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ITEM 2. PROCLAMATIONS ITEM
2a Iowa Rock City Rocklamation — March 28
Hayek: (reads proclamation)
Karr: Here to accept the proclamation is Robo Professor. (applause)
Hayek: Good line of sight there, Robo Professor! (laughter)
Hansen: As Robo Professor I'd like to (both talking)
Hayek: You know what, we may need you ... Robo Professor, at the, uh, podium so we
can ... record Robo Professor!
Hansen: As Robo Professor, I would like to thank Mayor Hayek and the Iowa City City
Council for their support of the arts in Iowa City and for this project, the For Kids
and By Kids songs from Iowa Rock City, Volume 1. (mumbled, several talking)
...for a moment! (laughter) I'm not the original Robo Professor, but I have
downloaded the Robo Professor operating system to be here on his behalf
(laughter) It's kind of hot though! (laughter) My name is Jonathan Hansen. I'm
one of the musicians who contributed to the CD with my band, that is, uh, also
with my wife and our son. It's an intergenerational band which really reflects the
spirit of this project. It's brought people of all ages together. Um, all kinds of
Iowa City musicians, some very famous, some young children. Uh, this CD will
be available to you stream through the Iowa City Public Library's web site,
starting tomorrow. It'll also be available to stream on Spotify and other streaming
services. We encourage people to come to the concert. It will be hosted by Robo
Professor and feature musicians of all ages who appear on the CD. Um, so that is
this Saturday, March 28th, at 3:00 P.M. at the Englert. It's a free show and
everyone who comes also gets a copy of the CD! So ... finally ... (laughter) as
Robo Professor ... I would also like to, uh, present... present you with some copies
of the CD. You can get more copies at the show. You'll have to fight over the
few I have right here, and I'd also like to present, uh, Iowa Rock City with its new
official seal that we have here, suitable for all official documents or framing
(laughter)
Hayek: Thank you! (laughter) All right! By the way, I'm taking credit for the reference
to The Kids Are Alright. That was my late addition to this proclamation (laughter)
I felt, uh, I spent about 20 minutes thinking of kid -related rock tunes and The
Who's, uh, classic tune was the only one that came to mind. Anyway...
Markus: You're not concerned about infringement right (laughter) problems?
Hayek: Well, that's what we got Legal for! We're ... we're good! (laughter)
This represents only a reasonably accurate transcription of the Iowa City City Council
special formal meeting of March 23, 2015.
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ITEM 2. PROCLAMATIONS
ITEM 2b National Service Recognition Day — March 23
Hayek: (reads proclamation)
Karr: Here to accept the proclamation is Jeremy Endsley, representing AmeriCorp
VISTA. (applause)
Hayek: Thank you!
Endsley: Hard to follow Robo Professor! (laughter) But ... thank you for having me here
today and declaring this day of appreciation. Joining a team of AmeriCorps
VISTA volunteers serving at Shelter House, I've had the chance to work on
housing and employment. For me, and I'm sure many other people, the time to
act in service is unclear. Many of us want to help but don't know how or lack the
skills or network that can support us and provide a road map. Where ... we are just
waiting for someone to say `yes, go do it!' Let this day be a day of appreciation
for all those who serve our community, whether confidently or unsure. Let this
day be an encouragement for all those who are waiting to act, to go out into their
community and serve. Serving at Shelter House I've witnessed both how deeply
our society is divided, but also how we are the same. The circumstances that...
leading to homelessness are many and varied. Becoming homeless is not as
difficult as many would like to think. In working with vocational services, I've
had the chance to work on resumes for write ... wide range of people. The one
thing they all share is a hopeful vision of the future. Our job as members of the
community is to give them, uh, resources they need to fulfill their vision, whether
they are confident, fal... or faltering. In that we are very much alike. I've also
had the opportunity to see how views or perceptions can change. Some of you
joined me on the bus tour of affordable housing in Iowa City this past year.
Instead of dilapidation you saw clean, well -kept homes, uh, where working people
live. I appreciate your attendance at this event and hope that we can continue to
open eyes and dispel myths that hamper progress. With this day of appreciation,
and with the example that we are setting through all of our hard work on issues of
homelessness and affordable housing, I hope we will drive home a new
perspective of open arms to all of our neighbors, whether they walk upright with
confidence or are working hard to attain their vision.
Hayek: Thank you. (applause)
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special formal meeting of March 23, 2015.
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ITEM 2. PROCLAMATIONS
ITEM 2c Colorectal Cancer Awareness Month — March
Hayek: (reads proclamation)
Karr: Here to accept the proclamation is Gary Street, American Cancer Society.
(applause)
Striet: (mumbled) may not realize is that I'm actually in, uh, costume. I'm
impersonating a lawyer tonight! (laughter) My name's Gary Striet. I've been a
American Cancer Society volunteer since 1977. When I started volunteering in
those days, the ... the five-year survival rate from cancer was less than 50%.
Today it's approaching 65%, and as the Proclamation noted, many types of
cancer, the survival rate is much higher. This is part of an overall initiative that
the American Cancer Society and the Colorectal Cancer Screening Roundtable
have initiated across the country. We've, uh, had similar proclamations adopted
in Marion last week. Coralville next week. Cedar Rapids. And now Iowa City.
We're really trying to push awareness. As the Proclamation noted, among our
underserved populations, the screening rates are far below what they could be.
And so our real push is to create awareness and encourage people to get screened
and consequently save lives, so ... thank you very much for adopting this
Proclamation and thank you very much for your interest.
Hayek: Thank you for your time! (applause)
Dobyns: Matt ... Matt, I'd just like to add one thing. I mean, notice here that this is, um,
colorectal cancer screening. Itis not colonoscopy. Um, people (mumbled) there
are many types of screening. Just because you get screening for colorectal cancer,
there are some new novel tests many which we're developing here at the
University of Iowa, um, which also provide opportunities for colorectal screening
that are not colonoscopy. (unable to hear response from audience)
Hayek: You'll have to ... Gary, you'll have to come up to the podium again. Sorry, we
have to record these!
Striet: Well said. I had an op-ed piece in the Corridor Business Journal last week and as
I said there, the best test is the test that gets taken, and uh, the only point about
colonoscopies, of course, is that if you discover a polyp during the colonoscopy
you can get it removed, and often times they're pre -cancerous, but... often time
the rigmarole of testing is a barrier to people getting tested, so our real message,
of course, Rick, is that everyone get tested and the best test is the one that gets
taken. You know, um, social sciences talk about our degrees of separation. And
one thing we've adopted as a theme in the American Cancer Society is one degree
of separation that all of us share from someone who's had cancer, and so really
part of what we're talking about is something that's going to touch all of us. One
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of every two men, one of every three women are diagnosed with cancer sometime
during their lifetime, so ... hits us all pretty close, and uh, appreciate your ... your
clarification, Rick. It was right on point.
Dobyns: Thank you!
Throgmorton: Matt, could I ... (clears throat) elaborate briefly about this. (clears throat) So, uh,
speaking of one degree of separation, eight years ago my brother was diagnosed
with, uh, colon cancer. He had no idea because he hadn't had any exams
whatsoever. Uh, he went through a seven -hour operation to remove, uh, the
tumor. Uh, they told him he wouldn't survive the operation probably because of
some other complication, but he did! And he lived for, I don't know .... I've
forgotten now, something like three or four years after he was first diagnosed.
They called him the `miracle man.' But he died, and it was because he didn't
have himself checked routinely. So ... I certainly learned a lesson from that and
I... go in every three years now and it's absolutely worthwhile.
Hayek: Thank you, Jim!
This represents only a reasonably accurate transcription of the Iowa City City Council
special formal meeting of March 23, 2015.
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ITEM 5. PLANNING AND ZONING MATTERS
ITEM 5a REZONING HIERONYMUS PROPERTY AT MUSCATINE
AND SCOTT — REZONING 1.36 ACRES OF PROPERTY FROM LOW
DENSITY SINGLE FAMILY (RS -5) ZONE TO HIGH DENSITY SINGLE
FAMILY (RS -12) ZONE LOCATED NORTH OF MUSCATINE AVENUE
AND WEST OF SCOTT BOULEVARD (REZ14-00008)
1. PUBLIC HEARING
Hayek: This is a public hearing. The hearing is open. (bangs gavel) Is there any ex parte
communication to disclose? Mr. Yapp!
Yapp: Uh, good evening. Uh, this property is one, uh, you've seen before. Uh, several
months ago, uh, City Council authorized, uh, vacating a previous plat, uh, on this
property, uh, called Terra Verde. Uh, what is before you tonight is, uh, a rezoning
associated with a plat of Silver Slope, uh, subdivision which would include a cul-
de-sac, uh, off of Scott Boulevard. Uh, and, uh, lots on the north side of
Muscatine Avenue. Uh, what is before you tonight is a request for a rezoning of a
strip of property ... uh, where my mouse is located. Uh, the property at the corner
is currently zoned low density multi -family, RM -12. Uh, this ... this red outline
shows the existing zoning boundary of that RM -12 parcel. Uh, and this shows the
aerial photo with the, uh, preliminary plat and what is proposed is to line up that
zoning boundary, uh, with the property line, the new property line, of the, uh,
RM -12 property at the corner of Scott Boulevard and Muscatine Avenue. With
the third reading of the rezoning ordinance, we will also have the preliminary plat,
uh, on your agenda. Uh, one condition in the, uh, proposed Conditional Zoning
Agreement is to require a sidewalk along the north side of Muscatine Avenue, uh,
as part of this development to ensure a ... a connected sidewalk network. With that
I'd be glad to take any questions.
Hayek: Questions for John?
Throgmorton: What was the vote for the Planning and Zoning Commission?
Yapp: 6-0, I believe. It's, uh, in your agenda.
Throgmorton: Okay. Thanks!
Hayek: Okay. Thanks, John! Um ... anyone from the audience? Okay, before I close the
hearing I need to take Council's temperature. Are we inclined to go with
the... recommendation? Okay! I'll close the public hearing. (bangs gavel) That
was pretty weak (laughter) We need a...
2. CONSIDER AN ORDINANCE (FIRST CONSIDERATION)
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Page 6
Dickens: (both talking) ...first consideration.
Payne: Second.
Hayek: Moved by Dickens, seconded by Payne. Discussion? It's good to see this move
forward. Further discussion? Roll call, please. First consideration passes 7-0.
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ITEM 5. PLANNING AND ZONING MATTERS
ITEM 5b REZONING 1201 S. GILBERT (NAGLE LUMBER) —
CONDITIONALLY REZONING 3.97 ACRES OF PROPERTY FROM
INTENSIVE COMMERCIAL (CI -1) ZONE TO RIVERFRONT
CROSSINGS — SOUTH GILBERT (RFC -SG) LOCATED AT 1201 S.
GILBERT ST. (REZ15- 00001)
1. PUBLIC HEARING
Hayek: This is a public hearing. The hearing is open. (bangs gavel) Any ex parte
communications?
Mims: No!
Hayek: John!
Yapp: Uh, this is a property at Dubuque Street and Lafayette Street, as shown on the
overhead. Uh, the property is zoned intensive commercial, but it is owned by
Johnson County. Uh, and Johnson County intends to...
Hayek: Wait, I think you're... you've jumped over one.
Mims: We're on the Nagle.
Yapp: (several talking) I'm sorry! Excuse me (laughter) My, uh...
Mims: (both talking) ...said Dubuque I was wondering! Wait a minute (laughs)
Yapp: ...PowerPoint is out of order (laughter) Excuse me! (several talking in
background) Uh, the ... the, uh, Nagle Lumber property on Gilbert Street. Uh, this
is at 1201 S. Gilbert Street, in the South Gilbert sub -district of Riverfront
Crossings. Uh, it's one of three large properties on the west side of Gilbert Street.
