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HomeMy WebLinkAbout2012-12-18 TranscriptionDecember 18, 2012 Iowa City City Council Work Session Council Present: Champion, Dickens, Dobyns, Hayek, Mims, Payne, Throgmorton Staff Present: Markus, Dulek, Ford, Fruin, Karr, Moran, Bentley, Davidson, Craig, Yapp, Reichart, Long, Drier, Rocca, O'Brien, Fosse Others Present: Bramel (UISG) Agenda: Page 1 Hayek/ Okay, want to welcome everyone to the, uh, work session for December 18th. Uh, Council Member Dobyns is going to be here within just a few minutes, uh, but he instructed us to go ahead and get started without him. What I thought we'd do, uh, since the bulk of this evening will be on the College /Gilbert, um (mumbled) bullet point. With ...with your permission I'd like to tackle all the other agend ... uh, bullet points first and then, uh, get those out of the way and then ... and then go back to the other ones. So... Champion/ That's fine! Mims/ Makes sense. Hayek/ With that, why don't we take up questions from Council regarding agenda items. Item 2d(11) CONSIDER A RESOLUTION APPROVING, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST AMENDMENT #1 TO THE JUNE 30, 2009 AGREEMENT BY AND BETWEEN THE CITY OF IOWA CITY AND MMS CONSULTANTS, INC. TO PROVIDE ENGINEERING CONSULTANT SERVICES FOR THE WEST SIDE LEVEE PROJECT. Throgmorton/ Item 2d(11), the west side levee contract. Whatever came of the meeting with affected residents? Reichart/ Um, we did have the, uh, public meeting about a month ago. I ... I don't have the exact date but, um, we did have the public meeting at the Airport. Uh, all the trailer parks, everything, were notified. Kind of the same area in general that we used for the McCollister Boulevard project, so ... was included in that mailing list. Throgmorton/ Was that useful feedback, because I guess ... I don't think we've heard anything about it (both talking) the fact it was going to be held. Reichart/ ...I think their main concern was that they kind of knew the project was going on, but there weren't really any updates, so ... it was just an informative meeting to kind of let them know what was going on and bring `em up to date on the project, so... This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 2 Markus/ Jason, let `em know who you are. Reichart/ Oh! I'm Jason Reichart, Special Projects Engineer. Hayek/ Thanks (several talking) Other... agenda questions? ITEM 4d CONDITIONALLY REZONING .22 ACRES OF LAND LOCATED AT 221 AND 225 NORTH LINN STREET AND THE ADJACENT .07 ACRE LOT ASSOCIATED WITH THE MIDAMERICAN SUBSTATION FROM NEIGHBORHOOD STABILIZATION RESIDENTIAL (RNS -12) TO CENTRAL BUSINESS SERVICE (CB -2). (REZ12- 00028) ITEM 13. CONSIDER A MOTION SELECTING THE TOP TWO OR THREE DEVELOPMENT PROPOSALS FOR THE NORTH EAST CORNER OF COLLEGE STREET AND GILBERT STREET, DIRECTING STAFF TO BEGIN NEGOTIATING A DEVELOPMENT AGREEMENT. Payne/ The only comments that I have is that ... um, I'm going to need to recuse myself from 4d which is ... urn ... north Linn Street rezoning. And then uh ... I think it's Item ... last item, the Gilbert (both talking) Hayek/ ... okay. ITEM 9. CONSIDER AN ORDINANCE AMENDING TITLE 5, ENTITLED "BUSINESS AND LICENSE REGULATIONS," CHAPTER 1, ENTITLED "GENERAL LICENSING PROVISIONS" AND CHAPTER 2, ENTITLED "TAXICABS" TO REQUIRE A DISTINCTIVE COLOR SCHEME FOR ALL VEHICLES DRIVEN BY A COMPANY; REQUIRE LOCATION OF A DISPATCH OFFICE TO BE IN IOWA CITY OR CORALVILLE CITY LIMITS AND ALLOW FLEXIBILITY FOR DISPATCHING FROM THE OFFICE; RESTRICT NEW COMPANIES TO STARTING JUNE 1 OF EACH YEAR; CLARIFY LANGUAGE REGARDING VEHICLE LETTERING, AND REQUIRE DRIVER IDENTIFICATION TO BE POSTED IN THE VEHICLE FACING THE PASSENGERS. (PASS AND ADOPT) Throgmorton/ I have a couple more. I don't know if anybody else ... (several responding) All right. On Item 9, the taxi ordinance. Marian and two independent owner - operators and I had a pretty, uh, useful meeting. I don't know ... about a week ago I guess, Marian, and from that, uh, came the idea of deferring our vote, uh, tonight's vote, with regard to the taxi ordinance to our January 8th meeting, uh, to give Marian an opportunity to run an idea past the, uh, the taxi company owners. Uh, so I would request that we defer action on that ordinance until January 8th Hayek/ What's the, uh, idea? This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 3 Throgmorton/ Has to do with the color scheme. There's... there's certain, uh, people who own their own vehicles, but work for, uh, companies (both talking) Champion/ ...contract with them. They don't really work for them, right? Throgmorton/ Uh, they ... well, I keep hearing they work for them. Champion/ Okay. Throgmorton/ ...and they ... so they have ... their cabs are labeled as being part of Redline or... what ... what's the other company? Karr/ I'm... Throgmorton/ ...was another company you had there... Karr/ Big Ten Aardvark. Throgmorton/ Yeah, thank you! So the cabs are labeled and the phone numbers of the companies are listed on the cabs, but their ... the vehicle goes ... the vehicles themselves are owned by these, uh... Karr/ Owner- operators. Throgmorton/ Owner- operators. So there's um ... I think there's an opportunity for some transitional language with regard to those individuals. Uh, there may be 15 or so, I gather, ou ... out of the total number of taxi drivers in ... in town. But anyhow, the idea was to run, um, the possibility of providing a ... a transitional period for those, uh, owner- operators, uh, with a defined period of time in mind, and uh, Marian was going to run the idea past, uh, the company owners, is ... at least that's the way I understand it. Karr / Right. We have no idea how many owner- operators there are because the City does not license owner- operators. (both talking) We license companies and drivers. Throgmorton/ Right. Karr/ So whether the companies... this initiative, this request for color scheme, along with the other proposals before you, came from the companies themselves. So the owner- operators were wondering about a transition period and whether the companies are interested I can't tell you because I've not... Dobyns/ Jim, would it be ... cause Michelle and I had a similar conversation. Would it be reasonable just to ... jettison that one item? Rather than just delay this, and just ... I don't know if we can operationally do that, um, without... putting in another work session. I mean, it's on the agenda. Um ... how bout just making a motion to delete that one clause? Would that be sufficient? This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 4 Throgmorton/ Well... Mims/ Well, but I wonder ... I mean, I wonder if there's a bigger issue here that ... that we need to look at and address, and that is this whole owner- operator, and whether we come back and say they're illegal or do we find some way to accommodate them within the code. Because obviously right now, technically they're illegal. Is that correct? Karr/ Technically there is no such beast as an owner- operator. Mims/ So if they're out there operating as an owner- operator, they're... Karr/ They ... they are not operating as an owner- operator. They are... operating as a company. This is what ... the decal on their car is to a business. It is not to an owner- operator. Mims/ Okay. Dulek/ We don't regulate whether the relationship between the driver and the company is an employer - employee, or an independent contractor. Mims/ Okay. Dulek/ We... Hayek/ We treat them as part of a company that we regulate. (several talking) Dulek/ Yes! Champion/ Right. Um, well, I'm sure we ... they've met with most of us, and they do make some legitimate arguments, um, they have their own customers, generally. At least the two that I met with. Um ... and I do think we've put them at a possibility they won't be able to operate anymore because not only do they have to pay the cab company they are affiliated with, but to paint their cars, which I guess are kept in really great shape to begin with, uh, it's very expensive. So I would like to see them accommodated. I'm not sure how we can do it, or even if we can do it, but I would like to see some accommodation for them. Did you meet with them ... did everybody meet with them? What ... what'd you think, Michelle? Payne/ I ... I thought the same thing. I would like to find some way to ... maybe accommodate isn't the word that I would use, but to see if we can fit them into the regulations so that they can still operate, um, but follow the regulations that we put forth and I ... I think that we may not ... we may do something to jeopardize their business if...with doing ... the way that it's written (both talking) Champion/ The other interesting thing that they brought up, and as you all know I'm not a technology expert! Uh, I'm not ... I'm just kind of a novice! (laughter and several This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 5 talking) But I am the oldest one here, and ... uh, there, they use, I mean, there's an icon on your phones and they ... you can push the icon for cab and it tells you where the nearest cab is and I don't know if we're taking that into account when we talk about, um, have to go through a dispatcher. Um, I mean, that's kind ... kind of a new technology that I don't know... Karr/ None of the companies have requested that. The companies that we license... Champion/ Have not requested it. Karr/ Have not requested that. There is no provision in there on how, what dispatching is. Each company dispatches the way they (both talking) so if a company wishes to dispatch that way, they certainly (both talking) Champion/ ...they can. Karr/ There's no prohibitive to that. Champion/ Okay, okay. All right. Karr/ I think the concern we have primarily is one that we want to be sure that an independent individual who has clients is properly insured. Champion/ Right! Karr / And that's why we license the companies and secure the insurance, and that's of somewhat ...and that's why they have the affiliation and the decal. So that relationship and that dispatching assumes they go through the company of which they're licensed to do business, and pick up their fares that way. If you want us to look at that, that is a different aspect than what we typically have been doing. Hayek/ It seems to me that ... that what ... what's up for pass and adopt, and what we've been talking about, is a set of, um ... uh, minor mod ... what I would describe as fairly minor modifications to an existing ordinance, um, relating to color schemes and ... and notification to the rider and these nuts and bolts issues, um ... and as I understand it, the ...this group apparently only has at this point an issue with one of those details, the color scheme. The other issues appear to (both talking) Throgmorton/ ...the most onerous issue and it's the one we talked most about during (both talking) Hayek/ Okay. So ... that's one chunk of decision making for us. I think a separate decision making category has to do with what you guys are talking about in terms of how ...whether and how we recognize these independent operators who hire through a licensed company. Um, and it seems to me that we could adopt all of this ordinance This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 6 or .... or carve out a portion and adopt the rest of it, but if we want to take a look at the other issue, do that as a... as a stand - alone. Champion/ And how would you suggest we do that? Hayek/ Well it would se ... I just...I think the two aren't related. I mean, other than they deal with the same industry. Champion/ Oh! Hayek/ And what I would suggest is that we ... I'd kind of like to ... like us to vote this up or down, or carve out the ... the color thing. Dobyns/ Why carve out the color and then vote it up or down? And then come forth and reinsert language? Karr/ Could we... could we potentially, if that's the wishes of Council, could you potentially then, if you wish to do that, carve out the color scheme and defer it til January 8th There's some timing elements in here that I'd like to give the businesses, and the owner- operators, as much notice as possible on the Council's intention to change come this next licensing year. So I don't want to... Mims/ ...the color but not defer the rest of it; pass the rest of it tonight? Or vote on it (both talking) Karr/ We certainly could do that, is take out