 info@beadologyiowa.eom www.beadologyiowa.eom 319.338.1566 FAX: 319.688.2847 In peace, v"....o..,." V,.,hh,u ~'1l...~"'.I-. ....'1l...ULlVJ the Paper Nest Business Expansion Plan Use of Proceeds Total Cost of Business Expansion Inventory Needs 2,305.00 Equipment Needs 7,572.53 Remodel Needs 5,055.67 6 mos Occupancy Cost 3,890.00 1 Yr Marketinq Needs 1,106.34 Subtotal Business Exoans;on: 19,929.54 Oct Bus Loan Repayment 430.46 Nov Bus Loan Repayment 430.45 Dec Bus Loan Repayment 430.46 Jan Bus Loan Repayment 430.45 Total Additional Exoenses: 1,721.82 Total Use of Proceeds: 21,651.36 Total Loan Amount Requested: 22,000.00 1 of 1 of Use of Proceeds .. * ~ ro ::T 01 < ro a. ~ 01 iD a. N 0 ..... ..... cr c ..... ::T 01 < ro 1Il 3 ~ -< 01 a. a. ro a. 01 ..... 0 ~ 0 ~ () n; 01 1Il ro ..... 0 ~ ro () ..... ro 1Il 0 1Il 01 ..." -. ..... -< ~ ro x n u 01 ro 1Il ~ ::T 1Il ..." ro 0 1Il ::; 01 ~ " a. -. 8. u ro ~. () ~ ro 0 ~ ~ ro 1Il a. ~ () 0 3 ro 0 ~ 0 c -. cr c a. 10 ~ 1Il ..." 5; () 01 1Il ::T ::!> 0 ::; ::; rt ::T 0 ~ a. ~ 01 :J 10 rt ::T ro -. ro ..... 5; N 0 ..... rv Ullll ~~ .... .... 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Q,J ~ _t1) Q,J (I) :::s (I) n m tO~ Ul l>> < ~ U) (5' tv~ 0:2 J-6l>> ......j flO tv o lad tv the Paper Nest Business Expansion Plan d d Inventory Current an Projecte Inventory for Resale Already Have on hand Materials quantity total cost resale value Paper 791 2,845.76 5,124.40 Printing Packs 61 819.23 2,135.00 Letterpress Packs 21 254.10 672.00 Assundry small tools 10 173.00 513.00 Reusable Baas 35 183.75 700.00 Subtotal on hand: 4,275.84 9,144.40 Need to Purchase Paper 600 1,500.00 3,000.00 Assundrv small tools consia nment consianment consianment Subtotal need to Purchase: 1,500.00 3,000,00 Inventory for production Already Have on hand Materials quantity total value resale value Ink 150.00 150.00 Flat Files 2 used 200.00 Subtotal on hand: 350.00 150.00 Need to purchase Materials Paper 200 253.00 253.00 Ink 12 302.00 302.00 Supplies Assundry small tools 75.00 Solvents and Cleaners 75.00 Packaaina 100.00 Subtotal need to Durchase: 805.00 555.00 Total Inventory on hand: 4,625.84 9,294.40 Total Inventory needed: 2,305.00 3,555.00 1 of 1 of Inventory List the Paper Nest Business Expansion Plan '\ E tC t d p t d qUlpmen urren an ro]ec e Equipment I already own Cost/Value Production Equipment Vandercook Proofing Press 1,500.00 Paper Cutter (44" x 34")used 775.00 Guillotine 224.49 Nipping Press 200.00 Triumph Guillotine 500.00 Standard Boxcar Base 575.00 Subtotal 3.774.49 Office Equipment MacBook 2009 1,652.00 Adobe Suite 299.95 Microsoft Office 150.00 Quick Books 200.00 HP 3 in one Printer/fax/scanner/copier 129.95 ink 64.63 PaDer 8.99 Subtotal 2,505.52 Total Equipment lawn: 6,280.01 Equipment I need to purchase Cost/Value Production Equipment Floor Mat 74.00 Flammable Cabinet & Waste Can 548.00 Fans 99.00 Shipping & Handling 57.04 Printing Table 297.82 Drying Rack 579.00 lighting 81. 99 Shipping & Handling 87.00 Kluge Press 600.00 Rollers & misc. press needs 687.50 Shipping and Handling 44.48 Boxcar Deep Relief Base 9"x12" - 285.00 285.00 Shipping & Handling 20.00 Custom Flat Files 1,400.00 MBM KutTrimmer 1046 Paper Cutter - 20" x 14" - 370.71 370.71 Work Table 684.00 ShiDoina & Handlina 105.00 Subtota I 6 020.54 Office Equipment Consulting Table and Chairs 836.00 Display Cases/ Shelves 396.00 Shipping & Handling 150.00 File Cabinet 169.99 Subtotal 1,551.99 Total Equipment and Supplies I need: 7,572.53 1 of 1 of Equipment Cost ~ ~ " ~ 1W1 OJ :::I >< .... fA S':?E!:!!C': .....OJC1l~ 0\1- W(I) ~l\ ....... o -n ....... o --.. m (f) ,....,. ,... ro IT " -.: . :3 ~ DI .... 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UI ' ~ ........ w..............w......-...J 0 UI ......WV1W\oN . l11V1WW~l11 31 0\ . . . . . . ...... ooowwo n ooow~o tD nl"'t' :r o tD ~'tI o Q,J ""h-g ;;0""1 CD Z 3 m o I"'t' Q.~ CD c: ~ -. ::s tD (Ii ~ m >< "C Q,J ::s ~ -. o ::s 'tJ - Q,J ::s ~ the Paper Nest Business Expansion Plan M k C t d p t" ar etlnQ urren an ro]ec Ions Marketing I Have Already Purchased Newspaper Ad Duration Cost New Pi Catalyst 1 year 373.00 Radio Underwriting KRUI 1/2 year 140.00 Total Purchased: 513.00 Marketing I Need to Purchase Newspaper Duration Annual cost Little Village 1yr 165.00 The Daily Iowan 1yr 160.00 Radio Underwriting KRUI 1 yr 280.00 Website programmer/ Designer 1 yr 400.00 Host 1 yr 60.00 Domain Name (2 years) 2 yrs 41.34 Total Needed: 1,106.34 1 of 1 of Marketing Budget ._<-- ,..,.--"..........,,-~~.> INITIAL REVIEW OF MISS MANNERS SCHOOL FOR DOGS llC WORKING CAPITAL Business Proposed: Applicant, Adrienne Vevera, requests funds to establish a dog daycare and obedience center in Iowa City. The business offers dog day care, boarding and classes for potty training and behavior. The applicant has 4 years of experience with the daily running of a dog daycare. The applicant plans to hire a full time trainer/assistant manager within the first year of operation. She will need to hire five part time assistants to open the business. The owner requests $35,000 for working capital. The business will create employment where 51 % of the FTE equivalent positions are held or made available to low-to-moderate income persons. As such, the business meets the job creation criteria under the CDBG program. Budget & Private Financial Contribution The applicant has applied for a SBA loan through Liberty Bank. After discussions with the lender, the bank is considering a $40,000 loan contingent upon CDBG financing. If the commercial loan is approved, the bank's loan will be secured though a lien on all business assets. The bank is unable to increase the loan due a collateral shortfall. To have enough funds to start and operate the business, applicant requires an additional $35,000 for start up and operating costs for the first three months. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and the business will lease a building at 1506 Highway 1 West. The property is zoned Intensive Commercial (CI1). CITY STEPS encourages employment training. All positions offered will not require previous training or experience except the trainer position. The trainer position will require some previous experience; however no advanced degrees will be required. Quality of Jobs The owner will be paid as a salaried position. The trainer will make approximately $11/hour once hired. Part time assistants will earn $7.25-8.00 per hour. No experience or advanced degrees will be required for these part-time positions with training provided in-house. Economic Impact The proposed CDBG funds will provide a small business with access to low interest working capital and enable them to secure the majority of their needed financing through a commercial lender. Liberty Bank's loan is contingent upon CDBG financing. Environmental/Community Involvement The business has plans to sponsor or volunteer for events supporting canine health and recreation. Staff recommendation: The owner has been working with SCORE and other professionals to develop the business plan and financial projections. The lender stated the application is very thorough and well done. The lender has not provided formal acceptance of the SBA loan yet and is still considering approval. The lender will not fund the business without CDBG financing in order to ensure sufficient cash flow for the business. Staff recommends $35,000 for working capital with a maximum term of 7 years at 1 % interest contingent upon the applicant securing a SBA loan for the $40,000. Staff recommends as a condition of the award the business is evaluated by the Small Business Development Center. Any technical assistance necessary would be based on an evaluation by the Small Business Development Center. The required technical assistance must be received prior to the final request for CDBG funds. The applicant must also obtain a state license for boarding and grooming (if provided) and must obtain a permit from the City (requires consultation with the Animal Shelter staff). For partial security, staff recommends a lien on the applicant's personal vehicle in addition to a UCC statement for all business assets. The commercial lender will have the first lien on all business assets. September 2010 o ,--1 -J ,~( r 8 ~~ 0 ~:r .j) \.t. ~ I ~ s:' '~ ? '{ <::.. '.~ 5 ~ '">.l 3 ,~ .J) I' l." ~ ~ (J -' ~ ~ ~ ~ \,- p:: . E~l o ~ J16 d V)VJ m l:ti 1 <~ -> u ';.V -t" ~ ~ ~ \~ ~ - E'__ ,.^t Iowa City COSO Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual Adrienne Vevera Home Address 2319 Friendship St Iowa City, IA 52245 Name of Applicant Business Miss Manners School for Dogs, LLC Full Street Address of Business 1506 Highway 1 West Iowa City IA 52246 Phone Number & Email Address 319 430-4587 atboose@msn.eom DUNS Number (If awarded funds, applicant must obtain a DUNS number): Type of Business Dog Daycare/Obedience center Date Business Established To Open Oct 2010 Bank of Business Account and Address (if applicable): NOTE: The City will not provide assistance in situations where it is determined that any repre- sentation, 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: These funds will be used in conjunction with a bank loan to remodel the leased property, purchase necessary opening/operating supplies, and pay operating costs for at least the first three months. I will have to hire a professional contractor/remodeling company to install some interior walls and privacy fence on the north side of the building. While I will be working as the manager, I will need to hire 3-5 part time employees to start, adding employees as business increases. When at full capacity, I will need 4-5 employees during each shift (between 15-25 total employees depending on availability), which I anticipate reaching within 2 years. 1.2. Provide a brief history of your company: Miss Manners School for Dogs (MMS4D) is a new business, with a unique and new concept. Based on traditional dog daycare, MMS4D will combine fun playtime with learning and practicing proper behavior, ultimately leading to a better behaved canine family member. 1.3. Describe the organizational structure of the business: MMS4D will be lead by a manager (myself for the first few years). We will have a full time head trainer, and many part time "teachers". When business gets steady enough, we may add a full time assistant manager. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name & Positionffitle Complete Address % Owned Adrienne Vevera 2319 Friendship 8t 100 Owner/Manager Iowa City, IA 52245 Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. 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 Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to Activity the nearest hundreds) Land acquisition $ 12,550 New Construction/Expansion Repair $ 15,000 Acquisition and/or Repair of Machinery $ and Equipment Inventory Purchase $ 1,000 Working Capital (including accounts $ 46,450 payable) Acquisition of Existing Business $ All Other (provide description) $ Total Loan Requested (All Sources): $ 75,000 2.2. Terms of Proposed Financing (Sources) Monthly Proposed Financing Amount Payment Type(1) Rate Tenn Financial Institution : Liberty Bank _ $ 40,000 -$800 Direct Loan 119 2nd St Suite 100, Coralville IA_ (SBA) Financial Institution : $ Other: $ Iowa City CDBG Economic Dev. Fund $ 35,000 -$500 Direct 1% 7 years Loan TOTAL: $75,000 $1300 (1)For example: forgivable loan, direct loan, or grant. 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. If awarded, this assistance will be used in conjunction with a bank loan to open and begin operations for MMS4D. Being a young adult, not long out of college and trying to make house payments and general living expenses, I do not have a lot of savings. The financial assistance from the city will allow me to complete construction and secure a loan from a traditional bank for operating costs. 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. Owner will contribute $1000 cash, a lap top computer, a washer and dryer, many blankets for use in kennels, and several pieces used office furniture (desk, reception counter, storage units) at the opening of the business. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: Ann Tompkins and Tom Jepsen of SCORE provided valuable information and advice to help me to this point. Bob Saunders of Advanced Insurance Associates has contacted other companies and lined up all necessary insurance for my needs. I have also met with Chris McDonnell at American Bank and Trust to discuss a bank loan. 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 ~L Personal Guarantee o Surety Bonds ~ 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. 2.7 If the City did not provide financial assistance, could the project proceed? Without the financial assistance of the CDBG, the business would not be able to open for several years. 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. 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. N/A 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 Categoty Definitions) No. Hours Hourly # of Jobs # of Jobs Per Week Rate of Pay Fringe Created Retained Type of Job Per Position Benefits* 2 2 Officials & Managers 40 $10-15 See attached Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) Operatives (semi-skilled) Laborers (unskilled) 7-10 7-10 Service Workers 15-20 $7.25-8 *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? -$67,000 for the first year of operation. 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: N/A Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? Dog daycares Lucky Pawz and Just Dogs Playcare would be my direct competition, and obedience centers (such as Spot and Co) would be indirect competition. 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. MMS4D will recycle cardboard and paper products (mall and used printer paper), as well as any aluminum cans and glass or plastic bottles/jars. 