Uh, to the north is Aero Rental and to the south is Pleasant Valley, and there's
also a small commercial property, uh, at the northeast corner of the Nagle Lumber
property. Uh (clears throat) excuse me! Ralston Creek borders the property to
the west, and you'll see First Street on the east side of Gilbert Street, First Street
and Second Street, and I'll refer to those, uh, streets in ... in a second. Uh, this
property, if it is rezoned to Riverfront Crossings, would be subject to the, uh, form
based code of the Riverfront Crossings District. The Riverfront Crossings Plan
has a ... has a fairly detailed, uh, concept plan for this property, and a few of those
elements which I'd like to point out are... pedestrian streets on the north and the
south sides of the, uh... uh, Nagle property which roughly line up with, uh, First
Street and uh, Second Street. Uh, the intent of those pedestrian streets would be
to provide pedestrian access to Ralston Creek and then across Ralston Creek to,
uh, what is currently the north wastewater plant, which has been decommissioned
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and, uh, will be demolished, uh, starting this year. Another aspect of the
Riverfront Crossings Plan is to provide a better pedestrian environment along
Gilbert Street. Uh, you'll see the Riverfront Crossings Plan calls for a median,
uh, in this part of, uh, Gilbert Street, as well as a larger setback of the sidewalk,
uh, from Gilbert Street. Currently... this is a ... an image, uh, taken about a month
ago. Currently the sidewalk is right on the back of the curb with no separation,
uh, between the sidewalk and the vehicular, uh, travel lanes. (mumbled) worked
with the applicant to ensure that the dedicated right-of-way, uh, for the eventual
redevelopment of this parcel, uh, is dedicated as part of the rezoning. Uh, this is
an imagine showing, uh, some of those right-of-way dedications. They would
include a 30 -foot dedication along Ralston Creek, uh, to allow for a future trail
along Ralston Creek. Uh, an 11 -foot dedication on the north, and a 35 -foot
dedication on the south of the property, to facilitate the eventual construction of
those pedestrian streets, to provide access from Gilbert Street to the creek. Uh, a
40 -foot dedication along the Gilbert Street frontage, uh, which again would allow
for, uh, a better pedestrian environment along Gilbert Street, getting that sidewalk
away from the curb, allowing for a median to be constructed in Gilbert Street, and
a dedication of a ... of a, uh... uh, approximate 30 -foot property through the...
through the center of the property running north/south for a cross access
easement, and if I go back to, uh, this image, what that cross access easement
would do is allow for pedestrian and vehicular circulation, uh, between the
properties on the west side of Gilbert Street which... without having to rely on, uh,
Gilbert Street itself for, uh, local ... local traffic between those properties. This is a
...an image provided by the applicant of a site concept for how, uh, they envision
the site functioning with the pedestrian streets, the cross access easement, uh, the
setback from Gilbert Street, and the setback from Ralston Creek. One of the, uh,
requirements of the form based code is that, uh, the buildings must front on and
have entrances, uh, from these four, uh, rights-of-way, if you will, uh, the two
pedestrian streets, Gilbert Street, and the creek. The front of the buildings are
required to face the outside four boundaries, uh, of the property. The ... interior of
the property would be for parking and interior service, uh, type uses. Uh, this is
an image, uh, superimposed over the existing, uh, Nagle Lumber structures on the
property of...of the applicant's footprint for their proposal, uh, which staff does
feel does conform, uh, to the form based code. The... redevelopment of this
property is still selv... several years away. Nagle Lumber does intend to continue
to operate, uh, on this location for at least several years. Uh, in summary, uh,
staff and the Planning and Zoning Commission have recommended approval, uh,
subject to a Conditional Zoning Agreement requiring all the ... the dedications that
I've discussed, uh, 40 -feet along Gilbert Street, 11 -feet along the north property
line, 35 -feet along the south property line, 30 -foot dedication along the west
property line, and a 30 -foot cross access easement, uh, parallel to Gilbert Street.
Uh, what staff has recommended in the Conditional Zoning Agreement is that
those, uh, areas be dedicated prior to a building permit being issued, uh, because it
is several years away from, uh, from being redeveloped and Nagle Lumber will
continue to operate. Uh, with the dedication of... of these properties, uh, staff
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does feel it meets the intent of the Riverfront Crossings Plan. Be glad to take any
questions!
Dickens: I do have one question. 1225 is actually owned by the University. It's like their
surplus store. What are the plans for that, cause there's Nagle then the surplus
and then Pleasant Valley's on the corner. So (mumbled)
Yapp: I'm not aware of any ... immediate plans for that... property.
Hayek: And then ... when do we get a c ... a signed CZA? Is that ... by the 3ra.
Dilkes: Got it!
Hayek: You've got it? Okay!
Dobyns: John, I was wondering... what elements for Riverfront Crossing in general, and
this area in particular, might, uh, create a ... a dis-incentive for, um, students to go
into these areas in terms of the number of bedrooms and other features?
Yapp: Excuse me (coughing) Uh, Riverfront Crossings, uh, does have a requirement
that a maximum of 30% of the units can be three bedrooms. Uh, and three
bedrooms is the maximum number of bedrooms you can have in a ... in a unit. So,
70% of the units have to be either two bedrooms or less in size.
Dobyns: And that's through what... throughout Riverfront Crossings...
Yapp: That's correct.
Dobyns: ...not just (both talking)
Yapp: That's correct. Yes!
Markus: John, the CZA's get recorded against the property.
Yapp: Yes. Yeah, the CZA, Conditional Zoning Agreement, would apply regardless of
who the property owner is. It ... it's tied to the property, not the owner.
Mims: Maybe it was in here and I missed it or forgot. What ... what's the maximum
potential height of the building, of the buildings on here?
Yapp: The ... there's two types of height in Riverfront Crossings.
Mims: Yep.
Yapp: There's the base maximum, which is six stories.
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Mims: In this area then?
Yapp: In this area.
Mims: Okay!
Yapp: ...with bonus (both talking) height you can get up to eight stories.
Mims: Eight. Okay. Thanks!
Throgmorton: But, John, it's my understanding that the ... the developers at this moment at least
don't intend to try to build ... to the maximum level.
Yapp: They've stated, uh, this would be in the ... in the three to six story range. That's
correct.
Payne: And there'll be four buildings. The yellow is showing four buildings.
Yapp: Yes, and the ... the yellow area will likely be, uh, parking. Uh, small parking
structure to serve...
Payne: Okay, so there'll just be three.... residential -type buildings and then the parking
structure.
Yapp: With this concept, yes. Uh, one other point I'd like to make is the Gilbert Street
frontage is a required retail frontage ... in the Riverfront Crossings code. So the
first floor uses that face Gilbert Street will be required to be, uh, office or retail -
type uses. So it will be a mixed-use, uh, project.
Hayek: Okay, but to be clear to your point, Jim, I mean this is ... by rezoning into our
existing form based code, they will... assuming this goes through, be able to build
by right whatever (both talking)
Yapp: ...according to the form based code. That's correct. (both talking)
Hayek: ....important to distinguish...
Yapp: ...which is up to six stories without ... uh, any additional approval to go taller than
that.
Hayek: Okay! Thanks, John!
Yapp: Thank you.
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Hayek: Anyone from the audience? Okay, before I close the hearing I need to ... confirm
that we're, uh, prepared to go with the P&Z recommendation. Okay! I will close
the public hearing. (bangs gavel)
2. CONSIDER AN ORDINANCE (FIRST CONSIDERATION)
Payne: Move first consideration.
Dickens: (several talking) Second.
Hayek: Moved by Mims, seconded by Dickens.
Mims: Moved by Payne.
Hayek: Or Payne! Sorry!
Payne: The other female!
Hayek: Yeah! (laughter) Discussion?
Dobyns: I wanted to notice the basis for my questions of John is that, um, I take a different
(mumbled) when I look at different portions of the Riverfront Crossing. The
northwest and the northeast portions that are proximal to the University, to
downtown, I look at those as areas that ... can participate in, um, a very large
student market. My concerns are one of, you know, just being collaborative with
the University, but also being very aware that a very robust student market, um,
does participate, um, in the affordable housing issue. I mean you have (mumbled)
all elements of the market, and I think the undergraduate student market is a very
large one. However, when I take a look at the southern portion of Riverfront
Crossing, which is closer to the park area, little bit farther from the University, I
have a sort of a different vision. Um, I like to see where there's, uh, more of a,
um, population not so much student oriented, and I realize from my question,
John, is that there's not really a difference in terms of the percentages of bedroom
housing, is that of course those areas of housing that are closer to the University
will be more favorable to the student market. My concern going many years, um,
ahead is that Riverfront Crossing will, um, be ... not be immune to an ever -
enlarging, you know, student market and I get concerned that from a ... a point of
affordable housing. So that was the basis for my asking, um, and John that
question.
Hayek: Yeah, I ... my ... I see what you're saying there and I ... I'm supportive of this! But
I ... and it ... you know, this is a new zone, um, our goal was to get... redevelopment
here and to have people voluntarily request, uh, to opt into this new form based
code. Um, I think we need to watch what comes before us ... over the next, you
know, few years probably to ... to gauge if the kind of development we're seeing is
consistent with what we've hoped for, and whether the form based code is ... is,
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uh, bringing that about. Um ... so, it has ... that's not really relevant to this, but I
think as ... as a ... as a more ... as a broader comment on the ... on the area and what
we hope to see over time, we want to watch this but it's early on. You know, this
is ... not the first but ... but by no means the last of the ... of the redevelopment
projects we will ... we will see. I think it's something to keep an eye on.
Dickens: Yeah, something to go with this project was ... John just said, that there's going to
have to be retail on the first floor of the front building. Uh, I went as a private
citizen to the, uh, Planning and Zoning meeting last Thursday. It was two and a
half or three hours of fun. But something was brought up, even in the down
sou ... town section that a lot of these first floors are remaining empty for long
periods of time. So I think ... I talked to Tom at the break, it's something that we
need to look at as maybe having a waiver for certain places, because we're sitting
with a lot of empty retail space for long periods of time. So it's something we're
going to have to look at in the future and may ... have to tweak here and there.
Hayek: That ... that could be the case, although I would distinguish between the kind of
retail envisioned by the new form based code in this zone, and what you see on
Burlington Street and ... (both talking) and Gilbert, you know, the ... almost throw-
away first floor, uh, commercial or retail and I ... I just think the design standards
were ... not good with that and you, um, have some outcomes that aren't... aren't
great, but I know that when we went through this process, you know, the goal was
to ... through ... through first floor height and aesthetics and other design standards,
you know, promote something that would be better, but I don't disagree that we'll
have to watch that too. Anyway ... I'm supportive of this!
Payne: I ... I do have one question. Can I still ask John a question or not?
Hayek: Sure!
Payne: Where's the flood area for Ralston Creek compared to this?
Mims: I was going to ask that too.
Yapp: Uh, that's a good question and I don't have that ... I don't have an image to share
with you, but ... I believe ... it's roughly through ... this area. I can bring that to you
for the next meeting, an actual image.
Payne: I was just curious. I mean, I ... obviously we don't allow... residential construction
in the floodway.
Yapp: Not in the floodway, no, but we do in the flood plain as long as it's elevated one
foot above the flood plain.
Payne: Okay. Thank you.
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Hayek: Further discussion? Roll call, please. First consideration passes 7-0.
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ITEM 5. PLANNING AND ZONING MATTERS
ITEM 5c REZONING JOHNSON COUNTY AMBULANCE CENTER —
REZONING 0.275 ACRES OF PROPERTY FROM INTENSIVE
COMMERCIAL (CI -1) ZONE TO NEIGHBORHOOD PUBLIC(P-1) ZONE
LOCATED AT 800 S. DUBUQUE ST. (REZ15-00003)
1. PUBLIC HEARING
Hayek: This is a public hearing. The hearing is open. (bangs gavel) Any ex parte
communications to disclose?
Mims: Nope!
Hayek: John!
Yapp: Uh, now I'm back on track with my (laughter) PowerPoint! Uh, this is a, uh,
property owned by Johnson County. Uh, Johnson County intends to, uh, expand
their ambulance service and provide offices for the Medical Examiner's office.
