HomeMy WebLinkAbout2012-10-23 Resolution�kEg
3c(17)
Prepared by: Marian K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5043
RESOLUTION NO. 12 -437
RESOLUTION TO ISSUE DANCING PERMIT
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing
Permit as provided by law is hereby granted to the following named person and at the
following described locations upon his/her filing an application, having endorsed thereon
the certificates of the proper city officials as to having complied with all regulations and
ordinances, having a valid beer, liquor, or wine license /permit, to wit:
Blue Moose — 211 Iowa Avenue
Passed and approved this 23rd day of October , 24 12
MAYOR
ATTEST: ir/� 7C 7f 4rt
CITY CLERK
Approved by
City Attorney's Office
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
x Dickens
x Dobyns
x Hayek
x Mims
_ x Payne
x Throgmorton
K�
3d 1
Prepared by: Susan Dulek, Ass't. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 12 -438
RESOLUTION AMENDING IOWA CITY'S AFFORDABLE HOUSING LOCATION
MODEL TO REQUIRE THAT TWO FACTORS BE UPDATED EVERY THREE
YEARS.
WHEREAS, in Resolution No. 11 -51, the City adopted an Affordable Housing Location Model
which is based on seven factors;
WHEREAS, Resolution No. 11 -51 provides that the model shall be updated annually which
requires the data reflecting the seven factors be updated and inputted into the model each year;
WHEREAS, some of the data are more time consuming to input, some data change more from
year -to -year, and some are weighted more heavily than others;
WHEREAS, because they are relatively consistent from year to year, they are not heavily
weighted, and they are difficult to input, staff is recommending that the change in residential sale
prices and the crime density factors be updated every three years; and
WHEREAS, the City should amend the policy to require that the model incorporate the updated
data for those two factors every three years.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
The Affordable Housing Location Model adopted in Resolution No. 11 -51 shall continue to be
updated annually but that the residential sale prices and crime density factors need to be updated
only every three years.
Passed and approved this 23rd day of October , 2012.
/*Al�
MAYOR
ATTEST: ,�u� -x� e- A���fii.%
CITY )CLERK
Approved by
City Attorney's Office
Resolution No. 12 -438
Page 2
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES:
X
x
x
x
x
- x
x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
M,A4?
" 0-2x"
3d(2)
Prepared by: Melissa Clow, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5413
RESOLUTION NO. 12 -439
RESOLUTION REJECTING BIDS RECEIVED ON SEPTEMBER 27, 2012 FOR
THE IOWA CITY PUBLIC WORKS FUEL FACILITY PROJECT
WHEREAS, five bids were received on September 27, 2012, for the Iowa City Public Works Fuel
Facility Project, and the low bid exceeded the Engineer's Estimate by 18.5 %; and
WHEREAS, the Department of Public Works recommends that the Council reject all bids.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT all bids received on September 27, 2012 for the Iowa City Public Works Fuel
Facility Project are rejected.
Passed and approved this 23rd day of October
0�"/Nl
MAYOR
Approved by
20 12
ATTEST: , cc 6L /�t¢d�1 caJ�trLf J `f !✓
CITY LERK City Attorney's Office ,ollila.,
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES:
X
X
X
X
X_
X
X
NAYS:
S:\ENGT MResolutionsTroject Resolutions \Other\2012 -1002 Reject Fuel Facility.doc
10/12
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
V,)
October 23, 2012
The City Council of the City of Iowa City, State of Iowa, met in
regular session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington,
Iowa City, Iowa, at 7: 00 o'clock P .M., on the above date. There were present Mayor
Hayek , in the chair, and the following named Council Members:
Throgmorton
Absent: None
-1-
MT--T,
3d(3)
Council Member Throgmorton introduced the following Resolution
entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$2,700,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) TAXABLE URBAN
RENEWAL REVENUE BONDS, SERIES 2012, AND APPROVING ELECTRONIC
BIDDING PROCEDURES" and moved its adoption. Council Member
Champion seconded the Resolution to adopt. The roll was called and the
vote was,
AYES: Champion, Dickens, Dobyns, Hayek, Mims,
Payne Throgmotton
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No. 12 -440
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$2,700,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) TAXABLE
URBAN RENEWAL REVENUE BONDS, SERIES 2012, AND
APPROVING ELECTRONIC BIDDING PROCEDURES
WHEREAS, it is deemed necessary and advisable that the City of Iowa City, State
of Iowa, should issue its Urban Renewal Revenue Bonds to the amount of $2,700,000
(Dollar Amount Subject to Change), as authorized by Section 384.83 of the City Code of
Iowa, for the purpose of providing funds to pay costs of aiding in the planning,
undertaking and carrying out of an urban renewal project, including one or more grants to
Central Park, L.L.C. totaling $2,500,000, and
WHEREAS, pursuant to notice published as required by Section 384.83 of the
City Code of Iowa, public meeting and hearing was held on July 10, 2012, upon the
proposal to institute proceedings for the issuance of the above described bonds, and all
objections, if any, to such action made by any resident or property owner of the City were
received and considered; and, it is the decision of this governing body that additional
action be taken for the issuance of the bonds, and that such action is considered to be in
the best interests of the City and the residents thereof
WHEREAS, the Council has received information from its Financial Consultant
evaluating and recommending the procedure hereinafter described for electronic,
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facsimile and internet bidding to maintain the integrity and security of the competitive
bidding process and to facilitate the delivery of bids by interested parties; and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of both sealed and electronic
internet communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, STATE OF IOWA:
Section 1. That the receipt of electronic bids by facsimile machine and through
the Parity Competitive Bidding System described in the Notice of Sale are hereby found
and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering at public sale.
Section 2. That the Clerk is hereby directed to publish notice of sale of said bonds
at least once, the last one of which shall be not less than four clear days nor more than
twenty days before the date of the sale. Publication shall be made in Iowa City Press -
Citizen, a legal newspaper, printed wholly in the English language, published within the
county in which the bonds are to be offered for sale or an adjacent county. Said notice is
given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the
13th day of November, 2012, at 7:00 o'clock P.M., will hold a meeting to act upon bids
for said bonds, which bids were previously received and opened by City Officials at
10:00 o'clock A.M. on said date. The notice shall be in substantially the following form:
-3-
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Taxable Urban Renewal
Revenue Bonds, Series 2012, of the City of Iowa City, State of Iowa, will be received at
the office of the Finance Director, City Hall, 410 E. Washington, Iowa City, Iowa 52440
(the "Issuer ") at 10:00 o'clock A.M., on the 13th day of November, 2012. The bids will
then be publicly opened and referred for action to the meeting of the City Council in
conformity with the TERMS OF OFFERING.
The Bonds: The bonds to be offered are the following:
TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, in
the amount of $2,700,000 (Dollar Amount Subject to Change), to be dated
November 29, 2012 (the "Bonds ")
Manner of Bidding: Open bids will not be received. Bids will be received in any of
the following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the
office of the Finance Director at City Hall, 410 E. Washington, Iowa City,
Iowa 52440.
Electronic Internet Bidding: Electronic internet bids will be received at the
office of the Finance Director at City Hall, 410 E. Washington, Iowa City,
Iowa 52440. The bids must be submitted through the PARITY®
competitive bidding system.
Electronic Facsimile Bidding: Electronic facsimile bids will be received at
the office of the Finance Director at City Hall, 410 E. Washington, Iowa
City, Iowa 52440 (facsimile number: 319- 356 - 5009). Electronic facsimile
bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of
sealed bids will be announced. Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and announced.
Sale and Award: The sale and award of the Bonds will be held at the Emma J.
Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa at a meeting of the City
Council on the above date at 7:00 o'clock P.M.
Official Statement: The Issuer has issued an Official Statement of information
pertaining to the Bonds to be offered, including a statement of the Terms of Offering and
-4-
an Official Bid Form, which is incorporated by reference as a part of this notice. The
Official Statement may be obtained by request addressed to the City Clerk, City Hall, 410
E. Washington, Iowa City, Iowa 52440 or the Issuer's Financial Consultant, Public
Financial Management, Inc., 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accord with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The bonds will be sold subject to the opinion of Ahlers & Cooney,
P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished
together with the printed bonds without cost to the purchaser and all bids will be so
conditioned. Except to the extent necessary to issue their opinion as to the legality of the
bonds, the attorneys will not examine or review or express any opinion with respect to the
accuracy or completeness of documents, materials or statements made or furnished in
connection with the sale, issuance or marketing of the bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Iowa City, State of Iowa.
City Clerk, City of Iowa City, State of Iowa
(End of Notice)
-5-
PASSED AND APPROVED this 23rd day of October, 2012.
ATTEST:
City Clerk
Mayor
M�9
October 23, 2012
The City Council of the City of Iowa City, State of Iowa, met in
regular session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington,
Iowa City, Iowa, at 7:00 o'clock P.M., on the above date. There were present Mayor
Hayek , in the chair, and the following named Council Members:
Champion, Dickens, Dobyns, Hayek, Mims, Payne,
Throgmorton
Absent: None
-7-
3d(4)
Council Member Throemorton introduced the following Resolution
entitled "RESOLUTION APPROVING THE PRELIMINARY OFFICIAL
STATEMENT FOR $2,700,000 (DOLLAR AMOUNT SUBJECT TO CHANGE)
TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012" and moved its
adoption. Council Member Champion seconded the Resolution to adopt.
The roll was called and the vote was,
AYES: Champion, Dickens, Dobyns, Hayek, Mims,
None
NAYS:
Payne Throgmorton
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No. 12 -441
RESOLUTION APPROVING THE PRELIMINARY OFFICIAL
STATEMENT FOR $2,700,000 (DOLLAR AMOUNT SUBJECT TO
CHANGE) TAXABLE URBAN RENEWAL REVENUE BONDS,
SERIES 2012
WHEREAS, a preliminary form of Official Statement has been prepared for the
purpose of offering $2,700,000 (DOLLAR AMOUNT SUBJECT TO CHANGE)
TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012; and
WHEREAS, it is appropriate that the form of the Preliminary Official Statement
be approved and deemed final and, upon completion of the same, that the Preliminary
Official Statement be used in connection with the offering of the Notes for sale;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA:
Section 1. The Preliminary Official Statement, in the form presented to this
meeting, be and the same is hereby approved as to form and deemed final for purposes of
Rule 15c2 -12 of the Securities and Exchange Commission, subject to such revisions,
corrections or modifications as the City Clerk, upon the advice of the City's Financial
Advisor, shall determine to be appropriate, and is authorized to be distributed thereafter
in connection with the offering of the Notes for sale.
PASSED AND APPROVED this 23`d day of October, 2012.
ATTEST:
�i CIL _
VA
WE
A4 n
Mayor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby
certify that attached is a true and complete copy of the portion of the corporate records of
the City showing proceedings of the City Council, and the same is a true and complete
copy of the action taken by the Council with respect to the matter at the meeting held on
the date indicated in the attachment, which proceedings remain in full force and effect,
and have not been amended or rescinded in any way; that meeting and all action thereat
was duly and publicly held in accordance with a notice of meeting and tentative agenda, a
copy of which was timely served on each member of the Council and posted on a bulletin
board or other prominent place easily accessible to the public and clearly designated for
that purpose at the principal office of the Council (a copy of the face sheet of the agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty -four hours prior to the commencement of the meeting as required by law and
with members of the public present in attendance; I further certify that the individuals
named therein were on the date thereof duly and lawfully possessed of their respective
City offices as indicated therein, that no Council vacancy existed except as may be stated
in the proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the City hereto affixed this 26th day of
October , 2012•
A� ? altl _/
City erk, City of Iowa City, State of Iowa
(SEAL)
00897832 -1 \10714 -113
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 23, 2012
New Issue Rating: Application Made
In the opinion ofAhlers & Cooney, P.C., Bond Counsel, under present law and assuming continued compliance with the requirements of the Intemal Revenue Code of 1986, as amended (the
t"Code'), interest on the Bonds will be includible in the gross income for federal income tax purposes, as described in the "TAXABILITY OF INTEREST" section herein.. In addition, for
certain holders of the Bonds, subject to applicable limitations, interest on the Bonds will be exempt from the State oflowa income taxes imposed by Division 11 (Personal Net Income Tax) and
° Division III (Business Tax on Corporations) of Chapter 422 of the Code oflowa. See "STATE INCOME TAX EXEMPTION" section herein for a more detailed discussion.
o c
CITY OF IOWA CITY, IOWA
a $2,700,000* Taxable Urban Renewal Revenue Bonds, Series 2012D
N BIDS RECEIVED: Tuesday, November 13, 2012, 10:00 o'clock A.M., Central Time
`g AWARD: Tuesday, November 13, 2012, 7:00 o'clock P.M., Central Time
E2.0 Dated: Date of Delivery (November 29, 2012) Minimum Bid: $2,656,800
o ° Principal Due: June 1, 2016 -2032 Good Faith Deposit: Required of Purchaser Only
oThe $2,700,000* Taxable Urban Renewal Revenue Bonds, Series 2012D (the "Bonds ") are being issued pursuant to Chapter 403 of
b o ° the Code of Iowa, and a resolution to be adopted by the City Council of the City of Iowa City, Iowa (the "City"). The Bonds will be
y .r ; used to provide funds to pay costs of aiding in the planning, undertaking and carrying out of an urban renewal project, including one
N or more grants to Central Park, L.L.C. (the "Developer ") totaling $2.5 million. (See "AUTHORITY AND PURPOSE" section herein
c for more detailed project descriptions.) The City hereby pledges a first lien on the tax increment revenues (the "Tax Increment
Ei o Revenues ") to the payment of the Bonds. The Bonds are payable solely from Tax Increment Revenues produced by taxes levied
8 3 against the incremental values of properties located within the City — University Project I Urban Renewal Area (the "Urban Renewal
y N Area ") as described further in the "City — University Project I Urban Renewal Area" section herein. THE BONDS ARE NOT
GENERAL OBLIGATIONS OF THE CITY, they shall not constitute a debt for which the faith and credit or unlimited taxing powers
o g of the City are pledged and the City shall be in no manner be liable by reason of the failure of the Tax Increment Revenues to be
o insufficient for the payment of the Bonds.
.y a The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co.,
3 0 as nominee of The Depository Trust Company ( "DTC "). DTC will act as securities depository for the Bonds. Individual purchases
may be made in book - entry-form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive
Ra certificates representing their interest in the Bonds purchased. The City Controller, as Registrar and Paying Agent, will pay principal
s 5 °o of the Bonds, payable annually on June 1, beginning June 1, 2016, and interest on the Bonds payable initially on June 1, 2013 and
751 thereafter on each December 1 and June 1 to DTC, which will in turn remit such principal and interest to its participants for
° `= subsequent disbursements to the beneficial owners of the Bonds as described herein. Interest and principal shall be paid to the
r'a' registered holder of a bond as shown on the records of ownership maintained by the Registrar as of the 15t' day of the month
. o preceding such interest payment date (the "Record Date ").
E-
o a H The Bonds will mature June 1 in the years and amounts as follows:
R y
L ° Year Amount* Year Amount*
o y ° 2016 $120,000 2025 $160,000
2017 120,000 2026 165,000
2018 125,000 2027 170,000
2019 130,000 2028 180,000
__ 2020 135,000 2029 190,000
r o v
2021 140,000 2030 195,000
a v 3
2022 145,000 2031 205,000
y 2023 150,000 2032 215,000
o € 2024 155,000
c ° o
a Z1
€ ; *PRINCIPAL
c ° ADJUSTMENT: The City reserves the right to increase or decrease the aggregate principal amount of the Bonds in such amount to
Yproduce bond proceeds for the Developer grant in the amount of $2,500,000. However, the maximum par amount
b r of the Bonds will not exceed $3,100,000. Such change will be in increments of $5,000 and may be made in any
y of the maturities. The purchase price will be adjusted proportionately to reflect any change in issue size.
� � U
2 3 REDEMPTION: Bonds maturing after June 1, 2021 will be subject to call on said date or on any date thereafter upon terms of par
C I plus accrued interest to date of call.
0 0 "R The Bonds are offered, subject to prior sale, withdrawal or modification, when, as and if issued and subject to the legal opinion of
Ahlers & Cooney, P.C., Bond Counsel, of Des Moines, Iowa, to be furnished upon delivery of the Bonds. It is expected that the
Bonds will be available for delivery on or about November 29, 2012. This Preliminary Official Statement will be further
supplemented by offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity,
o anticipated delivery date and the identity of the underwriters, together with any other information required by law, and shall
W constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in Rule 15c2 -12.
COMPLIANCE WITH S.E.C. RULE 15c2 -12
Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations,
Securities Exchange Act of 1934, Rule 15c2 -12 Municipal Securities Disclosure.
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to
prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the
interest of receiving competitive bids in accordance with the NOTICE OF BOND SALE AND TERMS OF OFFERING
contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final
Official Statement ".
Review Period: This Preliminary Official Statement has been distributed to City staff as well as to prospective bidders
for an objective review of its disclosure. Comments or omissions or inaccuracies must be submitted to Public Financial
Management, Inc. (the "Financial Advisor ") at least two business days prior to the sale. Requests for additional
information or corrections in the Preliminary Official Statement received on or before this date will not be considered a
qualification of a bid received. If there are any changes, corrections or additions to the Preliminary Official Statement,
prospective bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the legislative body will authorize the preparation of a Final
Official Statement that includes the offering prices, interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, anticipated delivery date and other information required by law and the identity of the
underwriter (the "Syndicate Manager ") and syndicate members. Copies of the Final Official Statement will be delivered
to the Syndicate Manager within seven business days following the bid acceptance.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any
representations, other than those contained in the Preliminary Official Statement. This Preliminary Official Statement
does not constitute any offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any
person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The
information, estimates and expressions of opinion herein are subject to change without notice and neither the delivery of
this Preliminary Official Statement nor any sale made hereunder, shall, under any circumstances, create any implication
that there has been no change in the affairs of the City since the date hereof. This Preliminary Official Statement is
submitted in connection with the sale of the securities referred to herein and may not be reproduced or used, in whole or
in part, for any other purpose.
This Preliminary Official Statement and any addenda thereto were prepared relying on information from the City and
other sources, which are believed to be reliable.
Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any
opinion as to the completeness or accuracy of the information contained therein.
Compensation of the Financial Advisor, payable entirely by the City, is contingent upon the sale of the issue.
TABLE OF CONTENTS
NOTICEOF BOND SALE .................................................................................................................... ............................... i
TERMSOF OFFERING ....................................................................................................................... ............................... ii
SCHEDULEOF BOND YEARS ............................................................................ ............................... ............................vii
INTRODUCTION.................................................................................................................................. ..............................1
AUTHORITYAND PURPOSE .......................................................................................................... ..............................1
OPTIONALREDEMPTION OF THE BONDS .................................................................................. ..............................1
INTEREST ON THE BONDS; PAYMENT OF AND SECURITY FOR THE BONDS ................... ...............................
2
BOOK -ENTRY -ONLY ISSUANCE ............................................................:...................................... ..............................3
FUTUREFINANCING; LITIGATION .............................................................................................. ...............................
5
DEBTPAYMENT HISTORY; LEGALITY ...................................................................................... ...............................
5
TAXABILITYOF INTEREST ........................................................................................................... ...............................
5
STATE INCOME TAX EXEMPTION; BONDHOLDERS' RISKS .................................................. ...............................
6
RATING............................................................................................................................................. ...............................
8
FINANCIALADVISOR ..................................................................................................................... ...............................
8
CONTINUINGDISCLOSURE .......................................................................................................... ...............................
8
CERTIFICATION............................................................................................................................... ...............................
8
CITY - UNIVERSITY PROJECT I URBAN RENEWAL AREA ..................................................... ..............................9
DESCRIPTION OF CITY - UNIVERSITY PROJECT I URBAN RENEWAL PLAN / AREA ......... ...............................
9
TOP TAXPAYERS LOCATED WITHIN URBAN RENEWAL AREA ........................................... .............................10
TAXINCREMENT TAX RATES ..................................................................................................... .............................10
HISTORICAL AND PROJECTED TAXABLE VALUATIONS WITHIN THE URBAN RENEWAL AREA ............11
TAX INCREMENT CASHFLOW AND ANTICIPATED DEBT COVERAGE ............................... .............................12
URBANRENEWAL REVENUE DEBT ........................................................................................... .............................13
MAPOF URBAN RENEWAL AREA ............................................................................................... .............................14
CITYPROPERTY VALUES ............................................................................................................... .............................15
IOWAPROPERTY VALUATIONS .................................................................................................. .............................15
1/1/2011 VALUATIONS (Taxes Payable July 1, 2012 to June 30, 2013) .......................................... .............................15
2011 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY ............................................ .............................15
TRENDOF VALUATIONS ............................................................................................................... .............................16
LARGERTAXPAYERS .................................................................................................................... .............................16
CITYINDEBTEDNESS ........................................................................................................................ .............................17
DEBTLIMIT ...................................................................................................................................... .............................17
DIRECTDEBT ................................................................................................................................... .............................17
OTHERDEBT .................................................................................................................................... .............................18
INDIRECTGENERAL OBLIGATION DEBT .................................................................................. .............................18
DEBT RATIOS; LEVIES AND TAX COLLECTIONS; TAX RATES ............................................. .............................19
LEVY LIMTS; CITY FUNDS ON HAND (Cash and Investments by Fund as of July 31, 2012) ... ...............................
20
THECITY .............................................................................................................................................. .............................21
CITYGOVERNMENT ....................................................................................................................... .............................21
EMPLOYEESAND PENSIONS ...................................................................................................... ...............................
21
OTHER POST - EMPLOYMENT BENEFITS .................................................................................. ...............................
21
UNIONCONTRACTS ..................................................................................................................... ...............................
22
IMPACTOF 2008 FLOOD .............................................................................................................. ...............................
22
INSURANCE.................................................................................................................................... ...............................
22
GENERALINFORMATION ............................................................................................................... .............................23
LOCATION AND TRANSPORTATION; LARGER EMPLOYERS .............................................. ...............................
23
BUILDINGPERMITS ........................................................................................................................ .............................23
U.S. CENSUS DATA; UNEMPLOYMENT RATES ........................................................................ .............................24
EDUCATION; EFFECTIVE BUYING INCOME ............................................................................ .............................24
FINANCIAL SERVICES; FINANCIAL STATEMENTS ................................................................. .............................25
APPENDIX A - FORM OF LEGAL OPINION
APPENDIX B - JUNE 30, 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C - FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
City of Iowa City, Iowa
Mayor /City Council
Matt Hayek
Mayor
Connie Champion
Council Member
Terry Dickens
Council Member
Rick Dobyns
Council Member
Susan Mims
Council Member
Micelle Payne
Council Member
Jim Throgmorton
Council Member
Administration
Term Expires January, 2016
Term Expires January, 2014
Term Expires January, 2014
Term Expires January, 2016
Term Expires January, 2014
Term Expires January, 2016
Term Expires January, 2016
Thomas M. Markus, City Manager
Kevin O'Malley, Finance Director
Marian K. Karr, City Clerk
City Attorney
Eleanor M. Dilkes
Iowa City, Iowa
Bond Counsel
Ahlers & Cooney, P.C.
Des Moines, Iowa
Financial Advisor
Public Financial Management, Inc.
Des Moines, Iowa
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Taxable Urban Renewal Revenue Bonds, Series 2012 of the
City of Iowa City, State of Iowa, will be received at the office of the Finance Director, City Hall, 410 E. Washington, Iowa
City, Iowa 52440 (the "Issuer ") at 10:00 o'clock A.M., on the IP day of November, 2012. The bids will then be publicly
opened and referred for action to the meeting of the City Council in conformity with the TERMS OF OFFERING.
The Bonds: The bonds to be offered are the following:
TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, in the amount of $2,700,000 (Dollar
Amount Subject to Change), to be dated November 29, 2012 (the "Bonds ").
Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods:
o Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at
City Hall, 410 E. Washington, Iowa City, Iowa 52440.
o Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director
at City Hall, 410 E. Washington, Iowa City, Iowa 52440. The bids must be submitted through the
PARITY® competitive bidding system.
o Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance
Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440 (facsimile number: 319 - 356 - 5009).
Electronic facsimile bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced.
Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced.
Sale and Award: The sale and award of the Bonds will be held at the Emma J. Harvat Hall, City Hall, 410 E.
Washington, Iowa City, Iowa at a meeting of the City Council on the above date at 7:00 o'clock P.M.
Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be
offered, including a statement of the Terms of Offering and an Official Bid Form, which is incorporated by reference as a
part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, City Hall, 410 E.
Washington Street, Iowa City, Iowa 52240; or the Issuer's Financial Consultant, Public Financial Management, Inc., 801
Grand Avenue, Suite 3300, Des Moines, Iowa 50309.
Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Terms of Offering
as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines,
Iowa, as to the legality and their opinion will be furnished together with the printed bonds without cost to the purchaser and
all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the Bonds, the
attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents,
materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in
the best interests of the public.
By order of the City Council of the City of Iowa City, State of Iowa.
City Clerk, City of Iowa City, State of Iowa
(End of Notice)
CITY OF IOWA CITY, IOWA
TERMS OF OFFERING
Bids for the purchase of the City of Iowa City, Iowa's (the "City ") Taxable Urban Renewal Revenue Bonds, Series
2012D (the "Bonds ") will be received on Tuesday, November 13, 2012 before 10:00 o'clock A.M. Central Time after
which time they will be tabulated. The City Council will consider award of the Bonds at 7:00 o'clock P.M. Central
Time, on the same day. Questions regarding the sale of the Bonds should be directed to the City's Financial Advisor at
515- 243 -2600. In addition to the provisions in the NOTICE OF BOND SALE, the following section sets forth the
description of certain terms of the Bonds as well as the TERMS OF OFFERING with which all bidders and bid
proposals are required to comply, as follows:
DETAILS OF THE BONDS
TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012D (the "Bonds ") in the principal amount of
$2,700,000* to be dated the date of delivery (November 29, 2012) in the denomination of $5,000 or multiples thereof,
will mature June 1, as follows:
Year
Amount*
Year
Amount*
2016
$120,000
2025
$1601000
2017
120,000
2026
165,000
2018
125,000
2027
170,000
2019
130,000
2028
1801000
2020
135,000
2029
190,000
2021
140,000
2030
195,000
2022
145,000
2031
205,000
2023
150,000
2032
215,000
2024
155,000
* Preliminary; subject to change. The City reserves the right to increase or decrease the aggregate principal
amount of the Bonds in such amount to produce bond proceeds for the Developer grant in the amount of
$2,500,000. However, the maximum par amount of the Bonds will not exceed $3,100,000. Such change will
be in increments of $5,000 and may be made in any of the maturities. The purchase price will be adjusted
proportionately to reflect any change in issue size.
OPTIONAL REDEMPTION OF THE BONDS
Bonds due after June 1, 2021 will be subject to call prior to maturity in whole, or from time to time in part, in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon
terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days
prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the
registration books.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on June 1, 2013 and semiannually on the 0 day of December and June
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar as of the 15'b day of the month preceding such interest payment date (the "Record Date ").
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to
rules of the Municipal Securities Rulemaking Board.
GOOD FAITH DEPOSIT
A good faith deposit (the "Deposit ") in the amount of $27,000 is required from the lowest bidder only. The lowest
bidder is required to submit such Deposit payable to the order of the City in the form of either (i) a cashier's check
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provided to the City or its Financial Advisor prior to the opening of bids or (ii) a wire transfer as instructed by the
City's Financial Advisor not later than 12:00 P.M. Central Time on the day of sale of the Bonds. If not so received,
the bid of the lowest bidder may be rejected and the City may direct the second lowest bidder to submit a Deposit and
thereafter may award the sale of the Bonds to the same. No interest on a Deposit will accrue to the successful bidder
(the "Purchaser "). The Deposit will be applied to the purchase price of the Bonds. In the event a Purchaser fails to
honor its accepted bid proposal, the Deposit will be retained by the City.
FORM OF BIDS AND AWARD
All bids shall be unconditional for the Bonds for a price not less than $2,656,800, plus accrued interest, and shall
specify the rate or rates of interest in conformity to the limitations set forth under the "RATES OF INTEREST"
section. Bids must be submitted on or in substantial compliance with the OFFICIAL BID FORM provided by the
City. The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost
(the "TIC ") basis assuming compliance with the "GOOD FAITH DEPOSIT" section. The TIC shall be determined by
the present value method, i.e., by ascertaining the semiannual rate, compounded semiannually, necessary to discount to
present value as of the dated date of the Bonds, the amount payable on each interest payment date and on each stated
maturity date or earlier mandatory redemption, so that the aggregate of such amounts will equal the aggregate purchase
price offered therefore. The TIC shall be stated in terms of an annual percentage rate and shall be that rate of interest,
which is twice the semiannual rate so ascertained (also known as the Canadian Method). The TIC shall be as
determined by the Financial Advisor based on the TERMS OF OFFERING and all amendments, and on the bids as
submitted. The Financial Advisor's computation of the TIC of each bid shall be controlling. In the event of tie bids
for the lowest TIC, the Bonds will be awarded by lot.
The City will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt
of bids and award of the Bonds, (ii) reject all bids without cause and (iii) reject any bid which the City determines to
have failed to comply with the terms herein.
RATES OF INTEREST
For each bid proposal, the rates of interest must conform to the following limitations:
1. Each .annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of
maturity.
2. Rates of interest bid must be in multiples of one - eighth or one - twentieth of one percent.
3. Each rate of interest specified for any annual maturity shall not be less than a rate of interest specified for any
earlier maturity. Rates must be level or in ascending order.
RECEIPT OF BIDS
Form of Bids: Bids must be submitted on or in substantial compliance with the TERMS OF OFFERING and
OFFICIAL BID FORM provided by the City or through PARITY' competitive bidding system (the "Internet Bid
System "). The City shall not be responsible for malfunction or mistake made by any person, or as a result of the use of
an electronic bid or the means used to deliver or complete a bid. The use of such facilities or means is at the sole risk
of the prospective bidder who shall be bound by the terms of the bid as received.
No bid will be accepted after the time specified in the NOTICE OF BOND SALE. The time as maintained by the
Internet Bid System shall constitute the official time with respect to all bids submitted. A bid may be withdrawn
before the bid deadline using the same method used to submit the bid. If more than one bid is received from a bidder,
the last bid received shall be considered.
Sealed Biddiniz: Sealed bids may be submitted and will be received at the office of the Finance Director at City Hall,
410 E. Washington, Iowa City, Iowa 52440.
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Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at City Hall,
410 E. Washington, Iowa City, Iowa 52440. The bids must be submitted through the PARITY® competitive bidding
system.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for
purposes of submitting its internet bid in a timely manner and in compliance with the requirements of the TERMS OF
OFFERING and OFFICIAL BID FORM. The City is permitting bidders to use the services of the Internet Bid System
solely as a communication mechanism to conduct the Internet bidding and the Internet Bid System is not an agent of
the City. Provisions of the TERMS OF OFFERING, NOTICE OF BOND SALE and OFFICIAL BID FORM shall
control in the event of conflict with information provided by the Internet Bid System.
Electronic Facsimile Biddiniz: Electronic facsimile bids will be received at the office of the Finance Director at City
Hall, 410 E. Washington, Iowa City, Iowa 52440 (facsimile number: 319 - 356 - 5009). Electronic facsimile bids will be
sealed and treated as sealed bids.
Electronic facsimile bids received after the deadline will be rejected. Bidders electing to submit bids via facsimile
transmission bear full responsibility for the transmission of such bid. Neither the City nor its agents shall be
responsible for malfunction or mistake made by any person, or as a result of the use of the facsimile facilities or any
other means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective
bidder who shall be bound by the terms of the bid as received. Neither the City nor its agents will assume liability for
the inability of the bidder to reach the above named facsimile numbers prior to the time of sale specified above. Time
of receipt shall be the time recorded by the facsimile operator receiving the bids.
BOOK - ENTRY -ONLY ISSUANCE
The Bonds will be issued by means of a book -entry -only system with no physical distribution of bond certificates
made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the
aggregate principal amount of the Bonds maturing in each year will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of
the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof
of a single maturity through book entries made on the books and records of DTC and its participants. Principal and
interest are payable by the Registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and
interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments
to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial
owners. The Purchaser, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with
DTC.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of
the bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchaser. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser, except that, if the City has requested and received a rating on the Bonds from
a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility of the
Purchaser. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the
Purchaser shall not constitute cause for failure or refusal by the Purchaser to accept delivery on the Bonds. The City
reserves the right in its sole discretion to accept or deny changes to the financing documents requested by the insurer
selected by the Purchaser.
DELIVERY
The Bonds will be delivered to the Purchaser through DTC in New York, New York, against full payment in
immediately available cash or federal funds. The Bonds are expected to be delivered within forty-five days after the
sale. Should delivery be delayed beyond sixty days from date of sale for any reason except failure of performance by a
Purchaser, the Purchaser may withdraw their bid and thereafter their interest in and liability for the Bonds will cease.
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When the Bonds are ready for delivery, the City may give the Purchaser five working days notice of the delivery date
and the City will expect payment in full on that date, otherwise reserving the right of its option to determine that the
Purchaser has failed to comply with the offer of purchase.
