HomeMy WebLinkAbout2015-11-30 ResolutionI �`�.®4r, CITY OF IOWA CITY 2
MEMORANDUM
Date: November 23, 2015
To: Thomas M. Markus, City Manager
From: Tracy Hightshoe, Neighborhood Services Coordinator
Re: Hazard Mitigation Grant Program (HMGP) Administrative Plan
Introduction:
On September 1, 2015 the City Council approved Resolution No. 15-269 that authorized the
City Manager to apply for HMGP funding from the Iowa Homeland Security and Emergency
Management Department (HSEMD) to buy properties in the 100 -year flood plains of the Iowa
River and Ralston Creek. The City received a total grant award of $1,459,187. The federal
share can't exceed $1,094,390 (75% of allowable costs), the State share is $145,918 (10%) and
the local contribution is at least $218,879 (15%) through local non-federal cash and/or in kind
sources for actual allowable projects costs.
History/Background:
HSEMD requires an Administrative Plan that outlines how the program will operate and what
process will be followed to acquire and demolish the identified properties in the grant
application. HSEMD provides a sample template that can be modified by award recipients. The
attached plan was reviewed by HSEMD and has met their requirements. The City Council must
approve the Administrative Plan before HSEMD will allow City staff to make purchase offers for
the properties identified in the City's application. The City anticipates that approximately six
homes will be purchased with HMGP funds.
Discussion of Solutions:
The City is committed to making this program work as quickly as possible so that the affected
property owners may promptly make their property decisions with as much information as is
available. The program is completely voluntary. The homes to be acquired will be demolished
and the lots dedicated to permanent green space.
Financial Impact:
The local match, at least $218,879, will come from in-kind salaries to administer the program
and the general fund.
Recommendation:
City staff recommends the approval of the attached HMGP Administrative Plan.
Iowa City Urbanized Area e
2015 Hazard Mitigation
Grant Program IZJ Feet
0 250 500
131 Taft Speedway
Rental
824 Normandy Drive
Rental
Prepared by: K. Ackerson
Date Prepared: 11/23/15
Iowa City Urbanized Area
2015 Hazard Mitigation Grant
Program
Creekside Neighborhood
712 6th Street
Rental
1804 F Street
Owner -occupied
N
250
500
Prepared by: K. Ackerson
Date Prepared: 11/23/15
FS
I
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 15-365
RESOLUTION APPROVING THE HAZARD MITIGATION GRANT PROGRAM (HMGP)
ADMINISTRATIVE PLAN FOR PROJECT DR4187.
WHEREAS, the City has identified properties in the floodplains of the Iowa River and
Ralston Creek that it wishes to purchase for flood mitigation purposes with Hazard
Mitigation Grant Program ("HMGP") funds;
WHEREAS, the City has been awarded HMGP funds to purchase said properties;
WHEREAS, Resolution No. 15-269 authorized the City Manager to sign the grant
agreement;
WHEREAS, City staff anticipates approximately six (6) owners will participate in this
voluntary buyout project; and
WHEREAS, as required by the HMGP grant agreement, the City must submit an
administrative plan to the State of Iowa that is administering the HMGP funds, which
explains how the program will be implemented and administered in Iowa City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IOWA, THAT:
The attached Hazard Mitigation Grant Program Administrative Plan for Project DR4187 is
approved.
Passed and approved this 30th day of November , 2015.
4
v
MAYOR
ATTEST:
CITY'CLERK City Attorney's Office
Resolution leo. 15-365
]Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
Mims the
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
ADMINISTRATIVE PLAN
Voluntary Property Acquisition Funded Under the Hazard
Mitigation Grant Program — DR4187
CITY OF IOWA CITY
ADOPTED BY IOWA CITY CITY COUNCIL
ON , 2015
Prepared by
Tracy Hightshoe
City of Iowa City
Neighborhood Services
Program Summary
On the 1St day of September, 2015, the City Council authorized the submission of a Hazard
Mitigation Grant Program application to the Iowa Homeland Security and Emergency
Management (HSEMD) for the purpose of obtaining federal/state financial assistance under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (PL93-288, as amended) and
the Code of Iowa, Chapter 29C.
This outline of procedures was created to explain how the program would operate. The City is
committed to making this program work as quickly as possible so that the affected property
owners may promptly make their property decisions with as much information as is available.
Voluntary Acquisition Program
Funding for this program requires that certain conditions are met in order for it to be on a
voluntary basis. Since this is a voluntary acquisition that is funded under the Hazard Mitigation
Program, the City is exempt from following the processes and notices to owners required for
acquisition by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (hereinafter referred to as URA). However, tenants will be provided assistance in
compliance with the URA since relocation is involuntary to them.
A voluntary acquisition program, in order to be exempt from the Uniform Act, must make offers
to purchase on a willing buyer/willing seller basis. That is, if the seller rejects the offer, the City
will not pursue acquisition of the property by using its eminent domain powers. In addition, the
City must not be purchasing the property for a known project. The City will use the same criteria
for purchases in all cases for this program.
All property owners must sign a voluntary participation statement submitted with the HMGP
application.
Purchase Price
The City is using FEMA's Property Acquisition and Relocation for Open Space (44 CFR, Part
80) guidance by utilizing the current fair market value of the property for this voluntary
acquisition program. Appraisals have been completed in accordance with the Uniform Standards
of Professional Appraisal Practice (USPAP) to determine the market value offered.
Property owners who are not a US National or qualified alien will be offered current fair market
value in accordance with Part 80. This value will be determined by a USPAP appraisal procured
and approved by the City and HSEMD.
2
Situations where large variations in appraised vs. assessed value are noted must be handled on a
case by case basis, as Sub -grantees, such as the City, must seek to prevent participation in the
project for the sole purpose of profit.
In a situation where a property owner is purchasing a property from the deed holder on contract,
the contract purchaser is considered to be the owner. If the contract purchaser abandons the
property and "defaults" on the contract after a flood event, ownership reverts to the deed holder
if the contract is forfeited. This is considered a change in ownership, and only current market
value may be offered. Similarly, in a foreclosure situation that took place after a flooding event,
the foreclosing bank may only be offered current market value.
Property owners are not under any obligation to sell their property to the City and, an appeal
process is in place to permit other information, including independent appraisals and updated
information from the assessor, to be submitted for the City's consideration. HSEMD must be
made aware of and approve the resolution to any appeal.
Definition of Owner -Occupant
The City will make its initial offers to purchase to owner -occupants of residential property. An
owner -occupant is defined as follows:
1. Holds title to the property with valid deed or valid real estate contract as of the date of
the appraisal contracted by the City.
2. Continues to hold title to the property to the date of the City's offer to purchase,
3. Will certify to having lived in the house as his/her/their primary* residence as of the
date of the appraisal contracted by the City.
* Primary is defined as the owner's principal place of residence. The owner must have resided at
the site at least six months plus one day out of the previous twelve months to be considered
primary. This will be verified in order of preference by 1) Homestead Exemption on the
property; 2) Income tax returns; or 3) Owner -signed certification stating that the property is their
primary residence.
For situations involving a contract purchaser and deed holder, the contract purchaser must be in a
position to have the deed transferred to the community upon closing. For this reason, the deed
holder's participation will be necessary at some point in the acquisition process.
Definition of Investor -Owner
If applicable, the City will make offers to purchase to investors -owners of the selected residential
property. An investor -owner is defined as follows:
1. Holds title to the property with valid deed or valid real estate contract that pre -dates
the appraisal contracted by the City,
2. Continues to hold title to the property to the date of the City's offer to purchase and
did not occupy the unit as of the date of the appraisal contracted by the City,
3. The investor -owner shall provide the City with additional information as may be
required by the City, including available information on any tenants.