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. MMS4D will be involved in the community via dog related activities (sponsorship/volunteer for Dog Paddle and Paws in the Park) as well as trying to educate citizens about proper dog care. We will have canine health and care information available at our school, as well as on our website (customers will receive this information in the monthly report cards as well). We also hope to hold fund raising events (wine tasting, raftles, ete) where proceeds will be presented to the Friends of the Animal Center Foundation. 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). N/A 5.3 Has the company or any officer of your company been involved in bankruptcy or insolvency proceedings during the past 7 years from the date of this application? If so, provide the details. N/A 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. N/A Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [] Business plan (if start-up business) [] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) [] Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [] 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 [] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) [] Please provide the social security numbers for all the persons listed under Management (Question #1.4) [] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. [] 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. 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 cheeks, 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 repre- sentations, 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 applica"" nt,j.s a P,~O, r or general partner, sign below. /~/ e' /.",...". ,/' By;., ,/":~ /.(: / ~ Date: C(--/-JD / If applicant is a Corporation, sign below: Corporate Name and Seal Date By: Signature of President Attested by: Signature of Corporate Secretary Miss Manners School for Dogs, LLC Come. Stay. Play! 1506 Highway 1 West Iowa City, IA 319430-4587 Statement of Purpose The fundamental goal of this facility and program is to improve the lives of our customers by strengthening the bond with their dog(s), and increasing their overall knowledge and understanding of dogs and dog behavior. Working with the dogs during the day (while mom and dad are at work), we will be teaching what behavior is acceptable and expected through structured activities and games. By attending the school regularly, the students (dogs) get to practice good behavior, as well as learning new and challenging tricks/skills. We will work closely with each client, teaching them how to achieve the same results at home and in any other social situation. Miss Manners School for Dogs (MMS4D) is a facility that will exercise and challenge each canine student both mentally and physically. We will create games and activities aimed at teaching each student a certain skill or manner (no jumping, no biting, give/take, controlled barking, etc), so they are having fun while practicing proper behavior. For clients who desire a customized program geared at working on specific or difficult issues, we will offer ELP (Extended Learning Program) along with normal school activities. When utilizing this program, the student will be taken from normal class time to work one-on-one with the head trainer. After a day of daycare, a dog is physically exhausted; they have been running, playing, and moving all day. The positive result to the dog owner is a quiet night at home, with their dog laying peacefully at their feet while they watch TV, work on the computer, or do other activities (as opposed to constantly "bugging" them, demanding attention and wanting to play). This effect lasts from one evening to two days before the dog is rested up and "back to normal". While this environment is great for dogs to socialize and play, it is generally groups of dogs engaging in supervised "free-play" all day; there is very little structure to the activities/day. Through the unique program offered at MMS4D, the dog(s) will exert all this physical energy playing and running, but s/he will also be practicing skills and manners that will overlap into home life as well. The owner will see the physically tired dog after attending a full day of school, but they will also notice the increased compliance with obedience commands and improved social behaviors any and every day. -2- Miss Manners School for Dogs Table of Contents The First of Its Kind... ............ .................. ............ ............... ..................... ................. ............... ......... .....4 What We Offer............ ......... .............................................................................. ...... ............... ..............4 The Market: A Dog Friendly Comm un ity. ...... ............ ......... .................. ...... ............... ......... ............... 6 Location...................................................................................................... ............................................7 The Competition: Direct Competition.. ..... .... ............ ......... ...... ............... ............... ............ ......... .....8 Indirect Competition ............ no ............ ....... ............... ...... ...... .................. ............. .10 Ou r Com pet itive Edge....................................... no............ no............................................................... .11 Man agement.................................................................................................................................... ... .13 Personnel...... ......... ... ... ... .............. ........ ......... ............ .... ................ ... .............. ......... ... ...... ...... .14 .......3....... Miss Manners School for Dogs The First of Its Kind Miss Manners School for Dogs (MMS4D) is a facility that will offer a safe and loving environment that combines the fun and socialization of dog daycare with the positive behavior modification of regular obedience practice. We are a limited liability Company (llC) that will be opening on the Westside of Iowa City, Iowa in August or September of 2010. While there are presently 4 dog daycares in the Iowa City /Cedar Rapids area, there is not currently a facility that combines these two services in the way MMS4D will. With the high quality of service provided by our well trained staff, and the individualized treatment customers will experience, we will develop a broad and loyal cfient base, who will eagerly share their positive experience with others. By combining times for recess (free play time), rest and relaxation, group lessons, and individual time with the head trainer, we will both physically and mentally challenge the dog throughout the day, leading to more obedient canine family members. Customers will notice their dogs are calmer, less destructive, and have better general manners/behavior. Students will also interact better with other dogs and people within the community, having learned the necessary skills and manners for such situations. The school will provide education to our human clients through presentations/demonstrations at the school, monthly progress report cards that contain general dog health and care information as well as individual reports on their own dog, and information regarding dog health and care in print at the school and on our website. What we offer MMS4D will offer several options to our customers in terms of type of service and frequency of use. Our primary program offers segments of time for the dogs to freely socialize and play, to rest and relax, and to learn new skills and practice good manners in many everyday situations. Full Days of School -available at per-day price, or in packages of 5, 10, or 20 days -open 6:30am-6:00pm Half Days of School -available at per-day price, or in packages of 5, 10, or 20 days - Morning (6:30 am -12:30pm) or Afternoon (12 :00pm-6:00pm) ELP (Extra Learning Program-will be added -one-on-one time with the head trainer once a head trainer is hired) -head trainer works to customize plan for each dog/client Puppy Program -designed to help with potty training efforts -teach basic puppy manners -broken into smaller segments of learning, with more play, rest and regular potty breaks -4- Boarding -dogs enjoy full school schedule during the day -10 spacious kennels will provide for up to 3 dogs of the same family to stay together -extra kennels will be brought in during peak holiday boarding times Additional services (these will be added after -baths the base program is established) -nail trims -seasonal boarding -express drop-off/pick-up -in-home tutoring Progress Reports -each student will receive a progress report once a month -report will include info on skills learned/practiced, games played, and "homework" ideas -report will include general dog care and health information As the school establishes itself and forms a solid base of regular customers, MMS4D will begin to offer other services aimed at making the lives of customers more convenient, such as nail trims, baths, express drop off/pick up, over night boarding, and in-home tutoring. The school will create progress reports for each student, enabling owners to follow the behaviors and skills their dog(s) have been learning, what they are doing well, what they could work on at home, and other general dog care information. This allows the clients to be more involved in and informed of what their dog is doing during the day, and is not currently offered by any other facility in the area. -5- The Market: A Dog Friendly Community The total potential market for this business is the approximately "'20,900 dog owning households in the Iowa City/Coralville area (Number of dog-owning households = .372 x total number of households!). The typical customer of MMS4D will be a middle age resident of the Iowa City/Coralville/North Liberty area, with at least a bachelors degree, in a dual-income household making (combined) $50,000+ per year. They will be 30 years old or greater, working standard hours (7am-6pm), with fairly active lifestyles, leading to the canine family members spending much of their days and evenings alone. By uniquely combining the fun and social dog daycare setting with obedience lessons and practice, we will be able to attract people from both markets (dog daycares and obedience centers). Being the first facility to offer obedience training/practice during the day, we will attract customers who struggle to complete traditional obedience classes. For many busy dog- owing families, committing to six or eight one-hour long evening classes is difficult; many drop out after missing one class. This market segment will find it much more convenient to drop their dog off at school before work and pick them up after, knowing they were learning and practicing skills during the day (while having a great time and wearing themselves out). While we will have to work with the customers in order to have the behavior/skills transfer to their home life, this can be done in 5-10 minute sessions when they drop off and/or pick up their pet. We also hope to cater our services to the senior dog-owning population that is not able to exercise/socialize their dogs as much as they would like. We may offer to do home pick- up/drop-off for this select demographic, depending on demand and cost, Total U.S. Pet Industry Expenditures Year Billion 2008 $43.4 Est. 2007 $41.2 2006 $38.5 2005 $36.3 2004 $34.4 . 2003 $32.4 2002 $29.5 2001 $28.5 1998 $23 The Iowa City/Coralville area currently has 2 dog daycares, 20 dog boarding facilities, 12 dog grooming businesses, several dog supply stores, and two off-leash dog parks. The community is heading in a more dog-friendly direction, understanding that dogs are now family members, and area residents seek businesses and services that enhance their relationship with and enjoyment of their dog(s). The pet industry in this area continues to grow, mirroring the 1 http://www .avma .orgf reference/marketstats/ ownership.asp -6- nationwide trend. As the chart shows, the U.S. Pet Industry has almost doubled in the last 10 years, growing an average of $2.1 billion each year, with little signs of slowing down. Location MMS4D will need to be located in town, so it can be convenient for clients to drop their dogs off before they head to work, and pick them up afterwards. The building needs to meet space requirements inside, and have ample area outside for a 6 foot high wooden fence surrounding play/potty areas for the dogs. The building located at 1506 Highway 1 West in Iowa City has ample space inside (7000 square feet) to accommodate up to six groups (90 dogs), construction of many permanent kennels as well as holding some temporary kennels during peak boarding season. The lot is quite spacious, allowing for a large area behind the building to be fenced off and filled with pea-gravel as a bathroom for the dogs. Being located on Highway 1 will provide great visibility to potential customers, while being easy and convenient for drop off before/after work. My customers will be able to access this location easily and fairly quickly from anywhere in town, as well as when traveling into Iowa City for the day. --7-- The Com petition There are currently 2 dog daycares in Iowa City/Coralville (Lucky Pawz and Just Dogs Playcare), and two in Cedar Rapids/Hiawatha (The Dog Zone and Camp Bow Wow). All four of these facilities offer daycare and boarding (The Dog Zone offers boarding on a limited basis), and all except Camp Bow Wow currently offer traditional obedience classes. The Dog Zone Camp Bow Wow Daycare Boarding Baths Miss Manners Lucky Pawz "-_..._,_._._'--~-~-,-,,-" Just Dogs A Closer Look Direct Competitors: Dog Daycares lucky Pawz: This facility opened in July of 2003 on the south side of Iowa City (Stevens Dr, off Gilbert St south of Hwy 6). They require all dogs to complete an application and short screening, and provide proof of vaccinations to attend. While there, the dogs are put into groups of 15 based on activity level and size, and are supervised while playing/interacting with the other dogs. The dogs have access to outdoor fenced areas throughout the day, and are allowed to go in or out as they please. Lucky Pawz can currently house 105 daycare dogs, and has 42 kennels for boarding. Through donations to Johnson County Dog Park Action Committee, they were able to