INFORMATION FROM PURCHASER
The Purchaser will be required to certify to the City immediately after the opening of bids: (i) the initial public offering
price of each maturity of the Bonds (not including sales to bond houses and brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds (not less than
10% of each maturity) were sold to the public; or (ii) if less than 10% of any maturity has been sold, the price for that
maturity determined as of the time of the sale based upon the reasonably expected initial offering price to the public;
and (iii) that the initial public offering price does not exceed their fair market value of the Bonds on the sale date. The
Purchaser will also be required to provide a certificate at closing confirming the information required by this
paragraph.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to
the Bonds. The Official Statement will be further supplemented by offering prices, interest rates, selling compensation,
aggregate principal amount, principal amount per maturity, anticipated delivery date and the identity of the
underwriters, together with any other information required by law or deemed appropriate by the City, shall constitute a
Final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12 of the Securities
and Exchange Commission (the "Rule "). By awarding the Bonds to any underwriter or underwriting syndicate
submitting an OFFICIAL BID FORM therefore, the City agrees that, no more than seven (7) business days after the
date of such award, it shall provide without cost to the senior managing underwriter of the syndicate, to which the
Bonds are awarded, up to 20 copies for the Bonds of the Final Official Statement to permit each "Participating
Underwriter" (as that term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the
senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of
distributing copies of the Final Official Statement to the Participating Underwriter. Any underwriter executing and
delivering an OFFICIAL BID FORM with respect to the Bonds agrees thereby that if its bid is accepted by the City, (i)
it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters
of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other participating underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, the City will covenant and agree, for the benefit of the registered holders or
beneficial owners from time to time of the outstanding Bonds, in the resolution of the Bonds and the Continuing
Disclosure Certificate, to provide annual reports of specified information and notice of the occurrence of certain
material events as hereinafter described (the "Disclosure Covenants "). The information to be provided on an annual
basis, the events as to which notice is to be given, and a summary of other provisions of the Disclosure Covenants,
including termination, amendment and remedies, are set forth as APPENDIX C to this Preliminary Official Statement.
[The City inadvertently failed to comply with previous continuing disclosure undertakings in accordance with the
reporting requirements of paragraph (f)(3) of the Rule. The City did not timely file all outstanding financial and
operating data in accordance with the Rule with respect to its outstanding bond issuances. The City is compliant and
has filed all outstanding financial and operating data in accordance with the Rule. The City has implemented
procedures to assure future compliance with its Disclosure Covenants.]
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CUSIP NUMBERS
It is anticipated that the Committee on Uniform Security Identification Procedures ( "CUSIP ") numbers will be printed
on the Bonds and the Purchaser must agree in the bid proposal to pay the cost thereof. In no event will the City, Bond
Counsel or Financial Advisor be responsible for the review or express any opinion that the CUSIP numbers are correct.
Incorrect CUSIP numbers on said Bonds shall not be cause for the Purchaser to refuse to accept delivery of said
Bonds.
BY ORDER OF THE CITY COUNCIL
Kevin O'Malley, Finance Director
City of Iowa City, Iowa
410 East Washington Street
Iowa City, Iowa 52240
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SCHEDULE OF BOND YEARS
$2,700,000*
CITY OF IOWA CITY, IOWA
Taxable Urban Renewal Revenue Bonds, Series 2012D
Bonds Dated: November 29, 2012
Interest Due: June 1, 2013 and each December 1 and June 1 to maturity
Principal Due: June 1, 2016 -2032
* Preliminary; subject to change.
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Cumulative
Year
Principal x
Bond Years
Bond Years
2016
$120,000
420.67
420.67
2017
120,000
540.67
961.33
2018
125,000
688.19
1,649.53
2019
130,000
845.72
2,495.25
2020
135,000
1,013.25
3,508.50
2021
140,000
1,190.78
4,699.28
2022
145,000
1,378.31
6,077.58
2023
150,000
1,575.83
7,653.42
2024
155,000
1,783.36
9,436.78
2025
160,000
2,000.89
11,437.67
2026
165,000
2,228.42
13,666.08
2027
170,000
2,465.94
16,132.03
2028
180,000
2,791.00
18,923.03
2029
190,000
3,136.06
22,059.08
2030
195,000
3,413.58
25,472.67
2031
205,000
3,793.64
29,266.31
2032
215,000
4,193.69
33,460.00
Average Maturity
(dated date):
12.393 Years
* Preliminary; subject to change.
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OFFICIAL STATEMENT
CITY OF IOWA CITY, IOWA
$2,700,000* Taxable Urban Renewal Revenue Bonds, Series 2012D
INTRODUCTION
This Official Statement contains information relating to the City of Iowa City, Iowa (the "City ") and its issuance of
$2,700,000* Taxable Urban Renewal Revenue Bonds, Series 2012D (the "Bonds "). This Official Statement has been
executed on behalf of the City and its Finance Director and may be distributed in connection with the sale of the Bonds
authorized therein. Inquiries may be made to Public Financial Management, Inc., 801 Grand Avenue, Suite 3300, Des
Moines, Iowa 50309, or by telephoning 515- 243 -2600. Information can also be obtained from Mr. Kevin O'Malley,
Finance Director, City of Iowa City, 410 East Washington Street, Iowa City, Iowa 52240, or by telephoning 319 -356-
5053.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Chapter 403 of the Code of Iowa, and a resolution to be adopted by the City
Council of the City. The Bonds will be used to provide funds to pay costs of aiding in the planning, undertaking and
carrying out of an urban renewal project, including one or more construction grants to Central Park, L.L.C. (the
"Developer ") totaling $2.5 million. Pursuant to an agreement between the City and the Developer, the City will make
the construction grant to the Developer to assist with an economic development initiative called the 114 South
Dubuque Street Project (the "Project "). The Project will consist of a mixture of commercial and residential spaces
with the minimum expenditure of $10.7 million for construction costs, inclusive of architectural fees. The Project will
include a fourteen story mixed use development including 1,600 square feet ( "sq ft ") of retail space on the first level,
2,318 sq ft of retail and office space on the second level, 4,636 sq ft of office space on levels three and four and levels
five through fourteen will consist of a total of 22,818 sq feet for 26 residential units. (See "CITY - UNIVERSITY
PROJECT I URBAN RENEWAL AREA" section herein for further detailed Project descriptions.)
The estimated Sources and Uses of the Bonds are as follows:
Sources of Funds
Par Amount of Bonds
Developer Contribution
Total Sources
Uses of Funds
Developer Construction Grant
Reserve Fund
Capitalized Interest
Underwriter's Discount
Cost of Issuance & Contingency
Total Uses
* Preliminary; subject to change.
OPTIONAL REDEMPTION OF THE BONDS
$2,700,000*
170,000
$2,870,000*
$2,500,000
230,508
55,233
43,200
41,059
$2,870,000*
Bonds due after June 1, 2021 will be subject to call prior to maturity in whole, or from time to time in part, in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon
terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days
prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the
registration books.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on June 1, 2013 and semiannually on the 1" day of December and June
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar as of the 15`h day of the month preceding such interest payment date (the "Record Date ").
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to
rules of the Municipal Securities Rulemaking Board.
PAYMENT OF AND SECURITY FOR THE BONDS
The following section is a summary of the security provisions for the Bonds. A detailed description of the security
provisions is contained in the bond resolution (the "Bond Resolution "), which is available upon request.
Source of Payment: The City hereby pledges a first lien on the tax increment revenues (the "Tax Increment
Revenues ") to the payment of the Bonds. The Bonds are payable solely from Tax Increment Revenues produced by
taxes levied against the incremental values of properties located within the City — University Project I Urban Renewal
Area (the "Urban Renewal Area ") as described further in the "CITY — UNIVERSITY PROJECT I URBAN
RRENEWAL AREA" section herein. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY, they
shall not constitute a debt for which the faith and credit or unlimited taxing powers of the City are pledged and the City
shall be in no manner liable by reason of the failure of the Tax Increment Revenues to be sufficient for the payment of
the Bonds.
Tax Increment Revenues: The Tax Increment Revenues of the Urban Renewal Area shall mean the special tax fund
created by the City's TIF ordinance(s) and authorized by Section 403.19(2) of the Code of Iowa. Net revenues of the
Urban Renewal Area shall mean the Tax Increment Revenues resulting from taxes levied and collected with respect to
property located in the Urban Renewal Area, interest earned upon investment of the sinking fund and to the extent
appropriated by the City to the payment of the Bonds, such other revenues and funds of the City as are derived from or
held in connection with the Urban Renewal Area. The Urban Renewal Area is a geographic area established by the
City pursuant to Chapter 403 of the Iowa Code for such purpose as highlighted in the "MAP OF URBAN RENEWAL
AREA" section herein.
In general, Tax Increment Revenues are determined annually by multiplying the aggregate of all local tax rates,
excluding the portion of the tax rate applicable to the debt service levy for all taxing districts, the school district's
physical plant and equipment and the instructional support program levies, to the incremental assessed value.
Incremental assessed value is the difference in current assessed value and the base value for the Urban Renewal Area.
The base value is generally established as the January 1 valuation for the calendar year preceding the creation and
certification of debt for the Urban Renewal Area. The County collects the real estate taxes and distributes the Tax
Increment Revenues to the City to use in part for the repayment of tax increment debt. Tax Increment Revenues are
generally distributed by Johnson County to the City in the months of October and April.
Levy Covenants: The City covenants and agrees to maintain the Urban Renewal Area and the ordinance implementing
the tax increment mechanism in force and will annually cause the incremental taxes thereof to be levied in an amount
not less than the principal and interest coming due within the year and applied as provided in the Bond Resolution.
Reserve Fund: The City covenants to maintain a reserve fund (the "Reserve Fund ") at an amount equal to the lesser of
1) 10% of the stated principal amount of the Bonds and parity bonds or 2) the maximum annual amount of the
principal and interest coming due on the Bonds and parity bonds, or 3) 125% of the average annual principal and
interest coming due on the Bonds and parity bonds. Upon the issuance of the Bonds, the Reserve Fund will be
established at approximately $230,508 which represents the maximum annual amount of the principal and interest
coming due on the Bonds and parity bonds.
2
Prior Lien and Parily Obligations: The City will covenant within the Bond Resolution that no bonds or other
obligations may be issued secured by a claim on the Tax Increment Revenues having priority over the Bonds or parity
bonds. However, the City will reserve the right to issue additional bonds ranking on a parity with the Bonds to refund
any Bonds, parity bonds or general obligation bonds, or making extensions, additions, improvements or replacements
within the Urban Renewal Area provided that before any such bonds ranking on a parity are issued, there will have
been procured and filed with the clerk, a statement of an independent auditor or independent financial advisor, not a
regular employee of the City, reciting the opinion based upon necessary investigations that the Tax Increment
Revenues to be collected within the Urban Renewal Area for the fiscal year in which the certificate is prepared were
equal to at least 2 times the maximum amount that will be required in any fiscal year prior to the longest maturity of
any of the Bonds or parity bonds for both principal of and interest on all Bonds or parity bonds then outstanding which
are payable from the net revenues of the Urban Renewal Area, including the Tax Increment Revenues, and the
additional bonds then proposed to be issued. In additional, the additional bonds must be payable as to principal and as
to interest on the same month and day as the Bonds.
BOOK - ENTRY -ONLY ISSUANCE
The information contained in the following paragraphs of this subsection "Book -Entry -Only Issuance" has been
extracted from a schedule prepared by Depository Trust Company ( "DTC') entitled "SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING DTC AND BOOK - ENTRY -ONLY ISSUANCE. " The information in this
section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be
reliable, but the City takes no responsibility for the accuracy thereof.
The Depository Trust Company ( "DTC "), New York, NY, will act as securities depository for the securities (the
"Securities "). The Securities will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional
certificate will be issued with respect to any remaining principal amount of such issue.
DTC, the world's largest securities depository, is a limited - purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC's participants (the "Direct
Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing
Corporation ( "DTCC "). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants "). DTC has Standard &
Poor's rating: AA +. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.oriz.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (the
"Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
W
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants
acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership
interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name
of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative
of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC
nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be
provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails
an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date
identified in a listing attached to the Omnibus Proxy.
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, on
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect
from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the
Participant's interest in the Securities, on DTC's records, to Tender/Remarketing Agent. The requirement for physical
delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the
ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -
entry credit of tendered Securities to Tender/Remarketing Agent's DTC account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered to DTC.
FUTURE FINANCING
The City has no additional borrowing needs within the next 90 days of the date of this Preliminary Official Statement.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to
meet its financial obligations.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal or interest on its debt.
LEGALITY
The Bonds are subject to approval as to certain matters by Ahlers & Cooney, P.C. of Des Moines, Iowa as Bond
Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its
accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of
the financial or statistical statements, or data contained in this Official Statement and will express no opinion with
respect thereto. Form of the Legal Opinion expected to be delivered at closing are set forth as APPENDIX A to this
Official Statement.
TAXABILITY OF INTEREST
In the opinion of Bond Counsel, under existing law, interest on the Bonds will be includible in gross income of the
owners thereof for federal income tax purposes.
Any discussion of United States federal tax issues included in this Preliminary Official Statement is not intended or
written to be used, and cannot be used, by any taxpayer for the purpose of avoiding federal tax penalties that may be
imposed on the taxpayer. Such discussions were written in connection with the promotion or marketing of any Bonds.
Each taxpayer should seek advice from an independent tax advisor based on the taxpayer's particular circumstances.
The following is a summary of certain United States federal income tax consequences resulting from the beneficial
ownership of Bonds by certain persons. This summary does not consider all the possible federal income tax
consequences of the purchase, ownership, or disposition of Bonds and is not intended to reflect the individual tax
position of any beneficial owner. Moreover, except as expressly indicated, this summary is limited to those persons
who purchase the Bonds at their issue price, which is the first price at which a substantial amount of the Bonds are sold
to the public, and who hold Bonds as "capital assets" within the meaning of Section 1221 of the Code. This summary
does not address beneficial owners that may be subject to special tax rules, such as banks, insurance companies,
dealers in securities or currencies, purchasers that hold Bonds as a hedge against currency risks or as part of a straddle
with other investments or as part of a "synthetic security" or other integrated investment (including a "conversion
transaction") comprising the Bonds and one or more other investments, or United States owners that have a "functional
currency" other than the United States dollar (Special Taxpayers). This summary is applicable only to a person
( "United States Owner ") who or which is the beneficial owner of Bonds and is (a) an individual citizen or resident of
the United States, (b) a corporation created or organized under the laws of the United States or any State (including the
District of Columbia), or (c) a person otherwise subject to federal income taxation on its worldwide income. This
summary is based upon the United States tax laws and regulations currently in effect and as currently interpreted and
does not take into account possible changes in the tax laws or the interpretations, any of which may be applied
retroactively. It does not discuss the tax laws of any state, local, or foreign governments.
Payments of Stated Interest: In general, interest on the Bonds will be taxable as ordinary income at the time it is
received or accrued, depending on the beneficial owner's method of accounting for tax purposes.
STATE INCOME TAX EXEMPTION
The opinion of Bond Counsel will also state that under present laws and rulings, the interest on the Bonds is exempt
from the taxes imposed by Division II (Personal Net Income Tax) and Division III (Business Tax on Corporations) of
Chapter 422 of the Code of Iowa, as amended; it should be noted, however, that interest on the Bonds is required to be
included in adjusted current earnings to be used in computing the "state alternative minimum taxable income" of
corporations and financial institutions for purposes of Sections 422.33 and 422.60 of the Code of Iowa, as amended.
Interest on the Bonds is subject to the taxes imposed by Division V (Taxation of Financial Institutions) of Chapter 422
of the Code of Iowa, as amended.
Opinions: Bond Counsel's opinion is not a guarantee of a result, or of the transaction on which the opinion is
rendered, or of the future performance of parties to the transaction, but represents its legal judgment based upon its
review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of
the City described in this section. No ruling has been sought from the Internal Revenue Service (the "Service ") with
respect to the matters addressed in the opinion of Bond Counsel and Bond Counsel's opinion is not binding on the
Service. Bond Counsel assumes no obligation to update its opinion after the issue date to reflect any further action,
fact or circumstance, or'change in law or interpretation, or otherwise.
BONDHOLDERS' RISKS
An investment in the Bonds is subject to certain risks. No person should purchase the Bonds unless such person
understands the risks described below and is willing to bear those risks. There may be other risks not listed below
which may adversely affect the value of the Bonds.
Rebate Agreements: The City may enter into rebate agreements with respect to certain parcels of property located
within the Urban Renewal Area. As a result of covenants and terms of rebate agreements, the City would be obligated
to use Tax Increment Revenues resulting from the respective parcels subject to an agreement to pay under the rebate
agreements prior to appropriation of Tax Increment Revenues to make payment of the principal and interest on the
Bonds.
Nature of Obligation: The Bonds are not general obligations of the City but are payable solely from the Tax Increment
Revenues of the Urban Renewal Area. The Bonds are not payable by, and have no recourse to, the power of taxation.
The bondholders have no lien on or security interest in any of the physical assets of the City.
Several factors not within the control of the City could affect the City's ability to generate sufficient Tax Increment
Revenues to pay the debt service on the Bonds. These factors include, but are not limited to, changes in state law and
the default of certain taxpayers to pay their taxes when and as due. The ability of the Urban Renewal Area to generate
sufficient Tax Increment Revenues is dependent upon a number of conditions and risk factors which are unpredictable
including general economic conditions.
There are many assessed parcels of land within the Urban Renewal Area. Should any of these taxpayers not pay their
property taxes in a timely manner when due, cease to exist, suffer significant economic downturn, or otherwise cause
their assessment to be reduced in any significant respect, payment of the principal of and interest on the Bonds could
be adversely affected.
Tax Increment Revenues are determined by applying the tax rate (other than the tax rate for debt service on general
obligation debt and school district's physical plant and equipment and instructional support levies) of all taxing
districts of which the Urban Renewal Area is a part to the increase, if any, of taxable valuations within the Urban
Renewal Area over and above the valuations on January 1 of the year prior to establishment of the Urban Renewal
6
Area. Tax rates and valuations will vary from year to year and the resulting Tax Increment Revenues are subject to
influence by changes in valuations within the Urban Renewal Area or by changes in the character or classification of
taxable property, the method of assessment, the system of property taxation or the property tax applicable to the Urban
Renewal Area.
Tax Increment Revenues are collected at the time all other property taxes are collected by Johnson County and
distributed to the City. Any significant reduction on the rate of tax collection and receipt would affect the collection of
Tax Increment Revenues by the City and may adversely impair the City's ability to pay the principal of, premium, if
any, and interest on the Bonds on a timely basis.
State of Iowa Legislative Changes: From time to time the Iowa General Assembly has altered the method of property
taxation and could do so again. Any alteration in property taxation structure could affect the security and Tax
Increment Revenues available to pay the Bonds. Historically, the Iowa General Assembly has applied changes in
property taxation structure on a prospective basis; however, there is no assurance that future changes in property
taxation structure by the Iowa General Assembly will not be retroactive. The General Assembly has enacted changes
in the formula for calculation of Tax Increment Revenue by excluding all, or portions, of certain levies when
determining available Tax Increment Revenues. It is impossible to predict the outcome of future law changes by the
Iowa General Assembly. Currently, the original portion of the Urban Renewal Area is classified as a blighted area and
does not have a sunset or expiration date. Thus, the original portion of the Urban Renewal Area exceeds the maturity
date of the Bonds. The Iowa General Assembly at various times has adopted legislation limiting the terms of certain
urban renewal areas. There can be no assurance that changes in the Urban Renewal Law by the Iowa General
Assembly will not have the impact of limiting the term of the Urban Renewal Area, thus limiting the ability of the City
to pay debt service on the Bonds.
Additional Obligations: The City may incur other obligations payable from the Tax Increment Revenues of the Urban
Renewal Area.
Early Redemption: The Bonds are subject to redemption at the option of the City, in whole or in part, from any
available funds, at a redemption price equal to the principal amount of the Bonds, together with accrued interest to the
date fixed for redemption, without premium, as provided in the Bond Resolution.
Secondary Market Not Established: There is no established secondary market for the Bonds, and there is no assurance
that a secondary market will develop for the purchase and sale of the Bonds. Prices of municipal bonds traded in the
secondary market, if any, are subject to adjustment upward and downward in response to changes in the credit markets
and changes in the Tax Increment Revenues of the Urban Renewal Area. From time to time it may be necessary to
suspend indefinitely secondary market trading in selected issues of municipal bonds as a result of the financial
condition or market position, prevailing market conditions, lack of adequate current financial information about the
City, or a material adverse change in the performance of the Urban Renewal Area, whether or not the subject Bonds
are in default as to principal and interest payments, and other factors which, may give rise to uncertainty concerning
prudent secondary market practices.
Municipal bonds are generally viewed as long -term investments, subject to material unforeseen changes in the
investor's circumstances, and may require commitment of the investor's funds for an indefinite period of time, perhaps
until maturity.
Forward - Looking_ Statements: This Preliminary Official Statement contains statements relating to future results that
are "forward- looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When used in
this Preliminary Official Statement, the words "estimate ", "forecast ", "intend ", "expect" and similar expressions
identify forward- looking statements. Any forward- looking statement is subject to uncertainty. Accordingly, such
statements are subject to risks that could cause actual results to differ, possibly materially, from those contemplated in
such forward- looking statements. Inevitably, some assumptions used to develop forward- looking statements will not
be realized or unanticipated events and circumstances may occur. Therefore, investors should be aware that there are
likely to be differences between forward- looking statements and the actual results. These differences could be material
and could impact the availability of Tax Increment Revenues of the Urban Renewal Area to pay debt service when due
on the Bonds.
RATING
The City has requested ratings on the Bonds from Moody's Investors Service, Inc. ( "Moody's "). The rating on Bonds
will reflect only the view of the rating agency and any explanation of the significance of such rating may only be
obtained from Moody's. There is no assurance that such rating will continue for any period of time or that it will not
be revised or withdrawn. Any revision or withdrawal of the rating may have an effect on the market price of the
Bonds.
FINANCIAL ADVISOR
The City has retained Public Financial Management, Inc., Des Moines, Iowa as Financial Advisor in connection with
the preparation of the City's issuance of the Bonds. The Financial Advisor is not obligated to undertake, and has not
undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness
of the information contained in the Official Statement. Public Financial Management, Inc. is an independent advisory
firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other participating underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended (the "Rule "), the City will covenant and agree, for the benefit of the
registered holders or beneficial owners from time to time of the outstanding Bonds, in the resolution of the Bonds and
the Continuing Disclosure Certificate, to provide annual reports of specified information and notice of the occurrence
of certain material events as hereinafter described (the "Disclosure Covenants "). The information to be provided on an
annual basis, the events as to which notice is to be given, and a summary of other provisions of the Disclosure
Covenants, including termination, amendment and remedies, are set forth as APPENDIX C to this Preliminary Official
Statement.
[The City inadvertently failed to comply with previous continuing disclosure undertakings in accordance with the
reporting requirements of paragraph (f)(3) of the Rule. The City did not timely file all outstanding financial and
operating data in accordance with the Rule with respect to its outstanding bond issuances. The City is compliant and
has filed all outstanding financial and operating data in accordance with the Rule. The City has implemented
procedures to assure future compliance with its Disclosure Covenants.]
Breach of the Disclosure Covenants will not constitute a default or an "Event of Default" under the Bonds or the
resolution for the Bonds. A broker or dealer is to consider a known breach of the Disclosure Covenants, however,
before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City
to observe the Disclosure Covenants may adversely affect the transferability and liquidity of the Bonds and their
market price.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the
Bonds. I have reviewed the information contained within the Official Statement prepared on behalf of the City by
Public Financial Management, Inc., Des Moines, Iowa, and said Official Statement does not contain any material
misstatements of fact nor omission of any material fact regarding the issuance of $2,700,000* Taxable Urban Renewal
Revenue Bonds, Series 2012D.
CITY OF IOWA CITY, IOWA
/s/ Kevin O'Malley, Finance Director
* Preliminary; subject to change.
CITY — UNIVERSITY PROJECT I URBAN RENEWAL AREA
The City, acting under the authority of Chapter 403 of the Code of Iowa, has established an urban renewal area
designated as "City - University Project I Urban Renewal Area" (the "Urban Renewal Area ") designed to implement
their comprehensive plan.
DESCRIPTION OF CITY — UNIVERSITY PROJECT I URBAN RENEWAL PLAN /AREA
On October 2, 1969, the Iowa City Council adopted Resolution No. 2157 approving the City - University Project I
Urban Renewal Plan (Project No. IA R -14) which plan has been modified and amended from time to time (said plan,
as amended, is hereinafter referred to as the "Urban Renewal Plan" or "Plan".
The Urban Renewal Area is located in the heart of City's downtown as shown in the "MAP OF THE URBAN
RENEWAL AREA" section below. The northern edge of the original area consists of part of Washington Street with
the western edge consisting of the eastern bank of the Iowa River. The southern edge consisted of a part of Court
Street to the eastern edge which ran to Linn Street. In 2001, the original urban renewal area was expanded north to
Iowa Ave, south to Prentiss Street and east to Gilbert Street. The original Urban Renewal Area is classified as a
blighted area and does not have a sunset or expiration date. The 2001 amendment urban renewal area has a twenty
year life and is set to expire in fiscal year 2023 -24.
The objectives of the Plan called for the City to undertake a program for the clearance and reconstruction or
rehabilitation to enhance and promote the economic development within the Urban Renewal Area. Through the
implementation of the Plan, the City's overall goal is to develop and redevelop the Urban Renewal Area; to stimulate
through public action and commitments, private investment which creates employment and increases to the tax base
within the City. To further the objectives of the Plan, the City is amending the Urban Renewal Area in 2012 to extend
the boundaries south of the existing boundaries as shown in the "MAP OF THE URBAN RENEWAL AREA" section
below.
The proceeds of the Bonds will be used to provide financial assistance to the Central Park, L.L.C. (the "Developer ")
for an economic development initiative called the 114 South Dubuque Street Project (the "Project "). The Project will
consist of a mixture of commercial and residential spaces with the minimum expenditure of $10.7 million for
construction costs, inclusive of architectural fees. The preliminary design of the Project includes a 14 story mixed use
development including 1,600 square feet ( "sq ft ") of retail space on the first level, 2,318 sq ft of retail and office space
on the second level, 4,636 sq ft of office space on levels three and four and levels five through fourteen will consist of
a total of 22,818 sq feet for 26 residential units.
Pursuant to an agreement between the City and Developer, the City will make a construction grant to the Developer in
the amount of $2.5 million to assist with the construction of the Project. The City agreed to sell not less than $2.7
million of Bonds payable over a 20 year period. To help ensure the repayment of the Bonds, the Developer has signed
a Minimum Assessment Agreement which calls for the City assessor to fix the minimum assessment of the Project at
$2.88 million on January 1, 2013 payable fiscal year 2014 -15 and $5.76 million on January 1, 2014 payable fiscal year
2015 -16. The City and the Developer acknowledge and agree that construction of the Project will be substantially
complete by December 1, 2013. In addition, the Developer has agreed to another minimum assessment on another
project located at 225 South Linn Street described as Unit 101, Plaza Towers Condominium also located within the
Urban Renewal Area for $1,273,430 on January 1, 2014 payable fiscal year 2015 -16 to provide additional security for
the Bonds.
In general, Tax Increment Revenues from an Urban Renewal Area are determined annually by multiplying the
aggregate of all local taxes, excluding the portion of the overall tax rate associated with debt service, physical plant
and equipment and the instructional support program levies applicable to the taxable valuation of all property within
the Urban Renewal Area, by the aggregate difference ( "Tax Increment Valuation Available ") between the current
taxable valuation and the original taxable valuation upon creation of the Urban Renewal Area. In general, the original
taxable valuation reflects the valuation upon creation of the Urban Renewal Area (the "Frozen Base Valuation ").
Johnson County (the "County ") collects the real estate taxes and distributes the Tax Increment Revenues to the City to
use for repayment of the urban renewal revenue bonds. Tax Increment Revenues are generally distributed by the
County to the City in the months of October and April of each calendar year.
TOP TAXPAYERS LOCATED WITHIN URBAN RENEWAL AREA
The table below highlights the taxable valuation of the top taxpayers located within the Urban Renewal Area.
Taxpayer
Plaza Towers, LLC
RBD Iowa City, LLC
OC Group, LC
Midwestone Bank
Center City, LLC
1600 -1700, LLC
100 -500, LLC
Linn Street Place, LLC
Big Ten Rentals, LLC
Southtown Properties, LC
Total
1) The Total Taxable Valuation within the Urban Renewal Area for 1/1/2011 fiscal year 2012 -13 is $200,030,840.
TAX INCREMENT TAX RATES
Tax Increment Revenues are determined by applying the tax rate (other than the tax rate for debt service on general
obligation debt, the school district's physical plant and equipment levy ( "PPEL ") and the school district's instructional
support levy) of all taxing districts of which the Urban Renewal Area is a part to the increase, if any, of taxable
valuations within the Urban Renewal Area over and above the valuations on January 1 of the year prior to
establishment of the Urban Renewal Area. The table below shows the historic and current tax increment tax rate.
(Iowa City Resident within Johnson County and Iowa City Community School District) 1)
FY 2009 -10
FY 2012/13
FY 2011 -12
Taxable
% of Total
Classification
Valuation
Taxable Valuation's
Residential Condo Rentals
$10,838,332
5.42%
Sheraton Hotel
10,463,560
5.23%
Old Capital Mall
7,900,260
3.95%
Financial Institution
7,041,650
3.52%
Residential Condo Rentals
6,540,485
3.27%
Residential Condo Rentals
6,200,940
3.10%
Residential Condo Rentals
5,681,200
2.84%
Residential Condo Rentals
5,060,732
2.53%
Residential Condo Rentals
4,985,439
2.49%
Residential Condo Rentals
3,885,130
1.94%
$31.86088
$68,597,728
34.29%
1) The Total Taxable Valuation within the Urban Renewal Area for 1/1/2011 fiscal year 2012 -13 is $200,030,840.
TAX INCREMENT TAX RATES
Tax Increment Revenues are determined by applying the tax rate (other than the tax rate for debt service on general
obligation debt, the school district's physical plant and equipment levy ( "PPEL ") and the school district's instructional
support levy) of all taxing districts of which the Urban Renewal Area is a part to the increase, if any, of taxable
valuations within the Urban Renewal Area over and above the valuations on January 1 of the year prior to
establishment of the Urban Renewal Area. The table below shows the historic and current tax increment tax rate.
(Iowa City Resident within Johnson County and Iowa City Community School District) 1)
1) Any urban renewal debt incurred after April 24, 2012, will not be eligible to receive the benefits of the local school district's
instructional support program levy ("ISPL ") tax revenues unless, the ISPL is necessary to pay principal and interest on the
urban renewal debt and the school district passes a special resolution approving use of such revenues. Urban renewal debt
incurred on or before April 24, 2012, may receive the benefit of ISPL tax revenues for Fiscal Year 2013 -2014 and following
only if the ISPL is necessary to pay principal and interest on the urban renewal debt and the city certifies to the school district
by July 1 of each fiscal year, beginning July 1, 2013. The school district must then pay those amounts during that fiscal year
(Nov. 1 and May 1) back to the City's urban renewal fund. For fiscal year 2012 -13, the ISPL was $.10598.
10
FY 2009 -10
FY 2010 -11
FY 2011 -12
FY 2012 -13
Total City Tax Rate
$40.59569
$40.91519
$40.75369
$39.49917
City Debt Service
(4.21934)
(4.43847)
(4.64901)
(4.44287)
Iowa City CSD Debt Service
(0.78674)
(0.72701)
(0.74900)
(0.69729)
Iowa City CSD PPEL
(1.67000)
(1.67000)
(1.67000)
(1.67000)
Kirkwood Debt Service
(0.15908)
(0.18561)
(0.20000)
(0.20000)
Johnson County Debt Service
(0.69680)
(0.59533)
(0.47402)
(0.62813)
Tax Increment Tax Rate
$33.06373
$33.29877
$33.01166
$31.86088
1) Any urban renewal debt incurred after April 24, 2012, will not be eligible to receive the benefits of the local school district's
instructional support program levy ("ISPL ") tax revenues unless, the ISPL is necessary to pay principal and interest on the
urban renewal debt and the school district passes a special resolution approving use of such revenues. Urban renewal debt
incurred on or before April 24, 2012, may receive the benefit of ISPL tax revenues for Fiscal Year 2013 -2014 and following
only if the ISPL is necessary to pay principal and interest on the urban renewal debt and the city certifies to the school district
by July 1 of each fiscal year, beginning July 1, 2013. The school district must then pay those amounts during that fiscal year
(Nov. 1 and May 1) back to the City's urban renewal fund. For fiscal year 2012 -13, the ISPL was $.10598.
10
HISTORICAL AND PROJECTED TAXABLE VALUATIONS WITHIN THE URBAN RENEWAL AREA
The table below highlights the Urban Renewal Area's historical taxable valuation available to the City from fiscal
years 2008 -09 through 2012 -13. Pursuant to the Minimum Assessment Agreement signed by the City and the
Developer, the Project will generate an additional $5.76 million of new taxable valuation upon completion of the
Project with a partial taxable valuation starting in fiscal year 2014 -15. Finally, the table shows the historical taxable
valuation certified, as well as, the anticipated taxable valuations to be certified on December I" of each year to
facilitate the repayment of the Bonds starting in fiscal years 2013 -14 through 2030 -31. It is anticipated that the City
will need to certify approximately $7.2 million or 6.57% of the $109.5 million taxable valuation available for
certification as of fiscal year 2012 -13 to cover the debt payments on the Bonds.