Uh, the current ambulance building is ... is just to the south. Uh, the property in
question is at the corner of Lafayette and Dubuque Street. Uh, Johnson County's
intent is to have one, uh, building, uh, which serves both the ambulance service,
uh, Coroner's office, and Medical Examiner service. Uh, they have applied for a
rezoning to public. Uh, in our zoning code the public zoning designation is a, uh,
requirement, if the property has a public use. Uh, it's meant as a ... to serve as
notice to surrounding property owners that a public use is located on the ... on the
property. Uh, the property is also in the Riverfront Crossings District. Uh, we
have, uh, encouraged County staff to follow the, uh, form based code as ... as
much as ... as possible. Uh, it will not be possible to meet all the requirements of
the form based code with an ambulance ... a ... a building that has ambulances in it.
Uh, but to the extent possible and the County, uh, has seemed amenable to that.
Uh, there are representatives from Johnson County here tonight if you have any
questions for them. Uh, staff and Planning and Zoning Commission have
recommended approval.
Hayek: Thanks, John! Any questions for John?
Throgmorton: Not really. I ... I know Janelle Rettig is going to be very happy to see this
ambulance move along. Um, cause, I mean, she was one of the people who
pushed it pretty strongly, um, so anyhow, just observe that!
Hayek: Thanks, John! Anyone from the audience?
Pusard: Good evening, I'm Josh Pusard, Assistant Planner for Johnson County. Uh, John
covered most of the highlights, but I am, uh, here to answer any questions you
may have.
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Page 15
Throgmorton: Have you had a chance to consider the ... the particular ways in which the form
based code could be followed for... for the building?
Pusard: Right now we are just in the ... our, uh, request for a proposal has not even been,
uh, closed yet, so but that is in the proposal. Uh, the Board of Supervisors, they
want to work with, uh, the Planning and Zoning Department and John, and we
also want to make the building look nice and compatible with the rest of the, uh,
County campus area.
Hayek: And I don't ... I don't know if it's even relevant to a rezoning on this, but ... but
we ... we had, there was some initial discussion on, um, on more of a multi -use
facility that I think the County declined to ... to take up. Is the intention
to ... construct (both talking)
Pusard: It's going to be multi -use as in it's going to be primarily for the ambulance, but
we're also going to house, uh, intend to house the Medical Examiner, uh, an
office for the Physical Planner facilities, and then possibly other storage.
Hayek: Okay. Thanks, Josh! Other questions for Josh? Okay. Thanks!
Pusard: Thanks!
Hayek: Anyone else from the audience? Okay, is Council inclined to go with the
recommendation? Okay. I'll close the public hearing. (bangs gavel)
2. CONSIDER AN ORDINANCE (FIRST CONSIDERATION)
Payne: Move first consideration.
Botchway: Second.
Hayek: Moved by Payne, seconded by Botchway. Discussion? Roll call, please. Passes
7-0 on first consideration.
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ITEM 8. LANDFILL USER FEES - AMENDING TITLE 3, ENTITLED "CITY
FINANCES, TAXATION & FEES," CHAPTER 4 ENTITLED
"SCHEDULE OF FEES, RATES, CHARGES, BONDS, FINES AND
PENALTIES," SECTION 5 ENTITLED "SOLID WASTE DISPOSAL," OF
THE CITY CODE TO INCREASE OR CHANGE CERTAIN SOLID
WASTE CHARGES
a. PUBLIC HEARING
Hayek: This is a public hearing. The hearing is open. (bangs gavel) Anyone from the
audience? Public hearing is closed. (bangs gavel)
b. CONSIDER AN ORDINANCE (FIRST CONSIDERATION)
Payne: Move first consideration..
Dobyns: Second.
Hayek: ... seconded by, er, moved by Payne, seconded by Dobyns. Discussion?
Dickens: Just glad to see that they're doing it on a regular basis instead of waiting. Lot of
time in between that... you have to do a lot of catch up. This is much easier to
take.
Hayek: Further discussion? Roll call, please. Passes 7-0.
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ITEM 9. AMEND URBAN RENEWAL PLAN — APPROVING AMENDMENT NO.
13 TO THE CITY -UNIVERSITY PROJECT 1 URBAN RENEWAL PLAN
TO MODIFY PROPOSED URBAN RENEWAL PROJECT
a. PUBLIC HEARING
Hayek: This is a public hearing. The hearing is open. (bangs gavel) Wendy!
Ford: Good evening, I'm Wendy Ford, Economic Development Coordinator. As you
know, State code requires an Urban Renewal Plan be amended to include any
project and its dollar amount for which a City Council may wish to use TIF
financing and participate in the project. In recent months (clears throat) excuse
me, in recent months a hotel project that was added to the plan with, uh,
amendment 12 has since been further refined and increased in cost, so the plan
must be amended. Amend... amendment 13 would allow City Council to consider
a change to the hotel project, which has undergone substantial changes since it
was included in amendment 12. Staff had encouraged the developer to meet
higher standards in the architectural design and in the hotel brand that they plan to
use to market the hotel. It has gone from a Holiday Inn and a Staybridge, uh...
um, duo to a Hilton Garden Inn, a substantial increase in hotel brand quality. And
that is the reason for the amendment. The cost, um, and the request for
participation from the City's side has gone, uh, from $7.1 million to $8.8 million,
and this amendment, uh, requests an $8.9 million, uh, amount to go with that
urban renewal... urban renewal project. Those are my comments. If you have any
questions, I'd be happy to answer them.
Hayek: Any questions for Wendy? We did discuss this, uh, at some length at our work
session, as well. Jim!
Throgmorton: I ... I think, um, I wonder would it be reasonable to discuss the other two aspects
of this project simultaneously and then vote separately or ... or not?
Hayek: Could if we ... you know, we're getting a nodding head from Eleanor so I don't
see any reason why not.
Throgmorton: Well ... I bring it up partly because ... uh, if I remember correctly, I voted for the
original, um, amen... amendment, um, and at the time I said something like, uh,
but I don't expect to support the ... the TIF associated with it. So I don't know,
maybe I was inconsistent — I don't know — but at that ... I said something along
those lines. So I ... I don't see ... uh, come ... I don't see a good, strong, compelling
reason for me to oppose this particular amendment cause all it's doing is
modifying what was approved earlier. But I don't intend to support the, uh,
proposed TIF. So, I'm ... I'm just wondering if it would be worth ... kind of
pursuing that some or just ... you know, I can vote for this and then ... do what I
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want to do on, uh, on the other two, uh, resolutions that follow. I don't know
what the ... the reasonable (laughs) thing to do is.
Hayek: Yeah. Um, you know what, why don't we go through the whole thing and then...
and then take up the votes separately, so it's all out during this public hearing.
And that goes to your ... your concern, Jim, as well.
Throgmorton: Yeah, as long as there's no problem from Eleanor's point of view, yeah.
Hayek: So what this means is we're taking ... we're having staff talk to us about Items, uh,
9, 10, and 11, uh, in the context of, uh, 9. Jeff!
Davidson: Thank you, Mr. Mayor. Jeff Davidson, uh, Economic Development
Administrator for the City. Uh, Item 10 on your agenda is a request, uh, from
Iowa City Hotel Associates, LLC. In your staff report that went to the Economic
Development Committee it is referred to as Kinseth Hospitality Company, but,
uh, the actual development agreement that you're being asked to, uh, consider this
evening is with Iowa City Hotel Associates LLC which includes the Kinseth's,
uh, but also has other, uh, entities that are ... that are part of that, um, LLC. Uh,
what is proposed is, uh, as I think by now everyone knows a Hilton Garden Inn
Hotel to be, uh, constructed at 328 S. Clinton Street, and you see an image here,
uh, of the proposed hotel. Urn ... I think there's also a nighttime image here, just,
uh, for your information. Um... it would be a 12 -story hotel of 144 rooms. Uh,
feature a meeting and events center, rooftop food and beverage venue, a
restaurant, pool, spa, and fitness area. So in other words a full-service hotel. The
estimated project cost is, uh, slightly over $33 million. Uh, for which the, uh,
private developer has requested, uh, $8.8 million in gap financing. Uh, this has
been fully vetted by the National Development Council, our financial analyst, and
you heard some comments at the work session about that. One thing I do want to
point out right away is that, uh, this proposed image is not the specific
architecture of the hotel yet. This was an image that was prepared which meets,
uh, the ... the Hilton Garden Inn design standards, but once approved, the
developer will begin the actual design and construction drawings for the hotel,
and they have indicated to us that they anticipate the design changing somewhat.
Um, this need not be a concern of yours this evening because you will ultimately
approve that design. Uh, there is a height bonus that is required. You will recall
our first height bonus ever in Riverfront Crossings was the 316 Madison project.
This will be the second, and we're doing it in the reverse order this time. Hope
that's not confusing (laughs) where you'll actually be, uh, approving the height
bonus at a subsequent meeting, but that will be brought to you for approval and,
uh, a condition of the, uh, 12 -stories here that ... that is shown in the proposed
concept. So what's ... what you're being asked to approve this evening is the
development agreement, uh, for the hotel. Uh, you ... you will get a say in the
architecture. It will also have to, uh, comply with the Riverfront Crossings' form
based code design standards. We have seen a concept of the proposed
architecture and our design review people have indicated it looks good. They
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don't see any significant issues with it, but when it's brought to you, it will be
approved by Design Review and then offered for your consideration. So it will be
somewhat different from this, but the same ... general scale and massing that ... that
you see here. Um ... let me bring my staff report up again. Um ... the other thing
that we'll go into in a little bit more detail in ... in just a second is the proposed,
uh, gap financing, the $8.8 million. Um ... we ... we had some discussion at the
work session about the ... the slightly different financing aspects of a hotel
property compared to a residential property or an office building property. Um,
and because of the slightly larger gap, uh, on a project of this nature, that then of
course elongates out, uh, the TIF rebate period. It is always our goal to shorten
that rebate period up as much as possible so that the taxing entities can get the
full, uh, new tax value of the property as soon as possible and so we have a
formula for doing that and I'll review that with you, uh, in just a moment. Uh, the
proposed site is currently vacant, has been for some time, as was noted by Terry
in the work session. Uh, it will be across the street from the new University of
Iowa School of Music and next door to the proposed, uh, Art Museum, University
of Iowa Art Museum. Uh, the Art Museum property on the corner of Burlington
and Clinton will include other uses that we believe will be taxable that will factor
into the proposed gap financing for this project, and we'll go through that in a
second. The University of Iowa has been, uh, part of our evaluation of this
project. They were, uh, essential in the negotiation of the Hilton Garden Inn flag.
We initially had proposed, uh, a hotel, actually two hotels that would have been
...the building would have been split. Uh, we were able to negotiate an upgraded
flag and the University is now fully supportive of the project and believes it'll be
a great asset for both the School of Music, uh, and the Art Museum. Uh, similar
to all of our hotels in Iowa City, uh, we will have a parking agreement for parking
in this, uh, building with the hotel developer. That's the same as the Vetro and
the Sheraton. Uh, the Court Street Transportation Center, directly to the east, was
built to provide parking for uses on the remainder of this block, so it's exactly
what we anticipated. There will be a skywalk out the back of the building so that
when you go in and park your car you'll be able to walk directly into the hotel,
and that's, uh, part of the design of the project that will be brought to you, uh, for
approval. Uh, and ... and the developer will pay for the parking. That'll be part of
the agreement that's... that's put together, and we anticipate an agreement similar
to what we have with the, uh, Sheraton and the Vetro. Uh, the current property
tax bill on the property is approximately $11,000 and I do want to point out one
typo in the, um, EDC, uh, staff report that you have. The anticipated new
property taxes will be $522, not 82, 522,000, uh, annually and the ... the TIF rebate
payouts that are, uh, that ... that Wendy calculated for the project were based on
the 522. It was just a ... an error that we did not notice until afterwards in the staff
report. Um, obviously the Hilton Garden Inn brand is a brand that we believe is,
uh, will be a great asset to Iowa City, uh, and ... and we mentioned the
substantially, uh, upgr... the ... the up ... the upgrading of the flag that we were
very, uh, pleased with. Uh, the hotel developer is here this evening and if you
have any questions about the specific aspects of a Hilton Garden Inn, they're...
they will be happy to clarify those, uh, for you. Urn ... the economic impact of the
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hotel is not insignificant. Uh, they will employ 150 pers... uh, 150 people,
including 12 salaried managers. Uh, they will have, um, it is anticipated that
they ... that this building could have up to $6 million in downtown spending
annually from people who ... who stay at the hotel, and will obviously generate a
significant amount of hotel/motel tax, which again we'll go into in just a second.