name the main play area at the Thornberry Off-Leash Dog Park (Lucky Pawz Playground), and have used yearly newspaper advertising, yet word-of-mouth has been their most productive form of advertising. Just Dogs Playcare: This facility opened the same summer as Lucky Pawz, and was located in a development where the Marriott now sits in Coralville. When forced to move from there, they built a facility on the far west side of Coralville, off of Highway 6 (Past Lowe's, toward Tiffin). They offer daycare for dogs during the day (Mon-Sun) as well as year-round boarding for daycare clients, baths, dog massage, nail trims, hair de-matting, anal gland expression, herbal wraps, tooth brushing, as well as ear and eye cleaning. They require all dogs to complete an application and screening, and provide proof of vaccinations to attend. The dogs are in groups, and are only allowed outside during certain times. The dogs are routinely put in crates/cages during the day for different reasons, including before/after going outside, nap time, and before going home. They offer obedience classes (one hour, once a week for 6 weeks) for puppy kindergarten, basic obedience and private training. They also offer classes (one hour, once a -8- week for 4 weeks) for "doggie issue" training and beginners agility for fun. Just Dogs can currently house 70 dogs per day, and has a sizeable number of kennels for boarding, yet has to put many customers on waiting lists for each and every holiday. The Dog Zone: This facility is located in the north-east section of Cedar Rapids, just off Blairs Ferry road and a few blocks east of 1-380. They are the longest-standing dog daycare, having been open since 2001; during that time they opened and then closed a second location in Cedar Rapids. The owners are Dawn and Dick Walton, and Dawn has been training dogs for over 20 years. The facility is fairly small in size, employing less than 8 people, and new customers sometimes have to wait to attend daycare after passing their assessment test. This daycare offers supervised play all day, except for the hour and a half for "nap time". They offer a puppy potty-training assistance program, traditional obedience classes, nail trims, and slumber parties (but not traditional boarding). Due to their location (being over 30 miles away), I do not feel they will be direct competition, since they have a different client base in Cedar Rapids. Camp Bow Wow: This is a daycare located in Hiawatha (just north of Cedar Rapids). It is a franchise business, being a name that is known throughout the country. Being a franchise, they have a pre-set way of operating that is mostly dictated by the home offices in Colorado. The facility offers daycare, boarding, baths, and nail trims. Due to their location (being over 30 miles away), I do not feel they will be direct competition, since they have a different client base in Cedar Rapids. Indirect Competition: Obedience Schools Spot and co: This obedience center is located on the south side of Iowa City at 123 Stevens Dr (off Gilbert St, south of Hwy 6). Sue Pearson is the owner and head trainer, having trained dogs for 20+ years. She holds traditional obedience classes for puppy kindergarten, basic obedience and agility training, in six week chunks for around $120. Sue Pearson believes in positive reinforcement training, meaning a treat is given when the desired act is performed, and all other (negative or bad) behavior is ignored. This is the most well known obedience center in Iowa City, and is used by Iowa City Animal Control for some of their dogs for learning obedience. -9- ~_.,,"_,^,.._.>.,~.._~",..""'_.~'~' __ ___,_"__,."_.~__",~,__.~.,,,_,.._,.,",_.~_~_..~._~___.~___,~,__~_~>",__~""~,_,_,,,'~'^ ,~,_~._,,",_~,_,___'''''~_'''_____'_'''__'_'_~__'_~_'_'_____'__o_,_~'_<'_'._~.._.,'_" Miss Manners Lucky Pawz Just Dogs Playcare The Dog Zone Camp Bow Wow Strengths -combination of daycare environment with obedience lessons -highly motivated and caring staff -individualized treatment/care for dogs and clients -structured activities throughout the day, changing regularly -daily photo updates on website -low cost -centralized location -daily photo updates on website -variety of services offered -newly constructed facility -owner has 20 years experience training dogs -nationally recognizable name -webcarn Weaknesses -Cost will be higher than other daycares -small number of kennels available for boarding during peak times -high turnover in staff, little training -free playtime all day, just physical exhaustion -moderate cost -pricing scheme is confusing -facility is hard to find -dogs are kenneled at different times during the day -has set photos on websitethat are changed occasionally -located in Cedar Rapids -smaller sized daycare, many times new customers have to wait to join -no photos on website -located in far-north Cedar Rapids/Hiawatha -has to follow parent- company guidelines/rules -not many services offered -10 - Price per day (full/half) 30/20 23/15 27/17 23/18 25 (full only) Our Competitive Edge MMS4D will be a different experience than what is currently offered in the area for many reasons. These key differences will set us apart from the competition, and allow us to create a niche in the local dog community. Service offered: No other facility around offers the combination of training and daycare that MMS4D will offer. The dogs will be better behaved because ofthe training and practice, and at the same time tired, happy, well-socialized family and community members. We also will provide progress reports for clients, so they can stay informed of what activities we do and what skills we are teaching. Each individual dog will be continually evaluated to track their skills and what they have learned, and we will provide tips for success at home and IIhomework". Additional services will be available for our customers' convenience after the base school program is established and running smoothly. These services will include baths, nail trims, express drop-off and pick-up, the Extra Learning Program (ELP), and seasonal boarding. Daily Schedule of Activities: MMS4D will have a daily schedule of activities, which will be unique to our facility. The schedule will be as follows: 6:3()"'9am: Drop-Off, recess (free play time) 9am-12pm: Class Time (ELP students will meet with trainers during this time) 12pm-lpm: Relaxation Time (quiet time) lpm-4pm: Class Time (ELP students will meet with trainers during this time) 4pm-6pm: Recess, Pick Up Having a set schedule will allow clients to know what their dogs are doing during the day, and how their time is spent. We will also try to inform our customers about what types of skills we will be working on weekly, so they can schedule their school days around what they want their dog(s) to work on. Quality Staff (well trained, knowledgeable, professional, experienced): Each employee at MMS4D will be trained by the owner/manager and the head trainer. All the employees will be continually evaluated and coached to maximize behavior modification in the dogs. There will be set rules that will be followed regarding training techniques, and acceptable human and canine behavior. The employees will get to know the dogs very well, and help in providing the individual attention we promise to each customer. We will be looking for people who love dogs, and understand our methods and philosophies; they will help not only train the dogs, but to build and sustain positive relationships with our customers. In turn, the business will treat its employees with respect, and value the contributions they bring to the school. Benefits offered will be considered on a case-by-case basis, including bonuses, paid training (pet CPR), profit sharing, and an opportunity to help shape the future of the company. Employee input and ideas will be encouraged, and may be rewarded. This high quality staff will be noticed and appreciated by our customers, and this is one of the biggest factors in repeat business for this market/service. -11- Personal Attention/Individual Experience: We will work to form meaningful relationships with our clients and their pets. By speaking with the owners regularly and spending time with the dog(s) during different activities, we can offer a very personal and individual experience to our customers. It is our goal to get to know the dogs and people, in order to be able to best help them with behavior issues. We want to improve our clients' relationships with their canine family members by helping drain excessive energy and helping create a balanced, well- mannered state. Our clients will appreciate the time and attention given to each dog, and see the positive results from such individualized care. If using our ELP service, each dog will be evaluated by the head trainer, and they will cater one-on-one training sessions to maximize that dogs' learning. Website: In the hectic life of our customers, convenience is key. Our website will contain loads of helpful and useful information about general dog health and care, as well as season-specific care information. We will post daily photos of the dogs in periods of play, rest, and class time (currently only lucky Pawz offers daily photo updates, and that is a very popular feature for them). This allows customers to get online and "show-off" their dogs picture, while also advertising for MMS4D. We will give our customers the choice of receiving their dogs' progress report card via e-mail, rather than getting a paper copy. This will not only reduce paper waste, but can be promoted as a "green" alternative, as well as acknowledging that e-mail is a preferred method of communication for today's busy dog owners. We want our customers to feel very involved in their dogs' progress, so we will be available via e-mail or phone to answer questions or give advice. "" 12 "" - -- '-,.,----....,-.......-"....,"~--,~,-..._-,,~--,,- Management Owner/Manager Adrienne Vevera: Through my experiences working for several small pizza businesses (The Wedge and Zoey's Pizzeria), a child daycare (Open Arms Childcare), a wine distribution company (Okoboji Wines), and a dog daycare (Lucky Pawz), I have gained over 10 years of experience working for small, locally owned businesses in the Iowa City area. This gives me insight to some of the challenges that face a small business today, as well as experiences with several management styles. I have practical experience with the daily running of a dog daycare, having been the assistant manager of a local daycare facility for almost 4 years (I was a part-time dog handler for a year before that, while earning my degree from the University of Iowa). While employed there I gained valuable experience interacting both with the dogs and clients. I discovered a talent for relating to and connecting with dog owners, able to understand their passion for their dog(s) and give advice to enhance their relationships with their canine family members. My responsibilities at the daycare included managing up to 7 people at a time (15 per day), assisting customers on the phone and in person, updating the website daily, supervising groups of up to 20+ dogs at one time (facility of over 100 dogs), handling all canine and human first aid (including deeming whether medical treatment was necessary), employee schedules (25 employees), dog boarding arrangements/care (feeding, cleaning, etc), discussing dog health and well-being with clients (including behavior, physical heath, injuries or expulsion from facility), creating and updating documents (client application, employee handbook, dog care sheets, etc), as well as being on-call at all times to the owners, manager, and employees. I have formed a network of experts to advise me along the way, including my SCORE counselors Anne Tompkins and Tom Jepson, Barbra Waldare of Doggie View Dog Daycare Consulting Company, and Bob Saunders of Advanced Insurance Services. I have also spoken with other small business owners in the area, to try to fully understand the many challenges that face a small business in Iowa City. "" 13 "" Personnel The success of MMS40 will be directly related to the quality of staff we are able to assemble. Because our employees will be working with the dogs and the clients, they must be knowledgeable about dogs/dog behavior, as well as be sensitive to customers when problems/situations arise. The number of people needed is directly related to how many dogs we have at the facility (as per the state law, no more than 15 dogs per group/person), so as our client base and daily attendance grows, we will need to add more employees. We will start with 3-5 employees (depending on their availability, job will be listed as part time 12-20 hours/week), and will try to look/think ahead so as to hire people and train them as they are needed. Every employee will be trained by the manager and head trainer. There will be at least a week of training before an employee is left alone to supervise or work with a group. I anticipate having mainly college age employees, as their schedules tend to be flexible, and many are excited to be able to work with dogs. This makes wage less of a factor when looking for quality, dedicated employees. MMS40 will start with only a full time manager; all other employees will be part time. We will be looking for a head trainer, but will take our time to be sure we find the right person for our program; I anticipate offering the ELP program a year after opening. As the business grows, the need may develop for additional full time employees as other trainers or office managers, however this would not be necessary for quite a while. -14- N I"- m 00 M 0 m lO N N I"- M lO 00 N" lO" 00 m m """ N M 'i/). 'i/). 'i/). M m lO M CY') 0 m l"- N N 0 0 0 .. .. ..0- 00 CY') m """ U'l N N 'i/). 'i/). 'i/). 0 0 U'l M 0 I"- 00 N 0 l"- I'-- m 0" f' I"- m rl 'i/). 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C .... 0 ;::) E "E 0 '0 0) E 9 "0 >- <( C ~ Q. ~ lii::E: 5 ...I 0. en = <( '0 <( 'ii) lS"'I-CO 0 C f) 0 'C ...I Q. ~I-I- 0.