Assessment
Date
FY
Year
EXISTING TAXABLE VALUATION
Total Taxable Taxable
Taxable Valuation Valuation
Valuation I) Frozen Base Available
New Taxable
Valuation
from Project
Taxable
Valuation
Available for
Certification
Taxable
Valuation
Certified
01 -01 -07
FY08 -09
180,313,465
98,607,035
81,706,430
0
81,706,430
81,706,430
01 -01 -08
FY09 -10
181,872,018
95,446,938
86,425,080
0
86,425,080
86,425,080
01 -01 -09
FY 10 -11
187,625,037
92,639,607
94,985,430
0
94,985,430
0
01 -01 -10
FY 11 -12
195,540,284
89,677,074
105,863,210
0
105,863,210
0
01 -01 -11
FY 12 -13
200,033,840
90,479,190
109,554,650
0
109,554,650
3,925,401
01 -01 -12
FY 13 -14
198,140,204
92,071,050
106,069,154
0
106,069,154
4,747,000
01 -01 -13
FY 14 -15
198,140,204
92,071,050
106,069,154
2,880,000
108,949,154
3,549,000
01 -01 -14
FY 15 -16
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,219,445
01 -01 -15
FY 16 -17
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,106,077
01 -01 -16
FY 17 -18
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,150,164
01 -01 -17
FY 18 -19
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,189,528
01 -01 -18
FY 19 -20
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,224,169
01 -01 -19
FY20 -21
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,249,196
01 -01 -20
FY21 -22
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,258,958
01 -01 -21
FY 22 -23
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,256,597
01 -01 -22
FY23 -24
198,140,204
92,071,050
106,069,154
5,760,000
111,829,154
7,241,638
01 -01 -23
FY24 -25
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,213,611
01 -01 -24
FY25 -26
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,169,523
01 -01 -25
FY 26 -27
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,108,745
01 -01 -26
FY27 -28
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,188,103
01 -01 -27
FY28 -29
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,242,268
01 -01 -28
FY29 -30
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,112,524
01 -01 -29
FY30 -31
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
7,120,397
01 -01 -30
FY 31 -32
112,812,973
50,047,502
62,765,471
5,760,000
68,525,471
1) Total taxable valuation available for certification will decrease in fiscal year 2024 -25 due to the retirement of the tax increment
of the 2001 Amended portion of the Urban Renewal Area. See "CITY — UNIVERSITY PROJECT I URBAN RENEWAL
AREA" section for further details.
11
TAX INCREMENT CASHFLOW AND ANTICIPATED DEBT COVERAGE
The following table presents the available Tax Increment Revenues for fiscal years 2011 -12 and 2012 -13. In addition,
the table provides a pro forma of the available Tax Increment Revenues for fiscal years 2013 -14 through 2031 -32
assuming the current valuations as well as valuation anticipated from the Project pursuant to the Minimum Assessment
Agreement signed by the Developer and the City on July 13, 2012 which outlines an additional $2.88 million on
January 1, 2013 payable fiscal year 2014 -15 and $5.76 million on January 1, 2014 payable fiscal year 2015 -16. Based
on the pro forma below, available Tax Increment Revenues for fiscal years 2011 -12 and 2012 -13 would have produced
the following available debt coverage:
Available TIF Increment Revenues
Maximum Annual Debt Service
Available Debt Coverage
FY 2011 -12
$3.494.720
230,508
15.16X
FY 2012 -13
$3,490,508
230,508
15.14X
The City covenants and agrees to maintain the Urban Renewal Area and the ordinance implementing the tax increment
mechanism in force and will annually cause the incremental taxes thereof to be levied in an amount not less than the
principal and interest coming due within the year and applied as provided in the Bond Resolution.
Assessment
Date
FY
Year
Taxable
Valuation
Available for
Certification 1)
Taxable
Valuation
Certified
TIF
Tax Rate Z)
Available Certified
Tax Increment Tax Increment
Revenues Revenues
Reserve
Fund
Releases)
TIF
Revenue
Bonds
Existing Annual
Certified Surplus/
Debt (Deficit)
Ending
Cash
Balance
Available
Debt
Coverage
Requested
Debt
Coverage
01 -01 -10
FYII -12
105,863,210
0
33.01166
3,494,720
0
n.a.
n.a.
01 -01 -11
FY 12 -13
109,554,650
3,925,401
31.86088
3,490,508
125,067
125,067
n.a.
n.a.
01 -01 -12
FY 13 -14
106,069,154
4,747,000
31.75490
3,368,215
150,741
109,252
41,488
30.83
1.38
01 -01 -13
FY 14-15
108,949,154
3,549,000
31.75490
3,459,669
112,698
109,253
3,445
31.67
1.03
01 -01 -14
FY 15 -16
111,829,154
7,219,445
31.75490
3,551,124
229,253
229,253
15.49
1.00
01 -01 -15
FY 16-17
111,829,154
7,106,077
31.75490
3,551,124
225,653
225,653
15.74
1.00
01 -01 -16
FY 17 -18
111,829,154
7,150,164
31.75490
3,551,124
227,053
227,053
15.64
1.00
01 -01 -17
FY 18 -19
111,829,154
7,189,528
31.75490
3,551,124
228,303
228,303
15.55
1.00
01 -01 -18
FY 19 -20
111,829,154
7,224,169
31.75490
3,551,124
229,403
229,403
15.48
1.00
01 -01 -19
FY20 -21
111,829,154
7,249,196
31.75490
3,551,124
230,198
230,198
15.43
1.00
01 -01 -20
FY21 -22
111,829,154
7,258,958
31.75490
3,551,124
230,508
230,508
15.41
1.00
01 -01 -21
FY22 -23
111,829,154
7,256,597
31.75490
3,551,124
230,433
230,433
15.41
1.00
01 -01 -22
FY23 -24
111,829,154
7,241,638
31.75490
3,551,124
229,958
229,958
15.44
1.00
01 -01 -23
FY24 -25
68,525,471
7,213,611
31.75490
2,176,019
229,068
229,068
9.50
1.00
01 -01 -24
FY25 -26
68,525,471
7,169,523
31.75490
2,176,019
227,668
227,668
9.56
1.00
01 -01 -25
FY26 -27
68,525,471
7,108,745
31.75490
2,176,019
225,738
225,738
9.64
1.00
01 -01 -26
FY27 -28
68,525,471
7,188,103
31.75490
2,176,019
228,258
228,258
9.53
1.00
01 -01 -27
FY28 -29
68,525,471
7,242,268
31.75490
2,176,019
229,978
229,978
9.46
1.00
01 -01 -28
FY29 -30
68,525,471
7,112,524
31.75490
2,176,019
225,858
225,858
9.63
1.00
01 -01 -29
FY30 -31
68,525,471
7,120,397
31.75490
2,176,019
226,108
226,108
9.62
1.00
01 -01 -30
FY31 -32
68,525,471
31.75490
2,176,019
230,508
225,858
4,650
4,650
n.a.
n.a.
1) Total taxable valuation available for certification will decrease in fiscal year 2024 -25 due to the retirement of the tax increment
of the 2001 Amended portion of the Urban Renewal Area. See "CITY - UNIVERSITY PROJECT I URBAN RENEWAL
AREA" section for further details.
2) The anticipated tax increment tax rate in fiscal year 2013 -14 reflects the loss of the local school district's instructional support
program levy ( "ISPL ") due to recent legislative changes. For fiscal year 2012 -13, the ISPL was $.10598. Actual rate will be
subject to changes in the tax rates of the taxing bodies.
3) Does not account for any earnings from the Reserve Fund.
12
URBAN RENEWAL REVENUE DEBT
Urban Renewal Revenue Debt Paid by Tax Increment Revenues (Includes the Bonds)
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11/29/12
11 /12D $2,700,000* Developer Grant 6/32 $2,700,000*
Urban Renewal Revenue Debt Service Paid by Urban Renewal Area Tax Increment Revenues
Bonds
Fiscal
Principal and
Year
Principal*
Interest*
2012 -13
$01)
2013 -14
109,252
2014 -15
109,253
2015 -16
$120,000
229,253
2016 -17
120,000
225,653
2017 -18
125,000
227,053
2018 -19
130,000
228,303
2019 -20
135,000
229,403
2020 -21
140,000
230,198
2021 -22
145,000
230,508
2022 -23
150,000
230,433
2023 -24
155,000
229,958
2024 -25
160,000
229,068
2025 -26
165,000
227,668
2026 -27
170,000
225,738
2027 -28
180,000
228,258
2028 -29
190,000
229,978
2029 -30
195,000
225,858
2030 -31
205,000
226,108
2031 -32
215,000
225,858
Total $2,700,000*
1) The June 1, 2013 interest payment in the amount of $55,233 will be capitalized with Bond proceeds.
* Preliminary; subject to change.
13
MAP OF URBAN RENEWAL AREA
Addendum No. 2
Location Map: City- University Project 1 Urban Renewal Area Amendment
Urban renewal area boundary
1969 Original Area
2001 Amended Area
® 2012 Amended Area qNF
14
CITY PROPERTY VALUES
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county
auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The
Johnson County Auditor adjusted the final Actual Values for 2011. The reduced values, determined after the
application of rollback percentages, are the Taxable Values subject to tax levy. For assessment year 2011, the taxable
value rollback rate was 50.7518% of Actual Value for residential property; 57.5411% of Actual Value for agricultural
property; and 100% of Actual Value for commercial, industrial, railroad and utility property.
The Legislature's intent has been to limit the growth of statewide taxable valuations for the specific classes of property
to 4% annually. Political subdivisions whose Taxable Values are thus reduced or are unusually low in growth are
allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services.
1/1/2011 VALUATIONS (Taxes payable July 1, 2012 to June 30, 2013)
1) Excludes Taxable TIF Increment and Ag. Land & Buildings.
15
Taxable Value
100% Actual Value
(With Rollback)
Residential
$3,284,249,136
$1,666,036,081
Commercial
1,149,535,927
1,149,535,927
Industrial
73,400,730
73,400,730
Railroads
2,619,932
2,619,932
Utilities w/o Gas & Electric
11,051,685
11,051,685
Gross valuation
$4,520,857,410
$2,902,644,355
Less military exemption
(3,096,542)
(3,096,542)
Net valuation
$4,517,760,868
$2,899,547,813
TIF increment (used to compute
debt service levies and
constitutional debt limit)
$11,712,327
$11,712,327
Taxed separately
Ag. Land & Buildings
$2,516,440
$1,477,988
Gas & Electric Utilities
$83,538,109
$47,404,050
2011 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1�
Taxable Valuation
Percent Total
Residential
$1,666,036,081
56.47%
Commercial, Industrial and Utility
1,233,988,342
41.83%
Gas & Electric Utilities
47,404,050
1.61%
Railroads
2,619,932
0.09%
Total Gross Taxable Valuation
$2,950,048,405
100.00%
1) Excludes Taxable TIF Increment and Ag. Land & Buildings.
15
TREND OF VALUATIONS
Assessment
Payable
Mid American Energy Co.
Taxable Valuation
Taxable TIF
Year
Fiscal Year
100% Actual Valuation
(With Rollback)
Increment
2007
2008 -09
$4,263,613,634
$2,453,820,284
$111,540,045
2008
2009 -10
4,376,150,525
2,559,738,879
117,812,738
2009
2010 -11
4,449,859,602
2,731,041,904
25,408,841
2010
2011 -12
4,520,142,100
2,821,191,346
25,408,838
2011
2012 -13
4,615,527,744
2,946,951,863
11,712,327
The 100% Actual Valuations, before rollback and after the reduction of military exemption, include Ag. Land &
Buildings, TIF Increment and Gas & Electric Utilities. The Taxable Valuations, with the rollback and after the
reduction of military exemption, include Gas & Electric Utilities and exclude Ag. Land & Buildings and Taxable TIF
Increment. Iowa cities certify operating levies against Taxable Value excluding Taxable TIF Increment and debt
service levies are certified against Taxable Value including the Taxable TIF Increment.
LARGER TAXPAYERS
Taxpayer Type of PropeiUBusiness
American College Testing
Commercial
Mid American Energy Co.
Utility
Gerdin, Russell A; Trustee
Commercial
Core Sycamore Town
Commercial
Alpla Inc.
Industrial
Procter & Gamble Hair Care LLC
Industrial
National Computer Systems Inc. (Pearson)
Commercial
United Natural Foods, Inc.
Commercial
Southgate Development Co. Inc.
Commercial & Residential
CCAL 100 Hawk Ridge Drive LLC
Residential
16
1/1/2011
Taxable Valuations
$47,985,260
44,301,454
20,968,050
16,374,930
16,083,213
15,085,670
14,409,710
12,902,550
12,739,270
12,052,239
CITY INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county,
municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the
corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2011 actual
valuation currently applicable to the fiscal year 2012/13, is as follows:
2011 Actual Valuation of Property
$4,618,624,286
Less: Military Exemption
(3,096,542)
Net Actual Valuation of Property
$4,615,527,744
Legal Debt Limit of 5%
0.05
Legal Debt Limit
$230,776,387
Less: Total G.O. Debt Subject to Debt Limit
(75,320,000)
Net Debt Limit
$155,456,387
DIRECT DEBT
General Obligation Debt (Includes the Bonds)
Total General Obligation Debt: $75,320,000
17
Principal
Date
Original
Final
Outstanding
of Issue
Amount
Purpose
Maturity
As of 11/29/12
3/04
7,305,000
Urban Renewal
6/23
$5,595,000
3/05A
7,020,000
City Improvements
6/15
2,375,000
6/06A
6,265,000
City Improvements
6/16
2,855,000
6/06B
1,000,000
City Improvements
6/16
475,000
9/06C
3,350,000
Refunding
6/17
1,495,000
5/07A
8,870,000
City Improvements
6/17
4,845,000
6/08A
9,150,000
City Improvements
6/18
5,850,000
10 /08B
17,005,000
Refunding
6/18
9,350,000
6/09C
6,685,000
City Improvements
6/19
4,855,000
6/09D
505,000
City Improvements
6/14
205,000
6/09E
5,840,000
Refunding
6/16
3,465,000
8/10B
7,420,000
City Improvements
6/20
5,935,000
6 /11A
7,925,000
City Improvements
6/21
7,180,000
6 /1113
820,000
City Improvements
6/13
420,000
6 /11C
10,930,000
Refunding
6/21
10,730,000
6/12A
9,070,000
City Improvements
6/22
9,070,000
6/12B
620,000
City Improvements
6/14
620,000
Total General Obligation Debt: $75,320,000
17
OTHER DEBT
The City has revenue debt payable solely from the net revenues of the Municipal Parking System as follows:
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturily As of 11/29/12
11/09 $9,110,000 Parking 7/24 $7,675,000
The City has revenue debt payable solely from the net revenues of the Municipal Water System as follows:
The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows:
1/1/2011
Percent
Principal
Date
Original
infliv
Final
Outstanding
of Issue
Amount
Purpose
Maturily
As of 11/29/12
10 /08D
$7,115,000
Water Refunding
7/24
$5,700,000
5/09B
9,750,000
Water Refunding
7/25
8,430,000
6/12C
4,950,000
Water Refunding
7/22
4,950,000
Total
$19,080,000
The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows:
INDIRECT GENERAL OBLIGATION DEBT
1/1/2011
Percent
Principal
Date
Original
infliv
Final
Outstanding
of Issue
Amount
Purpose
Maturijy
As of 11/29/12
10 /08C
$24,280,000
Sewer Refunding
7/22
$17,880,000
5/09A
8,660,000
Sewer Refunding
7/25
7,675,000
4 /10A
15,080,000
Sewer Refunding
7/20
9,650,000
Total
$35,205,000
INDIRECT GENERAL OBLIGATION DEBT
City share of total overlapping debt $32,050,183
1) Taxable Valuation includes Taxable TIF Increment; Ag Land & Building and all Utilities.
2) Excludes revenue supported debt, tax and aid anticipation certificates and school energy loans.
18
1/1/2011
Percent
City's
Taxing District
Taxable Valuation')
infliv
G.O. Debt 2)
Proportionate Share
Johnson County
$6,680,500,908
44.31%
$14,736,000
$6,529,522
Iowa City CSD
5,010,901,831
59.07%
17,990,000
10,626,693
Clear Creek -Amana CSD
776,548,219
0.01%
24,420,000
2,442
Kirkwood Comm. College
21,085,133,001
14.04%
106,065,000
14,891,526
City share of total overlapping debt $32,050,183
1) Taxable Valuation includes Taxable TIF Increment; Ag Land & Building and all Utilities.
2) Excludes revenue supported debt, tax and aid anticipation certificates and school energy loans.
18
DEBT RATIOS
Debt/Actual
Market Value Debt/67,862
G.O. Debt ($4,615,527,744)1) Population 2)
Total General Obligation Debt $75,320,000 1.63% $1,109.90
City's share of overlapping debt $32,050,183 0.69% $472.28
1) Based on City's 1/1/2011 Actual Valuation; includes TIF Increment; Ag Land & Building and all Utilities.
2) Based on 2010 U.S. Census.
LEVIES AND TAX COLLECTIONS
Taxes in Iowa are delinquent each October 1 and April 1 and a late payment penalty of 1% per month of delinquency
is enforced as of those dates. If delinquent taxes are not paid, the property may be offered at the regular tax sale on the
third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the
taxes, special assessments, interest and penalties due on the property and funds so received are applied to taxes. A
property owner may redeem from the regular tax sale but, failing redemption within three years, the tax sale purchaser
is entitled to a deed, which in general conveys the title free and clear of all liens except future tax installments.
TAX RATES
FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13
$ /$1,000
Collected During
Percent
Fiscal Year
Lev
Collection Year
Collected
2008/2009
$43,167,738
$43,136,495
99.9%
2009/2010
45,393,197
45,316,495
99.8%
2010/2011
47,788,547
47,782,881
99.9%
2011/2012
49,594,682
49,542,641
99.9%
2012/2013
50,407,375
--- - - - -In Process of Collection -
- - - - --
Taxes in Iowa are delinquent each October 1 and April 1 and a late payment penalty of 1% per month of delinquency
is enforced as of those dates. If delinquent taxes are not paid, the property may be offered at the regular tax sale on the
third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the
taxes, special assessments, interest and penalties due on the property and funds so received are applied to taxes. A
property owner may redeem from the regular tax sale but, failing redemption within three years, the tax sale purchaser
is entitled to a deed, which in general conveys the title free and clear of all liens except future tax installments.
TAX RATES
FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13
19
$ /$1,000
$ /$1,000
$ /$1,000
$ /$1,000
$ /$1,000
Johnson County
7.48663
7.38568
7.22207
6.98984
6.74909
City of Iowa City
17.71674
17.85262
17.75655
17.84150
17.26864
Iowa City CSD
14.19219
14.19136
14.68972
14.59055
14.07327
Clear Creek -Amana CSD (Clear Creek)
15.79090
15.67097
15.71002
15.54876
15.31063
Kirkwood Comm. College
0.85161
0.84042
0.92566
0.99870
1.07888
City Assessor
0.24980
0.23848
0.23472
0.24632
0.24453
County Ag. Extension
0.06700
0.08413
0.08307
0.08358
0.08146
State of Iowa
0.00350
0.00300
0.00340
0.00320
0.00320
Total Tax Rate - City Resident:
Iowa City CSD
40.56747
40.59569
40.91519
40.75369
39.49917
Clear Creek -Amana CSD (Clear Creek)
42.16618
42.07530
41.93549
41.71190
40.73653
19
LEVY LIMITS
A city's general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27
per $1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384,
Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are
limited special purpose levies which may be certified outside of the above described levy limits (Code of Iowa, Section
384.12). The amount of the City general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2012/13.
The City does levy costs for tort liability and other insurance expense and employee benefits in addition to the $8.10
general fund limit as authorized by law. In addition, the City has not established an emergency fund levy for Fiscal
Year 2012/13. Debt service levies are not limited.
CITY FUNDS ON HAND (Cash and Investments as of July 31, 2012)
City Operating Funds $150,331,391
City Restricted and Designated Funds 24,298,849
Total $174,630,240
6111
THE CITY
CITY GOVERNMENT
The City is governed by a seven member Council; each member serves a four -year term. Elections are held every two
years allowing for continuation in office of at least three members in each biennial election. The Council members are
elected at large, but three members are nominated from specific districts and the other four are nominated at large. The
Mayor is elected by the Council from its own members.
EMPLOYEES AND PENSIONS')
The City has 565 full and 74 permanent part-time employees and 356 temporary employees, including a police force of
79 sworn personnel and a fire department of 64 fire fighters. Of the City's 995 employees, 584 are enrolled in the
Iowa Public Employees Retirement System ( "IPERS ") pension plan administered by the State of Iowa. The City is
current in its obligation to IPERS, which has been as follows: $1,659,955 in Fiscal Year 2008 -09, $1,767,350 in Fiscal
Year 2009 -10 and $1,969,422 in Fiscal Year 2010 -11.
In addition to IPERS, the City is a participating employer in the Municipal Fire and Police Retirement System of Iowa
( "MFPRSI "), and is current in its contributions. MFPRSI contributions have been as follows: $1,434,031 in Fiscal
Year 2008 -09, $1,349,558 in Fiscal Year 2009 -10 and $1,826,791 in Fiscal Year 2010 -11.
1) Fiscal year 2011/12 totals are not available at the time of the release of this Preliminary Official Statement.
OTHER POST - EMPLOYMENT BENEFITS
In addition to providing pension benefits, the City offers certain health care insurance benefits to its retirees. All full -
time employees who retire or terminate /resign are offered the following post - employment benefit options:
• Health insurance and dental insurance: The option of continuing with the City's health insurance plan at the
individual's expense.
• Life insurance: The option of converting the employee's City -paid policy to an individual policy at the
individual's expense with the City's life insurance carrier.
• Long -term disability: For employees who terminate /resign and have been on the plan for a minimum of one
year, the option of converting the employee's City -paid group policy to a personal policy at the individual's
expense with the City's long -term disability insurance carrier.
The above options, while at the individual's own expense, are included within the City's overall insurance package.
Therefore, a portion of the above coverage is being subsidized by the City and its current employees. The City
currently finances the benefit plan on a pay -as- you -go basis.
The City's annual other post - employment benefits ( "OPEB ") cost is calculated based on the annual required
contribution ( "ARC ") of the City, an amount actuarially determined in accordance with the Governmental Accounting
Standards ( "GASB ") Board Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to
exceed 30 years. For the Fiscal Year 2010 -11, the annual OPEB cost was $598,776, and the net OPEB obligation was
$510,854. As of July 1, 2010, the most recent actuarial valuation date for the period July 1, 2010 through July 30,
2011 the actuarial accrued liability was $6,893,438, with no actuarial value of assets, resulting in an unfunded actuarial
accrued liability of $6,893,438.
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UNION CONTRACTS
The City currently maintains labor agreements with the American Federation of State, County, and Municipal
Employees ( "AFSCME ") and with Police ( "PLRO ") and Fire ( "IAFF ") bargaining units. Contracts have been
negotiated as follows below. The City is currently negotiating with the IAFF. A tentative agreement has been reached
but not approved by the City Council. Essentially, it follows the other two bargaining units for fiscal year 2014 and
fiscal year 2015 but in fiscal year 2016 the pay increase is 2% effective July 1.
FY 2012 -13
Jul - 1
Dec - 1
Contract Expiration
AFSCME 1.35%
1.50%
June 30, 2017
PLROAAFF 1.35%
1.50%
June 30, 2015
IAFF 1.35%
1.50%
June 30, 2013
IMPACT OF THE 2008 FLOODS
The City continues to implement its recovery efforts from the flood experienced in 2008. The City was among several
cities in Iowa that received a Presidential Disaster declaration, which brought the Federal Emergency Management
Agency ( "FEMA ") technical and financial assistance to City. These on -going efforts include relocation of the North
Wastewater Treatment Plant, elevating Dubuque Street and rebuilding Park Road Bridge, constructing levees to
prevent future flooding, as well as, rebuilding the City's animal shelter. In addition, the City received $24.6 million in
Hazard Mitigation Grants and Community Development Block Grants and is in the process of acquiring properties in
the flood - impacted neighborhoods.
The City received grants totaling $5,356,406 to assist income eligible homebuyers acquire 108 newly constructed
homes. These homes replace the homes the City lost due to the 2008 Flood. The funds are used for acquisition
assistance up to 25 -30% of the homes selling price. A total of 108 new homes were approved in the first three rounds
of the Single Family New Construction ( "SFNC ") Program. The City was recently awarded $1,390,277 to provide
acquisition assistance up to 25% of the home's cost for an additional 33 homes to be constructed by March 15, 2013.
The City and the University of Iowa have also joined together in a cooperative effort to acquire and rehabilitate 26
homes in the neighborhoods surrounding the University of Iowa Campus to ensure the neighborhoods remain vital,
safe, affordable, and attractive places to live and work for both renters and homeowners. The City secured a
$1,250,000 I -JOBS grant for the program.
INSURANCE
The City's insurance coverage is as follows:
Type of Insurance
Limit
General Liability
$20,000,000
Automobile Liability
$20,000,000
Wrongful Acts — Public Officials
$20,000,000
Law Enforcement Liability
$20,000,000
Boiler & Machinery
Blanket
$24,000,000
Extra Expense and Loss of use
$100,000
Property
Blanket
$248,000,000
Workers Compensation
Statutory
Employers Liability Each Person Accident
$2,000,000
Policy Limit Disease
$2,000,000
Each Person Disease
$2,000,000
Airport Commission
General Liability Each Occurrence
$5,000,000
Hangar Keepers Legal Liability
Each Aircraft
$1,000,000
Each Loss
$1,000,000
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GENERAL INFORMATION
LOCATION AND TRANSPORTATION
The City, with a 2010 Census population of 67,862, serves as the County seat for Johnson County. The City lies at the
intersection of Highways 80 and 380. The City is approximately 115 miles east of the City of Des Moines, 20 miles
south of the City of Cedar Rapids and 55 miles west of the City of Davenport. The Cedar Rapids Airport, located 20
miles from downtown Iowa City is served by a number of national and regional air carriers. Rail service is provided
by the mainline of the Chicago, Rock Island and Pacific Railroad.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
Employer
University of Iowa
University of Iowa Hospitals
Iowa City Comm. School District
Pearson Educational Measurement
Hy -Vee 2)
ACT, Inc
Veteran's Affairs Medical Center
Mercy Hospital
Johnson County Administration
City of Iowa City
International Automotive Components
Wal -Mart 2)
Systems Unlimited
Schenker Logistics Inc.
Type of Business Number of Employees 1)
Education
22,223
Healthcare
6,807
Education
1,735
Business Consulting
1,683
Grocery
1,407
Education Programs
1,401
Health Services
1,390
Health Services
1,388
Government
1,122 3)
Government
1,074
Plastic Foam Products
722
Retail - General Merchandise
675
Assisted Living
625
Transportation/Trucking
600
1) Includes full and part -time as well as seasonal employees.
2) Includes locations in Iowa City and Coralville.
3) Includes 559 regular employees (increase of 17 from last year) and 563 temporary Precinct Officials employed only for this
year's election activities.
Source: Phone interviews as of September, 2012.
BUILDING PERMITS
City officials report the following construction activity as of August 2012. Building permits are reported on a calendar
year basis.
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2008
2009
2010
2011
2012
New Construction:
No. of new permits:
163
178
175
145
147
Valuation:
$108,825,796
$44,124,541
$70,834,597
$57,910,359
$65,566,324
Remodeling Repair
and Additions:
No. of new permits:
644
510
609
593
362
Valuation:
$36,491,255
$31,023,251
$25,204,275
$23,789,433
$65,458,784
Total Permits
807
688
784
738
509
Total Valuations
$145,317,051
$75,147,792
$96,038,872
$81,699,792
$131,025,108
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U.S. CENSUS DATA
Population Trend
1980
U.S. Census
50,508
1990
U.S. Census
59,738
2000
U.S. Census
62,220
2002
Special City Census
62,380
2010
U.S. Census
67,862
Source: U.S. Census Bureau website.
UNEMPLOYMENT RATES
Source: Iowa Workforce Development website.
EDUCATION
Public education to the City is provided by the Iowa City Community School District, with certified enrollment on
October 1, 2011 of 12,453 for the 2012 -13 school year. There are approximately 1,676 full and part time employees of
the district. The district owns and operates several pre- school sites, eighteen elementary schools, three junior high
schools, two senior high schools, and one alternative school for ninth through twelfth graders. Education is also
provided through the Clear Creek — Amana Community School District, with certified enrollment on October 1, 2011
of 1,576 for the 2012 -13 school year. Four year college programs and vocational training are available throughout the
area including University of Iowa and Kirkwood Community College.
EFFECTIVE BUYING INCOME
Effective Buying Income and Retails Sales as reported for 2011 are as follows:
Total
Median
Johnson
State of
Iowa City $1,375,162,500
Iowa City
Coun
Iowa
Annual Averages: 2008
2.9%
3.1%
4.4%
2009
3.5%
3.9%
5.6%
2010
3.9%
4.4%
6.3%
2011
3.8%
4.3%
5.9%
2012 (Jan — Aug)
3.7%
4.0%
5.3%
Source: Iowa Workforce Development website.
EDUCATION
Public education to the City is provided by the Iowa City Community School District, with certified enrollment on
October 1, 2011 of 12,453 for the 2012 -13 school year. There are approximately 1,676 full and part time employees of
the district. The district owns and operates several pre- school sites, eighteen elementary schools, three junior high
schools, two senior high schools, and one alternative school for ninth through twelfth graders. Education is also
provided through the Clear Creek — Amana Community School District, with certified enrollment on October 1, 2011
of 1,576 for the 2012 -13 school year. Four year college programs and vocational training are available throughout the
area including University of Iowa and Kirkwood Community College.
EFFECTIVE BUYING INCOME
Effective Buying Income and Retails Sales as reported for 2011 are as follows:
Total
Median
EBI
Household EBI
Iowa City $1,375,162,500
$33,327
Johnson County 2,977,932,500
40,234
State of Iowa 57,975,146,250
38,156
Source: Claritas, Inc.
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Total Retail
Sales
$1,020,378,744
2,080,529,414
44,620,315,828
Retail Sales
Per Household
$35,354
38,130
36,634
FINANCIAL SERVICES
Commercial banking services are provided to residents of the City by Farmers & Merchants Savings Bank and
MidWestOne Bank') and branch offices of American Bank and Trust Company, N.A., Bank of the West, Corridor
State Bank, First American Bank, Hills Bank and Trust Company, Liberty Bank, FSB, U.S. Bank, N.A., Wells Fargo
Bank, N.A. and West Bank. Farmers & Merchants Savings Bank and MidWestOne Bank report the following annual
deposits as of December 31 of each year:
Farmers & Merchants
Year Ending
Savin sg Bank
2007
$84,128,000
2008
86,052,000
2009
81,823,000
2010
77,470,000
2011
82,982,000
1) Formerly Iowa State Bank & Trust Company.
Source: FDIC official website.
FINANCIAL STATEMENTS
MidWestOne Bank's
$454,789,000
1,136,987,000
1,186,400,000
1,223,944,000
1,308,061,000
The City's JUNE 30, 2011 COMPRENSIVE ANNUAL FINANCIAL REPORT is reproduced as APPENDIX B. The
City's certified public accountant has not consented to distribution of the audited financial statements and has not
undertaken added review of their presentation. Further information regarding financial performance and copies of the
City's prior Comprehensive Annual Financial Reports may be obtained from the City's Financial Advisor, Public
Financial Management, Inc.
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APPENDIX A
FORM OF LEGAL OPINION
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AHLERS C COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE: 515- 243 -7611
FAX: 515- 243 -2149
W W W.A H LERSLA W.COM
We hereby certify that we have examined a certified transcript of the proceedings
of the City Council and acts of administrative officers of the City of Iowa City, State of
Iowa (the "Issuer "), relating to the issuance of Taxable Urban Renewal Revenue Bonds,
Series 2012D, by the City, dated November 29, 2012, in the denomination of $5,000 or
multiples thereof, in the aggregate amount of $
We have examined the law and such certified proceedings and other papers as we
deem necessary to render this opinion as bond counsel.
As to questions of fact material to our opinion, we have relied upon
representations of the Issuer contained in the resolution authorizing issuance of the Bonds
(the "Resolution ") and in the certified proceedings and other certifications of public
officials furnished to us, without undertaking to verify the same by independent
investigation.
We have not been engaged to or undertaken to review the accuracy, completeness
or sufficiency of the official statement or other offering material relating to the Bonds and
we express no opinion relating thereto.
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic
and political subdivision of the State of Iowa with the corporate power to adopt and
perform the Resolution and issue the Bonds.
2. The Notes are valid and binding obligations of the Issuer payable from Tax
Increment Revenues levied and to be collected against the Project Area, as defined in the
Resolution Authorizing Issuance, approved on November 13, 2012, and located within
the City — University Project I Urban Renewal Area within said City. The pledge of
incremental taxes constitutes a first lien upon the collection thereof subject, however, to
the other terms and conditions of the Resolution.
WISHARD & BAILY- 1888; GUERNSEY & BAILY- 1893; BAILY & STIPP- 1901; STIPP, PERRY, BANNISTER & STARZINGER- 1914; BANNISTER, CARPENTER,
AHLERS & COONEY- 1950: AHLERS. COONEY. DORWEILER. ALLBEE. HAYNIE & SMITH- 1974: AHLERS. COONEY. DORWEILER. HAYNIE. SMITH & ALLBEE. P.C.
