HomeMy WebLinkAbout2015-01-20 Resolution3d(1)
Prepared by: John Yapp, Development Services Coordinator, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5252
(SUB14-00020)
RESOLUTION NO. 15-11
RESOLUTION APPROVING FINAL PLAT OF
CARTER ESTATE, IOWA CITY, IOWA.
WHEREAS, the owner, Cardinal Development, LLC and the applicant, Carter Holding, LLC, filed with
the City Clerk the final plat of Carter Estate, Iowa City, Iowa, Johnson County, Iowa; and
WHEREAS, said subdivision is located on the following -described real estate in Iowa City, Johnson
County, Iowa, to wit:
Outlot G of Cardinal Ridge Subdivision - Part Three, to Iowa City, Iowa, in accordance with
the plat thereof recorded in Plat Book 51 at page 14 of the records of the Johnson County
Recorder's Office, excepting therefrom Auditor's Parcel No. 2006135, to Iowa City, Iowa, in
accordance with the plat thereof recorded in Plat Book 51 at page 118 of the records of the
Johnson County Recorder's Office, being a portion of the Northwest Quarter of the
Northwest Quarter of Section 7, Township 79 North, Range 6 West, of the Fifth Principal
Meridian, Iowa City, Johnson County, Iowa. Said resultant tract contains 19.10 acres
(832,166 square feet) and is subject to easements and restrictions of record.
WHEREAS, the Department of Neighborhood and Development Services and the Public Works
Department examined the proposed final plat and subdivision, and recommended approval; and
WHEREAS, a dedication has been made to the public, and the subdivision has been made with the
free consent and in accordance with the desires of the owners and proprietors; and
WHEREAS, said final plat and subdivision are found to conform with Chapter 354, Code of Iowa
(2013) and all other state and local requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
The said final plat and subdivision located on the above-described real estate be and the
same are hereby approved.
2. The City accepts the dedication of easements as provided by law.
3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed,
upon approval by the City Attorney, to execute all legal documents relating to said
subdivision, and to certify a copy of this resolution, which shall be affixed to the final plat after
passage and approval by law. The City Clerk shall record the legal documents and the plat at
the office of the County Recorder of Johnson County, Iowa at the expense of the
owner/subdivider.
Resolution No. 15-11
Page 2
Passed and approved this 20th day of January 2015.
n
MAYOR
A roved b
ATTEST: J J rte/
--
CITY'CLERK City Attorney's Office
It was moved by Mims and seconded by Throgmorton the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS:
pcd/templates/Carter Estate Anal Plat resolupon(2).doc.doc
ABSENT:
Botchway
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
To: City Council
Item: SUB14-00020 Carter Estate
GENERAL INFORMATION:
Applicant:
Contact Person:
Requested Action:
Purpose:
Location:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning
Comprehensive Plan:
File Date.-
60
ate:60 Day Limitation Period:
BACKGROUND INFORMATION:
STAFF REPORT
Prepared by: John Yapp, Development Services
Date: December 9, 2014 COP
Carter Holdings, LLC
395 Westcor Drive
Coralville, IA 52241
Phone: 545-4140
Chris Carter
ccarter@carterassociates.net
Final plat approval
A two -lot residential subdivision with one outlot
East side of Camp Cardinal Road, north of Eagle
Place
19.10 acres
Vacant; Single Family Residential (RS -5)
North: Residential; ID -RS
South: Residential; OPD -5
East: Residential; OPD-RR1
West: Residential; ID -RS
Residential; 2-8 du/acre
November 13, 2014
January 12, 2015
The applicant, Carter Holdings, LLC, has submitted a final plat for a two -lot with one outlot, 19.10 -
acre subdivision located east of Camp Cardinal Road, north of Eagle Place. The preliminary plat
was approved on November 4, 2014.
ANAI YS14-
The final plat of Carter Estate is in general compliance with the approved preliminary plat and
subdivision regulations. Legal papers and construction drawings have been approved by the City
Attorney's Office and City Engineer's Office, respectively.
2
Neighborhood open space: This subdivision is a resubdivision of Outlot G of Cardinal Ridge
Part Three. Neighborhood open space fees were paid with the Cardinal Ridge Part Three
subdivision, therefore no open space fees are required.
Infrastructure Fees: Water main extension and sanitary sewer tap -on fees were paid with the
development of Cardinal Ridge Part Three, and no additional fees are required.
STAFF RECOMMENDATION:
Staff recommends approval of SUB14-00020, the final plat of Carter Estate, a two -lot with one
outlot, 19.10 -acre residential subdivision located east of Camp Cardinal Road, north of Eagle
Place.
ATTACHMENTS: CC
.
1. Location MraK]
2. Final plat V�
Approved by:
Doug B3aifroy, irector -'—
Department of N ighborhood and DevelopmeI Services
PCD\Staff ReportsVinal plat staff report carter estate.docx
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NOTICE TO BIDDERS
WADE STREET WATER MAIN REPLACEMENT
PROJECT
Sealed proposals will be received by the City
Clerk of the City of Iowa City, Iowa, until 2:30 PM
on the 13th day of January, 2015. Sealed
proposals will be opened immediately thereafter
by the City Engineer or designee. Bids submitted
by fax machine shall not be deemed a "sealed
bid" for purposes of this Project. Proposals
received after this deadline will be returned to the
bidder unopened. Proposals will be acted upon
by the City Council at a meeting to be held in the
Emma J. Harvat Hall at 7:00 P.M. on the 20th day
of January, 2015, or at special meeting called for
that purpose.
The Project will involve the following:
Trench installation of 6" and 8" water main,
valves, and fittings; removal and replacement of
sidewalk, driveways, curb and gutter, and limited
areas of street pavement; associated erosion
control, traffic control, and other related items.
All work is to be done in strict compliance with
the plans and specifications prepared by
Watersmith Engineering, of Muscatine, Iowa,
which have heretofore been approved by the City
Council, and are on file for public examination in
the Office of the City Clerk.
Each proposal shall be completed on a form
furnished by the City and must be accompanied
in a sealed envelope, separate from the one
containing the proposal, by a bid bond executed
by a corporation authorized to contract as a
surety in the State of Iowa, in the sum of 10% of
the bid. The bid security shall be made payable to
the TREASURER OF THE CITY OF IOWA CITY,
IOWA, and shall be forfeited to the City of Iowa
City in the event the successful bidder fails to
enter into a contract within ten (10) calendar days
of the City Council's award of the contract and
post bond satisfactory to the City ensuring the
faithful performance of the contract and mainte-
nance of said Project, if required, pursuant to the
provisions of this notice and the other contract
documents. Bid bonds of the lowest two or more
bidders may be retained for a period of not to
exceed fifteen (15) calendar days following award
of the contract, or until rejection is made. Other
bid bonds will be returned after the canvass and
tabulation of bids is completed and reported to
the City Council.
The successful bidder will be required to furnish
a bond in an amount equal to one hundred
percent (100°/x) of the contract price, said bond to
be issued by a responsible surety approved by
the City, and shall guarantee the prompt payment
of all materials and labor, and also protect and
save harmless the City from all claims and
damages of any kind caused directly or indirectly
by the operation of the contract, and shall also
AF -1
guarantee the maintenance of the improvement
for a period of one (1) year(s) from and after its
completion and formal acceptance by the City
Council.
The following limitations shall apply to this
Project:
Specified Completion Date (all work except
seeding): July 31, 2015
Liquidated Damages (all work except
seeding): $500.00 per day
Specified Completion Date (seeding only):
September 15, 2015.
Liquidated Damages: $500.00 per day
The plans, specifications and proposed contract
documents may be examined at the office of the
City Clerk. Copies of said plans and specifi-
cations and form of proposal blanks may be
secured at the Engineering Division, City of Iowa
City, 410 E Washington Street, Iowa City, IA
52240, 319-356-5140, by bona fide bidders.
A $25 refundable fee is required for each set of
plans and specifications provided to bidders or
other interested persons. The fee shall be in the
form of a check, made payable to City of Iowa
City. A refund will be issued if re -useable plans
and specifications are returned to the City of Iowa
City within 14 days of the project award date.
Prospective bidders are advised that the City of
Iowa City desires to employ minority contractors
and subcontractors on City projects. A listing of
minority contractors can be obtained from the
Iowa Department of Inspections and Appeals at
(515) 281-5796 and the Iowa Department of
Transportation Contracts Office at (515) 239-
1422.
Bidders shall list on the Form of Proposal the
names of persons, firms, companies or other
parties with whom the bidder intends to subcon-
tract. This list shall include the type of work and
approximate subcontract amount(s).
The Contractor awarded the contract shall
submit a list on the Form of Agreement of the
proposed subcontractors, together with quanti-
ties, unit prices and extended dollar amounts.
By virtue of statutory authority, preference must
be given to products and provisions grown and
coal produced within the State of Iowa, and to
Iowa domestic labor, to the extent lawfully re-
quired under Iowa Statutes. The Iowa reciprocal
resident bidder preference law applies to this
Project.
The City reserves the right to reject any or all
proposals, and also reserves the right to waive
technicalities and irregularities.
Published upon order of the City Council of Iowa
City, Iowa.
MARIAN K. KARR, CITY CLERK
AF -2
Prepared by: Jason Havel, City Engineer, 410 E. Washington St., Iowa City, IA 52240 (319)356-5410
RESOLUTION NO.
RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO
SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR
CONSTRUCTION PF—T+FE WADE STREET WATER MAIN REPLACEMENT
PROJECT.
WHEREAS,
$ for
WHEREAS, funds for this
account #W3217.
NOW, THEREFORE, BE IT
CITY, IOWA, THAT:
of , has submitted the lowest responsible bid of
i of the above-named project; and
1. The contract for the co
are available in the Wade Street Water Main Replacement
SOLVED BY THE CITY
performance and payment
statements.
fiction of the a
act to the a
nd, insurance c
IL OF THE CITY OF IOWA
amed project is hereby awarded to
i that awardee secure adequate
:es, and contract compliance program
2. The Mayor is hereby authori d to sign and the City Clerk to attest the contract for
construction of the above -nam d proje , subject to the condition that awardee secure
adequate performance and pay ent b d, insurance certificates, and contract compliance
program statements.
3. The City Engineer is authorized to ecute change orders as they may become necessary
in the construction of the above- m d project.
Passed and approved this
ATTEST:
CITY CLERK
It was moved by
adopted, and upon roll
AYES/
of
MAYOR
and seconded
I there were:
NAYS:
20
Approved by
City Attorney's Office
the Resolution be
AB ENT:
Botchway
— Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
Prepared by: Melissa Clow, Special Projects Administrator, 410 E. Washington St., Iowa City, IA 52240; (319) 356-5413
RESOLUTION NO. 15-12
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST
THE IOWA DEPARTMENT OF TRANSPORTATION FUNDING AND CONSTRUCTION
ADMINISTRATION AGREEMENT [2013-16-284] FOR THE DUBUQUE STREET PEDESTRIAN
BRIDGE OVER 1-80 AND RECREATIONAL TRAIL PROJECT.
WHEREAS, the City of Iowa City desires to construct a pedestrian bridge over 180 along Dubuque Street and
a recreational trail connecting the pedestrian bridge to the existing Iowa River Trail; and
WHEREAS, the City of Iowa City, Iowa has negotiated a funding agreement with the Iowa Department
of Transportation that includes designation of the Iowa Department of Transportation as the
construction administrator for this project; and
WHEREAS, the City Council deems it is in the public interest to enter into said agreement with the
Iowa Department of Transportation for the construction of the Dubuque Street Pedestrian Bridge over
1-80 and Recreational Trail Project [IM -080-6(320)244--13-52j.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
It is in the public interest to enter into the above-mentioned agreement, and the agreement is
hereby approved as to form and content.
2. The Mayor is authorized to sign and the City Clerk to attest the agreement between the City of
Iowa City and the Iowa Department of Transportation in duplicate.
Passed and approved this 20th day of January _'2015.
ATTEST:L _f 1/
CITY CLERK
It was moved by -Mims
adopted, and upon roll call there were:
AYES:
MAYOR
App oved by
City Attorney's Office
/2-JfS
and seconded by Throgmorton the Resolution be
NAYS:
ABSENT:
Botchway
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
September 2012
IOWA DEPARTMENT OF TRANSPORTATION
Agreement for a Improvement Project
Recipient: Iowa City, Iowa
County: Johnson
Project Number: IM -080-6(320)244--13-52
Agreement Number: 2013-16-284
Staff Action Number:
CFDA No. and Title: 20.205 Highway Planning and Construction
This agreement is entered into by and between the city of Iowa City, Iowa (hereinafter referred to as
Recipient) and the Iowa Department of Transportation (hereinafter referred to as the Department) in
accordance with Iowa Code Sections 28E.12 and 306A.7 or 307.44.
Witnesseth; that
Whereas, the Recipient in joint cooperation with the Department, proposes to establish or make
improvements adjacent to Interstate 80 in Johnson County; and
Whereas, the Recipient has received Federal funding through the Surface Transportation Program (STP)
which was continued by the Moving Ahead for Progress in the 216' Century (MAP -21), Public Law 112-
141, now codified at Section 133(b) of Title 23, United States Code (U.S.C.); which are hereinafter
referred to as STP funds. STP funds are available for construction, reconstruction, rehabilitation,
resurfacing, restoration and operational or safety improvement projects on Federal -aid highways, bridges
on any public road, and several other types of projects, as specified in 23 U.S.C. 133(b). Federal -aid
highways include all Federal Functional Classifications, except for rural minor collectors or local roads;
and
Whereas, the Recipient has received Federal funding through the Interstate Maintenance Discretionary
Program (IMD) Program, which was continued by the Moving Ahead for Progress in the 216' Century
(MAP -21), Public Law 112-141, now codified at Section 133(b) of Title 23, United States Code (U.S.C.);
which are hereinafter referred to as IMD funds; and
Whereas, the Recipient submitted an application to the DOT for funding through the State Recreational
Trails (SRT) fund under Iowa Code Chapter 465B (2011), and the application was approved by
Transportation Commission Order No. PPM -2013-18 on October 9, 2012, hereinafter referred to as SRT
funds.
Now, therefore, in accordance with the terms of this agreement, applicable statutes, and administrative
rules, the Department agrees to provide funding named above to the Recipient for the improvement
project described below. The parties further agree as follows:
1. Project Information
a. All notices required under this agreement shall be made in writing to the Department's and/or the
Recipient's contact person. The Department's contact person shall be the District 6 Local Systems
Engineer. The Recipient's contact person shall be the City Engineer or their representative.
b. The Recipient shall be responsible for the development and completion of the following described
improvement project:
2013-16-284_lowaCity Page 1 of 10
September 2012
Iowa River Trail - Phase 8 of 8. This project will complete the 12 -mile Iowa River Trail
through the Iowa City metro area and includes 1,1 miles of concrete trail along Dubuque
Street from the Iowa River (at Butler Bridge and Waterworks Prairie Park) to Foster Road
and one 540 -foot pedestrian bridge over Interstate 80,
2. Funding Sources
a. The Recipient shall receive reimbursement for costs of authorized and approved eligible project
activities from STP funds. The portion of the project costs reimbursed with STP funds shall be limited
to a maximum of either 80 percent of eligible costs (other than those reimbursed with other Federal
funds) or the amount stipulated in the Metropolitan Planning Organization of Johnson County's
current Transportation Improvement Program (TIP) and approved in the current Statewide
Transportation Improvement Program (STIP), whichever is less. Eligible project activities will be
limited to the following: construction, engineering, inspection, and right-of-way acquisition. Under
certain circumstances, eligible activities may also include utility relocation or railroad work that is
required for construction of the project.
b. The Recipient shall receive reimbursement for costs of authorized and approved eligible project
activities for SRT funds. The portion of the project costs reimbursed with SRT funds shall be limited
to a maximum of either 75 percent of eligible costs (other than those reimbursed with Federal funds)
or $441,000, whichever is less.. Eligible project activities will be limited to the following' construction,
engineering, inspection, and right-of-way acquisition.
c. The Recipient shall receive reimbursement for costs of authorized and approved eligible project
activities from IMD funds. The portion of the project costs reimbursed with IMD funds shall be limited
to a maximum of either 90 percent of eligible costs (other than those reimbursed with other Federal
funds) or $475,000, whichever is less. Eligible project activities will be limited to the following:
construction, engineering, inspection, and right-of-way acquisition, within the 'touchdown points' of
the pedestrian overpass bridge over 1-80.
d. The Recipient shall comply with the Federal -aid provisions contained in Exhibit 1 which is attached
hereto and by this reference is incorporated into this agreement
e. The Recipient shall be responsible for all other project costs which are not reimbursed with or paid for
by the funds specified above.
f. The funding sources identified are as follows:
Federal Interstate Maintenance Discretionary Funds (IMD) $475,000
Federal Surface Transportation Program Funds (STP)
$881,000
State Recreational Trails Fund (SRT)
$441,000
Local Contribution
$303,000
Totals
$2,100,000
3. Environmental, Right -of -Way, Permits, and Other Requirements
a. The Recipient shall be responsible for obtaining any necessary permits from the Department, such as
the Right to Occupy and/or Perform Work Within the Right -of -Way, Permit of Access, Utility
Accommodation, Right to Install and Maintain Traffic Control Devices, or other construction permits
required for the project prior to the start of construction. Neither the approval of funding nor the
signing of this agreement shall be construed as approval of any required permit from the Department.
b. The Recipient shall obtain all project permits and / or approvals, when necessary, from the Iowa
Department of Cultural Affairs (State Historical Society of Iowa; State Historic Preservation Officer),
2013-1e-2e4_1owaaty 11-24-14 Paye 2 of 10
September 2012
Iowa Department of Natural Resources, U.S. Coast Guard, U.S. Army Corps of Engineers, or other
State or Federal agencies as may be required.
c. If right-of-way is required for the project, the Recipient shall acquire the necessary right-of-way in
accordance with 761 Iowa Administrative Code Chapter 111, Real Property Acquisition and
Relocation Assistance. The Recipient shall submit preliminary right-of-way plans to the Department's
Office of Right-of-way for review and approval prior to the commencement of any acquisition.
d. Additionally, the portions right-of-way acquired for improvements to the Interstate Road System shall
be acquired in the name of the State of Iowa. The Recipient will properly close the sale of each parcel
and shall furnish the Department copies of all completed contracts, deeds, conveyances and
condemnation documents (for State right of way).
e. If there is a railroad crossing within or near the project work area, the Recipient shall obtain the
necessary approvals or agreements from the railroad to allow the proposed work to be completed on
or around the railroad crossing and / or right-of-way.
f. If the project requires utility relocations, subject to the approval of and without expense to the
Department, the Recipient agrees to perform or cause to be performed all relocations, alterations,
adjustments or removals of existing utility facilities, including but not limited to power, telephone lines,
fiber optics lines, natural gas pipelines, water mains and hydrants, curb boxes, utility accesses, storm
water intakes, sanitary sewers, and related poles, installations and appurtenances, whether privately
or publicly owned, and all parking meters, traffic signals and other facilities or obstructions which are
located within the limits of an established street or alley and which will interfere with construction of
the project and the clear zone. All utility relocations shall be accomplished in accordance with the
Department's Utility Accommodation Policy, as set forth in 761 Iowa Administrative Code, Chapter
115.
g. If the Recipient has completed a Flood Insurance Study (FIS) for an area which is affected by the
proposed primary highway project and the FIS is modified, amended or revised in an area affected by
the project after the date of this agreement, the Recipient shall promptly provide notice of the
modification, amendment or revision to the Department. If the Recipient does not have a detailed FIS
for an area which is affected by the proposed primary highway project and the Recipient does adopt
an FIS in an area affected by the project after the date of this agreement, the Recipient shall promptly
provide notice of the FIS to the Department.
4. Project Design
a. The Recipient shall be responsible for the design of all proposed improvements.
b. The project plans, specifications and engineer's cost estimate shall be prepared and certified by a
Professional Engineer licensed to practice in the State of Iowa.
c. All proposed highway or street improvements shall be designed using good engineering judgment
and the American Association of State Highway and Transportation Officials (AASHTO) "Policy on
Geometric Design of Highways and Streets'', (latest edition).
d. The project design shall comply with the "Manual on Uniform Traffic Control Devices for Streets and
Highways", by the Federal Highway Administration, as adopted by Department, as per 761 Iowa
Administrative Code, Chapter 130.
e. The project shall be designed and constructed using the Department's Standard Specifications for
Highway and Bridge Construction (most current edition). Prior to their use in the bidding documents,
any Special Provisions or other modifications to the Standard Specifications shall be approved by the
Department.
2013-16-284_lowaCity Pago 3 of 10
September 2012
5. Bid Letting
a. The Recipient shall submit the plans, specifications, estimate, and all other contract documents for
review by the Department. The project may be submitted for letting in phases, in the order of
preference as determined by the Recipient. All plan submittals shall be in accordance with the Major
Project schedule, as shown on the Instructional Memorandum to Local Public Agencies 3,005, Project
Development Submittal Dates and Information, published by the Department's Office of Local
Systems.
b. The project will be let by the Department in accordance with its normal letting procedures. As a
condition for the Department to let the project, the Recipient agrees that the Recipient has the
financial resources to proceed with the project if bids submitted are 110% of the project cost estimate
or less. If the Recipient is a city, the Recipient shall comply with the public hearing requirements of
the Iowa Code section 26.12.
c. The Department shall be the contracting authority for the project.
6. Construction and Maintenance
a. The Department shall be responsible for construction administration including daily inspection of the
project (with Recipient/Recipient consultant assistance as requested) and the compilation of a daily
inspection report for the project.
b. The work on this project shall be in accordance with the approved plans and specifications. Any
substantial modification of these plans and specifications must be approved by the Recipient prior to
the modification being put into effect. The Recipient will be responsible for reviewing, approving and
signing any change orders, or any other modifications of the contract documents during construction.
c. Interstate highway through traffic will be maintained in accordance with the project plans.
d. Structures over or under a primary road extension will be maintained structurally sound by the
Department, including repairs to floors and railing and painting. For structures serving roadways
which are not on the primary road extension system, the cleaning and removal of snow, debris and
foreign objects from city side street traffic lanes, sidewalks or walkways within the project limits
including pedestrian overpasses or underpasses and those associated with bridges both overpasses
and underpasses will be the responsibility of the Recipient.
e. Traffic control devices, signing, or pavement markings installed within the limits of this project shall
conform to the "Manual on Uniform Traffic Control Devices for Streets and highways'' as per 761
Iowa Administrative Code, Chapter 130. The safety of the general public shall be assured through the
use of proper protective measures and devices such as fences, barricades, signs, flood lighting, and
warning lights as necessary.
f. Subject to the provisions hereof, the Recipient in accordance with 761 Iowa Administrative Code
sections 150.3(1)c and 150.4(2) will remove or cause to be removed all encroachments or
obstructions in the existing primary highway right of way. The Recipient will also prevent the erection
and/or placement of any structure or obstruction on said right of way or any additional right of way
which is acquired for this project including but not limited to private signs, buildings, pumps, and
parking areas.
g. With the exception of service connections no new or future utility occupancy of project right-of-way,
nor any future relocations of or alterations to existing utilities within said right-cf-way (except service
connections), will be permitted or undertaken by the Recipient without the prior written approval of the
Department. All work will be performed in accordance with the Utility Accommodation Policy and
other applicable requirements of the Department.
2013-16-264_lowaclty 11-2414 Page 4ef 10
September 2012
h. Future maintenance of the proposed improvements shall be in accordance with 761 Iowa
Administrative Code, Chapter 150.
i. Upon completion of the project, no changes in the physical features thereof will be undertaken or
permitted without prior written approval of the Department.
7. Payments and Reimbursements
a. The Department will make initial payments to the contractor from the Primary Road Fund. Upon
completion of the project, the LPA shall reimburse the Department for its share of the project costs.
Reimbursement will be provided to the Department either by a warrant or voucher from the LPA, or by
crediting the Primary Road Fund from the funding sources provided to the LPA by this agreement.
B. General Provisions
a. In accordance with Iowa Code Chapter 216, the Recipient shall not discriminate against any person
on the basis of race, color, creed, age, sex, sexual orientation, gender identity, national origin,
religion, pregnancy, or disability.
b. The Recipient agrees to indemnify, defend and hold the Department harmless from any action or
liability arising out of the design, construction, maintenance, placement of traffic control devices,
inspection, or use of this project. This agreement to indemnify, defend and hold harmless applies to
all aspects of the Department's application review and approval process, plan and construction
reviews, and funding participation.
c. If any part of this agreement is found to be void and unenforceable then the remaining provisions of
this agreement shall remain in effect.
d. This agreement is not assignable without the prior written consent of the Department.
e. It is the intent of both parties that no third party beneficiaries be created by this agreement.
f. In case of dispute concerning the terms of this agreement, the parties shall submit the matter to
arbitration pursuant to Iowa Code Chapter 679A. Either party has the right to submit the matter to
arbitration after ten (10) days notice to the other party of their intent to seek arbitration. The written
notice must include a precise statement of the disputed question. The Department and the Recipient
agree to be bound by the decision of the appointed arbitrator. Neither party may seek any remedy
with the State or Federal courts absent exhaustion of the provisions of this paragraph for arbitration.
g. This agreement shall be executed and delivered in two or more copies, each of which so executed
and delivered shall be deemed to be an original and shall constitute but one and the same
instrument.
h. This agreement, as set forth in the paragraphs above and the referenced exhibits, constitutes the
entire agreement between the Department and the Recipient concerning this project. Representations
made before the signing of this agreement are not binding, and neither party has relied upon
conflicting representations in entering into this agreement. Any change or alteration to the terns of
this agreement must be made in the form of an addendum to this agreement. Said addendum shall
become effective only upon written approval of the Department and Recipient.
2013-16-284_lowacity Page 5 of 10
September 2012
In witness whereof, each of the parties hereto has executed this agreement as of the date shown
opposite its signature below.
City of Iowa City, Iowa:
By: ; Date January 20th 20 15 _.
Title: Mayor
I, Marian K. Karr , certify that I am the Clerk of the City, and that
Matthew J. Hayek , who signed said Agreement for and on behalf of the City was duly
authorized to execute the same by virtue of a formal Resolution duly passed and adopted by the City,
on the 20thday of January 20th 2015
Signed )4Uzfe,-z . 6e tIDate January 20th 201 .
City Clerk of Iowa City, Iowa
Iowa Department of Transpo tion:
By: ,rr t- !—i ! rr -- Date �,�� i 20 1'=.
James R. Schnoebelen
District 6 Engineer
2013-16-284_IowaCity Page 6 of 10
EXHIBIT 1
General Agreement Provisions for use of Federal Highway Funds on Primary Highways
As a condition of receiving Federal Highway funds, the Recipient shall comply with the following
additional provisions:
1. The Recipient shall be responsible for including the project in the appropriate Regional Planning
Affiliation (RPA) or Metropolitan Planning Organization (MPO) Transportation Improvement Program
(TIP). The Recipient shall also ensure that the appropriate RPA or MPO, through their TIP submittal
to the Department, includes the project in the Statewide Transportation Improvement Program (STIP)
If the project is not included in the appropriate fiscal year of the STIP, Federal funds cannot be
authorized.
2. Before beginning any work for which Federal funding reimbursement will be requested, the Recipient
shall contact the Department to obtain the procedures necessary to secure FHWA authorization. The
Recipient shall submit a written request for FHWA authorization to the Department. After reviewing
the Recipient's request, the Department will forward the request to the FHWA for authorization and
obligation of Federal funds. The Department will notify the Recipient when FHWA authorization is
obtained. The cost of work performed prior to FHWA authorization will not be reimbursed with Federal
funds.
3. The Recipient shall take the necessary actions to comply with applicable State and Federal laws and
regulations. To assist the Recipient, the Department has provided guidance in the Federal -aid
Project Development Guide (Guide) and the Instructional Memorandums to Local Public Agencies
(I.i that are referenced by the Guide. Both are available on-line at:
http://www.iowadot.gov/local—systems/
publications/im/lpa_ims.htm. The Recipient shall follow the applicable procedures and guidelines
contained in the Guide and I.M.s in effect at the time project activities are conducted.
4. In accordance with Title VI of the Civil Rights Act of 1964 and associated subsequent
nondiscrimination laws, regulations, and executive orders, the Recipient shall not discriminate against
any person on the basis of race, color, national origin, sex, age, or disability. In accordance with Iowa
Code Chapter 216, the Recipient shall not discriminate against any person on the basis of race, color,
creed, age, sex, sexual orientation, gender identity, national origin, religion, pregnancy, or disability.
The Recipient agrees to comply with the requirements outlined in I.M. 1.070, Title VI and
Nondiscrimination Requirements which includes the requirement to provide a copy of the Recipient's
Title VI Plan or Agreement and Standard DOT Title VI Assurances to the Department.
5. The Recipient shall comply with the requirements of Title II of the Americans with Disabilities Act of
1990 (ADA), Section 504 of the Rehabilitation Act of 1973 (Section 504), and the associated Federal
regulations that implement these laws, and the guidance provided in I.M. 1.080, ADA Requirements.
When pedestrian facilities are constructed, reconstructed, or altered, the Recipient shall make such
facilities compliant with the ADA and Section 504.
6. To the extent allowable by law, the Recipient agrees to indemnify, defend, and hold the Department
harmless from any action or liability arising out of the design, construction, maintenance, placement
of traffic control devices, inspection, or use of this project. This agreement to indemnify, defend, and
hold harmless applies to all aspects of the Department's application review and approval process,
plan and construction reviews, and funding participation.
7. As required by 49 CFR 18.26, the Recipient is responsible for obtaining audits in accordance with the
Single Audit Act Amendments of 1996 (31 U.S. C. 7501-7507) and and Subpart F of 2 CFR 200,
Subpart F of 2 CFR 200 stipulates that non -Federal entities expending $750,000 or more in Federal
awards in a year shall have a single or program -specific audit conducted for that year in accordance
with the provision of that part. Auditee responsibilities are addressed in Subpart F of 2 CFR 200. The
2013-16-284_lowaCity Page 7 of 10
Federal funds provided by this agreement shall be reported on the appropriate Schedule of
Expenditures of Federal Awards (SEFA) using the Catalog of Federal Domestic Assistance (CFDA)
number and title as shown on the first page of this agreement. If the Recipient will pay initial project
costs and request reimbursement from the Department, the Recipient shall report this project on its
SEFA. If the Department will pay initial project costs and then credit those accounts from which initial
costs were paid, the Department will report this project on its SEFA. In this case, the Recipient shall
not report this project on its SEFA
8. The Recipient shall supply the Department with all information by the Federal Funding Accountability
and Transparency act of 2006 and 2 CFR Part 170.