<( ::J C'JlD C I- ~ ", 0 ;::) t\l 0 co Eoen.3l-o 2319 Friendship Street Iowa City, IA 52245; 319.430.4587; atboose@msn.com ss# 479-02-0733 Adrienne Vevera Objective: To create and manage a successful program that improves customers' relationships with their dogs. Education Bachelor of Arts Degree University of Iowa Iowa City, IA Major: literature, Science and Arts (Dee 2004) Experience January 2005 - November 2008 lUcky Pawz Dog Daycare & Boarding llC Iowa City, IA Assistant Manager -Interview and hiring process; screen applications to determine eligibility of candidates, arrange and conduct interviews, complete background checks, process new employee forms, train new-hires. -Manage up to twelve employees per day, including scheduling, task lists, discipline, and on-going training. On-call at all times to employees, management, and owners. -Website maintenance, updating information and photography daily. -Development of internal business documents; employee evaluation forms, injury reports, employee handbook, write-up forms, client application and screening process, instructions for operation of cash register and website, established job descriptions that are now held as company standard. January 2004 - January 2005 lUcky Pawz Dog Daycare & Boarding llC Iowa City, IA Dog Handler -Customer Service; answered phone calls, received and checked-out dogs, operated cash register, handled customer concerns, answered questions. -Supervised groups of 15 dogs. Reviewed boarding intake sheets to verify accuracy in care. -Ensured adherence to Animal Welfare license provided by the Department of Agriculture and land Stewardship. May 1999 - April 2003 The Wedge Pizzeria Iowa City/Coralville, IA Daytime Store Manager -Opened and closed store, counted till, completed deposit slips. -Ordered stock and directed employees for local errands. -Managed delivery drivers, reported directly to store owner. Volunteer Experience Johnson County Dog Park Action Committee (JCDogPAC) Board Member Dec 07-Dee 09 -Attended monthly meetings that were focused on how to further the community's benefit from dog parks. -Organized and directed non-profit Spring fundraising event 08 and Dog Paddle 09; coordinated with City Parks & Recreation Dept. for location and scheduling of event, met with local businesses to arrange purchases and contributions, prepared and distributed announcements, received registrations and donations, handled all participant and volunteer communications. Manager Customer Service: -know all MMS4D prices and policies -answer phones -Open or close shift -Conduct Screenings -Assist customers at the front counter -take dogs to car and retrieve them from car via leash -update website Employees: -write weekly schedule -interview, hire, train new employees -handle disputes between employees timely and fairly -motivate employees to take pride in their job, and encourage free expression of ideas -ensure proper supplies are available for employees needs (paper products, water, etc) -ensure employees are aware of and adhering to rules set forth by school -monitor and evaluate employee behavior and performance; schedule/conduct yearly reviews and determine if/what raises are warranted Dogs: -Conduct and supervise class activities/lessons -ensure dogs are aware of and complying with rules set forth by school -administer medication and basic first aid as needed -conduct screenings -maintain controlled environment -Create report cards, including specific info about each dog "Parents" : -discuss students daily behavior and lessons with dog owners (parents) -be friendly and courteous; always represent a positive image of MMS4D -collect payments -inform parents of problem behavior or injuries sustained/treatment given Mise: -light maintenance -clean up dog poop -shovel outside in snow/mow in summer (if applicable) -clean/squeegee floors/vacuum/sweep/mop -general cleaning Head Trainer Customer Service: -know all MMS4D prices and policies -answer phones -open or close shift -conduct Screenings -assist customers at the front counter -take dogs to car and retrieve them from car via leash -update website Employees: -assist to interview new employees -train all employees on proper obedience training techniques and philosophy -ensure employees are aware of and adhering to rules set forth by school Dogs: -design class lessons and activities, with proper technique and purpose of activity -remain up-to-date on current methods of training, continually update and change activity plans -conduct ElP sessions, one-on-one with the individual dog to improve specific behaviors -conduct and supervise class activities/lessons -ensure dogs are aware of and complying with rules set forth by school -administer medication and basic first aid as needed -conduct screenings/evaluate all dogs both one-on-one and in group -maintain controlled environment -create report cards, including specific info about each dog "Parents" : -communicate regularly to understand what dog owner wants results to be (what desired behavior or stop un-desirable behavior) and work toward that end -help to explain to and show dog owners how to act/what to do to get positive results at home -discuss students daily behavior and lessons with dog owners (parents) -be friendly and courteous; always represent a positive image of MMS4D -collect payments -inform parents of problem behavior or injuries sustained/treatment given Misc: -light maintenance -clean up dog poop -shovel outside in snow/mow in summer (if applicable) -clean/squeegee f1oors/vacuum/sweep/mop -general cleaning Lead Teacher/Assistant Manager Lead Teacher will assist the manager with daily activities including opening and closing, assisting customers in all capacities, handling employees questions, and supervising dogs in all areas. Customer Service: -know all MMS4D prices and policies -answer phones -open or close shift -conduct Screenings -assist customers at the front counter -take dogs to car and retrieve them from car via leash -update website Employees: -write weekly schedule -interview, hire, train new employees -handle disputes between employees timely and fairly -motivate employees to take pride in their job, and encourage free expression of idea's -ensure proper supplies are available for employees needs (paper products, water, etc) -ensure employees are aware of and adhering to rules set forth by school -monitor and evaluate employee behavior and performance; schedule/conduct yearly reviews and determine if/what raise is warranted Dogs: -conduct and supervise class activities/lessons -ensure dogs are aware of and complying with rules set forth by school -administer medication and basic first aid as needed -conduct screenings -maintain controlled environment -create report cards, including specific info about each dog "Parents" : -discuss students daily behavior and lessons with dog owners (parents) -be friendly and courteous; always represent a positive image of MMS4D -collect payments -inform parents of problem behavior or injuries sustained/treatment given Mise: -light maintenance -clean up dog poop -shovel outside in snow/mow in summer (if applicable) . -clean/squeegee floors/vacu um/sweep/mop -general cleaning Teacher/Associate Customer Service: -know all MMS4D prices and policies, or where to find them -answer phones -assist customers at the front counter -take dogs to car and retrieve them from car via leash Dogs: -assist with class activities/lessons -ensure dogs are aware of and complying with rules set forth by school -administer medication and basic first aid as needed -maintain controlled environment -supervise dogs during free play time, both indoors and out -supervise dogs during rest time, relax on floor with them, maintain quiet environment "Parents" : -be friendly and courteous; always represent a positive image of MMS4D -collect payments -discuss students daily behavior and lessons with dog owners (parents) Mise: -light maintenance -clean up dog poop -shovel outside in snow/mow in summer (if applicable) -clean/squeegee floors/vacuum/sweep/mop -general cleaning Benefits for Full Time Employees Miss Manner School for Dogs July 2010 Manager -2 (two) weeks paid vacation each year for first 3 years of employment as manager. After third full year, one additional week paid vacation given (all vacation must be approved by owner before being taken). -Paid holidays: Manager will be given 7 paid holidays per year (New Years Day, Memorial Day, July 4th, Labor Day, Thanksgiving Day and day after, Christmas Day). Manager will be allowed to take a full day off either the week proceeding or following the week of an applicable holiday. It is the managers' responsibility to ensure they get their paid holiday off, and to report to the owner when it's being taken. -Personal Time: Manager will be given 5 (five) days to be used for personal reasons or illness. When possible, the manager must inform the owner before taking a personal day. No more than 2 (two) personal days may be used consecutively. -Profit Sharing: After the first two years of operation, Miss Manners School for Dogs (MMS4D) will offer profit sharing for its full time employees. Details have yet to be set, but I am currently looking into different options. -At-work Benefits: During a scheduled shift, the manager may bring their personal dog(s) from home to participate in the school activities. Before entering the groups, each dog will complete a screening and full application (including vaccinations) and ensure the file remains up to date. The manager may only bring dogs currently owned by them or a family member for free, and a maximum of 3 (three) dogs per day will be allowed. Special exceptions may be made, but must be approved before hand by the owner. *AII Benefits are suspended pending satisfactory completion of 90 (ninety) day trial period. This trial period can be extended by the owner/manager at their discretion. *If at any time there is a problem that arises from employees having their dog(s) at work with them, or causes facility overcrowding, the owner/manager may revoke this privilege. If possible, explanation will be given, but decision is at sole discretion of owner/manager. Head Trainer (HT)/Assistant Manager (AM) -2 (two) weeks paid vacation each year for first 5 years of employment as manager. After fifth full year, one additional week paid vacation given (all vacation must be approved by manager before being taken). -Paid holidays: HT/AM will be given 7 paid holidays per year (New Years Day, Memorial Day, July 4th, Labor Day, Thanksgiving Day and day after, Christmas Day). HT/AM will be allowed to take a full day off either the week proceeding or following the week of an applicable holiday. It is the HT/AM responsibility to ensure they get their paid holiday off, and to report to the manager when it's being taken. -Personal Time: HT/AM will be given 3 (three) days to be used for personal reasons or illness. When possible, the HT/AM must inform the manager before taking a personal day. No more than 2 (two) personal days may be used consecutively. -Profit Sharing: After the first two years of operation, Miss Manners School for Dogs (MMS4D) will offer profit sharing for its full time employees. Details have yet to be set, but I am currently looking into different options. -At-work Benefits: During a scheduled shift, the HT/AM may bring their personal dog(s) from home to participate in the school activities. Before entering the groups, each dog will complete a screening and full application (including vaccinations) and ensure the file remains up to date. The HT/AM may only bring dogs currently owned by them or a family member for free, and a maximum of 2 (two) dogs per day will be allowed. Special exceptions may be made, but must be approved before hand by the manager. * All Benefits are suspended pending satisfactory completion of 90 (ninety) day trial period. This trial period can be extended by the owner/manager at their discretion. *If at any time there is a problem that arises from employees having their dog(s) at work with them, or causes facility overcrowding, the owner/manager may revoke this privilege. If possible, explanation will be given, but decision is at sole discretion of owner/manager. Services and Fees: Pre-School $125 (Mon-Fri, one week commitment-must be completed before dog can enroll in school or other services) School: Single Day: $30 5 days School $145 (29/day) 10 days School $280 (28/day) 20 days School $540 (27/day) ELP (Extra learning Program, includes full day of regular school): Single Day: $35 5 days ElP $170 (34/day) 10 days ElP $320 (32/day) 20 days ElP $600 (30/day) Half Days-AM or PM (6:30-12:30 or 12:00-6:00) Half Day $20 5 Half Days $95 (19/day) 10 Half Days $180 (18/day) 20 Half Days $320 (16/day) Half Day ElP $25 5 Half Days ElP $120 (24/day) 10 Half Days ElP $230 (23/day) 20 Half Days ElP $440 (22/day) Nail Trim: Normal: $15 Difficult: $20 Baths: Small (in sink): $15 Medium: $20 Large: $25 Tooth Brushing: Ask about packages In-Home Tutoring Family Sessions: $35/hour Express Drop-off/Pick-Up: Once a client has completed pre-school and 5 days of school (within one month), they are eligible for express service at drop off or pick up. This service allows a customer to call us from their vehicle once in the parking lot or on the street, and we will walk their dog out to the car for them. -No Charge Monthly Report Cards: Once a month, we will send home a report card with your dog. This will include information about what your dog has learned/practiced throughout the month, as well as tips for getting the same results at home, and general dog information/care tips. -No Charge Boarding: Due to the overwhelming need for quality places to board dogs during the holiday seasons, MMS4D will offer over-night boarding during several weeks in November and December. In order to be eligible for this service a dog will have already completed pre-school and been attending school for at least one (1) month (4 or more days of classes). Each dog staying with us for boarding will be a full participant in the school activities Mon-Fri, and be given at least 4-5 hours of activity out of their kennel during the weekends. One Dog $45 (per night) Two Dogs $80 (per night, same kennel) Three or more dogs $90 (per night, same kennel) *if more than one kennel is needed, a discount of 25% will be given on every kennel used after the first. (example, first kennel $45, second kennel $33.75 (25%off), third kennel $33.75, etc) Daily Photos: Available on our website, MMS4D will take and post pictures from each day. The photos will be up loaded/up dated at the end of the school day. To Whom It May Concern: I am writing this letter on behalf of Mrs. Adrienne Vevera. I originally met Adrienne at Lucky Pawz doggy daycare and was able to see her interact with all different types of dogs. Adrienne was able to bond with the dogs and also teach the dogs to follow commands and have basic manners. This is just one of the many reasons I would completely trust Adrienne with my dogs. As a young professional, my two dogs are currently my only "children." I love them and want them to have the best. However, with the ever increasing demands of a busy schedule, it is not always possible for me to properly socialize them. Nor am I always able to devote time to basic obedience. As such, this is where Miss Manner's School for Dogs were serve as a great help for our family. Not only would my dogs thoroughly enjoy their time at school, but I would also have peace of mind knowing they are safe, happy, and learning! Additionally, there would be multiple benefits to our family including both increased socialization and improved obedience skills. Ultimately, taking the dogs to Miss Manner's School for Dogs would lead to happier pets and happier people. For these reasons, I would like to use this service one to two times per week for both of my dogs. I look forward to hearing about the progress of Miss Manner's School for Dogs, and also wish Adrienne the best in the future. Thank you. Sincerely, Ms. Amanda Drevyanko _.._..