What is to be Acquired
The City will acquire all land and improvements associated with the properties subject to this
program. For any commercial property acquired under this program, the City will complete an
environmental review (beginning with a Phase 1 Environmental Site Assessment) to certify that
the property is clean. This documentation must be provided to HSEMD and FEMA for approval
prior to the City's acquisition. This requirement will also apply to any residential property for
which suspicion of contamination from hazardous materials exists. The City currently has no
plans to purchase commercial properties with DR4187 funding.
Pre -Closing Activities
The City shall undertake a number of activities relating to each property prior to closing.
Briefly, these activities are:
1. Determine current market value as described above in "Purchase Price". Ensure
homeowner is either a National of the United States or qualified alien before offering
market value for the property, per 44 CFR Part 80.17.
2. Identify the owners who want their property to be considered for acquisition.
3. After the property owner indicates their interest in participating in the voluntary
acquisition program, the City will:
a. Prepare a schedule of property values for all properties in the project.
b. Order an abstract update and title opinion.
c. Work with FEMA through HSEMD as well as the Small Business Administration
(SBA) to obtain information on the proceeds received through those agencies'
programs for each property.
4. Complete all pre-closing items on the Pre -Acquisition / Demolition Checklist.
a. Obtain a "notice to proceed" with acquisition & demolition from HSEMD
b. These items must be complete prior to acquisition to ensure compliance with 44
CFR part 80.17(d) which states that incompatible facilities (improvements to
property) must be removed within 90 days of acquisition.
4
Timing of Offers
The City will make offers to purchase to willing and eligible property owners after completion of
the aforementioned pre-closing activities. It is anticipated that offers will be delivered to eligible
owners as quickly as possible.
Offer
The City will make its purchase offers in substantially the same form as used with other City
purchases of property, including appropriate terms as provided by or required by the
participating State and Federal agencies. Important policy elements of the offer are:
1. Purchase Price: The current USPAP appraised value of the real estate, or as defined
in "Purchase Price". Ensure homeowner is either a National of the United States or
qualified alien before offering market value for the property, per 44 CFR Part 80.17.
2. Deduction from Purchase Price: As applicable, insurance proceeds for real estate
damage, other public payments as determined by FEMA that represent a duplication
of payment for the real estate, property taxes due and owing, and other payments
required to clear special assessments, liens or judgments, will be paid prior to closing
or deducted from the Closing Disclosure Statement at the time of closing. The
purchase offer should not be reduced by these amounts; instead the Closing
Disclosure Statement "proceeds to the seller" column will be adjusted. The City will
receive individual determinations by FEMA and SBA of the deductions or credits on
FEMA and/or SBA funds already disbursed.
Closing and Possession: The City will not close and take possession of a property
until the house is uninhabited by the seller(s) and all personal property has been
removed from the property.
Offer Form
The City will provide a written purchase price at the time an offer to purchase is presented. An
example of the form that will be used is attached - Purchase Offer Form. Essential factors in the
form include:
Closing Date — A mutually agreed upon date by the City and the seller to close on the
property.
Clear Title — The seller must provide clear title to the City's satisfaction before the
closing can occur. The seller must convey by warranty deed. Title insurance in the form
of a title guaranty certificate must be obtained through Iowa Title Guaranty prior to
closing. Although this certificate is not required by Iowa law, it is required by the HMGP
Acquisition program.
Eligibility — The City must certify the property owner is either a National of the United
States or qualified alien before offering market value for the property.
Expiration Date — The City will allow two weeks from the date the offer is made for the
seller to decide whether to accept. The City will permit an extension of the expiration
date, if requested in writing by the owner, up to an additional two weeks. It is the
intention of the City to make as many offers as quickly as possible. Sellers will be
reminded that if they do not want to accept the offer, they must let the City know as soon
as possible.
Property Inspection — The seller will grant access to the City to inspect the flood
damaged property for personal property, hazardous materials, etc. that must be removed
prior to closing.
Removal of Debris — The seller agrees to remove, at their expense, prior to closing, all
vehicles and vehicle parts, firewood, construction material debris, and other personal
property located on the site.
Appeal of Offer Price
If, after the presentation of the offer, the seller believes the offer price is incorrect due to factual
errors and/or can present additional information directly relating to the fair market value, the
City will have an appeal process as described below:
The seller may appeal the estimate of fair market value after presentation of the City's
offer to purchase and before the expiration date of the offer to purchase. Within two
weeks of the City's offer to purchase, the seller shall present a written statement which
includes the reason for the appeal. Factual information including a USPAP certified
appraisal obtained at the seller's expense and any other data that support the reason for
the appeal to increase the offer price must be provided within 30 days of filing the written
appeal statement. HSEMD must be made aware of and approve the resolution to any
appeal that will cause a deviation from the approved scope of work or budget.
Within 30 days of filing the written appeal statement, the seller must provide the
appraisal report to the City for review. The seller may submit a written request to the
City for a 14 -day extension to allow the additional time necessary to secure the appraisal.
In the case that the seller exceeds the 30 -day period to obtain and submit the appraisal,
and does not provide a written request for an extension, the original offer to purchase
price will prevail.
If approved by Iowa City's review committee and HSEMD, the City will make a
second/amended offer equal to the USPAP certified appraisal obtained by the seller.
NOTES: 1) The federal program only allows the "as is" purchase price if purchased
within a year of the Sub -applicant's offer. If ownership of the property is transferred after
the as -of date of the original project appraisal, a new USPAP appraisal reflective of
current market value may be necessary to determine fair market value. Appeals to the
current market value may be considered, however any costs above the current market
value will be the responsibility of the community. The only exception may be if a
property has been improved since its purchase. HSEMD must be made aware of and
6
approve any appeals that will deviate from the approved scope of work or budget. 2) If
the City chooses to offer more than what the program funds will pay, the portion over the
allowed amount will be the responsibility of the City.
Process After Offer is Accepted
If the property owner accepts the City's offer, the following will be undertaken:
1. The seller will provide the City with the property abstract or, if necessary, the City
will obtain a new 40 -year abstract at the seller's expense.
2. The City will forward the abstract, or request for a new abstract, to an abstracting
company to be continued to the date of closing at the seller's expense.
3. The City will obtain a title opinion, transmit the title opinion to the property owner
and provide sample forms of affidavits and releases in order to clear any title
objection. Upon receipt of the necessary title -clearing documents from the seller, the
City will prepare a closing statement utilizing the Closing Disclosure Form, and set
up the closing. The City will obtain a title guaranty certificate through Iowa Title
Guaranty. The City will undertake the required property inspections and prepare
appropriate requisitions.
4. The transaction will not close, and the City will not take title to the subject property
until the buyer and seller have come to an agreement on the date of the closing.
Optimally the displaced property owner will locate a replacement property, obtain an
accepted offer on that property, and have prepared to move into the replacement
property so that closings on the displacement and replacement dwellings can be
concurrent. The intention for this process is that the City wishes to arrange to take
title to the properties when the owner is ready to vacate and take possession of their
chosen replacement property.
5. The warranty deed and deed restrictions will be recorded with the County Recorder.
Acquisition Staff
City staff will present the written offer in person, if requested by the owner, and be available to
answer questions. After the offer is made, the Notice of Relocation Eligibility will be presented
and the City will inspect the property.
