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HomeMy WebLinkAbout2015-06-16 TranscriptionJune 16, 2015 Iowa City City Council Work Session Page 1 Council Present: Botchway, Dickens, Hayek, Mims, Payne, Throgmorton Council Absent: Dobyns Staff Present: Markus, Fruin, Morgan, Coleman, Dilkes, Karr, Grier, O'Brien, Hennes, Boothroy, Bockenstedt, Hightshoe, Yapp, Andrew, Knoche Others Present: Neal (UISG) Questions from Council re: Agenda Items: Hayek/ Okay. Let's get started with our work session for June 16, 2015. I'd like to welcome everyone to Harvat Hall. First bullet point is questions regarding agenda items. ITEM 3d(6) 2015 CLEARING AND GRUBBING - RESOLUTION ACCEPTING THE WORK FOR THE 2015 CLEARING AND GRUBBING PROJECT. Throgmorton/ I have a very important question about Item 3d(6), clearing and grubbing. What... is grubbing? (laughter) Markus/ Grubbing, taking out vegetation. Throgmorton/ Oh I've ... I've done that! Markus/ Yeah, of course you have! (several talking and laughing) You didn't know you were a professional grubber! (laughter) Throgmorton/ Now I know! (laughter) All right! Maybe more to the point, 3d(2), the, uh, community I.D. Hayek/ Uh huh. ITEM 3d(2) COMMUNITY IDENTIFICATION CARD - RESOLUTION SUPPORTING THE IMPLEMENTATION BY JOHNSON COUNTY OF A COMMUNITY IDENTIFICATION CARD PROGRAM Throgmorton/ Yeah, I'm really thrilled about this, uh, thanks to the staff, uh, I don't ... I don't know who all's worked on it, but .... uh... I'm happy to see it and ... happy to see the $6,000's being, A ... uh, directed toward implementation of it. So, bravo to everybody! ITEM 13. IOWA CITY / HARRISON ST. AGREEMENTS - RESOLUTION DIRECTING EXECUTION OF A MASTER LEASE PURCHASE AGREEMENT AND AGREEMENT REGARDING ASSIGNMENT AND ASSUMPTION OF LEASE PURCHASE AGREEMENT; AND AUTHORIZING THE EXECUTION, This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 2 PERFORMANCE AND DELIVERY OF A PLEDGE AND SECURITY AGREEMENT, ASSIGNMENT AND DELEGATION AGREEMENT, TRUST AGREEMENT, PROJECT WARRANTIES AGREEMENT AND REVISED EXHIBIT B TO THE MASTER LEASE PURCHASE AGREEMENT, SUBJECT TO CERTAIN CONDITIONS PRECEDENT Hayek/ Could we get just a brief walk through on the ... on Item 13, which is the ... the master lease... purchase agreement and the ... the Harrison Street stuff? Markus/ Yes we can. Eleanor'll be glad to brief you. (laughter) Dilkes/ Um ... well you've actually, um, already approved the lease purchase agreement. You did that a few months ago and you also approved the development agreement. So what's on the agenda tonight is ... um ... really the resolution that authorizes the signing of that, a lease purchase agreement, as well as all the documents that are necessary to put the permanent financing in place with Capital One Public Financing. Um, essentially it's a lease purchase agreement where, um ... we enter into a lease with the builder, A & M Development, that's going to be building the, um, ramp, as well as the townhomes that frame the ramp. Um, and the ... and (clears throat) and um ... at the, once we have accepted the, uh, completion of the parking ramp, we'll ... there will be an assignment from A & M to Capital One. Um ... and all that financing Dennis can answer any questions you have about that. Um ... and then after... actually the townhomes are going to go on ... after the parking ramp is completed, and the only change in the development agreement is to just push everything forward a year, um, because of the (noises, difficult to hear; others talking) schedule. Hayek/ ... yeah. Markus/ Yeah, Harrison is ... is going to take a little bit longer to finish. I ... might be helpful to hear from Dennis about the competitive process that was used, cause initially it was not headed that way, but uh, that's (mumbled) way it turned out, so... Hayek/ Sure. Bockenstedt/ Yeah, we worked with, uh (mumbled) Ahlers, Cooney, and Public Financial Management, uh, to put together a ... an RFP for the ... the financing, and it was a fairly complicated transaction and ... and a fairly unusual one, and so we sent that out to 10 different, uh, banks, underwriters, and uh... and, uh, other financiers and we received five proposals back, uh, which we reviewed. Uh, Eleanor, uh, Mark Kouri, uh, John Vermeister, we went through those and, uh, Capital One was really the only one that submitted a 20 -year, uh, fixed lease or fixed-rate lease. Um, and so we selected them as the top, uh, submitter. And so tonight is the, uh, lease purchase agreement, and actually we are leasing it from A & M, and then as Eleanor stated, that lease will then be assigned to Capital One, who's actually, uh, providing the financing and we'll make the ... the payments to. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 3 Markus/ What you should feel good about is that it was a competitive process. You know, in any given situation, in another municipality, it might have been a negotiated type sale, but we used the competitive process, and I think ... that makes it much more transparent and obviously the competition is the right way to go. Hayek/ That was one of the things I wanted to draw out, with our conversation. Throgmorton/ So, I ... I can't pretend to understand the whole document and I wouldn't ... wouldn't even try, uh, but ... so just wanted to ask a couple or three... questions that came to my mind, you know, being a naive guy about this. Can you explain how a tax exempt lease works? Give me a sense of that? Bockenstedt/ Um ... well it's tax exempt to the, uh, the bank, or the company that's holding the debt. Those interests, uh, income that they receive, the payments that we make to them, the interest payments, will be tax exempt for income tax purposes. So it has similar characteristics as to our tax exempt bonds. Um, in a lot of ways it acts as tax exempt bonds in that we are making, uh, principle and interest payments to `em but ... uh, in this instance, rather than being principle and interest payments on a bond, they're principle and interest payments on a lease, which is just a ... a different legal instrument, uh, than a bond. Throgmorton/ Thanks. And what's a LIBOR swap rate? Bockenstedt/ LIBOR is the London International Bank ... exchange rate. It's a ... it's a rate that is derived from a, kind of an average of bank rates from... Markus/ Index! Bockenstedt/ An ... it's an index, and so when we close on the facility... they will use that I0 -year LIBOR index and it's a formula that's like two-thirds of that rate, plus 1 1/2%, and what that calculates to, that'll be the rate of the lease. Right now it...it calculates to 3.96%. Throgmorton/ One ... one last question. When I was going through the... execution version of the master leach ... lease purchase agreement, I noticed that certain elements seemed to be missing, like ... like, for example, Exhibit F, Preliminary Plans. There wasn't anything there so I... Dilkes/ Yeah, those are on file now. Throgmorton/ Ah... Dilkes/ They're... they're the preliminary plans that have been approved by, um ... Chris O'Brien and his staff. Throgmorton/ Okay! This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 4 Hayek/ Thanks. Dilkes/ And just ... just a reminder, the reason we ... that we're doing this is because the property is owned by the developer, um, and the developer's going to be doing the construction, and it's the only way under the Iowa law that we can do it and not have to publicly bid it because of the amount of money that's being put in. Hayek/ Thanks, Dennis. Other agenda questions? ITEM 3F(8) DAVID ROBERTSON: WETHERBY PARK Throgmorton/ Um, Matt, I think I'd like to express a little bit of concern about one item, and it's in the late handout. We discussed it at our ... I don't know if it was the last meeting... we've had so many meetings. I don't know ... I don't know when we discussed it, but it's the June 13th email from David Robertson about the ... the lack of staff response to his earlier ... or Council response, about his earlier email concerning Wetherby Park. So we talked about that some last time, but what, uh, concerns me is ... urn ... and is ... is that it seems to me that if...if a neighbor is complaining, that it's important to connect with other neighbors to ... to make sure that ... that, sort of the full range of people who live nearby think there's a problem, and ... and that something needs to be done about the problem... rather than, apparently ... I don't know, one person complaining and ... and us responding. So... Markus/ Well there ... there were other people involved. Um, there was a late handout, I don't know if...you saw it. It's ... it was handed out (both talking) Throgmorton/ Yeah, Sam's response (both talking) Markus/ Yeah, and then Mr. Robertson, I just saw the email response from him and I think he's pretty satisfied. He still kind of argues his points, but ... I think it's pretty clear from the City's response that we're not encouraging the fencing of our parks and ... so they took a, I think, a much more ... the Police Department took a very proactive approach to try and engaging the young people, and their parents, and um ... kind of bringing that responsibility home to the parents. There's a few things that Mr. Robertson suggests that I think, as I was saying to Geoff, that maybe in the ... the heat of the moment that's the way you would react, but when you stop and kind of pace yourself through those kinds of issues, there's maybe a softer approach, and I think you'd be pleased that the Police Department took that approach, I think, in ... I think tried to finesse the solution, which takes more time. Um, but I think Eleanor's, uh, department commented on the legality of the curfew ordinance and that that's not necessarily used, um... Dilkes/ Loitering! Markus/ ....loitering ordinance in a ... in a park. We kind of hope people do loiter in a park (laughter) I think! Um ... so ... and then the fence issue and ... and, you know, I think ... I think there was a reaction, you know. At times I think when people confront groups of This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 5 people or have a confrontation from a group of people, you know, they tend to get pushed into a corner and ... the way they feel about things and so ... (both talking) I think the Police ... the Police has really responded, um ... most appropriately and