~._._._..,,~....,-~--------_._-----_.... To whom it may concern, I am writing this letter today to explain why I, as a dog owner would utilize and support Miss Manners School for dogs. My husband and I are young working professionals, we have 2 dogs and no children as of yet, so of course our dogs are treated very much like they are our children! I would give this facility my business for many reasons, the biggest of which is the concept of both playing AND learning throughout the day. I have very much wanted to take our dogs to obedience classes to make them well behaved members of the community for some time now. The biggest obstacle is finding the time to do this. Most obedience classes that I have come across are either in the evening or on weekends. My husband and my work schedules do not accommodate this at all. The fact that I could drop my dogs off at Miss Manners and know that they will receive the training that I want them to have is great. I have used doggy day cares in the past but often wondered if I am paying for my dogs to nap all day. With this new unique type of facility I know that my dogs would be stimulated, trained and socialized which are all extremely important to me. I believe Adrienne is well-qualified to be opening this type of business. I have known Adrienne for well over 10 years and I would trust her completely to care for my dogs as well as hire a staff that would do the same. She is obviously an animal lover, but also has the willingness to teach and train dogs and has a true desire to make every dog a better citizen. With her history and experience, I feel she has the know-how to make this type of business a success. I think naturally any dog owner is a bit skeptical of who would be caring for their pet during the day, but the minute you meet Adrienne, her warm demeanor and attention is all you need to know that your dog would be in good hands. On average, I feel that I would frequent this type of business one to two times a week, more or less given the time of year. I especially like the proposed hours in that I can drop off very early when needed. I also like that this facility would offer baths and nail clipping, given that I never seem to find time to take my dogs in specifically for these services. It would also be nice to receive monthly report cards so I know exactly what my dog has been learning as well as a way to know what to focus on when I may be doing some training on my own. In summary, I feel that the Iowa City/Coralville area would really benefit from this type of "do all" facility. With everyone leading such hectic lives, this is one way that dog owners, both old and new can feel that they are doing something positive for their pets and in turn, something positive for the community. Sincerely, Melissa Steckly Future Miss Manners School for Dogs patron Miss Manners School for Dogs Pol ides 1. School: All dogs must complete a temperament evaluation. Miss Manners reserves the right to refuse or to reject any dog that might be a safety hazard to itself other dogs in our care or staff member. This includes, but is not limited to dogs who are aggressive, anti-social. toy or people possessive. anxious, or physically ill. All dogs must be at least 12 weeks or older to attend day care/boarding and all dogs over 6 months must be spayed or neutered. 2. Vaccinations: All dogs must have current vaccinations against Rabies, Bordetella. and Distemper/Parvo (DHLPP). Your dog will not be admitted into Miss Manners until we have proof of vaccinations, and you must provide new copies of vet records when vaccinations are updated. 3. Flea Protection: All dogs are required to have flea protection. Your dog must be on a veterinarian approved form of topical flea control. Acceptable flea treatments are Frontline, Frontline Plus, Advantage, K-9 Advantage, and Revolution. Any dog that has fleas will not be allowed in our facility. 4. Collars and Leashes: All dogs must be on leash when entering and exiting Miss MaMers, and shall wear a collar (not metal slip or prong type) while at the school. 5. Boarding: In order to be eligible to board at Miss Manners a dog will have already completed pre-school, and be current on all vaccinations. Dogs staying overnight will be a full participant in school activities during the day, . Mon-Fri, and guaranteed at least 4 hours of play and socialization each Saturday and Sunday. 6. Toys and Beds: Miss Manners cannot guarantee that any personal items brought in will be returned in the same condition. Miss Manners is not responsible for any items lost or damaged at our facility. If a dog is chewing on/destroying their toys/bed. Miss Manners staff will remove those items to prevent choking. 7. Food: All dogs that are being fed in our care are required to have their own dog food from home. 8. Service Fees: All fees for services are due when services are rendered. Acceptable forms of payment are checks, credit cards, and cash. 9. Late Fees: There will be a $5 late fee for every 15 minutes after closing. By signing this policy you are acknowledging and agreeing to the terms of Miss Manners School for Dogs. Client's Signature Print Name Date 1 ~ 1 -,...= -..... tr--....... ~~W!:~ ~ ~ga.' ~.:.. CITY OF IOWA CITY MEMORANDUM Date: September 17, 2010 To: Economic Development Committee From: Wendy Ford /~ Vl~ Re: Resolution of Necessity for Towncrest Urban Renewal Plan Agenda item number 5 is to consider a recommendation to the City Council on a Resolution of Necessity for the Towncrest Urban Renewal Plan. The Resolution of Necessity formally initiates the legislative process to adopt the plan. It also sets the dates for the consultation with other taxing entities and the meeting dates for the public hearing/s about the Plan required by state law. While the draft plan for the Towncrest Urban Renewal Area is attached to the resolution, you need only consider recommending the Resolution of Necessity today. The plan, in draft form is still subject to change. Estimated Time line of Activity leading to adoption of Towncrest Urban Renewal Plan Action Entitv Date Resolution of Necessity Economic Development 9/22/2010 Recommend to Council Committee Resolution of Necessity City Council 10/11/2010 Consider Adoption Review of Towncrest Urban Planning and Zoning 10/21/2010 Renewal Plan Commission (and possiblv 11/4/2010) Consultation with Taxing County Government 10/15/2010 Entities School District Colleges Public Hearing and Consider City Council 10/26/2010 or 11/16/2010 if Adoption of the Urban P&Z takes two meetings to Renewal Plan make recommendation Please let me know if you have any questions about the Resolution of Necessity. Prepared by: Wend Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. RESOLUTION DETERMINING THE NECESSITY AND SETTING DATES OF A CONSULTATION AND A PUBLIC HEARING ON A PROPOSED TOWNCREST URBAN RENEWAL PLAN FOR A PROPOSED URBAN RENEWAL AREA IN THE CITY OF IOWA CITY, IOWA WHEREAS, it is hereby found and determined that one or more economic development areas, as defined in Chapter 403, Code of Iowa, exist within the City and rehabilitation, conservation, redevelopment, development, or combination thereof, of the area is necessary in the interest of the public health, safety, or welfare of the residents of the City; and WHEREAS, this council has reasonable cause to believe that the area described below satisfies the eligibility criteria for designation as an urban renewal area under Iowa law and has caused there to be prepared a proposed Towncrest Urban Renewal Plan for the area described therein, which proposed Plan is attached hereto as Exhibit A; and WHEREAS, this proposed Urban Renewal Area includes and consists of : Commencing at the NW corner of lot 1, block 5, East Iowa City Subdivision, which is the Point of Beginning; Thence easterly to a point on the easterly extension of the northern boundary line of said Lot 1 where it intersects with the western boundary of Memory Gardens Cemetery; Thence SOOdegrees51 'orw to the NW corner of the property described in Deed Book 2582, Page 188, more specifically described as follows: Beginning 501.5' E of SW corner of NW ~ of Section 13, Township 79N, Range 6W in Johnson County, Iowa; thence N 383.4' to said NW corner. Thence easterly 140' along the northern boundary line of said property described above; Thence southerly 203.4' to the NW corner of the property described in Deed Book 2476, Page 16, more specifically described as follows: Commencing 725.83' E of SW corner of NW ~, said Section 13; thence N 180' to NW corner of said property described above. Thence easterly 84.3' to the NE corner of said property described above; Thence southerly 147' to the SE corner of said property described above, which is on the northern Right-of-Way line of Muscatine Avenue; Thence continuing along said northern RO.W. line to SW corner of the property described in Deed Book 569, Page 114, more specifically described as follows: Commencing 1107.12' east of SW corner of NW ~ of said Section 13; thence northerly 33' to SW corner of said property described above. Thence northerly 332.1' to NW corner of said property described above; Thence easterly along the northern boundary line to the NE corner of said property; Thence easterly 8' to the SW corner of lot 13, East Hill Subdivision; Thence N89degrees58'18"E a distance of 126.93'; Thence SOOdegrees33'56"W a distance of 43.83'; Thence S85degrees59'07"E a distance of 496.41' to the SW corner of lot 19, East Hill Su bd ivision; Thence SOOdegreesOO'57"W a distance of 253' to the SW corner of lot 1, Waters First Addition, which on the northern RO.W. line of Muscatine Avenue; Thence southerly 73' to the southern RO.W. line of Muscatine Avenue; Thence S89degrees53'29"W along said southern RO.W. line to the NE corner of lot 2, block 3, Towncrest Addition Part Two; Thence southerly to the SE corner of said lot 2; Resolution No. Page 2 Thence westerly to the NE corner of lot 2, block 1, Towncrest Addition Part Two; Thence southerly to the SE corner of lot 5, block 2, Towncrest Addition Part Two; Thence westerly 440' along northern RO.W. line of Wayne Avenue to a point on the westerly extension of said line where it intersects with the centerline of Arthur Street; Thence NOOdegrees37'00"E a distance of 110' to a point on said centerline where it intersects with the easterly extension of the northern property line of lot 1, block 3, Towncrest Addition Part One; Thence westerly 30' to the NE corner of said lot 1, and continuing westerly 1,139' to the SW corner of lot 19, block 1, Towncrest Addition Part One; Thence northerly 480' to the NE corner of property described in Deed Book 2237, Page 261, more specifically described as the south 80' of the following: Commencing at the NW corner of lot 12, block 1, Towncrest Addition, thence N200' E1 07.5' S200' W1 07.5' to P.O.B.; also west 17.5' of lots 13 & 14, block 1, said subdivision, except the westerly l' conveyed to the City of Iowa City for the street. Thence westerly 125.5' to the western RO.W. line of First Avenue; Thence south along said RO.W. to the SE corner of lot 1, block 7, East Iowa City Subdivision; Thence S1 0' to a point on the southerly extension of the eastern boundary of said lot 1 where it intersects with the centerline of the alley running east and west in said block 7; Thence westerly along said centerline to a point where it intersects with the eastern RO.W. boundary of Second Avenue; Thence N60' along the eastern RO.W. boundary of Second Avenue; Thence westerly 102' to the SW corner of property described in Deed Book 2721, Page 197, more specifically described as follows: N100' of lot 1 and E22' of N100' of lot 2, block 14, East Iowa City Subdivision. Thence northerly 100' to the southern RO.W. line of Muscatine Avenue; Thence northerly 66' to the northern RO.W. line of Muscatine Avenue; Thence easterly 12' along said northern RO.W. line to the SW corner of property described in Deed Book 2456, Page 197, more specifically described as follows: S75' of lot 8, block 15, and E10' of S75' of lot 7, block 15, East Iowa City Subdivision. Thence northerly 75' to the NW corner of said property described above; Thence easterly 165' to the eastern RO.W. line of Second Avenue; Thence northerly 245' to the NW corner of lot 4, block 6, East Iowa City