In fact, let's go into it now! Um, in terms of the, uh, financial analysis then, we
did indicate that, uh, NDC did vet the, uh, vet the project and has confirmed the
$8.8 million financing gap, uh, and I won't go into the higher risk factors that we
discussed at the work session. If you have any questions, Tom Jackson I believe
is present. Is he present (several talking) Well ... he's supposed to be back! Uh, if
you need any clarification (laughter) Wendy and I will try and do that, uh, and I
think Tom is expected back at some point. Urn ... the, uh, proposed financing is,
uh, 47% bank debt and then 26.5 each from the developer equity and then
the ... the gap in the project. So approximately 25% of a financial gap, higher than
a typical project that we would bring you, but for the reasons that we have stated
previously. Um, what we have done is put together a ... uh, financing, uh, a ... a
rebate, um, proposal here. Uh, what you see in this graph here is if we were to try
and finance the entire project from the TIF rebate, the TIF increment produced on
just the hotel building. Uh, and what you see here ... if I can bring the ... uh, what
you see here is that you have to go out 22 years. The blue representing the TIF
increment here. Twenty-two years, uh, before ... then this of course is the full tax
amount that ... that is, uh, you know, produced for the three taxing entities. Once
the TIF comes off, the green down here representing the protected levy that's not
eligible, uh, for the rebate. Um, the 22 years, we didn't like the 22 years and the
developer indicated to us that, uh, it was not acceptable to their financial
institution either in terms of the, uh, the amount of time that it would take to
accrue that rebate, and so what we did, we came up with a... initially with a
proposal of using, uh... uh, 50% of the new hotel/motel ... new hotel/motel tax
produced, uh, by the new hotel. So just the new increment of hotel/motel tax
produced by the hotel, 50% of it ... right now that's distributed, uh, 50% to the...
the Convention and Visitors Bureau, 25% for Parks, 25 -cent ... 25% for Police,
and 50% of it, generated by this building, would continue to go to those entities.
But 50% for a period of 16 years ... you can see we ... we've already shortened up
our rebate period from 22 years to 16 years, and that's this increment here, uh,
would go for... as part of the rebates to the developer, again, they would... just like
with the property taxes, they would pay it, and then it would be rebated back, uh,
to them. So no upfront money by the City on any of this. Uh, we liked this much
better. The developer then proposed to us a third scenario, which is this ... which
is the taxable value created from the, uh, Museum property, not necessarily the
Museum itself, but from the Museum property, we believe there will be at least...
the amount of taxable value, and we think it's probably even understated, but
using 50% of that increment, allowing 50% to be used to incent a business that
might locate there or something else, but 50% of it, and you can see it doesn't
start till five years after the hotel, because we anticipate there'll be that much lag
time between the Museum project and the hotel. So it doesn't start until five
years out here, but then for a period, uh, between that, uh, that year here and... uh,
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it...it shortens the overall rebate period to 13 years. We would use that 50% of
that increment, uh, from the Art, uh, Museum site as well. It's the same...
property owner, um, to provide basically a 13 -year rebate from the combination of
the three sources, and... and basically then of course the light green here is all of
the property taxes that will eventually accrue to the three taxing entities, being
released after year 13, rather than 16 or 20... oops, 16 or 23, uh, with the other,
um, scenarios. So, any questions about that? Have I explained that adequately
enough with the three sources? This is what, in the development agreement, you
are being asked to approve this evening.
Payne: (both talking)
Davidson: ...three sources.
Payne: ...if the light blue up there, the top bars, shouldn't happen, it would just lengthen
it out to 16.
Davidson: Exactly! There's no risk from the City. If the light blue ... if for some reason
some snafu, nothing happened on the Art Museum property, it would simply
lengthen the rebate period out to what we anticipate would be 16 years. Okay
then, just a couple of other things. Um ... we, um ... let's see here ... oh, a ... a
clarification. Those of you who are part of the Economic Development
Committee, uh, know this already. In the, urn ... in the staff report it refers to a
fixed amount of $120,000 in hotel/motel tax. We changed that to the 50%
number. That was negotiated with the developer, and so not... it's not a... a flat
120,000. It's 50%, which ... which is a higher amount in subsequent years, and
shortens up that rebate period, but I did want to provide that clarification. Um...
in terms of your adoptive strategic plan, uh, we feel like the project is ... is, uh, is
definitely consistent with that, uh, in terms of the, uh, priorities of creating a
strong urban core, uh, strategic economic development activity, and establishing a
...a solid financial foundation from the City, those being three priorities from
your strategic plan. Uh, as I mentioned in the work session, uh, we believe that
the increase, uh, that this hotel will add with 144 rooms, uh, will enable activities
that currently aren't held in downtown Iowa City to be held because of the
increased number of hotel rooms, and the conference facilities that will be part of
the hotel. Uh, the strategic alliance between the hotel and the School of Museum
and the Art Museum, we believe, is very positive for downtown. Uh, and then of
course the ... the, uh, spending that will be associated with the hotel downtown, all
very positive. In terms of your economic development policy, uh, similarly we
believe ... I won't go into detail unless you would like me to, but we believe that
the, uh, property is very consistent, uh, with those economic development
policies. Um... 100% rebate, as I mentioned. No upfront money, uh, or the
associated risk with that, uh, for the City. Uh, and that they will pay 100% of the
property tax bill and the hotel/motel tax bill before it is rebated back to them. So
in summary, uh, the, uh, Iowa City Hotel Associates has requested $8.8 million,
uh, to build a hotel at 328 S. Clinton. Estimated to generate $522,000 a year in
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Page 22
property taxes. The... developer has indicated they will, uh, construct the
improvements that will have a construction cost estimated at $33.2 million,
taxable value of $15.1 million and all of our calculations are based off of those
numbers. They will bring the Hilton Garden Inn franchise to the site, that they
will build 144 room hotel building that meets the standards of the Riverfront
Crossing form based code, and create an estimated 150, uh, jobs, uh, and the, as I
said, the developer will be happy to provide any, um ... uh, any, uh, answer any
questions you have about any of those. So, this was recommended unanimously
by the Economic Development Committee for approval. Any questions?
Botchway: I have a question for the developer, if they're here. Maybe not!
Hayek: Yeah, they're here! (several talking) I don't know who's going to represent them
up here.
Botchway: I just had a ... a basic question. Just for the event center part of it, and maybe this
was ... was in the packet itself. What are we looking at from that standpoint? Just
like the event center. So, the ... the meeting room space, I mean, how big? How
large? What type of...what type of events do you expect for that particular, um,
area?
Kinseth: Okay, my name is Bruce Kinseth with Kinseth Hospitality and I appreciate the
opportunity to tell you a little bit about (clears throat) the hotel and the Hilton
Garden Inn. The hotel is going to consist, as Jeff said, 144 hotel rooms, and the
first two floors will be a lobby, a restaurant space, and the second floor will
consist mostly of meeting and conference space where we'll have like an
executive board room and we'll have a ballroom approximately 26, 2,700 square
feet, so it's not going to be a ... a very, very large ballroom where we could seat 4
or 500 people. It'll be more of about 200 people that'll be able to sit down for say
a wedding reception or a business meeting, a reception (mumbled) we might be
able to have like 250 people. Um, on the second floor will be all meeting space
and there'll be a pre -function area with those, uh, spaces up there, as well, and
then on the top floor our food and beverage venue is kind of what we call, which
will be available for special events and uh, could be wedding receptions or social
events or things like that as well as being able to be open to the public, uh, during
the evening hours, during late afternoons where somebody'll be able to come up
and I think'll probably be one of the best views, kinda looking towards, uh, the
University and the Hospitals, and of course looking kinda right straight across
pentacrest there. It's going to be a beautiful venue, and it's going to be a beautiful
view. We will probably have probably close to ... seating available for 200 -plus
people, with probably 40 to 50 people on an outside deck, which will have like
outside fireplaces and things like that, and where we're very excited about, uh, the
opportunity to develop that space. Um ... now also the hotel will include, of
course, indoor pool, fitness facility, and a lot of the same amenities if you stayed
at a Hilton Garden Inn before, anywhere in the United States, the Hilton Garden
Inn we think is a great brand and the right brand to bring to Iowa City here. It's
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Page 23
kind of an award-winning brand. It's consistently won JD Powers award for
quality in its segment of the marketplace. Um, Kinseth Hospitality, we operate
currently, uh, three Hilton Garden Inns and we're going to be opening up a fourth
one in Bettendorf, Iowa, here in about two weeks, uh, as well and we're looking
forward to, uh, building and developing this hotel, as well.
Botchway: That was it. Thanks, appreciate it.
Hayek: (both talking) ...Kinseth. (mumbled) This is a public hearing. So,
uh... and ... Eleanor, since we've opened it up for all three items, can we take
public input on all three items?
Dilkes: Yeah.
Hayek: I think we should. Uh, just to be consistent. So, if anyone wants to address us on
any of, uh, Items 9, 10, or 11, now would be the appropriate time and ... I'll
remind the audience that, uh, we need you to sign in, give us your name verbally,
and to limit your comments to five minutes, please.
Byler: Uh, my name is Peter Byler. Um, I have a few concerns with this particular
agreement. Um, you know ... you guys have been very judicious, I think, you
know, even before I lived in Iowa City with ... with these TIF agreements and
you've done a good job of sort of limiting the City's exposure on the negative
side and I appreciate that. Um, I'm glad that, uh, Mr. Davidson made one of these
graphs again because what you see up here ... is, you know, the light blue is
general fund money. That doesn't have anything to do with TIF. I'm going to
present this a little bit a different way. You know, the City would get the light
blue at the top, whether this hotel was built or not. Um, that's from ... yeah, the
property might have the same owner and it might be part of the same block, but
urn ... you know, in my view, you know, the City staff has spent probably a lot of
time and creativity and... and they're very good, uh, creatively at... at structuring
this finance, but we're basically grasping at straws here how to underwrite a
business plan that's not going to stand on its own, and um, I think the line in the
sand, like a good line in the sand would be to say at 100% of your legally allowed
TIF. That's where you need to be to stand on its own, and Mr. Davidson just said,
this property at 100% of the legally allowed TIF, which is just the dark blue, right,
that would stretch out to 24 years or whatever it was. The bank won't give `em
their money if they do that. So instead they're asking us, the taxpayers, which is
the light blue part, which would exist with or without this development, to
underwrite something that even Hills Bank or whoever they're going to won't
even give `em the money for that. So I would suggest kind of taking a little bit of
a step back and saying just, you know, where is our line in the sand on these TIF
agreements. I ... I support, you know, we have to be competitive with other
jurisdictions, I understand that, and ... you know, I understand both in residential
and ... and these hotel deals, it is hard to make, you know, the numbers work for
developers. So ... I have no problem actually with the dark blue part of this. Um,
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I just, you know, the purple part, you know, you can argue that, you know,
refunding someone's sales tax on what's basically a commodity sort of creates an
un ... uneven playing field, but even the purple part, you know, I could see waving
our hands in the air and saying you can have the purple part. The light blue part is
the property tax I pay and the property tax you pay for your homes and your
businesses. That's just general fund money that would exist with or without this
hotel. So, you know, I would suggest taking a step back, you know, maybe giving
the staff some direction that let's work with the developer to become more
creative with our business plan (laughs) so that it... it would work instead of being
more creative with these financing schemes so we need, you know, we need more
colors than Microsoft Excel has, you know, off the top of the page here, urn ... you
know, I ... the last thing I'll kinda say. I have ... you know, there's a couple
different concerns I have that I'm not going to go into, such as the developer is
asking for the $8 million which is the maximum he can because that's the equity
he's putting in, but then he's turning around and paying himself $2 million on day
one, which is ... you have to think about whether he's really... should be eligible
for $8.8 million if he's paying himself $2 million. That's one thing. The other
thing is, you know, a vacant lot is ... is a blight, is a ... is an urban renewal need.