9. The Recipient shall comply with the following Disadvantaged Business Enterprise (DBE)
requirements
1) The Recipient shall not discriminate on the basis of race, color, national origin, or sex in the
award and performance of any Department -assisted contract or in the administration of its DBE
program or the requirements of 49 CFR Part 26. The Recipient shall take all necessary and
reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and
administration of Department -assisted contracts.
2) The Recipient shall comply with the requirements of I.M. 3.710, DBE Guidelines.
3) The Department's DBE program, as required by 49 CFR Part 26 and as approved by the Federal
Highway Administration (FHWA), is incorporated by reference in this agreement. Implementation
of this program is a legal obligation and failure to carry out its terms shall be treated as a violation
of this agreement. Upon notification to the Recipient of its failure to carry out its approved
program, the Department may impose sanctions as provided for under Part 26 and may, in
appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program
Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 of seq.).
10. Termination of funds. Notwithstanding anything in this agreement to the contrary, and subject to the
limitations set forth below, the Department shall have the right to terminate this agreement without
penalty and without any advance notice as a result of any of the following: 1) The Federal
government, legislature or governor fail in the sole opinion of the Department to appropriate funds
sufficient to allow the Department to either meet its obligations under this agreement or to operate as
required and to fulfill its obligations under this agreement; or 2) If funds are de -appropriated,
reduced, not allocated, or receipt of funds is delayed, or if any funds or revenues needed by the
Department to make any payment hereunder are insufficient or unavailable for any other reason as
determined by the Department in its sole discretion; or 3) If the Department's authorization to
conduct its business or engage in activities or operations related to the subject matter of this
agreement is withdrawn or materially altered or modified. The Department shall provide the Recipient
with written notice of termination pursuant to this section.
11. Certain utility relocation, alteration, adjustment, or removal costs may be eligible for Federal funding
reimbursement in accordance with the FHWA rules applicable to the type of utility involved and Iowa
Code Chapter 306A. If the Recipient desires Federal reimbursement of these costs, it shall submit a
request for FHWA Authorization prior to beginning any utility relocation work, in accordance with the
procedures outlined in I.M. 3.650, Federal -aid Participation in Utility Relocations.
12. If Federal funding is requested for in-house services, the Recipient shall follow the procedure outlined
in I.M. 3.310, Federal -aid Participation in In -House Services.
13. If the Recipient desires to claim indirect costs under Federal awards, the Recipient shall prepare an
indirect cost rate proposal and related documentation in accordance with the requirements of 2 CFR
225. Before incurring costs for in-house services, such an indirect cost rate proposal shall be certified
by the FHWA or the Federal agency providing the largest amount of Federal funds to the Recipient.
2013-16-284_lowaCity Page 8 of 10
14. If the Recipient requests Federal funds for consultant services, the Recipient and the Consultant shall
prepare a contract for consultant services in accordance with 23CFRPart 172. These regulations
require a qualifications -based selection process. The Recipient shall follow the procedures for
selecting and using consultants outlined in I.M. 3.305, Federal -aid Participation in Consultant Costs.
15, If Preliminary Engineering (PE) work is Federally funded, and if right-of-way acquisition for or actual
construction of the road is not started by the close of the tenth fiscal year following the fiscal year in
which the Federal funds were authorized, the Recipient shall repay to the Department an amount
equal to the amount of Federal funds made available for such engineering. PE includes work that is
part of the development of the PS&E for a construction project. This includes environmental studies
and documents, preliminary design, and final design up through and including the preparation of
bidding documents. PE does not include planning or other activities that are not intended to lead to a
construction project. Examples include planning, conceptual, or feasibility studies.
16. The Recipient shall take the appropriate actions and prepare the necessary documents to fulfill the
FHWA requirements for project environmental studies including historical/cultural reviews and
location approval. The Recipient shall complete any mitigation agreed upon in the FHWA approval
document. These procedures are set forth in I.M. 3.105, Concept Statement Instructions; 3.110,
Environmental Data Sheet Instructions; 3.112, FHWA Environmental Concurrence Process; and
3.114, Cultural Resource Regulations.
17. If farmland is to be acquired, whether for use as project right-of-way or permanent easement, the
Recipient shall follow the procedures in I.M. 3.120, Farmland Protection Policy Act Guidelines.
18. The Recipient shall obtain project permits and approvals, when necessary, from the Iowa Department
of Cultural Affairs (State Historical Society of Iowa; State Historic Preservation Officer), Iowa
Department of Natural Resources, U.S. Coast Guard, U.S. Army Corps of Engineers, the
Department, or other agencies as required. The Recipient shall follow the procedures in I.M. 3.130,
404 Permit Process; 3.140, Storm Water Permits; 3.150, Highway Improvements in the Vicinity of
Airports or Heliports; and 3.160, Asbestos Inspection, Removal and Notification Requirements.
19. In all contracts entered into by the Recipient, and all subcontracts, in connection with this project that
exceed $100,000, the Recipient shall comply with the requirements of Section 114 of the Clean Air
Act and Section 308 of the Federal Water Pollution Control Act, and all their regulations and
guidelines. In such contracts, the Recipient shall stipulate that any facility to be utilized in
performance of or to benefit from this agreement is not listed on the Environmental Protection Agency
(EPA) List of Violating Facilities or is under consideration to be listed.
20. If the Recipient is responsible for acquisition of the project right-of-way, it shall acquire the project
right-of-way, whether lease, easement, or fee title, and shall provide relocation assistance benefits
and payments in accordance with the procedures set forth in I.M. 3.605, Right -of -Way Acquisition,
and the Department's Office of Right of Way Local Public Agency Manual. The Recipient shall contact
the Department for assistance, as necessary, to ensure compliance with the required procedures,
even if no Federal funds are used for right-of-way activities. The Recipient shall obtain environmental
concurrence before acquiring any needed right-of-way. With prior approval, hardship and protective
buying is possible. If the Recipient requests Federal funding for right-of-way acquisition, the Recipient
shall also obtain FHWA authorization before purchasing any needed right-of-way.
21. If the project right-of-way is Federally funded and if the actual construction is not undertaken by the
close of the twentieth fiscal year following the fiscal year in which the Federal funds were authorized,
the Recipient shall repay the amount of Federal funds reimbursed for right-of-way costs to the
Department.
22. If Federal funding is requested for construction performed by employees of the Recipient, the
Recipient will follow the procedures outlined in I.M. 3.810, Federal -aid Construction by Local Agency
Forces.
2013-16-284_lowaCity Page 9 of 10
23. The non -Federal share of the project costs may include cash or third party non-cash contributions to
the project. If the Recipient desires to use a third party non-cash contribution as credit toward the
non -Federal share, the Recipient shall submit a request to the Department for review in accordance
with I.M. 3.050, In -Kind Contributions. The Department will have sole authority to determine the value
of the Recipient's non-cash contribution for the purposes of this agreement.
24. The Recipient shall maintain all books, documents, papers, accounting records, reports, and other
evidence pertaining to costs incurred for the project. The Recipient shall also make these materials
available at all reasonable times for inspection by the Department, FHWA, or any authorized
representatives of the Federal Government. Copies of these materials shall be furnished by the
Recipient if requested. Such documents shall be retained for at least 3 years from the date of FHWA
approval of the final closure document. Upon receipt of FHWA approval of the final closure document,
the Department will notify the Recipient of the record retention date.
25. The total funds collected by the Recipient for this project shall not exceed the total project costs. The
total funds collected shall include any Federal or State funds received, and any special assessments
made by the Recipient (exclusive of any associated interest or penalties), pursuant to Iowa Code
Chapter 384 (cities) or Chapter 311 (counties). The total project costs shall include all costs that can
be directly attributed to the project. In the event that the total funds collected by the Recipient does
exceed the total project costs, the Recipient shall either:
1) in the case of special assessments, refund to the assessed property owners the excess special
assessments collected (including interest and penalties associated with the amount of the
excess), or
2) refund to the Department all funds collected in excess of the total project costs (including interest
and penalties associated with the amount of the excess) within 60 days of the receipt of any
excess funds. In return, the Department will either credit reimbursement billings to the FHWA or
credit the appropriate State fund account in the amount of refunds received from the Recipient.
2013-16-284_lowaCity Page 10 of 10
CITY OF IOWA CITY 3d(3)
,,III b�
MEMORANDUM
DATE: January 9, 2015
TO: Tom Markus, City Manager
FROM: Jason Havel, City Engineer
RE: Funding Agreement between the Iowa Department of Transportation
(DOT) and the City of Iowa City for the Dubuque Street / 1-80 Pedestrian
Bridge and Recreational Trail Project, IM -080-6(320)244--13-52
Introduction:
This funding agreement is between the Iowa Department of Transportation (DOT) and the City
of Iowa City for the Dubuque Street Pedestrian Bridge over 1-80 and Recreational Trail Project.
The agreement details the responsibilities of the Iowa DOT as the construction administrator during
construction of the project, the City's responsibilities as the Local Public Agency (LPA) and the
funding sources.
History/Background:
This project will construct a new recreational trail along Dubuque Street from Foster Road to the
Butler Bridge, including an approximately 270 -foot long pedestrian bridge over 1-80. The pedestrian
bridge will be similar to the existing pedestrian bridge at North Dodge Street & 1-80. The existing
Iowa River Trail along Dubuque Street, south of Foster Road is the most heavily used trail in the
metro area, with the most recent trail counts showing 765 users per day at its intersection with Taft
Speedway. This missing link in the region's trail system will complete the Iowa River Trail. It will
provide convenience for the 15% of Johnson County's population that commute to work on bicycles
and for the recreational users throughout the community.
Discussion:
The 1-80 Pedestrian Bridge project is currently scheduled for the February 17, 2015 Iowa D.O.T.
letting. The Federal Highway Administration (FHWA) requires that the Iowa DOT be the construction
administrator due to the work being performed in the Interstate 80 right-of-way. As noted in the
agreement, the City will supply Construction services for the project when requested.
Financial Impact:
The estimated construction cost of the project is $1,728,000.00. The funding sources are as
follows: $475,000 in Federal Interstate Maintenance Discretionary (IMD) Funds, $881,000 in
Surface Transportation Program (STP) Funds and $441,000 in State Recreational Trails (SRT)
Funds. This funding will provide up to $1,797,000 toward construction costs. General
Obligation Bonds will be used for local participation if construction costs exceed the funding
provided.
Recommendation:
Staff recommends adopting the resolution to approve the Funding Agreement between the Iowa
DOT and the City of Iowa City for the Dubuque Street / 1-80 Pedestrian Bridge and Recreational
Trail Project.
Cc: Ron Knoche
Melissa Clow
Prepared by: Kent Ralston, Transportation Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
RESOLUTION NO
15-13
RESOLUTION SUPPORTING AND APPROVING THE REVITALIZE IOWA'S
SOUND ECONOMY (RISE) GRANT APPLICATION FOR THE CONSTRUCTION
OF NORTHGATE DRIVE AND AN INTERSECTING EAST -WEST STREET
WHEREAS, the City / developer proposes to extend Northgate Drive from its current
terminus north to the City of Iowa City Corporate Limit, and to construct an intersecting east -
west street; and
WHEREAS, the proposed road construction improvements will allow for the provision of
approximately 10 commercial lots to be developed; and
WHEREAS, the City's adopted Arterial Street Plan identifies a future arterial street extension
intersecting with the Northgate Drive extension and planned improvements will
accommodate the future planned arterial street extension; and
WHEREAS, the City's adopted Comprehensive Plan recommends that the City attract
additional commercial development adjacent to Interstate 80 and the new Northgate Drive
extension will enable development on land that will be accessible to the Iowa Interstate and
Highway network; and
WHEREAS, the City recognizes a need for job creation and retention that is dependent upon
the construction of Northgate Drive; and
WHEREAS, construction the Northgate Drive extension and an intersecting east -west street
will facilitate commercial development consistent with the City's plan to grow the tax base
and is consistent with the intent of the RISE program to fund projects which grow the Iowa
tax base and facilitate job creation; and
WHEREAS, the City will be responsible for adequately maintaining said roadway
improvements that are not within the Iowa Department of Transportation right-of-way; and
WHEREAS, the estimated RISE eligible cost of the construction of Northgate Drive and the
intersecting east -west street is $836,183.65 and the City of Iowa City is applying for a RISE
grant in the amount of $418,091.82 (50%); and
WHEREAS, the developer is committed to funding all remaining roadway construction costs;
and
WHEREAS, The City of Iowa City, Iowa ("City") endorses the construction of the proposed
Northgate Drive extension and intersecting east -west street for dedicated public use,
pending approval of a subdivision for said streets and lots.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The City of Iowa City hereby officially endorses and directs City staff to submit a
RISE grant application to Iowa DOT for eligible construction expenses for Northgate
Drive and an intersecting east -west street.
2. The City Manager or designee is hereby authorized to execute all necessary
agreements and documents for said grant with the Iowa Department of Transportation.
Passed and approved this 20th day of January 120 15
ATTEST:
CITY RK
A r�gved by
CITY ATTORNEY'S OFFICE
Resolution No.
Page 3
15-13
It was moved by Mims and seconded by Throgmorton the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Botchway
x
Dickens
x
Dobyns
x
Hayek
x
Mims
x
Payne
x
Throgmorton
3d(5)
Prepared by: Kent Ralston, Transportation Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
RESOLUTION NO.
RESOLUTION SUPPORTI
SOUND ECONOMY (RISq
OF NORTHGATE DRIVE I
WHEREAS, the City / developer
terminus north to the City of Iowa C
G AND APPROVING THE � REVITALIZE IOWA'S
GRANT APPLICATION FOR THE CONSTRUCTION
to extend Northgate Drive from its current
:e Limit; and /
WHEREAS, the proposed road constKuction improvement, will allow for the provision of
approximately 10 commercial lots to be developed; and /
6
WHEREAS, the City's adopted Arterial reet Plan idenf les a future arterial street extension
intersecting with the Northgate Dri a extension and planned improvements will
accommodate the future planned arterial treet exten on; and
WHEREAS, the City's adoptedCompr ensive Ian recommends that the City attract
additional commercial development adjac nt to I terstate 80 and the new Northgate Drive
extension will enable development on land that ill be accessible to the Iowa Interstate and
Highway network; and
WHEREAS, the City recognizes a need for
the construction of Northgate Drive; and
WHEREAS, construction the Nor
development consistent with the City'
intent of the RISE program to fund
creation; and
creation and retention that is dependent upon
rive extension will facilitate commercial
grow the tax base and is consistent with the
Jch grow the Iowa tax base and facilitate job
responsible fir adequately maintaining said roadway
WHEREAS, the City will be
improvements that are not within the Iowa Depa ent of Transportation right-of-way; and
WHEREAS, the estimated RISE eligible cost f the construction of Northgate Drive is
$836,183.65 and the City,.'.
Iowa City is appl ing for a RISE grant in the amount of
$418,091.82 (50%); and
WHEREAS, the developer is committed to funding I remaining roadway construction costs;
and
WHEREAS, The City of Iowa City, Iowa ("City") endorses the construction of the proposed
Northgate Drive extension for dedicated public use heading north from its current terminus
accessed from State Highway 1, north of Interstate 80.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The City of Iowa City hereby officially endorses and directs City staff to submit a
RISE grant application to Iowa DOT for eligible construction expenses for Northgate
Drive.
2. The City Manager or designee is hereby authorized to execute all necessary
agreements and documents for said grant with the Iowa Department of Transportation.
Passed a
ATTEST:
S
01-20-15
3e(2)
Prepared by: Daniel Scott, Project Engineer, 410 E. Washington St., Iowa City, IA 52240, (319)356-5144
RESOLUTION NO. 15-14
RESOLUTION SETTING A PUBLIC HEARING ON FEBRUARY 9, 2015, ON
PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST
FOR THE CONSTRUCTION OF THE 2015 LANDFILL GAS FLARE
REPLACEMENT PROJECT, DIRECTING CITY CLERK TO PUBLISH NOTICE
OF SAID HEARING, AND DIRECTING THE CITY ENGINEER TO PLACE SAID
PLANS ON FILE FOR PUBLIC INSPECTION.
WHEREAS,funds for this project are available in the Landfill account # L3324.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA:
That a public hearing on the plans, specifications, form of contract, and estimate of cost
for the construction of the above-mentioned project is to be held on the 9th day of
February, 2015, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if
said meeting is cancelled, at the next meeting of the City Council thereafter as posted by
the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing
for the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. That the copy of the plans, specifications, form of contract, and estimate of cost for the
construction of the above-named project is hereby ordered placed on file by the City
Engineer in the office of the City Clerk for public inspection.
Passed and approved this 20tH day of January -120 15
M
►1 ' � •
Approved by
ATTEST: G✓+ Jr��,/'��.
CITY RK City Attorney's Office
pweng\masters\setph. doc
1/11
Resolution No. 15-14
Page 2
It was moved by Mims and seconded by Throgmorton the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x
Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
r
=W!"®-4*' CITY OF IOWA CITY
MEMORANDUM
DATE: January 12, 2015
TO: Tom Markus, City Manager
FROM: Jason Havel, City Engineer -Yz,4
RE: Landfill Gas Flare Replacement Project
January 20, February 9 and March 9.
Introduction:
The City of Iowa City owns and operates the Iowa City Landfill and Recycling Center. It
operates a gas collection system in accordance with state and federal air quality
regulations. The collected landfill gas is destroyed by an enclosed ground flare.
History/Background:
This flare was installed with the gas collection system in 2000 and has operated
continuously the past 15 years except for periodic maintenance or power failure shut
downs. Due to its age and continuous use, it is in need of replacement.
Discussion of Solution:
The Landfill Gas Flare Replacement Project has been designed and is ready to be bid
for construction. The replacement flare will be the same enclosed type as the existing
one but with new improved technology for better operating efficiency. As many of the
existing flare components as possible will be salvaged for scrap metal.
Financial Impact:
The total estimated cost of construction is $482,500. Funding will be provided by landfill
revenues.
Recommendation:
Staff recommends proceeding with the following schedule for this project.
January 20 - Set Public Hearing
February 9 - Hold Public Hearing
March 9 - Award Project
cc: Ron Knoche, Public Works Director
Daniel Scott, Project Engineer
01-20-15
3e(3)
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 15-15
RESOLUTION SETTING PUBLIC HEARING FOR FEBRUARY 9, 2015, ON A
PROPOSAL TO CONVEY A SINGLE FAMILY HOME LOCATED AT 936
EAST BLOOMINGTON STREET.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City purchases rental units located in designated neighborhoods surrounding
the University of Iowa, rehabilitates them, and then sells them to income -eligible buyers; and
WHEREAS, the City purchased and rehabilitated a single family home located at 936 East
Bloomington Street, Iowa City; and
WHEREAS, the City has received an offer to purchase 936 East Bloomington Street for the
principal sum of $185,000 (the amount the City paid to acquire the home), plus the "carrying
costs", which are all costs incurred by the City to acquire the home, maintain it and sell it,
including abstracting and recording fees, interest on the loan to purchase the home, mowing
and snow removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and
rehabilitate the home; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase
of the home.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
The City Council does hereby declare its intent to convey a single family home located at
936 East Bloomington Street, Iowa City, Iowa, also known as the East 47.3 feet of the
South 150 feet of Out Lot 7, Iowa City, Iowa, for the sum of $185,000, plus the "carrying
costs".
2. A public hearing on said proposal should be and is hereby set for February 9, 2015, at
7:00 p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to
cause notice of said public hearing to be published as provided by law.
Resolution No. 15-15
Page 2
It was moved by Mims
adopted, and upon roll call there were:
and seconded by Throgmorton the Resolution be
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns,
x Hayek
x Mims
x Payne
x Throgmorton
Passed and approved this 20th day of January , 2015.
ATTEST:1G�
CITY -CLERK
Approved by
City Attorney's Office
01��
6
Prepared by: Melissa Clow, Special Projects Administrator, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5413
RESOLUTION NO. 15-16
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF COW
TRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE
DUBUQUE STREET PEDESTRIAN BRIDGE OVER 1-80 AND RECREATIONAL
TRAIL PROJECT [IM -080-6(320)244--13-52], ESTABLISHING AMOUNT OF BID
SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO
PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR
RECEIPT OF BIDS.
WHEREAS, this project will be bid by the Iowa Department of Transportation (DOT); and
WHEREAS, bids will be accepted on February 17, 2015 at 10:00 a.m. by the DOT, Office of
Contracts in Ames, IA; and
WHEREAS, notice of public hearing on the plans, specifications, and estimate of cost for the
above-named project was published as required by law, and the hearing thereon held; and
WHEREAS, funds for this project are available in the Dubuque Street/180 Pedestrian Bridge
account # S3930.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
1. The plans, specifications, and estimate of cost for the above-named project are hereby
approved.
2. The amount of bid security to accompany each bid for the construction of the above-named
project shall be in the form and amount prescribed in the bidding proposal.
3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and not
more than 45 days before the date for filing the bids, for the receipt of bids by the DOT for the
construction of the above-named project in a newspaper published at least once weekly and
having a general circulation in the city.
4. Bids for the above-named project are to be received by the Iowa Department of
Transportation (DOT), Office of Contracts, 800 Lincoln Way, Ames, IA 50010, (515) 239-1414
before 10:00 a.m. on the 17th day of February, 2015. Thereafter, the bids will be opened and
announced by the DOT, and thereupon referred to the City Council of the City of Iowa City, Iowa,
for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City
Hall, Iowa City, Iowa, at 7:00 p.m. on the 23rd day of February, 2015.
Passed and approved this 20th day of January -120 15
ATTEST: Dla"�'�)
CITY RK
49L_xa 'A \
MAYOR
Appr9ved by
,�
City Attorney's Office ��
Resolution No. 15-16
Page 2
It was moved by Payne and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Botchway
x
Dickens
x
Dobyns
x
Hayek
x
Mims
x
Payne
x
Throgmorton
-01-20-15
7
Prepared by: Dave Panos, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5145
RESOLUTION NO. 15-17
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT
AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE SYCAMORE
STREET - CITY LIMITS TO SOUTH GILBERT STREET, PHASE 1 PROJECT,
ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID,
DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME
AND PLACE FOR RECEIPT OF BIDS.
WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate
of cost for the above-named project was published as required by law, and the hearing thereon
held.
WHEREAS, funds for this project are available in the Sycamore Street- City limits to S.
Gilbert Street account # S3931.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY,
IOWA THAT:
The plans, specifications, form of contract, and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and
not more than 45 days before the date for filing the bids, for the receipt of bids for the
construction of the above-named project in a newspaper published at least once weekly
and having a general circulation in the city.
4. Sealed bids for the above-named project are to be received by the City of Iowa City,
Iowa, at the office of the City Clerk at the City Hall, before 11:00 am on the 13th day of
February, 2015. At that time, the bids will be opened by the City Engineer or his
designee, and thereupon refered to the City Council of the City of Iowa City, Iowa, for
action upon said bids at its next meeting, to be held at the Emma J. Harvat Hall, City
Hall, Iowa City, Iowa, at 7:00 p.m. on the 23rd day of February, 2015, or at a later date
and/or time as determined by the Director of Public Works or designee.
Passed and approved this 20th day of January , 2015.
42t 4
Mayor 40&
Approved b�,
ATTEST:S�
City Jerk City Attorney's Office
Resolution No. 15-17
Page 2
It was moved by Dobyns and seconded by Mims the
Resolution be adopted, and upon roll call there were:
AYES: MAYS: ABSENT:
Botchway
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
CITY OF IOWA CITY
MEMORANDUM
DATE: January 12, 2015
TO: Thomas M. Markus, City Manager
FROM: Lucy Joseph, NDS Code Enforcement Specialist
Tracy Hightshoe, Neighborhood Services Coordinator
RE: January 201h City Council meeting agenda item: sale of UniverCity Neighborhood
Partnership home
Introduction
On January 20th, City Council will hold a public hearing and vote on a resolution authorizing the
conveyance of 1128 Muscatine Ave. as part of the UniverCity Neighborhood Partnership Program. Once
this home is sold, the program will have sold 39 homes.
1128 Muscatine Ave.
Under the UniverCity Neighborhood Partnership, the City proposes to sell 1128 Muscatine Ave. for
$144,500 plus carrying costs of $10,250. "Carrying costs" are all the costs incurred by the City to acquire,
maintain and sell the home, including abstracting and recording fees, interest on the loan to purchase
the home, mowing and snow removal, utilities, and real estate taxes. The carrying costs for this home
also include work completed by the City for grading and sidewalk improvements. The home was built in
1919 and offers 1,398 square feet of finished living space, including two bedrooms and one bathroom.
Unlike prior UniverCity sales where the City completes up to $50,000 in rehabilitation upgrades and then
sells the home, the interested buyer offered to purchase the home with a rehabilitation allowance. The
City completed a home evaluation and estimated that the City would invest an additional $30,000 in
home upgrades that mostly relate to the aesthetics of the home's interior, not life and safety
improvements except for a radon mitigation system. The installation of a radon mitigation system will
be required as part of the rehabilitation agreement. The type of proposed improvements to be
reimbursed (new kitchen cabinets, vanity replacements, new flooring, etc.) shall be similar to the City's
GRIP program for owner -occupied housing rehabilitation and must be reasonable. As the proposed
buyer had prior experience with contracting home improvements, staff is recommending that the home
be sold to this buyer with a rehabilitation agreement that allows the homeowner to make City approved
upgrades limited to no more than $30,000. The improvements must be completed within the next 12
months and must be inspected by City staff before reimbursement.
In exchange for the rehabilitation assistance, the homebuyer must consent to a mortgage that requires
that the home be owner -occupied for 20 years as is required for all UniverCity homes. No
downpayment assistance will be provided.
Statement of Fiscal Impact
The assessed value of 1128 Muscatine Ave. at the time of purchase was $127,380 and the sale price is
approximately $154,750. There will be no impact on the General Fund for ongoing operating expenses.
Recommendation
This home is located on a street where there are many rentals and after the renovations it will become
an asset to the neighborhood and community. Staff recommends approval of the resolution to
01-20-15
January 12, 2015
Page 2
authorize the conveyance of 1128 Muscatine Ave. as part of the UniverCity Neighborhood Partnership
program.
1128 Muscatine Ave. — before renovations
I
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 522 9) -503Q—
RESOLUTION NO.
RESOLUTION AUTHORIZING CONVEYANCE OF A SINGLE AMILY HOME
LOCATED AT 1128 MUSCATINE AVENUE.
WHEREAS, the UniverCit Neighborhood Partnership Program is joint effort between the
University of Iowa and the Pity to encourage home ownership and r investment in designated
neighborhoods surrounding he University of Iowa; and
WHEREAS, the City purchasks rental units located in designatecyneighborhoods surrounding
the University of Iowa, rehabilitAtes them, and then sells them to i come -eligible buyers; and
WHEREAS, the City purchasedand rehabilitated a single/Family home located at 1128
Muscatine Avenue, Iowa City; and
WHEREAS, the City has received an o er to purchase 11
sum of $154,750, which is the combin ion of the amou
($144,500), plus the "carrying costs" of10,250, whic
acquire the home, maintain it and sell it, i luding ab rz
the loan to purchase the home, mowing andow re va
to repair and rehabilitate the home; and
2 Muscatine Avenue for the principal
pft the City paid to acquire the home
are all costs incurred by the City to
cting and recording fees, interest on
I, utilities, real estate taxes, and costs
WHEREAS, this sale would provide affordable sing in a designated area surrounding the
University of Iowa; and
WHEREAS, on January 6, 2015, the City Co cil adop d a Resolution proposing to convey its
interest in 1128 Muscatine Avenue, author ng public n 'ce of the proposed conveyance, and
setting the date and time for the public he ing; and
WHEREAS, following the public ho
that the conveyance is in the public
NOW, THEREFORE, BE IT
CITY, IOWA, that:
on the proposed coXveyance, the City Council finds
VED BY THE CITY COUNCINOF THE CITY OF IOWA
1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to
execute a warranty deed conveying the City's interest in 1128 Muscatine Avenue, legally
described as Lot C in Schuppert & Koudelka's Sub -division of Lots 6 and 7, Block 2, Clark &
Borland's Addition to Iowa City, Iowa.
2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any
actions necessary to consummate the conveyance required by law.
I
Resolution No.
Page 2
It was moved by and seconded by
adopted, and upon roll call there were:
AYES:
Passed and approved this
Approved by
NAYS: ABSENT:
City Attorney's Office ,
the Resolution be
Botchway
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
day of , 2015.
AAEST:
R
CITY CLERK
CD
E
co
�a3
ti,1
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 15-18
RESOLUTION AUTHORIZING CONVEYANCE OF A SINGLE FAMILY HOME
LOCATED AT 1128 MUSCATINE AVENUE.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City purchases rental units located in designated neighborhoods surrounding
the University of Iowa, rehabilitates them, and then sells them to income -eligible buyers; and
WHEREAS, the City purchased and rehabilitated a single family home located at 1128
Muscatine Avenue, Iowa City; and
WHEREAS, the City has received an offer to purchase 1128 Muscatine Avenue for the principal
sum of $154,750, which is the combination of the amount the City paid to acquire the home
($144,500), plus the "carrying costs" of $10,250, which are all costs incurred by the City to
acquire the home, maintain it and sell it, including abstracting and recording fees, interest on
the loan to purchase the home, mowing and snow removal, utilities, real estate taxes, and costs
to repair and rehabilitate the home; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, on January 6, 2015, the City Council adopted a Resolution proposing to convey its
interest in 1128 Muscatine Avenue, authorizing public notice of the proposed conveyance, and
setting the date and time for the public hearing; and
WHEREAS, following the public hearing on the proposed conveyance, the City Council finds
that the conveyance is in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to
execute a warranty deed conveying the City's interest in 1128 Muscatine Avenue, legally
described as Lot C in Schuppert & Koudelka's Sub -division of Lots 6 and 7, Block 2, Clark &
Borland's Addition to Iowa City, Iowa.
2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any
actions necessary to consummate the conveyance required by law.
Resolution No. 15-18
Page 2
It was moved by Mims and seconded by Botchway the Resolution be
adopted, and upon roll call there were:
AYES:
Passed and approved this
NAYS: ABSENT:
Botchway
Dickens
Dobyns
Hayek
Mims
Payne
Throgmorton
20th day of January , 2015.
11GV, to]�
Approved by
City Attorney's Office
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Iowa City, State of Iowa.
Date of Meeting: January 20, 2015.
Time of Meeting: o'clock
� ' � —R --.M.
Place of Meeting: Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City,
Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body
will meet at the date, time and place above set out. The tentative agenda for the meeting is as
follows:
Not to Exceed $16,000,000 Lease Purchase Agreement.
Public Hearing
Resolution Instituting Proceedings to Take Additional Action
Such additional matters as are set forth on the additional k page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa,
and the local rules of the governmental body.