Subdivision; Thence easterly 160' to the NE corner of lot 3, block 6, East Iowa City Subdivision; Thence northerly 395' along the centerline of the alley running north and south in block 5, East Iowa City Subdivision; Thence easterly 10' to the NW corner of lot 1, block 5, East Iowa City Subdivision, which is the Point of Beginning. WHEREAS, the Iowa statutes require the City Council to submit the proposed Towncrest Urban Renewal Plan to the Planning and Zoning Commission for review and recommendation as to its conformity with the General Plan for development of the City as a whole prior to City Council approval of such urban renewal plan, and further provides that the Planning and Zoning Commission shall submit its written recommendations thereon to this Council within thirty (30) days of its receipt of such proposed Towncrest Urban Renewal Plan; and WHEREAS, the Iowa statutes further require the City Council to notify all affected taxing entities of the consideration being given to the proposed Towncrest Urban Renewal Plan and to hold a consultation with such taxing entities with respect thereto, and further provides that the designated representative of each affected taxing entity may attend the consultation and make written recommendations for modification to the proposed division of revenue included as a part thereof, to which the City shall submit written responses as provided in Section 403.5 as amended; and WHEREAS, the Iowa statutes further require the City Council to hold a public hearing on the proposed Towncrest Urban Renewal Plan subsequent to notice thereof by publication in a newspaper having general circulation within the City, which notice shall describe the time, date, place and purpose of the hearing, shall generally identify the urban renewal area covered by Resolution No. Page 3 the urban renewal plan and shall outline the general scope of the urban renewal project under consideration, with a copy of said notice also being mailed to each affected taxing entity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: Section 1. That the consultation on the proposed Towncrest Urban Renewal Plan required by Section 403.5(2) of the Code of Iowa, as amended, shall be held on the 15th day of October, 2010 in the City Manager's Conference Room, Civic Center, Iowa City, Iowa at .10:00 a.m., and Wendy Ford, Economic Development Coordinator, is hereby appointed to serve as the designated representative of the City for purposes of conducting said consultation, receiving any recommendations that may be made with response thereto and responding to the same in accordance with Section 403.5(2). Section 2. That the City Clerk is authorized and directed to cause a notice of said consultation to be sent by regular mail to all affected taxing entities, as defined in Section 403.17(1A), along with a copy of the proposed Towncrest Urban Renewal Plan, said notice to be in substantially the following form: NOTICE OF A CONSULTATION TO BE HELD BETWEEN THE CITY OF IOWA CITY, IOWA AND ALL AFFECTED TAXING ENTITIES CONCERNING THE PROPOSED TOWNCREST URBAN RENEWAL PLAN FOR THE CITY OF IOWA CITY, IOWA The City of Iowa City, Iowa will hold a consultation with all affected taxing entities, as defined in Section 403.17(1A) of the Code of Iowa, as amended, commencing at 10:00 o'clock A.M. on October 15, 2010, in the City Manager's Conference Room, Civic Center, Iowa City, Iowa concerning a proposed Towncrest Urban Renewal Plan, copy of which is attached hereto. Each affected taxing entity may appoint a representative to attend the consultation. The consultation may include a discussion of the estimated growth in valuation of taxable property included in the proposed Urban Renewal Area, the fiscal impact of the division of revenue on the affected taxing entities, the estimated impact on the provision of services by each of the affected taxing entities in the proposed Urban Renewal Area, and the duration of any bond issuance included in said Plan. The designated representative of any affected taxing entity may make written recommendations for modification to the proposed division of revenue no later than seven days following the date of the consultation. Wendy Ford, Economic Development Coordinator, as the designated representative of the City of Iowa City, shall submit a written response to the affected taxing entity, no later than seven days prior to the public hearing on the proposed. Towncrest Urban Renewal Plan, addressing any recommendations made by that entity for modification to the proposed division of revenue. This notice is given by order of the City Council of the City of Iowa City, Iowa, as provided by Section 403.5 of the Code of Iowa, as amended. Dated this day of '-' Resolution No. Page 4 City Clerk, Iowa City, Iowa (END OF NOTICE) Section 3. That a public hearing shall be held on the proposed Towncrest Urban Renewal Plan before the City Council at its meeting which commences at 7:00 o'clock p.m. on October 26, 2010 in the Emma J. Harvat Hall, Civic Center, Iowa City, Iowa. Section 4. That the City Clerk is authorized and directed to give public notice of this public hearing in the "Press-Citizen," once on a date not less than four (4) nor more than twenty (20) days before the date of said public hearing, and to mail a copy of said notice by ordinary mail to each affected taxing entity, such notice in each case to be in substantially the following form: NOTICE OF PUBLIC HEARING TO CONSIDER APPROVAL OF A PROPOSED TOWNCREST URBAN RENEWAL PLAN FOR A PROPOSED URBAN AREA IN THE CITY OF IOWA CITY, IOWA The City Council of the City of Iowa City, Iowa will hold a public hearing before itself at its meeting which commences at 7:00 p.m. on October 26,2010 in the Emma J. Harvart Hall, Civic Center, Iowa City, Iowa to consider adoption of a proposed Towncrest Urban Renewal Plan (the "Plan") concerning a proposed Urban Renewal Area in Iowa City, Iowa legally described as follows: Legal Description.. . which land is to be included as part of this proposed Urban Renewal Area. A copy of the plan is on file for public inspection in the office of the City Clerk, City Hall, Iowa City, Iowa. The City of Iowa City, Iowa is the local agency which, if such Plan is approved, shall undertake the urban renewal activities described in such Plan. The general scope of the urban renewal activities under consideration in the Plan is to assist qualified industries and businesses in the Urban Renewal Area through various public purpose and special financing activities outlined in the Plan. To accomplish the objectives of the Plan, and to encourage the further development of the Urban Renewal Area, the plan provides that such special financing activities may include, but not be limited to, the making of loans or grants of public funds to private entities under Chapter 15A of the Code of Iowa. The City also may install, construct and reconstruct streets, parking facilities, open space areas and other substantial public improvement, and may acquire and make land available for development or redevelopment by private enterprise as authorized by law. The Plan provides that the City may issue bonds or use available funds for such purposes and that tax increment reimbursement of such costs will be sought if and to the extent incurred by the City. The Plan initially proposes specific public infrastructure or site improvement to be undertaken by the City, but provided that the Plan may be amended from time to time to respond to development opportunities. Any person or organization desired to be heard shall be afforded an opportunity to be heard at such hearing. This notice is given by order of the City Council of Iowa City, Iowa, as provided by Section 403.5 of the State Code of Iowa. Dated this _ day of s/Marian K. Karr City Clerk, Iowa City, Iowa Resolution No. Page 5 (END OF NOTICE) Section 5. That the proposed Towncrest Urban Renewal Plan, attached hereto as Exhibit A, for the proposed Urban Renewal Area described therein is hereby officially declared to be the proposed Towncrest Urban Renewal Plan referred to in said notices for purposes of such consultation and hearing and that a copy of said Plan shall be placed on file in the office of the City Clerk. Section 6. That the proposed Towncrest Urban Renewal Plan be submitted to the Planning and Zoning Commission for review and recommendation as to its conformity with the General Plan for the development of the City as a whole, with such recommendation to be submitted in writing to the Council within thirty (30) days of the date hereof. PASSED AND APPROVED this _ day of Mayor ATTEST: City Clerk Passed and approved this day of ,20 MAYOR Approved by ATTEST: CITY CLERK City Attorney's Office Towncrest Urban Renewal Plan 2010 1 Table of Contents Section 1 - Introduction Section 2 - District Designation Section 3 - Base Value Section 4 - Urban Renewal Plan Objectives Section 5 - Description of Urban Renewal Area Section 6 - Type of Urban Renewal Activities Section 7 - Proposed Projects Section 8 - Conformance with Land Use Policy and Zoning Ordinance Section 9 - Relocation of Families Section 10 - Financial Data Section 11 - Urban Renewal Plan Amendments Section 12 - Property Acquisition/Disposition Section 13 - Effective Period Addendum No. 1 - Legal Description Addendum No.2 - Towncrest Urban Renewal Project Area Map 2 "~'~<--~~-~-~~,",_""_~'--'_~'"_~'C_""'_~"_'M__"_ Section 1- Introduction This Urban Renewal Plan has been developed to help local officials reduce slum and blighted areas and promote economic development within Iowa City, Iowa. The primary goal of the plan is to stimulate, through public involvement and commitment, private investment in the revitalization of the Towncrest Urban Renewal Project Area for commercial and residential uses. The goals outlined in this Towncrest Urban Renewal Plan include the following, which include goals detailed in the Iowa City Comprehensive Plan - 1997, as amended: · Diversify and increase the property tax base by (1) encouraging the retention and expansion of existing industry and (2) attracting industries that have growth potential and are compatible with existing businesses; · Increase employment opportunities consistent with the available labor force; · Provide and protect areas suitable for future commercial development; · Cooperate with local and regional organizations to promote economic development within Iowa City; · Improve the environmental and economic health of the community through the efficient use of resources; · Consider financial incentives and programs to facilitate achieving the above goals; · Focus commercial development in defined commercial center, including small scale neighborhood commercial centers; and · Foster strong commWlityneighborhoods with a mix of housing, churches, schools recreation facilitiY~lcoriilii~tcial areas, and historic landmarks. In order to make development sites attractive to new and expanding businesses, communities are frequer1tlycalledupon to provide financial incentives and programs. Other development sites in the metro area, which already cater to commercial and office uses, make tax increment financing available to qualifying businesses. As is consistent with the Iowa City Comprehensive Plan, the City has concluded it is in the interest of its citizens to encourage the development of commercial and office zoned land in order to provide competitive development sites for these uses. The City has identified portions of the Towncrest Urban Renewal Project Area to be slum or blighted areas, as defined by Iowa Code 403.17(2009). It is in the interest of its citizens to provide financial incentives and progr'lms in order to encourage revitalization of such areas. Therefore, the City intends to make available the use of tax increment financing as a means to finance the construction of some of the necessary public infrastructure improvements within the Towncrest Urban Renewal Project Area, referred to hereinafter as the "Urban Renewal Project Area" or "Area". In addition, the City may make available the use of tax increment financing to provide direct grants, loans or rebates for qualifying commercial or residential developments that help achieve the goals and objectives set forth herein. 