most sensitively to all the concerned parties. So ... and I think he ... you haven't seen his response to Sam's latest, but I think there's an indication that he appreciates... this response as well. And you'll get that. Payne/ And I did talk to him ... in person, yesterday I think. So I ... I'm sure he appreciates Sam's response. Markus/ And it, you know, a lot of times what happens in these correspondence, you know, it... the time kind of crosses over, you know, from agenda preparation to (mumbled) you know, the delivery of the agenda, and so ... you know, you'll hear a response like that and of course my immediate reaction is we gotta get a response out so the Council knows that we are working on this, but when you involve multiple departments in trying to respond respectfully to the specific issues they raise, that, you know, that takes a little more collaboration and coordination amongst the staff and so they got together and responded, I think, as timely as they should of, and Sam had already responded once, as you know. Throgmorton/ Right. Markus/ So... Info Packets: Hayek/ Other agenda questions? Okay. Info Packets. June 4th Payne/ I have a question ... on ... page 13 that was in the budget. It says ... cap on allowable growth. What does that mean? What is the cap on allowable growth? Bockenstedt/ Well I ... I don't have page 13 in front of me. I'm guessing you're talking about the change in State property tax law? Markus/ Yes, that's (both talking) Hayek/ 4 to 3. Bockenstedt/ Yeah, that was a ... a statewide, uh, the State looks at all of the, uh, residential property as a group, prop ... property combined together, and the most that that group of property, the residential property can grow... combined total is ... was reduced from 3, or 4 to 3% a year. Markus/ Is that statewide? Bockenstedt/ Statewide, yeah. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 6 Markus/ So it doesn't just mean the cap effects on our community. It's across the state and then that ... that determines how much you can grow your base in a particular year. Bockenstedt/ And it's ... uh, into the formula of...of the rollback percentage, so ... they imply that cap and growth, and the ... and the rollback fluctuates based on how that cap is applied. Hayek/ And the ... and the ag ... valuation (both talking) Bockenstedt/ ...it's tied in. I don't know if anybody really knows what the (laughs) formula is, but ... um ... but they put all those things in and it ... and it kicks out the rollback percentage and that is applied to our residential property, uh, to figure the taxability of it. Markus/ So Dennis and I checked the commodities market every morning and find out what's going on with beans and ... and corn and ... and we try to extrapolate that as to what that's doing to the price per acre of farm land and the different grades of farm land, and then kind of roll that back down (laughter) (mumbled) Throgmorton/ So why's this feel a little bit like hide the bean, you know? Can't really (both talking) Markus/ I can tell you, if this guy can't figure it out, it's probably too complicated! Throgmorton/ Yeah! Dickens/ And what was the purpose of doing this? Markus/ What's the purpose in doing this (laughter) Bockenstedt/ I believe (several talking) Markus/ ...might be the most profound question of the evening! Bockenstedt/ (several talking and laughing) I believe it occurred in the late 70s when the ... the price and the ... the, uh ... agricultural land was fluctuating greatly and it was an attempt to stabilize the property values and the taxes. But... it was done by a committee, so that should tell you (laughter) Payne/ So...if...if we grew... enough... to have... Markus/ Well if Iowa City grew, um, it doesn't mean that you're capped, um ... necessarily in Iowa City, if the balance of the State did not exceed that limit, which is what, 3%? Bockenstedt/ Right. Markus/ So ... we could (both talking) This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 7 Payne/ (both talking) State as a whole (both talking) it's not each entity as a whole... Markus/ ...yeah, cause it's averaged out over the entire state. So you could grow (both talking) Bockenstedt/ ... all the, yeah. Payne/ So we're okay if somebody else decreases in value, as long as we increase in value. Markus/ And in ... and quite frankly in a state like Iowa, I think that happens! So ... you know, the ... the number used to, the average number used to be ... what changed was the percent, not the application of the percent. It was always I think across the state, so ... it went from ... was it 4? Mims/ Yeah. Bockenstedt/ Yeah, it went from (both talking) Mims/ ...4 to 3. Payne/ I'm still just trying to comprehend. Okay. Bockenstedt/ They ... they (several talking) everybody's valuation and they throw it into one big pot, so everybody (both talking) Payne/ ...apply this formula and out comes the result. Bockenstedt/ Yeah, so they take all the industrial property, all the commercial, all the ag, all the residential, and they group it all together and look at how much it grew from the year before. And the residential piece is limited on how much it grew from the year