City Jerk, City of Iowa City, State of Iowa
jo
4 . "�1k
January 20, 2015
The City Council of the City of Iowa City, State of Iowa, met in regular session, in,
Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00 o'clock P.M., on
the above date. There were present Mayor Hayek, in the chair, and the following named Council
Members:
Botchway, Dickens, Dobyns, Hayek, Mims, Payne, Throgmorton
Absent: None
-1-
The Mayor announced that this was the time and place for the public hearing and meeting
on the matter of the authorization of a Municipal Parking System Revenue Lease Purchase
Agreement in the principal amount of not to exceed $16,000,000 for the lease purchase
acquisition of the Harrison Street Parking Facility and that notice of the proposed action by the
Council to institute proceedings for the authorization of said Lease Purchase Agreement, had
been published pursuant to the provisions of Section 364.4(f) of the Code of Iowa, as amended.
The Mayor then asked the Clerk whether any written objections had been filed by any
city resident or property owner to the proposal. The Clerk advised the Mayor and the City
Council that no written objections had been filed. The Mayor then called for oral objections
to the proposal and none were made. Whereupon, the Mayor declared the time for receiving
oral and written objections to be closed.
(Attach here a summary of objections received or made, if any)
-2-
The City Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Mims introduced and delivered to the
Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING
PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A
MUNICIPAL PARKING SYSTEM REVENUE LEASE PURCHASE AGREEMENT IN THE
PRINCIPAL AMOUNT OF NOT TO EXCEED $16,000,000 FOR THE LEASE PURCHASE
ACQUISITION OF THE HARRISON STREET PARKING FACILITY", and moved:
❑x that the Resolution be adopted.
❑ to ADJOURN and defer action on the Resolution and the proposal to
institute proceedings to the meeting to be held at o'clock
.M. on the day of , 2015, at this
place.
Council Member Payne seconded the motion. The roll was called
and the vote was,
AYES: Botchway, Dickens, Dobyns, Hayek,
Mims, Payne, Throgmorton
NAYS: None
Whereupon, the Mayor declared the measure duly adopted.
Resolution No. 15-19
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF A
MUNICIPAL PARKING SYSTEM REVENUE LEASE
PURCHASE AGREEMENT IN THE PRINCIPAL AMOUNT OF
NOT TO EXCEED $16,000,000 FOR THE LEASE PURCHASE
ACQUISITION OF THE HARRISON STREET PARKING
FACILITY
WHEREAS, pursuant to notice published as required by law, this Council has held a
public meeting and hearing upon the proposal to institute proceedings for the authorization of a
Municipal Parking System Revenue Lease Purchase Agreement in the principal amount of not to
exceed $16,000,000, for the lease purchase acquisition of the Harrison Street Parking Facility,
and has considered the extent of objections received from residents or property owners as to the
proposal and, accordingly the following action is now considered to be in the best interests of the
City and residents thereof:
-3-
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, IOWA:
Section 1. That this Council does hereby institute proceedings and take additional action
for the authorization of a Municipal Parking System Revenue Lease Purchase Agreement in the
principal amount of not to exceed $16,000,000 to evidence the obligation thereof for the
foregoing purpose.
Section 2. The Mayor and Clerk are authorized and directed to proceed on behalf of the
City with the negotiation of terms of a Municipal Parking System Revenue Lease Purchase
Agreement, evidencing the City's obligations to a principal amount not to exceed $16,000,000
and otherwise to take all action necessary to permit the execution of a Municipal Parking System
Revenue Lease Purchase Agreement on a basis favorable to the City.
PASSED AND APPROVED this 20 day of January, 2015.
ATTEST:
City rk
Mayor
10
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the corporate records of the City
showing proceedings of the City Council, and the same is a true and complete copy of the action
taken by the Council with respect to the matter at the meeting held on the date indicated in the
attachment, which proceedings remain in full force and effect, and have not been amended or
rescinded in any way; that meeting and all action thereat was duly and publicly held in
accordance with a notice of public hearing and tentative agenda, a copy of which was timely
served on each member of the Council and posted on a bulletin board or other prominent place
easily accessible to the public and clearly designated for that purpose at the principal office of
the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local
rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance
notice to the public and media at least twenty-four hours prior to the commencement of the
meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the City hereto affixed this 20th day of
January , 2015.
��2- "'
1 M4 � C, '�,) 7'� / - J City, City of Iowa City, State of Iowa
(SEAL)
01073686-1\10714-118
CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
CITY OF IOWA CITY ��
MEMORANDUM 10
Previous sent item #7 - January 6 agenda
Date: December 31, 2014
To: Tom Markus, City Manager
From: Jeff Davidson, Economic Development Coordinator
f`
Re: Sabin Townhomes development agreement
On the City Council's January 6 meeting agenda they will be asked to consider a resolution
approving a development agreement with A&M Development II, LLC for the construction of 28
townhouses on Dubuque Street in Riverfront Crossings. The townhouses will provide a liner
fagade for a municipal parking facility we have planned for the site adjacent to the new
MidWestOne Bank office building. The 28 townhouses include 3 units which will be sold to The
Housing Fellowship or another affordable housing provider for families with incomes at or below
80% of Average Median Income for Johnson County. If a sale of the units is not possible, it will
be the developer's responsibility to rent the units to income qualified persons.
Following is the staff report to the City Council Economic Development Committee which
explains the project in more detail. There is one minor change since the December 8 EDC
meeting. The report states a $85,926 TIF increment will be used to rebate the financing gap of
$976,277 over 11.4 years. We realized after the EDC meeting that we had not factored in that
the 3 affordable units will be tax exempt. With this provision factored in, there is a $78,851 TIF
increment which will take 12.4 years of rebates to fill the financial gap.
Staff will be available at the January 6 City Council meeting to answer any questions.
Cc: Wendy Ford
f
�= CITY OF IOWA CITY
0 N-1,01 It
MEMORANDUM
To: City Council Economic Development Committee C(a I
From: Jeff Davidson, Economic Development Administrator
Date: December 1, 2014
Re: Consider a request for financial assistance from A&M Development II, LLC for the
Sabin Townhome project
Mike Hahn, representing A&M Development II, LLC, is proposing a project consisting of 28
townhouses on Dubuque Street and Harrison Street in Riverfront Crossings. The townhouses
are part of a larger master planned project consisting of the 6 story MidwestOne Bank office
building currently under construction at the corner of Clinton and Dubuque (One Place at
Riverfront Crossings), and a 610 space City of Iowa City parking facility. The townhouses will
provide the east and south fagade of the parking facility.
The 28 townhouses will be constructed as part of a condominium regime that includes the City
parking facility. To enable the parking facility component to be built by the Developer as part of
a single project the Iowa Code allows the City to enter into a lease/purchase agreement with the
Developer. Staff anticipates this Agreement will be on the Council agenda in December/January
along with the Development Agreement for TIF assistance if approved by EDC. The parking
facility will be tax exempt. The residential townhouse units will be individually leased or owned.
One Place at RFC will have a physical skywalk connection to the parking facility but is a
separate property not included in the townhouse/parking facility condo regime.
The townhouse/parking project will be constructed on the site of the former Sabin Elementary
School, which is currently owned by the University of Iowa. There is an existing contractual
arrangement between MidwestOne Bank and the University of Iowa which requires the
University to demolish the Sabin Building when One Place at RFC is completed. A mitigation
plan approved by the State Historic Preservation Office stipulates building artifacts which will be
salvaged from the structure prior to demo. Following demolition, the property will be transferred
to A&M Development II and the townhouse/parking facility project will commence. A&M plans to
begin construction on August 15, 2015, complete the parking facility by August 1, 2016 and
complete the townhouse units by Fall of 2016.
The estimated cost of constructing the 28 townhouses is $6,986,549. The developer is
requesting Tax Increment Financing rebates of $976,277 to fill a financial gap on the project.
The City's financial analyst at the National Development Council has substantiated the financial
gap on the project, summarized in the attached report. The developer's formal request for
financial assistance is also attached.
Background
The townhouse project consists of 28 two bedroom townhomes of 1,135 SF (14 upper units) or
1,428 SF (14 lower units). Three units will be sold to the Iowa City Housing Fellowship for their
affordable rental housing portfolio, and marketed to households meeting county median income
guidelines. The 3 units are likely to be rented to households not exceeding 80% of county
median income, which in Johnson County is $57,250 for a family of 3.
The stacked two story townhouse model will introduce a new housing product to Riverfront
Crossings. All of the units will have direct access via a backdoor to the City parking facility, and
the City will make covered parking available to each unit at the market rate monthly fee. Each
townhouse will have a street level entrance; there are no common hallways. Each unit will have
outdoor space on every level in the form of a balcony or garden terrace.
The National Development Council has reviewed the revenue and expense parameters of the
proposed project and substantiated a $976,277 financial gap. The project financial parameters
scrutinized in gap analysis are summarized in the attached NDC report. Bank financing of $3.3
million and developer equity of $2.1 million will provide nearly 80% of the project's financing,
with TIF projected at 12% of the total.
TIF rebates preferred
The 2014 City of Iowa City Economic Development Policy states that for development projects
seeking financial assistance, rebates, as opposed to cash up front, shall be highly preferable.
The Sabin property has been in public ownership and has not generated any property tax
revenue for at least 97 years. An annual TIF increment of $85,926 has been calculated for the
townhomes project, which assumes the maximum allowable rollback for all of the units. The
developer has agreed to an 11.4 year TIF rebate structure that will fund the $976,277 gap
identified on the project. After this point the full property taxes will accrue to the taxing entities.
The City Council Adopted Strategic Plan
The Sabin Townhomes project aligns with three of the City Council's stated goals of being more
inclusive and sustainable by building healthy neighborhoods, creating a strong urban core and
fostering economic development.
Healthy Neighborhoods
The proposed townhouses are part of the Riverfront Crossings Central Crossings Subdistrict.
This subdistrict is intended to introduce higher density housing options that will link the
downtown and south downtown areas with the lower density portions of Riverfront Crossings
including the Park District. Retail uses that support the residences in the area will be
incorporated into mixed use buildings. Ralston Creek will be opened up and provide open
space and a linkage to the riverfront park. Walkability will be promoted to a high degree.
Creating a Strong Urban Core
The project site is adjacent to downtown and walkable to east side employment and
entertainment destinations. It is within a mile of the west side employment center with many
transit options available. The 3 affordable housing units will help ensure residential options
within the urban core for moderate income households.
Economic Development Activities
The project will create annual property tax generation estimated at $122,000 in year one. This
compares favorably to the existing property tax generation of zero.
Economic Development Policy
The 2014 Economic Development Policies state: It shall be the policy of the City of Iowa City to
use the City Council Strategic Plan as the basis for its economic development activities.
Inherent in the plan is to attract new development including residential, commercial and
industrial uses to grow the tax base.
The 2014 Economic Development Policies establish minimum standards required of developers
to be eligible for public financing. Developers must achieve at least some of the standards. The
elements of this project meeting those standards include:
• The project must have high quality architectural and site design.
The proposed project is designed by Neumann Monson Architects of Iowa City. It is an
innovative design which fully integrates the adjacent parking facility with no common
hallway elements.
• Projects must be energy efficient and offer sustainability features above and beyond the
required building code.
The townhomes will include high efficiency heating and cooling units for each condo unit,
as well as low flow plumbing fixtures. The exterior cladding is a recycled by product of
the rice milling industry. The adjacent parking structure will include photovoltaic units
that will defray a portion of the electrical load of the facility.
• If residential, projects must either provide a certain number of units for low/mod income
persons or contribute to a fund for that purpose.
The project will sell 3 of the units to the Iowa City Housing Fellowship to be made
available to families at 80% of median income or below.
• Redevelop an underutilized or blighted property.
The property currently contains an old elementary school building, the majority of which
is vacant. A contractual obligation not related to this project will result in the site being
made vacant.
• Developer equity must meet or exceed the financial request from the City.
Developer equity is $2.2 million, over twice the financial request of the City. Developer
equity and bank financing represents nearly 80% of total project costs.
• Achieve public purposes as detailed in the Comprehensive Plan, Urban Renewal Area
Plan, and City Council Strategic Plan.
The project is consistent with the Riverfront Crossings Master Plan and Form Based
Code, the City -University Urban Renewal Area Plan, and the City Council Strategic Plan.
Summary
A&M Development II LLC has requested City financial assistance in the amount of $976,277 to
build a 28 unit townhouse structure which will be integrated into a 610 space City parking
facility. It is part of a larger master planned development which includes the One Place at
Riverfront Crossings office building. The total estimated construction expense of the entire
development exceeds $30 million.
The proposed project is consistent with the Riverfront Crossings Master Plan. The financial gap
of $976,277 has been substantiated by the National Development Council and would be
structured into a TIF rebate scheduled for 11.4 years. This represents 12% of the estimated
project cost. At the end of the rebate period the full annual property tax amount estimated at
$137,000 will accrue to the taxing entities. The property currently generates zero in property tax
revenue.
The proposed TIF expense is approximately the same as the estimated $1 million expense to
construct a fagade on the parking facility if the townhouse project was not providing the parking
ramp fagade.
Recommendation
Staff recommends approval of the City's financial participation in the form of TIF rebates, not to
exceed $976,277.
A&M Development 11, LLC
1310 Highland Court, Iowa City, to 52240
Phone: (319) 338-1125
City Council Economic Development Committee
c/o .teff Davidson, Economic Development Administrator
410 E. Washington Street, Iowa City, IA 52240
Phone: (319) 356-5232
Dear Jeff,
1 have enclosed Information regarding the Sabin Townhome project for submission to the City Council
Economic Development Committee. The cost of this project, at a minimum, is $6,986,549, which we
are committed to spending.
1 would be pleased to answer any questions from you or the committee. We appreciate your
consideration of financial assistance for this project.
Sincerely,
A&M Development 11, LLC
Mike Hahn
11/21/2014
SITE: The project site is located on the block northwest of the Prentiss Street and Dubuque Street
intersection, and is located on the property to the west of the city alley on that block. The site houses
the old Sabin Elementary School and MidWestOne's Home Mortgage Center. The property is current
owned by the University of Iowa.
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PROJECT
The Sabin Townhomes are an integral component of the first significant project in the newly rezoned
Central Crossings subdistrict. The three part development will include a six -story office building, City -
owned parking structure, and townhomes.
MidWestOne Bank is currently constructing the office building, known as One Place at Riverfront
Crossings, as the first piece of this development. This building will be the first office building in
downtown Iowa City since Plaza Center One was built during Urban Renewal in the 1970's. The
office building will house MidWestOne's Home Mortgage Center, a drive-thru bank, and their
banking operations functions. The top two office floors will be left available as leasable tenant space
to bring future business to the district.
The office building and combined parking structure/townhome development will be linked by a
skybridge which will span the alley between the two properties. The parking structure will be owned
and maintained by the City of Iowa City and provide 610 parking spaces for public parking,
townhome tenants, and office building employees.
The townhome project consists of (28) 2 -bedroom townhomes, which were determined to be a
desirable size for Iowa City's market demands. Three of these units will be sold to the city of Iowa City
and set aside as affordable housing properties. The residential units will serve as liner buildings on
the east and south edges of the parking structure. All townhomes will have direct access to the
parking garage.
Uses and Net Square Foot approximations:
Lower Level Condo Units (14 total): 1,135 SF
Upper Level Condo Units (14 total): 1,428 SF
Parking Garage
Parking Spaces (610 total): 191,848 SF
Maintenance Area: 1,884 SF
This application is for the townhome portion of the development only.
DEVELOPER
A&M Development II is jointly owned between Allen Morelock and Mike Hahn. Their team has
developed multiple projects in the Iowa City/Coralville/North Liberty market.
A&M has recent experience with projects of this type where all components of the building are
privately -owned under a shared condominium agreement and portions of the building are owned and
operated by a public entity.
One example of this model is Plaza on Fifth in Coralville, Iowa. The project consists of a 6 -story
building with underground parking, first level commercial space, a performing arts center, two levels
of Class A office space, and three levels of upscale condominiums. The city of Coralville owns and
maintains the performing arts center component as well as the parking component.
Mike Hahn and Allen Morelock also own McComas-Lacina Construction who has served as the
General Contractor for multiple City projects, as well as similar private developments in the area.
McComas-Lacina will also serve as the General Contractor for the Sabin Townhomes and the
adjacent parking structure. McComas-Lacina has built several concrete parking structures similar to
this one for both the City of Iowa City, and the University of Iowa.
The Sabin Townhomes are targeting a market of young professionals in the area looking to be closer
to downtown and their places of employment. Three condo units will be set aside for the City as
affordable housing property. All units will be up for rent or sale, letting the market determine what the
current needs are.
CONCEPTUAL RENDERINGS
Looking East down Harrison Street
Looking Southwest at Dubuque and Harrison intersection
TOWNHOME FLOOR PLANS
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PROJECT SUMMARY
Located in the Central Crossings subdistrict of Riverfront Crossings, this project consists of 28 -unit of
townhomes and a 610 space parking structure. The addition of this project will serve as a model for
future development in the district, and provide a facelift to reactivate the street level activity in the
aging neighborhood.
The townhomes wrap the parking structure on the east and south sides, and are defined as Liner
Buildings within the district's form -based zoning code. Each residential townhome unit will have direct
access to the parking structure. All units also have their own front door to street level, eliminating the
need for shared/maintained spaces. Of the 28 residential units, two will be designated as workforce
housing to meet the need and desire of the growing downtown working population to live near the city
center. Every unit will have outdoor space on each floor, with the street level units opening onto a
garden terrace at the sidewalk.
The parking ramp enters and exits along Harrison Street to the north, and has two stair/elevator
towers for pedestrians, one at the northeast corner and the other at the southeast corner. The street
level parking deck will feature car charging stations to meet a growing demand from electric vehicles.
A skybridge link will connect the parking structure to a six -story office building to the west.
SUMMARY OF BENEFITS TO IOWA CITY:
Increased Property Tax Base: The vast majority of the development site is currently owned by the
University of Iowa and generates very little property taxes. The net taxable value of the property is
estimated at $2,894,090 for the first year of full assessment, which will increase over time. The
project will require little added infrastructure costs to the city, providing a significant gain to the net tax
base.
Beautification to Neighborhood: The surrounding neighborhood to the east and south of the property
has, over the years, become populated by multi -bedroom apartments to house a transient student
population. The quality of design and construction of these additions to the neighborhood has
created an atmosphere for college residents and minimized the family friendly atmosphere the
neighborhood once had. The addition of the two-bedroom townhome units will bring vibrant
residential design to the neighborhood, and also re -introduce a diverse and permanent resident
population who have the desire to live close to the downtown and campus where they work and play.
Permanent Downtown Residents: As is the trend across the country, there is a growing desire to live
near the Urban core of American cities. This project will provide a new quality housing option for
those in the workforce income bracket and above. Equipped with convenient parking, and located
within a five minute walk of downtown, this project will help to pull activity of the Downtown District
into the Riverfront Crossings area.
Parking for a growing Riverfront Crossings District: Over the past few years, the City of Iowa City has
been assessing various locations for a new parking structure to accommodate the continuous need for
parking near the city center. The project's associated ramp will serve residents, the area workforce,
and future visitors to growing commercial and cultural amenities in the area.
Introduction of a new housing type: The stacked two-story townhome model is new to Iowa City's
housing market. Eliminating the need for shared spaces such as long apartment -like corridors
requiring maintenance from a property manager, each unit will have their own front door to the street,
as well as outdoor space on every level in the form of a balcony or garden terrace at street level.
NECESSARY FINANCIAL ASSISTANCE:
The project cost of the Sabin Townhome project is, at a minimum, $6,986,549. The National
Development Council, as consultant to the City of Iowa City, has had full access to all costs
associated with this project. Gap financing in the amount of $976,277 is required. The independent
gap analysis of this project concludes that these funds are necessary and warranted for this project.
Construction Cost:
Land $924,704
Construction $5,245,828
Design Fee $371,510
Construction Insurance and Fees $444,507
Total Project Cost $6,986,549
Revenue Stream:
Sale of (3) Affordable Housing Units
$570,000
Bank Loan
$3,320,185
Developer's Equity
$2,120,087
Financial Gap
$976,277
Total $6,986,549
9
MEMORANDUM
Date: December 2, 2014
To: Jeff Davidson, Economic Development Administrator, City of Iowa City
From: Tom Jackson, Director, National Development Council
CC: Wendy Ford, Economic Development Coordinator, City of Iowa City
RE: Harrison Street Townhouse Development, 509 South Dubuque Street
At your request, NDC has reviewed the materials submitted by A&M Development (hereinafter, "the
Developer") in support of a request for City gap financing for the development of twenty-eight (28)
residential townhouse units at the site of a former elementary school at 509 South Dubuque Street.
While analyzed here as a separate project, the townhouses are part of the larger development of the
site, including a commercial office building to be owned and occupied by MidWestOne Bank and a City
parking garage.
NDC has met with the Developer on multiple occasions over the past year and has engaged with its
team by phone and email as necessary. The Developer has supported its assumptions and projections
on the project's development costs and operating revenues and expenses with increasing detail as they
have become available and in response to requests by the City and NDC. The developer has provided
the following documentation to support their request for gap financing and NDC's analysis of the
request:
• Development Budget based on conceptual designs (Neumann Monson, architect)
• Operating proforma (revised pursuant to the completion of an appraisal report)
• A Term Sheet for commercial financing from MiclWestOne Bank identifying a maximum loan
amount, rate and term.
• An appraisal report prepared by Commercial Appraisers of Iowa, Inc. of West Des Moines,
dated November 6, 2013
• Construction cost estimates, provided by McComas-Lacina, an experienced general contractor
based in Iowa City (A&M Development's principals also lead McComas-Lacina)
• A description of the development entity's ownership structure and experience in tackling
projects of this scope
Harrison Street Townhouses
December 2, 2014
Page 2
NDC's analysis of the projected financials for the project suggests that gap financing from the City in
the amount of $976,277 is required to bring the project's sources in line with projected uses, as
follows:
Total Project Costs
$6,986,549
Projected Bank Loan $3,320,185 48.37%
Sale of Affordable Units $ 570,000 8.30%
TIF -Supported Financing $ 976,277 12.44%
Required from Developer $2.120,087 30.89%
Total Sources $6,986,549 100.00%
A biannual rebate of $42,963, $85,926 annually, of a portion of the project's property tax payments
will be necessary for approximately 11.4 years to finance the $976,277 gap.
The estimates and projections the developer has provided, as modified and confirmed by the
independent appraisal, support a recommendation for gap financing for the project through a rebate
of the portion of the incremental property taxes generated by the project for the following reasons:
1) Acquisition costs for the site (the majority of which was purchased from the school board by the
University of Iowa and is under purchase option to MidwestOne, which has assigned its option to
the developer at their cost) is appraised at $88 per square foot for a total of $1,047,288 (11,901sf x
$88/sf). This cost is at the high end of the local market, especially given that the project is the first
of its scale to be constructed in the Riverfront Crossings District.
2) Rents for units designed to appeal to residents who are not undergraduate students are not well
established near the project site. As confirmed by the appraiser, this suggests rents that are below
the Downtown market, in this case $1.32 per square foot, or $1,500 per month, for the smaller
units and $1.19 per square foot, or $1,700 per month, for the larger units.
3) The appraisal identified an average market sale price of $190,000 per unit, which would translate
to $148.26/square foot, or approximately $168,000 for the smaller (1,135sf) and $212,000 for the
larger (1,428sf) units. The square foot sales price of $148.26 exceeds the square foot value of the
project as rental units, $137.96. However, the long-term after-tax cash flow and potential for
appreciation on the rental project recommends less City gap financing than the project as for -sale
units. As discussed below, both the rental and for -sale markets can and will change overtime and
the developer does have the option of selling some or all of the units as the market allows.
4) The sale of three units to the City or a nonprofit housing organization for use as affordable housing
at the project's completion provides $570,000 in sales proceeds ($190,000/unit x 3) but also
increases the gap by approximately $77,000. $60,000 of this increase was offset by reducing the
developer's fee by $60,000, or $20,000 per unit.
Harrison Street Townhouses
December 2, 2014
Page 3
5) A stabilized vacancy rate of 3% is identified by the appraiser and accepted for NDC's analysis. While
3% is several points above the current market vacancy rate for all units in and near downtown, the
project is seeking to attract a market segment that will diversify the Riverfront Crossings district.
6) The amount of bank debt attracted to the deal has been maximized given the projected operating
proforma and underwriting criteria (1.2 debt coverage ratio, 80% loan to value) that are very
favorable to the project. The projected loan amount is also influenced by the capitalization rate,
which was identified by the appraiser at ranging from 7.0% to 8.5%. The rate was projected at
7.5% for this analysis, just over the minimum 7.0%, given the project's location outside the stronger
Downtown market.
7) The recommended equity contribution of $2,120,087 was determined based on an 8% internal rate
of return given the projected after-tax cash flow and net sales proceeds of the project if held as a
rental property for 25 -years. The rate of return drops to approximately 7.36% if the developer
finances the $976,277 gap at 5% over twelve years and begins receiving TIF rebates in Year 3 of
operations. The Developer intends to offer units in the project for sale as demand is evidenced in
the market, but NDC's underwriting has focused on the value of the project as a rental property,
with the exception of the early affordable sales, given the uncertainty of the condo sales schedule
and the close match between the rental and sales value of the project identified by the appraiser.
As noted above, the project has only progressed through the conceptual design phase, with final
designs and construction scheduled to follow development of the new City garage. Discussions with
the Developer indicate that the split of land acquisition and site development costs between the
townhouse and parking garage projects is intended to fairly apportion these costs. As the design and
construction of garage progresses, and as final designs and bidding are completed on the townhouses,
the budget for this project should be reviewed to reaffirm the recommended level of gap financing.
Similarly, with construction on the townhouses not projected to begin until well into 2015, market
changes that may strengthen, or weaken, projected rental and for -sale condominium revenues should
be reviewed. An especially strong condominium market with sales per square foot well above those
projected for the project as a rental property could argue for reduced support from the City.
Conclusion: the project as presented demonstrates a need for gap financing in the amount of $976,277
serviced by TIF rebates totaling $85,926 annually for a period of approximately 11.4 years. If the terms
of the selected senior debt and updated project costs are substantially different from what the
Developer has projected, NDC will review this evaluation as requested by the City.
Prepared by Eleanor Dikes, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248
RESOLUTION NO. 15-20
RESOLUTION APPROVING AN AGREEMENT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA
AND A&M DEVELOPMENT II, L.L.C. FOR THE SABIN TOWNHOMES
WHEREAS, Mike Hahn of A&M Development II, L.L.C. ("Developer") has submitted a private
redevelopment proposal known as the Sabin Townhomes for a liner building consisting of 28
two bedroom townhome units that will wrap a City parking facility located at Dubuque Street and
Harrison Street in Iowa City, hereinafter the "Project"; and
WHEREAS, the property on which the Project will be constructed is located within the City -
University Project 1 Urban Renewal Area, which area is described in the Urban Renewal Plan
approved for such area by Resolution No. 2157 dated October 2, 1969, amended by Resolution
No. 01-366, dated November 13, 2001; and by Resolution No. 12-459, dated October 23, 2012;
and
WHEREAS, by Resolution No. 14-253 dated August 19, 2014 the Urban Renewal Plan for the
City -University Project I Urban Renewal Area was amended to include a development
agreement for the Sabin Townhomes as an urban renewal project; and,
WHEREAS, the Economic Development Committee considered said application on December
8, 2014 and voted to recommend approval to the City Council; and
WHEREAS, in exchange for Tax Increment Financing rebates of $976,277 paid over the course
of thirteen years once the Project is complete, Developer has agreed to make certain
improvements to the property, as outlined in the development agreement; and
WHEREAS it is the determination of this City Council that approval of the Agreement for Private
Redevelopment is in the public interest of the residents of the City and is consistent with the
purposes and objectives of the Urban Renewal Area Plan.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY IOWA THAT
1. The attached Agreement for Private Redevelopment by and between the City of Iowa
City, Iowa and A&M DEVELOPMENT II, L.L.C. is in the public interest of the residents of
Iowa City.
2. Said Agreement is consistent with and authorized by the Urban Renewal Plan and all
applicable State and federal laws including but not limited to Iowa Code Chapters 15A
and 403.
3. The Mayor is authorized and directed to execute the Agreement in duplicate and the City
Clerk is authorized and directed to attest his signature and to affix the seal of the City
Clerk.
4. The City Clerk is authorized and directed to record said Agreement with the Johnson
County Recorder at the Developer's expense.
5. The City Manager is hereby authorized to administer the terms of the Agreement for
Private Redevelopment.
Passed and approved this 20th day of, January, 2015.
MAYOR 1
ATTEST:
CITY WERK
A p oved by
Zq -Al
City Attorney's Office
Resolution No. 15-20
Page 3
It was nioved by Mims and seconded by Dobyns the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Botchway
x
Dickens
x
Dobyns
x
Hayek
x
Mims
x
Payne
x
Tluogmorton
AGREEMENT FOR PRIVATE REDEVELOPMENT
By and Between
THE CITY OF IOWA CITY, IOWA
AND
A&M DEVELOPMENT II, LLC.
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THIS AGREEMENT FOR PRIVATE REDEVELOPMENT (hereinafter called
"Agreement"), is made on oras of the 20th day of January , 2015, by and among
the CITY OF IOWA CITY, IOWA, amunicipality (hereinafter called "City"), established pursuant to
the Code of Iowa of the State of Iowa and acting under the authorization of Chapter 403 of the Code
of Iowa, 2013, as amended (hereinafter called "Urban Renewal Act") and A&M DEVELOPMENT
II LLC., having an office for the transaction of business at 1310 Highland Court, Iowa City, Iowa
52240 (the "Developer").
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has
undertaken a program for the revitalization of an urban renewal area in the City and, in this
connection, is engaged in carrying out urban renewal project activities in an area known as the City -
University Project I Urban Renewal Area, which area is described in the Urban Renewal Plan
approved for such area by Resolution No. 2157 dated October 2, 1969, amended by Resolution No.
01-366, dated November 13, 2001; and by Resolution No. 12-459, dated October 23, 2012; and
WHEREAS, a copy of the foregoing Urban Renewal Plan, as amended, has been recorded
among the land records in the office of the Recorder of Johnson County, Iowa; and
WHEREAS, the Developer owns or has the right to occupy certain real property located in
the foregoing Urban Renewal Area as more particularly described in Exhibit A annexed hereto and
made a part hereof (which property as so described is hereinafter referred to as the 'Development
Property"); and
WHEREAS, the Developer will cause certain improvements known as the "Sabin
Townhomes" to be constructed on the Development Property and will cause the same to be operated
in accordance with this Agreement; and
WHEREAS, by Resolution No. 14-253 dated August 19, 2014 the Urban Renewal Plan for
the University Project I Urban Renewal Area was amended to include a development agreement for
the Harrison Street Townhouses n/k/a Sabin Townhomes as an urban renewal project; and,
WHEREAS, the City believes that the development and continued operation of the
Development Property pursuant to this Agreement and the ftilfillment generally of this Agreement,
are in the vital and best interests of the City and in accord with the public purposes and provisions of
the applicable State and local laws and requirements under which the foregoing project has been
undertaken and is being assisted; and,
WHEREAS, the City believes that the development pursuant to this Agreement aligns with
the goals of the Riverfront Crossings Master Plan and the provisions of the Riverfront Crossings
C-2
Form Based Code because it will provide a Liner Building that will hide the east and south facades
of the parking structure from the public view with an innovative design that integrates the parking
facility with no common hallway elements, is part of a larger master planned project consisting of the
parking facility and a six story office building currently under construction on the corner of Clinton
and Harrison Streets and provides three units of affordable housing.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE L DEFINITIONS
Section I.I. Definitions. In addition to other definitions set forth in this Agreement, all
capitalized terms used and not otherwise defined herein shall have the following meanings unless a
different meaning clearly appears from the context:
Agreement means this Agreement and all appendices hereto, as the same may be from time to
time be modified, amended or supplemented.