But if this developer can't pay his bills and needs 500, 600, 700, $800,000 a year
to break even, what's going to happen in year 14? All of a sudden he has to pay,
you know, $600,000 property tax bill, he's proven for the first 15 years he can't...
what if he puts additional debt on the property? What if he doesn't set aside
enough money for capital improvements? We're not going to audit him every
month and make sure he's doing that or not doing that. So, you know, a ... a
vacant lot is not nearly as blighted as a 15 -story hotel building that in year 15
suddenly has a $600,000 bill come due that it can't pay and goes through
bankruptcy and receivership or whatever. So I would just suggest, uh, taking a
step back, urn ... taking a look at being creative with a business model or a hotel
that can stand on its own a little bit, or ... with only the dark blue, or if you want to
throw in the purple, but let's not go into the light blue, cause that's money that the
City needs to operate. You guys know we need that money to operate. That's
general fund money ... that we're going to turn around and give because this
business plan is not good. So, those are my comments. Thanks for your time.
Markus: Mayor?
Hayek: Yes?
Markus: Normally we don't engage in back and forth on these issues. Tom, could you
come forward and talk about the blue area, uh, or Jeff, because that is an
increment that's based on a subsequent building being built. Um, it's not money
that's coming out of the general fund. It's ... it's money that ... well, it's no
different than the tax increment that's being created on the hotel. This is the same
site, and that particular building is generating tax increment financing on that
particular portion, which then means that that amount won't be available for
incentivization of anything that they want to do with that building, as well. They
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recognize that going forward. Part of the argument here is to shorten that period
of time, get that project built, and start to get that money redistributed to the
taxing jurisdictions in terms of the increment. The way you characterized the
money coming from the general fund is really no different than the tax increment
financing, as I understand it, from the hotel to begin with, but, Tom....talk to that!
Jackson: Tom, you got all of that right, so there's nothing much to add to that. I think the
point, again, is...
Hayek: Tom, would you... just...(mumbled) introduce yourself for the audience.
Jackson: I'm sorry! Thank you, Mayor, uh, I'm Tom Jackson with the National
Development Council and I'm under contract with the City to help with financial
underwriting on, uh, gap financing requests from developers. Um, I ... I... for the
largest ... our highest level of context is ... want to say first that the City's going
through a transition where its past TIF supported projects have been financed
upfront by the City, uh, through bonds, for the most part! There's been smaller
deals where that hasn't happened, but certainly no, um, highrise that I ... I'm aware
of, uh, where that has, uh, not been bonded by the City for the public
improvements and then the City pays off the debt by collecting the increment over
time. Um, here we have a relatively new situation. The policy's been evolving
and ... the only thing you're seeing with this chart here is an effort to look at, uh,
when the City in the past say would bond $5 million, that $5 million was needed
for the current cost of construction on a project, but the total cost to the City was
not just $5 million. It was $5 million plus the interest overtime on the bonds that
they took out. Here the burden has been switched back to the developer. The
developer has a cost of funds for the initial development, not operations. We'll
come back around on that as well. Uh, and I'm ... I'm sure the developer and the,
uh, hotel operator would be glad to speak to the other issue you raised about
operating deficits. That ... that's not the situation here. This is financing the initial
development of the property. So, the only reason this acceleration was suggested
was in looking at other sources of funds, including both the hotel/motel tax and
any possible increment from an as -of -yet, not -on -the -drawing -board commercial
component to this adjacent development, and the possibility that that can be
rebated, and I hope you notice there's several layers of redundant possibility that
there will be no ... rebate available. Um, to accelerate the (mumbled) but it gets...
it just gets back to the time value of money for the developer, that if these other
increments are available... they can recoup... repayment on the debt that they had
to incur to get the initial development built, and that's debt that's associated, um,
not with the value of the finished product, but of its initial cost. We have a gap
between value and cost here, and that's what's being, uh, trying to be addressed
through this proposal. So the only other thing I will say on the .... your worry
about the rebate running out and all of a sudden, uh, an operation that's... that's
running in deficit doesn't have that rebate any longer. It's not a viable business.
The independent market study that was done for the hotel shows it cash flowing.
That's just a projection. They could outperform that projection. They could
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underperform it. Uh, at this point, there's enough cash flow left out of operations
to provide some return to the developer. We've used that independent projection
to help size the public gap, to maximize the amount of debt that's coming into the
deal, to maximize a reasonable amount of private equity coming into the deal, um,
which I know you had some issues with as well, but that's the explanation of
what, uh, we're attempting to do with this layered, uh, approach. Since it's a
rebate arrangement for the developer, there is no guarantee... that... the hotel/
motel tax is going to come in ... in that amount. It's up to them to manage the
property so that they're getting room nights and revenue sufficient to pay the
hotel/motel tax so 50% of it can come back to `em. And, at this point there is no
light blue project. Um, as Tom said, it's not coming out of the current general
fund. That's a future projected increment over and above current collections,
which, um, again, there's risk involved in whether or not that will ever
materialize. If it does, it has the potential to pay them back quicker.
Hayek: Thanks, Tom! Sothis is ... this is still a public hearing if anyone else wants to
address the Council ... I invite you to come forward!
Beadleston: I just wanted to raise a question that this is called the Hilton Garden Inn but I
didn't really (both talking)
Hayek: Sorry to interrupt! Could you actually give us your name as well (both talking)
Beadleston: Joy ... Beadleston. So I didn't see much but cement and I wouldn't... really want
to see the future of Iowa City become a city where people live here who just love
the beauty of cement, that they actually add, um, some landscaping, and I didn't
see the design of the parking lot. If it's going to be something that's safe and
accessible, and since we are building a lot in Iowa City that I would request that
we really look at, um, making sure that people with disabilities (coughing,
difficult to hear speaker) can easily still access around these construction sites,
because ... in the past there's been really dangerous situations with people with
disabilities, and since I advocate for people that have disabilities, that's a big
concern of mine, and also that you know it doesn't become another building with
just a lot of cement, which know they're replacing a parking lot that looks pretty
bad but ... um ... since it is going to be called the Hilton (laughs) Garden, I think
they should present what the landscaping'll look like, what the parking lot would
look like, and also because I have the wisdom of being around, um, these kinds of
developments and then ... the cities that I've lived in have given people a lot of
money and it hasn't worked out and then it's been a burden, a great burden on
people that have to pay those taxes ... that get raised because they have to fund all
these failed opportunities (laughs) that you know were once big ideas. So, that's
all I had to say about that.
Hayek: Thank you for your comments. I... and we're not set up to get into a back -and -
forth, but I will point out that the .... the parking is from the City ramp, urn ... I
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don't believe there's a parking ramp associated with this, uh, redevelopment.
Anyone else during the public hearing?
Landry: Good evening, Doyle Landry. As of 7:00, um, being that Hilton has a, um,
section on its web site with regard to diversity, as of 7:00 central standard time,
there wasn't, um, that was my delay in terms of the arrival, there's nothing on file
as it relates to Hilton's diversity plans from a supplier, uh, standpoint. Always
welcoming opportunities in Iowa City that provide jobs, but jobs are different
from business ownership. So with regard to women and people of color, um, is
there something that can be presented this evening that has already been shared
with you as the Council for, uh, supplier, developers with regard to this project in
terms of equality with regard to race and gender?
Hayek: I don't have an answer to that, um, but...
Landry: Because, again, Hilton has a stated policy as it relates to diversity and ... as we see
recently, we have, um... as a country we can't even get together over coffee about
race. So, um, taking it a step further ... if we're talking about building
development, going back to what ... how Iowa City started the year in relation to
race, um, this is a major project and if we're talking about true inclusion from a
business standpoint, um, this is the (mumbled) — there's nothing on file and for
any ... any individuals who go further in terms of Iowa City walking its talk, this is
a major project with a brand name that has stated policies as it relates to diversity.
Again, nothing against developers because again ... great project, great for Iowa
City, but if we're talking the root causes of division, um ... as it relates to diversity
in business, this would be a major litmus test for the City. So this ... I'm not in
opposition of the, um, project. I want that to be for the record; however, when we
say (coughing) Excuse me! Fair is fair, um, there was a work session and
there's... you're... you started your meeting at 7:00 and sometimes forms ... but I
say that from a standpoint that there's nothing on file, and Hilton has a stated
policy as it relates to supplier diversity. Supplier development as it relates to
diversity, with regard to race and gender. So on behalf of women who own
businesses, excuse me, who can be suppliers, and people of color can be
suppliers, um, both are noticeably absent from this development. Thank you.
Hayek: Thank you for the comments! Anyone else?
Dobyns: I did have a question for Jeff. Do you want me to (both talking)
Hayek: Sure!
Dobyns: Jeff, you could ... come up. Um ... Jeff, over the last few years I've really enjoyed
the conversations that we've had as you've tried to bring this old science major up
to, uh, speed regarding, um, economic development. Um, I'm so thankful that I
wanted to replicate the conversations in a public session here. So when I take a
look at this and any TIF requesting project, my question is anyone who drives
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along Burlington sees that we have a very special project that is coming up with
the emergence of the University building. So one would ask if it's so great, if the
University is so excited about us, um, meeting this with a equally great project,
why can't it support ... why can't the market support it on its own? Why is there
what Tom refers to as this `gap analysis?' Why can't it ... if it's so special, why
can't it stand on its own? Why does there need to be public support?
Davidson: Yeah, as ... as we talked at the work session, um, Rick, a lot of it has to do with
just the dynamics of the hotel business. Uh, the increased risk associated with a
hotel. You heard me state earlier that on any given night, a percentage of a hotel
property is not generating revenue, which is different from a, uh, residential
building, where there's probably at least an annual 12 -month type lease or a
commercial building, which may have a five ... a five, excuse me, a five-year
lease. Um, so ... which means that every single day of the year it's ... it's
generating revenue that an investor or a building owner can then build into their,
uh, financial model. Much more speculative, much higher risk with a hotel, and
that is why it is not uncommon for downtown hotels to have to have some type of
public assistance, and we have examples here in eastern Iowa ranging, uh, from
the type of thing that we're proposing, or even less. For example the ... the
Sheraton, when we assisted them with their renovation project, uh, in 2010, which
got that property back to where it... it needed to be in a renovated state. I mean
we had a modest amount of assistance, but there was assistance nonetheless, and
assistance that they indicated they would not have gone forward with the project
if we hadn't of been there. We have examples here in eastern Iowa where
municipalities have to, uh, own downtown hotels in order to, uh, have them, uh,
because the...the private sep... sector simply cannot take the risk and do that, and
we are delighted to not be in the hotel ownership business and we know first-hand
that there are instances of that pulling down a ... a bond rating for a municipality,
almost singlehandedly, and so we really think that the arrangement we have here
with assisting in the financing of the project for a period of 13 years, but with the
ownership still over on the private sector side is a much better deal for the City,
uh, than...than those other arrangements.
Botchway: Kind of continuing a little bit from what, um, Rick said about you know the
University and the fact that there's going to be a music, um, building and art
museum. Um, and this is just kind of a question that came up after the work
session, um, and obviously before now. Is there any discussion or involvement
with the University as far as them helping out with this project at all, and whether
or not that would even occur in this type of project?
Davidson: Yeah, I will ... I will admit, Kingsley, that we did have discussions with the
University about them actually participating in the financing of the project, and
that's simply not something that they were able to do for a number of reasons.
But they are very ... you know they do feel like the existence of the Music School
across the street, and the Art Museum next door, is going to clearly benefit the
hotel, and so I think they feel like they are participating in that... in it for that, uh,
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in that manner. They were crucial in us getting the flag, uh, upgraded, and so we
feel like they've definitely been a partner and a participant, even though they're
not strictly speaking assisting with the financial gap.
Payne: I have a question about the, um, 50% of the ... uh, hotel/motel tax. So did
the ... I'm ... I'm assuming... that the, uh, Convention and Visitors Bureau is
agreeable to reducing their... (both talking)
Davidson: Yeah, that's one of the first things ... first things we checked, and they are. They
feel like it's such an important project for downtown Iowa City and ... and
they ... they, uh, you know, allowed a ... an arrangement with the Marriott Hotel, as
well, in Coralville and so, you know, for those... projects of that scale, I think they
feel it's .... it's appropriate to help with the financing and they ... they agreed to
that.