City of Iowa City, Iowa
$ Taxable Urban Renewal
Revenue Bonds, Series 2012D
Page 2
The lien of the Bonds ranks on a parity as to the pledge of revenues with respect to
Additional Bonds. The right to issue Additional Bonds is reserved upon conditions set
forth in the Resolution.
3. Incremental taxes are determined by applying the tax rate (other than debt
service and physical plant and equipment taxes) of all taxing districts to the increase, if
any, of the taxable valuations on the Project Area within the City — University Project I
Urban Renewal Area over and above the valuations of January 1 of the year prior to the
commencement of that project. Tax rates and valuations will vary from year to year and
the resulting incremental taxes are subject to influence by changes in valuations within
the Project Area, or by changes in the character or classification of taxable property, the
method of assessment, the system of property taxation or the property tax applicable to
the Project Area. Further, there can be no assurance that such incremental taxes will be
sufficient in any year to pay principal of and interest on the Notes when due.
4. The interest on the Notes is not excluded from gross income for federal
income tax purposes under Section 103(a) of the Internal Revenue Code of 1986, as
amended. THE HOLDERS OF THE NOTES SHOULD TREAT THE INTEREST
THEREON AS SUBJECT TO FEDERAL INCOME TAXATION. We express no other
opinion regarding any other federal or state income tax consequences caused by the
receipt or accrual of interest on the Notes.
It is to be understood that the rights of the holders of the Bonds and the
enforceability thereof may be subject to bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights heretofore or hereafter
enacted to the extent constitutionally applicable and that their enforcement may also be
subject to the exercise of judicial discretion in appropriate cases.
Respectfully submitted,
00896201 -1 \10714 -113
APPENDIX B
JUNE 30, 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
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APPENDIX C
FORM OF CONTINUING DISCLOSURE CERTIFICATE
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CIG27.TXT
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed
and delivered by the City of Iowa City, State of Iowa (the "Issuer "), in connection with
the issuance of $ Taxable Urban Renewal Revenue Bonds,
Series 2012D (the 'Bonds ") dated November 29, 2012. The Bonds are being issued
pursuant to a Resolution of the Issuer approved on November 13, 2012 (the
"Resolution "). The Issuer covenants and agrees as follows:
SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is
being executed and delivered by the Issuer for the benefit of the Holders and Beneficial
Owners of the Bonds and in order to assist the Participating Underwriters in complying
with S.E.C. Rule 15c2- 12(b)(5).
SECTION 2. Definitions. In addition to the definitions set forth in the Resolution,
which apply to any capitalized term used in this Disclosure Certificate unless otherwise
defined in this Section, the following capitalized terms shall have the following
meanings:
"Annual Report" shall mean any Annual Report provided by the Issuer pursuant
to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or
indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds
(including persons holding Bonds through nominees, depositories or other
intermediaries), or (b) is treated as the owner of any Bonds for federal income tax
purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on
which banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent
designated in writing by the Issuer and which has filed with the Issuer a written
acceptance of such designation.
"Holders" shall mean the registered holders of the Bonds, as recorded in the
registration books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this
Disclosure Certificate.
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board, 1900 Duke Street, Suite 600, Alexandria, VA 22314.
"National Repository" shall mean the MSRB's Electronic Municipal Market
Access website, a/k/a "EMMA" (emma.msrb.org).
"Participating Underwriter" shall mean any of the original underwriters of the
Bonds required to comply with the Rule in connection with offering of the Bonds.
"Rule" shall mean Rule 15c2- 12(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as the same may be amended
from time to time.
"State" shall mean the State of Iowa.
SECTION 3. Provision of Annual Reports.
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than
three hundred sixty -five (365) days after the end of the Issuer's fiscal year
(presently June 30th), commencing with the report for the 2011/2012 fiscal
year, provide to the National Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate.
The Annual Report must be submitted in such format as is required by the
MSRB (currently in "searchable PDF" format). The Annual Report may be
submitted as a single document or as separate documents comprising a
package. The Annual Report may cross - reference other information as
provided in Section 4 of this Disclosure Certificate; provided that the
audited financial statements of the Issuer may be submitted separately from
the balance of the Annual Report and later than the date required above for
the filing of the Annual Report if they are not available by that date. If the
Issuer's fiscal year changes, it shall give notice of such change in the same
manner as for a Listed Event under Section 5(c).
(b) If the Issuer is unable to provide to the National Repository an Annual
Report by the date required in subsection (a), the Issuer shall send a notice
to the Municipal Securities Rulemaking Board, if any, in substantially the
form attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) each year file the Annual Report with the National Repository; and
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(ii) (if the Dissemination Agent is other than the Issuer), file a report
with the Issuer certifying that the Annual Report has been filed
pursuant to this Disclosure Certificate, stating the date it was filed.
SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain
or incorporate by reference the following:
(a) The last available audited financial statements of the Issuer for the prior
fiscal year, prepared in accordance with generally accepted accounting
principles promulgated by the Financial Accounting Standards Board as
modified in accordance with the governmental accounting standards
promulgated by the Governmental Accounting Standards Board or as
otherwise provided under State law, as in effect from time to time, or, if
and to the extent such financial statements have not been prepared in
accordance with generally accepted accounting principles, noting the
discrepancies therefrom and the effect thereof. If the Issuer's audited
financial statements for the preceding years are not available by the time
the Annual Report is required to be filed pursuant to Section 3(a), the
Annual Report shall contain unaudited financial statements in a format
similar to the financial statements contained in the final Official Statement,
and the audited financial statements shall be filed in the same manner as the
Annual Report when they become available.
b) A table of the type contained in the final Official Statement under the
captions "Top Taxpayers Located Within Urban Renewal Area, "Tax
Increment Tax Rates ", and Tax Increment Cashflow And Anticipated Debt
Coverage.
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public
entities, which have been filed with the National Repository. The Issuer shall clearly
identify each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause
to be given, notice of the occurrence of any of the following events with
respect to the Bonds in a timely manner not later than 10 Business Days
after the day of the occurrence of the event;
(1) Principal and interest payment delinquencies;
3
(2) Non - payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to
perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service
of proposed or final determinations of taxability, Notices of
Proposed Issue (IRS Form 5701 -TEB) or other material notices or
determinations with respect to the tax- exempt status of the Series
Bonds, or material events affecting the tax - exempt status of the
Bonds;
(7) Modifications to rights of Holders of the Bonds, if material;
(8) Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
(9) Defeasances of the Bonds;
(10) Release, substitution, or sale of property securing repayment of the
Bonds, if material;
(11) Rating changes on the Bonds;
(12) Bankruptcy, insolvency, receivership or similar event of the Issuer;
(13) The consummation of a merger, consolidation, or acquisition
involving the Issuer or the sale of all or substantially all of the assets
of the Issuer, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material; and
(14) Appointment of a successor or additional trustee or the change of
name of a trustee, if material.
4
(b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event, the Issuer shall determine if the occurrence is subject to notice only
if material, and if so shall as soon as possible determine if such event would
be material under applicable federal securities laws.
(c) If the Issuer determines that knowledge of the occurrence of a Listed Event
is not subject to materiality, or determines such occurrence is subject to
materiality and would be material under applicable federal securities laws,
the Issuer shall promptly, but not later than 10 Business Days after the
occurrence of the event, file a notice of such occurrence with the Municipal
Securities Rulemaking Board through the filing with the National
Repository.
SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under
this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds or upon the Issuer's receipt of an opinion of nationally
recognized bond counsel to the effect that, because of legislative action or final judicial
action or administrative actions or proceedings, the failure of the Issuer to comply with
the terms hereof will not cause Participating Underwriters to be in violation of the Rule
or other applicable requirements of the Securities Exchange Act of 1934, as amended. If
such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5(c).
SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or
engage a Dissemination Agent to assist it in carrying out its obligations under this
Disclosure Certificate, and may discharge any such Agent, with or without appointing a
successor Dissemination Agent. The Dissemination Agent shall not be responsible in any
manner for the content of any notice or report prepared by the Issuer pursuant to this
Disclosure Certificate. The initial Dissemination Agent shall be the Issuer.
SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision of this Disclosure Certificate may be waived, provided that the following
conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or
5(a), it may only be made in connection with a change in circumstances that
arises from a change in legal requirements, change in law, or change in the
identity, nature or status of an obligated person with respect to the Bonds,
or the type of business conducted;
J
(b) The undertaking, as amended or taking into account such waiver, would, in
the opinion of nationally recognized bond counsel, have complied with the
requirements of the Rule at the time of the original issuance of the Bonds,
after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the Holders of the
Bonds in the same manner as provided in the Resolution for amendments to
the Resolution with the consent of Holders, or (ii) does not, in the opinion
of nationally recognized bond counsel, materially impair the interests of the
Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the
Issuer shall describe such amendment in the next Annual Report, and shall include, as
applicable, a narrative explanation of the reason for the amendment or waiver and its
impact on the type (or in the case of a change of accounting principles, on the
presentation) of financial information or operating data being presented by the Issuer. In
addition, if the amendment relates to the accounting principles to be followed in
preparing financial statements, (i) notice of such change shall be given in the same
manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year
in which the change is made will present a comparison or other discussion in narrative
form (and also, if feasible, in quantitative form) describing or illustrating the material
differences between the financial statements as prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the
means of dissemination set forth in this Disclosure Certificate or any other means of
communication, or including any other information in any Annual Report or notice of
occurrence of a Listed Event, in addition to that which is required by this Disclosure
Certificate. If the Issuer chooses to include any information in any Annual Report or
notice of occurrence of a Listed Event in addition to that which is specifically required by
this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to
update such information or include it in any future Annual Report or notice of occurrence
of a Listed Event.
SECTION 10. Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds
may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Issuer to comply with its obligations
under this Disclosure Certificate. Direct, indirect, consequential and punitive damages
shall not be recoverable by any person for any default hereunder and are hereby waived
6
to the extent permitted by law. A default under this Disclosure Certificate shall not be
deemed an event of default under the Resolution, and the sole remedy under this
Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
SECTION 11. Duties, Immunities and Liabilities of Dissemination Alzent. The
Dissemination Agent shall have only such duties as are specifically set forth in this
Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination
Agent, its officers, directors, employees and agents, harmless against any loss, expense
and liabilities which it may incur arising out of or in the exercise or performance of its
powers and duties hereunder, including the costs and expenses (including attorneys fees)
of defending against any claim of liability, but excluding liabilities due to the
Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer
under this Section shall survive resignation or removal of the Dissemination Agent and
payment of the Bonds.
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the
benefit of the Issuer, the Dissemination Agent, the Participating Underwriters and
Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights
in any other person or entity.
Date: day of , 2012.
ATTEST:
In
City Clerk
CITY OF IOWA CITY, STATE OF IOWA
7
Mayor
EXHIBIT A
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Iowa City, Iowa.
Name of Bond Issue: $ Taxable Urban Renewal
Revenue Bonds, Series 2012D
Dated Date of Issue: November 29, 2012
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report
with respect to the above -named Bonds as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer
anticipates that the Annual Report will be filed by
Dated: day of
CITY OF IOWA CITY, STATE OF IOWA
By:
Its:
00896200 - 1110714 -113
OFFICIAL BID FORM
TO: City Council of Sale Date: November 13, 2012
City of Iowa City, Iowa 10:00 AM Central Time
RE: $2,700,000* Taxable Urban Renewal Revenue Bonds, Series 2012D (the "Bonds ")
For all or none of the above Bonds, in accordance with the TERMS OF OFFERING, we will pay you
$ (not less than $2,656,800) plus accrued interest to date of delivery for fully
registered bonds bearing interest rates and maturing in the stated years as follows:
Coupon Maturi
CoRon Maturi
2016
2025
2017
2026
2018
2027
2019
2028
2020
2029
2021
2030
2022
2031
2023
2032
2024
* Preliminary; subject to change. The City reserves the right to increase or decrease the aggregate principal
amount of the Bonds in such amount to produce bond proceeds for the Developer grant in the amount of
$2,500,000. However, the maximum par amount of the Bonds will not exceed $3,100,000. Such change will
be in increments of $5,000 and may be made in any of the maturities. The purchase price will be adjusted
proportionately to reflect any change in issue size.
In making this offer we accept all of the terms and conditions of the TERMS OF OFFERING published in the Preliminary
Official Statement dated October 23, 2012. In the event of failure to deliver these Bonds in accordance with the TERMS
OF OFFERING as printed in the Preliminary Official Statement and made a part hereof, we reserve the right to withdraw
our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are
intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we
have made the following computations:
NET INTEREST COST: $
TRUE INTEREST COST:
Account Manager:
Account Members:
% (Calculated to the dated date of November 29, 2012)
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Iowa City, Iowa this 13th day of
November 2012.
Attest:
Title:
By:
Title:
ml�
3d(5)
Prepared by: Sara Hektoen, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240; (319) 356 -5030
RESOLUTION NO. 12 -442
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST THE PARTIAL RELEASE OF LIEN PLACED ON PROPERTY
PURSUANT TO THE CLEAR CREEK MORTGAGE.
WHEREAS, on April 25, 2005, the owners, Southgate Development Company, Inc., and Clear
Creek, L.L.C. executed a Mortgage with the City of Iowa City to secure a loan for the
construction of Camp Cardinal Boulevard; and
WHEREAS, said mortgage was recorded on May 17, 2005, in Book 3877, Pages 419 -428, in
the records of the Johnson County, Iowa Recorder; and
WHEREAS, said mortgage contains a scrivener's error resulting an unintentional encumbrance
of land not owned by Southgate Development Company, Inc. or Clear Creek, L.L.C.; and
WHEREAS, it is the City of Iowa City's responsibility to release this lien.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that the Mayor is authorized to sign and the City Clerk to attest the attached
Partial Release of Lien whereby the City does release the lien for the property as described in
the attached release, and to record the same at City expense.
Passed and approved this 2 -ird day of october , 2012.
v ". M
-
ATTEST:
CIT -LERK
Ap roved by
City Attorney's Office kokA o-
Resolution No. 12 -442
Page 2
It was moved by Throgmorton . and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
x
x
x
x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
Prepared by & Return to: Sara Hektoen, Asst. City Attorney; 410 E. Washington St., Iowa City, IA 52240; (319) 356 -5030
PARTIAL RELEASE OF REAL ESTATE MORTGAGE
The undersigned, the present owner of the mortgage hereinafter described, for valuable
consideration, receipt of which is hereby acknowledged, does hereby acknowledge that the following
described real estate situated in Johnson County, Iowa, to wit:
The Southwest Quarter of the Northeast Quarter of Section 12, Township 79 North,
Range 6 West of the 5t' P.M., excepting therefrom the following: that portion thereof
conveyed to the State of Iowa for highway purposes by deed recorded in Book 601,
Page 23, Records of Johnson County, Iowa,
is hereby released from the lien of the real estate mortgage, executed by Southgate Development
Company, Inc., and Clear Creek, L.L.C., recorded in the records of the Office of the Recorder of
Johnson County, State of Iowa, on May 17, 2005, in Book 3877, Page 419, specifically reserving and
retaining the mortgage lien and all mortgage rights against all of the remaining property embraced in
the mortgage above described.
Words and phrases herein, including acknowledgment hereof, shall be construed as in the
singular or plural, and as masculine, feminine or neuter gender, according to the context.
Dated this 2 3e-0 day of 0 c, o a p p , 2012.
CITY OF IOWA CITY, IOWA
A Municipal Corporation
By:
Matthew J. Hayek, Mayor
By: 7&tte,;,.v,) - .
Marian K. Karr, City Clerk
STATE OF IOWA; JOHNSON COUNTY ) ss:
On this EU Aay of Oe lipg- , 2012, before me, the undersigned, a Notary Public in and for said County and State,
personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being by me duly sworn, did say
that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing
instrument; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on
behalf of said municipal corporation by authority of City Council of said municipal corporation; and that the said Matthew J.
Hayek and Marian K. Karr acknowledged the execution of said instrument to be the voluntary act and deed and said
municipal corporation, by it and by them voluntarily executed.
W o m„ SONDRAE FORT
Commisslon Number 159781 Se,,,c�nc�_ r�
My Com salon ExpUes Notary Public in and for the State of Iowa
o 3 ov
MID
Prepared by: Dave Panos, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5145
RESOLUTION NO. 12 -443
RESOLUTION ACCEPTING THE WORK FOR THE NORTH DODGE STREET
PEDESTRIAN BRIDGE OVER 1 -80 [ESIM- 080 - 6(285)243— OS -52] PROJECT
WHEREAS, the Engineering Division has recommended that the work for construction of the
North Dodge Street Pedestrian Bridge Over 1 -80 Project, as included in a contract between the
City of Iowa City and Peterson Contractors, Inc. of Reinbeck, Iowa, dated March 2, 2010, be
accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
WHEREAS, funds for this project are available in the Dodge St./ 180 Pedestrian Bridge account #
3925 - 434720; and
WHEREAS, the final contract price is $2,320,079.56.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 23rd day of October
20 12
MAYOR
Approved by
ATTEST: 7C • �Q�iti m a-e,L4 O-D-y7
CITY -L- ERK City Attorney's Office )o
117
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES:
x
x
x
—x
x
x
— x
Pwen g /masters/acptwork. doc
10/12
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
r�
3d(6)
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
ENGINEER'S REPORT www.icgo -v.org
October 10, 2012
City Clerk
City of Iowa City, Iowa
Re: North Dodge Street Pedestrian Bridge Over 1 -80 Project
Dear City Clerk:
I hereby certify that the construction of the North Dodge Street Pedestrian Bridge
Over 1 -80 Project has been completed by Peterson Contractors, Inc. of
Reinbeck, Iowa, in substantial accordance with the plans and specifications
prepared by the City of Iowa City.
The final contract price of the project is $2,320,079.56.
I recommend that the above - referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Ronald R. Knoche, P.E.
City Engineer
M4) .
Prepared by: Kumi Morris, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5044
RESOLUTION NO. 12 -444
RESOLUTION ACCEPTING THE WORK FOR THE EECBG ROBERT A. LEE
RECREATION CENTER IMPROVEMENT PROJECTS 2011
WHEREAS, the Engineering Division has recommended that the work for construction of the
EECBG Robert A. Lee Recreation Center Improvement Projects 2011, as included in a contract
between the City of Iowa City and Advanced Electrical Services Inc., of Iowa City, Iowa dated May
23, 2011, be accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
Engineering Division office of Public Works; and
WHEREAS, funds for this project are available in the Energy Efficiency and Conservation Block
Grant Program account, under account number 2310.
WHEREAS, the final contract price is $47,798.00
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 23rd day of October 20 12
ATTEST:
CIT -ERK
MAYOR
Approved by
City Attorney's Office 10(l 11 lZ
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Champion
x Dickens
x Dobyns
—�--- Hayek
X
Mims
X Payne
— x Throgmorton
x
10/12
October 10, 2012
Honorable Mayor and City Council
Iowa City, Iowa
Re: EECBG Robert A. Lee Recreation Center Improvement Projects 2011
Dear Honorable Mayor and Councilpersons:
r 3d(7)
�►'''*'"r'�Nut-
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
www.icgov.org
I hereby certify that Advanced Electrical Services Inc., of Iowa City, Iowa has completed the
construction of the EECBG Robert A. Lee Recreation Center Improvement Projects 2011 in
substantial accordance with the plans and specifications prepared by Shive Hattery of Iowa City,
Iowa. The project was bid as a competitive quotation and an agreement was dated on May 23,
2011. The required performance and payment bond is on file in the Engineering Division office
of Public Works.
The final contract price is $47,798.00
I recommend that the above - referenced improvements be accepted by the City of Iowa City.
Sincerely,
Ronald Knoche, P.E.
City Engineer
S:\ENGIARCHIT- 11Projects\ ENERGY- 11PROJEC- 11EECBGR- 1.LEEICLOSEO- 21EngRpt EECBG Robert A. Lee Recreation Center Improvement Projects 2011 - competitive
quotation approved on 10 23 2012.doc
Prepared by: Kumi Morris, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5044
RESOLUTION NO. 12 -445
RESOLUTION ACCEPTING THE WORK FOR THE EECBG WASTEWATER
DIVISION LIGHTING PROJECT
WHEREAS, the Engineering Division has recommended that the work for construction of the
EECBG Wastewater Division Lighting Project, as included in a contract between the City of Iowa
City and Advanced Electrical Services Inc., of Iowa City, Iowa dated May 12, 2011, be accepted;
and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
Engineering Division office of Public Works; and
WHEREAS, funds for this project are available in the Energy Efficiency and Conservation Block
Grant Program account, under acco unt number
WHEREAS, the final contract price is $60,510.00
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 23___ ra day of October , 20 -12-
J A A
ei 114 A 014
MAW
A
MAYOR
Approved by
City Attorney's Office io a (2
It was moved by Thro mg Orton and seconded by Chamvion the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
Dickens
x Dobyns
x Hayek
--x — Mims
—�-- Payne
x Throgmorton
x
10/12
October 10, 2012
Honorable Mayor and City Council
Iowa City, Iowa
Re: EECBG Wastewater Division Lighting Project
3d(8)
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
www.icgov.org
Dear Honorable Mayor and Councilpersons:
I hereby certify that Advanced Electrical Services Inc., of Iowa City, Iowa has completed the with
construction of the EECBG Wastewater Division
he Engineering Division on of thetCityaof Iowa City. The
the plans and specifications prepared by
project was bid as a competitive quotation and an agreement was dated on May 12, 2011. The
required performance and payment bond is on file in the Engineering Division office of Public
Works.
The final contract price is $60,510.00
1 recommend that the above - referenced improvements be accepted by the City of Iowa City.
Sincerely,
'—e /
Ronald Knoche, P.E.
City Engineer
S: \ENG\HRCHIT-1\ Projects\ ENERGY- 1\PROJEC- 1 \EECBGG -1 \CLOSED -1 \EECBG wastewater Division Lighting Project Resolution to accept 10 10 2012.doc
N-\4-9
Prepared by: Kimberly Sandberg, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5139
RESOLUTION NO. 12 -446
RESOLUTION ACCEPTING THE WORK FOR THE CDBG ASBESTOS
ABATEMENT PROJECT - CONTRACT #8
WHEREAS, the Engineering Division has recommended that the work for construction of the
CDBG Asbestos Abatement Project - Contract #8, as included in a contract between the City of
Iowa City and Advanced Environmental of Waterloo, Iowa, dated September 7, 2012, be
accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
City Engineer's office; and
WHEREAS, funds for this project are available in the CDBG account # 813 -2300; and
WHEREAS, the final contract price is $21,425.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 23rd day of October 20 12
k'`� A
MAYOR
Approved by
ATTEST:
CIT ERK City Attorney's Office /o( //// a,
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES:
M4
x
x
x
x
x
Pweng /masters /acptwork.doc
10/12
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
r --W-23-i 2
tit —own
i
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
ENGINEER'S REPORT www.icgov.org
October 9, 2012
City Council
City of Iowa City, Iowa
Re: CDBG Asbestos Abatement Project - Contract #8
Dear City Council:
I hereby certify that the CDBG Asbestos Abatement Project - Contract #8 has
been completed by Advanced Environmental of Waterloo, IA, in substantial
accordance with the plans and specifications prepared by the City of Iowa City.
The final contract price is $21,425.00.
I recommend that the above - referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Ronald Knoche, P.E.
City Engineer
M13
Prepared by: Denny Gannon, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5142
RESOLUTION NO. 12 =447
RESOLUTION ACCEPTING THE WORK FOR THE SANITARY SEWER, STORM
SEWER, WATER MAIN, CERTAIN SIDEWALK AND PAVING PUBLIC
IMPROVEMENTS FOR WINDSOR WEST - PART TWO, AND DECLARING
PUBLIC IMPROVEMENTS OPEN FOR PUBLIC ACCESS AND USE.
WHEREAS, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications of the City of Iowa City:
Sanitary sewer, storm sewer, and water main improvements for Windsor West - Part Two,
as constructed by Maxwell Construction, Inc. of Iowa City, Iowa.
Certain sidewalk and paving improvements for Windsor West - Part Two, as constructed
by Metro Pavers, Inc. of Iowa City, Iowa.
WHEREAS, the maintenance bonds have been filed in the City Clerk's office; and
WHEREAS, the City of Iowa City has notified those contractors listed previously of the date on
which it will consider acceptance of the aforementioned public improvements; and
WHEREAS, the traffic control signs have been installed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa and
that all dedications and public improvements previously set aside as not being open for public
access are hereby formally accepted and declared open for public access and use.
Passed and approved this 23rd day of October 120 12
ATTEST:
CITY CZ.ERK
pweng \masters \acpt - improvements. doc
Approved by
City Attorney's Office p It, I ( Z
x.10 -2 -
1
l 3d(10)
VIII ��
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
ENGINEER'S REPORT www.icgov.org
October 12, 2012
Honorable Mayor and City Council
Iowa City, Iowa
Re: Windsor West - Part Two
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the sanitary sewer, storm sewer, water
main, certain sidewalk and paving improvements for Windsor West - Part Two
have been completed in substantial accordance with the plans and specifications
of the Engineering Division of the City of Iowa City. The required maintenance
bonds are on file in the City Clerk's Office for the sanitary sewer, storm sewer,
and water main improvements constructed by Maxwell Construction, Inc. of Iowa
City, Iowa and for the certain sidewalk and paving improvements constructed by
Metro Pavers Inc. of Iowa City, Iowa.
I recommend that the above - referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Ronald R. Knoche, P.E.
City Engineer
Prepared by: Denny Gannon, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5142
RESOLUTION NO. 12 -448
RESOLUTION ACCEPTING THE WORK FOR THE SANITARY SEWER, STORM
SEWER, TILE LINE, WATER MAIN, AND PAVING PUBLIC IMPROVEMENTS
FOR ROCHESTER RIDGE - PART TWO, AND FOR THE OFF -SITE STORM
SEWER, TILE LINE, CERTAIN SIDEWALK, AND PAVING PUBLIC
IMPROVEMENTS LOCATED ADJACENT TO ROCHESTER RIDGE - PART
TWO, AND DECLARING PUBLIC IMPROVEMENTS OPEN FOR PUBLIC
ACCESS AND USE.
WHEREAS, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications of the City of Iowa City:
Sanitary sewer, storm sewer, tile line and water main improvements for Rochester Ridge -
Part Two, and off -site storm sewer and tile line improvements located along Lower West
Branch Road east of said subdivision and west of Amhurst Street, as constructed by
Maxwell Construction, Inc. of Iowa City, Iowa.
Paving improvements for Rochester Ridge - Part Two, and off -site certain sidewalk and
paving improvements located along Lower West Branch Road east of said subdivision and
west of Amhurst Street, as constructed by Streb Construction Co., Inc. of Iowa City, Iowa.
WHEREAS, the maintenance bonds have been filed in the City Clerk's office; and
WHEREAS, the City of Iowa City has notified those contractors listed previously of the date on
which it will consider acceptance of the aforementioned public improvements; and
WHEREAS, the traffic control signs have been installed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa and
that all dedications and public improvements previously set aside as not being open for public
access are hereby formally accepted and declared open for public access and use.
Passed and approved this 23rd day of October , 2012
u_ =_
Approved by
ATTEST:
CITY ERK City Attorney's Office /v 117 ��
10=23-12�
r 3d(11)
1 _
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 -1826
(319) 356 -5000
(319) 356 -5009 FAX
ENGINEER'S REPORT www.icgov.org
October 12, 2012
Honorable Mayor and City Council
Iowa City, Iowa
Re: Rochester Ridge - Part Two
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the sanitary sewer, storm sewer, tile line,
water main, and paving improvements for Rochester Ridge - Part Two, and the
off -site storm sewer, tile line, certain sidewalk, and paving improvements located
adjacent to Rochester Ridge - Part Two have been completed in substantial
accordance with the plans and specifications of the Engineering Division of the
City of Iowa City. The required maintenance bonds are on file in the City Clerk's
Office for the on -site sanitary sewer, storm sewer, the line and water main
improvements and the off -site storm sewer and tile line improvements
constructed by Maxwell Construction, Inc. of Iowa City, Iowa and for the on -site
paving improvements and for the off -site certain sidewalk and paving
improvements constructed by Streb Construction Co., Inc. of Iowa City, Iowa.
The off -site improvements include the extension of Lower West Branch Road
between the east boundary of Rochester Ridge - Part Two and Amhurst Street
along with the installation of storm sewer, tile lines (adjacent to each side of
Lower West Branch Road), and sidewalks (adjacent to each side of Lower West
Branch Road).
I recommend that the above - referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Ronald R. Knoche, P.E.
City Engineer
10-23-12 CITY OF IOWA CITY 3d(12)
MEMORANDUM
DATE: October 9, 2012
TO: Tom Markus, City Manager
FROM: Ron Knoche, City Engineer
re: Landfill Annual Air and Groundwater Monitoring Services Amendment
October 23
Introduction:
The City of Iowa City owns and operates the Iowa City Landfill and Recycling Center.
The facility has a gas collection system and is surrounded by groundwater monitoring
wells. Each year both systems are monitored and analyzed for quality control and the
results are submitted to the Iowa DNR for review.
History /Background:
Professional engineering services are required to monitor, analyze, prepare and submit
the necessary regulatory reports for the landfill gas collection system and groundwater
monitoring systems. Staff has made the decision to outsource this work since 1992
because there are specialized technical skills and software necessary. This year the
Iowa DNR has required statistical analysis to be calculated for each semi - annual report
submittal instead of the past annual submittal resulting in additional statistical work for
this calendar year. Also a new Vermeer yard waste grinder was purchased which
requires a new DNR air construction permit and an amendment of the federal air quality
site permit. This work was not included in the original HR Green Inc. agreement.
Discussion of Solution:
An amendment to the January 24th agreement has been negotiated with HR Green Inc.
to provide these services for 2012.
Financial Impact:
The total cost of engineering services is $34,100. Funding will be provided by landfill
revenues.
Recommendation:
Staff recommends approval of the engineering services contract amendment with HR
Green Inc. at the October 23rd City Council Meeting.
cc: Rick Fosse, Public Works Director
Daniel Scott, Project Engineer
�Ato
Prepared by: Daniel Scott, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240; (319) 356 -5144
RESOLUTION NO. 12 -449
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST AN AMENDMENT TO THE JANUARY
24, 2012 AGREEMENT BY AND BETWEEN THE CITY OF IOWA CITY AND HR GREEN
INC. TO PROVIDE ENGINEERING CONSULTANT SERVICES FOR THE IOWA CITY
LANDFILL AND RECYCLING CENTER.
WHEREAS, the City of Iowa City owns and operates the Iowa City Landfill and Recycling Center; and
WHEREAS, professional engineering services are required to operate and monitor the landfill air quality,
groundwater monitoring and gas collection systems and prepare and submit necessary reports in
accordance with state and federal regulations; and
WHEREAS, the City retained services of HR Green Inc. to prepare necessary reports for the facility in
accordance with state and federal regulations pursuant to a Consultant Agreement dated January 24, 2012;
and
WHEREAS, the City of Iowa City has acquired new equipment and the Iowa DNR has requested a change in
the report submittal process resulting in changes to the original consultant agreement; and
WHEREAS, the City of Iowa City has negotiated an amendment to the January 24, 2012 Agreement for said
consulting services with HR Green Inc.; and
WHEREAS, it is in the public interest to enter into said Consultant Agreement amendment with HR Green
Inc.; and
WHEREAS, funds for this project are available in the Landfill Operating account #7500; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA,
THAT:
1. The Amendment to the Consultant Agreement attached hereto is in the public interest, and is
approved as to form and content.
2. The Mayor and City Clerk are hereby authorized and directed to execute the attached Amendment to
the Consultant Agreement.
Passed and approved this 23rd day of
October 20 12
lZ,`, n
MAYO
Approved by
ATTEST:
CITY 'CLERK City Attorney's
P"ng/maslers/designagt.doc v / lie lo--
Resolution No. 12 -449
Page 2
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
_ x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
AMENDMENT TO
CONSULTANT AGREEMENT
THIS AMENDED AGREEMENT, as entered into on this the �3e0 day of berca&R, 2012, is an
AMENDMENT to the CONSULTANT AGREEMENT dated January 24, 2012 between the City of
Iowa City, a municipal corporation, hereinafter referred to as the CITY, and HR Green, Inc. of
Cedar Rapids, Iowa, hereinafter referred to as the CONSULTANT.
WHEREAS, the CITY and the CONSULTANT entered into a CONSULTANT AGREEMENT on
January 24, 2012, whereby the CITY secured the services of CONSULTANT to provide
assistance in the completion of annual monitoring, reporting, and permit application services at
the Iowa City Landfill and Recycling Center in order to maintain compliance with the requirements
of the Iowa Department of Natural Resources (IDNR) Sanitary Disposal Project Permit and Title V
Air Emissions Permits, and;
WHEREAS, this AMENDMENT is designed to supplement the original CONSULTANT
AGREEMENT, and;
WHEREAS subsequent to execution of the CONSULTANT AGREEMENT, the CITY purchased a
new grinder for processing organic material for its composting operations and is in need of
obtaining an air quality Construction Permit specific to this piece of equipment. The facility's Title
V Operating Permit must then be amended to reflect the addition of the new piece of equipment
and associated Construction Permit, and;
WHEREAS, subsequent to execution of the CONSULTANT AGREEMENT, the IDNR began
requiring the CITY to incorporate statistical evaluations of groundwater monitoring data within 60
days of receipt of results from each semi - annual sampling event; and
WHEREAS, it is necessary to amend the CONSULTANT AGREEMENT to address these
changes in circumstances. NOW THEREFORE, it is agreed by and between the parties hereto
that the CITY does now contract with the CONSULTANT to provide the additional services as set
forth herein.