Certificate of Com len tion means a certification in the form of the certificate attached hereto as
Exhibit C and hereby made a part of this Agreement, provided to the Developer pursuant to Section
3.2 of this Agreement.
City means the City of Iowa City, Iowa, or any successor to its functions.
Code means the Code of Iowa, 2013, as amended.
Construction Plans means the plans, specifications, drawings and related documents reflecting
the construction work to be performed by the Developer on the Development Property and the other
properties upon which the Public Improvements will be located; the Construction Plans shall be as
detailed as the plans, specifications, drawings and related documents which are submitted to the
building inspector of the City as required by applicable City codes.
Countv means the County of Johnson, Iowa.
Developer means A&M DEVELOPMENT II, LLC.
Development Property means that portion of the City University Project 1 Urban Renewal
Area of the City described in Exhibit A hereto.
Economic Development Grants mean the Tax Increment payments to be made by the City to
the Developer under Article VIII of this Agreement.
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Event of Default means any of the events described in Section 10.1 of this Agreement.
First Mortgage means any Mortgage granted to secure any loan made pursuant to either a
mortgage commitment obtained by the Developer from a commercial lender or other financial
institution to fiord any portion of the construction costs and initial operating capital requirements of
the Minimum Improvements, or all such Mortgages as appropriate.
A&M DEVELOPMENT II. LLC TIF ACCOUNT means a separate account within the City -
University Project 1 Urban Renewal Tax Increment Revenue Fund of the City, in which there shall
be deposited all Tax Increments received by the City with respect to the Minimum Improvements on
the Development Property described in Exhibit A.
Minimum Improvements shall mean the construction of a new residential building, together
with all related site improvements as outlined in Exhibit B hereto. Minimum Improvements shall
not include increases in assessed or actual value due to market factors.
Mortgage means any mortgage or security agreement in which the Developer has granted a
mortgage or other security interest in the Development Property, or any portion or parcel thereof, or
any improvements constructed thereon.
Net Proceeds means any proceeds paid by an insurer to the Developer under a policy or
policies of insurance required to be provided and maintained by the Developer, as the case may be,
pursuant to Article V of this Agreement and remaining after deducting all expenses (including fees
and disbursements of counsel) incurred in the collection of such proceeds.
Ordinance means Ordinance No. 12-4509 of the City, under which the taxes levied on the
taxable property in the City -University project 1 Urban Renewal Area shall be divided and a portion
paid into the Iowa City Urban Renewal Tax Increment Revenue Fund.
Project shall mean the construction and operation of the Minimum Improvements on the
Development Property, as described in this Agreement.
State means the State of Iowa.
City -University Project 1 Urban Renewal Tax Increment Fund means the special fund of the
City created under the authority of Section 403.19(2) of the Code and the Ordinance, which fund was
created in order to pay the principal of and interest on loans, monies advanced to or indebtedness,
whether funded, refunded, assumed or otherwise, including bonds or other obligations issued under
the authority of Section 403.9 or 403.12 of the Code, incurred by the City to finance or refinance in
whole or in pant projects undertaken pursuant to the City -University Project 1 Urban Renewal Plan,
as amended.
Tax Increments means the property tax revenues with respect to the Minimum Improvements
that are divided and made available to the City for deposit in the City -University Project I Urban
Renewal Tax hrcrement Revenue Fund under the provisions of Section 403.19 of the Code and the
Ordinance.
Termination Date means the date of termination of this Agreement, as established in Section
12.8 of this Agreement.
Unavoidable Delays means delays resulting from acts or occurrences outside the reasonable
control of the party claiming the delay including but not limited to stomas, floods, fires, explosions or
other casualty losses, unusual weather conditions, strikes, boycotts, lockouts or other labor disputes,
delays in transportation or delivery of material or equipment, litigation conunenced by third parties,
or the acts of any federal, State or local govermnental unit (other than the City).
Urban Renewal Plan means the City -University Project I Urban Renewal Plan, as amended,
approved in respect of the City -University project 1 Urban Renewal Area, described in the preambles
hereof.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
Section 2.1. Representations and Warranties of the City. The City makes the following
representations and warranties:
(a) The City is a municipal corporation and political subdivision organized under the
provisions of the Constitution and the laws of the State and has the power to enter into this
Agreement and carry out its obligations hereunder.
(b) The execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this
Agreement are not prevented by, limited by, in conflict with, or result in a breach of, the terms,
conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which the City is now a party or by which it is bound, nor do they
constitute a default under any of the foregoing.
Section 2.2. Covenants, Obligations, Representations and Warranties of Developer. The
Developer makes the following representations and warranties:
(a) Developer is a limited liability company duly organized and validly existing under the
laws of the State of Iowa and has all requisite power and authority to own and operate its properties,
to carry on its business as now conducted and as presently proposed to be conducted, and to enter
into and perform its obligations under the Agreement.
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(b) This Agreement has been duly and validly authorized, executed and delivered by the
Developer and, assuming due authorization, execution and delivery by the City, is in full force and
effect and is a valid and legally binding instrument of the Developer enforceable in accordance with
its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors' rights generally.
(c) The execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby, and the fiilfillment of or compliance with the terms and conditions of this
Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the
terms, conditions or provisions of the certificate of incorporation and bylaws of Developer or its
parents or subsidiaries of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now a party or by which it or its property is
bound, nor do they constitute a default under any of the foregoing.
(d) There are no actions, suits or proceedings pending or threatened against or affecting the
Developer in any court or before any arbitrator or before or by any governmental body in which there
is a reasonable possibility of an adverse decision which could materially adversely affect the business
(present or prospective), financial position or results of operations of the Developer or which in any
manner raises any questions affecting the validity of the Agreement or the Developer's ability to
perform its obligations under this Agreement.
(e) Developer has not received any notice from any local, State or federal official that the
activities of Developer with respect to the Development Property may or will be in violation of any
environmental law or regulation (other than those notices, if any, of which the City has previously
been notified in writing). Developer is not currently aware of any State or federal claim filed or
planned to be filed by any party relating to any violation of any local, State or federal environmental
law, regulation or review procedure applicable to the Development Property, and Developer is not
currently aware of any violation of any local, State or federal environmental law, regulation or
review procedure which would give any person a valid claim under any State or federal
environmental statute with respect thereto.
(f) Developer will cooperate with the City in resolution of any traffic, parking, trash
removal, excessive noise or public safety problems which may arise in connection with the
construction and operation of the Minimum Improvements.
(g) Developer would not undertake its obligations under this Agreement without the
payment by the City of the Economic Development Grants being made to the Developer pursuant to
this Agreement.
(h) The Developer will cause the Minimum Improvements to be constructed in accordance
with the terms of this Agreement and when constructed will comply with the Urban Renewal Plan
and all local, State and federal laws and regulations, except for variances that may be necessary to
construct the Minimum Improvements.
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(i) The Developer will use its best efforts to obtain, or cause to be obtained, in a timely
manner, all required permits, licenses and approvals, and will meet, in a timely manner, all
requirements of all applicable local, State, and federal laws and regulations which must be obtained
or met in connection with the Project.
0) With the exception of the three townhome units to be purchased by an affordable
housing provider, the Developer shall not, prior to the expiration of this agreement, cause or
voluntarily permit the Development Property and/or Minimum Improvements to become other than
taxable property by applying for or seeking any industrial property tax exemption, by being owned by
a utility or any other entity of a type where the assessed value of taxable property of such entity is not
treated as located within the Development Property, by being owned by any entity having tax exempt
status or by applying for or seeking for a deferral, abatement or exemption from property tax
pursuant to any present or future statute or ordinance.
ARTICLE III. DEVELOPMENT AND OCCUPANCY REQUIREMENT
Section 3.1. Minimum Improvements.
The Developer agrees to complete Minimum Improvements generally consisting of 28 two
bedroom townhome units that will have direct access via a back door to the City -owned parking
facility with each unit to have a street level front entrance and no common hallways, all as more fully
described in Exhibit `B" hereto. If three of the units have been purchased by an affordable housing
provider pursuant to Section 3.3 hereof and are exempt from the payment of property taxes, the
construction of the Minimum Improvements must increase the actual assessed value of the
Development Property to at least $4,750,000 for the January 1, 2017 assessment. If three of the units
have not been purchased by an affordable housing provider and are not exempt from the payment of
taxes, the construction of the Minimum Improvements must increase the actual assessed value of the
Development Property to at least $5,320,000 for the assessment on January 1, 2017.
Section 3.2. Certificate of Completion.
Upon written request of the Developer after issuance of an occupancy permit for the Minimum
Improvements the City will furnish the Developer with a Certificate of Completion for such portion
in recordable form, in substantially the form set forth in Exhibit C attached hereto. Such Certificate
of Completion shall be a conclusive determination of satisfactory termination of the covenants and
conditions of this Agreement solely with respect to the obligations of the Developer to construct such
portion of the Minimum Improvements.
A Certificate of Completion may be recorded in the proper office for the recordation of deeds and
other instruments pertaining to the Development Property at the Developer's sole expense. If the
City shall refuse or fail to provide a Certificate of Completion in accordance with the provisions of
this Section 3.2, the City shall within twenty (20) days after written request by the Developer,
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provide the Developer with a written statement indicating with adequate detail, in what respects the
Developer has failed to complete the Minimum Improvements in accordance with the provisions of
this Agreement, or is otherwise in default under the terms of this Agreement, and what measures or
acts will be necessary in the opinion of the City, to obtain such Certificate of Completion.
Section 3.3. Affordable Housine.
Developer shall sell three of the townhonre units to an affordable housing provider approved
by the City for the purpose of providing rental housing for households at or below 80% of median
income. The price of each unit shall not exceed $190,000. The rent in those units shall not exceed
the fair market rent established by the U.S. Department of Housing and Urban Development (HUD)
for the HOME program. The City agrees to use its best efforts to secure an affordable housing
provider to purchase said units. The sale shall take place by January 1, 2017 or upon the City's
approval of an affordable housing provider if that approval occurs after January 1, 2017. In the event
there is not an affordable housing provider ready, willing and able to purchase said units on or before
January 1, 2018, Developer agrees to rent three units at rates equal to or less than 80% of the HOME
Fair Market Rent rate established by HUD. Rental applications for these three units shall be
processed through an affordable housing provider approved by the City, which will perform third -
party verification of household income to ensure the three units are occupied by households with
incomes at or below 80% of the HUD -established Area Median Income, pursuant to an agreement
between the Developer and The Housing Fellowship, which shall remain in fall force and effect until
the Termination Date of this Agreement. These three units shall be leased by such income -qualified
tenants as described above for an average of 11 months per calendar year. (In 2014, 80% of the
HUD -established Area Median Income is $44,550 for a 1 -person household, and $50, 900 for a 2 -
person household, and 80% of the HOME Fair Market Rent is $668 per month for a 1 bedroom and
$851 for a 2 -bedroom.
ARTICLE IV. RESERVED
ARTICLE V. INSURANCE
Section 5.1. Insurance Requirements.
(a) Upon completion of construction of the Minimum Improvements and at all times prior
to the Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and
expense (and from time to time at the request of the City shall furnish proof of the payment of
premiums on) insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under a
policy or policies covering such risks as are ordinarily insured through property policies against risk
by similar businesses, including (without limitation the generality of the foregoing) fire, extended
coverage, vandalism and malicious mischief, explosion, water damage, demolition cost, debris
removal, and collapse in an amount not less than the full insurable replacement value of the
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Minimum Improvements, but any such policy may have a deductible amount of not more than
$250,000. No policy of insurance shall be so written that the proceeds thereof will produce less than
the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or
otherwise, without the prior consent thereto in writing by the City. The term "full insurable
replacement value" shall mean the actual replacement cost of the Minimum Improvements
(excluding foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be determined from time to time at the request of the
City, but not more frequently than once every three years, by an insurance consultant or insurer
selected and paid for by the Developer and approved by the City.
(ii) Comprehensive general public liability insurance, including personal injury
liability for injuries to persons and/or property, including any injuries resulting from the operation of
automobiles or other motorized vehicles on or about the Development Property, in the minimum
amount for each occurrence and for each year of $1,000,000.
(iii) Such other insurance, including worker's compensation insurance respecting all
employees of the Developer, in such amount as is customarily carried by like organizations engaged
in like activities of comparable size and liability exposure; provided that the Developer may be self-
insured with respect to all or any part of its liability for worker's compensation.
(b) All insurance required by this Article V to be provided prior to the Termination Date
shall be taken out and maintained in responsible insurance companies selected by the Developer
which are authorized under the laws of the State of Iowa to assume the risks covered thereby. The
Developer will deposit annually with the City copies of policies evidencing all such insurance, or a
certificate or certificates or binders of the respective insurers stating that such insurance is in force
and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that the
insurer shall not cancel or modify it without giving written notice to the Developer and the City at
least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen
(15) days prior to the expiration of any policy, the Developer shall furnish the City evidence
satisfactory to the City that the policy has been renewed or replaced by another policy conforming to
the provisions of this Article V, or that there is no necessity therefor under the terms hereof. In lieu
of separate policies, the Developer may maintain a single policy, or blanket or umbrella policies, or a
combination thereof, which provide the total coverage required herein, in which event the Developer
shall deposit with the City a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
(c) The Developer agrees to notify the City immediately in the case of damage exceeding
$250,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof
resulting from fire or other casualty. Net Proceeds of any such insurance shall be paid directly to the
Developer, and the Developer will forthwith repair, reconstruct and restore the Minimum
Improvements to substantially the same or an improved condition or value as they existed prior to the
event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and
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restoration, the Developer will apply the Net Proceeds of any insurance relating to such damage
received by the Developer to the payment or reimbursement of the costs thereof.
(d) The Developer shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether the Net Proceeds of insurance received by the Developer for such
purposes are sufficient.
ARTICLE VI. COVENANTS OF THE DEVELOPER
Section 6.1. Maintenance of Properties. The Developer will maintain, preserve and keep
the Minimum Improvements in good repair and working order, ordinary wear and tear excepted, and
from time to time will make all necessary repairs, replacements, renewals and additions.
Section 6.2. Maintenance of Records. The Developer will keep at all times proper books of
record and account in which full, true and correct entries will be made of all dealings and
transactions of or in relation to the business and affairs of the Developer in accordance with
generally accepted accounting principles, consistently applied throughout the period involved, and
the Developer will provide reasonable protection against loss or damage to such books of record and
account.
Section 6.3. Compliance with Laws. The Developer will comply with all laws, rules and
regulations relating to the Minimum Improvements, other than laws, rules and regulations the failure
to comply with which or the sanctions and penalties resulting therefrom, would not have a material
adverse effect on the business, property, operations, or condition, financial or otherwise, of the
Developer.
Section 6.4. Non -Discrimination. In operating the Minimum hnprovements, the Developer
shall not discriminate against any applicant, employee or tenant because of race, creed, color,
religion, sex, national origin, sexual orientation, age, disability, marital status or gender identity. The
Developer shall ensure that applicants, employees and tenants are considered and are treated without
regard to their race, creed, color, religion, sex, national origin, sexual orientation, age, disability,
marital status or gender identity.
Section 6.5. RESERVED.
Section 6.6. Annual Certification. To assist the City in monitoring and performance of the
Developer hereunder, a duly authorized officer of the Developer shall annually provide to the City:
(a) proof that all ad valorem taxes on the Development Property have been paid for the prior fiscal
year; and (b) certification that such officer has re-examined the terms and provisions of this
Agreement and that at the date of such certificate, and during the preceding twelve (12) months, the
Developer is not, or was not, in default in the fulfillment of any of the terms and conditions of this
Agreement and that no Event of Default (or event which, with the lapse of time or the giving of
notice, or both, would become an Event of Default) is occurring or has occurred as of the date of
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such certificate or during such period, or if the signer is aware of any such default, event or Event of
Default, said officer shall disclose in such statement the nature thereof, its period of existence and
what action, if any, has been taken or is proposed to be taken with respect thereto. Such statement,
proof and certificate shall be provided not later than November 1 of each year, commencing
November 1, 2017, and ending on November 1, 2029 both dates inclusive. Upon certification by the
Developer on or before November 1, 2017, the City will calculate an increment in accordance with
the Ordinance, which establishes a base value as of January 1, 2011.
Section 6.7 Taxation of Development Property. With the exception of the three townhome
units to be purchased by an affordable housing provider, the Developer shall not, prior to the
expiration of this agreement, cause or voluntarily permit the Development Property and/or Minimum
Improvements to become other than taxable property by applying for or seeking any property tax
exemption, by being owned by a utility or any other entity of a type where the assessed value of
taxable property of such entity is not treated as located within the Development Property, by being
owned by any entity having tax exempt status or by applying for or seeking for a deferral, abatement
or exemption from property tax pursuant to any present or future statute or ordinance.
ARTICLE VII. ASSIGNMENT AND TRANSFER
Section 7.1. Status of the Developer; Transfer of Substantially All Assets. As security for the
obligations of the Developer under this Agreement, the Developer represents and agrees that, prior to
the issuance of the Certificate of Completion and prior to the Termination Date, the Developer will
maintain existence as an adequately -capitalized limited liability company and will not wind up or
otherwise dispose of all or substantially all of the Development Property and Minimum
Improvements, or assign its interest in this Agreement to any other party unless (i) the transferee
partnership, corporation, limited liability company or individual assumes in writing all of the
obligations of the Developer under this Agreement and (ii) the City consents thereto in writing in
advance thereof, in which case the Developer may be released of its obligations hereunder.
Notwithstanding the foregoing, however, or any other provisions of this Agreement, (a) Developer
may transfer its interest in and to this Agreement to any affiliate which is controlled by, under
common control with or controls Developer or to any entity that acquires all or substantially all of
the assets of the Developer or to any successor to Developer by consolidation, merger, or otherwise,
and (b) the Developer may (1) pledge any and/or all of its assets as security for any financing of the
Minimum Improvements; (2) assign its rights under this Agreement to a third party, provided such
assignment shall not release the Developer of its obligations hereunder, and the City agrees in
writing that Developer may assign its interest under this Agreement for such purpose; and (3) the
Developer may transfer its ownership interest to a third -party under an arrangement whereby
Developer will lease the Development Property back and continue to satisfy the requirements of this
Agreement.
ARTICLE VIII. ECONOMIC DEVELOPMENT GRANTS
Section 8.1. Economic Development Grants. (a) For and in consideration of the obligations
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being assumed by the Developer hereunder, and in furtherance of the goals and objectives of the
Urban Renewal Plan and the Urban Renewal Act, the City agrees to make up to thirteen (13) annual
Economic Development Grants to the Developer, subject to the Developer having received a
Certificate of Completion and being and remaining in compliance with the terms of this Agreement
and subject to the terms of this Article VIII. The annual grants shall commence on June 1, 2019 and
end on June 1, 2031, or when the total of all grants is equal to $976,277, whichever is earlier. All
amoral grants shall be equal to one hundred percent (100%) per fiscal year of the Tax Increments
(unless the total grant amount of $976,277 is reached first) collected by the City with respect to the
Minimum Improvements on Development Property pursuant to Section 403.9 of the Urban Renewal
Act under the terms of the Ordinance (without regard to any averaging that may otherwise be utilized
under Section 403.19 and excluding any interest that may accrue thereon prior to payment to the
Developer) during the preceding twelve-month period in respect of the Development Property and
the Minimum Improvements, but subject to adjustment and conditions precedent as provided in this
Article (such payments being referred to collectively as the "Economic Development Grants").
(b) The obligation of the City to make an Economic Development Grant to the Developer
in any year as specified above shall be subject to and conditioned upon the timely filing by the
Developer of all previous ammal statements, proofs and certifications required under Section 6.6
hereof and the City Manager's approval thereof, which will not be unreasonably withheld. Beginning
with the November 1, 2017 certification, if the Developer's annual statement, proof and certification
is timely filed and contains the information required under Section 6.6 and the City Manager
approves of the same, the City shall certify to the County prior to December 1 of that year its request
for the available Tax Increments resulting from the assessments imposed by the County as of January
1 of that year, to be collected by the City as taxes are paid during the following fiscal year and which
shall thereafter be disbursed to the Developer on June 1 of the following fiscal year. (For example, if
the Developer and the City each so certify on November and December 2017, respectively, the first
Economic Development Grant would be paid to the Developer on June 1, 2019).
(c) In the event that the annual statement, proof or certificate required to be delivered by
the Developer under Section 6.7 is not delivered to the City by November 1 of any year, the
Developer recognizes and agrees that the City may have insufficient time to review and approve the
same and certify its request for Tax Increments to the County and that, as a result, no Economic
Development Grant may be made to the Developer in respect thereof. The City covenants to act in
good faith to appropriately review and consider any late certification on the part of the Developer,
but the City shall not be obligated to make any certification to the County for the available Tax
Increments or make any corresponding payment of the Economic Development Grant to the
Developer if, in the reasonable judgment of the City, it is not able to give appropriate consideration
(which may include, but not be limited to, specific discussion before the City Council at a regular
City Council meeting with respect thereto) to the Developer's certification due to its late filing. In
the event Developer fails to timely file an annual statement, proof or certificate due to an
Unavoidable Delay and, as a result, an Economic Development Grant cannot be make, Developer
may give written notice to the City and, if the City finds that Developer's failure is due to an
Unavoidable Delay, the missed Economic Development Grant shall be made in the year succeeding
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the last srheduled Economic Development Grant under Section 8. 1, subject to Developer's filing
under Section 6.6 and all other provisions of this Article VIII with respect to such grant, it being the
intention of the parties to allow up to thirteen (13) annual Economic Development Grants in an
aggregate amount not to exceed $976,277, if Developer is in compliance with this Agreement.
(d) The total, aggregate amount of all Economic Development Grants under this Agreement
shall not exceed $976,277. Each Economic Development Grant shall be equal to one hundred
percent (100%) of all Tax Increments collected per fiscal year in respect of the assessments imposed
on the Development Property and Minimum Improvements as of Januaiy 1, 2017, and on January 1
of each of the following thirteen (13) years, until the total, aggregate of all such Economic
Development Grants equals no more than the sum of $976,277. The final grant shall be adjusted, if
necessary, if payment of 100% of Tax Increments for that grant would result in total, aggregate
Economic Development Grants in an amount exceeding $976,277. Such Economic Development
Grants shall at all times be subject to termination in accordance with the terms of this Article VIII
and Article X. Thereafter, the taxes levied on the Development Property and Minimum
Improvements shall be divided and applied in accordance with the Urban Renewal Act and the
Ordinance. It is recognized by all parties that the total aggregate amount set forth above is a
maximum amount only and that the actual payment amounts will be determined after the Minimum
Improvements are completed and the valuations of said Improvements have been determined by the
City Assessor.
(e) In the event that any certificate filed by the Developer under Section 6.6 or other
information available to the City discloses the existence or prior occurrence of an Event of Default
that was not cured or cannot reasonably be cured under the provisions of Section 10.2 (or an event
that, with the passage of time or giving of notice, or both, would become an Event of Default that
cannot reasonably be cured under the provisions of Section 10.2), the City shall have no obligation
thereafter to make any further payments to the Developer in respect of the Economic Development
Grants and may proceed to take one or more of the actions described in Section 10.2 hereof.
Section 8.2. Source of Grant Funds Limited. (a) The Economic Development Grants shall be
payable from and secured solely and only by amounts deposited and held in the A&M
DEVELOPMENT II, LLC TIF Account of the City. The City hereby covenants and agrees to
maintain the Ordinance in force during the term hereof and to apply the incremental taxes collected
in respect ofthe Minimum Improvements and allocated to the A&M DEVELOPMENT II; LLC TIF
Account to pay the Economic Development Grants, as and to the extent set forth in Section 8.1
hereof. The Economic Development Grants shall not be payable in any maturer by other tax
increment revenues or by general taxation or from any other City ftmds.
(b) Notwithstanding the provisions of Section 8.1 hereof, the City shall have no obligation
to make an Economic Development Grant to the Developer if at any time during the term hereof the
City receives an opinion of its legal counsel or a controlling decision of an Iowa court having
jurisdiction over the subject matter hereof to the effect that the use of Tax Increments resulting from
the Minimum Improvements to fund an Economic Development Grant to the Developer, as
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contemplated under said Section 8. 1, is not authorized or otherwise an appropriate project activity
permitted to be undertaken by the City under the Urban Renewal Act or other applicable provisions
of the Code, as then constituted. Upon receipt of such an opinion or decision, the City shall
promptly forward a copy of the same to the Developer. If the circumstances or legal constraints
giving rise to the opinion or decision continue for a period during which two (2) Economic
Development Grants would otherwise have been paid to the Developer under the terms of Section
8. 1, the City may terminate this Agreement, without penalty or other liability to the Developer, by
written notice to the Developer.
(c) The City makes no representation with respect to the amounts that may finally be paid to
the Developer as the Economic Development Grants, and under no circumstances shall the City in
any manner be liable to the Developer so long as the City timely applies the Tax Increments actually
collected and held in the A&M DEVELOPMENT II, LLC TIF Account (regardless of the amounts
thereof) to the payment of the Economic Development Grants to the Developer, as and to the extent
described in this Article.
Section 8.3. Use of Other Tax Increments. Subject to this Article VIII, the City shall be free to
use any and all Tax Increments collected in respect of increases in valuation on the Development
Property unrelated to construction of the Minimum Improvements (i.e. increases in assessed or actual
value due to market factors) any other properties within the Project Area, or any available Tax
Increments resulting from the suspension or termination of the Economic Development Grants under
Section 8.1 hereof, for any purpose for which the Tax Increments may lawfully be used pursuant to
the provisions of the Urban Renewal Act, and the City shall have no obligations to the Developer
with respect to the use thereof.
ARTICLE IX. INDEMNIFICATION
Section 9.1. Release and Indemnification Covenants.
(a) The Developer releases the City and the governing body members, officers, agents,
servants and employees thereof (hereinafter, for purposes of this Article IX, the "indemnified
parties") from, covenants and agrees that the indemnified parties shall not be liable for, and agrees to
indemnify, defend and hold harmless the indemnified parties against, any loss or damage to property
or any injury to or death of any person occurring at or about or resulting from any defect in the
Minimum Improvements.
(b) Except for any willful misrepresentation or any willful or wanton misconduct or any
unlawful act of the indemnified parties, the Developer, or its successors or assigns, agrees to protect
and defend the indemnified parties, now or forever, and further agrees to hold the indemnified parties
harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or
entity whatsoever arising or purportedly arising from (i) any violation of any agreement or condition
of this Agreement (except with respect to any suit, action, demand or other proceeding brought by
the Developer against the City to enforce his rights under this Agreement), (ii) the acquisition and
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condition of the Development Property and the construction, installation, ownership, and operation
of the Minimum Improvements or (iii) any hazardous substance or environmental contamination
located in or on the Development Property relating to conditions caused by Developer after the
effective date of this Agreement.
(c) The indemnified parties shall not be liable for any damage or injury to the persons or
property of the Developer or its officers, agents, servants or employees or any other person who may
be on or about the Minimum Improvements due to any act of negligence of any person, other than
any act of negligence on the part of any such indemnified party or its officers, agents, servants or
employees.
(d) All covenants, stipulations, promises, agreements and obligations of the City contained
herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the
City, and not of any governing body member, officer, agent, servant or employee of the City in the
individual capacity thereof.
(e) The provisions of this Article IX shall survive the termination of this Agreement.
ARTICLE X. DEFAULT AND REMEDIES
Section 10.1. Events of Default Defined. The following shall be "Events of Default" under
this Agreement and the term "Event of Default' shall mean, whenever it is used in this Agreement,
any one or more of the following events:
(a) Failure by the Developer to cause the construction of the Minimum Improvements to be
commenced and completed pursuant to the terms, conditions and limitations of Article III of this
Agreement;
(b) Transfer of any interest in this Agreement or the assets of the Developer in violation of
the provisions of Article VII of this Agreement;
(c) Failure by the Developer to substantially observe or perform any covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement;
(d) If the holder of any Mortgage on the Development Property, or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under
the applicable Mortgage documents;
(e) If the Developer shall:
(A) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or
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(B) make an assignment for the benefit of its creditors; or
(C) admit in writing its inability to pay its debts generally as they become due; or
(D) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the
adjudication of the Developer as a bankrupt or its reorganization under any present or future federal
bankruptcy act or any similar federal or state law shall be filed in any court and such petition or
answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver,
trustee or liquidator of the Developer or the Minimum Improvements, or part thereof, shall be
appointed in any proceedings brought against the Developer, and shall not be discharged within
ninety (90) days after such appointment, or if the Developer shall consent to or acquiesce in such
appointment; or
(f) If any representation or warranty made by the Developer in this Agreement, or made by
the Developer in any written statement or certificate furnished by the Developer pursuant to this
Agreement, shall prove to have been incorrect, incomplete or misleading in any material respect on
or as of the date of the issuance or making thereof.
Section 10.2. Remedies on Default. Whenever any Event of Default referred to in Section
10.1 of this Agreement occurs and is continuing, the City, as specified below, may take any one or
more of the following actions after (except in the case of an Event of Default under subsections (d)
or (e) of said Section 10.1 in which case action may be taken inmiediately) the giving of thirty (30)
days' written notice by the City to the Developer and the holder of the First Mortgage (but only to the
extent the City has been informed in writing of the existence of a First Mortgage and been provided
with the address of the holder thereof) of the Event of Default, but only if the Event of Default has
not been cured within said thirty (30) days, or if the Event of Default cannot reasonably be cured
within thirty (30) days and the Developer does not provide assurances reasonably satisfactory to the
City that the Event of Default will be cured as soon as reasonably possible:
(a) The City may suspend its performance under this Agreement until it receives
assurances from the Developer, deemed adequate by the City, that the Developer will cure its default
and continue its performance under this Agreement;
(b) The City may terminate this Agreement;
(c) The City may withhold the Certificate of Completion;
(d) The City may take any action, including legal, equitable or administrative action, which
may appear necessary or desirable to enforce performance and observance of any obligation,
agreement, or covenant of the Developer, as the case may be, under this Agreement; or
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(e) The City shall be entitled to recover from the Developer, and the Developer shall re -pay
to the City, an amount equal to the most recent Economic Development Grant previously made to the
Developer under Article VIII hereof, and the City may take any action, including any legal action it
deems necessary, to recover such amount from the Developer.