before as a group for everybody. With ... within that (both talking) Payne/ How do they cap it though? I don't understand if it... if it grew and it already came out, how do they cap it? Bockenstedt/ By the rollback. Payne/ Okay, so the rollback is how they are capping it. Okay! Bockenstedt/ So if it grew too much, then rollback drops. Payne/ Okay! Bockenstedt/ If it didn't grow enough, then the rollback goes up. Payne/ Okay! Got it! This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 8 Hayek/ Have a question about... Markus/ And then there's equalization! (laughter and several talking) Payne/ It's a convoluted (laughter) but I get it, I think! As much ... as elementary as it is! Hayek/ Uh, in IN there's an interesting article on ... on the nitrate issues Des Moines is facing and whatnot. Do ... do we have any sim ... anything comparable to this, with our treatment? Markus/ You know that's... that's, uh, is, uh, Ron, you're shaking your head. You know I know the Cedar Rapids operation doesn't have the nitrate, phosphorus issue in their sanitary sewer plant. What's ours... Knoche/ For ... for our water plant we don't have the issue. We..we have the different sources at the plant so we have our collector wells. We have Jordan wells. We have, you know, so we have the ability to (mumbled) and... and get... get, kind of work around the nitrate issue. Um, you know, we've seen it spike recently, you know, with the rain events come, it'll spike, but uh, we ... we're not to the point where ... where we have the issues that Des Moines has. Hayek/ So we ... when ... when that spikes in the river we ... we increase our intake from other sources? Knoche/ Right, we ... (both talking) Exactly! We blend it to ... to make sure we don't have the issue. Markus/ Which just means that....a heavier concentration of nitrates is working its way to the Mississippi. Hayek/ Right. Markus/ Down to the dead zone of the Gulf of Mexico. Hayek /Is there ... is there a cost differential? Is it ... is it less expensive to draw water from these different sources that are farther from ... nitrate? Knoche/ I ... I ... it's, yeah (both talking) it's just a matter of how they blend it, so it's not increasing our costs, right. (several talking) Yeah, it ... we don't ... we don't have a whole separate system in our plant to ... to fight the nitrate issues like Des Moines has ... in their system. Throgmorton/ Which ... points to the, uh... um ... the quality of design back 20 or whatever years ago when the water plant was originally designed. To do that kind of blending. Markus/ Well it also depends on the tributary area. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 9 Knoche/ Uh huh. Markus/ You know, when you look at the Des Moines situation, the tributary area of Des Moines probably has a higher concentration of farms that have provided, um, drainage systems in the farm ground and so their, you know, their ... the pipes are now running to receiving waters and if those receiving waters are where they're getting their potable water from, t hen you ... you're sucking in more of the ... the nitrate, phosphate problem into your plant, and, you know, if...if our tributary areas don't have that same kind of condition, which apparently Cedar Rapids doesn't, cause they don't have near the nitrate issue in their plant at all. I think the interesting part of that debate is the whole issue between point and non -point sources. And so if you read the ... the articles or the litigation itself, is the lawsuit is trying to make these, um, what do they call it ... tiling. Mims/ Tiles. Markus/ You know when you tile a farm, the tiles all go to a collective area, to a pipe, and then that end of the pipe ends up in the receiving water. So the hook that I think they're trying to go after legally is the difference between point and non -point. Farms were traditionally were non -point, but these tiling systems have created a ... an outlet pipe. So that outlet pipe then becomes in the legal argument a point source and EPA controls point sources. Right? They do the point that comes out of the treatment plant here in Iowa City. So ... it's an interesting argument and I think it ... I think the other part of it is, you know, in the state of Iowa it tends to be an argument of voluntary, urn ... compliance on farm ground versus mandatory compliance. And having dealt with this pretty much throughout my career, I think municipal entities get a bit frustrated because the EPA comes down on the municipal entity and... doesn't seem to go at the farm issue, and we all know that nitrates and phosphorous are being used on farm applications across the country, and where you have a strong farm interest, like the state of Iowa, it gets to be a very difficult political... conversation. So... Hayek/ Other items from the June ... thank you, uh, Ron. Uh, other items from the June 4t' Info Packet? Mims/ It was just interested to see the ... urn ... report on the juvenile justice diversion programs and ... you know, their plans going forward. That's good initial information and hopefully a lot of progress still in front of us. Hayek/ June 11 a`? Dickens/ Just like to thank Tom