I. SCOPE OF SERVICES
In addition to the Scope of Services in the January 24, 2012 CONSULTANT AGREEMENT,
the CONSULTANT agrees to perform the following additional services for the CITY, and to do
so in a timely and satisfactory manner.
A. AIR QUALITY CONSTRUCTION PERMIT AND AMENDMENT TO TITLE V PERMIT
1. Prepare an Air Quality Construction Permit application for the new grinder equipment;
2. Prepare an addendum to the landfill's Operating Permit (00- TV- 007R2) to incorporate
the construction permit application for the new grinder equipment;
3. Provide ongoing correspondence with IDNR staff during permit review.
B. STATISTICAL ANALYSIS AND REPORTING OF GROUNDWATER QUALITY DATA
As required by the IDNR pursuant to its April 10, 2012 letter to the CITY, attached and
incorporated herein by this reference, CONSULTANT will provide the statistical analysis
and reporting of each sampling event that takes place in 2012 within the timelines
specified in the letter. CONSULTANT will continue the statistical methodology and
reporting by performing the compilation and formatting of analytical data for each
Page 1 of 3
sampling event, the database update, and the statistical analysis developed for the
HMSP- approved uppermost aquifer monitoring points, underdrains, and surface points.
Analysis of data collected from points other than the HMSP- approved uppermost aquifer
points, underdrains, and surface points will include comparison of the analytical results to
the groundwater protection standards as applicable, and the graphical evaluation for
trends where enough data points are available.
II. COMPENSATION FOR SERVICES
CONSULTANT shall perform the Scope of Services detailed above for a fee not to exceed
$34,100. This fee is calculated based on estimated labor and expenses per the attached
2012 Billing Rate Schedule.
• Air Quality Construction Permit and Amendment to Title V Permit $6,200
• Statistical Analysis and Reporting of Groundwater Quality Data $27,900
III. All other provisions of the Consultant Agreement not amended herein shall remain in for force
and effect.
Agreed to on this Jt3 go-
FOR THE CITY
day of OcTO 61`Ct— 2012.
By:
Matthew J. Hayek, mayor
ATTEST:
Marian K. Karr, City Clerk
Approved by:
City Attorney's Office
Page 2 of 3
FOI
By:
Title
Date: /2--
ATTACHMENT A
HRGreen
HR GREEN, INC.
Billing Rate Schedule
Effective January 1, 2012
Professional Services
Billing Rate Range
Principal
$185-$230
Senior Professional
$150-$200
Professional
$110-$160
Junior Professional
$80-$115
Senior Technician
$80-$110
Technician
$50-$85
Senior Field Personnel
$100-$150
Field Personnel
$70-$105
Junior Field Personnel
$50-$80
1 Person w/ GPS or Robotic Equipment
$105
2 Person Crew w/ GPS or Robotic Equipment
$155
Administrative Coordinator
$35-$100
Administrative
$40-$80
Corporate Admin
$55-$90
Reimbursable Expenses
1. All materials and supplies used in the performance of work on this project will be billed at cost
plus 10 %.
2. Auto mileage will be reimbursed per the standard mileage reimbursement rate established by
the Internal Revenue Service. Survey and construction vehicle mileage will be reimbursed on
the basis of $0.85 per mile.
3. Charges for sub - consultants will be billed at their invoice cost plus 15 %.
4. A rate of $6.00 will be charged per HR Green labor hour for a technology and communication
fee.
5. All other direct expenses will be invoiced at cost plus 10 %.
\ \HRGCRNAS \DATA\ 10100043.12 \DESIGN \CONTRACT\2012 ANN SER\AAGT- 092012- AMENDMENT 41_ANN SERV12_REV01_JC.DOC
Page 3 of 3
CITY OF IOWA CITY
MEMORANDUM
Date: October 9, 2012
To: Tom Markus, City Manager
From: Ron Knoche, City Engineer,,,,
Re: Willow Creek Crossing Water Main Protection Project — October 23
Introduction:
The proposed project involves protecting the existing water main located north of Highway 1 at
the Willow Creek crossing. In addition, the Iowa Department of Transportation (laDOT) desires
to construct a modified inlet for the existing reinforced concrete box (RCB) culvert that carries
Willow Creek under Highway 1. The City and the IaDOT have agreed to coordinate work in this
location in an effort to reduce overall construction costs and conflicts.
History /Background:
The City of Iowa City has an existing water main that crosses Willow Creek just north of
Highway 1. This water main is exposed at the bottom of the creek bed, and vulnerable to
potential damage. In an effort to reduce the potential for damage, the City plans to install
protection for the exposed water main.
The University of Iowa, under Iowa Highway Research Board (IHRB) Project TR -545, performed
research regarding self - cleaning box culvert design. In an effort to replicate the research, the
IaDOT plans to construct a modified inlet to prevent siltation in the multi - barrel RCB located
under Highway 1 at Willow Creek.
Discussion of Solutions:
Due to the close proximity of the City and IaDOT projects, an agreement was reached to
coordinate design and construction work. The agreement calls for each entity to provide the
project design and construction funding for their planned project. The work will then be bid as a
single construction project.
Financial Impact:
The estimated construction cost for the City's part of the project is $12,000 and will be funded
with Water revenues. The IaDOT work is estimated to cost $20,000.
Recommendation:
Staff recommends proceeding with the following schedule for this project:
October 23 — Sign Cooperative Agreement
Cc: Jason Havel, Civil Engineer
mkr
Prepared by: Jason Havel, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240; (319) 356 -5410
RESOLUTION NO. 12 -450
RESOLUTION AUTHORIZING THE MAYOR TO. SIGN AND THE CITY CLERK TO ATTEST
THE IOWA DEPARTMENT OF TRANSPORTATION COOPERATIVE AGREEMENT [2013 -16-
032] FOR THE WILLOW CREEK CROSSING WATER MAIN PROTECTION PROJECT.
WHEREAS, the City of Iowa City, Iowa has negotiated an agreement with the Iowa Department of
Transportation, said agreement being attached to this Resolution and by this reference made a part
hereof; and
WHEREAS, the City Council deems it is in the public interest to enter into said agreement with the
Iowa Department of Transportation for the design and construction of the Willow Creek Crossing
Water Main Protection Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
It is in the public interest to enter into the above - mentioned agreement, and the agreement is
hereby approved as to form and content.
2. The Mayor is authorized to sign and the City Clerk to attest the agreement between the City of
Iowa City and the Iowa Department of Transportation in duplicate.
3. The City Clerk shall furnish copies of said agreement to any citizen requesting same.
Passed and approved this 23rd day of October _'2012
MAYOR
ATTEST: . 1
CITY LERK
Approved by
Akieol
City Attorney's Office cv %�
It was moved by Throgmnrt,n and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES:
X
x
x
x
x
x
x
2012 Water Main Protection - DOT Agreement.doc
10112
NAYS: ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
3d(13)
March 2010
IOWA DEPARTMENT OF TRANSPORTATION
Cooperative Agreement
For Primary Road Project
County
City
Project No.
Iowa DOT
Agreement No.
Staff Action No.
Johnson
Iowa City
MB- 001 - 6(501)84- -77 -52
2013 -16 -032
N/A
This Agreement, is entered into by and between the Iowa Department of Transportation, hereinafter
designated the "DOT ", and the city of Iowa City, Iowa, a Local Public Agency, hereafter designated the
"LPA" in accordance with Iowa Code Chapters 28E, 306, 306A and 313.4 as applicable;
The LPA proposes to establish or make improvements to their water main located near Iowa 1 within
Johnson County, Iowa; and
The DOT has requested to include, as part of the LPA project, work near a Reinforced Concrete Box
(RCB) culvert located downstream from the LPA project.
The LPA and the DOT are willing to jointly participate in said project, in the manner hereinafter provided;
and
This Agreement reflects the current concept of this project which is subject to modification by mutual
agreement between the LPA and the DOT; and
Therefore, it is agreed as follows:
1. Project Information
a. The LPA shall be the lead local governmental agency for carrying out the provisions of this
agreement.
b. All notices required under this agreement shall be made in writing to the DOT's and /or the LPA's
contact person. The DOT's contact person shall be the Assistant District Engineer or their designee.
The LPA's contact person shall be the City Engineer.
c. The DOT will design and provide plans to the LPA for following described primary highway project:
Reinforced Concrete Box (RCB) culvert repair in the city of Iowa City approximately 0.6 mile north
of U.S. 218. The project provides for construction of a modified inlet to prevent siltation in the
multi - barrel RCB. The modifications will include construction of "wedges" near the inlet apron to
replicate research performed by the University of Iowa under Iowa Highway Research Board
(IHRB) Project TR -545.
2. Project Costs
a. The LPA and DOT work shall be shown in separate divisions to differentiate the bid item costs.
2013- 16- 032_IowaCity.
March 2010
b. The DOT shall reimburse the LPA for its share of the project costs estimated at $20,000 (as shown in
Exhibit A). The amount paid by the DOT upon completion of construction and proper billing by the
LPA will be determined by the actual quantities in place and the accepted bid at the contract letting.
c. The LPA will bear all costs except those allocated to the DOT under other terms of this Agreement.
3. Environmental, Right -of -Way, Permits and Other Requirements
a. The LPA shall be responsible for obtaining any necessary permits from the DOT, such as the Right to
Occupy and /or Perform Work Within the Right -of -Way, Permit of Access, Utility Accommodation,
Right to Install and Maintain Traffic Control Devices, or other construction permits required for the
project prior to the start of construction. Neither the approval of funding nor the signing of this
Agreement shall be construed as approval of any required permit from the DOT.
b. The LPA shall obtain all project permits and / or approvals, when necessary, from the Iowa
Department of Cultural Affairs (State Historical Society of Iowa; State Historic Preservation Officer),
Iowa Department of Natural Resources, U.S. Coast Guard, U.S. Army Corps of Engineers, or other
State or Federal agencies as may be required. The DOT will obtain the Section 404 permit from the
Corps of Engineers for the modified inlet portion of the project.
c. If the project requires utility relocations, subject to the approval of and without expense to the DOT,
the LPA agrees to perform or cause to be performed all relocations, alterations, adjustments or
removals of existing utility facilities, including but not limited to power, telephone lines, fiber optics
lines, natural gas pipelines, water mains and hydrants, curb boxes, utility accesses, storm water
intakes, sanitary sewers, and related poles, installations and appurtenances, whether privately or
publicly owned, and all parking meters, traffic signals and other facilities or obstructions which are
located within the limits of an established street or alley and which will interfere with construction of
the project and the clear zone. All utility relocations shall be accomplished in accordance with the
DOT's Utility Accommodation Policy, as set forth in 761 Iowa Administrative Code, Chapter 115.
d. If the LPA has completed a Flood Insurance Study (FIS) for an area which is affected by the
proposed Primary Highway project and the FIS is modified, amended or revised in an area affected
by the project after the date of this Agreement, the LPA shall promptly provide notice of the
modification, amendment or revision to the DOT. If the LPA does not have a detailed Flood Insurance
Study (FIS) for an area which is affected by the proposed Primary Highway project and the LPA does
adopt an FIS in an area affected by the project after the date of this Agreement, the LPA shall
promptly provide notice of the FIS to the DOT.
4. Project Design
a. The DOT or its consultant shall be responsible for the design of the Iowa 1 culvert improvements.
b. The project plans, specifications and engineer's cost estimate shall be prepared and certified by a
Professional Engineer licensed to practice in the State of Iowa.
c. All proposed highway or street improvements shall be designed using good engineering judgment
and the American Association of State Highway and Transportation Officials (AASHTO) "Policy on
Geometric Design of Highways and Streets ", (latest edition).
2013- 16- 032_lowaCity 2
March 2010
d. The project design shall comply with the "Manual on Uniform Traffic Control Devices for Streets and
Highways ", by the Federal Highway Administration, as adopted by DOT, as per 761 Iowa
Administrative Code, Chapter 130.
e. The project shall be designed and constructed using the DOT's Standard Specifications for Highway
and Bridge Construction (most current edition). Prior to their use in the bidding documents, any
Special Provisions or other modifications to the Standard Specifications shall be approved by the
Department.
5. Bid Letting
a. The LPA shall submit the plans, specifications, and all other contract documents for review and
approval prior to letting by the LPA. The project may be submitted for letting in phases, in the order of
preference as determined by the LPA. The DOT shall review said submittal(s) recognizing the LPA's
development schedule and shall, after satisfactory review, authorize in writing the LPA to proceed
with implementation of the project.
b. For portions of the project let to bid, the LPA shall conduct the project bid letting in compliance with
applicable laws, ordinances, and administrative rules. The LPA shall advertise for bidders, make a
good faith effort to get at least three (3) bidders, hold a public letting and award contracts for the
project work. DOT concurrence in the award must be obtained prior to the award. The LPA shall
provide the DOT file copies of project letting documents within five (5) days after letting.
c. The LPA shall include in their Notice to Bidders that Sales Tax Exemption Certificates will be issued,
as provided for by Iowa Code section 423.3, subsection 80. The LPA shall be responsible for
obtaining the sales tax exemption certificates through the Iowa Department of Revenue and Finance.
The LPA shall issue these certificates to the successful bidder and any subcontractors to enable them
to purchase qualifying materials for the project free of sales tax.
6. Construction & Maintenance
a. The LPA shall be responsible for the daily inspection of the project, including the compilation of a
daily log of materials, equipment, and labor used on the project.
b. The LPA shall comply with the procedures and responsibilities for materials testing and construction
inspection according to DOT's Materials Instructional Memorandums (I.M.'s) and the Construction
Manual. If requested, the DOT may be able to perform some testing services. If performed, the DOT
will bill the LPA for testing services according to its normal policy.
c. The work on this project shall be in accordance with the approved plans and specifications. Any
substantial modification of these plans and specifications must be approved by the DOT prior to the
modification being put into effect.
d. Structures built as part of the project over or under a primary road will be maintained structurally
sound by the DOT, including repairs to floors and railing and painting. For structures serving
roadways which are not on the primary road system, the cleaning and removal of snow, debris and
foreign objects from local road traffic lanes, sidewalks or walkways within the project limits (if any)
including pedestrian overpasses or underpasses will be the responsibility of the LPA.
e. Upon completion of the project, no changes in the physical features thereof will be undertaken or
permitted without the prior written approval of the DOT.
2013- 16- 032_IowaCity 3
March 2010
f. After the project construction is complete and prior to final acceptance of the project by the DOT, the
LPA shall furnish three sets of "as- built" plans to the DOT's contact person.
g. Future maintenance of the primary highway within the project area will be carried out in accordance
with the terms and conditions contained in 761 Iowa Administrative Code Chapter 150.
7. Traffic Control
a. Iowa 1 through- traffic will be maintained during the construction.
b. Traffic control devices, signing, or pavement markings installed within the limits of this project shall
conform to the "Manual on Uniform Traffic Control Devices for Streets and Highways" as per 761
Iowa Administrative Code, Chapter 130. The safety of the general public shall be assured through the
use of proper protective measures and devices such as fences, barricades, signs, flood lighting, and
warning lights as necessary.
8. Payments and Reimbursements
a. The LPA shall be responsible for making initial payments for all project costs incurred in the
development and construction of the project. After payments have been made, the LPA may submit
to the DOT periodic itemized claims for reimbursement for eligible project activities. Reimbursement
claims shall include certification by a Professional Engineer licensed to practice in the State of Iowa
that all eligible project activities for which reimbursement is requested have been paid in full and
completed in substantial compliance with the terms of this agreement.
b. The DOT shall reimburse the LPA for properly documented and certified claims for eligible project
activity costs, less a withholding of 5% of the Federal and / or State share of construction costs, either
by state warrant or by crediting other accounts from which payment may have been initially made. If
upon final audit, the DOT determines the LPA has been overpaid, the LPA shall reimburse the
overpaid amount to the DOT. After the final audit or review is complete and after the LPA has
provided all required paperwork, the DOT will release the Federal or State funds withheld.
c. Upon completion of the project, a Professional Engineer licensed to practice in the State of Iowa shall
certify in writing to the DOT that the project activities were completed in substantial compliance with
the plans and specifications set out in this agreement. Final reimbursement of State and / or Federal
funds shall be made only after the DOT accepts the project as complete.
9. General Provisions
a. The LPA shall maintain records, documents, and other evidence in support of the work performed
under the terms of this agreement. All accounting practices applied and all records maintained will be
in accordance with generally accepted accounting principles and procedures. Documentation shall be
made available for inspection and audit by authorized representatives of the DOT and / or the Federal
Highway Administration (FHWA), or their designees at all reasonable times.. The LPA shall provide
copies of said records and documents to the DOT upon request. The LPA shall also require its
contractors to permit authorized representatives of the DOT and / or the FHWA to inspect all work
materials, records, and any other data with regard to agreement related costs, revenues and
operating sources. Such documents shall be retained for at least 3 years from the date of FHWA
approval of the final amendment / modification to the project in the FHWA's Fiscal Management
Information System (FMIS). Upon receipt of such approval by FHWA, the DOT will notify the LPA of
the record retention date.
2013- 16- 032_IowaCity 4
March 2010
b. In accordance with Iowa Code Chapter 216, the LPA shall not discriminate against any person on the
basis of race, color, creed, age, sex, sexual orientation, gender identity, national origin, religion,
pregnancy, or disability.
c. The LPA shall use positive efforts to solicit proposals or bids from and to utilize Targeted Small
Business (TSB) enterprises as consultants or contractors and ensure that the consultants or
contractors make positive efforts to utilize these enterprises as subconsultants, subcontractors,
suppliers or participants in the work covered by this agreement. Efforts shall be made and
documented in accordance with Exhibit B which is attached hereto and by this reference incorporated
into this agreement.
d. The LPA agrees to indemnify, defend and hold the DOT harmless from any action or liability arising
out of the design, construction, maintenance, placement of traffic control devices, inspection, or use
of this project. This agreement to indemnify, defend and hold harmless applies to all aspects of the
DOT's application review and approval process, plan and construction reviews, and funding
participation.
e. If any part of this agreement is found to be void and unenforceable then the remaining provisions of
this agreement shall remain in effect.
f. This agreement is not assignable without the prior written consent of the DOT.
g. It is the intent of both (all) parties that no third party beneficiaries be created by this Agreement.
h. In case of dispute concerning the terms of this agreement, the parties shall submit the matter to
arbitration pursuant to Iowa Code Chapter 679A. Either party has the right to submit the matter to
arbitration after ten (10) days notice to the other party of their intent to seek arbitration. The written
notice must include a precise statement of the disputed question. The DOT and the LPA agree to be
bound by the decision of the appointed arbitrator. Neither party may seek any remedy with the State
or Federal courts absent exhaustion of the provisions of this paragraph for arbitration.
i. This Agreement may be executed in (two) counterparts, each of which so executed will be deemed to
be an original.
j. This Agreement, as well as the unaffected provisions of any previous agreement(s), addendum(s),
and /or amendment(s); represents the entire Agreement between the LPA and DOT regarding this
project. All previously executed agreements will remain in effect except as amended herein. Any
subsequent change or modification to the terms of this Agreement will be in the form of a duly
executed amendment to this document.
2013- 16- 032_IowaCity
March 2010
IN WITNESS WHEREOF, each of the parties hereto has executed Agreement No. 2013 -16 -032 as of the
date shown opposite its signature below.
[elk I V L *] A[ S] T I T /:1143 III I V A
By:� Date b-ct 2 > 20
Title: Mayor
I, Marian K. Karr , certify that I am the Clerk of the City, and that Matthew T. Hayek ,
who signed said Agreement for and on behalf of the City was duly authorized to execute the same on
the 23rddayj�of October 1/ , 2012 .
Signed:
City berk of Iowa City, Iowa.
IOWA DEPARTMENT OF TRANSPORTATION:
By: JT a r, ��Aa - Date / l 20
James R. Schnoebelen
District Engineer
District 6
2013- 16- 032_lowaCity
March 2010
EXHIBIT A
PROJECT COST ESTIMATE -INLET MODIFICATIONS
9/12/2012
PROJECT TYPE
INLET MODIFICATIONS, IA 1 OVER WILLOW CREEK
PROJECT NUMBER
MB- 001 - 6(501)84- -77 -52
FILE NUMBER
30798
DESIGN NUMBER
512
COUNTY
JOHNSON
PIN
12 -52- 001 -030
PROJECT DIRECTORY
5200103012
ITEM
UNIT
EXTENDED
NO. ITEM CODE
ITEM UNIT QUANTITY
COST
COST
EXCAVATION, CLASS
13, ROADWAY AND
1 2102 - 2713070
BORROW CY 30
$20
$600
ENGINEERING
2 2507 - 3250005
FABRIC SY 220
$10
$2,200
3 2507 - 8029000
EROSION STONE TON 100
$60
$6,000
FABRIC FORMED
CONCRETE
4 2507 - 8500040
REVETMENT, SY 130
$35
$4,550
ARTICULATING
BLOCK MAT, 4 INCH
CONCRETE GROUT
5 2507 - 8501100
FOR FABRIC CY 15
$300
$4,500
FORMED CONCRETE
REVETMENT
ESTIMATED COST
$17,850
10% CONTINGENCY
$1,785
TOTAL ESTIMATED COST
$19,635
2013- 16- 032_IowaCity 7
April 2010
EXHIBIT B
UTILIZATION OF TARGETED SMALL BUSINESS (TSB) ENTERPRISES
ON NON- FEDERAL AID PROJECTS
(THIRD -PARTY STATE - ASSISTED PROJECTS)
In accordance with Iowa Code Section 19B.7 and 541 Iowa Administrative Code (IAC) Chapter 4, it is the
policy of the Iowa Department of Transportation (Iowa DOT) that Targeted Small Business (TSB)
enterprises shall have the maximum practicable opportunity to participate in the performance of contracts
financed in whole or part with State funds.
Under this policy the Recipient shall be responsible to make a positive effort to solicit bids or proposals
from TSB firms and to utilize TSB firms as contractors or consultants. The Recipient shall also ensure
that the contractors or consultants make positive efforts to utilize TSB firms as subcontractors,
subconsultants, suppliers, or participants in the work covered by this agreement.
The Recipient's "positive efforts" shall include, but not be limited to:
1. Obtaining the names of qualified TSB firms from the Iowa Department of Inspections and Appeals
(515- 281 -7102) or from its website at: http: / /dia.iowa.gov /pacle7.html.
2. Notifying qualified TSB firms of proposed projects involving State funding. Notification should be
made in sufficient time to allow the TSB firms to participate effectively in the bidding or request for
proposal (RFP) process.
3. Soliciting bids or proposals from qualified TSB firms on each project, and identifying for TSB firms
the availability of subcontract work.
4. Considering establishment of a percentage goal for TSB participation in each contract that is a
part of this project and for which State funds will be used. Contract goals may vary depending on
the type of project, the subcontracting opportunities available, the type of service or supplies
needed for the project, and the availability of qualified TSB firms in the area.
5. For construction contracts:
a) Including in the bid proposals a contract provision titled "TSB Affirmative Action
Responsibilities on Non - Federal Aid Projects (Third -Party State - Assisted Projects)" or a
similar document developed by the Recipient. This contract provision is available on -line at:
http: / /www.dot.state.ia. us /local_ systems / publications /tsb_contract_provision.pdf
b) Ensuring that the awarded contractor has and shall follow the contract provisions.
6. For consultant contracts:
a) Identifying the TSB goal in the Request for Proposal (RFP), if one has been set.
b) Ensuring that the selected consultant made a positive effort to meet the established TSB
goal, if any. This should include obtaining documentation from the consultant that includes a
list of TSB firms contacted; a list of TSB firms that responded with a subcontract proposal;
and, if the consultant does not propose to use a TSB firm that submitted a subcontract
proposal, an explanation why such a TSB firm will not be used.
2013 -16 -032_1 owaC ity
April 2010
The Recipient shall provide the Iowa DOT the following documentation:
1. Copies of correspondence and replies, and written notes of personal and /or telephone contacts
with any TSB firms. Such documentation can be used to demonstrate the Recipient's positive
efforts and it should be placed in the general project file.
2. Bidding proposals or RFPs noting established TSB goals, if any.
3. The attached "Checklist and Certification." This form shall be filled out upon completion of each
project and forwarded to: Iowa Department of Transportation, EEO Administrator, Office of
Contracts, 800 Lincoln Way, Ames, IA 50010.
2013- 16- 032_lowaCity 9
March 2010
CHECKLIST AND CERTIFICATION
For the Utilization of Targeted Small Businesses (TSB)
On Non - Federal -aid Projects (Third -Party State - Assisted Projects)
Recipient: Project Number:
County: Agreement Number:
1. Were the names of qualified TSB firms obtained from the Iowa Department of Inspections and Appeals?
❑ YES ❑ NO
If no, explain
2. Were qualified TSB firms notified of project? ❑ YES ❑ NO
If yes, by ❑ letter, ❑ telephone, ❑ personal contact, or ❑ other (specify)
If no, explain
3. Were bids or proposals solicited from qualified TSB firms? ❑ YES ❑ NO
4.
If no,
Was a goal or percentage established for TSB participation? ❑ YES ❑ NO
If yes, what was the goal or percentage?
If no, explain why not:
5. Did the prime contractor or consultant use positive efforts to utilize TSB firms on subcontracts? ❑ YES ❑ NO
If no, what action was taken by Recipient?
Is documentation in files? ❑ YES ❑ NO
6. What was the dollar amount reimbursed to the Recipient
from the Iowa Department of Transportation? $
What was the final project cost? $
What was the dollar amount performed by TSB firms? $
Name(s) and address(es) of the TSB firm(s)
(Use additional sheets if necessary)
Was the goal or percentage achieved? ❑ YES ❑ NO
If no, explain
As the duly authorized representative of the Recipient, I hereby certify that the Recipient used positive efforts to utilize
TSB firms as participants in the State - assisted contracts associated with this project.
Title
Signature
2013- 16- 032_IowaCity 10
Date
CITY OF IOWA CITY + 0-23-12
MEMORANDUM 3d
�s ck� � S- )
Publish 9/11
NOTICE TO BIDDERS
NORMANDY DRIVE RESTORATION PROJECT
Sealed proposals will be received by the City
Clerk of the City of Iowa City, Iowa, until 2:30
P.M. on the 27th day of September, 2012.
Sealed proposals will be opened immediately
thereafter by the City Engineer or designee. Bids
submitted by fax machine shall not be deemed a
"sealed bid" for purposes of this Project.
Proposals received after this deadline will be
returned to the bidder unopened. Proposals will
be acted upon by the City Council at a meeting to
be held in the Emma J. Harvat Hall at 7:00 P.M.
on the 9th day of October, 2012, or at special
meeting called for that purpose.
The Project will involve the following:
Site demolition; clearing & grubbing of
existing vegetation; excavation of soil, hauling
& grading; plant and seed bed preparation;
slope protection; landscaping; prairie seeding;
grass seeding and surface restoration and
associated work.
All work is to be done in strict compliance with
the plans and specifications prepared by
Abundant Playscapes, Inc., of Iowa City, Iowa,
which have heretofore been approved by the City
Council, and are on file for public examination in
the Office of the City Clerk.
Each proposal shall be completed on a form
furnished by the City and must be accompanied
in a sealed envelope, separate from the one
containing the proposal, by a bid bond executed
by a corporation authorized to contract as a
surety in the State of Iowa, in the sum of 10% of
the bid. The bid security shall be made payable to
the TREASURER OF THE CITY OF IOWA CITY,
IOWA, and shall be forfeited to the City of Iowa
City in the event the successful bidder fails to
enter into a contract within ten (10) calendar days
of the City Council's award of the contract and
post bond satisfactory to the City ensuring the
faithful performance of the contract and mainte-
nance of said Project, if required, pursuant to the
provisions of this notice and the other contract
documents. Bid bonds of the lowest two or more
bidders may be retained for a period of not to
exceed fifteen (15) calendar days following award
of the contract, or until rejection is made. Other
bid bonds will be returned after the canvass and
tabulation of bids is completed and reported to
the City Council.
The successful bidder will be required to furnish
a bond in an amount equal to one hundred
percent (100 %) of the contract price, said bond to
be issued by a responsible surety approved by
the City, and shall guarantee the prompt payment
of all materials and labor, and also protect and
save harmless the City from all claims and
damages of any kind caused directly or indirectly
by the operation of the contract, and shall also
guarantee the maintenance of the improvement
for a period of one (1) year from and after its
completion and formal acceptance by the City
Council.
The following limitations shall apply to this
Project:
Working Days: 100
Specified Start Date: October 16, 2012
Liquidated Damages: $250 per day
The plans, specifications and proposed contract
documents may be examined at the office of the
City Clerk. Copies of said plans and specifi-
cations and form of proposal blanks may be
secured at the Office of Abundant Playscapes,
Inc. of Iowa City, Iowa, by bona fide bidders.
Prospective bidders are advised that the City of
Iowa City desires to employ minority contractors
and subcontractors on City projects. A listing of
minority contractors can be obtained from the
Iowa Department of Inspections and Appeals at
(515) 281 -5796 and the Iowa Department of
Transportation Contracts Office at (515) 239-
1422.
Bidders shall list on the Form of Proposal the
names of persons, firms, companies or other
parties with whom the bidder intends to subcon-
tract. This list shall include the type of work and
approximate subcontract amount(s).
The Contractor awarded the contract shall
submit a list on the Form of Agreement of the
proposed subcontractors, together with quanti-
ties, unit prices and extended dollar amounts.
By virtue of statutory authority, preference must
be given to products and provisions grown and
coal produced within the State of Iowa, and to
Iowa domestic labor, to the extent lawfully re-
quired under Iowa Statutes. The Iowa reciprocal
resident bidder preference law applies to this
Project.
The City reserves the right to reject any or all
proposals, and also reserves the right to waive
technicalities and irregularities.
Published upon order of the City Council of Iowa
City, Iowa.
MARIAN K. KARR, CITY CLERK
Ell
Prepared by: Michael Moran, Director, Parks & Recreation Department, 220 S. Gilbert St. Iowa City, IA 52240 (319) 356 -5100
RESOLUTION NO. 1 2_/,51
RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO
SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR
CONSTRUCTION OF THE NORMANDY DRIVE RESTORATION PROJECT.
WHEREAS, Iowa State Contractors of Ottumwa, Iowa, has submitted the lowest responsible bid
of $173,765.29 for construction of the above -named project, which will provide landscaping
improvements on property acquired through flood buyout proceedings; and
WHEREAS, funds for this project are available in GO Bonds account #4178.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
1. The contract for construction of the above -named project is hereby awarded to Iowa State
Contractors, subject to the condition that awardee secure adequate performance and
payment bond, insurance certificates, and contract compliance program statements.
2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for
construction of the above -named project, subject to the condition that awardee secure
adequate performance and payment bond, insurance certificates, and contract compliance
program statements.
3. The Parks and Recreation Director is authorized to execute change orders as they may
become necessary in the construction of the above -named project.
Passed and approved this 23rd day of nctnher , 20 1Z__.
_. -.
�fr'ty1111 V
AeA-A- �A
MAYOR
App`oved -b_y
CityAttor _.
ey's f ice
It was moved by Thro=orton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
X
Champion
X
Dickens
X
Dobyns
X
Hayek
X
Mims
X _
Payne
X
Throgmorton
1 r'9
MTM�
3d(16)
Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246
RESOLUTION NO. 12 -452
RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY
CLERK TO ATTEST TO A SUBORDINATION AGREEMENT BETWEEN THE
CITY OF IOWA CITY AND US BANK, IOWA CITY, IOWA FOR PROPERTY
LOCATED AT 1524 SYCAMORE STREET, IOWA CITY, IOWA.
WHEREAS, the City of Iowa City is the owner and holder of a Mortgage, executed by the
owner of the property, Visiting Nurse Association of Johnson County, on December 6,
2011, recorded on December 6, 2011, in Book 4841, Page 410 through Page 414, in the
Johnson County Recorder's Office covering the following described real estate:
Lot 1, Mall First Addition to Iowa City, Iowa, as per the plat thereof recorded
in Plat Book 9, Page 41, Records of Johnson County, Iowa.
WHEREAS, it is necessary that the Mortgage held by the City be subordinated to the
loan of US Bank, secured by the mortgage in order to induce US Bank to secure first
position on such a loan; and
WHEREAS, US Bank has requested that the City execute the attached subordination
agreement thereby making the City's lien subordinate to the lien of said mortgage with
US Bank; and
WHEREAS, there is sufficient value in the above - described real estate to secure the
City's position.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IOWA that the Mayor is authorized to execute and the City Clerk to attest
the subordination agreement between the City of Iowa City and US Bank, Iowa City,
Iowa.
Passed and approved this 23rd day of October , 20,x_.
ATTEST: 2&4"
CITY tLERK
/A44_A_a.'N
MAYOR
Approved by
City Attorney's Office
Resolution No. 12 -452
Page 2
It was moved by Th,��orton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
x Dickens
x Dobyns
x Hayek
x_ Mims
x Payne
X Throgmorton
SUBORDINATION AGREEMENT
THIS AGREEMENT is made by and between the City of Iowa City, herein the City, and US Bank,
Iowa City. Iowa, herein the Financial Institution.