Markus: Do you recall the, uh, ratio that, uh, the Marriott contributes to CVB?
Davidson: I believe ... I believe 100% of the Marriott, uh, hotel/motel tax goes to assist with
the financing of the project.
Mims: So 0% goes to the CVB?
Davidson: I believe that's correct, for that property!
Payne: For how many... years? I mean...
Davidson: I don't know that, Michelle (both talking)
Payne: Okay, cause this is like for eight years, right?
Davidson: Uh... no, it was for longer than (both talking)
Payne: Was it 137
Davidson: Let's see ... it was from (several talking) year 2 to year 16, so 14 years.
Mims: ...no, but that ... oh, I'm sorry! Never mind (mumbled)
Markus: The ... the other thing that, uh, was brought up, Mr. Landry brought up, the issue
of, um, minority, um, contracting, um ... gender-based contracting, whether
general or sub, and then, um, the position of the developer and the, um, hotelier in
this project, whether, um ... uh, you know, what the employee, um ... um, reach -out
is to involve minority and gender, um, candidates and how to recruit, and I think it
would be appropriate for, um, the Kinseths, and/or the developer, to speak to that
issue. Um, the... the... the thing I heard Mr. Landry say is that ... that, uh, the
Hilton has a policy in that regard. You've dealt with Hilton before. Uh, is that
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your understanding and what's your position regarding, um, minority, um, subs
and contractors, um, ownership or participation, and then in the actual
employment, how do you address that issue?
Kinseth: Well... certainly we would be aligned with Hilton. You know, as a franchisee of
Hilton, and um, done a lot of business with Hilton, they are very, very active out
there in the whole community, in communities across all of America, and I think
Kinseth, and certainly our development team, would certainly be in line with that.
You know, obviously when we're taking bids on a construction project, if there's
minority-owned firms, uh, you know maybe ... in fact I got an email today from a
female -owned firm that they wanted to bid on all of our mechanical systems and
things like that, and certainly if they are the best, uh, fit for that job, we certainly
would do that. No question about it. So both on the construction side and in
operations, Kinseth, uh, you know, I think we're very, very active, you know, in
promoting, um, you know, whether it's minorities or, uh, women, anything, and
across our whole organization, we have, urn ... uh, a large minority employee
population across, you know, we're in probably 50 different cities, um, both
inner -cities and suburban areas, small towns. You know, it doesn't matter where
it's at, we're very, very active.
Markus: Okay. So, Bruce, that's clearly identified in your bid documents, as well as your
recruitment for employees?
Kinseth: I can't say that the documents that'll go out when we put together a construction
plan would be identified in there. It wouldn't be a bad idea. I don't think we'd
have a problem. We'd have to all talk about it, but I'm ... I'm sure that wouldn't
be a problem. Probably something when we get our plans from the
architect... you know, they are ... you know we put `em on a web site, you know,
and anybody and everybody can access them, and everybody, um ... and we're not
gonna ... Kinseth's not building the hotel. These gentlemen here are going to build
the hotel, the Hodge Group and stuff, but uh, you know we would certainly be,
uh, promo... promote that and, uh, have no problem with that at all.
Markus: Yeah, and we would be glad to offer our assistance through our Equity Director to
assist in language that would encourage that kind of involvement and while I
can't sit here now and... and require that sort of, um... documentation, I think the
suggestion was valid and I'd like to see, um, some effort on your part in regards to
this, especially considering our financial participation.
Kinseth: Absolutely!
Hayek: Any other input from the audience? Okay, I'm going to close the public hearing.
b. CONSIDER A RESOLUTION
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Payne: So I'll ... I'll move the resolation ... resolution to amend the Urban Renewal Plan,
Item 9.
Dickens: Second.
Hayek: Moved by Payne, seconded by Dickens. Discussion? Roll call, please. Item 9
passes 7-0.
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ITEM 10. HOTEL DEVELOPMENT - RESOLUTION APPROVING AN
AGREEMENT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN
THE CITY OF IOWA CITY, IOWA, AND IOWA CITY HOTEL
ASSOCIATES, L.L.C.
Mims: Move the resolution.
Throgmorton: Second.
Hayek: Moved by Mims, seconded by Throgmorton. Discussion?
Throgmorton: Yeah, I ... I'm not going to support this. (clears throat) It ... it seems to me as
though the developers all sitting out here in the room have put together a really
good project and I think it's, uh... will ... will be an asset for the city. It's in a
great location! So I ... I want to acknowledge that, uh, right off the bat. I'm sorry
I sound so weird to myself because I have this stuffed up head, you know, from a
cold, so ... get distracted, but that leads to the very question that Rick asked, uh, at
least for me ... at least that ... why is it necessary to offer a private developer public
financial incentives to build a new hotel in such a great location? And we
discussed that in great detail in our work session, uh, and Jeff, uh, responded
to ... to Rick's good question about that point. Uh... but I know there's lots of
people in the public who would wonder the same thing — why in the world would
such a ... an appropriate project need financial support when it's located (laughs)
next to the museum, next to the music center, a forward pass away from Kinnick,
uh, a long three-point shot away from Carver Hawkeye Arena...
Mims: A long one!
Throgmorton: Yeah (laughs) and, you know, just ... right next to the downtown, I mean...
Payne: So are you saying that you just don't buy what.....what the, um, consultant is
telling us?
Throgmorton: Well I think to be completely honest, uh, I have a great deal of faith in Tom
Jackson. He clearly understands the financial aspects of this, and I have
considerable faith in our staff who have obviously done a lot of work about this.
But I have to form my own judgments, based on my own understanding and what
I'm able to make sense out of. And, uh, when I think about this project, I ... I
think about how ... uh... it ... I think about its location. (laughs) You know, I
always was taught: location, location, location! That's what matters, and I can't
imagine a better site ... for a hotel than this! Uh, and I ... as ... as Tom and I sort of
discussed during the work session, I, uh... I ... (clears throat) I and many others
here in the room are fully aware that there's a tendency now to have more people
want to live in the core of cities. There's... so that ... means that more people
would be more inclined to want to, uh, have access to high-quality hotels in the
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core of cities. Uh, and I'm very conscious that the context has changed from what
it was 10 years ago, and Terry, you raised that interesting point about how this
particular site is set ... has, uh, sat empty for 15 years and it...it has for sure! I
used to park right next to it (laughs) uh, but... (clears throat) the context has
changed considerably because the mus ... the new music building is being
constructed, because the University intends to build that new Museum of Art,
because we've invested money in the downtown, and so on.
Payne: Which ... which really means though that the money would be paid back sooner,
right? So if...if it really is going to be ... what you say, that it, you know, it's
location, location, location... that purple up there, would be bigger because more
rooms were br... be rented every single night, so we'll pay it back sooner, so ... I
mean, if... if they don't get it, they aren't going to build it so I ... I don't
understand what your opposition is if...unless it's just, I mean, you've said you...
that it's a good project, so you're not against economic development. So I
don't ... I'm not following your line of thought.
Throgmorton: I ... I'm against the financial incentive, the ... the public, um ... um...
Payne: So you'd rather the lot ... that it be an empty lot and us only get $11,000 a year?
Throgmorton: No, I'm ... you know, I'm trying to think about this like a ... a market economist
would be thinking about, uh, about it, as I ... I think a good conservative, free-
market oriented kind of person would think. And that is ... it's a great location, uh,
there are competitors who might want to build there, there is a ... a supplier who
owns the land and would be able to sort through the price, uh, you know, the...
the ... the supplier and the ... and the, uh, the consumer so to speak would negotiate
how to use the property, and... (clears throat) and I think, uh... it would be an
excellent location for a hotel. So I would think ... you know, since we've already
gone through this discussion about CA Ventures versus, uh, versus the other firm
for the Court and Linn Street site. There we had a couple firms competing over
the site, and they came to us with two excellent proposals. Neither one of which
required financial incentives, and ... you know, it seems to me, why ... why can't
that happen in this context too..
Mims: What I would do, Jim, is compare it more to 316 Madison, where the developer
came to us on that one and said, I can put up a five or six -story building, and not
ask for any TIF, and we can get a typical run-of-the-mill potentially mediocre
quality building that in 30 years is going to be probably kind of run down and not
generating as much tax revenue for us, or I can build a 15 -story highrise, much
higher quality building, but in order to do it, I need some assistance in the
construction of that — financial assistance in the construction of that. It's going to
cash-flow just fine, and that's what Tom Jackson just said about this property.
It's going to cash-flow just fine. So ... based on those indepen ... that independent
analysis, we're not worried about the project going bankrupt. The issue is how
does the developer build the structure to begin with? How do they get that
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financing to build to begin with? So yeah, we could sit back and say we're not
going to participate. And the owners of the project then ... or owners of the
property are either not going to do anything, or they're going to go out and see the
best they can get, and again, we're going to get maybe a five or six -story building
that's not going to require public participation. It's not going to begin to generate
anywhere near the tax revenues over the long haul, or the hotel/motel tax revenues
over the long haul. It's not going to be anywhere near the quality attraction to
downtown Iowa City ... that the Hilton Garden is going to be. So I ... I guess to
me ... I believe that we have hired a good, quality, excellent consultant in the
National Development Council and in Tom Jackson. I believe in the analysis they
do. I trust in the analysis they do. I don't believe they've led us wrong yet. I
look at the facts in front of me to make my decision, not what I just kind of think
inside. I'm looking at the numbers that have been presented to us and the analysis
that has been presented. We need our income tax base, or excuse me, our
property tax base to grow over the long haul, especially as we see the property tax
changes take place that the State has ... has put in place in 2013. So I look at
things like 316, I look at things like this project, I look at the St. Pat's site, the
Court/Linn site, which ... the fact that there's no incentive asked for there, I don't
think has anything to do with the competition between the two. I think... Tom
Jackson from NDC and our staff have made clear, the big issue there, one, was the
size of that plot of land and the scale of the ... of the buildings that they could put
on there that will cash-flow that much better so they didn't need any assistance in
the construction. So ... I ... kind of with Michelle, I ... I don't quite understand your
logic in that you think it's a great project, it's a great location ... um ... but you
don't want to put any money into it to get a higher quality, better (both talking)
Throgmorton: ... great project in a great location, the market would ... would, um ... (both talking)
Mims: Then show me the facts to support that!
Payne: And I... and I don't... and I'm with Susan, I don't see the facts to support that
because we've had an empty lot for 15 years! Now you can go back down the
ro... the path that, you know, we've done things downtown to make it more
attractive, um, and that kind of thing, but even in the last four years, nothing has
happened there. So ... I mean, and ... nothing! (laughs) So I mean you can't...
you...
Dickens: I ... I went to meetings four years ago when the University was talking about
building on that property. Nobody jumped forward to buy the property across
there where this hotel is going. So there was an opportunity at that time to buy it
probably cheaper than it is now, and nobody did it! They've actually come with a
great plan and ... it seems to be the right fit for this ... this property. University
seems to be on board with it. We've gotten a better hotel out of it than, uh,
originally was designed. I think they came to us a year and a half ago with a
preliminary. This seems to be a much better project. So ... I ... there ... there's been
opportunity for somebody to jump ahead and do something here and they haven't,
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so I think... these... these people have come with a great ... a great plan and I ... I
think we can benefit from it.
Dobyns: And, Terry, I think now that you can actually see the building next to it, it might
generate more incremental interest, but still I think, um, the taxpayer would be
comfortable with the fact that we're super -charging the existing interest in the
area. My sense is that if we don't do this, in five or 10 years we'll take a look at
this hotel that the market would bear at this point, and we're going to look at this
great building, this great opportunity, and (mumbled) going to feel like I blew it,
if I didn't allow the TIF to super -charge, um, this economic development effort.
And that's the way I take a look at it because, you know, I ... I think I represent the
stakeholders, um, that aren't be ... going to get the money ... that they're initially, I
mean the School District, the County as well, because I think in the end, I think
people would recognize that the University could have looked elsewhere. It could
have made different decisions. And I'm really glad that that building is going up,
right on Burlington, right in our Central Business District.