If the offer is rejected and the property owner chooses not to sell the property, City staff will
close the property's file and `de -obligate' the funds reserved for the property's acquisition and
relocation payments.
Contract Services
The City shall hire a number of services to be performed on a contractual basis to assist in the
acquisition program. The services contracted for, or to be contracted for are:
7
1. Title certificate
2. Abstract continuation
3. Historical intensive level surveys, if required
4. Demolition work
Asbestos Testing/Survey and Monitoring
Asbestos Abatement (if necessary)
Structure Removal
5. Appraisals
6. Phase I ESAs
7. Decent, Safe and Sanitary Inspection Services
Property Management
Summary
The City will undertake certain property management activities upon the acquisition of those
voluntary -participating, properties that the owners choose to sell. It is the intention of the City to
minimize its costs and risks in managing the properties when acquired.
Inspections
The form of the Offer to Purchase provides that the City will have the right to inspect the
premises once the seller accepts the offer. The purposes of the inspection are to determine if
there are any hazardous materials on site, serious safety risks or unique fixtures to the property
that the City would need to deal with upon its acquisition.
A further requirement of the Offer to Purchase provides that the seller agrees to remove from the
property, at their expense and prior to closing, all vehicles, wood, construction materials, debris
and personal property. The purpose of this provision is to ensure that the City is not burdened
with the cost and risk of injury or expense of removal of the abandoned personal property.
Salvage
Salvage by the City will not occur without a compelling reason, as this is considered to be
program income and reduces the Federal cost share of the project. Salvage rights will be
awarded to the demolition contractor in an effort to reduce demolition costs. The City retains the
right to sell part or all of the structure following transfer of title from the owner and prior to
demolition. Revenue from salvage will be considered program income and treated accordingly.
Demolition
The City will comply with the "Public Assistance Demolition Guide" that was provided by
HSEMD for demolition completion. All acquired property will be returned and maintained as
open space in accordance with 44 CFR Part 80 and the FEMA Hazard Mitigation Assistance
Unified Guidance.
Prosram Close -Out
Once the owners of all eligible properties have been contacted and acquisitions/demolitions have
either been completed or declined, a review of the files will be completed by staff following the
clearing of all fixtures from the subject properties. Any program revisions that may have
occurred will be noted in the Administrative Plan and all files will be kept in accordance with the
Community's standard file policies and procedures. A final project and grant closeout meeting
between the community and HSEMD will be coordinated. At completion of the grant activities,
the community shall provide the following to FEMA through the State:
• A photograph of the property site after project implementation
• A copy of the recorded deed and attached deed restrictions
• Latitude and Longitude coordinates for each property
Relocation
Overview
The City will NOT be utilizing federal, state, and local funding in order to provide relocation
benefits for owner occupied properties that are actually acquired.
Tenant Relocation Benefits Program
The City will provide relocation assistance in conformance with the Uniform Relocation Act in
concert with the Robert T. Stafford Disaster Relief Act of 1974 provisions for tenants of the
acquired property. The tenants of the property are considered to be involuntarily displaced when
the owner accepts an offer to purchase the property. Accordingly, the City will award Tenant
Relocation Benefit standards for eligible tenants in accordance with the URA regulations.
1. Eligibility: To be eligible for the Tenant Residential Relocation Benefits, the tenant
must:
a. Have been, as of the date of initiation of negotiations, a legal residential
occupant of the property for which the City has offered to purchase.
b. The tenant can prove evidence of the tenancy for a minimum of 90 days prior to
the initiation of negotiations.
c. Purchase or rent a decent, safe and sanitary replacement housing unit that is
located outside of Zone A on NFIP Flood Hazard maps.
2. Determination of Benefits: The relocation staff will determine benefits in accordance
with the Uniform Relocation Act and funding source requirements, which will not
exceed $5,250 (unless housing of last resort provisions are utilized if approved by
HSEMD and FEMA Region VII).
9
3. Replacement Housing Requirements: All tenants receiving the Replacement Housing
Benefit must relocate to housing units that are decent, safe and sanitary and are
located outside of Zone A on NFIP Flood Hazard maps.
The decent, safe and sanitary inspection is not a certification or guarantee of the
housing unit's condition or of its major systems (such as heating, plumbing and
electrical). A qualified individual will inspect, at minimum, the items that are
specifically listed in federal regulations (49 CFR, Part 24).
4. Moving Expense Payment: In addition, the City will reimburse moving expenses once
the tenant relocates into a replacement dwelling. Actual expenses may be reimbursed,
or an advance/reimbursement may be based on the Federal Highway Administration's
Fixed Residential Moving Cost Schedule.
Post -Settlement Transfer of Property Interest
The community understands that transfer of property interest will only be considered if the
transferee meets the requirements stated in 44 CFR §80.19(b). After acquiring the property
interest, the community (including successors in interest) shall convey any interest in the
property only if the FEMA Region VII Regional Administrator, through the State of Iowa, gives
prior written approval of the transfer and the transferee.
The transferee must be another public entity or a qualified conservation organization. A
qualified conservation organization means an organization with a conservation purpose where
the organization maintained that status for at least 2 years prior to the opening of the grant
application period that resulted in the transfer of the property interest to the community, pursuant
to §170(h) (3) and (4) of the Internal Revenue Code of 1954, as amended, and the applicable
implementing regulations. The transferee must document its status as a qualified conservation
organization, where applicable. Any request to convey any interest in the property must include
a signed statement from the proposed transferee that it acknowledges and agrees to be bound by
the terms of the original mitigation grant conveyance, 44 CFR Part 80 and Hazard Mitigation
Grant Program programmatic guidance, and must reference and incorporate the original deed
restrictions providing the notice of conditions. The statement must also incorporate a provision
for the property interest to revert to the community or State in the event that the transferee ceases
to exist or loses its eligible status as defined in 44 CFR §80.19.
Monitoring Reporting and Inspection
HSEMD and the community will work together to ensure that the property is maintained in
accordance with land use regulations. Every 3 years, the community must submit documentation
to the FEMA Region VII Regional Administrator, through the State of Iowa, certifying that the
community has inspected the property within the month preceding the report and that the
property continues to be maintained consistent with the provisions of the grant. The State, FEMA
and the community have the right to enter the parcel, with notice, in order to inspect the property
to ensure compliance with land use regulations.
10
Relocation Staff
City relocation staff will work with identified tenants if and when investors -owners of residential
properties accept Offers to Purchase made by the City.
11 Records Retention and Audit Requirements
Records will be maintained for a minimum of three years from the date that HSEMD provides
written notification to the City that the grant has been closed. Records retention must comply
with the 44 Code of Federal Regulations (CFR), Section 13.26. Audit requirements will be in
accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133
(provisions of June 1997).