the color, defer it til January 8th so it puts us all on a timeframe to put it back on your (several talking) Um, and then we could proceed... Hayek/ The reason is cause these ... these license and ... and, you know, when during the year they're effective, etc. and... Karr / And then you get everything else off the table if...my understanding is, as Jim has indicated, that was the biggest concern of the owner- operators was color. Champion/ It is, yes. Karr/ Nothing else, so then we concentrate on that one remaining issue for your January 8th meeting, but we defer it specifically so we address it in a timely fashion. Champion/ Okay. Karr/ Come back to you, and I believe we can give it then ... we'll pick up where we left off with third reading at that time. Hayek/ And then it would seem to be another decision we need to make, do we want to work session the ... the broader license issue? This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 7 Karr/ Well ... and that's just it. I haven't had (both talking) an opportunity to check on that. I am off the top ... I'm not aware of any ... city that handles owner... owner... Throgmorton/ With regard to owner- operators, I ... by no means any expert on this, but I understand that there are ... because of technological change, there are questions about the structure and operation of the taxicab business in general, and ... and we don't ... we can't possibly take that on in a work session. It's just too much for ... for us to focus on, but ... but I think it's something that probably needs some attention downstream. Um, so ... so I...I'd say for right now, let's just defer... take... vote on everything except for the color scheme, defer it to January 8th, but then we might want to revisit this whole issue at some point, uh, in the fairly near future. I don't mean the whole issue. I mean... Champion/ Right! Throgmorton/ ...technological changes that affect the industry and should alter the way in which we ... we regulate. Dobyns/ Just to be clear, I think it's the paragraph six on page two of the item. I think the, except for pedi cabs, restaurant vehicles and airport shuttles, the paragraph beginning with that. I think that's the (both talking) Throgmorton/ (mumbled) Karr/ Well we'd ... we'd redo the title and everything though, so I mean we just take out any reference to the color scheme throughout the ordinance, to enable us to go ahead with it, if that ... if that's your wishes. Champion/ Okay. Payne/ So we would make a motion... Karr/ To delete the color scheme reference at this time, and defer it to January 8th, and proceed with the others as outlined. Payne/ So would we need to do it twice? Once with the... Karr/ No. Payne/ ...the way it's written and once ... okay. Just ... make the motion. Karr/ ...less restrictive, not more. You're taking it out. Payne/ Okay. Make the motion to, okay, got it. Hayek/ I'll read the item... This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 8 Payne/ Yep. Hayek/ ... you know, that takes it out. Payne/ Okay. Hayek/ Thanks. ITEM 11. CONSIDER A RESOLUTION ADOPTING AN URBAN CHICKEN POLICY. Throgmorton/ One other quick point with regard to urban chickens. (laughter) You remember last time we, uh, I indicated, uh, an intention to move to, um, eliminate the veto section, uh, which is titled what? It's got a title. Uh, the neighborhood consent section from the, uh, urban chicken's policy. Uh, and that we would then vote that up or down that that motion to amend. And that would... it would eliminate, uh, the neighborhood consent provision after two years. Be an automatic sunset, disappearance of that provision. I... I don't know how everybody will vote on that, but I do intend to do that and I just wanted to remind everybody of that. ITEM 2d(6) CONSIDER A RESOLUTION ESTABLISHING NEW GENERAL GUIDELINES TO ASSESS FIRE DEPARTMENT FEES AND RESCINDING RESOLUTION NO. 10 -35. Mims/ On 2d(6), this is the Fire Department fees. Um ... very supportive of it. I just had a question if any attempt has been made to quantify these in a manner that I'm assuming this is like nursing homes and that sort of places where you're getting the calls, so they kind of upfront have some idea, I mean, I know you've got in here like hourly rates and this and that, but ... have you made any attempt to contact them or give them, you know, if we get called to help put somebody back in their bed, if that. —or in a chair, you know, you kind of... your minimum cost is going to be such and such, I mean... Rocca/ Yeah, we've quantified that. I mean, look at our fee schedule. If you have an hourly rate and say the unit that you send out there is worth $85 an hour, personnel costs are roughly $75 an hour. It takes us a half hour to do that. Be about $80 for that, and so we've looked at the history we've created in the least five years to include the 22, you know, calls that we got on record, year -to -date. Um, the provision that needs to take place yet and likely will very soon after the first of the year is putting all these, uh, facilities, entities on notice of our intent to charge them. Mims/ Okay. And so they'll have a better idea. I ... I just thought if I went through this it wasn't ... if I were one of those people, I wouldn't have a clear idea of what it might cost me if I (both talking) Rocca/ When we communicate with those entities, we can include an example... This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 9 Mims/ Okay. Rocca/ ...it would be reflective of the charge to date. Mims/ Okay. Very supportive of what you're doing, but I think that might be helpful for them. Rocca/ Okay. Thank you. Mims/ At least from my perspective. Rocca/ Any other questions on that? Hayek/ Thanks, Chief! Rocca/ Thank you. Hayek/ Anything else on the agenda? Mims/ (mumbled) fast the i -Pad wants to ... act! (laughter) (mumbled) No, I don't think so. Hayek/ Okay! Throgmorton/ It's dawdling! (laughter) Information Packets: 12/06/2012: Hayek/ Okay. Info Packets, we have two. First is December 6th. (several talking) Thanks for the Martha Stewart ... Tom. Throgmorton/ I ... I guess I do have a question about the December 6th packet, unless somebody else wanted to bring up something else. Hayek/ (mumbled) Jim. Throgmorton/ It concerns IP, uh, Information Packet #2, uh, the memo from Doug Boothroy, uh, about Dolphin Pointe and residents. Champion/ Right. Throgmorton/ Uh... so I don't have problem with terminating a contract with bad managers, or bad management out there, but I'm ... pretty concerned about the residents. So ... I ... I'd like to get some clarity about what we are doing to assist residents in finding suitable substitute housing. I don't know if Doug's here or anybody else who could speak to that? This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 10 Markus/ I think Sue Dulek can respond to that. Dulek/ I ... I can speak to that. One thing they've given a voucher which is generally I think 120 days. It's for 180 days. So that gives them six months to find something else. They've been in contact with all the appropriate people, such as the Shelter House, such as the VA, such as Iowa Legal Aid, etc., etc., etc. They sent out an initial letter, I think that was in your packet, telling the tenant what's going on. They're going to follow that up, uh, after the first of the year with another one, with those that haven't found, uh ... um, housing, that will happen even again. So I think there's a very concerted effort out there to ... to make sure folks understand, to know what assistance is available, and, uh, so... uh, if anybody can think of anything else, certainly will do that, but I know that Steve has been in touch — Steve Rackis — has been in touch will all the local agencies. Everybody knows what's going on, um, and we're just trying to stay in touch with the tenants on a regular basis, as well. And I think as ... well, ten of `em have moved already, so that gets us down to approximately 30 left. But... Mims/ I thought it looked pretty complete in terms of (mumbled) been done and information provided to them. So ... very appreciative of that. Throgmorton/ Thanks, Sue. Hayek/ Anything else on the December 6th packet? Okay, December 13th Info Packet, anything? 12/13/2013: Hayek/ We uh ... should we do the KXIC since it's on there? Champion/ Oh, yeah! Throgmorton/ I guess I'm substituting for Michelle tomorrow, right? Payne/ Yes! Hopefully! (laughter) Hayek/ If, uh, no one wants it, I guess I could do the day after Christmas. Champion/ What? Throgmorton/ Lucky you! Hayek/ No, I don't want to but I mean ... says no one available. Karr/ There's no one available, meaning they don't (both talking) it's ... we don't need to! Hayek/ I thought you were just sort o£.. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 11 Karr/ No! Hayek/ ...tugging on our heartstrings here. No one available! (laughter) Karr/ No! Dickens/ January 9th Karr/ January 9th, Dickens. Dickens/ Yeah. Payne/ Um ... I'll take January 23rd Hayek/ I can do the 16tH Champion/ I can do any day ... any Tuesday and Wednesday in January. So what's ever left over. Since I didn't do December. Mims/ What about February 6th? That's the one left it looks like. Champion/ Yeah! That's okay, I can do that. Mims/ Is that all of them then? Karr/ I have the 19th Throgmorton; then 91h Dickens, 16th Hayek, 23`d Payne; 20...the 6th of February Champion. Champion/ Yeah. Karr/ Okay. (several talking) Thank you. Payne/ Wait a minute! Wait a minute! (several talking) Karr/ You're locked in! (several talking) Payne/ I said January 23`d, right? (several responding) (mumbled) Hayek/ Anything else on the, uh, Info Packet? Okay. Uh, Council time. Council Time: Payne/ Uh, let's see. Is this the place where I would talk about, uh, I have a conflict for a meeting if we were going to have one on April 2nd. I mean you haven't gone that far but I think that would be the next. I will be out of town that week. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 12 Karr / Why don't, um, I certainly can put that on the next ... the next work session. We can talk about it in January. Payne/ Okay. Karr/ With that noted. If you have any other conflicts we can work that in. I'll send a note out. Payne/ Can we send you `em all? (laughs) Karr/ Uh, all? Sure! (laughter) Pending Work Session Topics: Hayek/ Okay. Let's move on to pending work session topics. IP3. This'll be on January Stn, we're taking up the, uh ... corridor compact, anti - piracy stuff. (mumbled) the list of pending topics to be scheduled. Payne/ So are we going to put on January Stn the color scheme thing for the taxi thing, to talk about it (both talking) Karr/ We'll have it on the agenda. Payne/ Okay! Dickens/ Do we have anything on the, uh ... like bars, restaurants, that was on the (mumbled) Champion/ Oh, right! Hayek/ Yeah, that should be (several talking) Champion/ I had two liquor licenses, is that what it was (several talking) Dickens/ Yeah within so many feet. Outside the downtown... Champion/ Outside the ... right. Davidson/ It's on the urban planning division's pending work list. We just haven't got to it. We got four new cases this week. You know, it just gets shunted down. If...if there's a priority that you want to assign to it, please let us know and we'll .... we'll try and move it up. Otherwise it's ... it's on the list. We'll get to it. Dickens/ Just wanted to make sure it was on our ... work session. Meeting Schedule: Hayek/ Okay. Meeting schedule. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 13 Mims/ Got plenty of `em! Hayek/ Anybody want more meetings? Champion/ No! (laughter) Upcoming Events / Council Invitations: Hayek/ Uh, upcoming events, Council invitations. Throgmorton/ Probably! (laughter) Oh, nothing! Hayek/ Bet we've got the Chamber of Commerce sort of save the date, and maybe it was more of an invitation... Payne/ ... for January 17 ' . Hayek/ ...will you be polling people at some point about that? Karr/ It's in the, yeah, it'll be in the packet. Uh -huh. Mims/ There's invitation this Thursday to the IC Co -Lab open house, like 9:00 to 4:00. Throgmorton/ Right. Mims/ If people saw that. Champion/ There was another invitation. What was it? The House Built by Women or something? Mims/ That was today. Champion/ Oh! Well ... (laughter and several talking) I just read it in the late information or whatever it was (several talking) Hayek/ Okay. Glad we got those things out of the way. We'll turn no to the College - Gilbert, uh, discussion. Payne/ I'm going to recuse. Hayek/ See you later! Throgmorton/ Bye! Hayek/ See you at 7:00 rather. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 14 College- Gilbert Development Proposals, National Development Council Presentation on Gap Financing Evaluation Methods ( #13): Davidson/ Uh, good evening, Mr. Mayor and Members of the City Council. I'm Jeff Davidson, Director of Planning and Community Development. Uh, we're here this evening for the remainder of the work session, and then you also have an item on your formal agenda this evening to, uh, continue working through our process of attempting to select a preferred developer for the College - Gilbert corner. That's the three parcels of property, uh, owned by the City that we would be transacting to the, uh, developer as well as the MidAmerican Energy parcel, which will be transacted privately, but be part of the development parcel. Uh, with me this evening is John Yapp, who in addition to his duties at the Metropolitan Planning Organization has been the City's project coordinator for this project, and uh, to my left someone you may not know, Raquel Favela. Uh, Raquel is with the National Development Council. Uh, works side -by -side with uh, Tom Jackson. Tom's transitioned ... transitioning to some additional duties, so although we will continue to see Tom, uh, we'll be seeing more of Raquel and ... and that's great. Uh, you have the information that Raquel put together in terms of the financial analysis, with the information that we have at this time, and Raquel's going to talk more about this that's attached to the, uh, memo that John's going to step through. Um, I have just a couple of things to say, and then John is going to walk through the information which is intended to clarify information, uh, that is in the five proposals. Obviously you've received a great deal of public input, and we want to thank everyone for a very gratifying, uh, public input process. It's always great to see the community engaged in ... in giving their opinions and comments on that, and obviously that is information that you when you are making your decision will need to take into consideration. What we're here to present tonight is a little bit more nuts and bolts type things about the ... the proposals, and certainly to answer any questions that you have. Um ... you know I think we ... we should feel really good about the proposals. We had five proposals. You know I've been familiar with other communities that have gone through this process. They haven't had good response, uh, maybe they've ended up with development teams that they didn't know or were from out of town. You know, I think we have five really good, strong proposals. We've vetted them enough to know either they're people we're familiar with or people that we have investigated enough to know that they're the real deal, uh, they can accomplish a project like this. So we need to feel .... we have the luxury of five proposals that ... that I think ... give us a great opportunity here. Um, you know, ultimately what we're trying to do ... is figure out what project you like, what development team you like, uh, and.... and.... and make a selection and then mo ... move forward with ... with a development agreement. Um ... there is some frustration right now, not only from all of us but with the public, and some of the comments that you've received, is that we don't have more information. We don't have more specific information, and both John and Raquel will talk a little bit about that. The stage that we're out... at now, the information that we have available, and then in the future what we will be able to get as we move forward with, uh, development agreement. What you have before you are proposals, and I... and I want to emphasize that. Uh, both in terms of this process and in terms of the proposals, you have all the flexibility you want to bring to it, in terms of how we proceed and the project that we ultimately, um, end up with. Uh, there have been a lot of This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 15 questions, a lot of questions, uh, asked and posed. We are attempting to answer as many of those as possible. Ultimately you all need to decide, uh, the questions that you need to have answered in order to move forward and ... and make your selection. Uh, as we've laid out for you ... uh, the goal of course is to arrive at a preferred developer, from with whom we will then commence negotiation of a specific development agreement, and uh, a lot.... certainly those of you who are on the Economic Development Committee are familiar with these, uh, development agreements. We bring them to you first, uh, to have them approved before they get to the City Council, and that's what we're working towards. As part of that agreement will be a financial gap analysis, and Raquel's going to talk more about that, which is required of all projects that receive City financial assistance. We will be going through that exercise with the preferred developer, and that's when we get much, much more specific about the financing arrangement that we're going to have with the, uh, preferred developer. Um... as I mentioned, we have the luxury of also being able to select a first and second alternate, in addition to the preferred developer. Uh, and that ... that's a great luxury to have, because it basically keeps everyone's feet to the fire, in terms of negotiating that development agreement, and if we are unable to reach agreement with the preferred developer, we then have a second or third alternate that we can go to, and we would hope to set it up, uh, like that. We are also giving you the opportunity, um, if you continue to have what you feel are unanswered questions, uh, let's try and keep the process going. If you can narrow down the field from five to two or three, keep them all equal, and then indicate to us, uh, what additional information you need to make a decision. We can then spend the next six or eight weeks while you're all busy with the budget, uh, in the month of January; come back to you around the first of Feb... first of February with the additional information you've asked for, and continue this process. We've kind of set that up as an either /or, and ... and in terms of the discussion that you're going to have when we're all finished, you can maybe see which direction you want to go there. So, uh, at that point are there any questions before John and uh, Raquel step through the, uh ... uh, step through the information that you've received, and by the way — at any time interrupt us and ask questions. That's fine. Hayek/ I'm going to lay out a ... a suggestion I have and I ... I vetted it with staff for how we approach this, but it would follow what you folks are going to present. So I think we'll just go ahead and... Davidson/ Okay. Hayek/ ...hear you out and welcome you and ... and then take up our conversation. Thanks. John! Yapp/ Uh, good evening, John Yapp. Uh, we issued the request for proposals, uh, on August 31 St, uh, for development of the College - Gilbert property. Uh, this map, which was included in that RFP, uh, shows the project location at the corner of College Street and Gilbert Street, in association with other public facilities, uh, near the project, including parking and bus stop, uh, facilities. Uh, and as you can see this site is ... is very well served by, uh, transportation options, parking, and has a very close proximity to other This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 16 public facilities, which I think is one of the factors that ... that has made it so attractive. Uh, a closer -in view showing the project site and the MidAmerican Energy site, uh, which has the substation on it, uh, all of the development proposals have included that MidAmerican Energy site, uh, and MidAmerican Energy has indicated they would, uh, work with us, uh, in relocating that substation for ... for a cost, which would be part of the cost of development. Uh, there have been some questions related to development of the Chauncey Swan Park site, uh, directly to the north of the identified development site. Uh, the RFP was issued based on the site at College Street and Gilbert Street. Uh, and it ... if there's a majority of Council that wishes to discuss the park site let us know after the presentation and that's one of the things we can ... we can discuss. Uh, this slide which, and this information is in the staff memo to you as well, is an overview of some of the, uh, what I'd call physical project elements and ... I think help start to differen... differentiate between the different projects in terms of the number of floors, uh, ranging from five stories to 20 stories. Uh, the first floor or the main floor tenant — uh, four of the five projects include the New Pioneer Co -Op as a proposed tenant. Uh, one project, The Chauncey, includes, uh, movie theaters operated by FilmScene, uh, bowling alley and cafe on that main level. Uh, the projects are distinct in terms of the number of office floors, uh, proposed, ranging from zero to three floors. Uh, they are distinct in terms of the number of dwelling units, uh, proposed and one project, The Chauncey, also includes a 35 -unit hotel, uh, as part of that project mix. Uh, and then similarly they range in terms of commercial square footage, as well as, uh, gross square footage of the project as a whole. So these are some of the factors you can use to differentiate between projects, uh, as we get into the discussion. Uh, we had one question from, uh, Councilman Throgmorton that we wanted to address. Uh, and ... and was a good question in terms of ... how ... would we compare these project proposals in terms of, uh, property tax generation, compared to a ... a private project that is unsubsidized. Uh, and Mr. Throgmorton used a... a private CB -5, uh, building, uh, which translates to a... a five - story apartment building with retail on the first floor. Uh, and we actually had a ... a, uh, one of the proposals that ... that was not a finalist fit right into that definition and used that as an example. Uh, and ... in the near term, uh, approximately the 10 year timeframe a private building typical of other buildings that are being developed downtown, with retail on the first floor and apartments in the floors above, uh, would generate more property tax revenue in the near term. In the long -term however, uh, a more mixed use project of a higher density, uh, depending on the mass and scale and number of office or commercial floors in the project, uh, a more mixed -use building would generate more tax revenue in the long -term. Mims/ John, would these numbers, are they just total numbers added up per year, or are they present value numbers of those future tax flows? Yapp/ It's based on a ... a year one tax revenue estimate just multiplied out by per year. Throgmorton/ (mumbled) This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 17 Yapp/ Yeah, it does not include (several talking) Yeah, it does not include any, uh, appreciation of the property, uh, nor does it include potential land purchase elements. Um, so it's a very straightforward, simple... Mims/ Okay. Yapp/ ...way to differentiate... Throgmorton/ John, if I could elaborate just briefly on why I asked the question. Yapp/ Sure! Throgmorton/ It seems to me the crucial thing that we need to ... we need to ask, and be clear about, is how do these development alternatives differ from the baseline at the margin. In other words, if the baseline provides certain ... a certain revenue stream, if it provides certain amount of housing, etc. How do the alternatives differ from them? What's the incremental difference? What are we ... in other words, what's it costing us and what are we getting, in terms of each of those alternatives at the margin. I think that's the crucial question. Champion/ And I just want to clarify something. So this doesn't include any appreciation. Yapp/ That's correct. Champion/ So that would certainly alter how long a TIF would be in place, and how much actual taxes we would be getting (mumbled) would it not? Yapp/ Um, Raquel can talk a little bit about that more specifically, but yes. Champion/ I just ask the question because that's what happened with, uh, Plaza Towers. Is it not? It appreciated to the point where it was paying more taxes. Yapp/ And the, uh, tax increment financing was paid off sooner than... Champion/ Right! Yapp/ ...than initially anticipated. Champion/ Right. Yapp/ That's correct. Champion/ Right. Okay. Like seven years. Yapp/ Yeah. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 18 Champion/ Okay. Great. Thank you. Yapp/ Um, so the ... the financial element, uh, which Raquel will go into a little bit more, is certainly... an important factor, along with other factors. Uh... and the criteria that were included in the RFP, which are consistent with, uh, the City's economic development goals include, uh, and again, increasing the taxable value of property, uh, redevelopment of blighted property, encouragement of desirable projects such as downtown hotels, workforce housing, arts and entertainment venues, downtown grocery, class -A office space, and similar uses; encouragement of projects which result in increasing downtown destination points, uh, providing a safe and inviting downtown, and encouragement of housing opportunities for residents from a variety of age groups and income levels. Uh, these are adopted, uh, goals by the City. And I think these goals, the ... the financial goals and ultimately what Council considers, uh, the merits of each project and which project best meets these goals, uh, will lead to the selection of a ... of a preferred developer. Throgmorton/ John, I need to hop in there also. Yapp/ Sure. Throgmorton/ I think those are clearly reasonable and appropriate criteria, and I totally understand where they come from and all that. Uh, but it seems to me that we heard, uh, at least two other criteria clearly articulated during our public hearing. Uh, and... Hayek/ (mumbled) interrupt you, Jim, and the reason is that we're ... after we hear this presentation we're going to talk about the process we want to follow and I think we'll have a discussion about... Throgmorton/ Okay. Hayek/ ...whether and how to amplify what they're proposing... Throgmorton/ Okay, good deal. Hayek/ ...would be part of the ... just in terms of structure. Yapp/ Oh, and I think public comment is a .... is certainly a factor in this process as well. (several talking) Uh, and finally, um ... in your memo we attached a, uh, matrix of project elements, and it's shown on the overhead currently. Uh, again, to ... to start to differentiate, uh, factors, uh, with each project. Uh, and there are some distinctions. Uh, for example, some of the projects have, uh, a large amount of workforce rental housing... proposed in the project. Uh, one project, uh, has a small amount of workforce rental, but also a small amount of `for sale' workforce housing. One project as you heard in the developer presentations, uh ... is attempting to reach a LEED platinum goal for development with a net zero energy use, uh, in other words the building would generate the energy for the residential units; however, all the projects have noted that they will attempt to meet, uh, LEED certification at one level or another. Uh, and there's some This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 19 distinction in terms of the square footage of office and commercial space, and whether that space is proposed to be rented or ... or sold. Uh, so we hope this information gives you some... some, uh... criteria by which to differentiate between the projects. At... at this time, unless there's any questions for me, I'll turn it over to Raquel to discuss some of the financial, uh, investigations we've done. Hayek/ Great! Thanks, John! Welcome, Raquel! Favela/ Thank you! Um, so ... I ... I've had an opportunity this afternoon to also read some of the public comments from the previous meeting and so I thought it was helpful in my discussions with Jeff and John to really, uh, take this opportunity to explain where in the development process we're at, and why we're pointing to your decision today as one where you narrow down, um, who you want to work with, based on all these other criteria that you're evaluating, um, because really at this point they're all just proposals, and whether or not you decide to go with one or the other, um, the staff is trying to provide you and the public with an opportunity to impact the design and the programming for the building, and those things have a financial impact on that gap analysis, and so ... so far, uh, in an effort to provide you with some apples to apples comparison, really what we ... the only thing we could do for you is look at the assessed valuations, right? So for each of the proposals, we looked at as proposed what their added values would be, um, based upon their, um, requested financial assistance, how long it would take, uh, to pay that off. And again, those are all based on some fundamental assumptions we don't know will result in a final project. Um, also wanted to make a note that in the memo that you received from, um, Tom and I, uh, there was a calculation where, again, we were trying to give you some apples to apples comparisons, so we looked at the total area project components and calculated a cost per square foot, and there was one error on the Chauncey Gardens project, so we wanted to make a note, um, in that table, uh, the cost per square foot is $350. Uh, we had taken out some elements in ... in several of our runs of that, but I just wanted to take this opportunity to point that out. So ... again, the basic gap analysis is taking a look at the total project costs, less the loan that the project can attract based upon its income stream, and ... and the lender's terms, and then subtracting out the owner equity that will still provide the owner- developer with a fair market return on their investment and the difference from that will be the gap, uh, and where the City resources would come into play. So we start with the total project costs and this is where we are trying to ... um, remind you that you're still in the forming the idea and the development concept stage. So, um, once you narrow down this field to which developer or, you know, narrow down the field to one or two developers that you would like to work with, um, then we really need to get down to identifying the actual program for the building. What's the product mix and type. What's the actual square footage. Uh, there are some, uh, really huge distinctions in terms of scale of building, for example. So what would be supported not just by, um, the market, but also by the community. So 20 stories? Will that be supported? Two stories? You know, we don't know that but it'll have a huge impact on the actual gap analysis, right, because it impacts cost and it'll impact net operating income, how much debt can be attracted to the project. So all of these things will impact, um, you know, how much information we can provide you. So ... once we go through, um, with your guidance on, This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 20 uh, and the public input, on programming, then we can determine the financial, uh, feasibility of the project, right, look at other site and design constraints that need to be accommodated, what other goals need to be met, um, and then start to put together the actual income and expense statement so that, um, I wanted to point out to you that this is really the, when you ask us for a gap analysis, the number that we're looking for is a net operating income — a stabilized net operating income. So when the project is, um, fully leased or leased at maximum capacity based on reasonable, um, vacancy rates based on your market, and based on operating expenses that are supported by market information, how much cash will this project generate. So that that's going to determine how much the lenders will lend and what kind of return the developer can expect. Right? So, once you put, um, our total, uh, sources and uses of funds, how much will they incur during construction, what are the costs that need to be covered during construction, how much has to be covered at permanent, um, and then what other sources of funds are available. There's been a great deal of talk about TIF. We ... we don't know if that's a source that's actually going to be available. We'd have to know the, again, the final assessed values that we can estimate based on the final program. And then the developer can move forward with obtaining the permanent financing. Right. That would be the next step in the process. So until they actually get, uh, to that point, we really can't determine how much equity they need to put in and how much gap financing you'll need to, uh, provide. Um, and then a whole bunch of other things need to happen that are part of the development agreement. For instance, there's gotta be a ... an actual construction loan, um, for the transaction. There's gotta be a... an agreement between the construction lender and the permanent lender on who's going to, um, be responsible for construction inspections and all that, you know, that, uh, has to be agreed upon in advance of negotiating with the lenders and the developers, and then you move to the actual final construction drawings, right, and this is where you start to get hard numbers, um, and really frankly the responsibility of the staff will be, uh, we've got a general program for the building, we've got cost estimates. Now we need to compare that with the actual construction contract costs to see if the gap financing is still warranted. So it's a ... it's an ongoing process, um, to determine. So essentially your development agreement is set up so that you're not subsidizing beyond a certain amount and that yields a certain amount of return to the developer. Um, and... and then frankly and the most important aspect of this is on the operation's side. So you want to have a product that you know is going to be successfully managed, um, and it's going to be leased, and that you're going to feel comfortable with the property management team that is selected for the project. It's a lo.. ...long long -term investment for the City. Um... so at this point, in the due diligence process, we really need your help finalizing a selection of a developer so that we can finalize a development concept. Again, that's supported by the community and the market. And that you feel comfortable with, uh, negotiating with the development team. And then our job will be to help you review their operating proformas, their assumptions for, uh, costs, um, and revenue streams, uh, this will give an opportunity to actually call and check, um, development team references and review other projects that they've done. If that's something that you still have questions about once you've narrowed down the field. Um, but our job will be to make sure that ... their assumptions in their operating proformas are reasonable and that we can verify them with similar, comparable projects in this market. Uh, we want to make sure that we can also verify these things through This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 21 appraisals. Want to make sure that the rents that they expect, the vacancy rates that they're anticipating, are all adequate and not overstated in any way. Um, and then some key things that you ought to consider just in general, uh, is ... is the developer willing to contribute equity to the transaction? Right? That's... that's reasonable expectation, uh, in this type of project. Um, can we verify their construction costs, um, for ... what is expected? If they're also, if the developer is also the contractor, when we look at their total fees, as developer and contractor, are they reasonable? Is it a reasonable profit and overhead? How do their fee arrangements with the architectural and engineering firms, are they reasonable? Do they track industry standards for this market? So all of these things will come, it's just we're not at that point yet. Uh, so ... so to make those assessments, I think that it would be helpful if we focused on, uh, the developer's experience with this type of project, which we can ... with whatever concept you feel most comfortable with and you feel meets more of your public policy goals. Um, do they have that experience, because this is truly, as you know, a very specialized business. So, um, and do they have the financial strength to cover cost overruns and to manage operating losses? Is there a plan in the event that there are operating