Hayek: And you know I ... I ... you raise a fair question, Jim, in terms of you know
what ... what would just occur under normal market conditions, um, you know,
and ... and you look next to this site, or across the street from this site, and you see
what could occur, which is, you know, yet another garden-variety, five-plex, uh...
with ... with pretty cheap housing and not much added to the area, and frankly
we've got too much of that. Um, and those occurred, uh, through natural market
processes and ... uh, without any sort of City assistance, um, and I think that's an
indication of what ... what the so-called market would bring on its own without
any participation, um, from the City. I don't think it's a fair comparison to look at
the Court/Linn site. I think that's a ... that ... that's a distinct, uh, ex ... example, I
mean, it's a huge tract of land that the City acquired through basically a tornado
and what occurred as a result of that. Um ... and ... and ... and paid dearly to
acquire, um, but... but... but that's City -owned land and the scale of the residential
there, uh, is ... is such that, um, you know we have this interest from... from... from
out of town developers, urn ... and frankly there may be a TIF request for a portion
of that, as we heard earlier tonight, uh, with respect to the ... to the incubator
portion, but I ... I don't think that's a fair, um, fair ... fair comparison. We ... we,
location is significant, obviously, but we've... we've... we've done this on the
pedestrian mall. We did this on Madison. Urn ... and in other areas in ... in what I
would call prime ... prime locations. Um, you know this went through significant
vetting on the part of staff and with our consultants, and with the ED ... with our
Economic Development Committee, um, but you know, you ... do ... do I, uh, am I
enamored with TIF? I ... I am not, you know, to ... to some extent it is distasteful
to me, um, but I ... but I think you're coming to this from a .... a ... more of a, you
know, a philosophically pure academic per... perspective on this, which is...
which is okay, but ... but the fact is we're not operating within a vacuum. We've
got, um, a region in which this kind of, uh, financial support for redevelopment is
a reality, urn ... uh, and that's the ugly truth of...of...of our ... our region! Um, and
...and so you ... you look at this, you, uh, want to attract the best possible product.
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I think we are getting a substantially better product than what would occur
naturally. Um ... can you have a philosophical aversion to that and say just let the
market build what the market will build? Of course you can, um ... uh, and on that
we'll just have ... have to disagree, but at the end of the day I have faith in, uh, the
vetting process we put this through, um, and again, you know, unlike instances
where a city builds a hotel and owns a hotel and operates a hotel, hoping to ... to
break even on it, um, or provides an upfront rebate, uh, where the risk of the
public subsidy is on the taxpayers going forward, this is structured to, uh, not
have the City engage in this kind of ownership, but ... and ... and not provide
upfront funding, but instead set up a, uh, a... a, uh, a protected approach whereby
these rebates occur based on minimum assessments that they've agreed to as part
of the development agreement, and so ... these only, these rebates only occur, these
dollars only go back to the developer if those thresholds are met, uh, and if
they're not, they don't! And so ... that's why I think this is a different animal.
That's also why I don't approach it with the same ... you know, philosophical
bend, I guess is (both talking)
Botchway: I had one quick question for Tom. Not that Tom, but Tom Jackson. Did ... in
the ... in the independent market study, did it take into account, um, the building of
the Art Museum/School of Music?
Jackson: I don't recall that they did. They recognized the strength of the overall, um,
market, but not ... the immediate, um ... adjacency of the ... the new construction,
Council Member.
Botchway: Okay.
Jackson: So...
Markus: Tom, while you're still up there ... um ... Tom doesn't find a gap with every project
that he evaluates. And, um, we did have a hotel project in the vicinity that
probably had, um, a location that did not have the same land value as this
particular land value, and probably didn't have the same degree of flag for its
hotel, and what was your finding?
Jackson: There was no gap.
Markus: And what happened?
Jackson: Um, it got built anyway. So...
Markus: So, my point is ... in his analysis, he doesn't always find a gap. He finds ... he ... he
does the evaluation to measure that, and then he comes back and reports that to
us. And the staff internally goes back and forth about that gap, whether we can
fill the whole gap, whether we'll try and get it less than that gap, but I wanted to
give you can example... where it's actually a hotel that's been built in the last
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three, four years in this vicinity. He found no gap, reported that back to the
developer, and the developer recognized that and proceeded to develop, and that's
another fairly significant hotel developer, as well.
Hayek: Thanks, Tom!
Throgmorton: Uh, so before we (both talking) uh, Tom, you don't have to come back up. I just
wanted to (speaking from audience) No, you don't have to come back up! I just
wanted to say something to you. Uh, I, uh, I ... uh, always benefit from learning,
uh, from anybody who knows one hell of a lot more about any particular thing
than I do. So I would really like to sit down with you and spend maybe as much
as an hour ... uh, just ... probing your mind some, you know, to ... to make sure I
fully understand how you approach a gap analysis. Uh, I know we've had various
discussions about this over the time, but uh... it's a complicated beast...
Jackson: You can have as much time as you need, Council Member.
Throgmorton: Yeah, good, so...
Mims: Careful, it's on the City's dime! (laughter and several talking)
Hayek: I think it's a flat fee! It's okay! (laughter and several talking)
Throgmorton: I don't know, I don't know how to ... how to work out a time for it, but I would
really like to do that.
Jackson: Let Wendy and Jeff know (both talking)
Throgmorton: Wendy? Yeah, okay, great (both talking)
Jackson: ...be glad to schedule!
Throgmorton: ... I'm still gonna vote the way I said, even though you all have made very good,
strong arguments, but I really want to sit down with you and, uh, learn more from
you so I can feel more confident about wanting to....
Jackson: Understood! I look forward to the conversation (mumbled) Council Member.
Hayek: Further discussion? Roll call, please. Uh, Item 10 passes 6-1.
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ITEM 11. CHANGE HOTEL TAX FUNDING FORMULA - RESOLUTION
RESCINDING RESOLUTION 05-113 AND ESTABLISHING A NEW
POLICY FOR USE OF FUNDS DERIVED FROM HOTEL -MOTEL TAX
Dickens: Move the resolution.
Payne: Second.
Botchway: Second.
Hayek: Moved by Dickens, seconded by ... Botchway. Discussion?
Botchway: I have a quick question ... for Tom. Um ... or whoever is (mumbled) and does this
type of stuff. Can we ... so obviously there's a change in the hota... hotel tax
funding formula. Um ... is there any particular restrictions on how that formula
can be done?
Ford: Yeah, uh, hi! Wendy Ford again, uh, Economic Development Coordinator. The,
uh, rules... the... the State law that governs hotel/motel tax dictate that at least
50% of that collected needs to be used for tourism -oriented activities I think is the
phrase they use, which obviously is rather broad, uh, and I think ... which,
um ... uh, explains that the 25% that go to the Convention and Visitors Bureau and
the 27 1/2% that go to Parks and Rec, uh... are tourism, uh, and that 47 1/2% are
the other. Does that help?
Botchway: Yes it does!
Ford: Okay! And I just wanted to point out also that, with the estimates from the Hilton
Garden Inn, um, up for hotel/motel tax being about $286,000 a year, that would,
uh, and... and if half of that was rebated back to them, that would be $143,000 a
year to them, and in using the same proportions for the distribution of the rest of,
uh, the other 50%, uh, $67,925 would continue to go to the Police protection,
$35,750 would go to the CVB, and $39,325 of those new taxes would go to Parks
and Rec.
Hayek: Thank you, Wendy! Further discussion? Roll call, please. Item 11 passes 6-1,
Throgmorton in the negative.
Karr: Motion to accept correspondence.
Botchway: So moved.
Payne: Second.
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Hayek: Motion from Botchway, seconded by Payne. Discussion? And can we include...
this stuff which I don't think we accepted into the record?
Karr: For proclamations I don't (both talking)
Hayek: Got it! I just noticed it.
Karr: Yep!
Hayek: All right! Further discussion? All those in favor say aye. Opposed say nay.
Motion carries.
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ITEM 12. RELOCATION APPROVAL LETTER — MOTION FOR APPROPRIATE
DIRECTION FOR STAFF TO RESPOND TO A REQUEST FROM THE
CITY OF CORALVILLE FOR A LETTER INDICATING NO
OBJECTION TO THE EXPANSION OF LEEPFROG TECHNOLOGIES
IN CORALVILLE.
Markus: Can I, um, just briefly summarize for the public's benefit?
Hayek: Uh, sure. (both talking)
Mims: ... deferral?
Hayek: Why don't we just ... move deferral, so we can get it on the floor...
Payne: Do we need to say move deferral...
Mims: To when, do we know?
Hayek: I'd say indefinitely.
Mims: Move to defer indefinitely.
Throgmorton: Second.
Hayek: Move by, uh, Mims, seconded by Throgmorton to defer Item 12 indefinitely.
Discussion?
Markus: Yes, this is a request, uh, from the City of Coralville. We had a business, uh, that
has existed in Iowa City for some time. Uh, they made an interim move to, uh,
the City of Coralville. Urn ... we had been working with this company to try and
permanently locate, uh, their operation, an expanded operation, uh, here in Iowa
City, uh, during the period that they were interimly located in the City of
Coralville. Um, a, um, a relocation expert was secured by this company. Um, our
communication kind of dropped off at that point, uh, probably both directions, but
um, they have since notified us, uh, and requested a letter from us to, um, waive
objection to them securing a, uh, State grant for employment purposes, and we
were also advised that there is a TIF project involved, uh, with this. The TIF
project, uh, and the State project both require, uh, some level of approval from the
City of Iowa City. Uh, we have requested additional information to be able to,
um, discern, um, to what extent, um, the incentives were offered, and to what
extent, uh, that was related to the State laws, uh, to separate references in the State
law, and... once we know that information, we will, uh, report back to Council,
uh, with a recommendation. It's not our desire to, um, impose a hardship on a
business, especially a business that's growing. But at some point, uh, it's my
opinion that if incentives are being offered, um, that the City needs to take a
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position on that, uh, so that the message is loud and clear that we are not going to,
uh, be party to having our businesses relocate to other places in our immediate
area with the use of incentives, which I believe the discussion going back to Von
Maur, uh, which resulted in revived State legislation, um, was an indication that
the State didn't believe that that was a wise use of tax increment finance, uh,
financing either. Again, I'm ... I'm concerned about the business, but I can't
imagine there isn't a place in the City of Iowa City that we couldn't accommodate
the growth of this business in our community. And so ... given the opportunity, I
think we could work with them and retain this business in its expanded condition.
So, um ... that should give you an indication of how I feel about it but I think
it ... it, you know, like most things it resounds to the facts that we know and we
don't have those yet, so ... more to come on that, but I thought it was important to
put it on the agenda, and I thought it was important for the public to understand
the issue that you'll be dealing with.
Hayek: (mumbled) to ... but to be clear, the analysis you need to do and the ... and the
information you need to collect is part of...your recommendation to the Council,
which you're gonna need to give us, with respect to the State law that governs this
kind of...
Markus: Right.
Hayek: ...relocation situation.
Markus: That's correct.
Hayek: Um ... and ... and so you ... you don't have that information and that's... that's why
you're asking the deferral, requesting the (both talking)
Markus: Yes, that's correct.
Hayek: Further discussion on the pending motion? All those in favor say aye. Opposed
say nay. Motion carries 7-0.
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ITEM 13. FOOD TRUCK VENDING - ORDINANCE AMENDING TITLE 9,
ENTITLED "MOTOR VEHICLES AND TRAFFIC," CHAPTER 4,
ENTITLED "PARKING REGULATIONS," TO ESTABLISH
PROVISIONS FOR FOOD TRUCK VENDING ON CITY STREETS.
(FIRST CONSIDERATION)
Payne: Move first consideration.
Dickens: Second.
Hayek: Moved by Payne, seconded by Dickens. Discussion? Anyone from the audience?
Anyone from Council?
Mims: Just glad to see it moving forward!
Hayek: Yeah, and I'm sure it will take different directions over time, but...
Mims: Right!
Hayek: ...excited to see what happens! Further discussion? Roll call, please. Passes 7-0.