11
Prepared by: Geoff Fruin, Assistant City Manager, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5010
RESOLUTION NO. 15-366
RESOLUTION ACCEPTING THE WORK FOR THE ASHTON HOUSE RAMP
AND SIDEWALK PROJECT
WHEREAS, the Parks & Recreation Acting Director and the consultant, Abundant Playscapes,
Inc., have recommended that the work for construction of the Ashton House Ramp and Sidewalk
Project, as included in a contract between the City of Iowa City and Iowa State Contractors of
Ottumwa, Iowa, dated December 3, 2013, be accepted; and
WHEREAS, the performance and payment bond have been filed in the City Clerk's office; and
WHEREAS, this project is budgeted in CIP project #4178; and
WHEREAS, the final contract price is $147,621.97.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 30th day of
ATTEST:?U��,A/.,O�
CITY -CLERK
November , 20 15
It was moved by sotchway and seconded by
adopted, and upon roll call there were:
AYES:
x
P
NAYS:
Approved by
City Attorney's Office
Mims
ABSENT:
the Resolution be
Botchway
Dickens
Dobyns
Hayek
Mims
X Payne
Throgmorton
✓5 y � ��
.� .A j
November 10, 2015
City of Iowa City
Parks and Recreation Department
220 S Gilbert St, Iowa City, IA 52240
Re: Ashton House Ramp and Sidewalk Project
Dear Department Director:
I hereby oertbfy that the construction of Ashton House Ramp and Sidewalk Project has been
completed by Iowa State Contractors of Ottumwa, Iowa in substantial accordance with the plans
and specifications prepared by Abundant Playscapes.
The project was bid with a contract price of $98,508.97 and the final contract price is
$147,621.97.
There were change or extra work orders for the project as described below by project area:
1. Temporary railing $5,038.00
2. Access ramp footing depth adjustment $9,845.00
3. Additional grading / subbase replacement due to poor soils $2,350.00
4. Ramp load capacity / railing adjustment due to changes in design $980.00
5. Railing design changes after bidding $34,100.00
6. Deduct for temporary railing provided by City -3,200.00
TOTAL Additional Costs to Original Contract $49,113.00
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
W)��
Antonio Malkusak, PLA, CPSI
President/Landscape Architect
Abundant Playscapes, Inc.
pwanplmaslers"iroWs biter south hickory hill saleroom Project- aoosPlN 05 05 2014.doc
Prepared by: Geoff Fruin, Assistant City Manager, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5010
RESOLUTION NO. 15-367
RESOLUTION AUTHORIZING FINANCIAL SUPPORT OF THE JOHNSON
COUNTY LOCAL HOMELESS COORDINATING BOARD'S WINTER
EMERGENCY TEMPORARY SHELTER PROJECT
WHEREAS, The Johnson County Local Homeless Coordinating Board is a coalition of stakeholders that
collaborates on a variety of local homeless efforts; and
WHEREAS, The Johnson County Local Homeless Coordinating Board has developed a short-term,
winter emergency temporary shelter operation aimed to serve the local homeless population during
periods of extreme winter weather; and
WHEREAS, The Johnson County Local Homeless Coordinating Board is seeking financial partners to
secure funding to carry out the winter emergency temporary shelter and has requested $20,000 from the
City of Iowa City, which is the same amount requested of the City last year; and
WHEREAS, The Johnson County Local Homeless Coordinating Board is actively seeking to expand
services from last winter's 10 week offering to a proposed thirteen week offering; and
WHEREAS, The expansion of the service offering will require additional fundraising which is currently
ongoing; and
WHEREAS, The City of Iowa City is a supporter and active participant in the Johnson County Local
Homeless Coordinating Board and wishes to aid in its effort to provide short-term winter emergency
temporary shelter until a longer term regional solution can be developed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
The City Manager is authorized to disburse $20,000 to the Johnson County Local Homeless
Coordinating Board, or its fiscal agent, for the purpose of establishing a winter emergency
temporary shelter. Furthermore, the City Manager is authorized to disburse up to an additional
$10,000 for said purpose if such funding is needed to sustain operations for the full thirteen week
period.
Passed and approved this 30th day of
ATTEST:
CIT RK
November 2015.
�rv�.�1.
Approved by
City Attorney's Office
Resolution No. 15-367
Page 2
It was moved by Botchway and seconded by Mims the
Resolution be adopted, and upon roll call there were:
AYES: DAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
► r 1
"z,P.
CITY OF IOWA CITY
MEMORANDUM
Date:
November 20, 2015
To:
Tom Markus, City Manager
From:
Geoff Fruin, Assistant City Manager
Re:
Emergency Shelter Request
2■■■i(3�
The Johnson County Local Homeless Coordinating Board (LHCB) is a coalition of stakeholders,
including City of Iowa City staff, that collaborates on a variety of educational, advocacy, and
programming efforts. Last year the LHCB successfully launched a ten week temporary winter
homeless shelter. The City of Iowa City provided $20,000 to fund the shelter operations.
Additional funds were contributed by other local partners including government and non-profit
entities.
Last year's efforts were largely successful in keeping homeless individuals safe from the winter
cold. The shelter also benefitted police operations as related calls for service in the community
dropped significantly. This year the LHCB is planning to expand from a ten week service to a
thirteen week service (mid-December to mid-March).They have secured property at 1925
Boyrum Street for this temporary service and are actively working with community partners to
raise sufficient operational funds.
I am recommending that the City again contribute $20,000 toward this service. Additionally, I am
requesting that the City Council authorize the City Manager to expend up to an additional
$10,000 should such funds be needed to sustain operations for the full thirteen week period.
Prepared by: Dan Striegel, Equipment Superintendent, 1200 S. Riverside Drive, Iowa City, IA 52246 (319) 356-5197
RESOLUTION NO. 15-368
RESOLUTION AUTHORIZING THE PROCUREMENT OF ONE (1) LANDFILL
TRASH COMPACTOR AND ONE (1) LANDFILL TRACK TYPE TRACTOR
WHEREAS, one (1) trash compactor and one (1) track type tractor are budgeted for replacement
in Fiscal Year 2016; and
WHEREAS, National Intergovernmental Purchasing Alliance (National IPA) contract # 120377 will
be utilized for the purchase of the compactor and track type tractor; and
WHEREAS, the combined total purchase price of the compactor and track type tractor with
discounts and trade-in is $1,180,871.00; and
WHEREAS, the amount exceeds the City Manager's spending authority of $150,000, thus
requiring City Council approval; and
WHEREAS, funds for purchase of both the compactor and track type tractor are available in
account # 81710520 and #75750121; and
WHEREAS, approval of this procurement is in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The proposed procurement as described above is approved.
2. The City Manager is authorized to take the steps necessary to make the purchase.
Passed and approved this 30th day of November 2015.
MAYOR
Approved by r
ATTEST:_ CARK City Attorney's Office
Resolution No. 15-368
]Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
Mims the
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
30-15
^�ilgill®a& CITY OF IOWA CITY 1-
MEMORANDUM
Date: November 24, 2015
To: Tom Markus, City Manager
From: Chris O'Brien, Director of Transportation Services
Re: November 30, 2015 City Council Meeting
Introduction: At the November 30, 2015 City Council meeting, consideration will be given a
resolution approving the purchase, for replacement and upgrade, of one 2015 Caterpillar 826K
Compactor and one 2015 Caterpillar D7E Track Type Tractor from Altorfer, Inc. of Cedar
Rapids, IA.
History/background: Iowa City Landfill and Recycling Center is currently equipped with two
compactors and two track type tractors. These units are utilized in our daily operations to build
and compact our daily waste lifts and to haul and push dirt for our covering operations daily.
Both of these units have exceeded their anticipated useful life and are in need of replacement.
Discussion of Solution: In working with the equipment division, the National
Intergovernmental Purchasing Alliance (National IPA) contract # 120377 will be utilized for the
purchase of the compactor which affords a 14% discount off of list price. Contract price is
$655,538.00 minus trade allowance of $24,000.00 for unit #815 (1998 Caterpillar 826G) for a
total purchase cost of $631,538.00 as per Altorfer quote #IC826K111715 dated November 17,
2015. This price includes a 5 year/7,500 hour extended Premier warranty, Fire Suppression
system, freight and prep.