losses? Is there a plan to ... to meet those (noise on mic) shortfalls? And again, we can't overemphasize how much equity is the developer willing to invest in the transaction? And still provide them a fair return on that investment. So... Hayek/ Thank you! Davidson/ Thank you, Raquel and John. Good presentation. So hopefully that's clarified where we are now ... in the process, where we want to get to, what information we have available at this point, what information we will eventually have, uh, available. There are clearly some things that, boy it'd be great to have them now but it is going to involve tens of thousands of dollars of expense from the developer to get from this point to where that information is available. Typically that would be done after the selection of the preferred developer, getting into schematic design, getting financing more specific, finalizing the project concept, which as Raquel says is what we really need to do first and foremost, um, in the case of... you ... you've even ... you even have correspondence from some of the proposers saying well we could do this or we could do this. You know, that's all gotta be nailed down before we can really get to the specifics. So at this point is there any question about the process and then we'll just open it up for discussion. Hayek/ Well let me, uh, weigh in at this point. Um, here's what I'm going to propose we ... we do today. Um, I don't think, and I ... I think many of you share this, uh, opinion and I think staff does as well that ... that we're not at a point today to select one, um, and... and ...and zero in on one and start the preferred developer, uh, process. Um, my sense is, and I ... and I believe this is, uh, sustained by staff opinion as well that we can and should, um, reduce our number from five to a lesser number. Two or three. Um, and I think they're suggesting three. Um, today. To continue the process, uh, toward that ... that preferred developer decision, uh, that ... that we need to make and ... and ... and can make, uh, right after the first of the year. So to eliminate let's say two developers from the five, um, which would leave three, we ... we really don't need to rank the three, and it may be advantageous for us not to rank the three today, um ... but instead to move forward, uh, to This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 22 drat ... to direct staff between now and ... and our first meeting in January to develop a decision - making matrix, uh, based on the RFP, based on the financial, uh, discussions, and based on whatever the Council would choose to add to that. Um, in the meantime invite the developers to review their numbers and if they want to sharpen their pencils or submit revised figures, uh, you know, encourage them to do so by a date certain, maybe later this month at some point, um... and then at the January 8th meeting, um, adopt a staff proposed matrix. Um, and then go through our decisions to narrow it from three to ... to one or to rank the three, something like that. So I just want to throw that out there, uh, as an idea. Mims/ Yeah, I have no, um, no problem with what you're proposing. I guess my only question would be, you know, in terms of what ... what we're going to ask those two or three that we ... that we kind of keep on the table. What we're going to ask them to do, say between now and January 8th, and you know, how much more time and money we're asking them to put in to it before we actually start negotiating with somebody. Hayek/ Yep. Mims/ I mean, they've already put lots of money in and that's, you know, that's part of the gamble that developers have to do. They're not always going to get chosen but to have a chance they've gotta put time and money into it, and so just kind of how much more are we asking to do, um, before we actually start specifically negotiating, but I mean I like what you're saying. Hayek/ Yeah ... yeah and to be clear, there's, you know, there's obviously a pre- decision and post- decision set of real... realities and ... and a certain, you know, there's so much negotiation and adjustment to be made, even after we select a preferred developer. That's been clear from the get -go, and so um, I think we have to anticipate that. Mims/ Yeah. Yeah, we might not even end up signing with our "first" preferred developer Dobyns/ Well I'd like to start by talking about maybe discarding two and if it's looks like... Hayek/ Let me just interrupt you. Do you want to add anything to that, Tom, or... Markus/ No, I just think, uh, asking the developers to sharpen their pencils is really the biggest question I think that I would pose to the ... to the selected three developers, uh, going forward, in case they want to reduce their (mumbled) change some of the numbers in their equation. Hayek/ Are people generally comfortable with this approach? Champion/ Sure! Mims/ I am. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 23 Throgmorton/ Yeah, I ... I think it's very wise not to try to choose one developer tonight and I'm completely comfortable with the idea of identifying three and doing the pencil sharpening kind of thing. Uh, I do think it's really important to do two ... to make sure that we do at least two separate things. One is to always have the baseline alternative in mind. Because it's what we're getting that's an addition, and what the cost is in addition to the baseline that is crucial. And then the second thing is, as I started to allude to, um, in questioning Jeff is, uh, I think we need to consider two additional criteria that are not included in the staff's original set of goals and criteria. And ... and one of them has to do with, uh, rec ... expecting high - quality urban design. And uh, high quality architecture. That was mentioned in various ways by people who spoke at the hearing, uh, of, uh, two weeks ago. Uh, and I could elaborate but I don't want to do that right at this moment. The second thing has to do with, uh, basically long -term sustainability of the project. That was emphasized over and over and over again in, uh, emails that we received and in commentary, um, made during the public hearing. And indeed, from all the developers, but it doesn't appear in the set of criteria that the staff originally listed. From my point of view, those two criteria matter a lot — the quality of the design, architecture and urban design; and the, uh, long -term sustainability of the project. And I ... I don't think it's, uh, reasonable to say, uh, just because one, uh, team says it will aspire to LEED certification — I don't think that's sufficient, cause you can get, um, quite a few points on LEED just by having the project located in the downtown area. So, a higher standard, uh, is ... is, we should call for a higher standard; we should set this as a ... as a ... a ... a significant objective for our city. Hayek/ Well if people are onboard with this, why don't we have a discussion about eliminating two, get it to three, um, and then have a discussion about the decision matrix, for lack of a better word, and incorporate Jim's comments and whatever other commentary we want to have. Does that sound all right? Champion/ Uh -huh. Mims/ Sure. Hayek/ Okay. Dobyns/ (both talking) (laughter) Yeah, that's just ... let's get it going, Um, I just was going to throw out an issue is that in terms of scope, um, one thing I would put out, throwing out and discarding would be the Ryan Iceberg, uh, option. In terms of having five floors, um, I think in terms of being in the central business district what we need to have for our future property valuation. I mean, I think that's ... to me that's sort of, you know, I'm really enthusiastic that a group, um, from outside the area came in and was interested. I think that's great. But at this point, um, I think the scope of that Ryan Iceberg is something that I would suggest as something that we would discard. Champion/ And I totally agree. It was the easiest for me to eliminate because first of all it has no office floors. It doesn't really have any of the, kind of the goals we have for that area, This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 24 and it's small and I think it's going to be conducive to a student housing, and I'm not against students — thank goodness you're here! But I don't think that's what we want to see in this area, just another student apartment building, and I think that building's very conducive to it, cause it doesn't have any other, uh, criteria that I'm looking for. Mims / And it was all rental. Champion/ It's all rental! (several talking) Dickens/ ...most tax values coming in. Champion/ Well that was easy! (several talking) Davidson/ I'm hearing four. That was easy! (laughter) Hayek/ Yeah! Davidson/ Okay. Champion/ The other one that I also could eliminate without too much difficult is Zero 4, although I really like the idea of the building. I think it's also very small, and um, and I think it's just the size. It's just the size bothers me. Throgmorton/ Well I have to say, Connie, I completely disagree with that. Champion/ I'm sure you do! I ... and you should! Throgmorton/ Especially when we think about the, uh, the commentary that was made by people in our public hearing, with regard to ... ensuring that the building be of a height that, uh, and scale that's appropriate to the, uh, to the downtown, especially in a transitional zone between the core of the downtown and the nearby residential areas, and secondly with regard to, uh, the sustainability features associated with the projects. I personally would ...would rank that project, you know, in the top three for sure. Mims/ I think my second one to eliminate would be the Sherman Associates, um, again this was entirely rental. Champion/ Oh, right! Mims/ They're focusing to be mostly toward student housing, developing a University communities. Urn ... I just...I think we need something, and even with the rest of them like if we stay with 404, I have a concern about their ratio between rental and sale, uh, I think that would need to be negotiated, urn ... but Sherman's seemed to be ... their whole focus was on just rental, which I don't support down there ... at that location. I think to bring the kind of residential mix that we want downtown, there's ... it's gotta be a mixture of rental and for sale in these units. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 25 Champion/ Well I can agree with you on that one. Dickens/ I would ... I would follow that as well, just looking over all the figures as far as rental and ... number of years that they're looking at TIF ... I would rate the three top projects as 404, The Chauncey, and Chauncey Gardens. Hayek/ I'd say with ... with (both talking) with Sherman it's interesting and on the one hand I think they've got a ... a demonstrated, um... Champion/ Success? Hayek/ ... and in terms of the experience you look for in a... in a developer, they've got that in spades, um, but I am concerned that it is, uh, simply one floor of, you know, retail and everything else is ... is rental. They ... they will do one floor of office if we guarantee purchase of it, uh, which is not an enthusiastic approach on ... on that issue. Um... so I... those ... those are my concerns with respect to that. It doesn't hit on as many of the multi- use objectives that we've, uh, come up with. Throgmorton/ I ... I'd say I don't feel much enthusiasm for the Sherman project either, uh, but I'd say one other ... so, it's not my top three, but I'd say one thing about the, uh ... um, the Ryan Iceberg project. In some ways it has a certain appeal because it ... because it...it potentially, you know, if you add a four to it, it could be of a reasonable scale from the point of view of many, uh, Iowa City residents, but when I ... when I look carefully at what ... what we would get and how it differs from the baseline, I just don't see much difference, and ... and so I cannot ... I just don't find myself feeling enthusiasm for it, and ... and, so that matters. Dobyns/ That's Ryan, isn't it? Throgmorton/ Yeah. Dobyns/ Yeah, that's what I meant by scale. It just isn't that more than ... what's already there, or could be there. So... Throgmorton/ I've given us much more than what could otherwise be there. Dobyns/ And I agree with, uh... Throgmorton/ And I don't mean just height, you know, and mass, I mean just... Hayek/ Yeah. Throgmorton/ ...essence, if you will. Dickens/ (mumbled) This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 26 Dobyns/ And I would agree with, uh, discarding Sherman and Associates. Option #2. Bramel/ I would say one thing, um, concerning, um, Sherman, why I'm not against student housing whatsoever, but I see more enthuse... enthusiasm, hear more enthusiasm for what would be ... we would be using the first floors for such as the Pioneer, the Bike Library, the ... the FilmScene. I think that's more of what's generating enthusiasm, moreover than, uh, student housing. So I would be in agreement with that. Davidson/ (several talking) ... would be the narrowing down... from five to three. (several talking) That was ... (both talking) Hayek/ All of ten minutes of discussion (laughter) Davidson/ ...commend you on your... decision making. Dickens/ We can drag it out longer if you'd like! Additional Criteria: Davidson/ Shall we devote some time now to additional criteria you would like to see. Jim started the discussion already. Hayek/ So, but ... to pause, are we ... are we clear that Ryan and uh, Ryan Iceberg and Sherman are ... are the ones who we will not proceed with? Champion/ Yes! Throgmorton/ Yeah. I ... I'd like to make a request, uh, of Jeff and John, and it has to do with that marginal analysis notion. In your matrix, uh, could you provide us, if others agree, could you provide us with a table that clearly indicates how the three ... the three projects that have risen, uh ... um, compare to the baseline alternative. Long/ We can. Throgmorton/ At the margin, you know, how they differ... Long/ We'll have to make some assumptions about the baseline, but yes we can. Davidson/ And as Raquel indicated in her presentation, we're making a lot of assumptions, but as long as your ... we'll explain what those assumptions are. We can tweak them if you'd like. But we'll lay those out and then yes, Jim, we can produce that information. Throgmorton/ That's great! This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 27 Dobyns/ I also had a question about workforce, um, type living. Um, I'm trying to, especially in a university town where there's a very strong market, um, for student housing, um ... again, this is an area I'd like to ... I'm very interested in ... a reasonable component of this being workforce development, and I know there's been discussion before about what sort of things would differentiate between what a workforce, um, type of rental agreement would be, owner versus rental, versus the layout of the structure. Um, where, I mean, more likely to be small, young families or something like that, you know, to emphasize that in terms of what that really means, um, and how we can make sure that happens, cause I would assume the price would be very, uh... Davidson/ Price is one factor, and unit type is the other factor. Dobyns/ Okay. Davidson/ Those are the two things, uh, Rick that we ... been, that we ... we've used basically to establish our definition of workforce housing, both for rental and for sale. We've established specific price points and lease points, and ... and you have seen those and adopted them, and we can ... we can, uh, bring those back to you for discussion if you'd like. Um, the other thing is in the unit type. Pretty much limiting it to efficiencies and ones, and maybe some twos, and that that's the other way to keep the probability of student housing down, although I concur with every comment that's been made, there's going to be students living... Champion/ Sure! Davidson/ ...there are students that live in Plaza Towers! Um, but ... but through those two mechanisms, Rick, I think we can control the ... the workforce housing nature and ... and make sure we have workforce housing in the project. Dobyns / And the absolute number of, uh, workforce, um, units is different in the remaining three proposals and I have an interest in maybe... changing that just a little bit and increasing it, though I don't think it should be a majority. I recognize, uh, the demographics that we're looking for is more diverse. But I'd be interested in some discussion about what people (both talking) Dickens/ ...just one has workforce units listed at ... Chauncey has seven. The other ones don't have... Davidson/ You know, a way to look at it from your (several talking) Dobyns/ ...easy to adjust that, cause... Davidson/ You can establish some required minimums, 25% of the project, 10% of the project, 50% of the project. You can do it that way, or you can simply say give us your best... shot, and we can compare the data in terms of what they're willing to do, in terms of guaranteeing workforce housing. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 28 Hayek/ I ... I think it's going to be hard for us to quantify these ... this wish list, at least at this stage, um, to say it's gotta have X % of such and such. I mean we're taking this in the aggregate. We're making a decision based on, uh, a single building that we hope will last a hundred years and could have a multitude of uses over time. Um, and so you want to, I think, step back and look at the broader... picture and um ... I mean that'd be my sense. That ... that we could get ... we could get stuck pretty quickly if we ... if we set up certain requirements, unless it's clearly a majority, or clearly a priority, um, of...of this Council. Throgmorton/ So are we gonna hang with ... this workforce housing topic for a little bit? Hayek/ Sure, yeah, yeah! Absolutely! Throgmorton/ Okay. So I guess what I want to say is I ... I support the idea of subsidizing workforce housing, uh, at the site, but I'm not willing, personally, not willing to subsidize construction of luxury penthouses, and other contos ... condos in which the vast majority of our city's residents cannot afford to live. I ... I don't see why we would want to do that, uh, so just to put that out on the table. Champion/ Well... Throgmorton/ Then I have a couple ... let me ask a couple questions... Champion/ Okay. Throgmorton/ ...then we can come back to that. Uh, I wonder with regard to the workforce housing, uh, how can we be sure that the workforce units are occupied by members of the workforce? Champion/ Can't! Throgmorton/ So that's one thing. And the second is, how could we be sure that they would continue to be occupied by members of the workforce, over time. Davidson/ There are mechanisms and I might ... I think Steve Long is present. We might have him step forward if he's still here. Um, he is used to dealing with programs where affordability is guaranteed. (speaking away from mic) ...can you address that, Steve? Long/ Sure. Throgmorton/ Hi, Steve! Long/ Hi! There ... we can do, uh, similar to our CDBG and Home programs or other, uh, UniverCity programs, you can ... you can have the developer, um, have a process where they ... they income - certify tenants, if it's rental. A lot of times, uh, some of the proposals had tax credit ... tax credits in the proposal. Those have a long -term, 15, 20 years where This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 29 they have to certify, and some programs ... you kind of factor out the student, um, where ...where someone has to be on their parent's income, or on their income taxes. So if they're on their income taxes then you have to count their parent's income. So that automatically excludes them from living there. Oops, so there are mechanisms we can put in place and we can work that out with the developer ahead of time. Hayek/ I don't have the RFP on my ... piece of technology here, but in terms of the... Davidson/ John has it memorized! Hayek/ Yeah, I bet he does! (laughter) Um ... the ... the bullet points that are listed on page four of the staff memo that say what the RFP include. How closely does that language track the actual RFP? Long/ Almost identical. Hayek/ Okay. So I mean, in terms of the specificity we put into the RFP on, for example, workforce housing... Long/ And those ... those were... derived, those goals were derived from the adopted City Economic Development Policy. Hayek/ Right. Long/ And the Downtown Strategic Plan. That's where those came from. Which are both adopted documents. Mims/ I have a question. I don't know if staff has seen, um, the email that we got from Peter Fischer, who obviously's done a lot of work and research... Davidson/ Saw it late in the day. We haven't had time to look at it in detail. Mims/ Okay! Um, I don't know if other Council Members concur. I would be interested in having staff, you know, take a look at some of the points in here on... and I don't know if this is practical. Um, he talks about, you know, how's the TIF subsidy distributed across the kinds of uses in such a project. When you've got, you know, multiple different uses — residential, um, office, you know, commercial, etc., is there a way of allocating, you know, what we're subsidizing. Jim just talked about personally not willing to be ... not willing to subsidize, you know, luxury apartments or whatever. Is that something that's realistic? I ... I don't know, I mean, how we look... Davidson/ You certainly need to make sure that you're achieving some community objectives. Mims/ Right. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 30 Davidson/ ...with a project that includes... includes TIF funding. I mean, the one that we've done most recently that I think all of you are familiar with is the Park at 201 project, where basically there were additional office floors that were not required by the zoning ordinance. I don't think something that's required, we should, you know, be able to credit but... additional office floors above what the zoning ordinance required and a guarantee of some of the units ... being in those price points and lease points for workforce housing. And basically, that was enough for Council to gra... grant the TIF funding, even though there are two luxury penthouse units in that building as well. You still achieved some of the community objectives that you were looking for. And I guess that's the initial approach that we're taking with this project, but ... but again, you have all the flexibility in the world if you... if you feel like going in some other directions we have the ability to do that. Champion/ I just want to, um, I wanted to comment on Jim's comment, um, about subsidizing luxury housing. You're not really subsidizing luxury housing; you're subsidizing the building of a structure, and if you don't have luxury housing, you're probably not going to have workforce housing either, because somebody's got to pay the bill, and workforce housing probably isn't going to pay the ... pay the bill, so I think the mix of `em is probably very profitable. Dobyns/ Mix, yeah, because you want to increase the taxable valuation of property. You do that best by having high -end units. Champion/ Yes. Dobyns/ But still the sense of TIF to me is ... I'm just arguing about zero. I just don't like zero workforce. Um... Champion/ Oh we're not going to have zero workforce! Dobyns/ Yeah, but ... but some of the ... two of the three remaining, it is zero now. Hayek/ Yeah. Favela/ I think that's absolutely correct. I mean, as you're looking at the unit mix, what generates the gross rents, um, is going to be greatly impacted by the types of units that are market rate versus the units that are going to be, uh, at a reduced rent to achieve that workforce housing target market. So ... in effect, those higher end units, the market rate units, are subsidizing your workforce housing units. Hayek/ Well and to that I would, I mean, this is why this is such a complex decision making process for us, because you ... every time you move a piece, it affects the remaining pieces and if you...if you're against height, um, for aesthetic reasons or other reasons, um, that's okay, but you're removing the ability of... you ... you're contracting the ability of the project to pay for the, uh, less lucrative components of it, um, apropos your point about the luxury housing, and ... and even, you know, the more community amenities you want This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 31 ...you want in there, you know, depending on how ... what your return on investment is, there's a subsidy to that. So that's the difficulty of this, I think, from our perspective. Favela/ Absolutely! So ... so really it...it is a matter of identifying just some target