3 To gain public input for the Plan, City staff began meeting with community stakeholders in October of 2008 and continued through September of 20 10 and discovered that existing conditions were less than ideal. The planning process began with a broad-based community meeting where staff listened to the concerns of residents, businesses, and the non-profit community. Early on, stakeholders noted the following needs: · To retain local businesses, with special attention to medical services that have been a part of the Urban Renewal Project Area's historic character; · To firmly establish a neighborhood identity; . To encourage a more diverse mix of businesses; · To address the deterioration of commercial and residential rental properties; . To improve streets capes and traffic circulation; and . To create new green spaces. Once the community expressed the broader themes for redevelopment, City staff met with individual businesses and organizations located within the Urban Renewal Project Area. These interviews provided staff with the suggestions necessary to frame a more detailed plan for the Urban Renewal Project Area. After these meetings it was decided that any plan developed by the city should: . Be developed in phases and implemented over time; . Encourage mixed-use commercial/residential development; . Adopt architectural and landscape standards to assure quality development; . Seek to improve traffic circulation for vehicles and pedestrians alike; · Provide better access and visibility from Muscatine and First Avenues; . Create a central green space for community gatherings and to open VIews to Muscatine Avenue; . Provide a central parking facility for employee and long term parking in order to create a more pedestrian oriented streetscape, while providing angled store-front parking for customers and patients; . Consider a zoning change to allow .adjacent properties to convert to townhomes over time. . Redevelop decaying commercial and residential rental properties located within the Urban Renewal ProjectArea To achieve the primary objectives of this Plan, the City of Iowa City shall undertake the urban renewal actions as specified in this Urban Renewal Plan, pursuant to the powers granted to it under Chapters 15A and 403 of the 2009 Code of Iowa, as amended. Section 2- District Designation With the adoption of this Plan, Iowa City designates this Urban Renewal Area as a slum and blighted area, as well as an economic development district that is appropriate for residential, office and commercial development. Section 3- Base Value 4 If the Towncrest Urban Renewal Area is legally established and debt is certified prior to December 1,2010, the taxable valuation within the district as of January 1, 2009, will be considered the "base valuation". If the debt is not certified until a later date, the "base value" will be the assessed value of the taxable property in the Urban Renewal Area as of January 1 of the calendar year preceding the calendar year in which the City first certifies the amount of any debt. Section 4- Urban Renewal Plan Objectives The overall goal of this Plan is to formulate and execute a workable program using public and private resources to develop the Urban Renewal Project Area for retail, office, housing, and other commercial or residential uses. The following objectives, based on community and stakeholder input, have been established for the proposed Urban Renewal Project Area: · To encourage and support development that will expand the taxable values of property within the Urban Renewal Project Area; · To reverse the deterioration of commercial and residential properties within the Urban Renewal Project Area. · To encourage the revitalization of commercial and residential activity in the Urban Renewal Project Area, in particular the revitalization of medical-related offices, office, retail, restaurants, housing, and business and personal service establishments; · To provide for the orderly physical and economic growth of the City; · To make public improvements as deemed necessary by the City to support commercial andtesidential activity within the Urban Renewal Project Area; · To provide financiaFincentives and assistance to qualifying projects and businesses as necessary . Section 5- Description of Urban Renewal Area The legal description of this proposed Urban Renewal Project Area is included in the Plan as Addendum No.1 - Legal Description. The location and general boundaries of the Towncrest Urban Renewal Plan Area are shown on Addendum No.2 - Location Map: Towncrest Urban Renewal Project Area. Section 6- Proposed Urban Renewal Activities To meet the objectives of this Plan and to encourage the development of the Area, the City intends to utilize the powers conferred upon it pursuant to Iowa Code Chapters 15A and 403 (2009) and to make available financial incentives, including but not limited to, tax increment financing for the following activities: 1. Undertake and carry out urban renewal projects though the execution of contracts and other instruments. 5 2. Make or have made surveys and plans necessary for the implementation of the Urban Renewal Plan or specific urban renewal projects. 3. Make loans, forgivable loans, grants, or rebates to private persons or businesses for economic development purposes on such terms as may be determined by the Iowa City Council, in its sole discretion. 4. Provide for the installation of infrastructure and roadway improvements. 5. Use any or all other powers granted by the Urban Renewal Act to develop and provide for improved economic conditions in Iowa City. 6. Encourage the incorporation of energy efficient building techniques such as those specified in the Iowa Green Building Standards, or those attaining LEED certification, through the use of tax increment financing, in the sole discretion of the City Council. Section 7- Proposed Projects Proposed projects involve activities necessary to facilitate growth in the Urban Renewal Area and provide incentives to encourage new development to locate in the area. Projects including water, sewer, street and other infrastructure may be constructed. In addition, the City may cQn~~der providing direct or indirect financial incentives to private persons or businesses as incentives to locate in the Area. Private Site Improvements Private site improvements may include, but are not limited to, demolition of existing buildings and site preparation; design and construction of buildings; grading for building construction and amenities; pavingMd parking; landscaping; and installation of on-site utilities. Private site improvements will be required to follow the design guidelines set forth in the Towncrest Design Plan, created by the City's landscape architecture consultant RDGPlanning and Design. Tax increment financing may be granted to qualifying entities to finance these private site improvements, at City Council's discretion. Any development projects receiving tax increment financing or other public funding assistance will be required to follow design guidelines noted above and all exterior design aspects of the project will be subject to review by the Staff Design Review Committee. Public Infrastructure Improvements Public infrastructure improvements may include, but are not limited to, storm water management facilities, public streets and sidewalks, sanitary sewers, storm sewers, and open space improvements. Tax increment financing may be available to finance the 6 construction of these improvements, in whole or in part, at the City Council's discretion. Financial Incentives At the City Council's discretion and as permitted by Iowa Code Section 403.19 (2009), tax increment financing may be available for providing direct grants, loans or property tax rebates for qualifying projects and businesses in the Urban Renewal Area. Tax increment financing may be used for, but is not limited to, financing the private site improvements and public infrastructure improvements listed above. Qualifying proj ects and businesses shall be determined by the City Council on a case by case basis. Section 8- Conformance with Land Use Policy and Zoning Ordinance Comprehensive Plan The Urban Renewal Project Area is located within the area designated by the Iowa City Comprehensive Plan as the Southeast Planning District. The Iowa City Comprehensive Plan designates the Urban Renewal Project Area as appropriate for general commercial and residential uses. Current and Proposed Zoning and Land Uses The Project Area is currently zoned CC-2, CO-I, RM-20 and RS-8, as defined by the Iowa City Zoning Code. The current land uses consist of commercial, public, and residential uses. The proposed land uses include mixed-use, retail, office, and other commercial and residential uses permitted in the CC-2 and CO-I zones. The City may amend its zoning code to create a new, urban mixed-use zoning classification and may rezone the area to be so designat~d. Any rezoning to this area, including the creation of a new zoning category under the Zoning Code, will be consistent with the Comprehensive Plan. Section 9- Relocation of Families Benefits Upon the City's verification of a property owner's eligibility for tax increment financing, qualified tenants in the designated Urban Renewal Project Area shall be compensated by the property owner for one month's rent and for actual reasonable moving and related expenses, where said displacement was due to action on the part of the property owner to qualify for said tax increment financing. Eligibility "Qualified tenant" means the legal displaced occupant of a residential dwelling unit which is located within the designated Urban Renewal Project Area where the person or family has occupied the same dwelling unit continuously for twelve (12) months prior to the City making tax increment financing available to a project within the Urban Renewal 7 Project Area. There are no relocation provisions made for displacement from commercial units. Actual Reasonable Moving and Related Expenses A qualified tenant of a dwelling is entitled to actual reasonable expenses for: a. Transportation of the displaced person and personal property from the displacement site to the replacement site. Transportation costs for a distance beyond twenty-five (25) miles are not eligible; b. Packing, crating, unpacking and uncrating of personal property; c. Disconnecting, dismantling, removing, reassembling and reinstalling relocated household appliances and other personal property; d. Discontinuing, transferring or reconnecting utility servIces, including cable television. Least Costly Approach The amount of compensation for an eligible expense shall not exceed the least costly method of accomplishing the objective of the compensation without causing undue hardship to the displaced tenant and/or landlord. Section 10- Financial Data 1. Constitutional Debt Limit: $ 136,552,095 2. Current general obligatiohdebt: $ 84,995,000 3. Proposed amount of indebtedness to be incurred: A specific amount of tax increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds) for proj ects over time has not yet been determined. The City Council will consider each request for financial assistance or a project proposal on a case-by-case basis to determine if it is in the City's best interest to participate. It is estimated that the City's cost for initial anticipated projects discussed herein will be in the $10 to $15 million range. Section 11- Urban Renewal Plan Amendments This Urban Renewal Plan may be amended from time to time to include change in the area, to add or change land use controls or regulations, to modify goals or types of renewal activities, or to amend property acquisition and disposition provisions. 8 If the City of Iowa City desires to amend this Urban Renewal Plan, it may do so after providing public notice, holding a public hearing on the proposed change, and undertaking other required actions, all in conformance with applicable state and local laws. Section 12- Property Acquisition/Disposition Other than easements and right-of-ways, no property acquisition by the City IS anticipated. Section 13. Effective Period This Urban Renewal Plan will become effective upon its adoption by the City Council of Iowa City and will remain in effect as a plan until it is repealed by the City Council. The use of tax increment financing revenues (including the amount of grants, loans, advances, indebtedness or bonds which qualify for payment for the division of revenue provided in Section 403.19 of the Code of Iowa) by the City for activities carried out under the Urban Renewal Plan shall be limited as deemed appropriate by the Council and consistent with all applicable provisions of law. 9 Addendum No.1 Legal Description of the Proposed Urban Renewal Project Area Consisting of a tract of land described as follows: Commencing at the NW comer oflot 1, block 5, East Iowa City Subdivision, which is the Point of Beginning; Thence easterly to a point on the easterly extension of the northern boundary line of said Lot 1 where it intersects with the western boundary of Memory Gardens Cemetery; Thence SOOdegrees5l '07"W to the NW comer of the property described in Deed Book 2582, Page 188, more specifically described as follows: Beginning 501.5' E of SW comer ofNW l4 of Section 13, Township 79N, Range 6W in Johnson County, Iowa; thence N 383.4' to said NW comer. Thence easterly 140' along the northern boundary line of said property described above; Thence southerly 203.4' to the NW comer of the property described in Deed Book 2476, Page 16, more specifically described as follows: Commencing 725.83' E of SW comer of NW l4, said Section 13; thence N 180' to NW comer of said property described above. Thence easterly 84.3' to the NE comer of said property described above; Thence southerly 147' to the SE comer of said property described above, which is on the northern Right-of- Way line of Muscatine Avenue; Thence continuing along said northern R.O.W. line to SW comer of the property described in Deed Book 569, Page 114, more specifically described as follows: Commencing 1107.12' east of SW comer of NW ~ of said Section 13; thence northerly 33' to SW comer of said property described above. Thence northerly332.1' to NW comer of said property described above; Thence easterly along the northern boundary line to the NE comer of said property; Thence easterlY~'Jo the SW comer of lot 13, East Hill Subdivision; Thence N89degree$58'18"J3a.distance of 126.93'; Thence .s9Qdegrees33'i8,~1'W. a dis~~tlce pf 43.83'; ThenceS85degrees59'07~1E a distance of 496.41' to the SW comer of lot 19, East Hill Subdivision; Thence SOOdegreesOO'57"W a distance of 253' to the SW comer of lot 1, Waters First Addition, which on the northern R.O.W. line of Muscatine Avenue; Thence southerly 73' to the southern R.O.W.line of Muscatine Avenue; Thence S89degrees53 '29"W along said southern R.O.W. line to the NE comer of lot 2, block 3, Towncrest Addition Part Two; Thence southerly to the SE comer of said lot 2; Thence westerly to the NE comer of lot 2, block 1, Towncrest Addition Part Two; Thence southerly to the SE comer of lot 5, block 2, Towncrest Addition Part Two; Thence westerly 440' along northern R.O.W. line of Wayne Avenue to a point on the westerly extension of said line where it intersects with the centerline of Arthur Street; Thence NOOdegrees37'00"E a distance of 110' to a point on said centerline where it intersects with the easterly extension of the northern property line of lot 1, block 3, Towncrest Addition Part One; Thence westerly 30' to the NE comer of said lot 1, and continuing westerly 1,139' to the SW comer of lot 19, block 1, Towncrest Addition Part One; Thence northerly 480' to the NE comer of property described in Deed Book 2237, Page 261, more specifically described as the south 80' of the following: 10 Commencing at the NW corner of lot 12, block 1, Towncrest Addition, thence N200' EI07.5' S200' W107.5' to P.O.B.; also west 17.5' of lots 13 & 14, block 1, said subdivision, except the westerly l' conveyed to the City of Iowa City for the street. Thence westerly 125.5' to the western RO.W. line of First Avenue; Thence south along said RO.W. to the SE comer of lot 1, block 7, East Iowa City Subdivision; Thence S 1 0' to a point on the southerly extension of the eastern boundary of said lot 1 where it intersects with the centerline of the alley running east and west in said block 7; Thence westerly along said centerline to a point where it intersects with the eastern R.O.W. boundary of Second Avenue; Thence N60' along the eastern R.O.W. boundary of Second Avenue; Thence westerly 102' to the SW comer of property described in Deed Book 2721, Page 197, more specifically described as follows: NI00' oflot 1 and E22' ofN100' oflot 2, block 14, East IoWa City Subdivision. Thence northerly 100' to the southern RO.W.line of MuscatineAvenue; Thence northerly 66' to the northern RO.W.line of Muscatine Avenue; Thence easterly 12' along said northern RO.W. line to the SW comer of property described in Deed Book 2456, Page 197, more specifically described as follows: S75' oflot 8, block 15, and EIO' ofS75' oflot 7, block 15, East Iowa City Subdivision. Thence northerly 75' to the NW comer of said property described above; Thence easterly 165' to the eastern R.O.W.line of Second Avenue; Thence northerly 245' to the NW comer of lot 4, block 6, East Iowa City Subdivision; Thence easterly 160' to the NE corner of lot 3, block 6, East Iowa City Subdivision; Thence northerly 395' along the centerline of the alley running north and south in block 5, East Iowa City Subdivision; Thence easterly IO'..to.the NW comer of lot 1, block 5, East Iowa City Subdivision, which is the Point of BegiIiliirig. 