Section 10.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City
is intended to be exclusive of any other available remedy or remedies, but each and every remedy
shall be cumulative and shall be in addition to every other remedy given under this Agreement or
now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right
or power accruing upon any default shall impair any such right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised from time to time and as often as may
be deemed expedient.
Section 10.4. No Implied Waiver. In the event any agreement contained in this Agreement
should be breached by any party and thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
Section 10.5. Agreement to Pay Attorneys' Fees and Expenses. Whenever any Event of
Default occurs and the party who is not in default shall employ attorneys or incur other expenses for
the collection of payments due or to become due or for the enforcement or performance or
observance of any obligation or agreement on the part of the party in default herein contained, the
party in default agrees that it shall, on demand therefor, pay to the party not in default the reasonable
fees of such attorneys and such other expenses as may be reasonably and appropriately incurred by
the party not in default in connection therewith.
ARTICLE XI. OPTION TO TERMINATE AGREEMENT
Section 11.1. Option to Terminate. This Agreement may be terminated by the Developer if (i)
the Developer is in compliance with all material terms of this Agreement and no Event of Default
has occurred which has not been cured in accordance with the provisions of Section 10.2 hereof; and
(ii) the City fails to comply with any material term of this Agreement, and, after written notice by the
Developer of such failure, the City has failed to cure such noncompliance within thirty (30) days of
receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City within thirty
(30) days of receipt of such notice, the City has not provided assurances reasonably satisfactory to
the Developer that such noncompliance will be cured as soon as reasonably possible.
Section 11.2. Effect of Termination. If this Agreement is terminated pursuant to this Article
XI, this Agreement shall be from such date forward null and void and of no further effect; provided,
however, that the City's rights to indemnification under Article IX hereof shall in all events survive
and provided further that the termination of this Agreement shall not affect the rights of any party to
institute any action, claim or demand for damages suffered as a result of breach or default of the
terms of this Agreement by another party, or to recover amounts which had accrued and become due
CSE
and payable as of the date of such termination. In any such action, the prevailing party shall be
entitled to recover its reasonable attorneys fees and related expenses incurred in connection therewith
(but only, in the case of the City, to the extent permitted by applicable law). Upon termination of
this Agreement pursuant to this Article XI, the Developer shall be free to proceed with the
construction and operation of the Minimum huprovements at its own expense and without regard to
the provisions of this Agreement.
ARTICLE XII. MISCELLANEOUS
Section 12.1. Conflict of Interest. The Developer represents and warrants that, to its best
knowledge and belief after due inquiry, no officer or employee of the City, or its designees or agents,
nor any consultant or member of the governing body of the City, and no other public official of the
City who exercises or has exercised any functions or responsibilities with respect to the Project
during his or her tenure, or who is in a position to participate in a decision-making process or gain
insider information with regard to the Project, has had or shall have any interest, direct or indirect, in
any contract or subcontract, or the proceeds thereof, for work or services to be performed in
connection with the Project, or in any activity, or benefit therefrom, which is part of the Project at
any time during or after such person's tenure.
Section 12.2. Notices and Demands. A notice, demand or other communication under this
Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and
(a) In the case of the Developer, to Mike Hahn, A&M Development II, LLC, 1310
Highland Court, Iowa City, Iowa 52245.
(b) In the case of the City, to City Hall, 410 E. Washington Street, Iowa City,
Iowa, 52240, Attn: City Manager;
or to such other designated individual or to such other address as any party shall have furnished to
the other in writing in accordance herewith.
Section 12.3. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
Section 12.4. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
Section 12.5. Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Iowa.
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Section 12.6. Entire Agreement. This Agreement and the exhibits hereto reflect the entire
agreement between the parties regarding the subject matter hereof, and supersedes and replaces all
prior agreements, negotiations or discussions, whether oral or written. This Agreement may not be
amended except by a subsequent writing signed by all parties hereto.
Section 12.7. Successors and Assigns. This Agreement is intended to and shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and assigns.
Section 12.8. Termination Date. This Agreement shall terminate and be of no further force or
effect on and after June 1, 2027, or upon final payment of the Economic Development Grants,
whichever is sooner.
Section 12.9 Recording. This Agreement shall be recorded at the Johnson County Recorder's
Office, Iowa City, within 30 days of execution at the expense of the Developer.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk,
and the Developer has caused this Agreement to be duly executed in its name and behalf by A&M
DEVELOPMENT, II, L.L.C.
(SEAL) CITY OF IOWA CITY, IOWA
By:
Mayor
ATTEST: pro ed by:
By
City erk / City Attorney
A&M 9hVELOPMENT II, LLC
B.
CITY OF IOWA CITY
STATE OF IOWA
On this 2 -&ti day of �Jcl ,-Lat rq 206,, before me a Notary Public in and
for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally
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known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the
City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation,
and that said instrument was signed and scaled on behalf of said Municipal Corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporation by it voluntarily executed.
Notary Public in and for the State of Iowa
bier , 1' E K. TUTTLE
STATE OF IOWA ) PO, Commissior ?lumber 22181
iAVCo I liissi n_Expires
)SS �4101A4. r. _'_. J7_%_l
COUNTY OF JOHNSON )
This instrument was acknowledged before me,i this 16th d of January 2015., by
Allen Morel ock , as manager of A&M DgW OPIy�F�V ��I, LLC.
Y4
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in and for the State of Iowa
EXHIBIT A
DEVELOPMENT PROPERTY
The Development Property is described as consisting of all that certain parcel or parcels of
land located in the City of Iowa City, Comity of Johnson, State of Iowa, more particularly described
as follows:
Lots 1-4 in Block 8, County Seat Addition to Iowa City, Johnson County, Iowa
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EXHIBIT B
MINIMUM IMPROVEMENTS
The Developer agrees to complete Minimum Improvements generally consisting of at least
$6,986,549 in improvements to that portion of the Development Property located along Dubuque
Street and Prentiss Street, which improvements shall include the construction of 28 two bedroom
townhome units. There shall be 14 lower units and 14 upper units with net square feet of
approximately 1,135 SF and 1,428 SF respectively. The townhome units will serve as a liner
building on the East and South sides of the parking facility. There will be no common hallways and
all units will have a street level front entrance. Each unit will have direct access via a back door to
the City parking facility that will be constructed in connection with the minimum improvements.
Each unit will have the option to receive a permit from the City for a maximum of two parking stalls
in said facility on an annual basis at the rate set by the City. The option must be exercised annually
on or before June 1 st of each year. Payment for the space(s) shall be made quarterly or annually and
failure to make payment shall result in loss of the right to reserve said space(s).
Each townhome unit will include private outdoor space in the form of a balcony or garden
terrace. The townhomes will include high efficiency heating and cooling units and low flow
plumbing fixtures. The exterior cladding of the building shall be a recycled by product of the rice
milling industry. The improvements shall be built in conformity with the site layout, conceptual
renderings, outline characteristics and floor plans attached hereto as Exhibit "E".
Developer shall sell three of the townhome units to an affordable housing provider
approved by the City for the purpose of providing rental housing for households at or below 80% of
median income. The price of each unit shall not exceed $190,000. The rent in those units shall not
exceed the fair market rent established by the U.S. Department of Housing and Urban Development
(HUD) for the HOME program. The City agrees to use its best efforts to secure an affordable
housing provider to purchase said units. The sale shall take place by January 1, 2017 or upon the
City's approval of an affordable housing provider if that approval occurs after January 1, 2017. In
the event there is not an affordable housing provider ready, willing and able to purchase said units on
or before January 1, 2018 , Developer agrees to rent three units at rates equal to or less than 80% of
the HOME Fair Market Rent rate established by HUD. Rental applications for these three units
shall be processed through an affordable housing provider approved by the City, which will perform
third -party verification of household income to ensure the three units are occupied by households
with incomes at or below 80% of the HUD -established Area Median Income, pursuant to an
agreement between the Developer and The Housing Fellowship, which shall remain in full force and
effect until the Termination Date of this Agreement. These three units shall be leased by such
income -qualified tenants as described above for an average of 11 months per calendar year. (In 2014,
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80% of the HUD -established Area Median Income is $44,550 for a 1 -person household, and $50,
900 for a 2 -person household, and 80% of the HOME Fair Market Rent is $668 per month for a 1
bedroom and $851 for a 2 -bedroom.
If three of the townhome units have been purchased by an affordable housing provider and are
exempt from the payment of property taxes, the construction of the Minimum Improvements must
increase the actual assessed value of the Development Property to at least $4,750,000 for the January
1, 2017 assessment. If three of the units have not been purchased by an affordable housing provider
and are not exempt from the payment of taxes, the construction of the Minimum Improvements must
increase the actual assessed value of the Development Property to at least $5,320,000 for the
assessment on January 1, 2017.
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EXHIBIT C
CERTIFICATE OF COMPLETION
WHEREAS, the City of Iowa City, Iowa (the "City") and A&M DEVELOPMENT II, LLC.,
having an office for the transaction of business at , Iowa City, Iowa 52245 (the
'Developer"), did on or about the day of January, 2015, make, execute and deliver, each to
the other, an Agreement for Private Redevelopment (the "Agreement"), wherein and whereby the
Developer agreed, in accordance with the terms of the Agreement, to develop and maintain certain
improvements on real property located within the City and as more particularly described as follows:
Lots 1-4 in Block 8, County Seat Addition to Iowa City, Johnson County, Iowa
WHEREAS, the Agreement incorporated and contained certain covenants and restrictions with
respect to the development of the Development Property, and obligated the Developer to construct
certain Minimum Improvements (as defined therein) in accordance with the Agreement; and
WHEREAS, the Developer has to the present date performed said covenants and conditions
insofar as they relate to the construction of said Minimum Improvements in a manner deemed by the
City to be in conformance with the approved building plans to permit the execution and recording of
this certification.
NOW, THEREFORE, pursuant to Section 3.2 of the Agreement, this is to certify that all
covenants and conditions of the Agreement with respect to the obligations of the Developer, and its
successors and assigns, to construct the Minimum Improvements on the Development Property have
been completed and performed by the Developer and are hereby released absolutely and forever
terminated insofar as they apply to the land described herein. The County Recorder of Johnson
County is hereby authorized to accept for recording and to record the filing of this instrument, to be a
conclusive determination of the satisfactory termination of the covenants and conditions of said
Agreement with respect to the construction of the Minimum Improvements on the Development
Property.
All other provisions of the Agreement shall otherwise remain in 11111 force and effect until
termination as provided therein.
(SEAL) CITY OF IOWA CITY, IOWA
Lm
Mayor
C4MU
ATTEST:
By:
City Clerk
STATE OF IOWA
COUNTY OF JOHNSON
CITY OF IOWA CITY
On this day of 20 , before me a Notary Public in and
for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally
known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the
City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation,
and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporation by it voluntarily executed.
Notary Public in and for the State of Iowa
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EXHIBIT D
ANNUAL CERTIFICATION
Date:
(due annually no later than November 1)
I, , the undersigned, having knowledge of the Developer's Agreement between the
City of Iowa City and A&M DEVELOPMENT II, LLC, dated , 2015, and the operations
of the Development Property, hereby certify the following;
1. All ad valorem taxes on the Development Property have been paid for the prior fiscal year,
as evidenced by the attached documentation; and
2. (A) I have re-examined the terms and provisions of the Development Agreement and can
affirm that during the preceding twelve (12) months, the Developer is not, or was not, in default in
the falfrllment of any of the terms and conditions of said Agreement (including but not limited to the
occupancy requirements of Section 3.3 thereto) and that no Event of Default (or event which, with
the lapse of time or the giving of notice, or both, would become an Event of Default) is occurring or
has occurred as of the date of this certificate.
OR
(B) the undersigned has re-examined the terms and provisions ofthe Development Agreement
and that at the date of this certificate, the undersigned is aware that the Developer is in default of the
Agreement for the following reasons:
; that the default
has existed since (date); and that the Developer is taking or proposes to take the
following action with respect thereto:
3. In the past year, processed tenant applications to ensure three
(3) Townhome units are occupied by households with incomes at or below 80% of the HUD -
established Area Median Income. As a result, the following units were rented for an average of at
least 11 of the preceeding 12 months at the following rates:
[list the number of each unit and
rental rate].
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WCOM. Mill
Sabin Townhomes
A&M Development II LLC
December 2014
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SITE: The project site is located on the block northwest of the Prentiss Street and Dubuque Street
intersection, and is located on the property to the west of the city alley on that block. The site houses
the old Sabin Elementary School and MidWestOnes Home Mortgage Center. The property is current
owned by the University of Iowa.
aneplaceat
Rlvertront Croesinp
SON STREET
Cfl, rllzan Sirxei
m ' PprklnpFaraity .
R
r
2
TOWnhomez
PRENTISS STR
'WO
T
CONCEPTUAL RENDERINGS
Looking East dawn Harrison $ireet
Looking Southwest of Dubuque and Harrison intersection
IM
TOWNHOME FLOOR PIANS
First Level - Lower Home Second Level - Lower Home
Third Level - Upper Home Fourth Level - Upper Home
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OUTLINE CHARACTERISTICS
Strudure/Ederior:
Wood fromed structure with fire and acoustic separation
Optimized insulation at walls and roof
Modular brick cladding and fiber -reinforced panels
Accent materials of decorative metol shingles and fiber cement panels
Aluminum -framed windows and doors
Access to structured parking direct from unit
Mechonlcal/Plumbing/Lighti ng:
High -efficiency electric heat pump heating and cooling system
Recessed and surface -applied track lighting with LED lamps
Polished -chrome plumbing fixtures selected for minimized water usage
Porcelain sinks and acrylic showers/tubs
Interiors:
ApproAnnotely 9'-0" ceilings
Daylight -filled interiors with smooth, painted finish on gypsum wall board
Solid surface countertops and decorative plastic laminate cabinets
EnergyStor appliances with stainless steel finish
Carpet and We flooring
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A
C-1
THIS AGREEMENT FOR PRIVATE REDEV1P1v OPMENT (hereinafter called
"Agreement"), is made on ores of the day of , 2015, by and among
the CITY OF IOWACITY OWA, a municipality (hereinafter alled "City"), established pursuant to
the Code of Iowa of the Sta of Iowa and acting under the aut orization of Chapter 403 of the Code
of Iowa, 2013, as amended ereinafter called "Urban Re ea'
Act") and A&M DEVELOPMENT
II LLC., having an office fa the transaction of business a 1310 Highland Court, Iowa City, Iowa
52240 (the "Developer").
WITNESSETH:
WHEREAS, in further ce of the objecti es of the Urban Renewal Act, the City has
undertaken a program for the vitalization of urban renewal area in the City and, in this
connection, is engaged in carryin out urbanrene al project activities in an area known as the City -
University Project I Urban Rene al Area, w 'ch area is described in the Urban Renewal Plan
approved for such area by Resoluti n No. 215 dated October 2, 1969, amended by Resolution No.
01-366, dated November 13, 2001; and by solution No. 12-459, dated October 23, 2012; and
WHEREAS, a copy of the for o g Urban Renewal Plan, as amended, has been recorded
among the land records in the office ofoe Recorder of Johnson County, Iowa; and
WHEREAS, the Deve:per
ns r has the right to occupy certain real property located in
the foregoing Urban Renewal mor particularly described in Exhibit A annexed hereto and
made a part hereof (which proso d cribed is hereinafter referred to as the "Development
Property"); and
WHEREAS, the Dewill cau a certain improvements known as the "Sabin
Townhomes" to be constructeDevelopm t Property and will cause the same to be operated
in accordance with this Agreed
WHEREAS, by Res ution No. 14-253 date ugust 19, 2014 the Urban Renewal Plan for
the University Project I Urbtn Renewal Area was ameAded to include a development agreement for
the Harrison Street Townh uses n/k/a Sabin To- m s as an urban renewal project; and,
WHEREAS, the City believes that the develop ent and continued operation of the
Development Property p rsuant to this Agreement and the fillment generally of this Agreement,
are in the vital and best ilterests of the City and in accord with a public purposes and provisions of
the applicable State at# local laws and requirements under wh' h the foregoing project has been
undertaken and is bei g assisted; and,
WHEREAS,LIre'City believes that the development pursuant to this Agreement aligns with
the goals of the Riverfront Crossings Master Plan and the provisions of the Riverfront Crossings
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Form Based Code because it will provide a Liner Building that will hide the east and south facades
of the parking structure from the public view with an innovative design that integrates the parking
facility with no common hallway elements, is part of a larger master planned project consisting of the
parking facility and a six story office building currently under construction on the corner of Clinton
and Dubuque Streets and provides three units of affordable using.
NOW, THEREFORE, in consideration of the pre ises and the mutual obligations of the
parties hereto, each of them do hereby covenant and a affordable/
with the other as follows:
ARTICLE I.
Section I.I. Definitions.
capitalized terms used and not oth
different meaning clearly appears
Agreement means this A
time be modified, amended or
addition to
Ze defined
the conte
Certificate of Completion means a
Exhibit C and hereby made a part of this
3.2 of this Agreement.
City means the City of Iowa City,
and all
Code means the Code of Iowa, 2013, as
definitions set forth in this Agreement, all
i shall have the following meanings unless a
hereto, as the same maybe from time to
. in the form of the certificate attached hereto as
provided to the Developer pursuant to Section
or any successor to its functions.
Construction Plans means the pl s, speci cations, drawings and related documents reflecting
the construction work to be perforZil-'ovements
the Dc- Loper on the Development Property and the other
properties upon which the Public ill be located; the Construction Plans shall be as
detailed as the plans, specificationdrawings an related documents which are submitted to the
building inspector of the City as re uired by applic ble City codes.
County means the County q/f Johnson, Iowa.
Developer means A&M
II,
Development Property eans that portion of the City` iversity Project 1 Urban Renewal
Area of the City described in xhibit A hereto.
Economic Develo m t Grants mean the Tax Increment payments -to be made by the City to
the Developer under Artic VIII of this Agreement.
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Event of Default means any of the events described in Section 10.1 of this Agreement.
First Mortgage means any Mor
tanted to secure any loan made pursuant to either a
mortgage commitment obtained by loper from a commercial lender or other financial
institution to fund any portion of the c costs and initial operating capital requirements of
the Minimum Improvements, or all sgages as appropriate.
A&M DEVELOPMENT II LLC TIF ACCOt
University Project 1 Urban Renewal T Increment
be deposited all Tax Increments received y the City
the Development Property described in hibit A.
Minimum Improvements shall me the const
with all related site improvements as outh ed in Ex
not include increases in assessed or actual alue due
Mortgage means any mortgage or
mortgage or other security interest in the
any improvements constructed thereon.
means a separate account within the City -
:nue Fund of the City, in which there shall
respect to the Minimum Improvements on
;tion of a new residential building, together
it B hereto. Minimum Improvements shall
market factors.
:ment in which the Developer has granted a
Property, or any portion or parcel thereof, or
Net Proceeds means any proceeds paid y an insurer to the Developer under a policy or
policies of insurance required to be provided maintained by the Developer, as the case may be,
pursuant to Article V of this Agreement fiandining after deducting all expenses (including fees
and disbursements of counsel) incurred ection of such proceeds.
Ordinance means Ordinance No. o the City, under which the taxes levied on the
taxable property in the City -University pUr an Renewal Area shall be divided and a portion
paid into the Iowa City Urban Renewalem t Revenue Fund.
Project shall mean the construe ion and
Development Property, as described iA this Ag
State means the State of
of the Minimum Improvements on the
City created under the authority of ection 403.19(2) of the Cp
created in order to pay the princi al of and interest on loans, .
whether funded, refunded, assn d or otherwise, including be
the authority of Section 403.9 or 403.12 of the Code, incurred
whole or in part projects undert en pursuant to the City -Univ
as amended.
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'und means the special fund of the
and the Ordinance, which fund was
,nies advanced to or indebtedness,
s or other obligations issued under
the City to finance or refinance in
Project 1 Urban Renewal Plan,
Tax Increments means the property tax revenues with respect to the Minimum Improvements
that are divided and made available to the City for deposit in, the City -University Project 1 Urban
Renewal Tax Increment Revenue Fund undert e provisions of Section 403.19 of the Code and the
Ordinance. j
Termination Date means the date o�termination of thi�Agreement, as established in Section
12.8 of this Agreement.
Unavoidable Delays means delays sulting from act or occurrences outside the reasonable
control of the party claiming the delay incl ding but not li ted to storms, floods, fires, explosions or
other casualty losses, unusual weather con 'tions, strikes, oycotts, lockouts or other labor disputes,
delays in transportation or delivery of mate'al or equip nt, litigation commenced by third parties,
or the acts of any federal, State or local go ental it (other than the City).
Urban Renewal Plan means the City- iversit Project 1 Urban Renewal Plan, as amended,
approved in respect of the City -University pro'ect 1 rban Renewal Area, described in the preambles
hereof.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
Section 2.1. Representations and W ties of the Ci1y. The City makes the following
representations and warranties:
(a) The City is a municipal co oration and political subdivision organized under the
provisions of the Constitution and the aws of t e State and has the power to enter into this
Agreement and carry out its obligationshereunder.
(b) The execution and d
contemplated hereby, and the ful
Agreement are not prevented by,
conditions or provisions of any,
instrument of whatever nature to i
constitute a default under any of t
Section 2.2. Covenants.
Developer makes the following
(a) Developer is a lin
laws of the State of Iowa and h�
to carry on its business as now
into and perform its obligation
V
of this Agre ent, the consummation of the transactions
ent of or compl ance with the terms and conditions of this
(tiractual
ted by, in conflitwith, or result in a breach of, the terms,
restriction, evidence of indebtedness, agreement or
ich the City is now a arty or by which it is bound, nor do they
foregoing.
and
ted liability company duly orga
all requisite power and authori
conducted and as presently prol
under the Agreement.
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Warranties of Developer. The
I and validly existing under the
own and operate its properties,
1 to be conducted, and to enter
(b) This Agreement has been duly and validly authorized, executed and delivered by the
Developer and, assuming due authorization, execution and delivery by the City, is in full force and
effect and is a valid and legally binding instrument of the Developer enforceable in accordance with
its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors' rights genera��,
(c) The execution and delivery
contemplated hereby, and the fulfillment
Agreement are not prevented by, limited b
terms, conditions or provisions of the cei
parents or subsidiaries of any contractu
instrument of whatever nature to which the
bound, nor do they constitute a default un
(d) There are no actions, suits or
Developer in any court or before any arbitr,
is a reasonable possibility of an adverse de(
(present or prospective), financial position
manner raises any questions affecting the
perform its obligations under this Agreem
(this Agreement, the consummation of the transactions
if or complrilh,
ce with the terms and conditions of this
, in conflict or result in a violation or breach of, the
ificate of in orporation and bylaws of Developer or its
1 restrictio , evidence of indebtedness, agreement or
Developer s now a party or by which it or its property is
r any of e foregoing.
J oceedi gs pending or threatened against or affecting the
t r orb ore or by any governmental body in which there
i'on w 'ch could materially adversely affect the business
res is of operations of the Developer or which in any
v id' y of the Agreement or the Developer's ability to
(e) Developer has not received any
activities of Developer with respect to the Dg
environmental law or regulation (other 1
been notified in writing). Developer is
planned to be filed by any party relating 1
law, regulation or review procedure app
currently aware of any violation of an
review procedure which would giv
environmental statute with respect th e
(f) Developer will coo
removal, excessive noise or pul
construction and operation of the
(g) Developer would
payment by the City of the Econ
this Agreement.
(h) The Developer
with the terms of this Agrees
and all local, State and feders
construct the Minimum Imnr
o any viq
cable to
local, S,
e from any local, State for federal official that the
iment Property may or will be in violation of any
notices, if any, of which the City has previously
fitly aware of any State or federal claim filed or
ation of any local, State or federal environmental
;he Development Property, and Developer is not
�te or federal environmental law, regulation or
any persok a valid claim under any State or federal
fate with the Cit in resolution of any traffic, parking, trash
safety problems which may arise in connection with the
mimum Improvem nts.
undertake its obliga 'ons under this Agreement without the
Development Grants eing made to the Developer pursuant to
�11 cause the Minimum Improv
:nt and when constructed will �co
laws and regulations, except for
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to be constructed in accordance
with the Urban Renewal Plan
races that may be necessary to
(i) The Developer will use its best efforts to obtain, or cause to be obtained, in a timely
manner, all required permits, licenses and approvals, and will meet, in a timely manner, all
requirements of all applicable local, State, and federal laws and regulations which must be obtained
or met in connection with the Project.
0) With the exception of the three t nhome units to
housing provider, the Developer shall not, 'or to the expirati
voluntarily permit the Development Property d/or Minimum Imt
taxable property by applying for or seeking industrial property t,
a utility or any other entity of a type where the assessed value of tax
treated as located within the Development Pr erty, by being own
status or by applying for or seeking for a d ferral, abatement o
pursuant to any present or future statute or or 'nance.
ARTICLE III. D
Section 3.1. Minimum Improvements.
The Developer agrees to complete Minimur
bedroom townhome units that will have direct ac4
facility with each unit to have a street level front en1
described in Exhibit `B" hereto. If three of the uni
provider pursuant to Section 3.3 hereof and are
construction of the Minimum Improvements
Development Property to at least $4,750,000 fo
have not been purchased by an affordable ho i
taxes, the construction of the Minimum Imp ve
be purchased by an affordable
pof this agreement, cause or
vements to become other than
(exemption, by being owned by
ble property of such entity is not
by any entity having tax exempt
exemption from property tax
*ovements generally consisting of 28 two
via a back door to the City -owned parking
v and no common hallways, all as more fully
ve been purchased by an affordable housing
pt from the payment of property taxes, the
.ncrease the actual assessed value of the
the J ary 1, 2017 assessment. If three of the units
in prov er and are not exempt from the payment of
ments niust increase the actual assessed value of the
Development Property to at least $5,320,0 0 for the ass s
Section 3.2. Certificate of Com etion.
Upon written request of the Deve oper after issuance
Improvements the City will furnish th Developer with a C
in recordable form, in substantially th form set forth in Ex
of Completion shall be a conclusive etermmation of satis
conditions of this Agreement solely ith respect to the oblil
portion of the Minimum Improve nts.
on January 1, 2017.
'an occupancy permit for the Minimum
ificate of Completion for such portion
it C attached hereto. Such Certificate
ry termination of the covenants and
i s of the Developer to construct such
A Certificate of Completion may fe recorded in the proper office or the recordation of deeds and
other instruments pertaining to # Development Property at the veloper's sole expense. If the
City shall refuse or fail to providq a Certificate of Completion in accordance with the provisions of
this Section 3.2, the City shall kithin twenty (20) days after written request by the Developer,
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provide the Developer with a written statement indicating with adequate detail, in what respects the
Developer has failed to complete the Minimum Improvements in accordance with the provisions of
this Agreement, or is otherwise in default under the terms of this Agreement, and what measures or
acts will be necessary in the opinion of the City, to obtain such Certificate of Completion.
Section 3.3. Affordable Housing.
On or before January 1, 2017 Deloper shall sell three of t townhome units to an affordable
housing provider approved by the Ci for the purpose of pir idi g rental housing for households at
or below 80% of median income. e price of each unit shal not exceed $190,000. The rent in
those units shall not exceed the fair arket rent established by he U.S. Department of Housing and
Urban Development (HUD) for the OME program. In the vent there is not an affordable housing
provider ready, willing and able to p rchase said units, De eloper agrees to rent three units at rates
equal to or less than 80% of the OME Fair Market ent rate established by HUD. Rental
applications for these three units shal be processed thr ugh The Housing Fellowship, which will
perform third -party verification of h Behold incom to ensure the three units are occupied by
households with incomes at or below 8 % of the HU -established Area Median Income, pursuant to
an agreement between the Developer an The Hou ng Fellowship, which shall remain in full force
and effect until the Termination Date of is Agr ement. These three units shall be leased by such
income -qualified tenants as described abo a for average of 11 months per calendar year. (In 2014,
80% of the HUD -established Area Medi In me is $44,550 for a 1 -person household, and $50,
900 for a 2 -person household, and 80% of HOME Fair Market Rent is $668 per month for a 1
bedroom and $851 for a 2 -bedroom.
Section 5.1.
(a) Upon completion of
to the Termination Date, the Dev
expense (and from time to time//
premiums on) insurance as folloy
ARTICLE XV. RESERVED
ART CLE V. INSURANCE
u' ements.
nstruction of th Minimum Improvements and at all times prior
oper shall maint in, or cause to be maintained, at its cost and
it the request of th City shall furnish proof of the payment of
(i) Insurance gainst loss and/or damao to the Minimum Improvements under a
policy or policies covering suc risks as are ordinarily insu d through property policies against risk
by similar businesses, includi g (without limitation the gen rality of the foregoing) fire, extended
coverage, vandalism and m icious mischief, explosion, w er damage, demolition cost, debris
removal, and collapse in amount not less than the full insurable replacement value of the
Minimum Improvements, b t any such policy may have a deductible amount of not more than
$250,000. No policy of ins ance shall be so written that the proceeds thereof will produce less than
the minimum coverage req ired by the preceding sentence, by reason of co-insurance provisions or
Aff`
otherwise, without the prior consent thereto in writing by the City. The term "full insurable
replacement value" shall mean the actual replacement cost of the Minimum Improvements
(excluding foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be determined from time to time at the request of the
City, but not more frequently than once every three years, by an insurance consultant or insurer
selected and paid for by the Developer and approved by the City.
(ii) Comprehensive general public liability insurance/in'luding personal injury
liability for injuries to persons and/or roperty, including any injuries reng from the operation of
automobiles or other motorized vehic s on or about the Developmenperty, in the minimum
amount for each occurrence and for eac year of $1,000,000.
(iii) Such other insurance, 1 cluding worker's compe ation insurance respecting all
employees of the Developer, in such amou t as is customarily cam by like organizations engaged
in like activities of comparable size and lia Rity exposure;
pro
that the Developer maybe self-
insured with respect to all or any part of its iability for worker' compensation.