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ITEM 14. COUNCIL APPOINTMENTS
Hayek: At our work session the majority of the Council agreed to appoint Max Parsons
and Michael Hensch to Planning and Zoning, and Derek Johnk to
Telecommunications.
Mims: So moved.
Payne: Second.
Hayek: Moved by Mims, seconded by Payne. Discussion?
Throgmorton: I'd like to observe that the decision with regard to the Planning and Zoning
Commission was not unanimous.
Hayek: Further discussion? All those in favor say aye. Opposed say nay. (several
talking in background) wait ... oh ... we've got seven, okay, I'm sorry! Motion
carries 7-0 on Item 14.
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ITEM 17. CITY COUNCIL INFORMATION
Hayek: Maybe now we should ... start the roast! (laughter)
Markus: Well, yeah, it's not a roast but I thought maybe before you ... if you chose to roast,
you might want to know the history of Jeff here with the City. Jeff was hired by
the Johnson County Council of Governments in January of 81 as an Assistant
Transportation Planner. He was promoted to Transportation Planner for JCCOG
in March of 1986. In 1991 he was promoted to Assistant Director of Planning and
Community Development, Executive Director of JCCOG. In June of 2007 he
became the Planning and Community Development Director, and in March of
2014 was named the City's Economic Development Administrator. And of
course in the 34 years, uh, that Jeff has been with us, he's kind of been the voice
and the face of...planning and development issues as he comes before you every
night and it gets broadcast out there, and in my years of experience I can tell you
there aren't many... staffers that are as smooth as Jeff Davidson is, and as candid
and as good at answering questions as we've seen for ... from Jeff over the years.
The other thing I want to tell you about is that, and it's kind of missed in this little
summary, is Jeff was incredibly instrumental in the Joint Communications, JECC,
uh, process that was created and if you go into Jeff's office, you'll see a plaque
with all the different public safety operations that honored Jeff for his leadership
role in pulling that together, and at times that was a very difficult and trying
process, and even afterwards ... it created a lot of angst, but quite frankly, it is the
model ... for what I would like to see this area get better at, and that's the sharing
of services amongst our jurisdictions, and Jeff created, you know, was a major
part of creating that effort and getting that working, and getting it to work as
smooth as ... as he can. The other thing I want to say is, you know we ... we are in
the process of streamlining different parts of the operation and we consolidated
the two departments, and we moved Doug Boothroy into the Director position,
and we moved Jeff into the Director of Economic Development. Many
employees may have, you know, been a little miffed about all of that. If Jeff was,
he never showed it. He was a true professional. He stepped into the new role.
He embraced it, and I actually think he continued to ... to make our economic
development efforts even stronger. So ... he's now moving on, uh, to his new
position with Keep Iowa Beautiful. I'm sure he'll be successful there. He'll
continue to live in the community. Uh, you may actually see him showing up at
that microphone with an ax to grind now (laughter) instead of trying to sell a
project and defend what he's selling to us. But Jeff has been a major part of our
staff team. We're gonna miss him, and we wish him all the wa, uh, all the best in
his new role, and in his kind of quasi -retirement that he's going into and so I think
he's looking forward to the new opportunity, and another summer of
motorcycling here in Iowa! (laughter) It's all yours!
Hayek: Well, Jeff, I ... I was glad to get that timeline because, uh, you took over with
Planning and Community Development about maybe a year, year and a half
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before I joined the Council, and so you've been part of my ... Council existence
from day one, urn ... and ... I ... I think I speak for everyone when I say, Jeff, you
are ... you are just about the most accessible and instructive and supportive and
knowledgeable, uh, City, uh, official, uh, whom I've ever worked with, and um...
I'm indebted to you because of how ... how much you helped me as a Councilor,
um, understand issues, work through them, consider the nuances, um, nail down
the facts, um, and ... and reach decisions, and that's the ultimate job I think of City
staff is ... to ... to help the Council with decisions that we struggle to make because
we come from... all sorts of backgrounds and... and don't have, uh, the
professional background to take up so many ... so many of the issues we're asked
to ... to deal with on a ... on a bi-weekly basis. Um, and to be able to stand up there
as many times as I've seen you stand up there, and field questions and have your
back turned to an angry crowd sometimes, uh, and ... and, uh, interact with us and
deal with the stress and the charged environment that is a City Council meeting
and the rezonings and the things you've been particularly involved with are where
the ... the charge is the highest, uh, typically, uh, is a testament to your
professionalism and ... and your skill set and, um ... uh, you ... you leave a ... a big
gap, and ... and uh, I'm going to miss you. I know we all are, um, but we are a
better community because of your service to the City of Iowa City.
Mims: I'm not going to go on and be as eloquent as Matt but I just, uh, say thank you,
Jeff, for your service, and certainly with my time on the EDC, as well as on... as
on Council, you have been, as Matt said, very, very helpful, very, uh, instrumental
in our success, I think, in terms of helping us to understand things and putting
things in a very clear way and, you know, when we still didn't get it, helping us,
and uh, just making sure that we had all the nuances to, um, understand things,
and so just really appreciate it and wish you the absolute best!
Throgmorton: So I agree with everything that Matt and Susan have just said, Jeff, uh... but I
have a slightly different perspective, as well. Uh, I first encountered you, I think,
in 1992, maybe 93, and I don't know how to tell you this, but actually you've lost
a little bit of hair and it's a little grayer (laughter) I ... I can't imagine why that
happened (laughs) but, uh... you ... you've done well here and, uh, I wish you the
best too. I just echo what ... what Susan and Matt had to say. Made a major
contribution to what the City's done over the years.
Hayek: And I expect to see the ... jogging through my neighborhood (laughter) which I see
you do, and uh, and the cycles.
Davidson: I am going to take advantage of the opportunity just to say a couple of words. I
really appreciate the kind comments. Uh, it's been a great collaboration with you
and the previous City Councils. It's been a real privilege, uh, the past 34 years. I
can't imagine anyone in my profession being more privileged than I have been,
and a... a wonderful collaboration between the City Councils, the developers, the
citizens of the community, the City staff. Uh, the last year has been great. Uh,
working with Tom. We appreciate... Wendy and I appreciate his trust in us and
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kind of ramping up the economic development effort. I think we're far ahead of
where we were a year ago, certainly the ... think of the last year's worth of
projects, I mean, really unprecedented and... and... and things that will change the
face of Iowa City forever. So, it's been great. I really thank you, and I ... I really
sense, in looking out ahead, which is of course what we all like to do, that there's
nothing but good things for Iowa City coming. So, thank you again!
Hayek: We appreciate it, Jeffl (applause)
Markus: We have one more ... um ... individual that I'm going to bring out, um, who's
actually spending his last night with us, as well. So ... where's Jerry? Bring Jerry
in! (several talking) Jerry Nixon, okay, the guy ... the guy behind the scenes...
come on in here, Jerry! And, you know I get accused of...of being able to make
you guys look good and bad (laughter) This guy, okay (laughter) can really
determine whether you look good or bad! You know, when you're scratching
your noses or, you know, he can put a color tint on you and, you know (laughter)
make you look blue or pink if he chooses to and ... he's not done that! So ... good
for you, but let me just give you a little bit of Jerry's history. Jerry started with
the City in 1990, uh, as a Production Assistant and was promoted to Government
Programmer in November of 2010. Jerry spent, uh, well over 20 -plus years
broadcasting, coordinating government shows, and has scripted and edited many
of our forums and education videos. He's been a valuable resource to the City
staff and community organizations in enhancing and preserving Iowa City. Uh,
obviously he wants to, uh, enjoy his retirement. He's going to be playing a lot
more golf and spending time with his grandkids, but the thing I'll tell you about
Jerry is ... amongst the staff, Jerry always is positive. He's happy about seeing us.
He's happy about, you know, the meetings, and he kinda jabs us back and forth,
so it's always fun to see Jerry at these meetings. He'll really be missed and ... and,
uh, he's really been a great employee for the City and, um, and he's done a
wonderful job, obviously, in his specific role of producing the shows and ... and
getting that information out for you. So, I just wanted to call Jerry in. He's kinda
behind the scenes. We get to see him, but the public doesn't normally get to see
him very much.
Nixon: Thank goodness!
Markus: And he (laughter) and he lives down the block from me, so ... you know, he's...
he's really a great guy and we're ... we will miss him as well.
Mims: Thank you very much for all you've done!
Nixon: Thank you!
Mims: It's been a pleasure!
Hayek: I would ... I concur with the, uh, the positivism.
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Mims: Yes!
Hayek: I mean, you know, especially, you know, the minutes right before a City Council
meeting. We're all kind of charged up, and some of us are ... nervous or dreading
what's about to occur or whatever, uh (laughs) and even during our breaks and
after the meetings, if there are tough ... but you, we see you back there, Jerry, and
you're always a smiling face and ... and there's some levity, uh, and it makes it
easier, uh, for ... for all of us! And, it's an incredibly important job because the...
the, um, the ... the coverage of our meetings is part of our transparency as a ... as a
local government. Um, it's incredibly important, and then there's all the stuff
that's not live. It's ... it's the zillions of things that go on the City TV, uh, station,
um, whether it's shout -outs to the new UNESCO Cities of Literature or
the ... many other things we do. You're... you're always part of that. You have a
great crew.
Nixon: Thank you! You'll be in competent hands in the future. They're a good crew.
Throgmorton: I want to know how it feels to be on television!
Nixon: Am I on television? (laughter) Thank you!
Hayek: Thanks, Jerry! (several talking) Good luck! (applause) So we're still on City
Council information. Does anybody have (both talking)
Dickens: I just have a quick, uh...
Hayek: ...start with, uh, you there!
Dickens: (both talking) ...Terry Cunningham this week. Uh, he was on the Paratransit
Committee, and uh, he'll be missed sorely. They're having the, uh, a memorial
for him at up ... Uptown Bill's on Saturday. I believe it's at 1:30. So if you can
make that, it would be great. Uh, in that tone too, we need to appoint two riders
to the Paratransit Advisory committee. This came out before Terry passed away,
but uh, I need ... you can go onto the web site and ... the SEATS' web site, and fill
out your applications, but we really need two riders to fill in for the Advisory
Committee.
Hayek: Thank you. Let's keep moving this way.
Payne: Nothing for me.
Dobyns: No! (laughter) (several talking)
Throgmorton: I'll mention one thing. I ... I'd just like to note that Jeff Biggers and others
associated with the group Ecopilus are conducting another public event this
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coming Saturday and this one's going to focus on the local food economy. It's
going to take place in Room A of the Public Library, starting at 10:00 A.M. So,
should be a pretty good event!
Mims: I'll just piggyback on that real quickly. Today on NPR they were talking a lot
about, uh, the drought in Col ... in California, and how that is impacting
agriculture out there and I think that whole issue of ..growing more of our food
locally is going to be ... we should be doing it anyways, but it's going to become
an absolute necessity, um, as we go forward. Um, I would just like to say
congratulations to the University of Iowa wrestling team finishing second in the
nation. Uh, I know that's not always high enough for them, but uh, had the
pleasure of being down in St. Louis with, uh, my husband and daughters this
weekend, this past week, to, uh, watch that event, and ... I'll just kind of segue
back into one other thing that we're talking about earlier, how many people did
not stay in downtown St. Louis, but were staying out by the Airport and either
driving in or taking the train in to the arena, uh, because the hotel rooms out there
were a lot cheaper. So, you know, location, location, location is not always going
to fill up your hotel rooms. So ... um ... and hopefully we will be back to warm
weather again one of these days soon! (several talking)
Hayek: Yeah, we're due for some spring!
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ITEM 18. REPORT ON ITEMS FROM CITY STAFF
a) City Manager
Hayek: Tom?
Markus: Nothing.
Dilkes: Well actually Tom forgot to mention one of Jeff's accomplishments. Jeff
Davidson's accomplishments. And that is having survived three ... he and I have
survived three City Managers together (laughter) and I think maybe he even had
one before that (laughter) lot of credit for that!
Hayek: Survived is a very (laughter) term!
Markus: Piece of cake! (laughter)
Hayek: Yeah, sure!
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