WHEREAS, the City is the owner and holder of certain Mortgage which at this time is in the
amount of $230.000, and was executed by Visiting Nurse Association of Johnson County
(herein the Owner), dated December 6. 2011, recorded December 6, 2011, in Book 4841, Page
410 through Page 414, Johnson County Recorder's Office, covering the following described real
property:
Lot 1, Mall First Addition to Iowa City, Iowa, as per the plat thereof recorded in Plat Book 9,
Page 41, Records of Johnson County, Iowa.
WHEREAS, the Financial Institution has loaned the sum of $70.000 on a promissory note to be
executed by the Financial Institution, securing a mortgage covering the real property described
above; and
WHEREAS, to induce the Financial Institution to make such loan, it is necessary that the Mortgage
held by the City be subordinated to the lien of the mortgage made by the Financial Institution.
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties hereto,
the parties agree as follows:
1. Subordination. The City hereby covenants and agrees with the Financial Institution that
the above noted Mortgage held by the City is and shall continue to be subject and
subordinate to the lien of the mortgage about to be made by the Financial Institution.
2. Consideration. The City acknowledges receipt from the Financial Institution of One
Hundred and Fifty Dollars ($150.00) and other good and valuable consideration for its act of
subordination herein.
3. Senior Mortgage. The mortgage in favor of the Financial Institution is hereby
acknowledged as a lien superior to the Mortgage of the City.
4. Binding Effect. This agreement shall be binding upon and inure to the benefit of the
respective heirs, legal representatives, successors, and assigns of the parties hereto.
Dated this a3 day of o C4 A IJ l� , 20 jot.
CITY OF IOWA CITY
By 606eLg J\
Mayor
Attest:
i ��
CITY'S ACKNOWLEDGEMENT
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
FINANCIAL INSTITUTION
I' `
On this d3 '� day of 0c -,*aCrL , 20 /4 , before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared a-H tii and
Marian K. Karr, to me personally known, and, who, being by me duly sworn, did say tliat.they are the
Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the
foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and
sealed on behalf of the corporation, by authority of its City Council, as contained in tefdifvam -e)
(Resolution) No. is — 4-1-54- passed (the Resolution adopted) by the City Council, under Roll Call
No. of the City Council on the a 3 R'b day of Oc-+ -o F-.XtZ , 20 /a- , and
that a4-t-h-e-V 'T. =K e and Marian K. Karr acknowledged the execution of the
instrument to be their voluntafy act and deed and the voluntary act and deed of the corporation, by it
voluntarily executed.
,1V SONDRAE FORT
_
Commission MyCommN�ner15es Notary Public in and for the State of Iowa
fA8
I 8 '71-9045 4
LENDER'S ACKNOWLEDGEMENT
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
On this i day of GC-H hG✓ , 20 12- , before me, the undersigned, a
Notary Public in and for the State of Iowa, personally appeared WaA 14'hs"''1 , to me
personally known, who being by me duly sworn, did say that he /she is the A-ssiVa#4 Vice f&LJ% 1 -;t-
of u •S • 6a.,- N. A- - that said instrument was signed on behalf of said
corporation by authority of its Board of Directors; and that said PiL+V''c.1a l -nbsrn acknowledged
the execution of said instrument to be the voluntary act and deed of said corporation, by it and by
him /her voluntarily executed.
Notary P b 'c in and f6j the State of Iowa
My Commission expires: �tnn
JULIE A. YODER
Commission Number 165M
My Commission Expires I
14.2013
`14j
—Mmq=
3d(17)
Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246
RESOLUTION NO. 12 -453
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST TO THE RELEASE OF LIEN REGARDING A MORTGAGE FOR
THE PROPERTY LOCATED AT 803 CHURCH STREET, IOWA CITY, IOWA.
WHEREAS, on May 1, 2008, the owner executed a Mortgage with the City of Iowa City
to secure a loan; and
WHEREAS, the loan has been paid off; and
WHEREAS, it is the City of Iowa City's responsibility to release this lien.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the
attached Release of Lien for recordation, whereby the City does release the lien for the
property located at 803 Church Street, Iowa City, Iowa from a Mortgage recorded May 7,
2008, Book 4295, Page 479 through 484, of the Johnson County Recorder's Office.
Passed and approved this 23rd day of October , 20_U_.
I LTA FAY
e.
ATTEST: &Uz�J
CITY-CLERK
Approved by
City Attorney's Office
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
X
Champion
X
Dickens
X
Dobyns
X
Hayek
X
Mims
X
Payne
X
Throgmorton
Prepared by and return: Liz Osborne, Housing Rehab Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246
Legal Description of Property: see below
Mortgagor(s): Marcia C. McNamara
Mortgagee: City of Iowa City
RELEASE OF LIEN
The City of Iowa City does hereby release the following property located in Johnson County,
Iowa City, Iowa, and legally described as follows:
The North One -Half (1/2) of Lot Four (4), Block Nine (9), Original Town of Iowa City,
Iowa, according to the recorded plat thereof, subject to easements and restrictions
of record.
from an obligation of the owner, Marcia C. McNamara, to the City of Iowa City represented by a
Mortgage recorded May 7, 2008, Book 4295, Page 479 through 484, of the Johnson County
Recorder's Office.
This obligation has been repaid and the property is hereby released from any liens or clouds
upon title to the above property by reason of said prior recorded document.
ATTEST: &a�
CITY CLERK
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
Approved by
lot - 14
City Attorney's Office
On this d3 QO _ day of Qr_Tb&ETZ A.D. 20 before me, the undersigned, a Notary Public in and for said
County, in said State, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being by me
duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and
foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed
on behalf of the corporation by authority of its City Council, as contained in Resolution No. 9- 4 -S3adopted by the City Council
on the .?$ ep day Or-To -- , 20 la' and that the said Matthew J. Hayek and Marian K. Karr as such officers
acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them
voluntarily executed.
.t� SONDRAE FORT
2 Commission Number 159791
My Commission F.xplres
3 Notary Public in and for Johnson County, Iowa
7 .7a G5
Mkt
Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246
RESOLUTION NO. 12 -454
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST TO THE RELEASE OF LIEN REGARDING TWO MORTGAGES
FOR THE PROPERTY LOCATED AT 3008 FRIENDSHIP STREET, IOWA
CITY, IOWA.
WHEREAS, on July 22, 2009, the owner executed a Mortgage with the City of Iowa City
to secure a loan; and
WHEREAS, on June 29, 2012, the owners executed another Mortgage with the City of
Iowa City; and
WHEREAS, the loans have been paid off; and
WHEREAS, it is the City of Iowa City's responsibility to release these liens.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the
attached Release of Lien for recordation, whereby the City does release the lien for the
property located at 3008 Friendship Street, Iowa City, Iowa from a Mortgage recorded
July 30, 2009, Book 4485, Page 941 through 946, and another Mortgage recorded July
6, 2012, Book 4940, Page 506 through Page 511, of the Johnson County Recorder's
Office.
Passed and approved this 23rd day of October 1 201Z_
MAYOR
ATTEST: �-��
CIT LERK
ppr ed by
City Attorney's Office
3d(18)
Resolution No. 12 -454
Page 2
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
Dickens
-_ Dobyns
— x Hayek
x
Mims
x Payne
xThrogmorton
Prepared by and return: Liz Osborne, Housing Rehab Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246
Legal Description of Property: see below
Mortgagor(s): Trevor D. Jensen and Shannon C. Jensen
Mortgagee: City of Iowa City
RELEASE OF LIENS
The City of Iowa City does hereby release the following property located in Johnson County,
Iowa City, Iowa, and legally described as follows:
Lot 218 except the westerly 5 feet thereof, in Part Four Court Hill, an Addition to the
City of Iowa City, Iowa, according to the plat thereof recorded in Book 5, Page 29,
Plat Records of Johnson County, Iowa,
from an obligation of the owners, Trevor D. Jensen and Shannon C. Jensen, to the City of Iowa
City represented by a Mortgage recorded July 30, 2009, Book 4485, Page 941 through 946,
and a Mortgage recorded July 6, 20012, Book 4940, Page 506 through Page 511, of the
Johnson County Recorder's Office.
This obligation has been repaid and the property is hereby released from any liens or clouds
upon title to the above property by reason of said prior recorded document.
ATTEST:
CITY ERK
STATE OF IOWA )
SS:
JOHNSON COUNTY 1
MAYOR
Ap roved by
1� I U
City Attorney's Office
Rn
On this a3 �-- day of A.D. 20 / 3— ,before me, the undersigned, a Notary Public in and for said
County, in said State, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being by me
duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and
foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed
on behalf of the corporation by authority of its City Council, as contained in Resolution No. IX YS# adopted by the City Council
on the a3 0 day Oe5 o BIER 20 /3- and that the said Matthew J. Hayek and Marian K. Karr as such officers
acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them
voluntarily executed.
r SONDRAEFORT
° Commission Number 159791
My Commi on ices Notary Public in and for Johnson County, Iowa
3 aor
•'-r= CITY OF IOWA CITY 3d(E V AS 0* 1 19)
)
MEMORAND
Date: October 17, 2012
To: Tom Markus, City Manager
From: Chris O'Brien, Director of Transportation Services
Re: Howling Dogs Inc. Addendum to Lease - October 23, 2012 City Council Meeting
Introduction: At the October 23, 2012 City Council meeting, consideration will be given to a
resolution approving an addendum to the lease agreement between the City of Iowa City and
Howling Dogs, Inc. of space at the Court Street Transportation Center.
History/background: Howling Dogs Inc. is the current tenant located in a commercial space
consisting of 2460 square feet and is run as a coffee house and bakery. Howling Dogs Inc. has
negotiated an amendment to the lease with City staff in order to facilitate the sale of alcohol in
this space. Prior to this amendment, the City had prohibited sale of alcohol on City property.
This changed as a result of City Council action on September 4, 2012.
Discussion of Solution: City Legal and Transportation Services staff have negotiated an
amendment of the existing lease with representatives of Howling Dogs Inc. Should this be
approved by City Council, this will allow Howling Dogs Inc. to serve alcohol in their lease space
as a part of execution of their business plan to expand beyond a coffee house and bakery into
more of a restaurant/bistro. This will also include an expansion of the menu and the addition of
staff to provide the services related to this expansion. These changes have also resulted in
annual rent increases for Howling Dogs, Inc. beginning June 1, 2014.
Recommendation: It is my recommendation that City Council approve this resolution for
amendment of the Howling Dogs Inc. lease for the space located at the Court Street
Transportation Center.
M� 2 j ( (17 )
Prepared by: Chris O'Brien, Director of Transportation Services, 410 E. Washington St., Iowa City, IA 52240 (319)
356 -5156
RESOLUTION NO. 12 -455
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND CITY CLERK TO
ATTEST AN ADDENDUM TO LEASE AGREEMENT WITH HOWLING DOGS,
INC. FOR LEASE OF COURT STREET TRANSPORTATION CENTER SPACE.
WHEREAS, Howling Dogs, Inc. is the current tenant of approximately 2,460 square feet of ground
floor commercial space within the Court Street Transportation Center; and
WHEREAS, Howling Dogs has negotiated with City staff for the amendment of some of the lease
terms of this space to include allowing for the sale of alcohol; and
WHEREAS, staff feels the amendments made are fair and appropriate; and
WHEREAS, the amendments are contained in the attached Addendum to Lease, which requires
Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The attached Addendum to Lease is approved.
2. The Mayor and the City Clerk are authorized and directed to respectively execute and attest
the Addendum of Lease attached hereto.
3. The City Manager is hereby authorized to execute the assignment of the lease to Howling
Dogs, Inc., as well as any subsequent renewal options, as provided in the attached
Addendum to Lease.
Passed and approved this 23rd day of October , 20_L2__.
E
iii 1 •
Approved by
ATTEST: r0/ '
CITY'CLERK City Attorney's Office
Resolution No. 12 -4
Page 2
It was moved by Throgmorton and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
x
x
x
_x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
Addendum to Lease
This Addendum to Lease ( "Addendum ") is entered into on October 23 2012 by and between
the City of Iowa City ( "City" or "Landlord ") and Howling Dogs Inc. ( "HDI ").
Recitals
A. City, a municipal corporation, is the owner of fee title to certain premises situated in Iowa City, Iowa,
commonly known as the Court Street Transportation Center and has the authority to lease said premises.
B. HDI, as Tenant, has previously accepted the assignment of a lease between the City and Grounds for
Dessert Coffee House, Inc., in April, 2011, through a Conditional Addendum to Lease ( "Conditional
Addendum ").
C. HDI and the City now agree to amend the lease in such a way as to allow the possession and sale of
alcohol, as long as HDI always closes by midnight, and to amend rental rates for the option terms.
Terms and Conditions
In consideration of the foregoing recitals and the following terms and conditions, it is agreed between the
parties as follows:
I. Paragraph 7 of the lease shall be amended by deleting it in its entirety, and replacing it with language
as follows:
7. USE OF PREMISES. Tenant shall use the Premises for the conduct of Tenant's operation of
a restaurant, bistro, and bakery, and any other activities reasonably related thereto. The Premises
may not be used for any other purpose without written approval of Landlord. No business may be
conducted, nor patrons allowed to be present, between the hours of midnight and 5:00 a.m.
II. Paragraph 3 of the Conditional Addendum shall be amended by deleting it in its entirety, and
replacing it with language as follows:
3. HDI and City agree that the Lease shall not expire on May 31, 2011, but shall instead be
extended for one additional term of two years, from June 1, 2011 through May 31, 2013
( "Extended Term "). Thereafter HDI, as the successor tenant, shall have four (4) option periods to
extend the Lease term, each option being two (2) years in length. HDI shall be required to give
written notice to Landlord not less than 120 days prior to the expiration of the preceding term of
HDI's intent to exercise an option for an additional term. Failure to meet this deadline shall result
in the expiration of the options, and termination of the lease at the end of the active term. All
terms and conditions of the Lease as specifically modified by this Addendum shall be applicable
during the initial two year Extended Term as well as each of the succeeding option terms, if
exercised. Provisions of the original Lease relating to adjustment of rental for option terms shall
not be applicable but instead shall be superseded by the rental adjustments specified in this
Addendum.
III. Paragraph 4 of the Conditional Addendum shall be amended by deleting it in its entirety, and
replacing it with language as follows:
4. The rent for the initial two year Extended Term, ending May 31, 2013, shall be $10 /square
foot of rentable area per annum. The rent for the four option periods shall be as follows:
June 1, 2013 — May 31, 2014 - $10 /Sq. ft
June 1, 2014 — May 31, 2015 - $10.50 /sq. ft
June 1, 2015 —May
31, 2016 - $11 /sq. ft
June 1, 2016 —
May 31, 2017 - $11.50 /sq. ft
June 1, 2017 —
May 31, 2018 - $12 /sq. ft
June 1, 2018 —
May 31, 2019 - $12.50 /sq. ft
June 1, 2019 —
May 31, 2020 - $13 /sq. ft
June 1, 2020 —
May 31, 2021 - $13.50 /sq. ft
IN WITNESS THEREOF, the parties hereto have duly executed this Conditional Addendum to Lease.
HOWLING DOGS, INC.
At�- A - at�'- 11 -
teve S. Pernetti, President
CITY OF IOWA CITY
Mayor Matthew J. Hayek
Attest:
2La""� A--'* -
ity tldrk
CITY ACKNOWLEDGMENT
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
Date
Approved:
City Attorney
rV /�%4-1'
On this a 3 ,-P'O-- day of O c—, o 8 E 2- , 2012, before me, the undersigned, a notary
public in and for the State of Iowa, personally appeared Matthew J. Hayek and Marian K. Karr, to me
personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk,
respectively, of said municipal corporation executing the within and foregoing instrument; that the seal
affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on
behalf of said municipal corporation by authority of its City Council; and that the said Mayor and City Clerk
as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said
corporation, by it and by them voluntarily executed.
SONDRAE FORT
s � Commission Number 159791
My Comml on EqM Notary Public in and for the State of Iowa
3 7 '0
HOWLING DOGS, INC. ACKNOWLEDGEMENT
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
On this /6 4A day of Ocrotcp- , 2012, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Steve Pernetti, to me personally known, who being
by me duly sworn, did identify himself as the President of Howling Dogs, Inc., empowered to bind Howling
Dogs, and acknowledges the execution of the instrument to be his own voluntary act and deed.
80 DRAE FORT
S� Commission Number 159781
Notary Public in and for the State of Iowa My Commission E�
3 Z so
149 10-2
3i�I.
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 12 -456
RESOLUTION SETTING PUBLIC HEARING FOR NOVEMBER 13, 2012, ON
A PROPOSAL TO CONVEY A SINGLE FAMILY HOME LOCATED AT 2538
NEVADA AVENUE.
WHEREAS, the property at 2538 Nevada Avenue was declared a public nuisance and acquired
by the City through the eminent domain process; and
WHEREAS, the City has entered into a contract, subject to formal approval by the City Council,
for the sale of the property for $64,000 and rehabilitation of the currently existing structure; and
WHEREAS, conveyance of the property and rehabilitation of the currently existing structure is in
the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The City Council does hereby declare its intent to convey the single family home at 2538
Nevada Avenue for rehabilitation of the currently existing structure, for the sum of $64,000.
2. Public hearing on said proposal should be and is hereby set for November 13, 2012, at 7:00
p.m. in Emma J. Harvat Hall of City Hall, 410 East Washington Street, Iowa City, Iowa, or if
said meeting is canceled, at the next meeting of the City Council thereafter as posted by the
City Clerk, and that the City Clerk is hereby directed to cause notice of said public hearing to
be published as provided by law.
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Champion
X Dickens
X Dobyns
X Hayek
X Mims
X Payne
X Throgmorton
Passed and approved this 73rd day of October , 2012.
Approve
City Attorney's Office
n
MAYOR
ATTEST:
CITftLERK
rn I3
UP)
MOMmoftm
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 12 -457
RESOLUTION SETTING PUBLIC HEARING FOR NOVEMBER 13, 2012, ON
A PROPOSAL TO CONVEY A SINGLE FAMILY HOME LOCATED AT 656
SOUTH LUCAS STREET.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City has received a $1.25 million I -Jobs grant to assist in the acquisition and
rehabilitation of twenty -six single family homes to provide affordable housing in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, Resolution 09 -384 authorized the City to acquire and rehabilitate properties
consistent with the grant agreement for I -Jobs funds for the UniverCity Neighborhood
Partnership Program; and
WHEREAS, the City purchased and rehabilitated a single family home located at 656 South
Lucas Street, Iowa City; and
WHEREAS, the City has received an offer to purchase 656 South Lucas Street for the principal
sum of $155,000 (the amount the City paid to acquire the home), plus the "carrying costs ",
which are all costs incurred by the City to acquire the home, maintain it and sell it, including
abstracting and recording fees, interest on the loan to purchase the home, mowing and snow
removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and rehabilitate
the home; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase
of the home.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
1. The City Council does hereby declare its intent to convey a single family home located at
656 South Lucas Street, Iowa City, Iowa, also known as part of Lots 8 and 9, Block 1,
Strohm's Addition, for the sum of $155,000, plus the "carrying costs ".
Resolution No. 12 -457
Page 2
2. A public hearing on said proposal should be and is hereby set for November 13, 2012, at
7:00 p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to
cause notice of said public hearing to be published as provided by law.
It was moved by Throgmorton and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
x Dickens
x Dobyns
Hayek
X Mims
x Payne
x Throgmorton
Passed and approved this 23rd day of orrob r 12012.
►,_
ATTEST:
CITY LERK
Approved by
City Attorney's Office
CITY OF IOWA CITY
MEMORANDUM
Date: September 20, 2012
To: Planning and Zoning Commission
From: Karen Howard, Associate Planner
Re: Preliminary plat for Moss Office Park (SUB12- 00003)
At your last meeting staff recommended deferral of SUB12- 00003, a preliminary plat for the Moss
Office Park that consists of 9 commercial /office lots and one large outlot reserved for future
development. As stated at the last meeting the plat meets the City's standards for a commercial
subdivision, provided that permissions are granted for the off -site improvements necessary for
development to occur on this site. However, staff recommends and the applicant concurs that it
would be in the best interests of the applicant to include the adjacent properties owned by Neal N.
Llewellyn and Hills Bank and Trust Company, Trustee of the Otologic Medical Services, PC 401(k)
Profit Sharing Plan FBO Guy E. McFarland, as an integral part of this subdivision. These parcels,
illustrated on the attached map, are located east of the Moss property and north of the property
owned by Pearson and have about 1360 feet of frontage along Highway 1. As shown on the map,
the future alignment of Oakdale Boulevard crosses this property north of Rapid Creek. The
remainder of the property is currently being farmed or is natural riparian corridor for Rapid Creek.
The Llewellyn /Hills Bank trust property was included in the previous preliminary plat approved for
Moss Green Urban Village in October 2010 because the developer intended to build Oakdale
Boulevard during the first phase of development. Permission was granted by Dr. Llewellyn and
Hills Bank to the plat. This preliminary plat will expire on October 26, 2012 if the land has not been
final platted by that date.
The current proposal includes a new collector street that would cross the southeast corner of the
Llewellyn /Hills Bank trust property and the north edge of the Pearson property to provide the initial
means of access to the first phase of the development of the proposed Moss Office Park. While
construction of this new collector street will likely be adequate for the first phase of development,
the extension of Oakdale Boulevard will be necessary for the full build -out of the Office Paris. For
this reason, it is in the best interest of the developer to include the land within this proposed plat
that includes the future Oakdale Boulevard right -of -way to its intersection with Highway 1. If
included in the new plat, it will provide notice of this arterial street alignment and the potential
future value it may create for the adjacent land. The new preliminary plat will replace the
preliminary plat approved in 2010. Similar to the previous plat, the Llewellyn / Hills Bank trust
property should be platted as outlot(s) reserved for future development.
City staff and the applicant have been in contact with Hills Bank and Trust, who is in the process
of gathering the needed signatures granting permission for this plat. Staff anticipates that
approvals will be received in the next week to two weeks. So as not to delay consideration at the
City Council, staff recommends that the Commission approve both the preliminary plat as
originally proposed and also approve the plat as would be modified to include the Llewellyn / Hills
Bank trust property as indicated on the attached map.
STAFF RECOMMENDATION:
Staff recommends approval of SUB12- 00003, a preliminary plat of Moss Office Park, a 9 -lot,
approximately 243 -acre commercial office park subdivision with outlots reserved for future
September 14, 2012
Page 2
development located north of Interstate 80 and west of Highway 1, provided that necessary
written permission is received from adjacent property owners for off -site improvements necessary
for the first phase of development and written permission is received from Neal N. Llewellyn and
Hills Bank and Trust to include parcels, ID Nos. 0736251001 and 0736276001, as an outlot within
the subdivision, prior to City Council approval.
ATTACHMENTS:
1. Preliminary Plat as originally submitted
2. Overall Concept Plan for the Office Park with the Llewellyn and trust property highlighted
Approved by:
Robert Miklo, Senior Planner,
Department of Planning and Community Development
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Prepared by: Karen Howard, 410 E. Washington St, Iowa City, IA 52240; 319 - 356 -5251 (SUB12- 00003) Jrl
RESOLUTION NO. 12 -458
RESOLUTION APPROVING THE PRELIMINARY PLAT OF- MOSS RIDGE CAMPUS, IOWA
CITY, IOWA (SUB12- 00003).
WHEREAS, the owner, Moss Farms, Inc. Stephen A. Moss and David G. Moss, filed with the City
Clerk an application for approval of the preliminary plat of Moss Ridge Campus, Iowa City, Iowa;
and
WHEREAS, the Department of Planning and Community Development and the Public Works
Department examined the preliminary plat and recommended approval; and
WHEREAS, the Planning and Zoning Commission examined the preliminary plat and, after due
deliberation, recommended approval of the plat, provided road access to the property is resolved
to the satisfaction of the City Council; and
WHEREAS, the preliminary plat conforms with all of the requirements of the City Ordinances of
the City of Iowa City, Iowa.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
1. The preliminary plat of Moss Ridge Campus, Iowa City, Iowa, is hereby approved.
2. The Mayor and City Clerk of the City of Iowa City, Iowa are hereby authorized and directed
to certify this resolution, which shall be affixed to the plat after passage and approval by
law.
Passed and approved this 23rd day of oct., 2012.
MAYOR
�^ Ap oved by
ATTEST: /r(4u� rL �/
CITY CLERK City Attorney's Office
Resolution No. 12-499
Page _ 2
It was moved by rums . and seconded by Champion the
Resolution be adopted, and upon roll call there were:
AYES:
x
—x
x
x
x
x
x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
M WIN
Prepared by: Wendy Ford 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5248
RESOLUTION NO. 12 -459
RESOLUTION DETERMINING THE AREA ADDED TO THE CITY - UNIVERSITY
PROJECT 1 URBAN RENEWAL AREA TO HAVE CONDITIONS OF BLIGHT SUCH
THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT,
DEVELOPMENT, OR A COMBINATION THEREOF, IS NECESSARY IN THE
INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE; DESIGNATING
SUCH AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; AND
ADOPTING AMENDMENT NO. 10 TO THE CITY - UNIVERSITY PROJECT 1 URBAN
RENEWAL PLAN THEREFOR:
WHEREAS, on September 18, 2012, City Council adopted a resolution of
necessity .(Reso. No. 12 -426) declaring that 'one or more blight and 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, Reso No. 12 -426 contemplated an amendment to the City
University Project I Urban Renewal Plan and Area, said amendment being the 10th
amendment thereto, and
WHEREAS, Amendment No. 10 to the City- University Project 1 Urban Renewal
Plan (hereinafter "Amendment No. 10 ") adds approximately 300 acres to the City -
University Project I Urban Renewal Area, as legally described in Amendment No. 10,
attached hereto and incorporated herein by this reference; and
WHEREAS, pursuant to Reso. No. 12 -426, consultation with all affected taxing
entities was duly held and all required responses to the recommendations made by the
affected taxing entities, have been timely made as set forth in the report of the
Economic Development Coordinator filed herewith and incorporated herein by the
reference, which report is in all respects approved; and
WHEREAS, pursuant to said Reso. No. 12 -426, a public hearing was held after
due and proper notice of said public hearing was given, as provided by law, by timely
publication in the Press Citizen.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA:
Section 1. That the findings and conclusions set forth in the Amendment No. 10
for the 2012 Amended Area, legally described and depicted in the attached
Amendment No. 10, are hereby adopted and approved.
Section 2. This Council further finds that the Amendment No. 10 to the City -
University Project 1 Urban Renewal Plan conforms to the general plan for the
development of the City as a whole; and.
so
Resolution No. 12 -459
Page 2
Section 3. That the 2012 Amended Area is a blighted area within the meaning
of Iowa Code Chapter 403; that such area is eligible for designation as an urban
renewal area and otherwise meets all requisites under the provisions of Chapter 403 of
the Code of Iowa; and that the rehabilitation, conservation, redevelopment,
development, or a combination thereof, of such area is necessary in the interest of the
public health, safety or welfare of the residents of this City.
Section 4. That the Amendment No. 10 is hereby approved and adopted as the
"Amendment No. 10 to the City- University Project 1 Urban Renewal Plan for the City -
University Project 1 Urban Renewal Area "; and the City Clerk is hereby directed to file
a certified copy of said Amendment No. 10 with the proceedings of this meeting.
Section 5. That the City- University Project 1 Urban Renewal Plan for the City -
University Project 1 Urban Renewal Plan Area, as amended herein, shall be in full
force and effect from the date of this resolution until the later of the date of termination
set forth in the Plan, as amended, or the date on which payment of all obligations
issued or advances made to carry out the purposes thereof shall be fully provided for.
Said Amendment No. 10 shall be forthwith certified by the City Clerk, along with a copy
of this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded
in the manner provided by law.
PASSED AND APPROVED this 23rd day of October 2012.
ATTEST:
City�Clerk
Appam By
ce- 4
!City Attorney's Office 1u1j71/-1-
-2-
Mayor
Resolution No. 12 -459
Page 3
It was moved by Mims . and seconded by Dickens the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Champion
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
P'
Amendment No. 10
City- University Project
Urban Renewal Plan
City of Iowa City, IA
Original Area Adopted 1969
Amendment No. 1 —1972
Amendment No. 2 —1973
Amendment No. 3 —1973
Amendment No. 4 —1976
Amendment No. 5 —1977
1
Amendment No. 6 —1979
Amendment No. 7 —1984
Amendment No. 8 —1987
Amendment No. 9 — 2001
Amendment No. 10 — 2012
Table of Contents
Section 1 — Introduction
Section 2 - Description of Urban Renewal Area
Section 3 - Area Designation
Section 4 - Base Value
Section 5 - Urban Renewal Plan Objectives
Section 6 - Urban Renewal Activities
Section 7 - Current Urban Renewal Projects
Section 8 - Proposed Urban Renewal Projects
Section 9 - Debt
Section 10 - Urban Renewal Plan Amendments
Section 11 - Effective Period
Section 12 - Repealer
Section 13 - Severability Clause
Attachment No. 1 - Legal Description 2012 Amended Area
a�
Attachment No. 2 - Location Map: City- University Project I Urban Renewal Area, as amended
2
Section 1 - Introduction
The City- University Project I Urban Renewal Plan ( "Plan ") for the City- University Project I Urban
RenihaW ,Afeo ),i adopted in 1969, and amended in 1972, twice in 1973, 1976, 1977,
1979, 1984, 1987 and X001, is being further amended to add additional land to the Urban
Renewal`Are`a a'nd jp add and confirm the list of proposed projects to be undertaken within the
Area ) `
Of the previous amendments to the Plan, only the 2001 Amendment added land to the Original
Area. The Original Area, the 2001 Amended Area, and this 2012 Amended Area, comprise the
Area.
Except as modified by this Amendment, the provisions of the original City- University Project I
Urban Renewal Plan, as previously amended, are hereby ratified, confirmed, and approved and
shall remain in full force and effect. In case of any conflict or uncertainty, the terms of this
Amendment shall control.
Section 2 - Description of Urban Renewal Area
The legal description of the property being added to the City- University Project I Urban Renewal
Area is attached hereto as Addendum No. 1 — 2012 Amended Area. A map of the 2012
Amendment Area is Addendum No. 2. A map of the entire City- University Project I Urban
Renewal Area, as amended, is attached hereto as Addendum No. 3.
Section 3 — Area Designation
With the adoption of this Amendment, Iowa City adds and designates the 2012 Amended Area
as an area of blight and appropriate for blight remediation.
A substantial portion of the land located in the 2012 Amended Area has been the subject of city
planning efforts over the last several years, and is characterized by a mix of industrial,
commercial and residential uses. The Iowa City Comprehensive Plan, specifically the Riverfront
Crossings sub -area plan, which governs a portion of the 2012 Amended Area, identifies
inconsistent development patterns, confusing traffic circulation and a lack of aesthetic cohesion
that has plagued the area and resulted in a lack of private investment in this sub -area. Other
portions of the 2012 Amended Area are located within the Central Planning District and
Downtown Planning District, according to the Comprehensive Plan. The Central District Plan
echoes the concerns of the Riverfront Crossings sub -area plan, noting the problem of traffic
congestion, poor streetscapes and building designs, and incompatible land uses along the
South Gilbert Street corridor in particular.
In 2008, historic flooding of the Iowa River inundated parts of the 2012 Amended Area, including
the city's waste water treatment plant and businesses along the river. The City now seeks to
mitigate the impact of future flooding by relocating businesses and public infrastructure from
flood -prone properties and creating useable public open spaces, including a riverfront park, that
if inundated in the future will provide holding space for flood water and will not have significant
damage. This is consistent with the Central District Plan, which notes that development of trails,
parks and other green spaces along the river may encourage development and reinvestment
throughout the rest of the area.
These flood mitigation efforts are coupled with efforts by the City to improve the water quality
and increase the biodiversity of the Iowa River, frequently cited as one of the most polluted
waterways in Iowa, as well as expand recreational opportunities such as fishing, boating and
tubing. In addition, the Riverfront Crossings sub -area plan notes that most existing development
has turned its back on Ralston Creek, which runs through the heart of the Amended Area and
has been degraded over time by polluted urban runoff. The City seeks to open up and restore
Ralston Creek and its banks in order to enhance the creek as a community amenity.
Taken together, these factors substantially impair and hinder sound property growth and
redevelopment of the 2012 Amended Area, resulting in declining tax revenues, municipal
financial obligations beyond the current capabilities of the City, and decreasing private capital
investments.
Section 4 — Base Value
The base value of the 2012 Amended Area is the assessed value as of January 1_, 201
Section 5 - Urban Renewal Plan Objectives --
In addition to the objectives listed in the Plan, as previously amended, the followingobje_ctives °,
are added: s
1. To create a more livable community by supporting the integration of safe, reliable
and economical transportation; affordable, energy- efficient housing, and the suitable
reuse of idle or underutilized land;
2. To remediate blight through the development of Riverfront Crossings east of the
Iowa River into a new, mixed use pedestrian- oriented district;
3. To establish attractive design standards for new and rehabilitated buildings in the
Urban Renewal Area, as amended, in order to create a vibrant, mixed -use,
pedestrian- oriented neighborhood;
4. To create residential living spaces for young professionals and other members of the
"creative class" by offering a variety of housing options, including high- density,
affordable urban apartments, lofts and townhomes;
5. To increase the amount of office space that is available in the Urban Renewal Area,
as amended, by promoting mixed -use developments that contain quality office
space;
6. To develop a multi -modal transportation network that encourages walking, biking,
public transit and passenger rail as alternatives to automobile use;
7. To create a network of green streets with improved streetscapes and landscaping
and enhanced pedestrian amenities;
8. To remediate blight through the encouragement of new commercial and residential
development to occur outside of the floodplain, providing the opportunity to develop
new amenities like parks, trails and other green space along the Iowa River;
9. To enhance recreational opportunities such as boating, fishing and tubing on the
Iowa River through changes to the Burlington Street dam and improvements to the
river's banks and water quality;
10. To clean up and restore Ralston Creek in order to provide an additional natural and
recreational amenity for the community.