(b) All insurance required by this icle V to be p vided prior to the Termination Date
shall be taken out and maintained in respons Ile
insuranc companies selected by the Developer
which are authorized under the laws of the St e of Iowa t assume the risks covered thereby. The
Developer will deposit annually with the City pies of licies evidencing all such insurance, or a
certificate or certificates or binders of the respe tive in rers stating that such insurance is in force
and effect. Unless otherwise provided in this c
insurer shall not cancel or modify it without givi
least thirty (30) days before the cancellation or mo
(15) days prior to the expiration of any policy
satisfactory to the City that the policy has been r i
the provisions of this Article V, or that there is o:
of separate policies, the Developer may maint in a
combination thereof, which provide the tota coves
shall deposit with the City a certificate or rtifica
coverage in force upon the Minimum Im oveme;
each policy shall contain a provision that the
-itten notice to the Developer and the City at
ation becomes effective. Not less than fifteen
Developer shall furnish the City evidence
1 or replaced by another policy conforming to
:ssity therefor under the terms hereof. In lieu
;le policy, or blanket or umbrella policies, or a
1�equired herein, in which event the Developer
the respective insurers as to the amount of
(c) The Developer agrees to nfitify the City imm diately in the case of damage exceeding
$250,000 in amount to, or destructio of, the Minimum provements or any portion thereof
resulting from fire or other casualty. et Proceeds of any suI
ce shall be paid directly to the
Developer, and the Developer wi forthwith repair, ret and restore the Minimum
Improvements to substantially the s e or an improved condalue as they existed prior to the
event causing such damage and, to t e extent necessary to acsuch repair, reconstruction and
restoration, the Developer will ap ly the Net Proceeds of ance relating to such damage
received by the Developer to the ayment or reimbursemenosts thereof.
A]
(d) The Developer shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether the Net Proceeds of insurance received by the Developer for such
purposes are sufficient.
ARTICLE VI. COVENANTS OF
Section 6.1. Maintenance of Pro ties. The Developer will maintain, preserve and keep
the Minimum Improvements in good repair and working order,ordinary wear and tear accepted, and
from time to time will make all necessary mpairs, replacements, renewals and additions.
Section 6.2. Maintenance of Rea
record and account in which full, true
transactions of or in relation to the bu;
generally accepted accounting principles,
the Developer will provide reasonable prc
account.
The Developq will keep at all times proper books of
correct entr s will be made of all dealings and
and affairs f the Developer in accordance with
istently app ed throughout the period involved, and
in against 1 ss or damage to such books of record and
Section 6.3. Compliance with Laws. The Dev loper will comply with all laws, rules and
regulations relating to the Minimum Improv ents, of er than laws, rules and regulations the failure
to comply with which or the sanctions and pen lties r sulting therefrom, would not have a material
adverse effect on the business, property, oper tion , or condition, financial or otherwise, of the
Developer.
Section 6.4. Non -Discrimination. In
shall not discriminate against any applicant,
religion, sex, national origin, sexual orientatioi
Developer shall ensure that applicants, emplo}
regard to their race, creed, color, religion, sei
marital status or gender identity.
Section 6.5. RESERVED.
ng the Minimum Improvements, the Developer
)yee or tenant because of race, creed, color,
disability, marital status or gender identity. The
d tenants are considered and are treated without
anal origin, sexual orientation, age, disability,
Section 6.6. Annual Certificat/ed
o assist th City in monitoring and performance of the
Developer hereunder, a duly authorizcer of the D veloper shall annually provide to the City:
(a) proof that all ad valorem taxes onevelopment operty have been paid for the prior fiscal
year•, and (b) certification that sucer has re -ex ined the terms and provisions of this
Agreement and that at the date of sucficate, and duri the preceding twelve (12) months, the
Developer is not, or was not, in defahe fulfillment o any of the terms and conditions of this
Agreement and that no Event of Deor event which, 'th the lapse of time or the giving of
notice, or both, would become an Ef Default) is occu 'ng or has occurred as of the date of
such certificate or during such periodthe signer is aware o any such default, event or Event of
Default, said officer shall disclose instatement the nature t 'ereof, its period of existence and
what action, if any, has been taken orposed to be taken with respect thereto. Such statement,
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proof and certificate shall be provided not later than November 1 of each year, commencing
November 1, 2017, and ending on November 1, 2029 both dates inclusive. Upon certification by the
Developer on or before November 1, 2017 ity will calculate an increment in accordance with
the Ordinance, which establishes a bas slue as of January 1, 2011.
Section 6.7 Taxation of Develdi
units to be purchased by an afforda
expiration of this agreement, cause or
Improvements to become other than t
exemption, by being owned by a utilit
taxable property of such entity is not tr
owned by any entity having tax exempt
or exemption from property tax pursua
ARTICLE VII.
lent Propert-. ith the exception of the three townhome
housing provi er, the Developer shall not, prior to the
untarily permit a Development Property and/or Minimum
ible property applying for or seeking any property tax
or any other tity of a type where the assessed value of
ted as locate within the Development Property, by being
tus or by ap lying for or seeking for a deferral, abatement
to any pres nt or future statute or ordinance.
L IGNM NT AND TRANSFER
Section 7.1. Status of the Develo er•
obligations of the Developer under this Agre
the issuance of the Certificate of Completion
maintain existence as an adequately -capital
dispose of all or substantially all of the De
assign its interest in this Agreement to
corporation, limited liability company or in
Developer under this Agreement and (ii) th
which case the Developer may be releas
foregoing, however, or any other provis'
interest in and to this Agreement to any a li
re of SubstantiallyAll Assets. As security for the
e t, the Developer represents and agrees that, prior to
prior to the Termination Date, the Developer will
iz corporation and will not wind up or otherwise
De)
ment Property and Minimum Improvements, or
her party unless (i) the transferee partnership,
vi du 1 assumes in writing all of the obligations of the
City nsents thereto in writing in advance thereof, in
d of its obligations hereunder. Notwithstanding the
ns of thi Agreement, (a) Developer may transfer its
ate which is controlled by, under common control with
or controls Developer or to any entity that acquires 11 or substantially all of the assets of the
Developer or to any corporate successor to Developer by onsolidation, merger, or otherwise, and (b)
the Developer may (1) pledge any d/or all of its as ets as security for any financing of the
Minimum Improvements; (2) assign i rights under this eement to a third party, provided such
assignment shall not release the De eloper of its obligati ns hereunder, and the City agrees in
writing that Developer may assign it interest under this A eement for such purpose; and (3) the
Developer may transfer its owners ip interest to a third -p y under an arrangement whereby
Developer will lease the Developm t Property back and conti a to satisfy the requirements of this
Agreement.
ARTICLE VIIII ECON
Section 8.1. Economic De elo ment Grants. (a) For and in co sideration of the obligations
being assumed by the Developer hereunder, and in furtherance of the oals and objectives of the
Urban Renewal Plan and the Ur4n Renewal Act, the City agrees to mak up to thirteen (13) annual
Economic Development Grantsl to the Developer, subject to the DeveNper having received a
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Certificate of Completion and being and remaining in compliance with the terms of this Agreement
and subject to the terms of this Article VIII. The annual grants shall commence on June 1, 2019 and
end on June 1, 2031, or when the total of all grants is equal to $976,277, whichever is earlier. All
annual grants shall be equal to one hundr percent (100%) per fiscal year of the Tax Increments
(unless the total grant amount of $976, 7 is reached first) colle ted by the City with respect to the
Minimum Improvements on Develop ent Property pursuant to lection 403.9 of the Urban Renewal
Act under the terms of the Ordinance ( ithout regard to any aver ging that may otherwise be utilized
under Section 403.19 and excluding y interest that may acc a thereon prior to payment to the
Developer) during the preceding twel -month period in respe of the Development Property and
the Minimum Improvements, but subje t to adjustment and con itions precedent as provided in this
Article (such payments being referred t collectively as the "Ebonomic Development Grants").
(b) The obligation of theCity to ake an Economi Development Grant to the Developer
in any year as specified above shall be s bject to and con itioned upon the timely filing by the
Developer of all previous annual statemen\on
ofs and c ifications required under Section 6.6
hereof and the City Manager's approval theich will of be unreasonably withheld. Beginning
with the November 1, 2017 certification, if eloper' annual statement, proof and certification
is timely filed and contains the informatuired nder Section 6.6 and the City Manager
approves of the same, the City shall certify ounty prior to December 1 of that year its request
for the available Tax Increments resulting asse sments imposed by the County as of January
1 of that year, to be collected by the City as re p d during the following fiscal year and which
shall thereafter be disbursed to the Developune of the following fiscal year. (For example, if
the Developer and the City each so certify er and December 2017, respectively, the first
Economic Development Grant would be pDeveloper on June 1, 2019).
(c) In the event that the annual stateme roof or certificate required to be delivered by
the Developer under Section 6.7 is not deliver d the City by November 1 of any year, the
Developer recognizes and agrees that the City in y ha insufficient time to review and approve the
same and certify its request for Tax Increment to the County and that, as a result, no Economic
Development Grant may be made to the Devel per in re pect thereof. The City covenants to act in
good faith to appropriately review and consid r any late ertification on the part of the Developer,
but the City shall not be obligated to make y certifica 'on to the County for the available Tax
Increments or make any corresponding p ent of the conomic Development Grant to the
Developer if, in the reasonable judgment of e City, itis not ble to give appropriate consideration
(which may include, but not be limited to, pecific discussio before the City Council at a regular
City Council meeting with respect thereto to the Developer's rtification due to its late filing. In
the event Developer fails to timely fil an annual statemen proof or certificate due to an
Unavoidable Delay and, as a result, an E onomic Developmentant cannot be make, Developer
may give written notice to the City an , if the City finds that D veloper's failure is due to an
Unavoidable Delay, the missed Econom' Development Grant shall b made in the year succeeding
the last scheduled Economic Develop nt Grant under Section 8.1, s bject to Developer's filing
under Section 6.6 and all other provisio s of this Article VIII with respec o such grant, it being the
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intention of the parties to allow up to thirteenAJ3) annual Economic Development Grants in an
aggregate amount not to exceed $976,277 if Developer is in compliance with this Agreement.
(d) The total, aggregate amount Pf all Economic De
shall not exceed $976,277. Each Ec nomic Developme
percent (100%) of all Tax Increments ollected per fiscal y
on the Development Property and Mi um Improvement
of each of the following thirteen (1 years, until the
Development Grants equals no more th the sum of $976,
necessary, if payment of 100% of Tax crements for th
Economic Development Grants in an unt exceeding $
Grants shall at all times be subject to t ination in accor
and Article X. Thereafter, the taxes 1 vied on the
Improvements shall be divided and appli in accordan
Ordinance. It is recognized by all parties that the tota
maximum amount only and that the actual pa ent amo
Improvements are completed and the valuatio s of said
City Assessor.
(e) In the event that any certificate if
information available to the City discloses the e
that was not cured or cannot reasonably be cured
that, with the passage of time or giving of notice,
cannot reasonably be cured under the provisions c
thereafter to make any further payments to the De,
Grants and may proceed to take one or more of tl�
I
lopment Grants under this Agreement
n Grant shall be equal to one hundred
e in respect of the assessments imposed
s as of January 1, 2017, and on January 1
tal, aggregate of all such Economic
77. The final grant shall be adjusted, if
grant would result in total, aggregate
76,277. Such Economic Development
ance with the terms of this Article VIII
evelopment Property and Minimum
e with the Urban Renewal Act and the
aggregate amount set forth above is a
is will be determined after the Minimum
provements have been determined by the
the Developer under Section 6.6 or other
te or prior occurrence of an Event of Default
er the provisions of Section 10.2 (or an event
both, would become an Event of Default that
ection 10.2), the City shall have no obligation
9per in respect of the Economic Development
ions described in Section 10.2 hereof.
Section 8.2. Source of Grant Funds Limit (a) a Economic Development Grants shall be
payable from and secured solely and only by amo nts deposited and held in the A&M
DEVELOPMENT II, LLC TIF Account of t e City. e City hereby covenants and agrees to
maintain the Ordinance in force during the to hereof and apply the incremental taxes collected
in respect of the Minimum Improvements an allocated to th A&M DEVELOPMENT II, LLC TIF
Account to pay the Economic Developmen Grants, as and the extent set forth in Section 8.1
hereof. The Economic Development Gr is shall not be pa able in any manner by other tax
increment revenues or by general taxation r from any other Cit funds.
(b) Notwithstanding the prc
to make an Economic Development C
City receives an opinion of its legal
jurisdiction over the subject matter he
the Minimum Improvements to fun
contemplated under said Section 8. 1,
permitted to be undertaken by the Cit,
'isi ns of Section 8.1 hereof, t e City shall have no obligation
to the Developer if at any tiNe during the term hereof the
c unsel or a controlling decisio of an Iowa court having
f to the effect that the use of Tax fivcrements resulting from
an Economic Development Grant 'to the Developer, as
not authorized or otherwise an appropriate project activity
under the Urban Renewal Act or other applicable provisions
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of the Code, as then constituted.
promptly forward a copy of the &
giving rise to the opinion or de
Development Grants would other
8. 1, the City may terminate this A
written notice to the Developer.
�pon receipt of s
h an opinion or decision, the City shall
.e to the Developer.
If the circumstances or legal constraints
ion continue for a
eriod during which two (2) Economic
3e have been paid to
a Developer under the terms of Section
-ement, without pena ty or other liability to the Developer, by
(c) The City makes no represeA
the Developer as the Economic Devel
any manner be liable to the Developer
collected and held in the A&M DEVI
thereof) to the payment of the Econon
described in this Article.
ion with respect to
he amounts that may finally be paid to
ment Grants, and u
der no circumstances shall the City in
long as the City tim ly applies the Tax Increments actually
)PMENT II, LLC
IF Account (regardless of the amounts
pevelopment Gr
s to the Developer, as and to the extent
Section 8.3. Use of Other Tax Increntnt
use any and all Tax Increments collected in e
Property unrelated to construction of the M'
value due to market factors) any other prop
Increments resulting from the suspension or ter.
Section 8.1 hereof, for any purpose for which t
the provisions of the Urban Renewal Act, and
with respect to the use thereof.
ARTICLE IX.
Section 9.1.
(a) The Developer releases the City
servants and employees thereof (hereinafter,
parties") from, covenants and agrees that the in
indemnify, defend and hold harmless the Inde
or any injury to or death of any person occ
Minimum Improvements.
Subject tk this Article VIII, the City shall be free to
ect of in reases in valuation on the Development
111111 pro ements (i.e. increases in assessed or actual
-s wit n the Project Area, or any available Tax
natio of the Economic Development Grants under
Tax crements may lawfully be used pursuant to
� Ci shall have no obligations to the Developer
theoverning body members, officers, agents,
pure es of this Article IX, the "indemnified
iified arties shall not be liable for, and agrees to
;d parti against, any loss or damage to property
at or ab ut or resulting from any defect in the
(b) Except for any willful misre resentation or any llful or wanton misconduct or any
unlawful act of the indemnified parties, th Developer, or its succ ssors or assigns, agrees to protect
and defend the indemnified parties, now r forever, and further agr s to hold the indemnified parties
harmless, from any claim, demand, suit action or other proceedin whatsoever by any person or
entity whatsoever arising or purportedl arising from (i) any violation f any agreement or condition
of this Agreement (except with respe to any suit, action, demand or ther proceeding brought by
the Developer against the City to enf rce his rights under this Agreeme t), (ii) the acquisition and
condition of the Development Prop y and the construction, installation, wnership, and operation
of the Minimum Improvements or iii) any hazardous substance or enviro ental contamination
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located in or on the Development Property relating to conditions caused by Developer after the
effective date of this Agreement.
(c) The indemnified parties shall not be liable for y damage or injury to the persons or
property of the Developer or its offi rs, agents, servants or ployees or any other person who may
be on or about the Minimum Impr ements due to any act o negligence of any person, other than
any act of negligence on the part o any such indemnified por its officers, agents, servants or
employees. ry
(d) All covenants, stipulatiolpromises, agreem is and obligations of the City contained
herein shall be deemed to be the covens, stipulations, pr ises, agreements and obligations of the
City, and not of any governing body me ber, officer, age , servant or employee of the City in the
individual capacity thereof.
(e) The provisions of this Articl$ IX shall
ARTICLE X.
Section 10.1. Events of Default D
this Agreement and the term "Event of D
any one or more of the following events:
(a) Failure by the Developer to cause
commenced and completed pursuant to the to
Agreement;
(b) Transfer of any interest in this
the provisions of Article VII of this Agreer.
(c) Failure by the Developer to s
obligation or agreement on its part to be o
(d) If the holder of any M
thereon, or any portion thereof, come
the applicable Mortgage documents;
(e) If the Developer shall:
(A) file any petiti
composition, readjustment, liquida
Bankruptcy Act of 1978, as amende
the termination of this Agreement.
kollowing shall be "Events of Default" under
mean, whenever it is used in this Agreement,
onstruction of the Minimum Improvements to be
conditions and limitations of Article III of this
or the assets of the Developer in violation of
illy�bserve or perform any covenant, condition,
or p4tormed under this Agreement;
tga a on the Dev opment Property, or any improvements
nc s foreclosure pr\eedns a result of any default under
in bankruptcy oeorganization, arrangement,
�n, dissolution, orief under the United States
or under any similastate law; or
(B) make an assign ment for the benefit of its creditorN or
C-15
(C) admit in writing its inability to pay its debts generally as they become due; or
(D) be adjudicatCa/pt or insolvent; or if a petition or answer proposing the
adjudication of the Developer as aor its reorganization under any present or future federal
bankruptcy act or any similar fedte law shall a filed in any court and such petition or
answer shall not be discharged orin ninety (9 ) days after the filing thereof; or a receiver,
trustee or liquidator of the Devee Minimum Improvements, or part thereof, shall be
appointed in any proceedings brst the Devel per, and shall not be discharged within
ninety (90) days after such appoiif the Develo er shall consent to or acquiesce in such
appointment; or
(f) If any representation orarranty made by t e Developer in this Agreement, or made by
the Developer in any written stateme or certificate ished by the Developer pursuant to this
Agreement, shall prove to have been in orrect, incomp to or misleading in any material respect on
or as of the date of the issuance or make g thereof.
Section 10.2. Remedies on Default. Whenevo any Event of Default referred to in Section
10.1 of this Agreement occurs and is con 'nuing,
more of the following actions after (excep in the
or (e) of said Section 10.1 in which case ac ion m
days' written notice by the City to the Devel per a
extent the City has been informed in writing f
with the address of the holder thereof) of the E e
not been cured within said thirty (30) days, f
within thirty (30) days and the Developer does o
City that the Event of Default will be cured c
(a) The City may suspend its
assurances from the Developer, deemed
and continue its performance under this
(b) The City may terminate
th City, as specified below, may take any one or
c se of an Event of Default under subsections (d)
be taken immediately) the giving of thirty (30)
d the holder of the First Mortgage (but only to the
existence of a First Mortgage and been provided
at of Default, but only if the Event of Default has
the Event of Default cannot reasonably be cured
provide assurances reasonably satisfactory to the
as reasonably possible:
nce under this Agreement until it receives
the City, that the Developer will cure its default
(c) The City may withhold th�b Certificate 0 Completion;
(d) The City may take any
may appear necessary or desirable
agreement, or covenant of the Devel
(e) The City shall be ent
to the City, an amount equal to the
)n, including le al, equitable or administrative action, which
enforce perfoance and observance of any obligation,
r, as the case ma be, under this Agreement; or
I to recover from the
st recent Economic l
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, and the Developer shall re -pay
nt Grant previously made to the
Developer under Article VIII hereof, and the City may take any action, including any legal action it
deems necessary, to recover such amount from the Developer.
Section 10.3. No Remedy Exclusive. No remedy hereiIdlay
ferred upon or reserved to the City
is intended to be exclusive of any other av 'able remedy ordies, but each and every remedy
shall be cumulative and shall be in additi n to every other ry given under this Agreement or
now or hereafter existing at law or in equi y or by statute. No or omission to exercise any right
or power accruing upon any default shall mpair any such righower or shall be construed to be a
waiver thereof, but any such right and po ermaybeexercisem time to time and as often as may
be deemed expedient.
Section 10.4. No ImpliedWaiver. In the event any agreement contained in this Agreement
should be breached by any party and th eafter waived y any other party, such waiver shall be
limited to the particular breach so waived d shall not a deemed to waive any other concurrent,
previous or subsequent breach hereunder.
Section 10.5. Agreement to Pay A me s' F es and Expenses. Whenever any Event of
Default occurs and the party who is not in de cult sha employ attorneys or incur other expenses for
the collection of payments due or to bec me d or for the enforcement or performance or
observance of any obligation or agreement o the art of the party in default herein contained, the
party in default agrees that it shall, on demand ther for, pay to the party not in default the reasonable
fees of such attorneys and such other expense may be reasonably and appropriately incurred by
the party not in default in connection therewit .
ARTICLE XI. OPTION
Section 11.1. Option to Terminate. s eement may be terminated by the Developer if (i)
the Developer is in compliance with all ma erial erms of this Agreement and no Event of Default
has occurred which has not been cured in a ord ce with the provisions of Section 10.2 hereof; and
(ii) the City fails to comply with any mat al term f this Agreement, and, after written notice by the
Developer of such failure, the City has fa' ed to cur such noncompliance within ninety (90) days of
receipt of such notice, or, if such nonc pliance annot reasonably be cured by the City within
ninety (90) days of receipt of such otice, the 'ty has not provided assurances reasonably
satisfactory to the Developer that such oncomplianc will be cured as soon as reasonably possible.
Section 11.2. Effect of TeTparty,
. If this Agr ent is terminated pursuant to this Article
XI, this Agreement shall be from forward null d void and of no further effect; provided,
however, that the City's rights toication under icle IX hereof shall in all events survive
and provided further that the terf this Agreemen shall not affect the rights of any party to
institute any action, claim or dedamages suffere as a result of breach or default of the
terms of this Agreement by anotor to recover amoun which had accrued and become due
and payable as of the date of sation. In any such a tion, the prevailing party shall be
entitled to recover its reasonable attorneys fees and related expenses incurred in connection therewith
C-17
(but only, in the case of the City, to the extent permitted by Oplicable law). Upon termination of
this Agreement pursuant to this Article XI, the Develop' shall be free to proceed with the
construction and operation of the Minimum Improvements at s own expense and without regard to
the provisions of this Agreement.
ARTICUE XII. MIS
Section 12.1. Conflict of Int ere t. The Developer r resents and warrants that, to its best
knowledge and belief after due inquiry, o officer or emplo a of the City, or its designees or agents,
nor any consultant or member of the go ing body of the City, and no other public official of the
City who exercises or has exercised an functions or res onsibilities with respect to the Project
during his or her tenure, or who is in a po ition to partici to in a decision-making process or gain
insider information with regard to the Proj t, has had or all have any interest, direct or indirect, in
any contract or subcontract, or the proce s thereof, r work or services to be performed in
connection with the Project, or in any activi , or bene therefrom, which is part of the Project at
any time during or after such person's tenure.
Section 12.2. Notices and Demands. A
Agreement by any party to the other shall be
registered or certified mail, postage prepaid, re
demand or other communication under this
fitly given or delivered if it is dispatched by
eipt requested, or delivered personally, and
(a) In the case of the Developer, Mike Hahn, A&M Development II, LLC, 1310
Highland Court, Iowa City, Iowa 52245. /\
(b) In the case of the City,
Iowa, 52240, Attn: City Manager;
or to such other designated individual or to
the other in writing in accordance herewith.
Hall, 410 E. Washington Street, Iowa City,
other kddress as any party shall have furnished to
Section 12.3. Titles of Articles and tections. An titles of the several parts, Articles, and
Sections of this Agreement are inserted for ionvenience of ference only and shall be disregarded in
construing or interpreting any of its provi ons.
Section 12.4. Counterparts. This 4greement may be ex cuted in any number of counterparts,
each of which shall constitute one and t e same instrument.
Section 12.5. Governing Law. Tis Agreement shall be gov1rned and construed in accordance
with the laws of the State of Iowa. \
Section 12.6. Entire Agreemeit. This Agreement and the ex bits hereto reflect the entire
agreement between the parties regar ing the subject matter hereof, anupersedes and replaces all
C-18
prior agreements, negotiations or discussions, whether oral or written. This Agreement may not be
amended except by a subsequent writing signed by all, parties hereto.
Section 12.7. Successors and Assn s. This Ag�eement is intended to and shall inure to the
benefit of and be binding upon the paAies hereto and i�eir respective successors and assigns.
Section 12.8. Termination D te. This Agr
effect on and after June 1, 2027,r upon final
whichever is sooner.
Section 12.9 Recording. T s Agreement s
Office, Iowa City, within 30 days Of execution at
shall terminate and be of no further force or
nt of the Economic Development Grants,
be recorded at the Johnson County Recorder's
expense of the Developer.
IN WITNESS WHEREOF, t e City has c sed this Agreement to be duly executed in its
name and behalf by its Mayor and its seal to be h eunto duly affixed and attested by its City Clerk,
and the Developer has caused this A eement to a duly executed in its name and behalf by A&M
DEVELOPMENT, II, L.L.C.
C-19
(SEAL)
ATTEST:
By:
City Clerk
A&M DEVELOPMENT II, LLC
By:
STATE OF IOWA
COUNTY OF JOHNSON
On this day of
for said County, personally appeared Matt
known, who being duly sworn, did say that
City of Iowa City, Iowa, a Municipal Corpoi
Iowa, and that the seal affixed to the foregoij
and that said instrument was signed and seal
and resolution of its City Council and said 1v
the free act and deed of said Municipal Cor
STATE OF
COUNTY OF
CITY OF IOWA CITY, IOWA
By:
Mayor
Approved by
City Attorne
OF IOWA/ CITY
ff.�_, 20_, before me a Notary Public in and
J. Hayek and Marian K. Karr, to me personally
are the Mayor and City Clerk, respectively of the
, created and existing under the laws of the State of
trument is the seal of said Municipal Corporation,
behalf of said Municipal Corporation by authority
d City Clerk acknowledged said instrument to be
i by it voluntarily executed.
Notary �ublic in and for the State of Iowa
)SS
This instrument was acknowledged efore me on this da of , 2014, by
S Y
, as manager of A&M 4EVELOPMENT II, L C.
Notary Public in
C-20
the State of Iowa
EXHIBIT A
DEVELOPMENT PROPERTY
The Development Property is
land located in the City of Iowa City,
as follows:
Lots 1-4 in Block 8, County
A as consisting o all that certain parcel or parcels of
of Johnson, State Of Iowa, more particularly described
Addition to Iowa
C-21
Johnson County, Iowa
The Developer agrees to co
$6,986,549 in improvements to tha
Street and Prentiss Street, which i
townhome units. There shall be
approximately 1,135 SF and 1,42
building on the East and South side
all units will have a street level fro
the City parking facility that will b
Each unit will have the option to rec
in said facility on an annual basis at
on or before June 1 st of each year. P
failure to make payment shall result
EXHIBIT B
lete M/kia
Improvements generally consisting of at least
portioe evelopment Property located along Dubuque
provems 11 include the construction of 28 two bedroom
14 lowi and 14 upper units with net square feet of
SF rely. The townhome units will serve as a liner
of the pat.facility. There will be no common hallways and
entranac unit will have direct access via a back door to
constrin connection with the minimum improvements.
ive a pfrom the City for a maximum of two parking stalls
he ratey the City. The option must be exercised annually
ymene space(s) shall be made quarterly or annually and
n losse right to reserve said space(s).
Each townhome unit will incl de p vate outdoor space in the form of a balcony or garden
terrace. The townhomes will in clu a gh efficiency heating and cooling units and low flow
plumbing fixtures. The exterior clad in of the building shall be a recycled by product of the rice
milling industry. The improvements s all be built in conformity with the site layout, conceptual
renderings and floor plans attached h to as Exhibit "E".
On or before January 1, 2017 D Ael(
housing provider approved by the Ci fer
or below 80% of median income. e I
those units shall not exceed the fai in e
Urban Development (HUD) for th HO ]
provider ready, willing and able t purch
equal to or less than 80% of t e HOM
applications for these three unit shall be
perform third -party verificatio of house
)per shall sell three of the townhome units to an affordable
the purpose of providing rental housing for households at
-ice of each unit shall not exceed $190,000. The rent in
t rent established by the U.S. Department of Housing and
program. In the event there is not an affordable housing
.se said units, Developer agrees to rent three units at rates
Fair Market Rent rate established by HUD. Rental
rocessed through The Housing Fellowship, which will
;h
Id income to ensure the three units are occupied by
households with incomes at or elow 800N o the HUD -established Area Median Income, pursuant to
an agreement between the Dev lop er and Th Housing Fellowship, which shall remain in full force
and effect until the Terminati n Date of this greement. These three units shall be leased by such
income -qualified tenants as d cribed above fo an average of 11 months per calendar year. (In 2014,
80% of the HUD -established Area Median Inc me is $44,550 for a 1 -person household, and $50,
900 for a 2 -person househol , and 80% of the OME Fair Market Rent is $668 per month for a 1
bedroom and $851 for a 2-b droom.
If three of the townhortodn'its have been purcNased by an affordable housing provider and are
exempt from the payment of property taxes, the cons ction of the Minimum Improvements must
C-22
increase the actual assessed value of the
1, 2017 assessment. If three of the units
and are not exempt from the payment
increase the actual assessed value f
assessment on January 1, 2017.
ve not been
,es, the con;
the
C-23
>erty to at least $4,750,000 for the January
;based by an affordable housing provider
tion of the Minimum Improvements must
Property to at least $5,320,000 for the
EXHIBIT C
WHEREAS, the City of Iowa Ci Iowa (th(
having an office for the transaction ofb- iness at
"Developer"), did on or about the ay of Jai
the other, an Agreement for Private Red velopmei
Developer agreed, in accordance with the terms of
real property located within the City and s more I
WHEREAS, the Agreement in
respect to the development of the De
certain Minimum Improvements (as
WHEREAS, the Developer has to tt
insofar as they relate to the construction of
City to be in conformance with the approve
this certification.
NOW, THEREFORE, pursuant
covenants and conditions of the Agree
successors and assigns, to construct
been completed and performed by
terminated insofar as they apply to
County is hereby authorized to accel
conclusive determination of the sa
Agreement with respect to the co
Property.
ie land
for rec(
"City") and A&M DEVELOPMENT II, LLC.,
Iowa City, Iowa 52245 (the
uary, 2015, make, execute and deliver, each to
t (the "Agreement"), wherein and whereby the
he Agreement, to develop and maintain certain
articularly described as follows:
contained certain covenants and restrictions with
perty, and obligated the Developer to construct
i) in accordance with the Agreement; and
-.sent date performed said covenants and conditions
Minimum Improvements in a manner deemed by the
ilding plans to permit the execution and recording of
a 3.2 of the Agreement, this is to certify that all
respect to the obligations of the Developer, and its
i Improvements on the Development Property have
,r and are hereby released absolutely and forever
ribed herein. The County Recorder of Johnson
Tand to record the filing of this instrument, to be a
at
of the covenants and conditions of said
ion of the
All other provisions of thq Agreement shall
termination as provided therein.