goals, not ... I ... I agree. You can't really dictate the number of units because that ought to depend upon what the financing of the project can support, right? Champion/ And I just want to cor ... I mean, all of these provide some workforce housing, somebody said some of `em don't provide any! They all provide some! Mims/ Yeah, those three... Dickens/ ...rental are up here. We were looking at the ones for sale. Champion/ Well, yeah... Dickens/ (mumbled) Champion/ Oh, right, right. Throgmorton/ (several talking) ...provides 14, at least as I read the table for... Champion/ Seven rental and seven for sale. Throgmorton/ Yeah. Um ... why would we want to subsidize that? Champion/ Why not? Throgmorton/ I mean, just ... just to be argumentative for a second you know... Mims/ Well, because you're also ... you're also subsidizing FilmScene and the bowling lanes. Throgmorton/ Right. So the question is (both talking) what do we really value, I mean, that's what we just have to be clear about, right? Mims/ I agree! Yapp/ We can take a stab as staff to provide a, uh, I think a decision - making matrix (several talking) was the term. Um, and I guess I'd ask what, besides the factors we would normally include, number of office floors, uh, the types of uses, number of units, number of workforce housing units, etc., what other information would you like on that? Hayek/ Yeah, and... and let me, uh, add to that and say, you know, we have to be careful as a Council. We can't be at 100,000 feet above ground looking down, but we can't be on the ground either, and ... and at least from now through the next stage or two, we're going to have to rely on staff's, uh, discretion at some ... to some degree to, or maybe to a large This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 32 extent, to propose a rationale, workable matrix, um, and ... and help us, uh, through this. It seems to me, and so getting back to John's point, I mean, we ... I think, you know, what we need to decide now is ... do, how do we want to amplify the ... the decision making matrix. We've already got the RFP points which we need to include. Um, we've got the financial analysis, um, that ... that's in there already and I think we rely on staff and NDC to help refine that and get them into, you know, sort of a workable context, uh, through the matrix. And then I think we should decide on, you know, what else we want to add to it. Jim, you had a couple of points and ... and others may as well. Throgmorton/ Maybe I could elaborate a little bit about, uh, the architectural and urban design elements that I was thinking about. Hayek/ Sure. Throgmorton/ Um, and ... and again, much of this based on what we heard in ... in the public hearing and in emails from various people, uh, so I would say it's ... it's important that the preferred building's design be compatible with and enhance our downtown's unique sense of place, and uh, and ...and that the scale, height, mass of the building be appropriate for a transitional zone. That's my assessment. I'm not claiming anybody else believes this. Um, between downtown and the residential neighborhood to the east. I think we have to take that ... that three- dimensional character. It's about urban design. Into account. And ... the second thing is, uh ... I'll just introduce the topic uh, and we'll talk about maybe in a minute, but purely in terms of urban design, it seems to me that the north end of the block is better, is preferable, to the south end of the block. Hayek/ Well to that .... now that takes us into (both talking) unchartered water here. Throgmorton/ Well... (several talking) Davidson/ ...can address it. We ... we talked about that internally when we were preparing the presentations this afternoon, and basically wanted to see ... John deliberately didn't say much about that because (laughter) we wanted to see if you wanted to go there basically. If there's a majority of Council that wants to consider the park site in lieu of the existing site, our conclusion and our recommendation to you is to reject all the proposals and start over. (several talking) Because... because we feel that's the fair way to do it ... for the developers. Champion/ I'm not interested in doing that. Throgmorton/ Even ... even if we've already just said we ... we want to look at three development proposals in more detail, cause they would all have an equal opportunity to revise. So I mean I just want to be clear about this. Yapp/ But I think others that... either responded to the RFP or might have responded to the RFP ... uh, if it was the park site versus this site ... uh, I agree the fair thing to do would be to start over. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 33 Davidson/ I mean, in terms of public process, and I mean, Sue correct me if you feel differently from a legal perspective, but our thought is that if you start over you start over, and it's ...it's public property and... Hayek/ And I think the investment that has been made by the nine, uh, applicants and then additional investments by the ... by the five, I mean, those numbers are probably staggering. I think it would be a real issue to... Davidson/ But to clarify, you have every right to reject the proposals and start over, if that's the direction you'd like to go. There's nothing keeping you from doing that. We did check the covenants, if there were any covenants with the park property and of course you don't have to go back very far. That was a parking lot before it was a park, 15 years ago it was a parking lot so it can be sold for redevelopment (several talking) Mims/ ...if we didn't have... Markus/ ...other reasons that staff listed that, um, cause some concerns about moving that park to the north. Did you ... did you walk through those publicly? Yapp/ Uh, sure. The other reasons are that ... that the park and, uh, the adjacent Washington Street right -of -way are in the Ralston Creek flood plain. Um, and we also discussed the ...the possibility with the Parks and Recreation Director, who I think is still here tonight, um, and he was not in favor of that option of redeveloping the park either. Um ... you know it is ... it is possible and one of the, the Chauncey Garden's proposal initially did propose developing on the park, uh, and it is possible to elevate the first floor commercial. Also elevate the Washington Street sidewalk to meet that ... that commercial space. Um, but because the ... the identified site, the ... the College Street and Gilbert Street are well above the flood plain and the first floor comic... commercial can be at grade, uh, at the College Street and Gilbert Street level. Um, we do not recommend pursuing the park option for that reason. Dulek/ Matt, may I just ... legally you could go with the three and ask them to give you a proposal for the north side. But politically and policy wise, that's... that's a very, very difficult decision. Dobyns/ Well faced with negative alternatives, one of the things, and (mumbled) one of the concerns I have is the shadow effect, uh, during the winter months on, uh, Trinity Episcopal Church across the street. Yapp/ And I think you've had some public input on that. Dobyns/ Right, and um, I haven't seen the shadows, but I think with the taller buildings, I can't imagine that during the winter months, that during a Sunday morning, during this time of the year, when uh, light is an environmental influence on what's going on in a ... a, um, faith area, I assume it would be in shadow. And I have no idea... This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 34 Davidson/ Five of the proposals would have the church in shadows. Dobyns/ Okay, all ... even this (several talking) Okay. All right. So we'd have to... Davidson/ But I certainly concur that we need to do a formal shadow study for at least the preferred developer, and you know, we can ... if it's Council's, uh, request, we can ask all three to conduct a shadow study. Throgmorton/ I would think we'd want to do it for all three. Dobyns/ Well, I ... certainly during December... it's going to be a problem just because the nature of the sun. Davidson/ Yeah, I mean if you're going to go ahead and do it, Rick, you can (both talking) Dobyns/ It'd be nice to know what the burden is, so... Markus/ But the ... but the church impact, it was... you're... you're indicating that any of these three proposals would in fact shade the church, uh, during that morning service period that, uh, the pastor seemed to be concerned about. Long/ I think we'll ... we'll get the shadow study to verify that. (several talking) Davidson/ We did receive some... preliminary information (several talking) Long/ And typically it will be different at different times of the year (several talking) Hayek/ I mean but I know, but (several talking) sitting around playing with the shade software or is this something we've actually done? Davidson/ It is based on that. (laughter) Dobyns/ You don't trust my knowledge of astronomy? Mims/ (laughter) No! (several talking) Hayek/ ...hanging out in front of his computer on Saturday night either! (several talking) Markus/ But John it seems to me that you could come up with a range that suggested what the minimum elevation would be before it did not impact. And... and then, you know, how far the max building height is the other end of the range. Davidson/ I think that can be determined though. Hayek/ We can do that though. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 35 Davidson/ So, all right, we'll pursue the shadow study. We'll (away from mic) Hayek/ Okay. Throgmorton/ Could I mention one other thing about urban design kind of stuff? Um, regardless of the height of the building, or even its location, I think the developers need to consider much more carefully the relationship between their building and other buildings and public spaces nearby. Uh, Chauncey Swan Park, for example, the ... the building itself helps shape the public space there and that park has an opportunity to be a dramatically enhanced community space, public space, for the people of this city, and so if...if the design... designers of these buildings could really look carefully at the relationships between their buildings and the design of their buildings and so on and the nearby buildings, Chauncey Swan Park, really think that through a little bit more. Davidson/ (mumbled) summarize that (mumbled) Hayek/ Yeah, but ... let me ... throw out a caveat here though, I mean, we ... we've got this broad, uh, category called (mumbled) high quality architectural urban design, and then under it we're starting to add more and more components and frankly many and perhaps all of those are ultimately subjective. Champion/ Totally! Hayek/ ...idea of high quality versus what's yours, etc., and I mean I think staff can only do so much in terms of embedding that information or those ... those questions into a matrix. At the end of the day it comes to us and we have to decide do we think it hits on those things or not, or how would we as individuals rate them. Champion/ I think we have to be careful that we don't try to design everything. Mims/ Their building. Champion/ I mean, that's... that... Hayek/ You raise good points, Jim. I'm must... Champion/ Yeah. Hayek/ ...how we get from those points into something we can digest and work with. Yapp/ Yeah, there are items that are measurable, square footage of office space, for example. There are other things that are not necessarily measurable, such as quality urban design, but we can attempt to provide information on (mumbled) This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 36 Throgmorton/ Moreover just to spin this just a little bit, uh, I wasn't saying that developers `must do' exactly what I would prefer, but if... if we tell them we want them to think carefully about their relationship between their building and the nearby buildings and public spaces, that's a little bit of a nice challenge for the designers, and they will apply their skills to it and come up with their own... Davidson/ ....appropriate. I mean the building shouldn't be a piece of sculpture (several talking) Champion/ Oh I disagree! (laughter) I would like to see a giant sculpture there! Hayek/ Let's, uh, give this ten more minutes, um... Davidson/ By the way, what we will do is we will, John and I and Raquel will take our notes, we'll summarize this in a memo to you, and