11 Addendum No.2 Towncrest Urban Renewal Project Area Map ---1 m~ H ST ~g~ 1ST ~~ o ....l , l ~ , J ,5T -, , I BRADFORD DRI')[ ~ ~ TcMrxnIIIt uTIMn ,.,.,., pIfI/m..... 12 1 ~ L ~~5._~.... f~W~~ ~ ~ga.' -= CITY OF IOWA CITY MEMORANDUM Date: September 17, 2010 To: From: Economic Development Committee Jeff Davidson, Director; Department of Planning & Community Development 1M Wendy Ford, Economic Development Coordinator !J,(:-- Update on proposal for downtown business incubator Re: You will recall that this past year we received a grant from the Economic Development Administration in conjunction with our post-2008 flood recovery to conduct a study to evaluate a business incubator for downtown Iowa City. We solicited proposals through an RFP process and selected the UNI Regional Business Center to conduct the study. Over the past several months we have been reviewing sections of the draft report, which has concluded with the issuance of the final report. The final report can be found at www.icaov.ora/creativetechfeasibilitvstudv. The final report states that a downtown business incubator space is currently an unmet need for promoting an entrepreneurial culture in downtown Iowa City. The report further states that the City should not proceed independently with such an enterprise. After evaluation of several organizational arrangements, it was determined that the best scenario for proceeding is for the City to partner with the Iowa City Area Development Group (ICAD). We believe ICAD is a logical partner for us because ultimately the incubation of entrepreneurial ideas could result in the establishment of interstate commerce businesses, which is part of the core mission of ICAD. The study explains that there are now two accepted models for business incubators: the Traditional model and the Co-Working model, the latter of which is recommended in the study. A Traditional incubator model is where entrepreneurs are afforded below-market-rate lease options on office space for one to three years, and must meet business benchmarks set by management. Included in the lease rate are access to meetings rooms, office equipment, professional advisors (e.g., accountants, attorneys and marketing specialists), and capital. The newer model for incubation is referred to as Co-Working, and is a space more resembling a coffee shop with business amenities where entrepreneurs share communal space and partake in a well managed array of social and business interactions. Co-Work incubators are seen as a means to increase and accelerate entrepreneurial activity among young, New Economy entrepreneurs. A professionally managed Co-Work incubator ensures a full schedule of programming geared toward entrepreneurs and established members of the business community to build knowledge, networks and access to capital. Co-Working is also viewed as more conducive to building a creative culture because of the nature of social and knowledge exchange inherent in its design. Following is a brief synopsis of a proposed Co-Working space which has been provided by ICAD. A Co-Working space is rooted in the notion that we can develop an entrepreneurial culture and take advantage of the attributes of downtown Iowa City which are so appealing to such a culture. The City and ICAD need to make conscious effort to pull together the capital assets, people, and events which will allow such a culture to take hold and flourish. We encourage you to checkout the web links listed in the attachment which will better explain the co-work space concept. We believe there are several good candidate spaces in downtown September 17, 2010 Page 2 Iowa City, some of which are now vacant or under-utilized. We would suggest that the ownership of such space be jointly by Iowa City and ICAD, with management of such space done by an independent entity that would be affiliated with the City and ICAD. Such an entity could be a spin-off of ICAD. In terms of how to proceed, ICAD has indicated they will be touring similar spaces across the United States for the next several months. A more fully developed Co-Working space proposal will be developed by the spring of 2011. You will note in the attachment that there is a proposal for $200,000 in budgeted items for FY2012. Given that this proposal may result in businesses which begin as entrepreneurial ideas in downtown Iowa City but are later spun off beyond the boundaries of Iowa City, we would suggest that it would be appropriate for funding to be budgeted from additional entities .besides the City of Iowa City. If you are interested in proceeding with the proposed Co-Working space concept, you may wish to earmark between $100,000 and $150,000 of funding in your upcoming budget preparation. This would hopefully be matched by $50,000 to $100,000 in funding from other ICAD entities or private partners. Given that this initiative can be seen as a non-bar culture downtown initiative, it may be appropriate to approach the University of Iowa to be a funding partner. We have been careful to develop our proposal in a non-duplicative manner with the existing University business incubator spaces. At the ICAD luncheon on September 15, the keynote speaker stated that we need to be involved in creating an atmosphere where an entrepreneurial culture can take root and thrive. We believe that this proposal does exactly that. Bring your questions and comments to the September 22 meeting. cc: Joe Raso, ICAD President Mark Nolte, ICAD Director of Business Development ppddir/mem/businessincubator09-16-1 a.doc Synopsis for creating a Knowledge Ecosystem: A Coworking Space Focused on Interstate Commerce End Goal: The Iowa City Area is recognized globally as having a culture for lifestyle, innovation and entrepreneurship akin to places such as Austin, TX, Boulder, CO and The Research Triangle. Rationale: People and ideas gravitate to areas where there is a vibrant energy and common spirit; new economy workers will be increasingly mobile; therefore, cities with the most appealing cultures will show the strongest economic vitality. Most of the attributes common to these well known hubs of entrepreneurial culture already exist in the Iowa City Area, yet we have not developed the culture and reputation to its fullest potential. Our challenge is to become better at pulling these assets, minds and events together in a systematic way to allow this new culture to take hold and flourish. Culture Building Process: ICAD is working with other area entities and ad hoc groups to increase programming and activities which tap into this potential and begin to generate momentum towards this culture, ideally with some level of public support. A recent example is the Tony Hsieh event at the Englert in early September. Further activities such as this will likely be held under an umbrella brand with several events in the planning stages such as "Jelly's" or coworking events, a Tech Brew with the Iowa Innovation Council, potentially a BarCamp and other lectures / speakers working up to a culminating first annual TEDx Iowa City event in the fall of 2011. Culture's Physical Address: Events and programming are a large part of building the culture; creating a dedicated space for this activity is a significant catalyst for sustaining momentum and linking people and ideas together on a daily basis. Initial discussions between ICAD and the City of Iowa City over the past few years focused on a more traditional incubation model. Our research and that of the consultant hired by the City concur best results would be obtained by creating a coworking facility as opposed to an incubation site. The former provides more flexibility, engagement and participation by a wider circle of stakeholders. Space for incubation may be created in time or identified as the need arises from this culture and the success of the coworking environment at generating new firms. What an Interstate Commerce CoWorking Facility Looks Like: Modeling from the most successful coworking sites globally, this vision would utilize between 3,000-6,000 square feet to create an inviting space that looks more retail than office (coffee shop not cubicle) in aesthetic. This space would have areas for people to work together independently with conference rooms, potentially a few rentable offices, private areas for phone calls, a reference library, fast wi/fi, copier/printer, lockable storage and a kitchenette. This space will play host to a variety of events and activities meant to bring ideas and people together as well as entities that provide valued services and support to the companies and professionals within. Examples of other coworking spaces*: hUp:/ /www.blankspaces.com/interact/commercials.ph? hUp:/ /ryanishungry.com/2007 /06/2 7/ co-working-independent-workers-unite/ hUp:/ / coworking.pbworks.com/Make-a- VIDEO Http://thinkspace.com http://citizenspace.us http://foundrvcorworkinQ.com (located in Des Moines) http://workatthefactorv.com http://coniunctured .com Iowa City Area Development Group Extraordinary opportunities in unexpected *none of these are specifically catered to interstate commerce Who this Space is for: The goal of this space is to develop crossover (culture) between the various target demographics that would find benefit in this space. One segment would be new economy workers, the 'nomads' who are working in creative fields. Many are freelancers working in coffee shops and home basements yearning for interaction and connection to other humans on a daily basis. Another group is the entrepreneurs, similarly plugging along in isolation without the interest in, or means to rent a small office during their fledgling state. They benefit from synergies and idea sharing with others in similar stages of operations. Existing firms also gain from tapping into the culture and energy such a space would offer; older firms trying to hire young professionals may not always have the right atmosphere for their tastes. With such a space, these employees could work remotely part or all of the time. As well, companies desiring to stay relevant and cutting edge will find value in knowing what is "next" if they are part of such an environment. The only shared theme between these groups is their engagement in interstate commerce and actions which attract new revenue to the area. It is this requisite which makes this space unique and provides the common bond and certain exclusivity for membership. This is a distinction important enough to be restated; membership to this space will be limited to interstate commerce activities. It is a place where people will work and collaborate in an environment which protects their privacy from outside solicitation and non beneficial disruption. While the space may look like a hip coffee shop, it is not a free for all for the general public. Rather, those individuals utilizing the space would pay a daily or monthly membership fee to gain access. Ownership I Management: ICAD concurs with the consultant that such a space should not be owned and operated by the City of Iowa City and its staff. Rather a third party should be identified or created to run the entity, perhaps as a public / private partnership. One of the challenges in our market is a lack of available commercial space at lease rates which would be financially feasible. Next Steps: ICAD is in the process of touring similar spaces across the U.S. and will develop a fully comprehensive feasibility plan by spring of 2011. We will utilize the Jelly events and other opportunities to conduct market research to understand the market viability of this space. Recommendations to City Council: If the City of Iowa City is interested in developing this culture and helping bring this space to fruition it may consider the following budget items for FY2012: $50,000 for programming and events related to developing and spurring this entrepreneurial culture. An ad hoc committee could vet ideas / make recommendations on funding support and work to place these events under an umbrella brand to ensure high visibility to the target audiences. $50,000 in challenge grants to building owners / landlords to bring second floor spaces up to code and appearance to attract creatives and emerging companies to locate downtown. $100,000 of direct grant support to a public / private partnership or private entity to create the interstate commerce coworking facility. Iowa City Area Development Group Extraordinary opportunities in J)ldces.