for the ... TIF graphs that you put out. I thought those were very informative and ... hopefully the public sees the ... the big differences that are shown in that graph. Markus/ In the next Info Packet you're going to get the presentation that was made at, uh, University Heights by Peter Fischer. We're going to put his, uh, PowerPoint in there, as This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 10 well, and there's a lot of good information in there and ... and I think it just kind of keeps in play this whole TIF issue and the discussion, and ... um, the Mayor and I are attempting to arrange some meetings with State officials to have discussions about, um, TIF as well, and ... and maybe some further modifications of the TIF laws going forward. Botchway/ What about the argument that we have other funding sources that other municipalities within the Johnson County area don't have, and so that's why you see, urn ... you know, from a scale standpoint, such a high, you know, urn ... high amount of dollars in TIF being used in other places. Specifically Coralville. Markus/ Well I hear the argument about CDBG ... um, and ... and um, that we have, as an entitlement community, we have, um, CDBG funds and that's been thrown at us, but look at the purposes for which CDBG money is restricted to and then look at the uses of TIF, and ... you can't use the money for the same purposes. Um, CDBG is ... is restricted to ... to, uh, very limited uses and ... and normally the Census Tract has to meet, uh, income qualifications, uh, for public improvements like, you know, urn ... ADA improvements on sidewalks or, you know, streetscape types things. It has to be in a ... in an affordable neighborhood. So ... to ... to make that argument, it's kind of, um, I think (both talking) Mims/ Disingenuous? Markus/ ...I think it's grasping at arguments to make, because they're not the same type of issue. Urn ... and ... and you know, quite frankly, I think if you ... if you just do the bond, um, rating analysis between our jurisdictions, one of the things across the state that you've heard criticism from Moody's on is cities getting into private ventures. That seems to be the recurring theme. Urn... there... there's... there's certainly, you know, there's certainly connections between the use of...of, uh, TIF funding for uses otherwise. The ... the other point I'd make to you is, you know, some of these communities have over their ... half their town. I think one of `ems close to ... most of their town being TIF'd, and what that's doing is draining all the resources, possible resources, from the other taxing jurisdictions for what would typically be taxed just to the local jurisdiction for those purposes. So in other words, you're subsidizing those uses in other jurisdictions. Hayek/ And I would add to that, urn ... you know, you just look at the scale, the ... the sheer difference in terms of...actual captured TIF across communities in our ... in our, uh, county, um ... and then you adjust for population. Um, you just see how huge the gulf is. Markus/ (several talking) Our per capita was like 200 -some dollars, I think, and it goes into the thousands of dollars (several talking) I mean... Throgmorton/ So (several talking) I... want to say I agree. I think these are important graphics and they present quite startling information, uh, all four of `em do, but for me especially the last one! But ... but I do want to ask a question to make sure I fully understand the data that's being used. So ... am ... am I right in understanding that the graphs do not This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page I 1 include the 30 to 40 or so million dollars in TIFs that we have recently approved for pro ... the whole series of projects. Markus/ Yeah, I don't think they have some of the ... the very recent projects (both talking) Throgmorton/ ...cause it's not in the (both talking) Markus/ ...no, it just wasn't there yet. Yeah. Throgmorton/ ...I thought so. Payne/ But it also ... is not on 2014's valuation, correct? It's on a prior year valuation. So.... Throgmorton/ Right, and ... and some of these projects hadn't been built, so they don't have any assessed value. But ... and then I was also wondering if we have any kind of estimate of...of the, uh... the, either the actual or the expected assessed valuation for the TIF'd, the projects that we have approved TIFs for since early 2012. Markus/ Well we had estimates at the time... Throgmorton/ Yeah, and (both talking) Markus/ ...of what they would generate and so we can go back and look at what those values are at this particular time, and do, um, throughout the course of a TIF project. So... Throgmorton/ I was just thinking in terms of, uh, Geoff, you're going to be making this talk, or did you just make it on a ... I'm trying to remember the ... the (mumbled) Fruin/ Thursday morning to Kiwanis, yeah. Throgmorton/ Yeah, I was just thinking that ... that, uh, these, you'll probably use these graphics, I don't ... so I was just thinking it would be ... valuable to have in mind that we have been approving several TIFs and they're much smaller than what Coralville's done, but still they're there and ... and people have drawn attention to them, and they have assessed valuations or ... uh, expected assessed valuations. Markus/ Well, not only that. They have minimum (both talking) Mims/ Minimum... Markus/ ...assessment agreements would tie -bar the ... the developer to the payment of those, that is part of the payment scheme to pay those things off. Scheme's probably not the right word to use (laughter) um ... schedule! (laughter) To pay those things offl Dilkes/ For upfront money. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 12 Throgmorton/ So I'm just thinking about, you know, if you... especially the ... the fourth graphic, which is the, um ... uh... trends since 2006 and it shows that huge growth in Coralville's, and it shows us having... going up a little bit and then plummeting (both talking) Markus/ Yeah, cause that was a pay -down. Throgmorton/ Yeah, so I'm just thinking, okay, how bout if the last ... if our TIF'd projects, the projects that we've TIF'd since early 2012 were included on that graphic... Markus/ What it would look like... Throgmorton/ ...what would it look like. Markus/ Yeah. We ... we'll get to that! You know, as time goes on. We'll add those. Um, we have some other projects that are, quite frankly, were in discussions with right now too, and the other thing I think that ... I think kind of gets lost ... in the Chauncey discussion is Chauncey started three and a half years ago, and so now, you know, I counter, uh, point to the Chauncey project is the Court/Linn project, and in the Court/Linn project, of course, they're paying us. There's no TIF involved. They're adding a hotel. They're adding, uh, some office space. Keep your fingers crossed! Um, they're adding some retail. They're putting the parking in. They're giving us, uh, providing 30...I get the numbers wrong. 36? Dilkes/ It's 10% of whatever ... (mumbled) approximate number is 30...320 units, so 32 (both talking) Markus/ 32 units of affordable housing, and a million dollars of funding for ... um, initiating a ... additional affordable housing in the area. So I ... I added `em up and I think we're at like 46 -plus affordable housing units ... that will be coming about, um, just because of that, and you'll be getting a graph on that in the next couple of weeks as well. So ... you know, the whole discussion at this table ... led to staff to start pushing that issue, and it's shown tangible results in a really short time, and ... you know, the ... the point I would make is you ... you can have your positions on Chauncey one way or the other — that's fine! But I think you have to ... life is contextual and you have to kind of look at what we're doing in total context with these. How many affordable units have we added... in this community prior to the last six months of reviewing these projects? I suspect not many. Um, so ... I think you're moving it in the right direction and I think as additional projects come forward you're going to see ... you're going to see more of `em! So, and they're dispersed! They're not readily identifiable. So... Botchway/ Going back to the TIF, um, (mumbled) I just want to make sure that when we are making this argument that we are thinking about the opposing arguments that might come up and so I don't know ... you said that ... you said that we're having that a part of the next packet, but I just know that that was a ... a comment that was made from, um, one of the Council Members. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 13 Markus/ What was that? Botchway/ About the CDBG funds or other funds that are available to the cities ... to ... to our city, that aren't available to other cities, and so I just don't want that to be (both talking) Markus/ Well we're an entitlement city (both talking) Hayek/ Entitlement, that's... that's (several talking) Markus/ And that's the point they're (several talking) but ... but the other thing is, and I think the way ... where's our finance... where's Tracy? Um, we're ... the other cities are eligible for CDBG funding back through the State, as well. Botchway/ No I'm not disagreeing with what you're saying. I'm just saying that when we are talking about this ... it's going to be, you know, well we're not TIFing as much as everybody else. Then the next argument's going to be, well, you get more funds, and just making sure that we have an answer to (both talking) Markus/ We ... we have (several talking) we have the answer (both talking) Dilkes/ The easy... Kingsley, the really easy answer to that is ... number one, the ... the amount of funds is completely different and secondly, if they were using their TIF funding to provide CDBG benefits, there might be an argument there but they're not. Botchway/ Right. (several talking) Dilkes/ We don't have... Hightshoe/ ...CDBG funds annually. That's only $600,000 — 362 in Home and everybody, everyone in the state, if you're not entitlement city, we happen to be an entitlement city so we get an automatic allocation, but smaller cities than Iowa City can apply directly to the State and have the same access to CDBG funds like we do. It's just a competitive application to the State. Dilkes/ That might be an argument in Dubuque, for instance, where they have, you know, gambling revenue, and ... all sorts of other revenue that we don't have, but that's not the case with us and Coralville, for instance. Markus/ And ... and the other point I would make is ... I ... I don't know who else here or far away in this state is going after affordable housing as aggressively as we are with these projects. And it's ... starting to show real results in terms of additional affordable housing units. I remember the comment at the last meeting that, well you went from workforce housing of this many units down to affordable housing. Well I can tell you workforce housing was really hard to identify what it actually was. But we've set pretty hard limits on affordable housing, and they probably benefit the most, um ... uh, needful, uh, families in the community at the limits that we've set them at. So ... you know, you're... you're This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 14 gonna ... you're gonna hear ... when we go after TIF amendments, I can tell you the ... the people that push back hardest are the other cities. Botchway/ Right. Markus/ And I don't mean just locally. I mean across the state! TIF has been used to such an extent... that... that it's, you know, it's kind of breached, I think, any of the original intent of what TIF was to be used for, but once you go down that path and you've opened that door, it's the State that has to ... to kind of close the door on some of that stuff again, and hopefully we can get to some reasonable amendments at the State level! Hayek/ Okay let's keep moving here. Um, anything else on the June 11th Info Packet? There's the KXIC... Karr/ And the only reason that's on there is your next meeting isn't until the 27th of July and we still have an opening of July 22°d Hayek/ I can do that one if you want. Karr/ Matt ... okay! Mims/ And if anybody wants any of those dates ... that have my name on them... Throgmorton/ Yeah, you have a few there! Mims/ ...you're welcome to let Marian and I know. I'll be glad to give `em up, but we were just concerned that there was not ... the volunteers weren't coming forward and so we didn't have coverage. So, we don't need to do it right now, but... Botchway/ I'll email ya, Susan! Throgmorton/ Yeah (several talking) Mims/ Yeah, just email me and ... and we'll coordinate with Marian so she can let Jay know, but ... I'll cover whatever anybody else doesn't. I've got the flexibility. So ... not trying to hog `em. Just trying to make sure we've got somebody there! Botchway/ Well especially if we're able to pre -record! Mims/ Yeah! And ... and I might actually get a hold of you, Tom and Geoff, too to ... with some of those to see about maybe some City staff going, cause I think Jay's interested maybe and ... you know, getting some City staff on some of `em (several responding) Throgmorton/ I ... I can do July 29th or August (mumbled) just to be on the record there. Mims/ Talk about it later! Okay! This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 15 Hayek/ Anything else on the Info Packet? Okay! Uh, Council time? Council Time: Throgmorton/ I want to mention that Cecil Balmon ... Balmond, uh, is going to be here on Friday morning to discuss his vision for the ped mall art installation. Uh, I don't know, Geoff, maybe you want to say more about that, but uh, he'll be here on Friday. Fruin/ Yeah, you'll ... you'll get an update in your Info Packet this week. The... the meeting on Friday is with, um, the staff project team, uh, the early, uh, assembling of a fundraising committee for the art piece, and then, um, the RFQ committee that ended up, urn ... making a recommendation to select, uh, Dr. Balmond as the artist. So this is the signature ped mall, uh, art piece. He's going to be, uh, unveiling some of those initial concepts to those groups on ... Friday, and then on July 1St we are planning a public unveil, um ... somewhere downtown, and that information will come out next week. Payne/ I just want to make a comment that on July 27th, that's our next Council meeting, I'm going to be on vacation. Throgmorton/ You're not gonna tell us where you're going? (laughs) Karr/ Did you want to participate electronically or not? Payne/ I probab... I will not be able to! I mean, I will truly be (several talking and laughing) Hayek/ It's ... it's hard to call in from a Rocky's game, cause you got your crowds and bats and (laughter) Right? Payne/ Right! Mims/ There ya go! Karr/ Mr. Mayor, did you want to talk about the appointments? Council Appointments: Hayek/ Oh, gosh, yeah! Isn't that... Throgmorton/ (mumbled) Karr/ We have one applicant, but you have, um (several talking) Hayek/ Anyway, yes we do! Um ... and, yeah, Keith Ruff has applied for three spots, I think. This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 16 Karr/ And staff is recommending rea... not readvertising, but... advertising again for the Board of Appeals, which is one of his... Mims/ I would agree! (several responding) Hayek/ So... Mims/ I thought the Airport one was maybe... Hayek/ So he applied for two of the Airport openings and one is a longer term than the