N
Section 6 - Urban Renewal Activities
No changes to the urban renewal activities are made by this Amendment. All activities, or
actions, from previous Plan amendments continue, namely: clearance and development of
buildings; incentivizing improvements to historic and non - historic structures; making certain
public improvements to roadways and facilities, all as detailed in previous Plan amendments.
Section 7 — Current Urban Renewal Projects
The following Urban Renewal Projects were authorized prior to July 1, 2012 and are continuing:
Development Agreements:
1. Resolution No. 11 — 163: Development agreement between the City of Iowa City and
Marc Moen for 118 East College St., dated May 6, 2011.
2. Resolution No. 12 —154: Development agreement between the City of Iowa City and
Central Park L.L.C. for 114 S. Dubuque St., dated April 3, 2012.
Planning, Engineering and Surveying:
3. Phase I & II Environmental Assessments on College /Gilbert site and Riverside
Drive /Hwy 6 City Transit Facility site
4. ALTA (American Land & Title Association) Survey on College /Gilbert site and
Riverside Drive /Hwy 6 City Transit Facility site
5. Downtown & Riverfront Crossing Master Planning services
Section 8 — Proposed Urban Renewal Projects
Although certain project activities may occur over a period of years, in addition to the projects
previously proposed in the City- University Project I Urban Renewal Plan, as previously
amended, the Proposed Urban Renewal Projects under this Amendment include:
1. Public Improvement Projects:
Project
Date
Estimated cost
Rationale
Rock Island Train Depot
2013 -2018
Not to exceed
Economic Development: The depot is a
acquisition'
$640,000
key piece of regional transit - oriented
development.
Intersection of
2014
Not to exceed
Economic Development: This project
Burlington St. and
$1,140,000
will aid in traffic circulation and.
Clinton St.
enhance pedestrian safety.
im rovements
Central Business District
2012 -2016
Not to exceed
Economic Development: This project
(CBD) streetscape
$1,500,000
will enhance the'CBD aesthetics
enhancement
making it more attractive to business
development, visitors and residdnts.
' See Public Building Analysis below
5
2. Blight Remediation
Project
Date
Not to exceed
Rationale
Total
2012 -2018
$3,280,000
Blight and Economic Development:
2. Blight Remediation
Project
Date
Estimated
Cost
Rationale
Northeast corner of
2012 -2018
Not to exceed
Blight and Economic Development:
College and Gilbert
Attorney fees
$750,000
Remediate blighted by preparing
Streets site preparation
Not to Exceed $700,000
vacant and crumbling properties for
(blight remediation)
commercial and residential
development Y
Total
Not to exceed
_=
$750,000
3. Planning, engineering fees, costs and attorney fees to support urban renewal projects
Project
Date
Estimated cost -
Planning fees
On -going
Not to exceed $150,000
Engineering fees
On -going
Not to exceed $500,000
Attorney fees
On -going
Not to exceed $ 50,000
Total
Not to Exceed $700,000
PUBLIC BUILDING ANALYSIS
Alternative development and funding options for the Rock Island Train Depot acquisition
project listed above include the City going through a process that would result in the issuance of
general obligation bonds to fund each project. This option is less feasible than the use of TIF
funds because it would result in the City bearing the burden of financing a project that benefits
all affected taxing entities and region. Because these projects will benefit County residents and
school patrons, the use of tax increment is the most appropriate funding mechanism to share
the cost of such improvements among the affected taxing entities. This project, as described
below, demonstrates regional benefits to both the County and school district. The City also
intends to consider the use of other funding sources such as state, federal and /or local grants,
utility revenues, user fees, private donations, general obligations notes or bonds, local option
sales tax revenues, and hotel -motel revenues.
The acquisition of the former Rock Island Railroad Depot is a key piece of the
redevelopment of the Urban Renewal Area, as amended. The City intends to return this historic
property to its original purpose as a railway depot for passenger rail service. It is anticipated that
this passenger rail service will run from Chicago to Omaha and beyond. This location will serve
as a key regional stop, bringing visitors to the region, as well as providing alternative
transportation for regional citizens who wish to travel to these hub cities. As the rail system is
redeveloped, it will serve as Iowa City's train connection to Chicago and beyond to the east, and
to Des Moines and beyond to the west. Federal funding for the project has already been
committed. The redevelopment of this building will allow for a service that provides regional
G
benefits beyond the City's boundaries, therefore it is fair and rational that this building be
supported by TIF.
Section 9 — DEBT
1. (FY13) Constitutional Debt Limit: $ 230,805,392
2. Current general obligation debt: $ 75,320,000.
3. Proposed amount of indebtedness to be incurred: A specific amount of tax increment debt
to be incurred (including direct grants, loans, advances, indebtedness, bonds or other
incentives) for projects 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 Proposed Projects discussed in Section 8 will be in the $4.8 million
range. This is only an estimate and covers projects to be implemented over a period of time.
In no event will the City Council exceed this estimated amount of indebtedness without
amendment to this Plan. This estimation is merely meant for planning purposes.
Section 10 — Urban Renewal Plan Amendments:, -
If the City of Iowa City desires to amend this Plan, it may do so in conformance with pplicbl�e
state and local laws.
Section 11 — Effective Period
This Urban Renewal Plan Amendment No. 10 will become effective upon its adoption by the
City Council of Iowa City Notwithstanding anything to the contrary in the Urban Renewal Plan,
any prior amendment, resolution, or document, the Urban Renewal Plan shall remain in effect
until terminated by the City Council, and the use of incremental property tax revenues, or the
"division of revenue," as those words are used in Chapter 403 of the Code of Iowa, will be
consistent with Chapter 403 of the Iowa Code.
The Original Area adopted in 1969 has no sunset because the Plan was adopted before 1995;
in addition, the area has a blight designation. The 2001 Amended Area that was added by
Amendment No. 9 as an economic development area. Debt was first certified for the Original
Area and 2001 Amended Area on December 1, 2003. The 2012 Amended Area is a blighted
area. The Area is a mixed blight and economic development area. Division of revenue shall
continue on the Area, including all amendment areas, for the maximum period allowed by law.
Section 12: Repealer
Any parts of the previous Plan, as previously amended, in conflict with this Amendment are
hereby repealed.
Section 13: Severability Clause
If any part of this Amendment is determined to be invalid or unconstitutional, such invalidity or
7
unconstitutionality shall not affect the validity of the previously adopted Plan as a whole or the
previous amendments to the Plan, or any part of the Plan not determined to be invalid or
unconstitutional.
Attachment No. 1
Legal Description — 2012 Amended Area
Beginning at the NW corner of Outlot 26, Original Town Subdivision; Thence south along the
eastern R.O.W. line of Van Buren Street to where said R.O.W. ends at a point along the
western boundary of Block 8, Lyon's 2nd Addition; Thence northwesterly along R.O.W. line to a
point on the north R.O.W. line of the Iowa Interstate Railroad south of block 1, Lyon's 1St
Addition; Thence southwesterly to the south R.O.W. line of the Iowa Interstate Railroad north of
block 3, Lyon's 1St Addition; Thence southeasterly along the south Railroad R.O.W. to the
eastern boundary of Van Buren Street south of the Railroad; Thence along said eastern
boundary of Van Buren Street to the north right -of -way line of Kirkwood Avenue; Thence east to
a point 11' west of the extended NE corner of lot 3, block 6, F.S. & E.W. Lucas Addition;
Continuing south to a point 126', more or less, south of the R.O.W. line of the E -W alley west of
Diana Street and south of lots 1, 2, and 3, block 6, R.S. Lucas Addition; Thence westerly to a
point on the east R.O.W. line of the N -S alley west of lots 4 & 5, block 6, R.S. Lucas Addition;
Crossing the alley to the west R.O.W. line of said alley, continue south 7.5', more or less, to the
NE corner of lot 30, Highland Park Addition; Thence westerly to the NW corner of lot 31,
Highland Park Addition; Thence southerly to the SW corner of said Lot 31; Crossing Highland
Ct. to the NE corner of Lot 15 Highland Park Addition; Thence southerly to the SE corner of Lot
9 Highland Park Addition; Crossing Highland Ave. to the south R.O.W. line; Thence westerly
along said south R.O.W. line to where it meets the Crandic Railroad; Thence south along the
Crandic Railroad to the south R.O.W. line of Highway 6; Thence west along the south R.O.W.
line of Highway 6 to the eastern bank of the Iowa River; Thence southerly following said eastern
bank of the river to a point where the river bank meets the extended southern line of Sturgis
Ferry Park; Thence westerly to the SW corner of Sturgis Ferry Park; Thence continuing westerly
to the west R.O.W. line of Riverside Drive; Thence northerly along said west R.O.W. line to the
centerline of Highway 6; Thence easterly along said centerline to the western bank of the Iowa
River; Thence following the western bank of the Iowa River to the centerline of Myrtle Street
extended to the Iowa River; Thence west to the west R.O.W. line of Riverside Drive /State
Highway 1; Thence northerly along said highway R.O.W. to the north R.O.W. line of Burlington
Street; Thence east to the east bank of the Iowa River; Thence south to the south R.O.W. line of
Court Street; Thence easterly along the south R.O.W. line of Court Street to the west R.O.W.
line of Maiden Lane; Thence south along said west R.O.W. line to Ralston Creek; Thence
southwesterly along the creek to the south R.O.W. line of Prentiss Street; Thence east along
said south R.O.W. line to the west R.O.W. line of Gilbert Street; Thence south along said west
R.O.W. line to a point where it meets the extended centerline of Bowery Street; Thence easterly
to a point where the centerline of Bowery Street meets the extended east R.O.W. line of Gilbert
Street; Thence north along said east R.O.W. line to the northwest corner of Lot 1 Lyman Cooks
Subdivision of Outlot 25; Thence east along the south R.O.W. line of Burlington Street to the
point of beginning. Also including Lots 5 and 6 in Block 43, Original Town, and the alley and full
width of the College Street right -of -way adjacent thereto.
Q
Attachment No. 2
City-University Project I Urban Renewal Area
As Amended
Urban renewal area boundary
1969 Original Area
2001 Amended Area
2012 Amended Area
qNF
10
? CITY OF IOWA CITY
I _ 10-23-42
�.-`'� 7
MEMORANDUM
Date: October 4, 2012
To: Tom Markus, City Manager
From: Geoff Fruin, Assistant to the City Manager
Re: Operating Agreement with the Iowa City Downtown District
Introduction:
In 2011, the City was presented with a petition from downtown property and business owners to
establish a Self Supported Municipal Improvement District in accordance with State of Iowa law.
On December 6, 2011 the City Council passed ordinance No. 11 -4460, which officially created
the district. Since that time the Iowa City Downtown District (ICDD) has made considerable
progress establishing the governing structure and organizational foundation for the district. In
order to ensure compliance with State law and effectively facilitate the transfer of property tax
dollars collected on behalf of the ICDD, the two parties have worked to develop an operating
agreement that details the responsibilities of each entity. The ICDD Board of Directors
unanimously voted to execute the proposed operating agreement at their September 27th, 2012
meeting.
Overview / Analysis:
The proposed operating agreement was developed by the City Attorney's Office and negotiated
with the ICDD. The term of the agreement matches the petition and enabling ordinance, all of
which expire June 30, 2016. The following is a list of key components contained in the
agreement:
• The ICDD shall submit a budget to the Council by December 1 for the following fiscal
year (July 1 — June 30).
• The ICDD shall biannual reports to the City Manager's Office by June 1 and December 1
of each year detailing progress, milestones and performance in accordance with the
budget, petition and enabling ordinance.
• The City shall release property tax funds and tax increment financing funds on a
quarterly basis, subject to the ICDD's compliance with the reporting requirements of the
agreement.
• The ICDD must submit an annual report to be prepared by a certified public accountant
that reviews the financial condition and practices of the ICDD in accordance with an
agreed upon set of financial review procedures outlined in the agreement.
• The agreement details various minimum insurance requirements that the ICDD must
maintain.
The ICDD is prepared to address the City Council at the October 23`d, 2012 regular formal
meeting. Along with a general status update, the ICDD will share their current fiscal year budget
highlights in accordance with the proposed operating agreement. Assuming Council's approval
of the operating agreement, the City will release accumulated tax funds to the ICDD in late
October or early November.
Recommendation:
Staff recommends that this agreement be forwarded to the City Council and that the ICDD is
afforded the opportunity to present to the Council on October 23�d, 2012.
Prepared by: Geoff Fruin, Assistant to the City Manager, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5014
RESOLUTION NO. 12 -460
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO
ATTEST AN OPERATING AGREEMENT BETWEEN THE CITY OF IOWA CITY
AND THE IOWA CITY DOWNTOWN SELF SUPPORTED MUNICIPAL
IMPROVEMENT DISTRICT
WHEREAS, upon the petition of property owners pursuant to Chapter 386 of the Iowa Code, on
December 6, 2011 the Iowa City City Council passed ordinance No. 11 -4460, which officially
established a Self Supported Municipal Improvement District ( SSMID) in accordance with State
of Iowa law; and
WHEREAS, the Iowa City Downtown Self Supported Municipal Improvement District a /k /a Iowa
City Downtown District (ICDD) has been established in conformance with the original petition
and enabling ordinance; and
WHEREAS, In order to ensure compliance with State law and effectively facilitate the transfer of
property tax dollars collected on behalf of the ICDD, the two parties have worked to develop an
operating agreement that details the responsibilities of each entity; and
WHEREAS, it is in the best interests of the citizens of Iowa City for the City to enter into the
attached Operating Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Mayor is authorized to sign and the City Clerk is
authorized to attest the attached SSMID Operating Agreement with the Iowa City Self Supported
Municipal Improvement District.
Passed and approved this 23rd day of October , 20 12
11 . • �
Apffpved by
ATTEST: 2?Z"iw� t D /1Lo�l IL-
CITY'CLERK City Attorney's Office
Resolution No. 12 -460
Page 2
It was moved by Payne . and seconded by Dickens the
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
Y
x
_ x
x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
SSMID OPERATING AGREEMENT
Ra
THIS AGREEMENT is made this -33 day 0 cra$ R, 2012 by and between the City of Iowa City,
Iowa, a municipal corporation (hereinafter "City ") and Iowa City Downtown Self Supported Municipal
Improvement District an Iowa not for profit corporation (hereinafter "Operator ").
WHEREAS, the Iowa City Downtown Self Supported Municipal Improvement District ( "SSMID
District ") was created by the City of Iowa City by Ordinance No. 11 -4460, passed December 6, 2011
(hereinafter "Ordinance ") pursuant to the provisions of Chapter 386, Code of Iowa (the "Act ") for the
purposes of undertaking of actions and the design, and construction of any and all improvements
authorized by the Act and the performance of administration, redevelopment and revitalization of the
SSMID District as authorized by the Act for the benefit of property within the SSMID District; and
WHEREAS, the Operation Tax to be levied by the City upon property within the SSMID District
may be used for the purposes of paying the administrative expenses of the SSMID District as defined and
authorized in the Act or paying part or all of the maintenance expenses of "improvements" or "self -
liquidating improvements" as defined in the Act with respect to the SSMID District which levy will
continue for a period of four years commencing with the levy of taxes for collection in the fiscal year
beginning July 1, 2012 and continuing for three additional years; and
WHEREAS, the rate of the Operation Tax to be levied annually shall not exceed a rate of two
dollars ($2) per one thousand dollars ($1000) of taxable value of the property, and
WHEREAS, the Petition to establish the SSMID District, a copy of which (absent signatures) is
attached hereto as Exhibit "A" (hereinafter "Petition ") further states that all amounts collected in the
Operation Fund shall be disbursed annually for the purposes set forth in the Petition, at such times, in
such amounts, and under such conditions as shall be recommended to the City Council by the SSMID
Advisory Board; and
. WHEREAS, the Ordinance provides that the City may disburse the amounts collected in the
Operation Fund in accordance with recommendations of a SSMID Advisory Board as described in
paragraph 7 of the Petition. Any such disbursements shall be made to a SSMID Board, as described in
paragraph 6 of the Petition and established in accordance therewith, for one or more of the following
purposes:
a) Development and management of activities in support of marketing, business retention and
attraction, including, but not limited to:
Establish databases
Space referrals and assistance
Marketing activities, including media and advertising campaigns and communication materials
Miscellaneous business support services
Establishment and promotion of special events, festivals, and activities
Further improvements and expansion of the Park & Shop /Bus & Shop Program
1
b) Physical or other improvements designed to enhance the image and appearance of the
Proposed District, including, but not limited to:
Lighting Improvements
Seasonal and decorative enhancements
Signage and banners
Landscaping
c) To hire an Executive Director (a /k /a Business Development Manager) and Assistant Executive
Director (a /k /a Assistant Business Development Manager) who will work for the Board to
manage the work of the Iowa City Downtown Self Supported Municipal Improvement District
Board and to fulfill the intent of the Petition; and
WHEREAS, paragraph 6 of the Petition defines the SSMID Board as follows:
The Proposed Board shall establish itself as a 501(c)(6) non - profit organization with a Board of
Directors consisting of fifteen(1S)to nineteen(19)members serving four year terms.
Board membership shall consist of voting members:
1. Two from property owners or their representatives from a single property
within the Proposed District that has an assessed value in excess of 1.00 of the total
assessed value of property within the district boundaries as of January 1, 2011.
2. Two from property owners or their representatives from a single property with
the Proposed District that has an assessed value less than of 1.09 of the total assessed
value of property within the district boundaries as of January 1, 2011.
3. Two from business owners within the Proposed District that lease more than
3,000 square feet of commercial space.
4. Two from business owners within the Proposed District that lease less than
3,000 square feet of commercial space. .
5. One from a business in the Northside Marketplace area.
6. One from The University of Iowa.
ii. Board membership may consist of up to four (4) other stakeholders of the Proposed
District as voting members of the Board
iii. Board membership shall consist of ex- officio non - voting members from:
1. Iowa City - Coralville Area Convention and Visitors Bureau;
2. Iowa City Area Chamber of Commerce;
3. Iowa City Area Development Group: and
4. City of Iowa City
iv. Board membership shall include the Downtown Business Development Manager as an
ex- officio non - voting Board member.
2
WHEREAS, paragraph 7 of the Petition defines the SSMID Advisory Board as follows:
The SSMID Advisory Board to the City Council shall be made up of specific members of the
Proposed Board and will be chosen by the Proposed Board as follows:
a) A property owner or their representative from a single property within the
Proposed District that has an assessed value in excess of 1.0% of the assessed value of
property within the district boundaries as of January 1, 2011.
b) A property owner or their representative from a single property within the
Proposed District that has an assessed value less than 1.0% of the total assessed value
of property within the district boundaries as of January 1, 2011.
C) A business owner within the Proposed District that leases more than 3,000
square feet of commercial space.
d) A business owner within the Proposed District that leases less than 3,000 square
feet of commercial space.
e) One from a business in the Northside Marketplace area.
WHEREAS, the Petition expresses an intent that all operation taxes levied and collected on
behalf of the SSMID District shall be expended for new, additional or enhanced services within the
SSMID District and that the City shall not diminish the type and extent of governmental services; for
reference purposes attached as Exhibit "V is a general description of services provided by the City
within the SSMID District as of the date of this Agreement; the parties understand that this Agreement
may not and does not affect the ability of the City Council to modify or eliminate such services as it
determines best in its legislative judgment; and
WHEREAS, the Petition expresses an intent that, notwithstanding the fact that the Proposed
District is located within the boundaries of a Tax Increment Financing District which has been created by
the City, an amount of funds which would be derived from the annual SSMID levy of the Operation Tax
against property within the Proposed District if the Proposed District were not located within such Tax
Increment Financing District shall be made available annually for the services, improvements, and
activities set out in this Petition, and that the City should take all actions necessary to accomplish this
purpose, including, if necessary, allocation to these services, improvements and activities of a portion of
the incremental property taxes which are attributable to properties within the Proposed District. These
allocations may be from the SSMID levy or other sources;'and
WHEREAS, the SSMID Advisory Board shall submit to the City Council by December 1 of each
year the SSMID.Budget for the next fiscal year, except that the SSMID Advisory Board shall submit the
budget for fiscal year 2013 (July 1, 2012 through June 30, 2013) to the City Council on or before the
approval of this-Agreement by the City Council; and
WHEREAS, the services, improvements and activities to be undertaken within the SSMID District
further the general and economic development objectives of the City - University Project 1 Urban
Renewal Plan and further the Iowa Code Chapter ISA economic development public purposes by
assisting in the creation of new jobs and income in the City and the retention of existing jobs and income
in the City that would otherwise be lost; and
3
WHEREAS, the Petition expresses an intent that the City enter into an operating agreement with
the Operator to manage and undertake services, improvements and activities described in the Petition
and Ordinance and to appropriate funds from the Operation Fund and certain funds from the applicable
tax increment financing funds to the Operator for those purposes.
NOW, THEREFORE, in accordance with the Ordinance establishing the SSMID District, the intent
of the Petition and in consideration of the respective agreements, undertakings and mutual covenants
herein contained, the parties mutually agree as follows:
1. Designation of Operator. The City hereby engages the Operator to operate, manage and
undertake the SSMID services, improvements and activities in accordance with the Ordinance and
Petition. Operator shall conduct such SSMID services, improvements and activities in accordance with
the current annual SSMID budget submitted by the SSMID Advisory Board and approved by the Iowa
City City Council, including all SSMID program descriptions, terms and conditions contained therein.
Each annual approved SSMID budget, including all attached descriptions, terms and conditions, shall be
incorporated and made a part of this Agreement.
2.. Term of Agreement. The term of this Agreement shall be approximately four years
commencing on the date the Agreement has been signed by both parties and ending June 30, 2016. This
Agreement will terminate prior to the end of such term in the event the SSMID District is dissolved and
terminated by action of the City Council pursuant to Iowa Code Section 386.5 or in the event of default
as specified in Section 14. In the event the ordinance creating the SSMID District is amended in
accordance with Iowa Code Section 386.4 to extend the period for levy of the Operation Tax, then the
parties may, by subsequent written agreement, elect to extend the term of this Agreement.
3. Licensing; Compliance with Laws. Operator shall obtain and maintain for the entire
term of this Agreement all required licenses or permits required by the federal government, the state of
Iowa or any agency or applicable subdivision thereof for the 'SSMID services, improvements and
activities to be performed in accordance with this Agreement. The Operator shall comply with all
applicable federal, state and local laws, statutes, ordinances, rules and regulations in performing the
SSMID services, improvements and activities in accordance with this Agreement.
4. Manager, Personnel. Operator shall employ an Executive Director and Assistant
Executive Director with adequate qualifications and experience and shall employ all needed additional
personnel to supervise the operation, management and undertaking of SSMID services, improvements
and activities in accordance with this Agreement. All employees and agents of Operator will be deemed
employees or agents exclusively of the Operator and will not for any purpose be considered employees
or agents of the City. The Operator assumes full responsibility for the actions of its employees and
agents and the Operator shall be solely responsible for the supervision, daily direction and control.
5. Assignment. The Operator acknowledges that it is prohibited from assigning or
otherwise disposing of this Agreement or any of its contents, or of its right, title or interest therein to
any other entity without the previous consent in writing from the City.
6. Budgets. The SSMID Advisory Board shall submit to the City Council by December 1 of
each year the SSMID budget for the next fiscal year, except that the SSMID Advisory Board shall submit
the budget for the 2013 fiscal year (July 1, 2012 — June 30, 2013) to the City Council on or before the
4
Council's approval of this Agreement. After Council approval of the budget the Operator shall have the
authority-to transfer funds budgeted for specific items from one unexpended balance to another
although such transfer shall not increase the total amount budgeted.
7. Biannual Reports. The Operator shall submit biannual reports to the City Manager prior
to December 1 and June 1 during the term of this Agreement which biannual reports shall include, but
not be limited to, information on SSMID services, improvements and activities actually rendered, goals
and performance objectives wholly.or partially attained, other relevant performance measurement data
and information on the costs and expenses incurred by Operator in accordance with the current annual
approved SSMID budget. The Operator shall maintain and provide to the City upon request properly
executed payroll and time records, invoices, contracts, vouchers, or other acceptable accounting
documents evidencing the nature and propriety of the costs and expenses incurred by Operator in
conformance with the Ordinance, Petition, this Agreement, and the current annual approved SSMID
budget.
S. Payment of Funds. Subject to Operator's submittal of required biannual reports the City
shall pay Operator all SSMID operation tax levy funds and tax increment financing funds attributable to
the operation tax levy received by City as follows: funds received by October 10 shall be paid by October
15; funds received by January 10 shall be paid by January 15; funds received by April 10 shall be paid by
April 15; all remaining funds shall be paid on or before July 15 of the following fiscal year.
The payments made pursuant to this Agreement shall be used to pay for the reasonable and
necessary costs and expenses.of providing SSMID services, improvements and activities and shall not be
used to pay the general expenses incurred by the Operator for carrying out other non -SSMID programs
and responsibilities.
9. Equipment. All equipment purchased by operator with funds pursuant to this
Agreement shall be utilized by Operator only in conjunction with SSMID services, improvements and
activities. Upon expiration of the useful life of such equipment, all proceeds from the sale of such
equipment shall be utilized to further the SSMID services, improvements and activities. Upon
termination of this Agreement, all such equipment shall be transferred to the City unless another
disposition is agreed to by City.
10. Financial Reports, Records Inspection and Retention. The Operator shall maintain on a
current basis accurate books and records of the expenses, income, revenues, contingent liabilities, and
general operation of the SSMID services, improvements and activities. At the end of each fiscal year
(July 1 -June 30) beginning with the fiscal year ending June 30, 2013, Operator shall, at its sole expense,
cause an annual report to be prepared by a certified public accountant that reviews the financial
condition of the Operator in accordance with the Financial Review Procedures set forth at the end of
this paragraph. Said report shall also report all income and revenue for the Benchmarks Project in
accordance with the parties' Benchmark Project Agreement. Said completed report shall be submitted
to the City Manager prior to October 1 of each year. In the event said report, in the opinion of City,
includes a negative finding, the City may require a full audit by an auditor of its choice at the sole
expense of Operator. The Operator will permit the City, at any time, to examine all books and records
of Operator, including contracts, invoices, vouchers, payroll and time records, and other documentation
of costs and expenses related to SSMID services, improvements and activities. Such books and records
5
will be available for examination and inspection by the City at the office of Operator during normal
business hours. All such books and records shall be retained by the Operator for a period of at least
three years following the end of the applicable fiscal year.
Financial Review Procedures
A. Confirm June 30, 2013 bank balances directly with bank
B. Review reconciliation of June 30, 2013 bank balances to June 30, 2013 general ledger balances.
Review the five largest outstanding items included on bank reconciliation for proper inclusion on
bank reconciliation. Review July 2013 bank statement for five largest items for proper
inclusion /exclusion on bank reconciliation.
C. Confirm total payments made by the City to SSMID during the 12 months ended June 30, 2013
and trace these payments to deposit in bank statements.
D. Trace all items on the June 30, 2013 balance sheet to detail supporting
schedules /documentation /reconciliations.
E. Select twenty -five disbursements of funds over $500, trace to proper classification within the
general ledger and trace to cancelled check and invoice /documentation that supports the
payment is appropriate under the SSMID Operating Agreement guidelines as described below:.
Development and management of activities in support of marketing, business retention and
attraction, including, but not limited to:
• Establish databases
• Space referrals and assistance
• Marketing activities, including media and advertising campaigns and communication
materials
• Miscellaneous business support services
• Establishment and promotion of special events, festivals, and activities
• Further improvements and expansion of the Park & Shop /Bus & Shop Program
Physical or other improvements designed to enhance the image and appearance of the
Proposed District, including, but not limited to:
• Lighting Improvements
• Seasonal and decorative enhancements
• Signage and banners
• Landscaping
To hire an Executive Director and Assistant Executive Director who will work for the Board to
manage the work of the Iowa City Downtown Self Supporting Municipal Improvement District
Board and to fulfill the intent of the Petition.
11. Insurance.,
a. General. The operator shall purchase and maintain insurance as set forth in this Section
to protect the Operator and the City throughout the duration of this Agreement. Said insurance shall be
provided by an insurance company (ies) approved by the Insurance Commissioner of the State of Iowa
or have no less than the equivalent of an A.M. Best rating of, "A" and said insurance shall not be subject
to cancellation except after at least: thirty (30) days written notice to the City, except in the event of
non - payment of premium then 10 days' notice shall be required. To the greatest extent possible, all
6
policies shall be written on a per occurrence basis, not a claims -made basis, and in form and amounts
and with companies satisfactory to the City. The insurance policy (ies) or duly executed Certificate(s) of
Insurance for the same in compliance with Subsection 10(k), together with satisfactory evidence of the
payment of the premium thereof, shall be deposited with the City as soon as practical following the date
of this Agreement and such documentation of insurance renewal shall be deposited with the City not
less than thirty (30) days prior to the expiration of the existing insurance term. If the Operator fails to
comply with such requirements, City may obtain such insurance with funds from the SSMID District
Operation Fund and keep same in effect, and the Operator shall pay City the premium cost thereof plus
interest upon demand. The Operator shall not commit any act which shall invalidate any policy *of
insurance.
b. Workers Compensation Insurance. The Operator shall procure and maintain Workers
Compensation Insurance, including Employers Liability Coverage, in accordance with all applicable
statutes of the State of Iowa. The coverage limits shall include $500,000 each accident for Bodily Injury
by Accident, $500,000 each accident. for Bodily Injury by Disease, and $500,000 policy limit for Bodily
Injury by Disease.
C. Commercial General Liability Insurance. The Operator shall procure and maintain
throughout the duration of this Agreement, Commercial General Liability- insurance on a per occurrence
basis with limits of liability not less than $1,000,000 per occurrence and $2,000,000 aggregate combined
single limit, Personal Injury, Bodily Injury and Property Damage. Coverage shall include the following
extensions: (a) Contractual Liability, (b) Premises and Operations, (c) Products and Completed
Operations, Independent Contractors Coverage; (e) Personal and Advertising Injury. Coverage shall be
no less comprehensive and no more restrictive than the coverage provided by a standard form
Commercial General Liability Policy. Coverage shall include a governmental immunity endorsement. Any
additional exclusions shall be clearly identified and shall be subject to the review and approval of the
City.
d. Automobile Liability Insurance. The Operator shall procure and maintain throughout the
duration of this Agreement, Automobile Liability Insurance with limits of liability of not less than
$1,000,000 per occurrence combined single limit including Bodily Injury and Property Damage. Coverage
shall include all owned vehicles, all non -owned vehicles, and all hired vehicles. The insurance must
include Contractual Liability coverage and include a governmental immunities endorsement. Any fellow
employee exclusion shall be deleted.
e. Umbrella /Excess Insurance. The Operator shall procure and maintain Umbrella /Excess
Insurance with a limit of $1,000,000 each occurrence and $1,000,000 aggregate. The coverage specified
in Subsections 10 (c) and (d) above may be satisfied with a combination of primary and Umbrella /Excess
Insurance. The Umbrella /Excess insurance shall also be written on a per occurrence basis.
f. Directors & Officers Liability. The Operator shall procure and maintain throughout the
duration of the Agreement Directors and Officers Liability, including Employment Practices Liability
insurance with limits of liability not less than $1,000,000 Each Claim and $1,000,000 Aggregate.
g. Crime Insurance. The Operator shall procure Employee Dishonesty protection including
losses from directors, officers and volunteers in amount equal to $100,000. The Operator shall also
7
procure Computer Fraud and Funds Transfer Fraud protection each in an amount of $100,000. Such
policy (ies) shall name the City as a Loss Payee.
h. Property Insurance. The Operator shall assume, throughout the duration of this
Agreement, full responsibility for all loss-or damage from any cause whatsoever to any property brought
onto City property that is owned or rented by the Operator, or by any of the Operator's employees,
agents, subcontractors, suppliers or their employees; to the extent, that such property is utilized in
carrying out the provisions of this Agreement. The operator shall procure and- maintain throughout the
duration of this Agreement, Property Insurance with limits equal to the replacement value and covering
all property used by Operator in administering and performing the SSMID services, improvements and
activities. The Property Insurance shall provide fire and lightning extended coverage, vandalism and
malicious mischief on a form typically referred to as Special Causes of Loss, excluding earthquake and
flood. The Operator shall cause its insurance carrier providing physical damage insurance to the
Operator to provide a waiver of right of subrogation against the City.
L Additional Insured. The General Liability and Auto Liability policies shall name the City as
an additional insured on a primary and non - contributing basis and shall provide a copy of such
endorsements and include a governmental immunities endorsement that protects the immunities of the
City under Iowa Code Section 670 as it now exists and as it may be amended from time to time.
j. Cancellation or Material Change Notice. The insurance policies providing the coverages
specified in Subsections 10(b), (c), (d) and (e) above shall include the City's Cancellation Notice
Endorsement.
k. Proof of Insurance. The Operator shall provide to the City a Certificate(s) of Insurance
evidencing all required insurance coverage in accordance with current Iowa insurance law as provided in
Subsections 10(a) through 0) above utilizing the latest version of the ACORD form. The Certificate(s) of
insurance shall specify under "Description of Operations /Locations /Vehicle /Special Items" the title of
this Agreement. The Operator shall provide a copy of Additional Insured, Governmental Immunities and
Cancellation /Material Change endorsements. These endorsements shall be submitted along with the
certificate(s) of Insurance so as to evidence their inclusion in the coverages required.