The National Intergovernmental Purchasing Alliance (National IPA) contract # 120377 will also be
utilized for the purchase of the track type tractor which affords a 22% discount off of list price.
Contract price is $654,333.00 minus trade allowance of $105,000.00 for unit #822 (2002
Caterpillar D8R) for a total purchase cost of $549,333.00 as per Altorfer quote #ICD7E111715
dated November 17, 2015. This price includes a 5 year/7,500 hour extended Premier warranty,
Fire Suppression System, rear scraper hydraulics, freight and prep.
Financial Impact: The total cost for these two pieces of heavy equipment is $1,180,871
after contract discounts and trade in of used equipment. Funds for this purchase are available
from accounts 81710520 and 75750121.
Recommendation: Due to the age and condition of the current equipment, it is recommended
that the purchase for replacement and upgrade of one 2015 Caterpillar 826K Compactor and
one 2015 Caterpillar D7E Track Type Tractor from Altorfer, Inc. of Cedar Rapids, IA be
approved.
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 15-369
RESOLUTION SETTING PUBLIC HEARING FOR DECEMBER 15, 2015, ON
A PROPOSAL TO CONVEY A SINGLE FAMILY HOME LOCATED AT 628
NORTH JOHNSON STREET.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City purchases rental units located in designated neighborhoods surrounding
the University of Iowa, rehabilitates them, and then sells them to income -eligible buyers; and
WHEREAS, the City purchased and rehabilitated a single family home located at 628 North
Johnson Street, Iowa City; and
WHEREAS, the City has received an offer to purchase 628 North Johnson Street for the
principal sum of $179,900 (the amount the City paid to acquire the home), plus the "carrying
costs", which are all costs incurred by the City to acquire the home, maintain it and sell it,
including abstracting and recording fees, interest on the loan to purchase the home, mowing
and snow removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and
rehabilitate the home; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase
of the home.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
The City Council does hereby declare its intent to convey a single family home located at
628 North Johnson Street, Iowa City, Iowa, also known as part of Lot 4 in Block 31, Iowa
City, Iowa, for the sum of $179,900, plus the "carrying costs".
2. A public hearing on said proposal should be and is hereby set for December 15, 2015, at
7:00 p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to
cause notice of said public hearing to be published as provided by law.
Resolution No. 15-369
Page 2
It was moved by sotchway and seconded by Mims the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
Passed and approved this 30th day of November , 2015.
Approved by
City Attorney's Office
ATTEST: A) .
CIT LERK
CITY OF IOWA CITY
MEMORANDUM
DATE: November 20, 2015
TO: Tom Markus, City Manager
FROM: Jason Havel, City Engineer Z+}Fle
RE: Iowa City Gateway
November 30 and December 15
Introduction:
This project includes the elevation of Dubuque Street, the reconstruction of the Park Road
Bridge over the Iowa River and the expansion of Park Road from two to three lanes. The
project has been designed as a multi -modal corridor to include roadway, intersection and utility
improvements (water, storm and private), new sidewalk and trails, and a trunk sanitary sewer.
This project is included in the capital program.
History/Background:
Dubuque Street serves as the front door to our community and is also our most flood prone
arterial street. Due to its low elevation and proximity to the Iowa River, Dubuque Street is the
first roadway to close due to river flooding. The road was closed for more than 60 days, in
1993, for over 30 days in 2008 and for approximately 3 weeks each in the summers of 2013 and
2014. Locally heavy rainfall causes flooding and the closure of the northbound lanes of
Dubuque Street almost every year. Dubuque Street carries more than 25,000 vehicles a day
between 1-80, the downtown business district and the University of Iowa Campus and, is vital for
emergency access to Iowa City neighborhoods, 1-80 and points north. Park Road Bridge was
constructed in 1956 and was closed and overtopped in the 2008 flood, creating significant
backwater that caused additional impacts to upstream neighborhoods.
Discussion of Solution:
The City contracted with HNTB Corporation of Kansas City, MO in November, 2010 for
consulting services for the Iowa City Gateway project. This project will elevate Dubuque Street
to the 100 -year +1 -foot flood elevation and reconstruct the Park Road Bridge as a Through -Arch
Bridge with the low steel elevation raised to one -foot above the 200 -year flood elevation.
Impacted utilities and intersections will be improved with the project as well, including the trunk
sanitary sewer from Foster Road south through the Dubuque Street corridor. Park Road from
the Iowa River to Riverside Drive will be widened to a 3 -lane section to assist cars entering and
leaving Upper & Lower City Park and the new Hancher Auditorium. The project will be let by the
Iowa Department of Transportation on March 15, 2016 for completion of construction prior to the
fall of 2018.
Financial Impact:
The total estimated construction cost for this project is $52,000,000.00. The funding sources
are as follows: $6M in Surface Transportation Program (STP) Funds and $1.5M from the
Transportation, Housing and Urban Development Committee on Appropriations. This funding
will provide up to $7.5M toward construction costs. These amounts are in addition to the $3M
Economic Development Administration Grant that assisted with the costs associated with final
design and engineering. General Obligation Bonds and the Local Option Sales Tax revenue will
be used for local participation.
Recommendation:
Staff recommends approval of the plans, specifications and estimate.
11-30-15
2d(2)
Prepared by: Melissa Clow, Special Projects Administrator, 410 E. Washington St., Iowa City, IA 52240, (319)356-5413
RESOLUTION NO. 15-370
RESOLUTION SETTING A PUBLIC HEARING ON DECEMBER 15, 2015 ON
PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST
FOR THE CONSTRUCTION OF THE IOWA CITY GATEWAY PROJECT,
DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND
DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR
PUBLIC INSPECTION.
WHEREAS, funds for this project are available in the Iowa City Gateway account #
S3809.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA:
1. That a public hearing on the plans, specifications, form of contract, and estimate of cost
for the construction of the above-mentioned project is to be held on the 15th day of
December, 2015, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if
said meeting is cancelled, at the next meeting of the City Council thereafter as posted by
the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing
for the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. That the copy of the plans, specifications, form of contract, and estimate of cost for the
construction of the above-named project is hereby ordered placed on file by the City
Engineer in the office of the City Clerk for public inspection.
Passed and approved this 30th day of November -120 15
ATTEST: JL -
CITY CEERK
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City Attorney's Office
Resolution No. 15-370
Page 2
It was moved by Botchwav and seconded by Mims the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS:
ABSENT:
x
Botchway
X
Dickens
x
Dobyns
x
Hayek
x
Mims
x Payne
X
Throgmorton
Prepared by: Sara Hektoen, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 15-371
RESOLUTION OF INTENT TO CONSIDER AN AMENDMENT TO AN AGREEMENT
FOR PRIVATE REDEVELOPMENT, INCLUDING THE TRANSFER OF LAND, BY
AND BETWEEN THE CITY OF IOWA CITY, IOWA, AND THE CHAUNCEY, L.L.C.
AND SETTING A PUBLIC HEARING AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, on June 8, 2015, pursuant to Resolution No. 15-193 the City entered into a
Development Agreement (hereinafter "Agreement") with The Chauncey, LLC (hereinafter "The
Chauncey") for the sale of city property at the corner of College and Gilbert Streets and
development thereon of a mixed-use project consisting of a 15 -story mixed use building with
Class A office space, a hotel, a bowling alley, two movie theatres, residential condominiums, and
upgrades to the Chauncey Swan Park, together with related site improvements, all designed and
constructed to at least LEED Silver standards with a construction cost of approximately $49
million.