other. Karr/ That's correct! Mims/ ... starting with the shorter one. Hayek/ Yeah, I mean he kind of...he just wanted to be on any of them. (several talking) Karr/ He applied ... on that given time he applied for each one ... he could... Mims/ That was open. Okay! Karr/ ...and, urn ... Historic Preservation is the distinct representative of district so... Hayek/ He's not eligible for that, but ... well, should we do the, uh, 19b, the vacancy that goes through the end of next year? And if he likes it, he can reapply. Mims/ Sure. (several talking) Hayek/ And if not ... try something else! Karr/ Thank you (several talking) Hayek/ Thanks, Marian! Anything else on, um, Council time? Meeting schedule. It'll be good not to see you guys for a little while! (laughter) Meeting Schedule: Payne/ Six weeks! Mims/ Staff probably thinks so too! (laughter) Hayek/ Yeah! Mims/ Staff's probably going, Yahoo! Pending Work Session Topics: This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 17 Hayek/ Uh, pending work session topics? Upcoming events. Upcoming Events / Council Invitations: Throgmorton/ Oh, I want to mention that on June 30th, Chuck Marohn of a ... of...of an organization called Strong Towns will be speaking from 6:30 to 8:00 P.M. in Room A at the Library. And he's been, uh, pretty... effective spokesperson for certain kinds of development and roadway reconfigurations that would... in his view, significantly reduce the cost of public services. I don't want to elaborate because it's ... it's up for him, up to him to actually talk about it. But anyhow, I just wanted you to know that this event's going to be taking place then. I won't be able to be there (both talking) Mims/ Yeah, I can't either. I'm out of town. I saw that! Botchway/ I'm going to try to go! That might be interesting. Just remind me after the meeting. Dickens/ June 30th? Throgmorton/ June 30t', uh, yeah, 6:30 to 8:00 P.M., Room A. Botchway/ Terry, you want to do, uh, you take me to dinner and then we go to ... go afterwards? (laughter) Mims/ What a ... what a scrounger? (laughter) Dickens/ No dessert though! (laughter) Botchway/ I understand! (laughs) Um ... (several talking) Mims/ I'm doing a ... kind of a welcome thing for the Iowa, the State of Iowa, I guess, Garden Club on Friday morning, and then doing the, uh, proclamation for ... the PRIDE parade or ... thing on Saturday. So... Payne/ Is Lucky's having a ribbon cutting ceremony? Markus/ They will! I think that they've, um, met the same... challenges here in Iowa City that other employers have and I ... I think they're having some troubles getting the employment, but yeah, I think they intend to do a ... a celebration and opening and I'm certain you'll all be invited. Fruin/ I think it's a `bacon' cutting, not ribbon cutting! Payne/ You're right, I did see that! (laughter and several talking) This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 18 Botchway/ I don't know where I want to be political but ... I like bacon, so .... (several talking) I don't know how (several talking) Markus/ Sometimes they delay `em, you know, trying to get everything coordinated, so... Botchway/ Speaking of employment, the new HyVee just opened up on North Dodge, which is huge, obviously cause I work next door and ... Terry's there, so I know you're pretty excited, but they had a whole, you know, it was just kind of walking in, they had all their samplers and everything and so I was tasting the products! Dickens/ ...at 5:30 this morning (several talking) Mims/ That's why I didn't go today. I figured I'd give `em two or three days (several talking and laughing) Botchway/ And then on ... June, uh, 27'x', um, Juneteenth, I think Matt's going to mention the proclamation, um, later on, so I'll mention it again, and then the other thing that I may or may not mention depending on the type of mood I am at ... depending on what time we're here. I did make the prime -time roster again, so you're going to see me out there with the Botchway on the back, so ... just be ready! Matt, I expect you to be there, you know, with your pom-poms cheering me on! Dickens/ We'll check the box scores (laughter) Hayek/ Uh, I may be going to Washington on behalf of the City, uh... later, no, in July. The Milken Institute has Iowa City ranked as, um ... is this public? Yeah, it's public! (several talking and laughing) uh... Dickens/ It's a little late now! (laughter) Hayek/ Um... Markus/ The feds are paying for it! (several talking) Hayek/ ... as the number one small metro city for aging. Botchway/ Okay! Hayek/ Um ... in the country, and so ... there's a ... White House conference on that and (both talking) Dickens/ So we send our 45 -year-old Mayor! (laughter) Hayek/ I guess you'd be the obvious choice there gramps! (laughter and several talking) Mims/ Terry, maybe you and I should go! (laughter) This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015. June 16, 2015 Iowa City City Council Work Session Page 19 Hayek/ Anyway! Okay, uh ... anything else for the good of the order? Okay! Come back at 7:00. Thank you! This represents only a reasonably accurate transcription of the Iowa City City Council work session of June 16, 2015.