you'll have a chance at a work session (both talking) Hayek/ Let's give this ten more minutes. We forgot ... I ... I forgot to do appointments, which should take us about 60 or 120 seconds, I think, uh, but we need to do that before the meeting. Davidson/ Any... any final comments about the process? Throgmorton/ I could emphasize the (mumbled) uh, more ... I think we got an email from Martha Norbeck concerning LEED certification and about, uh, how it would ... I think she was encouraging us to kind of strive for a high level of LEED certification cause it's so easy to get a low level certification, uh, and especially since buildings are ... new buildings are so important for energy use in this ... in this country, and in our city we have a real opportunity to send a strong signal to the building community about what we really value here. Mims/ The only comment I would make about that is, I ... was talking actually not too long ago to an architect and it had nothing to do with any of these projects, and they were commenting about having just been to some national or maybe even international people were there on LEED certification and they talked about how this has become kind of the thing to do that cost a heck of a lot of money that you can get a lot of those same sustainability, energy efficiencies without going for the certification, and it can be just as good but a whole lot cheaper, so I ... I think we have to be open minded in terms of what they come back with, in terms of their sustainability issues, um, and... and features versus hanging our hat simply on LEED certification. Dobyns/ I agree. I think there is a day when we really won't need LEED as much anymore because that sort of building will evolve and become more common place. I mean definitely it's something we needed as that type of building was nascent, but at some point I agree. I don't ... I'm not sure what ... I'm not sure this is that time though. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 37 Mims / Right, and I mean I agree with being concerned about the sustainability of the building. That's, I have no problem with taking that into consideration, but I don't think we have to say, oh it has to be LEED. Let's look at what they're really talking about doing versus going for a designation that may cost them tens or thousands of dollars more just to get that piece of paper. Dobyns/ Does having LEED designation sort of keep your feet to the fire... anymore? Or (mumbled) evolved beyond that? Davidson/ (away from mic) ... characterized it very accurately (mumbled) You know, the city is already contributing to LEED certification because we have a bus route. It's in a downtown location and we have a bus route that goes by the site. You get points (several talking) Hayek/ Is LEED the only determinant of sustainability? Davidson/ No, there are other determinants. We'll flush that out as well. Dobyns/ So it can be LEED -like but not necessarily (laughter) Mims/ There you go! (laughter) Markus/ And sometimes you know the difference between those different levels, you know, you spend a disproportionate amount of money to achieve that level, but when you're talking about this kind of project, you have to keep in mind that that creating part of the gap issue too. So ... if you get 90% of the benefit, uh, and the remaining 10% costs you another 50 %, does that make sense to do that? Dobyns/ (several talking) ...name brand. Hayek/ Did ... uh, Raquel's point, uh, toward the end about ... about experience in financial strength and contributed equity, are those things you intend to put into the matrix already or do we need to discuss them? Favela/ Well, um, we really can't determine the amount of equity that would be reasonable for them to invest until the programming for the building is final. So in the sequence of events, we just sort of need to hit the ... what gets us (mumbled) project cost which means the programming for the building needs to be final, and then we can sort of based on some industry standards, figure out what's the maximum amount of private debt they can attract, and then back into what's a reasonable amount of equity based on what the project cash flows will be. Hayek/ What about financial strength? I think your third point was experience. Favela/ Their financial strength, um, and this might get a little touchy with the developers, but ordinarily when we underwrite a developer, we ask for three years financial statements. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 38 So balance sheets, financial statements, so we can take a look at their financial wherewithal to actually complete the project. Hayek/ But not if the ... not this next stage. Favela/ That's right. Hayek/ That leaves, I guess, the third point that I saw from your thing — experience. Favela/ Yes. So on experience we can definitely do some more due diligence on the three that you narrow down and look at some of their most recent comparable projects, and speak to the folks that were involved in that project ... from the, uh ... municipality. Davidson/ But I will ... I will emphasize what Raquel alluded to, and that is that there will be resistance to disclosing that information. Hayek/ But we're not at that point yet. Davidson/ No. You're not. Hayek/ Okay, well I ... unless there's more, I think we've... we've... Markus/ Matt, could you just summarize for the staff what your expectation is and when. Hayek/ Yeah, do the things we all talked about (laughter) See you in January! Markus/ With a little more specificity than that! Davidson/ We are assuming that you're going to be busy with the budget in January. We will attempt to turn around things as quickly as possible, but uh, let us get back to you on schedule and ... and... Markus/ But, Jeff, let's ... let's be clear. If I heard correctly, you're asking for us to develop a decision matrix that we bring back to you that you can evaluate to determine if that's acceptable for you then to create the ranking that you're going to go through to select the rank of the three that you've selected. Is that what I heard? Mims/ I think so. Hayek/ Yes. Now the question becomes can we ... can we get this before January 8th, and at the January 8th meeting can we coalesce around that matrix and then make some decisions. Yapp/ And this is just what elements are included in the matrix? Or the matrix filled out? Hayek/ No we would ... we would... This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 39 Yapp/ Fill it out. Hayek/ We're not ... I don't think we're asking for staff recommendations. We're talk ... we're asking for the matrix itself. Yapp/ Okay. Hayek/ A ... a means to help us walk through these... Davidson/Filled with the information from the three developers. Hayek/ Oh, yeah, yeah, I thought (mumbled) Yapp/ Right. Markus/ So the matrix would be developed. It would be brought back to the ... the next work session in January. The Council would review that. Determine if that's what they find acceptable, the waiting, the, you know, the points that they have to choose from, and make a decision on that matrix. And if in fact they ... they get to that point with the matrix, then they have to decide are they going to actually do the rating that evening? They want to select a separate night to do that? Do they want to add something else to the matrix in the process? (several talking) We need to come back with a ... with a model for them... Davidson/ (away from mic) ... back to you first. Markus/ Yes. Davidson/ ...have you bless that, and then basically we'll populate it. Hayek/ Should we ... have an agenda item ... (several talking) event we can make a decision, we go forward, and if we can't, we just defer. Karr/ Both on the formal and the work session. Mims/ It needs to be populated when we see it. Davidson/ You want it populated when you receive it. Hayek/ Yeah, yeah. Davidson/ Okay, well, you understand that's not totally in our hands then. It depends on how quickly we can get the information. So... Hayek/ Understood! This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 40 Davidson/ Okay. Markus / And the other part of what I heard the Council say is a direction to those three to take a look at their numbers and to refine their numbers if that's within their, uh, ability to do SO. Mims/ Well and I would... Hayek/ It's an invitation. It's not ... we don't have anything to point to specifically, um, and they may very well say nothing has changed. Yapp/ It's an opportunity. Mims/ Well, and would certainly encourage if there's representatives of all of them here, I think they heard some of our discussion about things that we value, um, some by individual Councilors, I think some more by ... by maybe a majority, and you know, to ... to give some thought to those as they do, you know, refine their proposals and sharpen their pencils in terms of how that might impact our selection of our preferred developer. Hayek/ Okay. Do you need further direction, uh, you got... Mims/ Clear as mud? Council Appointments: Hayek/ Thank you (several talking) Appreciate it! Look forward to working with you! Okay, uh, let me just take up the appointments. Um ... three different... Karr/ You want Michelle back? Hayek/ I'm sorry? Karr/ Michelle back. Hayek/ Oh, yeah! Champion/ She probably went home! (laughs) Dobyns/ So, Marian, the Public Art Advisory, we're now past, one day past the three- month... Karr/ Yes! Dobyns/ So we're freed of the gender requirement. Karr/ That's correct! This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 41 Dobyns/ And so Miss Bodkin Bryk can be moved forward. Hayek/ All right. So we'll take up Public Art first. Uh, is, uh ... is there support for Tam Bryk? Champion/ Yes. Dickens/ Yes. Hayek/ Okay. Uh, Board of Appeals, I think we have a decision on that. Um ... we're past the gender requirement. That expired yesterday (several talking) Karr/ I'm sorry! Hayek/ On Board of Appeals, I believe the ... the gender requirement expired yesterday so we `re free to appoint. Karr/ Yes. Hayek/ We have John Roffinan and Ben Anderson as the applicants. Dickens/ I think if John wants to serve again, his experience is extremely valuable. Champion/ How long has he been on? Dickens/ Five terms (several talking) Champion/ Five terms? (laughs) Well usually we like to appoint somebody else but I don't know, if somebody's that durable I'm tempted to put `em back on. (laughs) Mims/ Well, and fear not the other individual's lived in the community for eight months. Champion/ Right. Mims/ I'd like to see people here a little bit longer. Champion/ Especially on that commission. Dobyns/ Yeah, I... Mims/ Okay. Dobyns/ At the risk of irritating Connie, I think longevity might be a (laughter) (several talking) Hayek/ You don't want to confront her (laughter) So ... Roffman. All right. Uh, and then on Parks and Rec. This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012. December 18, 2012 Iowa City City Council Work Session Page 42 Champion/ Oh... Hayek/ Two vacancies. Mims/ Somebody has been on it. Let me get ... down there. Karr/ We have a requirement, one female, one none so. Dobyns/ And Maggie would just reappoint her for the female. The other fellow was only ... he's only been in town for like six weeks. Karr/ I'm sorry. I can't ... I can't hear you! Hayek/ Hold on! Dobyns/ Uh... Hayek/ So Maggie Elliott for the first. Dobyns/ Maggie Elliott for the first, but for the, uh, the male appointment is that I would recommend not going with the person (several talking) Champion/ ...rehire, readvertise? Dobyns/ I ... I checked in with Mike Moran about just the, cause the other two seemed very similar, very earnest but trying to get a sense of the makeup and they have ... they don't have a small business owner, um, in the group, but they do have a lawyer, so unless there's an issue, I think there's a slight nod from my perspective to the person who's a small business owner. (several talking) It's just a small nod. (several talking) Dickens/ Alex Taylor is the (several talking) Hayek/ People supportive of Alex Taylor? Champion/ Yes! Hayek/ (several talking) Okay. So we'll do Maggie Elliott and Alex Taylor, and we'll need a motion on those when we get to that point. Okay. All right, thanks guys. We'll disband and start up at 7:00! This represents only a reasonably accurate transcription of the Iowa City City Council work session of December 18, 2012.