(SEAL)
ATTEST:
CITY OF IOV
By:
Mayor
C-24
Improvements on the Development
remain in full force and effect until
CITY, IOWA
City Clerk
STATE OF IOWA
COUNTY OF JOHNSON
On this day of
for said County, personally appear
known, who being duly sworn, did s
City of Iowa City, Iowa, a Municipal
Iowa, and that the seal affixed to the fo
and that said instrument was signed an
and resolution of its City Council and s
the free act and deed of said Municipal
OF IOWA
20_, before me a Notary Public in and
Matthew J. ayek and Marian K. Karr, to me personally
y that they ar the Mayor and City Clerk, respectively of the
orporation, eated and existing under the laws of the State of
egoing in ment is the seal of said Municipal Corporation,
sealed o behalf of said Municipal Corporation by authority
a d May r and City Clerk acknowledged said instrument to be
orp ration by it voluntarily executed.
Notary Public in and for the State of Iowa
C-25
EXHIBIT D
ATDte
AL C TIFICATION
(due any no later ilian November 1)
I, , the undersigned, h
City of Iowa City and A&M DEVELC
of the Development Property, hereby
1. All ad valorem taxes on the D
as evidenced by the attached documen
2. (A) I have re-examined the ter
affirm that during the preceding twelve
the fulfillment of any of the terms and cc
occupancy requirements of Section 3.3
the lapse of time or the giving of notice,
has occurred as of the date of this certii
OR
(B) the undersigned has re-examb
and that at the date of this certificate, the
Agreement for /
nowlodge of the Developer's Agreement between the
T II, LC, dated , 2015, and the operations
the }lowi=
Property have been paid for the prior fiscal year,
is anprovisions of the Development Agreement and can
12) Oonths, the Developer is not, or was not, in default in
edit' ns of said Agreement (including but not limited to the
pr#o) and that no Event of Default (or event which, with
oth, would become an Event of Default) is occurring or
the terms and provisions of the Development Agreement
ersigned is aware that the Developer is in default of the
the following reasons:
has existed since (de); and
following action with respect they o:
3. In the past year, the
(3) Townhome units are o
established Area Median In
least 11 of the
rental rate].
; that the default
the Developer is taking or proposes to take the
ig Fellowshi processed tenant applications to ensure three
I by househo ds with incomes at or below 80% of the HUD -
As a result, th following units were rented for an average of at
-eding 12 months at the following rates:
[list the number of each unit and
C-26
SITE: The project site is located on the block northwest of the Prentiss Street and Dubuque Street
intersection, and is located on the property to the west of the city alley on that block. The site houses the
old Sabin Elementary School and Midwest One's Home Mortgage Center. The property is current owned
by the University of Iowa.
HARRISON STR
OnePlace at
Riverfront Crossings
U
C
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r
n
i STIR
Harrison Street
Parking Facility
Townhomes
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m
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i
TOWNHOME FLOOR PLANS
, i
lIG1MYIY
reF
wrx
,s sr
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11 IF "IV
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POKI1
USF -
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First Level - Lower Home
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anrH ricx, rrW
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Third Level - Upper Home
C-30
4
S¢cond Level - Lower Home
/ I
(-
B
Fourth Level - Upper Home
MINUTES APPROVED
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
DECEMBER 8, 2014
EMMA HARVAT HALL, CITY HALL, 8:00 A.M.
Members Present:
Susan Mims, Michelle Payne, Matt Hayek
Staff Present:
Wendy Ford, Jeff Davidson, Geoff Fruin, Tom Markus, Tracy Hightshoe
Others Present:
Kevin Munson, Kent Jehle, Mike Hahn
RECOMMENDATIONS TO COUNCIL:
Hayek moved to recommend to the City Council the requested financial assistance for
Sabin Townhomes, per staff recommendation.
Payne seconded the motion. The motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Mims at 8:03 A.M. She asked that those
present please identify themselves.
CONSIDER APPROVAL OF MINUTES:
Payne stated that she had a couple of corrections. The first is under Recommendations to
Council. She noted that the second recommendation does not include the developer's name.
The words "for Iowa City Marketplace" will be added to the recommendation where it appears in
both places in the minutes. Next was a typo on page 6, first paragraph. The word "one" should
be "on."
Hayek moved to approve the minutes as amended.
Mims seconded the motion. Motion carried 3-0.
CONSIDER A RECOMMENDATION TO CITY COUNCIL FOR A REQUEST FOR FINANCIAL
ASSISTANCE FOR SABIN TOWNHOUSES:
Davidson stated that this project may look familiar to Members as they heard about it previously
when it was discussed in conjunction with a parking facility in the Linn Street area. Continuing,
Davidson noted that A & M Development LLC is proposing a project that consists of 28
townhomes located at Dubuque and Harrison Streets in the Riverfront Crossings' district and
that it is part of a larger master plan that has already begun and includes the new MidWestOne
office building and a 610 -parking space facility lined with 28 townhomes on the east and south
fagades. Davidson emphasized that the project under consideration at this meeting today is
only the townhomes part of the master plan. He talked about the necessity to build the parking
structure and the condominiums at the same time, because they are essentially a single building
that will be demised into a condominium regime. The City will first lease and later own the
parking facility, which will be built together with the townhomes. Davidson noted that the office
building and the skywalk, which will connect the office building to the parking ramp, are not be
part of the condominium regime, although they, too, are part of the same master plan. The
residential townhomes will be individually leased or owned.
City Council Economic Development Committee
December 8, 2014
Page 2 of 4
Davidson noted that the site will be a cleared before the City becomes involved. He explained
the contractual arrangement that relates to the School of Music project, between MidWestOne
Bank and the University of Iowa. Davidson stated that the cost of the townhomes' project is
$6,986,549, with a TIF financing request of $976,277.
This project has been through the NDC gap analysis, and Tom Jackson has agreed to be on
hand for a phone call during the meeting, should the Committee request it. Davidson added
that they are in the process arranging to have three of the townhome units become part of the
Iowa City Housing Fellowship's affordable rental housing portfolio. He stated that Hightshoe
wanted him to emphasize that they are still working on the idea, which has not been presented t_
to the ICHF board yet. Davidson stated that the proposed townhomes will introduce a new
housing type for Riverfront Crossings. The townhomes are expected to appeal to all, from
young professionals and graduate students to retirees. They are designed to be townhomes
and not apartments, as there are no common areas within the building. Each unit will have a
front door onto the street.
Davidson stated that the site has been in public ownership and therefore has been tax exempt
for decades. This will be a big plus with the full property tax revenue expected -to be around
$122,000 a year, of which the TIF increment would be approximately $85,000. This would
factor to an 11.4 -year TIF rebate, according to Davidson. After the rebate period, the full
property taxes will accrue to the taxing entities. Mims asked for confirmation that the difference
between the $122,000 and the $85,000 is the protected debt levy which will flow to the City, the
County, and the School District beginning in year one.
Payne stated that while reviewing the documents, she noticed that the financial gap is actually
being shown as a revenue stream. She questioned this, stating that it looks like they are giving
the developer $976,000. Davidson stated that is the request, in the form of a TIF rebate. This is
how the financial gap is represented but is typically referred to as one of the Sources of Funds
in a project and corresponds to the Uses of Funds in the financing description. He added that
the gap is presented as a financial component of the project. Davidson continued, noting that
staff finds the project to be consistent with the Council's adopted strategic plan, and more
specifically healthy neighborhoods, creating a strong urban core, and economic development
activities. The project is also consistent with the Riverfront Crossings Master Plan, and is
believed to be one that will help to continue the efforts that have already begun in this district.
With respect to the Economic Development policies, Davidson noted that the project will have
high-quality architecture and site design and energy efficiency and sustainability features.
Davidson noted that the heating and cooling units will be energy efficient, and there will be low -
flow plumbing fixtures. He also noted that the exterior cladding is a recycled product of the rice
milling industry. Davidson continued through the goals and objectives of the plan, summarizing
that A & M Development has requested the financial assistance to fill the gap in the project in
the amount of $976,277 in the form of a 11.4 -year rebate. The estimated construction expense
of the entire development, including the office building and parking facility, is slightly more than
$30 million, according to Davidson. Staff recommendation is therefore that the Economic
Development Committee recommend to the City Council approval of the TIF rebate, not to
exceed $976,277. Davidson stated that the developer is present to answer questions.
Hayek asked Davidson to repeat the tax revenue during the 11.4 -year period and then what is
anticipated after this timeframe. Davidson responded that the tax revenue is approximately
$122,000 a year, from the townhomes only. Additional property taxes would be generated from
the adjacent office building. Of the $122,000 from the townhomes, the TIF increment would be
$85,000. Davidson noted that the three units that will be owned by the Housing Fellowship and
City Council Economic Development Committee
December 8, 2014
Page 3 of 4
will be tax exempt and that is figured into the tax analysis. Payne noted that it appears to her
that with the affordable housing units priced at $190,000 each, we would be subsidizing $77,000
of that. Davidson agreed the point needed further explanation and later provided clarification
that "for sale" units, such as the affordable units in the project, DO create a wider gap for the
project development because they do not provide the ongoing revenue stream potential that
"for rent" units do on the proforma.
Hayek asked about the owner -occupied versus rental unit housing market. Davidson noted that
the rental market is becoming stronger. Typically owner -occupied was thought to mean
'permanent.' However, the market is changing and there is a strong demand for rental units.
Davidson stated that rental units for the non -student population are becoming larger segment of
the market. Hayek noted that he will be supportive of this. He did note his concern that
someone would buy one of these units and then turn around and rent it to students. Discussion
ensued.
Hayek moved to recommend to the City Council the requested financial assistance for
Sabin Townhomes, per staff recommendation.
Payne seconded the motion.
The motion carried 3-0.
SET NEXT CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE DATE:
Davidson stated that they have another issue they had hoped to get on this meeting's agenda
but were unable. Ford noted that they are looking at another date in December, if possible, as
the developer is wanting to move forward. Payne stated that she will be in Denver the last two
weeks of December. Davidson asked that Members look at the first few weeks in January and
let him know of any possible dates. Markus suggested they try for noon on Monday, January
12, 2015 and Members agreed.
STAFF UPDATES:
Davidson spoke briefly to the height bonus issue they recently reviewed. He also noted the
possible new site for New Pioneer Co -Op and The Chauncey project, and how these will be
moving forward. The Court -Linn site is another project in the wings.
COMMITTEE TIME:
None.
OTHER BUSINESS:
None.
ADJOURNMENT:
Payne moved to adjourn the meeting at 8:34 A.M.
Hayek seconded the motion.
Motion carried 3-0.
A4
C-1
THIS AGREEMENT OR PRIVATE REDEVELOPMENT (hereinafter called
"Agreement"), is made on or of the day of , 2015, by and among
the CITY OF IOWA CITY, I WA, a municipality (hereinafter called "City"), established pursuant to
the Code of Iowa of the State o owa and acting under the authorization of C apter 403 of the Code
of Iowa, 2013, as amended (herei after called "Urban Renewal Act") and A �DEVELOPMENT
II LLC., having an office for the saction of business at 1310 Highland rt, Iowa City, Iowa
52240 (the "Developer").
WITNESSETH:
WHEREAS, in furtherance of th objectives of the Urban Aenewal Act, the City has
undertaken a program for the revitalizati of an urban renewal -ea in the City and, in this
connection, is engaged in carrying out urban newal project activiti s in an area known as the City -
University Project I Urban Renewal Area, ich area is descri ed in the Urban Renewal Plan
approved for such area by Resolution No. 215 ated October 2, 969, amended by Resolution No.
01-366, dated November 13, 2001; and by Res lution No. 12- 59, dated October 23, 2012; and
WHEREAS, a copy of the foregoing
among the land records in the office of the R
Plan, as amended, has been recorded
;on County, Iowa; and
WHEREAS, the Developer owns or has the At to occupy certain real property located in
the foregoing Urban Renewal Area as more particu 1 described in Exhibit A annexed hereto and
made a part hereof (which property as s/descrnib is h einafter referred to as the "Development
Property"); and
WHEREAS, the Developer wertain 'mprovements known as the "Sabin
Townhomes" to be constructed on the DePrope and will cause the same to be operated
in accordance with this Agreement; and
WHEREAS, by Resolution N/. 14-253 dated August IV, 2014 the Urban Renewal Plan for
the University Project I Urban Rene al Area was amended to i lude a development agreement for
the Harrison Street Townhouses 9 a Sabin Townhomes as an Vrban renewal project; and,
WHEREAS, the City/believes that the developlent d continued operation of the
Development Property purs t to this Agreement and the lfillm nt generally of this Agreement,
are in the vital and best inte sts of the City and in accord with the p lic purposes and provisions of
the applicable State and cal laws and requirements under which a foregoing project has been
undertaken and is bein ssisted; and,
WHEREAS, rhe City believes that the development pursuant t�this Agreement aligns with
the goals of the Ri rfront Crossings Master Plan and the provisions df the Riverfront Crossings
C-2
Form Based Code because it will provide a Liner Building that will hide the east and south facades
of the parking structure fro e public view with an innovati design that integrates the parking
facility with no common hall ay elements, is part of a larger mas er planned project consisting of the
parking facility and a six sto office building currently under co istruction on the corner of Clinton
and Harrison Streets and provi es three units of affordable hous ing.
NOW, THEREFORE, in co ideration of the premisqk and the mutual obligations of the
parties hereto, each of them does her by covenant and;dnitions
ith the other as follows:
ARTICLE I. DEFINITIONS
Section 1.1. Definitions. In addit n to other set forth in this Agreement, all
capitalized terms used and not otherwise de ned hereiave the following meanings unless a
different meaning clearly appears from the ntext:
Agreement means this Agreement and a
time be modified, amended or supplemented.
Certificate of Completion means a
Exhibit C and hereby made a part of this
3.2 of this Agreement.
Cily means the City of Iowa City, Io)ka, or
Code means the Code of Iowa, 2013, as
hereto, as the same may be from time to
. in the form of the certificate attached hereto as
provided to the Developer pursuant to Section
to its functions.
Construction Plans means the plby s, specifications, rawings and related documents reflecting
forme
the construction work to be perthe Developer on the Development Property and the other
properties upon which the Public rovements will be to ted; the Construction Plans shall be as
detailed as the plans, specificatio, drawings and related documents which are submitted to the
building inspector of the City as r quired by applicable City Vdes.
County means the County/of Johnson, Iowa.
Developer means A&M/DEVELOPMENT II, LLC.
Development Property eans that portion of the City Univ rty Project 1 Urban Renewal
Area of the City described i4 Exhibit A hereto.
Economic Develo m nt Grants mean the Tax Increment paymentsko be made by the City to
the Developer under Articlh VIII of this Agreement. \
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Event of Default means �ny of the events described in
First Mortgage means an Mortgage granted to secure
mortgage commitment obtained y the Developer from a cc
institution to fund any portion oft construction costs and inil
the Minimum Improvements, or all uch Mortgages as approl
10.1 of this Agreement.
tloan made pursuant to either a
ercial lender or other financial
operating capital requirements of
A&M DEVELOPMENT II LL TIF ACCOU/Nean a separate account within the City -
University Project 1 Urban Renewal Ta Increment and of the City, in which there shall
be deposited all Tax Increments received the Cityect to the Minimum Improvements on
the Development Property described in E ibit A.
Minimum Improvements shall mean t consf a new residential building, together
with all related site improvements as outlined 'n Exereto. Minimum Improvements shall
not include increases in assessed or actual valuduet factors.
Mortae means any mortgage or security gin which the Developer has granted a
mortgage or other security interest in the Develop ety, or any portion or parcel thereof, or
any improvements constructed thereon.
Net Proceeds means any proceeds paid b an
policies of insurance required to be provided and ain
pursuant to Article V of this Agreement and r ining
and disbursements of counsel) incurred in the llectio;
Ordinance means Ordinance No. 12-4 09 of the
taxable property in the City -University prof e 1 Urban
paid into the Iowa City Urban Renewal Ta Increment
-r to the Developer under a policy or
I by the Developer, as the case may be,
deducting all expenses (including fees
such proceeds.
under which the taxes levied on the
ral Area shall be divided and a portion
ue Fund.
Project shall mean the constructio4 and operation of thVinimum Improvements on the
Development Property, as described in this Agreement.
State means the State of Iowa.
City created under the authority of S
created in order to pay the principal
whether funded, refunded, assumed
the authority of Section 403.9 or 40j
whole or in part projects
as amended.
the special fund of the
ion 403.19(2) of the Code and th Ordinance, which fund was
Of and interest on loans, monies ad anced to or indebtedness,
r otherwise, including bonds or oth obligations issued under
12 of the Code, incurred by the City t finance or refinance in
pursuant to the City -University Project Urban Renewal Plan,
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Tax Increments means the property tax revenues with respect to the Minimum Improvements
that are divided and made available to the City for deposit in the City -University Project 1 Urban
Renewal Tax Increment Revenue Fun_ d under the provisions of Section 403.19 of the Code and the
Ordinance. 11� \\
Termination Date mems the date of termination of
12.8 of this Agreement. \
Unavoidable Delays me s delays resulting from a
control of the party claiming the elay including but not lig
other casualty losses, unusual we her conditions, strikes,
delays in transportation or delivery f material or equipmf
or the acts of any federal, State or 1 al governmental un
Agreement, as established in Section
or occurrences outside the reasonable
ed to storms, floods, fires, explosions or
ycotts, lockouts or other labor disputes,
t, litigation commenced by third parties,
(other than the City).
Urban Renewal Plan means the ity-University cject 1 Urban Renewal Plan, as amended,
approved in respect of the City -University project 1 Ur an Renewal Area, described in the preambles
hereof.
ARTICLE II.
Section 2.1. Representati
representations and warranties:
(a) The City is a municipal c
provisions of the Constitution and the
Agreement and carry out its obligations
(b) The execution and deli
contemplated hereby, and the fulfill
Agreement are not prevented by/hi
conditions or provisions of any
instrument of whatever nature toconstitute a default under any of
Section 2.2. C
Developer makes the
'A IONS AND WARRANTIES
ties of the Cit . The City makes the following
tion d political subdivision organized under the
of th State and has the power to enter into this
v ry of this Agreli
ent of or compli
nited by, in conflict
itractual restriction,
[ch the City is now a
foregoing.
the consummation of the transactions
with the terms and conditions of this
;h, or result in a breach of, the terms,
dence of indebtedness, agreement or
qty or by which it is bound, nor do they
inj representations and warranties:
mties of Developer. The
(a) Developer is a 1' ited liability company duly organiz d and validly existing under the
laws of the State of Iowa and as all requisite power and authority to wn and operate its properties,
to carry on its business as n conducted and as presently propose to be conducted, and to enter
into and perform its obligati ns under the Agreement.
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(b) This Agreement has been duly and validly authorized, executed and delivered by the
Developer and, assuming due authorization, execution and delivery by the City, is in full force and
effect and is a valid and legally binding instrument of the Developer enforceable in accordance with
its terms, except as the same m be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors rights generally.
(c) The execution and de 'very of this Agreement, the consummate n of the transactions
contemplated hereby, and the fulfill ent of or compliance with the terms d conditions of this
Agreement are not prevented by, limite by, in conflict /n,
r result in a vio tion or breach of, the
terms, conditions or provisions of the c ificate of intion and byla s of Developer or its
parents or subsidiaries of any contractua restrictionnce of inde tedness, agreement or
instrument of whatever nature to which the veloper iparty or b which it or its property is
bound, nor do they constitute a default under y of thoing.
(d) There are no actions, suits or proce ings g or eatened against or affecting the
Developer in any court or before any arbitrator or eforey overnmental body in which there
is a reasonable possibility of an adverse decision w ch cerially adversely affect the business
(present or prospective), financial position or result ofons of the Developer or which in any
manner raises any questions affecting the validity teement or the Developer's ability to
perform its obligations under this Agreement.
(e) Developer has not received any
activities of Developer with respect to the De
environmental law or regulation (other than 1
been notified in writing). Developer is no
any local, State or federal official that the
'roperty may or will be in violation of any
if any, of which the City has previously
e of any State or federal claim filed or
planned to be filed by any party relating t y violation of y local, State or federal environmental
law, regulation or review proce/ive
cable to the Devel pr
Property, and Developer is not
currently aware of any violatiolocal, State or fed al environmental law, regulation or
review procedure which wouny person a valid claim under any State or federal
environmental statute with respo.
(f) Developer wil cooperate with the City in resolikion of any traffic, parking, trash
removal, excessive noise/6r public safety problems which rrky arise in connection with the
construction and operate of the Minimum Improvements.
(g) Develop r would not undertake its obligations un r this Agreement without the
payment by the City f the Economic Development Grants being in e to the Developer pursuant to
this Agreement.
(h) The eveloper will cause the Minimum Improvements t be constructed in accordance
with the terms of this Agreement and when constructed will comply ith the Urban Renewal Plan
and all local, State and federal laws and regulations, except for varian s that may be necessary to
construct the Minimum Improvements.
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(i) The Developer will use ' est efforts to obtain, or ca a to be obtained, in a timely
manner, all required permits, lic ses and approvals, and will eet, in a timely manner, all
requirements of all applicable l0, State, and federal laws and regu ations which must be obtained
or met in connection with the P�oilect.
0) With the except r
housing provider, the Develo e
voluntarily permit the Develop
taxable property by applying fo c
a utility or any other entity of a
treated as located within the Dev(
status or by applying for or see
pursuant to any present or future
ARTICLE III.
Section 3.1. Mini
of the three townhome units o be purchased by an affordable
shall not, prior to the exp• ation of this agreement, cause or
it Property and/or Minimu Improvements to become other than
seeking any indus/val
erty tax exemption, by being owned by
where the assessof taxable property of such entity is not
opment Property, owned by any entity having tax exempt
:ing for a deferralent or exemption from property tax
6tute or ordinanc
The Developer agrees to coml
bedroom townhome units that will I
facility with each unit to have a street
described in Exhibit `B" hereto. If t
provider pursuant to Section 3.3 e�
construction of the Minimum p
AND OJZCUPANCY RE(
Minimum Improvements generally consisting of 28 two
direct access via a back door to the City -owned parking
front entrance and no common hallways, all as more fully
the units have been purchased by an affordable housing
d are exempt from the payment of property taxes, the
m is must increase the actual assessed value of the
Development Property to at lea $4,750,000 or the January 1, 2017 assessment. Ifthree ofthe units
have not been purchased by affordable hou ing provider and are not exempt from the payment of
taxes, the construction of th inimum Impro ments must increase the actual assessed value of the
Development Property to least $5,320,000 fo the assessment on January 1, 2017.
Section 3.2.
Upon written r quest of the Developer after is u.
Improvements the ty will furnish the Developer wr
in recordable form in substantially the form set forth
of Completion sh 11 be a conclusive determination of
conditions of thi Agreement solely with respect to the
portion of the inimum Improvements.
nce of an occupancy permit for the Minimum
a Certificate of Completion for such portion
Exhibit C attached hereto. Such Certificate
tisfactory termination of the covenants and
ligations of the Developer to construct such
A Certificate of Completion may be recorded in the propA office for the recordation of deeds and
other instrume is pertaining to the Development Property t the Developer's sole expense. If the
City shall refuse or fail to provide a Certificate of Completi in accordance with the provisions of
this Section 3.2, the City shall within twenty (20) days aftkr written request by the Developer,
C-7
provide the Developer with a writl
Developer has failed to complete t
this Agreement, or is otherwise in
acts will be necessary in the opini
Section 3.3.
indicating with
Minimum Improvements in
fault under the terms of this
of the City, to obtain such
Developer shall sell three ofthe townhome units to a
by the City for the purpose of provi i;
income. The price of each unit shall
the fair market rent established by the
for the HOME program. The City a
provider to purchase said units. The
approval of an affordable housing pro,
there is not an affordable housing proN
ig rental housing for
A exceed $190,000/
detail, in what respects the
ince with the provisions of
lent, and what measures or
of Completion.
i ffordable housing provider approved
ouseholds at or below 80% of median
The rent in those units shall not exceed
.S. Department o ousing and Urban Development (HUD)
-ees to use its b st efforts to secure an affordable housing
le shall take Place by January 1, 2017 or upon the City's
er if that api#val occurs after January 1, 2017. In the event
I ready, w' ling and able to purchase said units on or before
January 1, 2018, Developer agrees to rent khree u
Fair Market Rent rate established by HU.
processed through an affordable housing pr vi er
party verification of household incomeAtabed
incomes at or below 80% of the HUD-e
between the Developer and The Housin
the Termination Date of this Agreementtenants as described above for an averHUD-established Area Median Inco is $44,55person household, and 80% of the H ME Fair M$851 for a 2 -bedroom.
Section 5.1.
(a) Upon
to the Termination
expense (and from
premiums on) insur
/ ARTICLE IV.
s at rates equal to or less than 80% of the HOME
ntal applications for these three units shall be
approved by the City, which will perform third -
the three units are occupied by households with
Area Median Income, pursuant to an agreement
ip, which shall remain in full force and effect until
ee units shall be leased by such income -qualified
onths per calendar year. (In 2014, 80% of the
0 or a 1 -person household, and $50, 900 for a 2-
ar t Rent is $668 per month for a 1 bedroom and
ARTICLE V. INS
�etion of construction of the Minim
the Developer shall maintain, or,
to time at the request of the City
as follows:
Improvements and at all times prior
;e to be maintained, at its cost and
J1 furnish proof of the payment of
(i) Insurance against loss and/or damage to the in um Improvements under a
policy or policies c vering such risks as are ordinarily insured throu property policies against risk
by similar busines es, including (without limitation the generality o the foregoing) fire, extended
coverage, vandali in nd malicious mischief, explosion, water dam e, demolition cost, debris
removal, and collapse in an amount not less than the full insurable eplacement value of the
Minimum Improvements, but any su h policy may have a deductible Iount of not more than
$250,000. No policy of insurance sha be so written that the proceeds there f will produce less than
the minimum coverage required by th preceding sentence, by reason of co insurance provisions or
otherwise, without the prior consent thereto in writing by the City. a term "full insurable
replacement value" shall mean the ctual replacement cost of the inimum Improvements
(excluding foundation and excavation c sts and costs of underground es, pipes, drains and other
uninsurable items) and equipment, and all be determined from tim to time at the request of the
City, but not more frequently than once very three years, by an i surance consultant or insurer
selected and paid for by the Developer an approved by the City.
(ii) Comprehensive general ublic liability in rance, including personal injury
liability for injuries to persons and/or propert including any i furies resulting from the operation of
automobiles or other motorized vehicles on about the D elopment Property, in the minimum
amount for each occurrence and for each year f $1,000,0 .
(iii) Such other insurance, includi g wor is compensation insurance respecting all
employees of the Developer, in such amount as is ust arily carried by like organizations engaged
in like activities of comparable size and liability a ure; provided that the Developer may be self-
insured with respect to all or any part of its liabili for worker's compensation.
(b) All insurance required by this Art' le to be provided prior to the Termination Date
shall be taken out and maintained in respons' le in urance companies selected by the Developer
which are authorized under the laws of the Sate of I wa to assume the risks covered thereby. The
Developer will deposit annually with the C' y copies policies evidencing all such insurance, or a
certificate or certificates or binders of the espective in urers stating that such insurance is in force
and effect. Unless otherwise provided i his Article V, ach policy shall contain a provision that the
insurer shall not cancel or modify it wi out giving wri en notice to the Developer and the City at
least thirty (30) days before the cancel tion or modificati n becomes effective. Not less than fifteen
(15) days prior to the expiration o any policy, the De eloper shall furnish the City evidence
satisfactory to the City that the poli has been renewed or laced by another policy conforming to
the provisions of this Article V, or hat there is no necessity herefor under the terms hereof. In lieu
of separate policies, the Develop may maintain a single po ' cy, or blanket or umbrella policies, or a
combination thereof, which pro ide the total coverage requir herein, in which event the Developer
shall deposit with the City a c ificate or certificates of the r pective insurers as to the amount of
coverage in force upon the nimum Improvements.
(c) The Develop agrees to notify the City immediat y in the case of damage exceeding
$250,000 in amount to, destruction of, the Minimum Imp vements or any portion thereof
resulting from fire or othe casualty. Net Proceeds of any such ins ance shall be paid directly to the
Developer, and the De eloper will forthwith repair, recons ct and restore the Minimum
Improvements to substa ially the same or an improved condition or alue as they existed prior to the
event causing such dama a and, to the extent necessary to accomplish uch repair, reconstruction and
C-9
restoration, the Developer will apply the Net Proceeds of insurance relating to such damage
received by the Developer to the payment or reimbursement o the costs thereof.
(d) The Developer shall complete the repair, reco truction and restoration of the
Minimum Improvements, whe her the Net Proceeds of insurance eceived by the Developer for such
purposes are sufficient.
ARTICLE VI. COVENANTS OF THE
Section 6.1. Maintenance f Properties. The Develop will maintain, preserve and keep
the Minimum Improvements in goo repair and working order, rdinary wear and tear excepted, and
from time to time will make all nece sary repairs, replaceme ts, renewals and additions.
Section 6.2. Maintenance of R cords. The Develo er will keep at all times proper books of
record and account in whichfull, and correct en 'es will be made of all dealings and
transactions of or in relation to the bu iness and affa' s of the Developer in accordance with
generally accepted accounting principles, onsistently plied throughout the period involved, and
the Developer will provide reasonable prot ction agai t loss or damage to such books of record and
account.
Section 6.3. Compliance with Laws.
regulations relating to the Minimum Improves
to comply with which or the sanctions and pe
adverse effect on the business, property, op,
Developer. /
Section 6.4. Non-Discrimh
shall not discriminate against any
religion, sex, national origin, sexual
Developer shall ensure that applicar
regard to their race, creed, color, re
marital status or gender identity. /
Section 6.5. RESER
Section 6.6. Annual C
Developer hereunder, a duly
(a) proof that all ad valor
year; and (b) certification t
Agreement and that at the a
Developer is not, or was ot,
Agreement and that no vei
notice, or both, would or
)eveloper will comply with all laws, rules and
other than laws, rules and regulations the failure
resulting therefrom, would not have a material
s, or condition, financial or otherwise, of the
o In opera 'ng the Minimum Improvements, the Developer
cant, 7�i ee or tenant because of race, creed, color,
ntation, 'sability, marital status or gender identity. The
employees and nants are considered and are treated without
ion, sex, nationa origin, sexual orientation, age, disability,
ification. To assist the Cit n monitoring and performance of the
uthorized officer of the Devel er shall annually provide to the City:
axes on the Development Prope y have been paid for the prior fiscal
kat such officer has re-examine the terms and provisions of this
of such certificate, and during th preceding twelve (12) months, the
in default in the fulfillment of any f the terms and conditions of this
t of Default (or event which, with t e lapse of time or the giving of
ie an Event of Default) is occurring r has occurred as of the date of
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such certificate or during such period, or if the signer is aware of any such default, event or Event of
Default, said officer shal lose in such statement the nature thereof, its period of existence and
what action, if any, has b en taken or is proposed to be taken with respect there Such statement,
proof and certificate shal be provided not later than November 1 of each ear, commencing
November 1, 2017, and ends g on November 1, 2029 both dates inclusive. Upo certification by the
Developer on or before Nov ber 1, 2017, the City will calculate an increme t in accordance with
the Ordinance, which establish s a base value as of January 1, 2011.