WHEREAS, the property to be redeveloped pursuant to the Agreement is the subject of two
pending lawsuits that have prevented The Chauncey from being able to proceed with
development and satisfy the numerous contingencies and deadlines contained within the
Agreement; and
WHEREAS, The Chauncey has asked the City for an extension of the deadlines, including the
dates for closing, start of construction and final completion, based upon final resolution of the
litigation, as set forth in the First Amendment to Agreement for Private Redevelopment attached
hereto; and,
WHEREAS, because the delays have not been caused by The Chauncey city staff recommends
that the requested extensions be approved by Council; and,
WHEREAS, neither the Urban Renewal Law nor any other Code provision sets forth any
procedural action required to be taken before said proposed Amendment No. 1 is approved, and
pursuant to Section 364.6 of the City Code of Iowa, it is deemed sufficient if the action
hereinafter described be taken and the City Clerk publish notice of the proposal and of the time
and place of the meeting at which the Council proposes to take action thereon and to receive oral
and/or written objections from any resident or property owner of said City to such action.
NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IN THE STATE OF IOWA:
1. The City Council does hereby declare its intent to consider the proposed Amendment No. 1 to
the Agreement for Private Redevelopment with The Chauncey, LLC, which agreement includes
the conveyance of Lot 5, the west 30' of Lot 6, and the west 160' of the alley, all in Block 43,
Original Town, Iowa City, Iowa, to The Chauncey, L.L.C..
2. A public hearing on said proposal should be and is hereby set for December 15, 2015, at 7:00
P.M. in Emma J. Harvat Hall at City Hall, 410 E. Washington Street, Iowa City, Iowa, or, if said
meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City
Resolution No. 15-371
Page 2
Clerk.
3. The City Clerk is hereby directed to cause at least one publication to be made of a notice of
said meeting; in a legal newspaper, printed wholly in the English language, published at least
once weekly, and having general circulation in said City, said publication to be not less than four
(4) clear days nor more than twenty (20) days before the date of said public meeting.
Passed and approved this 30thday of November
A ved by
City Attorney's Office
�i7
, 2015 .
i .�( i_
I Uy FA x9j
ATTEST:
CITY ERK
Resolution No. 15-371
)Page 3
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT: ABSTAIN:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
Throgmorton x
FIRST AMENDMENT TO AGREEMENT FOR PRIVATE REDEVELOPMENT
THIS FIRST AMENDMENT TO AGREEMENT FOR PRIVATE REDEVELOPMENT
(this "First Amendment") is made as of '("First Amendment
Trigger Date"), by and between THE CITY OF IOWA CITY, IOWA, a municipality
("City"), and THE CHAUNCEY, L.L.C., an Iowa limited liability company ("Redeveloper").
RECITALS
WHEREAS, City and Redeveloper are parties to that certain Agreement For Private
Redevelopment dated Trigger as of May 27, 2015 (the "Agreement") in connection with the sale
to and redevelopment by Redeveloper of the property generally located at the northeast corner of
South Gilbert Street and East College Street in Iowa City, Iowa, legally described on Exhibit A
attached hereto (the "Redevelopment Property"); and
WHEREAS, the parties desire and agree to amend the Agreement as set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1. Incorporation of Recitals. The foregoing recitals are incorporated herein as if
set forth in their entirety. The capitalized terms used herein shall have the meanings ascribed to
them in the Agreement.
2. Trigger Date Defined. A new Section 0.5 shall be added to Part I the Agreement,
which Section shall read as follows: "The parties agree that the phrase "the Trigger Date of this
Agreement", as used herein, shall be the date on which a final appellate decision is issued in
Iowa Appellate Case Number 15-1946 (captioned "Trinity Episcopal Church v. City Council of
Iowa City")."
3. Extension of Dates. The following time frames and/or dates set forth in the
Agreement are hereby extended as follows:
(a) Financing Contingency. Section 20) of Part I of the Agreement is
amended to read as follows (with additions indicated by underline, and deletions indicated by
strip):
The Redeveloper shall proceed with due/diligence to obtain construction
financing commitments, which commitments shall be sufficient to enable
the Redeveloper to successfully complete the Minimum Improvements as
contemplated in this Agreement. Redeveloper will obtain all financing
commitments necessary for the construction of the Minimum
Improvements prior to the issuance of a foundation permit or the City's
issuance of bonds, whichever is earlier, but in no event later than one year
from the date -Trigger Date of this Agreement, and provide a copy of such
commitments to the City by such date. This agreement is contingent upon
Redeveloper obtaining financing upon terms and conditions satisfactory to
Redeveloper and City, and shall be a condition precedent to the City's
conveyance of the Property to Redeveloper in accordance with Section 6
herein. In the event such financing is not obtained by Redeveloper within
one year from the date -Trigger Date of this Agreement, Redeveloper or the
City shall have the right to terminate this Agreement.
(b) Abstract of Title. The first two sentences of Section 3(d) of Part I of the
Agreement are amended to read as follows (with additions indicated by underline, and deletions
indicated by stfilorthfeugh):
The City, at its expense, shall provide an Abstract of Title on the subject
property continued through the Hate -Trigger Date of this Agreement, for
examination by the Redeveloper. The City shall deliver said Abstract to
Redeveloper within 30 calendar days of the date -Trigger Date of this
Agreement, after which the Redeveloper shall have 30 calendar days to
examine same and issue a preliminary title opinion.
(c) Time for Commencement and Completion of Minimum Improvements
Section 4 of Part I of the Agreement is amended to read as follows (with additions indicated by
underline, and deletions indicated by sti-ikethfeugh):
The construction of the Project and Minimum Improvements shall
commence not later than one (1) year from the date -Trigger Date of this
Agreement, and shall be substantially completed on or before Desemb
31, 2W4the date which is three (3) years after the Trigger Date of this
Agreement (hereinafter referred to as "the Completion Date").
(d) Progress Reports and Time for Submission of Construction Plans Section
5(a) of Part I of the Agreement is amended to read as follows (with additions indicated by
underline, and deletions indicated by s etlwough):
Redeveloper will keep the City informed regarding the status of the
project by responding to inquiries from representatives of the City and
furnishing progress reports as reasonably requested, but not less than
quarterly during construction. Redeveloper agrees to provide to the City
schematic design development drawings showing preliminary floor plans,
elevations and related information, particularly with regard to the bowling
alley and movie theatres, no later than 180 calendar days after the date
Trigger Date of this Agreement. No formal response will be required from
the City to these design development drawings. The City, however, will
alert Redeveloper to any known code violations or other design issues that
would impact the acceptance of the Construction Plans. The time within
which the Redeveloper shall submit its initial Construction Plans to the
City in any event, pursuant to Part II, Article III hereof, shall be not later
than 270 calendar days from the date -Trigger Date of this Agreement for
the site preparation and foundation plans; 365 calendar days from the date
Trigger Date of this Agreement for the structural and shell construction
plans; and 480 calendar days from the dal,—Trigger Date of this Agreement
for the finish construction plans. Within 30 calendar days of each
submittal, the City shall review and approve or reject and make
recommendations for corrections to said Construction Plans. The City's
review of said Construction Plans shall be based on the Urban Renewal
Plan, all applicable codes and any additional requirements imposed on the
Redeveloper under this Agreement.