12. Indemnification. To the fullest extent permitted by law, the Operator shalt defend pay
on behalf of, indemnify, protect, save and hold harmless the City from and against any and all liability,
claims, demands, suits, or losses, including any and all outlay and expenses connected therewith, dnd
for any damages which may be asserted, claimed or recovered against or from the City by reason of
personal injury, including bodily injury or death, and damages to property, including loss of use thereof,
which arises out of, results from, or is in any way connected or associated with Operator's
administration, performance or provision of the SSMID services, improvements and activities pursuant
to the provisions of this Agreement.
It is the intention of the parties that the City shall not be liable or in any way responsible for
injury, damage, liability, loss or expense incurred by the Operator due to accidents, mishaps,
misconduct, omissions, negligence or injuries either in person or property.
The Operator expressly assumes full responsibility for any and all damage or injuries which may
result to any person or property by reason of or in connection with the Operator's administration,
0
performance or provision of SSMID services, improvements and activities pursuant to the provisions of
this Agreement, and Operator agrees to pay the city for all damages or injuries caused to the City
resulting from the Operator's administration, performance or provision of SSMID services,
improvements and activities pursuant to the provisions of this Agreement.
The Operator's obligations herein to defend, indemnify, protect, save, and hold harmless-shall
include the obligation to pay all reasonable expenses incurred by the City in defending itself with regard
to any of the aforementioned liabilities, claims, demands, suits or losses, including all out -of- pocket
expenses such as attorney's fees and the value of any services rendered by the legal Department of the
City or any other officers or employees of the City.
For purposes of this Section, the term "Operator" means and includes the Operator, its officers,
agents, employees, subcontractors, and others affiliated with the Operator and the "City" means and
includes the City of Iowa City, its elected and appointed officials, and its agents, employees, and others
working on behalf of the City of Iowa City.
13. Non- Discrimination. The Operator agrees that it will not discriminate against any
employee or applicant for employment because of age, race, color, creed, religion, sex, national origin,
disability, gender identity, sexual orientation or marital status. Applicants will be evaluated and
considered, and employees will be treated without regard to their age, race, color, creed, religion, sex,
national origin, disability, gender identity, sexual orientation or marital status. The Operator agrees to
post in conspicuous places, available to employees and applicants for employment, notices setting forth
the provisions of this non - discrimination clause, The Operator further agrees that it will implement and
follow a policy that all qualified applicants will receive consideration for employment without regard to
age, race, color, creed, religion, sex, national origin, disability, gender identity; sexual orientation or
marital status.
14.' Default. The Operator acknowledges that its rights as Operator are subject to its
satisfactory compliance with the terms, conditions and obligations of this Agreement. Therefore, the
City may terminate this Agreement in the event the Operator has failed to comply with any of the terms,
conditions and obligations of the Agreement and such breach has not been remedied within thirty (30)
days written notice thereof from the City. if the Operator has not remedied such breach of this
Agreement within such time period, the City may by ten (10) days written notice to the Operator declare
a default and terminate this Agreement. Upon such termination, the Operator shall without further
notice transfer to the City all equipment used in conjunction with SSMID services, improvements and
activities in accordance with Section 9. Also, upon such termination, the City will itself administer or will
proceed to contract with another operator for the provision of SSMID services, improvements and
activities. Such termination of this Agreement shall not constitute a release of the Operator from liability
for payment of any outstanding expenses for which it is responsible under the terms of this Agreement.
No waiver of the breach of any of the terms or conditions of this Agreement shall constitute a waiver of
any other or succeeding breach of any other provision of this Agreement.
15. Meetings of SSMID Advisory Board. The meetings of the SSMID Advisory Board shall be
conducted in accordance with Chapter 21 (Open Meetings) of the Iowa Code.
4
16. Notices. All notices herein provided to be given shall be in writing and delivered
personally or by registered or certified United States mail. The address of each party, until further
notification in writing being:
City Manager
City Nall
410 East Washington Street
Iowa City, IA 52240 -1826
for City, and
Executive Director
Iowa City Downtown Self Supported Municipal improvement District
14 %: South Clinton Street
Iowa City IA 52240
for Operator.
If notice is given by registered or certified mail, then the notice shall be deemed to have been
given when the envelope containing the notice, properly addressed, is deposited in the United States
mail at Iowa City, Iowa, postage prepaid.
17. Disclaimer. It is mutually understood by the parties that nothing in this Agreement is
intended or shall be construed as in any way creating or establishing the relationship of copartners
between the parties or as constituting the Operator as an agent or representative of the City for any
purpose .whatsoever. It is further mutually understood by the parties that the employees of Operator
are not to be considered employees of the City.
18. No Third Party Beneficiaries. No third party beneficiaries are contemplated by the
parties to this Agreement and no third party shall claim or be entitled to any benefits from any of the
provisions hereof or the obligations imposed herein.
19. Provisions Binding. Each and every covenant and agreement herein contained shall
extend to and be binding upon the respective successors, heirs, administrators, executors and assigns of
the parties hereto.
. 20. Amendments. No oral or written statements, representations or promises with
reference to this Agreement shall be binding unless made in writing and signed and properly executed
by the respective parties hereto.
10
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written.
CITY OF IOWA CITY, IOWA
By
MAYOR
ATTEST: 7l
CITY CLERK
STATE OF IOWA
IOWA CITY SELF SUPPORTED MUNICIPAL
IMPROVEMENT DISTRICT
By
Title
) ss:
COUNTY OF JOHNSON)
On this 415'e'day of OcraAp-k- ,2012, before me, the undersigned, a Notary Public personally
appeared MATTHEW J. HAYEK and MARIAN K. KARR, to me personally known, who, being by me duly
sworn, did state that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that
the seal affixed to the foregoing instrument its the seal of the corporation, and that the instrument was
signed and sealed on behalf of the corporation, by authority of its City Council; and that MATTHEW J.
HAYEK and MARIAN K..KARR acknowledged the execution of the instrument to be the voluntary act and
deed of the municipal corporation, by it voluntarily executed.
SONDRAEFORT
° Commission Number 159791 S
My Commission Expires
+� 7 obi
Notary Public in and for the State of Iowa
STATE OF IOWA
) ss:
COUNTY OF JOHNSON)
On this 11 day of r 2012, before me, the undersigned, a Notary Public, personally
appeared to me personally known, who, being by me duly sworn, did state that he is the President
of tc 55rrm►r-> , that no seal has been procured by the corporation; that the instrument was signed on
behalf of the corporation by authority of its Board of Directors; and that acknowledged the execution of
the instrument to be the voluntary act and deed of the corporation, by it and by him voluntarily
executed.
KELLIE K. TUTTLE
Commission Number 22181
My Com/nl-s-slon ExDires•-
Notary Public in and for the State of Iowa
11
EXHIBIT A
Petition
To establish the Iowa City Downtown Self Supported Municipal Improvement District (SSMID)
pursuant to Chapter 386 of the Code of Iowa.
We, the undersigned, being owners of the property within the SSMID, hereby petition the City
Council of Iowa City, Iowa, pursuant to the provisions of Chapter 386 of the Code of Iowa (the
"Act ") as follows:
1. To establish by ordinance a Self Supported Municipal Improvement District in Iowa
City, Johnson County, Iowa:
a. The name of which shall be the "Iowa City Downtown Self Supported Municipal
Improvement District" (herein referred to as the "Proposed District"),
b. A description of boundaries and map of the Proposed District is attached hereto as
Exhibit A.
c. The purposes of which shall be the undertaking of actions authorized by the Act
and the performance of administration, redevelopment, and revitalization of the
Proposed District, as authorized by the Act, any and all of which actions and
improvements are intended to benefit the property, businesses, and residents
within the Proposed District, including, but not limited to activities that expand
the mix of businesses, increase consumer traffic, enhance beautification and
landscaping, and expand the Park & Shop/Bus & Shop program.
2. To establish an operation'fund for the Proposed District and levy an annual tax (the
"Operation Tax ") upon the property defined in the Act (excluding property assessed as
residential property for property tax purposes) at a maximum levy rate not to exceed two
dollars ($2) per one thousand dollars ($1,000) assessed value for a period of four (4)
years, commencing with the levy of taxes for collection in the fiscal year beginning July
I, 2012 for the purpose of : (a) paying the administrative and operational expenses of the
Proposed District, as defined and authorized in the Act, or (b) paying part or all of the
maintenance expenses of "improvements" or "self-liquidating improvements" as defined
in the Act with respect to the Proposed District.
3. It is the intent of this Petition that the operation taxes levied and collected on behalf of
the Proposed District shall be expended for new, additional or enhanced services within
the Proposed District, and that the City shall not diminish the type and extent of
governmental services currently provided_
4. This Petition is not requesting any amount of levy for either a Debt or Capital Fund.
5. To disburse annually all amounts collected in the Operation Fund, for one or more of the
following purposes, at such times and under such conditions as shall be recommended to
the City Council by a SSMID Advisory Board (described in section 7), as more
specifically described below.
a. Development and management of activities in support of marketing, business
retention and attraction, including, but not limited to:
Establish databases
12
Space referrals and assistance
Marketing activities, including media and advertising campaigns and
communication materials
Miscellaneous business support services
Establishment and promotion of special events, festivals, and activities
Further improvements and expansion of the Park & Shop/Bus & Shop program
b. Physical or other improvements designed to enhance the image and appearance of
the Proposed District, including, but not limited to:
Lighting Improvements
Seasonal and decorative enhancements
Signage and banners
Landscaping
c. To hire a Business Development Manager and Assistant Business Development
Manager who will work for the Board to manage the work of the Iowa City
Downtown Self Supported Municipal Improvement District Board and to fulfill
the intent of this Petition.
6. It is the intent of this Petition that the City of Iowa City enter into an operating agreement
with the Iowa City Downtown Self Supported Municipal Improvement District Board
(herein referred to as the "Proposed Board"). This Board will be formed as described
below. All SSMID levy monies shall be appropriated to the SSMID Board for the
management and operation of the Proposed District. From time to time, the City of Iowa
City may provide additional revenue to the Proposed Board for the purposes of the
management and operation of the Proposed District.
a. The Proposed Board shall establish itself as a 501 (c)(6) non - profit organization
with a Board of Directors consisting of fourteen (14) to nineteen (19) members
serving four year terms.
i. Board membership shall consist of voting members:
1. Two from property owners or their representatives from a single
property within the Proposed District that has an assessed value in
excess of 1.0% of the total assessed value of property within the
district boundaries as of January 1, 2011.
2. Two from property owners or their representatives from a single
property within the Proposed District that has an assessed value
less than of 1.0% of the total assessed value of property within the
district boundaries as of January 1, 2011.
3. Two from business owners within the Proposed District that lease
more than 3,000 square feet of commercial space.
4. Two from business owners within the Proposed District that lease
less than 3,000 square feet of commercial space.
5. One from a business in the Northside Marketplace area.
6. One from The University of Iowa.
ii. Board membership may consist of up to four (4) other stakeholders of the
Proposed District as voting members'of the Board.
iii. Board membership shall consist of ex- officio non - voting members from:
13
1. Iowa City- Coralville Area Convention and Visitors Bureau;
2. Iowa City Area Chamber of Commerce;
3. Iowa City Area Development Group; and
4. City of Iowa City.
iv. Board membership shall include the Downtown Business Development
Manager as an ex- officio non - voting Board member.
v. It is the intent of this Petition that no revenues produced through property
taxes imposed specifically for the Proposed District or tax increment
financing revenues attributable to the operation tax levy on properties in
the Proposed District shall be spent by the City Council without the
approval of the Board.
b. The initial Board shall be chosen by a group of five persons representing:
1. Iowa City- Coralville Area Convention and Visitors Bureau;
2. Iowa City Area Chamber of Commerce;
3. Iowa City Area Development Group; and
4. City of Iowa City; and
5. The University of Iowa.
7. The SSMID Advisory Board to the City Council shall be made up of specific members of
the Proposed Board and will be chosen by the Proposed Board as follows:
i. A property owner or their representative from a single property within the
Proposed District that has an assessed value in excess of 1.0% of the total
assessed value of property within the district boundaries as of January 1,
2011.
ii. 'A property owner or their representative from a single property within the
Proposed District that has an assessed value less than of 1.0% of the total
assessed value of property within the district boundaries as of January 1,
2011.
iii. -A business owner within the Proposed District that leases more than 3,000
square feet of commercial space.
iv. A business owner within the Proposed District that leases less than 3,000
square feet of commercial space.
v. One from a business in the Northside Marketplace area.
8. It is the further intent of this Petition that, notwithstanding the fact that the Proposed
District is located within the boundaries of a Tax Increment Finance District which has
been created by the City, an amount of funds which would be derived from the annual
SSMID levy of the Operation Tax against property within the Proposed District if the
Proposed District were not located within such Tax Increment Finance Districts shall be
made available annually for the services, improvements, and activities set out in this
Petition, and that the City should take all actions necessary to accomplish this purpose,
including, if necessary, allocation to these services, improvements and activities of a
portion of the incremental property taxes which are attributable to properties within the
Proposed District. These allocations may be from the SSMID levy or other sources.
14
EXHIBIT A
Proposed
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Proposed SSMID Area
All block numbers referenced in the description below are in the Original Town.
• Beginning at the centerline of Gilbert Street where it intersects with the extended centerline of the east -
west alley between Bloomington and Davenport Streets in Block 57;
• Thence west along said alley centerline to the centerline of Linn Street,
• Thence south along the Linn Street centerline to where it intersects with the extended centerline of the
east -west alley between Market and Bloomington Streets in Block 68;
• Thence west along the alley centerline to where it intersects the centerline of Dubuque Street;
• Thence south along the Dubuque Street centerline to the centerline of Jefferson Street;
• Thence east along the Jefferson Street centerline to the sidewalk on the east side of Gilbert Street;
• Thence south along the western boundary of said sidewalk to its intersection with the south boundary of
the east -west alley between Iowa Avenue and Jefferson Street in Block 45;
• Thence east along the southern boundary of the alley to the NW corner of Lot 6 Block 45;
• Thence south along western boundary of Lot 6 to where said western boundary extended intersects the
centerline of Iowa Avenue;
• Thence west along the Iowa Avenue centerline to the centerline of Clinton Street;
• Thence south along the Clinton Street centerline to the centerline of Washington Street;
• Thence west along the Washington Street centerline to the centerline of Capitol Street;
• Thence south along the Capitol Street centerline to the southern boundary line extended of Lot 4 Block 83;
• Thence east 182' to the east right -of -way line of Clinton Street;
• Thence south to the southwest comer of Lot 5 Block 82;
• Thence east along the southern boundary of BIock 82 to the centerline of Dubuque Street;
• Thence north along Dubuque Street centerline to a point 40' west and 120' north of the southwest corner
of Lot 5 Block 64;
• Thence east to the centerline of Linn Street;
• Thence south along Linn Street centerline to the southern boundary of block 63 extended;
• Thence east along the southern boundary of block 63 to the centerline of Gilbert Street;
• Thence north along the Gilbert Street centerline to a point 40' west of the NW corner of Lot 4 Block 44;
• Thence east along the south right -of -way line of Iowa Avenue to the NE corner of Lot 3 Block 44;
•. Thence north to the northern boundary of the east -west alley between Iowa Avenue and Jefferson Street in
Block 45;
• Thence west along the northern boundary of said alley to the eastern boundary of the sidewalk on the east
side of Gilbert Street;
• Thence north along the eastern boundary of said sidewalk and crossing Jefferson Street to the northern
boundary of the sidewalk on the north side of Jefferson Street;
• Thence west, crossing Gilbert Street, to the NW corner of Gilbert and Jefferson Streets;
• Thence west along the sidewalk to the SW comer of Lot 5 Block 59;
• Thence north to the centerline of the east -west alley between Jefferson and Market Streets;
• Thence east along the alley centerline to the SE corner of Lot 4 Block 46;
• Thence north to the northeast corner of Lot 4 Block 46;
• Thence north 105' to a point 25' north of the SE corner of Lot 5 Block 47;
• Thence west to the centerline of Gilbert Street;
• Thence north to the point of beginning, and excepting those properties zoned Neighborhood Public, which
are as follows:
The north 110' of the west 58.5' of Lot 4 Block 65
Lots 7, 8, and the east 20' Lot 6 Block 65
The west 58.5' of N 110' of Lot 4 Block 65
Lot 5 and the west 28.66' of Lot 6 Block 61
The east 38.3' Lot 6, all of Lot 7, and the west 39.7' of Lot 8 Block 58
16
EXHIBIT B
REVIEW OF CURRENT BASELINE SERVICES WITHIN THE SSMID
General Maintenance of Public Spaces and Property (cleanine & repairs):
City staff is responsible for year -round litter / debris removal in City Plaza. From mid -April to mid -
November the City also removes litter/ debris from outer sidewalk areas. The City is responsible for
general repairs to public spaces and street scape amenities throughout the year. In addition, the City
contracts for an annual pressure washing of the City Plaza and approximately 22 blocks of surrounding
sidewalks. Unless otherwise noted, the above mentioned services are limited to the geographic area
bounded by the north side of Burlington to the south, the south side of Iowa to the north, the east side
of Clinton to the west, and the west side of Linn to the east (excepting Washington Street, which is
served to the west side of Gilbert as the eastern boundary).
Trash Removal:
The City is responsible for removal of trash from the public receptacles located throughout the Central
Business District. The number and location of trash receptacles is subject to change annually based on
usage trends.
Street Sweeping:
The streets located throughout the Central Business District are swept once a week during overnight
hours. The alleys located throughout the Central Business District are swept twice weekly during
overnight hours. The City also sweeps the downtown area as needed after Summer of the Arts events
and University of Iowa home football games.
Snow Removal:
The City clears snowfalls of one inch accumulation orgreater in portions of the City Plaza and on all
surrounding public streets. The City does not clear snow on areas immediately in front of businesses
located on City Plaza, nor on surrounding sidewalks, unless such walks are directly adjacent to City
owned property. The City occasionally will haul snow from the Central Business District. This generally
occurs after a three inch or greater accumulation, but is subject to City discretion.
Banners
The City installs and maintains banner fixtures on city owned poles in the downtown.and will put up and
take down banners as requested in accordance with City policy.
Holiday Lighting and Decoration:
The City owns 24 lighted banner enhancers and 63 illuminated snowflake decorations that are installed
by the City on streetlights throughout the central business district. Actual installed decorations may vary
based on the working condition of such decorations.
17
Tree. Maintenance:
Trees in the City Plaza and public right -of -way are trimmed and treated as determined appropriate by
the City. Tree removal and planting in public spaces are completed as deemed appropriate by the City.
Parking:
The City manages all on and off - street public parking operations. Such management includes setting
policies, enforcing regulations and general maintenance of such facilities. The City routinely evaluates
and implements available technologies aimed at enhancing the customer experience and reducing the
cost of operations.
Police Patrol:
The SSMID area is covered by two separately defined officer- assigned patrol beats. However, those two
beats extend well beyond the SSMID boundaries. Currently, the staffing of the two beats combined
breaks down as follows:
• 8 officers assigned for day patrol
0 7 officers assigned for evening patrol
• 9 officers assigned for late night patrol
The numbers of actual officers patrolling the two beats that in part cover the SSMID district varies based
on time of day, day of week, officer availability and overall community policing needs. More officers
may be assigned to the area for special events, festivals or when large crowds are anticipated. The
specific focus of the police officers is in maintaining the peace, deterrence and prevention of crime,
traffic enforcement and control, and providing public service. In addition to responding to calls for
service, the officers assigned to those areas conduct patrol activities by car, bike and on
foot. Additionally, the department employs a Crime Prevention Officer who administers the
Neighborhood Watch and the Crime Free Business Program, and is available to give public safety or
other law enforcement related presentations to the public.
UFA
IOWA CITY DOWNTOWN DISTRICT
Draft 2012 Organizational Guidance
WHO WE ARE
The Iowa City Downtown District is a 501(c)6 non - profit organization established through a
district - initiated tax assessed to properties in Downtown Iowa City and the Northside
Marketplace and financial support from The University of Iowa and area sponsors. The
organization provides a leadership directive that advocates for the District mission and
serves as a mechanism to more efficiently implement District-wide marketing, programs,
events, and projects to the benefit of all the businesses within it
DRAFT MISSION
Our mission is to champion Downtown Iowa City as the progressive, healthy and vibrant
urban center of the region.
l,Ci] 11 Dl:'Lll Y,1L`YJi,1_lK1]ulu_lll�l Y 11'1
ICDD'S many partners - external and internal - recognize that the organization needs to be
both visionary and grounded; patient and persistent The ICDD plays four roles:
Champion - Vision & Leadership
Partner - in Strategic Alliances
Convener - of Diverse Interests
Steward - Persistence & Continuity
With this mission, the ICDD acknowledges that the influence of the Downtown will likely
grow beyond its traditional core and support a mosaic of future neighborhoods with a
broad spectrum of interests. ICDD must use its nuanced leadership approach to also ally
with regional partners as circumstances, interests, and resources align. This may also vastly
expand ICDD's future base of membership and importance in the region as an edgy urban
center that mirrors the high quality of life in Iowa City, as well as provide a draw for
businesses, students, and residents to the wider Corridor.
GOAL DEVELOPMENT IN PROGRESS - FOCUS:
• Enhance Downtown Iowa City's image
• Ensure Downtown is Inviting, Clean, and Safe
• Increase Downtown's economic competitiveness (tools)
• Expand the Downtown's base of informed and engaged members in a living
laboratory
• Expand our Cultural "footprint"
• F.nhanre Arressihility
EXAMPLES OF EARLY SUCCESS
• New marketing campaign -You Are Here
• Special Events -Bench Marks & Tree Huggers
• Holiday lighting- (preview)
EXAMPLES OF FUTURE PLANNING
• Consolidation of Services - Buy in from Board to pursue improved solid waste
collection, cleaning, and snow removal downtown
• Small Business Saturday and other business advertising and marketing
• Advance a larger agenda for the Downtown - City Partnership / RFP Process
• Strategic Alliances -
• CVB
• Chamber
• Iowa Economic Development Authority
• National Smart Growth
• EPA or others
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Iowa City Downtown District
$49,600
9%
2013 Operating Budget Summary
$127,213
24%
ICDD Income Summary
$ Total
Percent Total
4 Business Programs
$51,617
10%
1 SSMID
$280,000
52%
2 University of Iowa Contribution
$100,000
19%
3 Sponsorships, Programs, and Events
$157,238
29%
$537,238
100%
Total $537,238
100%
ICDD Budget Summary
1 Membership Engagement & External Partnering
$49,600
9%
2 Events
$127,213
24%
3 Marketing
$133,850
25%
4 Business Programs
$51,617
10%
5 Clean & Safe
$91,520
17%
6 Office Space & Administrative Expenses
$83,438
16%
Total
$537,238
100%
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Prepared by: Eleanor Dilkes, City Attorney, 410 Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 12 -461
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST A JOINT DEFENSE AND
INDEMNIFICATION AGREEMENT BY AND BETWEEN THE CITY OF IOWA
CITY AND VJ ENGINEERING IN THE MATTER OF JUDDS BROTHERS V. CITY
OF IOWA CITY
WHEREAS, the City Council believes it is in the best interests of the City of Iowa City to
enter into an indemnification agreement with Van Winkle -Jacob Engineering, Inc. a /k/a
V.J. Engineering, related to Judds Brothers Construction, Co v. City of Iowa City and VJ
Engineering, arising from the Iowa River Inverted Siphon Sewer Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
The Joint Defense and Indemnification Agreement attached hereto is in the public
interest and is approved.
2. The Mayor and the City Clerk are hereby authorized and directed to execute the
attached Joint Defense and Indemnification Agreement.
Passed and approved this 23rd day of October , 2012.
4
MAYOR
Approved by
ATTEST: )eW4_11
CITY aERK City Attorney's Office ,v1,17���
gcZ_-
Resolution No. 12 -461
Page 2
It was moved by Dobyns and seconded by Dickens
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
x
x
—x_
x
NAYS:
ABSENT:
the
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
Joint Defense and Indemnification Agreement
The Parties to this Indemnification and Joint Defense Agreement ( "Agreement ") are
Van Winkle Jacob Engineering, Inc. and the City of Iowa City, Iowa and their officers,
employees, agents, and counsel. Van Winkle Jacob Engineering, Inc. and the City of Iowa
City, Iowa have been named as defendants in a civil action entitled Judds Brothers
Corporation Co v City of Iowa City, Iowa and Van Winkle-Jacob Engineering, Inc., United
States District Court for the Southern District of Iowa, civil action no. 11 -cv -69
( "Litigation ").
1. Van Winkle Jacob Engineering, Inc. and the City of Iowa City, Iowa deny the
legitimacy of the claims made by Judds Brothers Corporation Co. Neither party admits fault
or liability by entering into this Agreement, and this Agreement shall not be construed as an
admission of fault by either Party
2. The Litigation presents legal and factual issues common to the Parties. The
Parties desire to exchange certain factual material, mental impressions, strategies, legal
theories, documents, memoranda, and other privileged information (collectively
"Information ") to defend the Parties in the Litigation.
3. The Parties believe that the law permits them to exchange Information under
this Agreement in a common effort to defend the Parties in the Litigation without waiving
any privilege on the Information, and they intend to invoke to the fullest extent possible the
protections against discoverability or disclosure provided by the joint defense doctrine or
common interest doctrine (and other similar doctrines regardless of nomenclature), the
attorney -client privilege itself, the attorney work - product doctrine, and all other applicable
privileges and doctrines. Providing Information under this Agreement does not waive any
work - product protection, attorney -client privilege or any other applicable privilege or
protection against discovery.
4. With respect to Information received under this Agreement, the Parties:
a. shall use the Information only for the limited purpose of the Litigation; and
b. shall not disclose the Information to any person not bound by this Agreement
or otherwise treat the Information in a manner that waives any privilege unless
(i) the party who provided the Information consents in writing, or (ii) the
Information is subject to a court order compelling the production.
5. This Agreement does not obligate any Party to share Information and it does
not limit the use of information obtained in a manner that was not pursuant to this
Agreement.
Page 1 of 3
6. A Party receiving a demand, by subpoena or otherwise, for Information
received under this Agreement shall immediately notify all signatories to the Agreement and
assert all applicable rights and privileges against disclosure of the Information.
7. The prohibitions against disclosure and use of Information under this
Agreement shall continue in effect notwithstanding any conclusion of the Litigation or a
withdrawal by a Party from this Agreement. A Party wishing to withdraw from this
Agreement may do so by giving written notice.
8. Information provided under this Agreement shall not serve as a basis for
disqualification of any attorney from representation of any client in future matters unless
required by Rules of Professional Conduct.
9. The Parties acknowledge that disclosure of Information in violation of this
Agreement will cause irreparable harm for which there is no adequate legal remedy and that
immediate injunctive relief is an appropriate and necessary remedy for violation of the
Agreement in addition to and not in lieu of any other legal or equitable remedies that may
exist.
10. Van Winkle Jacob Engineering, Inc. shall indemnify and hold harmless the
City of Iowa City, Iowa from and against damages awards and judgments but only to the
extent such damage awards and judgments are caused by the negligent acts or omissions of
Van Winkle Jacob Engineering, Inc on the Iowa Avenue Inverted Siphon Sewer 2009
Project, including without limitation any damages awards or judgments entered on the
following claims for relief set forth in Judd Brothers Construction Co.'s Complaint filed June
1, 2011:
a. Second Claim for Relief, Negligent and Defective design;
b. Fifth Claim for Relief (sic), Negligent Design of Public Improvement;
C. Sixth Claim for Relief (sic), Gross Negligence; and
d. substantially identical claims for relief (as the three claims for relief listed in
the three preceding subparagraphs) in any amended complaint.
11. Van Winkle Jacob Engineering, Inc. shall assume responsibility for the letter
agreement between Simmons Perrine Moyer Bergman PLC and Haley and Aldrich, Inc.
dated February 21, 2012 and signed on June 8, 2012. Van Winkle Jacob Engineering, Inc.
shall reimburse the City of Iowa City, Iowa for past payments made to Haley and Aldrich,
Inc., which total $4,543.76.
Page 2 of 3
City of Iowa City, Iowa
By:
Mayor of City of owa City
Attest: -;Wak'e �
City Clerk
Counsel for City of Iowa City, Iowa
Simmons Perrine Moyer Bergman PLC
By:
Van Winkle Jacob Engineerin , Inc.
By:
Counsel for Van Winkle- acob Engineering, Inc.
Finley Alm.
Page 3 of 3
Prepared by: Eleanor Dilkes, City Attorney, 410 Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 12 -462
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST AN AGREEMENT BY AND
BETWEEN THE CITY OF IOWA CITY AND SIMMONS PERRINE MOYER &
BERGMAN TO PROVIDE LEGAL SERVICES IN THE MATTER OF JUDDS
BROTHERS V. CITY OF IOWA CITY
WHEREAS, the City Council believes it is in the best interests of the City of Iowa City to
retain the services of special counsel to represent the interests of the City in the matter of
Judds Brothers Construction Co. vs. City of Iowa City, Iowa and Van Winkle -Jacob
Engineering, Inc. a /k/a V.J. Engineering, arising from the Iowa River Inverted Siphon
Sewer Project;
WHEREAS, due to the specialized nature of the litigation, Staff recommends that the City
enter into a contract for legal services with Simmons Perrine Moyer & Bergman, P.L.C.,
which firm has expertise in construction contracts and litigation; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
The Agreement for Special City Counsel attached hereto is in the public interest,
and is approved.
2. The Mayor and the City Clerk are hereby authorized and directed to execute the
attached Agreement for Special City Counsel.
3. Funds for this contract are available in the Public Works Account # 3134.
Passed and approved this 23rd day of October _,2012.
440" a
MAYOR
Approved by
ATTEST:
CITY-CLERK City Attorney's Office
Resolution No. 12 -462
Page 2
It was moved by Payne and seconded by Dobyns the
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
x
x
-x
x
NAYS:
ABSENT:
Champion
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
AGREEMENT FOR SPECIAL CITY COUNSEL
THIS AGREEMENT, made and entered into between the CITY COUNCIL FOR
THE CITY OF IOWA CITY (Council) and SIMMONS PERRINE MOYER BERGMAN
PLC., City Center Square 1100 5 1 Street, Coralville, Iowa 52241 (Attorney).
The City Attorney has stated to the Council the reasons why her department
desires to retain special counsel to provide legal services on a construction dispute and
claim brought by Judds Brothers Construction Co. related to the Iowa Avenue Inverted
Siphon Sewer Project and the claims alleged in Civil Action No. 4:11 -cv- 00260.
Attorney agrees to:
1) Investigate, prosecute, defend and attend to all legal matters in a careful,
diligent and skillful manner on all legal proceedings related to Judds
Brothers claim.
2) Abide by the directions of the City Attorney on all matters related to the
claim and keep the City Attorney advised of all matters related to the claim.
3) Charge the following rates per hour:
a. Roger W. Stone .................. ............................... $250.00
b. Other Partner ........................ ............................... 220.00
c. Associate .............................. ............................... 180.00
d. Paralegal ....... ............................... ..........................95.00
4) Submit bills on the first of each month detailing the following:
a. descriptions of all services performed on the case;
b. itemization of work charged including the number of hours charged and
by whom;
c. itemize expenses, i.e., travel, lodging, meals, etc.
Expense limits are as follows:
1. mileage: no charge for travel between Iowa City and Cedar
Rapids; other travel is .30 /mile;
2. air travel:
3. lodging
4. meals:
lowest air fare available;
In- State:
Out -of- State:
In- State:
Out -of -State
$100.00 /day plus tax.
reasonable;
$16.50 /day total
$32.00 /day total
5. receipts required for lodging and cab fare totaling over $15.00 /day,
parking and all miscellaneous expenses such as filing fees, expert
witness costs, etc.
5) Abide by time schedules imposed by the City Attorney for the handling of
the case.
6) Make available to the City Attorney all research, briefs, pleadings, and
similar work product developed by Attorney in connection with work on
the case covered by this Agreement.
7) Receive approval of City Attorney and Council on all settlements.
8) Receive prior approval of City Attorney before incurring any extraordinary
expenses, i.e., expert witness fees, large travel or trial exhibit expenses, etc.
9) Make case status reports to City Attorney as required.
10) Have available necessary support staff, computers and other equipment to
adequately carry out the terms of this Agreement.
This Agreement is terminable at will by either party as to any case being handled
by Attorney upon giving 30 (thirty) days notice, unless a trial has been scheduled, in
which case Attorney must give 90 (ninety) days notice as to that case. When the
2
handling of a case is terminated, Attorney agrees to turn over all files, exhibits and other
materials developed in Attorney's possession or control. If the Agreement has not been
terminated prior to July 1, 2013, it automatically terminates at that time. At that time, the
City Attorney may come before the Council to obtain approval to enter into new
agreements.
This is the entire contract between the parties and no other oral representations are
binding on either party.
eD
Dated this d3 day of a 52012.
ocEa. 5�ry 6 /J—AS
Matthew J. Hayek, Nayor Roger W. Stone, Attorney for the Firm
City of Iowa City Simmons Perrine Moyer Bergman PLC
7 - !
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APPROVED BY:
P�'-? • - L
Eleanor M. Dilkes, City Attorne
City of Iowa City
3