Section 6.7 Taxation of De elo
units to be purchased by an affor able
expiration of this agreement, cause o vol
Improvements to become other than x
exemption, by being owned by a utilit
taxable property of such entity is not tre
owned by any entity having tax exempt st
or exemption from property tax pursuant
ARTICLE VII.
ment Pro e . With the except' n of the three townhome
housing provider, the Deve per shall not, prior to the
untarily permit the Develop ent Property and/or Minimum
X'
property by applyin or or seeking any property tax
or any other entity of a e where the assessed value of
ed as located within a Development Property, by being
s or by applying r or seeking for a deferral, abatement
t any present or, ture statute or ordinance.
Section 7.1. Status of the Developer; T
obligations of the Developer under this Agre
the issuance of the Certificate of Completion
maintain existence as an adequately -capita
otherwise dispose of all or substant1 y
Improvements, or assign its interest in is
partnership, corporation, limited lia ity c
obligations of the Developer under is Agr
advance thereof, in which case a Devel
Notwithstanding the foregoing, owever, or
may transfer its interest in an to this Agr
common control with or con oIs Developer
the assets of the Developer to any success
and (b) the Developer ma (1) pledge any an
Minimum Improvement , (2) assign its right
ranf of SubstantiallyAll Assets. As security for the
em , the Developer represents and agrees that, prior to
d ordoliability
the Termination Date, the Developer will
ed li tcompany and will not wind up or
all of he Development Property and Minimum
Agreeme to any other party unless (i) the transferee
ompany o individual assumes in writing all of the
Bement and 'i) the City consents thereto in writing in
oper may b released of its obligations hereunder.
any other prov ions of this Agreement, (a) Developer
Bement to any a fihate which is controlled by, under
or to any entity t at acquires all or substantially all of
or to Developer by onsolidation, merger, or otherwise,
d/or all of its assets s security for any financing of the
s under this Agreem nt to a third party, provided such
assignment shall not r ease the Developer of its obligations h eunder, and the City agrees in
writing that Develope may assign its interest under this Agreeme t for such purpose; and (3) the
Developer may tran fer its ownership interest to a third -party u er an arrangement whereby
Developer will leas the Development Property back and continue to tisfy the requirements of this
Agreement.
TICLE VIII.
Section 8.1. Economic Development Grants. (a) For and in considekation of the obligations
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being assumed by the eloper hereunder, and in furtherance of the goals and objectives of the
Urban Renewal Plan d the Urban Renewal Act, the City agrees to make up to t 'rteen (13) annual
Economic Developm t Grants to the Developer, subject to the Developer h ving received a
Certificate of Completi n and being and remaining in compliance with the terms f this Agreement
and subject to the terms this Article VIII. The annual grants shall commence n June 1, 2019 and
end on June 1, 2031, or w en the total of all grants is equal to $976,277, whi ever is earlier. All
annual grants shall be equa to one hundred percent (100%) per fiscal year f the Tax Increments
(unless the total grant amoun of $976,277 is reached first) collected by th City with respect to the
Minimum Improvements on D velopment Property pursuant to Section 4 3.9 of the Urban Renewal
Act under the terms of the Ordin ce (without regard to any averaging at may otherwise be utilized
under Section 403.19 and exclu g any interest that may accrue t reon prior to payment to the
Developer) during the preceding t lve-month period in respect o the Development Property and
the Minimum Improvements, but su 'ect to adjustment and cond' ons precedent as provided in this
Article (such payments being referre o collectively as the "E onomic Development Grants").
(b) The obligation of the City t make an Econo c Development Grant to the Developer
in any year as specified above shall be s ject to and nditioned upon the timely filing by the
Developer of all previous annual statement proofs certifications required under Section 6.6
hereof and the City Manager's approval thereo whic ill not be unreasonably withheld. Beginning
with the November 1, 2017 certification, if the ev oper's annual statement, proof and certification
is timely filed and contains the information re ired under Section 6.6 and the City Manager
approves of the same, the City shall certify to th C un prior to December 1 of that year its request
for the available Tax Increments resulting fro thea essments imposed by the County as of January
1 of that year, to be collected by the City as t es are p 'd during the following fiscal year and which
shall thereafter be disbursed to the Develo er on June 1 f the following fiscal year. (For example, if
the Developer and the City each so certi on November d December 2017, respectively, the first
Economic Development Grant would a paid to the Deve per on June 1, 2019).
(c) In the event that the ual statement, proof or ertificate required to be delivered by
the Developer under Section 6.7 is not delivered to the Cit by November 1 of any year, the
Developer recognizes and agree that the City may have insuffic nt time to review and approve the
same and certify its request fo Tax Increments to the County that, as a result, no Economic
Development Grant may be ade to the Developer in respect there f. The City covenants to act in
good faith to appropriately r view and consider any late certificatio on the part of the Developer,
but the City shall not be o ligated to make any certification to the ounty for the available Tax
Increments or make any orresponding payment of the Economic evelopment Grant to the
Developer if, in the reaso able judgment of the City, it is not able to give ppropriate consideration
(which may include, but of be limited to, specific discussion before the ity Council at a regular
City Council meeting w' h respect thereto) to the Developer's certification ue to its late filing. In
the event Developer f 'Is to timely file an annual statement, proof or ertificate due to an
Unavoidable Delay and, as a result, an Economic Development Grant cannot a make, Developer
may give written notice to the City and, if the City finds that Developer's fa' ure is due to an
Unavoidable Delay, the missed Economic Development Grant shall be made in the year succeeding
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the last scheduled Econ isDevelopment Grant under Section 8. 1, subject to Developer's filing
under Section 6.6 and 1 other provisions of this Article VIII ith respect to such grant, it being the
intention of the partie to allow up to thirteen (13) annual E onomic Development Grants in an
aggregate amount not o exceed $976,277, if Developer is in qompliance with this Agreement.
(d) The total, ag\dividedan
e amount of all Economic Devel pment Grants under this Agreement
shall not exceed $976Each Economic Development rant shall be equal to one hundred
percent (100%) of all Trements collected per fiscal ye in respect of the assessments imposed
on the Development Pand Minimum Improvements s of January 1, 2017, and on January 1
of each of the followrteen (13) years, until the otal, aggregate of all such Economic
Development Grants emore than the sum of $97 ,277. The final grant shall be adjusted, if
necessary, if payment0 of Tax Increments for at grant would result in total, aggregate
Economic Developmet in an amount exceedi $976,277. Such Economic Development
Grants shall at all timubje t to termination in a cordance with the terms of this Article VIII
and Article X. Ther, the axes levied
On/
a Development Property and Minimum
Improvements shall bded an applied in acc rdance with the Urban Renewal Act and the
Ordinance. It is recogby all ies that t total aggregate amount set forth above is a
maximum amount only and that the a
Improvements are completed and the
City Assessor.
(e) In the event that any certific
information available to the City discloses e
that was not cured or cannot reasonably b cui
that, with the passage of time or giving f not
cannot reasonably be cured under the p ovisio:
thereafter to make any further payme s to the
t amounts will be determined after the Minimum
f said Improvements have been determined by the
filed by the Developer under Section 6.6 or other
-xistence or prior occurrence of an Event of Default
under the provisions of Section 10.2 (or an event
ce or both, would become an Event of Default that
is o Section 10.2), the City shall have no obligation
Deve per in respect of the Economic Development
Grants and may proceed to take one r more of the a ions described in Section 10.2 hereof.
Section 8.2. Source of Gr Funds Limited. (a) a Economic Development Grants shall be
payable from and secured so ly and only by amo is deposited and held in the A&M
DEVELOPMENT II, LLC TI Account of the City. Th City hereby covenants and agrees to
maintain the Ordinance in for during the term hereof and t apply the incremental taxes collected
in respect of the Minimum rovements and allocated to the &M DEVELOPMENT II, LLC TIF
Account to pay the Econo is Development Grants, as and the extent set forth in Section 8.1
hereof. The Economic D velopment Grants shall not be p able in any manner by other tax
increment revenues or by eneral taxation or from any other Ci funds.
(b) Notwithst ding the provisions of Section 8.1 hereo the City shall have no obligation
to make an Economic D velopment Grant to the Developer if at an time during the term hereof the
City receives an opinio of its legal counsel or a controlling de 'sion of an Iowa court having
jurisdiction over the subje matter hereof to the effect that the use o Tax Increments resulting from
the Minimum Improvements to fund an Economic Developmen Grant to the Developer, as
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contemplated under said Section 8.1 's not authorized or otherwise appropriate project activity
permitted to be undertaken by the ity under the Urban Renewal Act o other applicable provisions
of the Code, as then constitute . Upon receipt of such an opinion or decision, the City shall
promptly forward a copy of the same to the Developer. If the circ u stances or legal constraints
giving rise to the opinion or ecision continue for a period durin which two (2) Economic
Development Grants would oth rwise have been paid to the Develop r under the terms of Section
8. 1, the City may terminate this greement, without penalty or othe liability to the Developer, by
written notice to the Developer.
(c) The City makes no repr :
the Developer as the Economic D
any manner be liable to the Develol
collected and held in the A&M DE
thereof) to the payment of the Econ
described in this Article.
tation with respect to thear
ounts that may finally be paid to
opment Grants, and under o circumstances shall the City in
so long as the City timely pplies the Tax Increments actually
;LOPMENT II, LLC TIF Account (regardless of the amounts
4ic Development Grant to the Developer, as and to the extent
Section 8.3. Use of Other Tax Inc ents. Subjec to this Article VIII, the City shall be free to
use any and all Tax Increments collecte(Nn respect o ncreases in valuation on the Development
Property unrelated to constructionof the
value due to market factors) any other pr
Increments resulting from the suspension or
Section 8.1 hereof, for any purpose for which
the provisions of the Urban Renewal Act, ani
with respect to the use thereof.
ARTICLE
Section 9.1. Release
(a) The Developer rel
servants and employees thereof
parties") from, covenants and agr
indemnify, defend and hold h
or any injury to or death of a
Minimum Improvements.
irovements (i.e. increases in assessed or actual
thin the Project Area, or any available Tax
tion of the Economic Development Grants under
ax Increments may lawfully be used pursuant to
City shall have no obligations to the Developer
ade /ification Avenants.
eas theCity and t e governing body members, officers, agents,
ereinafter, for p oses of this Article IX, the "indemnified
es that the indemnifi d parties shall not be liable for, and agrees to
ess the indemnified p ies against, any loss or damage to property
person occurring at o about or resulting from any defect in the
(b) Except for anj willful misrepresentation ory willful or wanton misconduct or any
unlawful act of the ind fled parties, the Developer, or i successors or assigns, agrees to protect
and defend the indemnifi parties, now or forever, and er agrees to hold the indemnified parties
harmless, from any clai , demand, suit, action or other pr eedings whatsoever by any person or
entity whatsoever arisin or purportedly arising from (i) any 'olation of any agreement or condition
of this Agreement (exc t with respect to any suit, action, de and or other proceeding brought by
the Developer against the City to enforce his rights under this greement), (ii) the acquisition and
C-14
condition of the Development Property and the construction, installation, ownership, and operation
of the Minimum Improvements or (iii) any hazardous substance or environmental contamination
located in or on the Development Property relating to conditions caused by Dveloper after the
effective date of this Agreement.
(c) The ind=periofrl
d parties shall not be liable for any damage or inj to the persons or
property of the Develi officers, agents, servants or employees or any ther person who may
be on or about the Minimum provements due to any act of negligence o y person, other than
any act of negligence on the p of any such indemnified party or its o ers, agents, servants or
employees.
(d) All covenants, stipula ions, promises, agreements and o igations of the City contained
herein shall be deemed to be the cov ants, stipulations, promises, eements and obligations of the
City, and not of any governing body ember, officer, agent, sero t or employee of the City in the
individual capacity thereof.
(e) The provisions of this
ARTICLE X.
Section 10.1. Events of Default D
this Agreement and the term "Event of D
any one or more of the following events:
IX shall survivXthe termination of this Agreement.
(a) Failure by the Developer to cai# the
commenced and completed pursuant to terms,
Agreement;
(b) Transfer of any interestXfi this
the provisions of Article VII of this Agreer.
following shall be "Events of Default" under
mean, whenever it is used in this Agreement,
(c) Failure by the Dev #per to substantially
obligation or agreement on its Oart to be observed or I
of the Minimum Improvements to be
and limitations of Article III of this
or the assets of the Developer in violation of
or perform any covenant, condition,
d under this Agreement;
(d) If the holder any Mortgage on the Devel ment Property, or any improvements
thereon, or any portion ther of, commences foreclosure proc edings as a result of any default under
the applicable Mortgage ocuments;
(e) If the De v loper shall:
(A) le any petition in bankruptcy or for reorganization, arrangement,
composition, readju tment, liquidation, dissolution, or similar lief under the United States
Bankruptcy Act of 19 8, as amended, or under any similar federal o state law; or
C-15
(B) make an assignment for the benefit of its creditors; or
(C) admi�.in writing its inability to pay its debts generally as they become due; or
(D) be adj dicated a bankrupt or insolvent; or if a petitio or answer proposing the
adjudication of the Develope as a bankrupt or its reorganization under y present or future federal
bankruptcy actor any similar ederal or state law shall be filed in an court and such petition or
answer shall not be discharged denied within ninety (90) days after a filing thereof; or a receiver,
trustee or liquidator of the Dev oper or the Minimum Improv nts, or part thereof, shall be
appointed in any proceedings bro t against the Developer, an shall not be discharged within
ninety (90) days after such appoin ent, or if the Developer sh consent to or acquiesce in such
appointment; or
(f) If any representation or w anty made bythe veloper in this Agreement, or made by
the Developer in any written statement o certificate fu . hed by the Developer pursuant to this
Agreement, shall prove to have been inco ct, incomple or misleading in any material respect on
or as of the date of the issuance or making t ereof.
Section 10.2. Remedies on Default. ene er any Event of Default referred to in Section
10.1 of this Agreement occurs and is continuin e City, as specified below, may take any one or
more of the following actions after (except in th ase of an Event of Default under subsections (d)
or (e) of said Section 10.1 in which case actio ma betaken immediately) the giving of thirty (30)
days' written notice by the City to the Develo er and a holder of the First Mortgage (but only to the
extent the City has been informed in writin of the ex tence of a First Mortgage and been provided
with the address of the holder thereof) of e Event of efault, but only if the Event of Default has
not been cured within said thirty (30) d s, or if the Ev nit of Default cannot reasonably be cured
within thirty (30) days and the Develop r does not provid ssurances reasonably satisfactory to the
City that the Event of Default will be ured as soon as rea nably possible:
(a) The City may susp d its performance and this Agreement until it receives
assurances from the Developer, d ed adequate by the City, t t the Developer will cure its default
and continue its performance un er this Agreement;
(b) The City may ter)%inate this Agreement;
(c) The City may githhold the Certificate of Completion;
(d) The City may t e any action, including legal, equitable or aNministrative action, which
may appear necessary or d sirable to enforce performance and obs ance of any obligation,
agreement, or covenant of the Developer, as the case may be, under this Agreement; or
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(e) The City shall be entitled to recover from the Developer, and the Developer shall re -pay
to the City, an amount equal to the most recent Economic Development Grant previously made to the
Developer under Article VIII hereof, and the City may take any aIion, including any legal action it
deems necessary, to recove,�ch amount from the Developer. 1
Section 10.3. No Rn
is intended to be exclusiv
shall be cumulative and sh
now or hereafter existing at
or power accruing upon an
waiver thereof, but any such
be deemed expedient.
Section 10.4.
No remedy herein
of any other available remedy or r
1 be in addition to every other rej
I a or in equity or by statute. No d
y de It shall impair any such right
power may be exercised
should be breached by any party and
limited to the particular breach so wa:
previous or subsequent breach hereun
Section 10.5. Agreement to
In the event any
reafter waived
and shall no e
Default occurs and the party who is not in d,
the collection of payments due or to bei
observance of any obligation or agreement
party in default agrees that it shall, on dere&
fees of such attorneys and such other expe
the party not in default in connection the
T
ed upon or reserved to the City
s, but each and every remedy
iven under this Agreement or
omission to exercise any right
power or shall be construed to be a
►m time to time and as often as may
contained in this Agreement
r any other party, such waiver shall be
deemed to waive any other concurrent,
Whenever any Event of
shall employ attorneys or incur other expenses for
due or for the enforcement or performance or
part of the party in default herein contained, the
. or, pay to the party not in default the reasonable
nay be reasonably and appropriately incurred by
ARTICLE XI. OPTION TO TERMINATE AGREEMENT
Section 11.1. tion to Te nate. This Agreem nt may be terminated by the Developer if (i)
the Developer is in compliance 7ured
'h all material terms f this Agreement and no Event of Default
has occurred which has not been in accordance with the provisions of Section 10.2 hereof; and
(ii) the City fails to comply wit
Developer of such failure, the
receipt of such notice, or, ifIsclh
(30) days of receipt of suchti
the Developer that such nor.
Section 11.2. Eff
my material term of this e,
ty has failed to cure such n nc
noncompliance cannot reas
,e, the City has not provided
pliance will be cured as soon
If this Agreement is
ent, and, after written notice by the
zpliance within thirty (30) days of
y be cured by the City within thirty
arances reasonably satisfactory to
reasonably possible.
XI, this Agreement shall a from such date forward null and void �
however, that the City's 'ghts to indemnification under Article IX
and provided further th t the termination of this Agreement shall n
institute any action, cl i demand for damages suffered as a j
terms of this Agreement by another party, or to recover amounts wl
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tinated pursuant to this Article
of no further effect; provided,
,reof shall in all events survive
affect the rights of any party to
hilt of breach or default of the
Ahad accrued and become due
and payable as of the d;
entitled to recover its rea
(but only, in the case of
this Agreement pursuai
construction and operati
the provisions of this Al
W such termination. In any such action,
nable attorneys fees and related expenses i
e City, to the extent permitted by icap
to this Article XI, the Developer sha
,of the Minimum Improvements at its o n
ARTICLE XII.
the prevailing party shall be
urred in connection therewith
le law). Upon termination of
be free to proceed with the
expense and without regard to
Section 12.1. Conflict of Interest. The Developer presents and warrants that, to its best
knowledge and belief after due in uiry, no officer or empl yee of the City, or its designees or agents,
nor any consultant or member of governing body of e City, and no other public official of the
City who exercises or has exercise any functions o responsibilities with respect to the Project
during his or her tenure, or who is in position top icipate in adecision-making process or gain
insider information with regard to the oject, has d or shall have any interest, direct or indirect, in
any contract or subcontract, or the pr eeds t reof, for work or services to be performed in
connection with the Project, or in any act vity, r benefit therefrom, which is part of the Project at
any time during or after such person's tenu e
Section 12.2. Notices /Dean notice, demand or other communication under this
Agreement by any party to t 1 be s fficiently given or delivered if it is dispatched by
registered or certified mail, paid, re receipt requested, or delivered personally, and
(a) In the ceveloper, t Mike Hahn, A&M Development II, LLC, 1310
Highland Court, Iowa 52245.(b) In the cCity, to City all, 410 E. Washington Street, Iowa City,
Iowa, 52240, Attn: Cit;
or to such other desigi
the other in writing in
Section 12.3.
Sections of this Agc
construing or interl
individual or to such other
-dance herewith.
> of Articles and Sections. Any
t are inserted for convenience of
any of its provisions.
Section 12. Counterparts. This Agreement maybe e
each of which shill constitute one and the same instrument.
SectionYf
.5. Governing Law. This Agreement shall be
with the laws the State of Iowa.
C-18
as any party shall have furnished to
of the several parts, Articles, and
ice only and shall be disregarded in
in any number of counterparts,
and construed in accordance
Section 12.6. Entire Agreement. This Agreement and the exhibits hereto reflect the entire
agreement between the parties regardin the subject matter hereof, and supersedes and replaces all
prior agreements, negotiations or di 1;sions, whether oral or written. This Agre ent may not be
amended except by a subsequent riting signed by all parties hereto.
Section 12.7. Successors d Assi s. This Agreement is intended to and s all inure to the
benefit of and be binding upon th parties hereto and their respective successors d assigns.
Section 12.8. Termination Ilate. This Agreement shall terminate and be o no further force or
effect on and after June 1, 2027, r upon final payment of the EconomicD velopment Grants,
whichever is sooner.
Section 12.9 Recording. This Zecution
eement shall be recorded at the Jo son County Recorder's
Office, Iowa City, within 30 days of at the expense of the Dev Loper.
IN WITNESS WHEREOF, the City has caused this Agreem t to be duly executed in its
name and behalf by its Mayor and its s al to be hereunto duly affixe and attested by its City Clerk,
and the Developer has caused this Agr ent to be duly execute in its name and behalf by A&M
DEVELOPMENT, II, L.L.C.
(SEAL)
ATTEST:
By:
City Clerk
A&M DEVELOPMENT II, LLC
By:
STATE OF IOWA
COUNTY OF JOHNSON
CITY OF IOWA CITY, IOWA
by:
Attorney
CITY OF IOWA CITY
On this day of N, 20_, before me a Notary Public in and
for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally
C-19
known, who being duly sworn, did say that they are the Njayor and City Clerk, respectively of the
City of Iowa City, Iowa, a Municipal Corporation, create and existing under the laws of the State of
Iowa, and that the seal affixed to the foregoing instrume t is the seal of said Municipal Corporation,
and that said instrument was signed and sealed on beha of said Municipal Corporation by authority
and resolution of its City Council and said Mayor and ity Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporatio y it voluntarily executed.
No(tary Public in and for the State of Iowa
STATE OF
)SS
COUNTY OF )
This instrument was acknowledged f e me on this day of , 2014, by
as manager of A&M EV OPMENT II, LLC.
Not Public in and for the State of Iowa
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The Developmei
land located in the City
as follows:
Lots 1-4 in Bloc]
C-21
certain parcel or parcels of
more particularly described
)n County, Iowa
The Developer agre
$6,986,549 in improveme
Street and Prentiss Street,
townhome units. There
EXHIBIT B
to complete Minimum
; to that portion of the l
i improvements shall include
be 14 lower units and 14 t
ie is generally consisting of at least
Fe t Property located along Dubuque
e construction of 28 two bedroom
pper units with net square feet of
approximately 1,135 SF and 1 428 SF respectively. The wnhome units will serve as a liner
building on the East and South si es of the parking facility. ere will be no common hallways and
all units will have a street level fr t entrance. Each unit ill have direct access via a back door to
the City parking facility that will constructed in co ection with the minimum improvements.
Each unit will have the option to rec 've a p7set1by
t from e City for a maximum of two parking stalls
in said facility on an annual basis at t rate th City. The option must be exercised annually
on or before June 1 st of each year. Pa ent for the ace(s) shall be made quarterly or annually and
failure to make payment shall result in ss of th ght to reserve said space(s).
Each townhome unit will include p 'va)6 outdoor space in the form of a balcony or garden
terrace. The townhomes will include hi efficiency heating and cooling units and low flow
plumbing fixtures. The exterior cladding Ahe building shall be a recycled by product of the rice
milling industry. The improvements sho be built in conformity with the site layout, conceptual
renderings, outline characteristics and fyoor pl s attached hereto as Exhibit "E".
Developer shall
approved by the City for the pi
median income. The price of
exceed the fair market rent es
(HUD) for the HOME pro
housing provider to purch se
City's approval of an ai
the event there is not an
or before January 1, 20
the HOME Fair Mark
shall be processed thr i
third -party verificati n
with incomes at or `
three of the tow ome units to an affordable housing provider
ce of providing rent 1 housing for households at or below 80% of
unit shall not excee $190,000. The rent in those units shall not
blished by the U.S. Depah
am. The City agrees to u!
said units. The sale shall 1
#able housing provider if that a
fordable housing provider ready,
3, Developer agrees to rent three i
Rent rate established by HUD. I
;h an affordable housing provider
ent of Housing and Urban Development
its best efforts to secure an affordable
-e place by January 1, 2017 or upon the
roval occurs after January 1, 2017. In
w ling and able to purchase said units on
nit at rates equal to or less than 80% of
enta applications for these three units
ppro ed by the City, which will perform
of household income to ensure the three kits are occupied by households
Eow 80% of the HUD -established Area Aedian Income, pursuant to an
agreement between the Developer and The Housing Fellowship, whibkishall remain in full force and
effect until the Termination Date of this Agreement. These three uhits shall be leased by such
income -qualified tenants as described above for an average of 11 months per calendar year. (In 2014,
C-22
80% of the HUD-establi
900 for a 2 -person hous
bedroom and $851 for a
Area Median Income is $44,550 for aperson household, and $50,
, and 80% of the HOME Fair Market)tent is $668 per month for a 1
If three of the townhome its have been purchased by taffordable housing provider and are
exempt from the payment of pro erty taxes, the constructio of the Minimum Improvements must
increase the actual assessed value f the Development Prop rty to at least $4,750,000 for the January
1, 2017 assessment. If three of the its have not been p based by an affordable housing provider
and are not exempt from the paymen of taxes, the cons ction of the Minimum Improvements must
increase the actual assessed value o the Develop nt Property to at least $5,320,000 for the
assessment on January 1, 2017.
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WHEREAS, the City 61
having an office for the transai
"Developer"), did on or about
the other, an Agreement for P
EXHIBIT C
Iowa City, Iowa (the "City") and
tion ofbusiness at
e day of January, 2015,
ii to Redevelopment (the "Agre
kM DEVELOPMENT II, LLC.,
Iowa City, Iowa 52245 (the
ake, execute and deliver, each to
lent"), wherein and whereby the
Developer agreed, in accordanceith the terms of the Agreem nt, to develop and maintain certain
improvements on real property loca d within the City and as re particularly described as follows:
Lots 1-4 in Block 8, County S\Addn to Iowa Ci ,Johnson County, Iowa
WHEREAS, the Agreement inand cont 'ned certain covenants andrestrictions with
respect to the development of the DeProp and obligated the Developer to construct
certain Minimum Improvements (aserein) ' accordance with the Agreement; and
WHEREAS, the Developer has to the pr
insofar as they relate to the construction of said
City to be in conformance with the approved bt
this certification. /
date performed said covenants and conditions
num Improvements in a manner deemed by the
plans to permit the execution and recording of
NOW, THEREFORE, pursuant to ection 3.2 f the Agreement, this is to certify that all
covenants and conditions of the Agreeme t with respec to the obligations of the Developer, and its
successors and assigns, to construct the inimum hnpro ments on the Development Property have
been completed and performed by th Developer and ar hereby released absolutely and forever
terminated insofar as they apply to e land described he in. The County Recorder of Johnson
County is hereby authorized to acc t for recording and to re ord the filing of this instrument, to be a
conclusive determination of the
Agreement with respect to the c
Property.
All other provisions
termination as provided th
(SEAL)
termination of e covenants and conditions of said
of the Minimum provements on the Development
Agreement shall otherwise re ai
CITY OF IOWA CITY,
By:
Mayor
C-24
in full force and effect until
A
ATTEST:
City Clerk
OF IOWA CITY
STATE OF IOWA )
COUNTY OF JOHNSON
On this day of , 20 , before me a Notary Public in and
for said County, personally appeared Matthew . Hayek d Marian K. Karr, to me personally
known, who being duly sworn, did say that they e the M yor and City Clerk, respectively of the
City of Iowa City, Iowa, a Municipal Corporation, e
Iowa, and that the seal affixed to the foregoing inst
and that said instrument was signed and sealed on be
and resolution of its City Council and said Mayor and
the free act and deed of said Municipal Corporation/
W
C-25
dd existing under the laws of the State of
is the seal of said Municipal Corporation,
'of said Municipal Corporation by authority
Ly Clerk acknowledged said instrument to be
it voluntarily executed.
is in and for the State of Iowa
EXHIBIT D
NNUAL CERTIFICATION
ate:
(due ally no later than November 1)
I, , the undersigned, r
City of Iowa City and A&M DEVEL(
of the Development Property, hereby
knowledge of the
VT II, LLC, dated
the following;
1. All ad valorem taxes on the Develop e
as evidenced by the attached documentation;
2. (A) I have re-examined the terms and
affirm that during the preceding twelve (12) m
the fulfillment of any of the terms and condition,
occupancy requirements of Section 3.3 thereto)
the lapse of time or the giving of notice, or both,
has occurred as of the date of this certificate.
OR
(B) the undersigned has re-examined the ti
and that at the date of this certificate, the und�th
Agreement for
Property
has existed since (date); d that the
following action with respect thereto:
3. In the past year, _
(3) Townhome units are
established Area Median ]
least 11 of the
rental rate].
s Agreement between the
_, 2015, and the operations
been paid for the prior fiscal year,
)ns f the Development Agreement and can
ie eveloper is not, or was not, in default in
Agreement (including but not limited to the
it no Event of Default (or event which, with
become an Event of Default) is occurring or
and provisions of the Development Agreement
is aware that the Developer is in default of the
following reasons:
; that the default
is taking or proposes to take the
/ proces tenant applications to ensure three
I by households wit incomes at or below 80% of the HUD -
As a result, the folio ing units were rented for an average of at
eeding 12 mo hs at the following rates:
[list the number of each unit and
C-26
C-27
SITE: The project site is located on the block northwest of the Prentiss Street and Duuque Street
intersection, and is kcated on the property to the west of the city alley on that bloc . The site houses
the old Sabin Elemen ry School and MidWestOne's Home Mortgage Center. Th property is current
owned by the Universitkof Iowa.
HARRISON STREET
` �
at �}
PRENTISS
R"
Townhomes
N
C-29
TOWNHOME FLOOR PLANS
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roeu
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o er
First Level - Lower Horne Second Level Lower Horne
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Third Level - Upper Hom \Foh Level - Upper Home
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OUTLINE
Structure/Exterior
Wood framed structure with fire
Optimized insulation at walls and
Modular brick cladding and fiber -r
Accent materials of decorative met
Aluminum -framed windows and do
Access to structured parking direct
acoustic separation
)f
r>forced panels
hingles and fiber cement
rs
i unit
Machanical/Plumbi ngAighting:
High -efficiency electric heat pump heating
Recessed and surface -applied track lighting
Polished -chrome plumbing fixtures selected
Porcelain sinks and acrylic showers/tubs
Intwiors:
Approximately 9'-0" ceilings
Daylight -filled interiors with smooth, paint fir
Solid surface countertops and decorati lash
EnergyStar appliances with stainless st I finish
Carpet and tile flooring
LED
water usage
on gypsum wall board
minate cabinets
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