(e) Time for Submission of Evidence of Financing Ability. Section 5(e) of
Part I of the Agreement is amended to read as follows (with additions indicated by underline, and
deletions indicated by str4kethfough):
Prior to conveyance of the Property to Redeveloper or issuance of bonds,
whichever is earlier, but in no event later than one year from the die
Trigger Date of this Agreement, the Redeveloper shall submit to the City
evidence satisfactory to the City that the Redeveloper has the financial
ability and commitments for construction and mortgage financing
necessary for construction of the Minimum Improvements, as provided in
Sections 301 and 20) hereof.
(f) Time and Place for Closing and Delivery of Deed Section 5(f) of Part I of
the Agreement is amended to read as follows (with additions indicated by underline, and
deletions indicated by stfikethr-eu&4):
If the conditions precedent to closing set forth in Section 6 have been
satisfied, the City shall deliver the Deed and possession of the
Development Property to the Redeveloper on or before one (1) year from
the date -Trigger Date of this Agreement4s-exeeuted, or on such other date
as the parties hereto may mutually agree in writing (the "Closing Date");
provided, however, that in the event the conditions precedent to closing
have not been satisfied, either the City or Redeveloper may terminate this
Agreement or waive or extend the time for satisfaction of such conditions
precedent. Conveyance of the Deed shall be made at the principal office of
the City on the Closing Date and the Redeveloper shall accept such
conveyance and pay to the City at such time and place the Purchase Price
in immediately available funds.
(g) Conditions Precedent to Conveyance of Property_- Section 6(b) of Part I of
the Agreement is amended to read as follows (with additions indicated by underline, and
deletions indicated by shi gh):
The Redeveloper shall have submitted to the City those Construction Plans
due within 270 calendar days from the date Trigger Date of this
Agreement pursuant to Part I, Section 5(a), and shall have been approved
by the City Part II, Article III of this Agreement. The Redeveloper shall
have submitted to the City a certification that the plans are in compliance
with the Urban Renewal Plan.
(h) Minimum Assessment Agreements.
i. The introductory paragraph of Section 7(c) of Part I of the
Agreement is amended to read as follows (with additions indicated by underline, and deletions
indicated by stfikedifetigh):
it will not cause a reduction in the taxable valuation upon which real
property taxes are paid with respect to the Project, which consists of a
multi -use structure generally consistent with the Minimum Improvements
and Uses shown on Exhibit D, below the amount of $16,345,771 after
taking into consideration any factors such as "roll -backs" which would
reduce the taxable value of the Property as of januar-y1, 241sthe first day
of January of the year in which the Completion Date falls, and below the
amount of $30,128,234 after taking into consideration any factors such as
"roll -backs" which would reduce the taxable value of the Property as of
januar-y 1, the first day of January of the year immediately following
the Completion Date ("Assessor's Minimum Actual Value") through:
ii. Paragraph 1 of Exhibit H attached to the Agreement (the Minimum
Assessment Agreement) is amended to read as follows (with additions indicated by underline,
and deletions indicated by str-ikethFeugh):
As of the first day of January of the year in whichthe
Completion Date falls, a partial assessment shall be made fixing the
minimum actual taxable value for assessment purposes for the land and
Minimum Improvements to be constructed thereon by the Redeveloper at
not less than $16,345,771 after taking into consideration any factors such
as "roll backs" which would reduce the taxable value of the property
("Minimum Actual Value").
iii. Paragraph 2 of Exhibit H attached to the Agreement (the Minimum
Assessment Agreement) is amended to read as follows (with additions indicated by underline,
and deletions indicated by st ikethFeugh):
As of Jamar -T24�9the first day of January of the year immediately
following the Completion Date, a full assessment shall be made fixing the
minimum actual taxable value for assessment purposes for the land and
Minimum Improvements to be constructed thereon by the Redeveloper at
not less than $30,128,234 after taking into consideration any factors such
as "roll backs" which would reduce the taxable value of the property
("Minimum Actual Value"). The parties hereto acknowledge and agree
that construction of the Minimum Improvements will be substantially
completed on or before Deeember31, 201Sthe date which is three years
after the Trigger Date of the Agreement for Private Redevelopment.
iv. Schedule Y, which is attached to Exhibit H of the Agreement (the
Minimum Assessment Agreement), is amended by adding the following paragraph immediately
following the payment table:
The payment dates set forth on this Schedule Y shall be adjusted according
to date on which construction of the Project is substantially completed. By
way of clarification, the beginning date for partial assessment (based on a
valuation of $16,345,771) shall be the first day of January of the year in
which construction of the Project is substantially completed, and the
beginning date for full assessment (based on a valuation of $30,128,234)
shall be the first day of January of the year immediately following
substantial completion of construction of the Project.
V. The introductory portion of paragraph 1 of Exhibit I attached to the
Agreement (the Minimum Assessment Agreement for the Park@201 property) is amended to
read as follows (with additions indicated by underline, and deletions indicated by str-ilethr-eugh):
As of the first day of January of the year immediately
following substantial completion of construction of the Project as set forth
in the Chauncey Agreement, a full assessment shall be made fixing the
minimum actual taxable value for assessment of Units 501, 502, 601, 701,
703 and 1302 at 201 East Washington Street, legally described as Units
501, 502, 601, 701, 703 and 1302 of Park@201 Condominium, Iowa City,
Iowa, according to the Declaration thereof recorded December 23, 2013 in
Book 519, Page 481, Records of the Recorder of Johnson County, Iowa,
together with said unit's interest in the common elements as defined by the
Declaration, at the following assessed values, after taking into
consideration any factors such as "roll backs" which would reduce the
taxable value of the property ("Minimum Actual Value"):
vi. Paragraph 1 of Exhibit J attached to the Agreement (the
Memorandum of Agreement for Private Redevelopment) is amended to read as follows (with
additions indicated by underline, and deletions indicated by stfike gh):
That the recording of this Memorandum of Agreement for Private
Redevelopment shall serve as notice to the public that the Agreement
contains provisions restricting Redevelopment and use of the
Redevelopment Property and the improvements located and operated on
such Redevelopment Property, and further subjects the Redevelopment
Property to a Minimum Assessment Agreement entered into under the
authority of Iowa Code Chapter 403, in which the City and the
Redeveloper (and any successors or assigns) agree that, as of januafy 1,
2 14the first day of January of the year in which construction of the
Project is substantially completed, a partial assessment shall be made
fixing the minimum actual value of the Redevelopment Property and all
improvements located thereof for calculation of real property taxes at not
less than $16,345,771 after taking into consideration any factors such as
"roll -backs" which would reduce the taxable value of the property, and
that, as of ja=iaai-yr2W9the first day of January of the year immediately
following substantial completion of construction of the Project, a full
assessment shall be made fixing the minimum actual value of the
Redevelopment Property and all improvements located thereof for
calculation of real property taxes at not less than $30,128,234 after taking
into consideration any factors such as "roll -backs" which would reduce the
taxable value of the property; and that certain condominium units located
within The Chauncey Development be dedicated to particular uses.
4. Extensions. None of the foregoing amendments to the dates set forth in the
Agreement shall be construed to limit or preclude any other extensions of such dates
contemplated or permitted pursuant to the terms of the Agreement.
5. Miscellaneous.
(a) Except as hereinabove modified and amended, the Agreement shall remain
in full force and effect in accordance with its terms and is hereby ratified and confirmed.
(b) This First Amendment supersedes any prior representations, offers,
negotiations or understandings between the parties with respect to the subject matter hereof.
(c) This First Amendment may be signed by the Parties in counterpart and
shall be binding as if signed together. Facsimile or electronic copies of the signed counterparts
shall be deemed to be authentic and valid as an original of this First Amendment.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK;
SIGNATURE PAGES FOLLOW.]
IN WITNESS WHEREOF, the undersigned have executed this First Amendment as of the First
Amendment Trigger Date set forth above.
By
/I -
�Igr Amey s ofte,
Approved by:
STATE OF IOWA
COUNTY OF JOHNSON
CITY:
CITY OF IOWA CITY, IOWA, a municipality
Matthew J. Hayek, Mayor
ATTEST:
Marian K. Karr, City Clerk
On this day of , 2015, before me a Notary Public in and for said
County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known,
who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal
Corporation, and that said instrument was signed and sealed on behalf of said Municipal
Corporation by authority and resolutions of its City Council and said Mayor and City Clerk
acknowledged said instrument to be the free act and deed of said Municipal Corporation by it
voluntarily executed.
Notary Public in and for the State of Iowa
First Amendment to Agreement for Private Redevelopment — Signature Page
REDEVELOPER:
THE CHAUNCEY, L.L.C., an Iowa limited
liability company
Marc B. Moen, Member
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was acknowledged before me on this _ day of , 2015,
by Marc B. Moen, as Member of The Chauncey, L.L.C.
Notary Public in and for the State of Iowa
First Amendment to Agreement for Private Redevelopment — Signature Page
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY
Lots 5, 6, and the West 160' of the 20' wide alley, all in Block 43, Original Town, Iowa City,
Iowa.
CITY OF IOWA CITY 3
-T4 MEMORANDUM
Date: November 25, 2015
To: City Council
From: Eleanor M. Dilkes, City Attorney
��,
Re: Amendment to Chauncey Development Agreement
As has been reported in the press, Trinity Episcopal Church has appealed the decision of the
Johnson County District Court rejecting Trinity's challenge to the City Council's rezoning of the
property at the corner of College and Gilbert streets to CB -10. Attached is a letter from the
Developer's attorney requesting an amendment to the agreement to extend the various
deadlines, including the sale of the property, start of construction and completion of
construction, due to the delays caused by Trinity's lawsuit. Approval of the proposed
Amendment will take two council meetings. The Developer has asked that the setting of the
public hearing take place at the Council meeting on November 30.
The proposed Amendment has the deadlines running from the date of the resolution of the
litigation, rather than the date of the Agreement. For example, the current agreement requires
construction to commence within one year from the date of the Agreement. The proposed
Amendment would require commencement of construction within one year of the "trigger date"
which is defined to be "the date on which a final appellate decision is issued in" the Trinity
lawsuit. Because the delays have not been caused by the Developer, staff concurs with the
proposed Amendment and has placed a resolution setting a public hearing on the proposed
Amendment for December 15, 2015 on your agenda for November 30. While the setting of a
public hearing is normally on the consent agenda, this will be a separate item due to Council
member Throgmorton's recusal based on conflict of interest.
Please give me a call if you have questions.
Cc: Tom Markus, City Manager
Geoff Fruin, Ass't City Manager
Marian Karr, City Clerk
Sara Greenwood Hektoen, Ass't City Attorney
THE LAW OFFICES OF
LEFF LAW FIRM, L.L.P.
CHARLES T. TRAW
222 SOUTH LINN STREET
RANDALL B. WILLMAN
IOWA CITY, IOWA
STEVEN E. BALLARD
52240-1601
MARK C. DANIELSON
TIMOTHY S. GRADY
THOMAS E. MAXWELL
TELEPHONE: (319) 338-7551
PATRICK J. FORD
FACSIMILE: (319) 338-6902
ABIGAIL L. BROWN www.lefflaw.com
November 24, 2015
*** for hand -delivery***
Ms. Eleanor Dilkes
410 East Washington Street
Iowa City, Iowa 52240
ARTHUR O. LEFF (1906-1989)
PHILIP A. LEFF (Of Counsel)
R. BRUCE HAUPERT (Of Counsel)
Writer's email: ford@lefflow.com
SAPFC3 %``B D BY
NOV 8 4 2015
Re: proposed amencbwnts to the City'*, redeveloPlnent
agreement with The Chauncey, L.L.C.
Dear Eleanor:
As you know, this office represents The Chauncey, L.L.C. I am
writing today to request certain amendments to redevelopment
agreement between the City of Iowa City and The Chauncey, L.L.C.
We understand that the process for amending the agreement will
require two meetings of the City Council, and we request that
hearing on the requests set forth herein be set for next Monday,
November 30, 2015.
As you know, the time frame for construction has been
significantly delayed by the certiorari action filed by Trinity
Episcopal Church, which is now under appeal. This delay has
rendered certain deadlines set forth in the redevelopment
agreement unworkable. In order for the project to proceed, we
request that the redevelopment agreement be amended in the
following particulars:
1. Add now Section 0.5. We would like to add a new
paragraph 0.5, which would read as follows:
The parties agree that the phrase "the
Trigger Date of this Agreement", as used
herein, shall be the date on which a final
appellate decision is issued in Iowa
Ms. Eleanor Dilkes
November 24, 2015
Page 2 of 5
Appellate Case Number 15-1946 (captioned
"Trinity Episcopal Church v. City Council of
Iowa City").,
Throughout the rest of the agreement, various
deadlines are tied to the newly -defined "Trigger Date"
of the agreement, rather than the date the agreement
was originally executed,
2c Section 2(j). Section 2 sets forth the Redeveloper's
representations and warranties. Subsection (j)
addresses the Redeveloper's promise to use due
diligence in obtaining sufficient financing for the
project. We would like to amend the financing
contingency deadline in this subparagraph from "one
year from the date of [the] Agreement" to "one year
from the Trigger Date of [the] Agreement";..
1.7: Section 3(d). Section 3 addresses the conveyance of
the city -owned property to the Redeveloper. We would
like to amend subparagraph (d) so that the abstract of
title will be continued through the Trigger Date of
the agreement, rather than the date the agreement was
originally executed.
4.. Section 4. Section 4 addresses the times by which
construction must commence, and be substantially
completed.
We would like to change the commencement date in this
section from "one year from the date of [the]
Agreement" to "one year from the Trigger Date of [the]
Agreement %
We would also like to define the "Completion Date" in
this section as "the date which is three years after
the Trigger Date".
S. Section 5. Section 5 sets forth certain deadlines..
Subsection 5(a) will need to be amended so that
deadlines for submitting various plans (schematic
design, construction plans, site preparation and
foundation plans, and structural and shell
Ms. Eleanor Dilkes
November 24, 2015
Page 3 of 5
construction plans) are tied to the Trigger Date of
the agreement, rather than the date the agreement was
originally executed.
Subsection 5(e) will also need to be amended so that
the Redeveloper's deadline to submit evidence of its
financial ability and commitments is also tied to the
Trigger Date of the agreement, rather than the date
the agreement was originally executed.
Subsection: 5(f) will need to be amended so that the
closing date (regarding the real estate transfer) is
"one year from the Trigger Date of [the] Agreement",
rather than "one year from the date [the] Agreement is
executed".
6. Section 6. Section 6 sets forth .the conditions
precedent to the obligation to convey the real estate.
Subsection 6(b) will need to be amended so that the
deadline by which the Redeveloper must submit
construction plans is tied to the Trigger Date of the
agreement, rather than the date the agreement was
originally executedf.
7. Section 7(c). Section 7 addresses the minimum
assessment agreements. Given that the Completion Date
is not expressly known, subsection 7(c) will need to
be amended so that the required minimum assessments
become effective on a date that is tied to the newly -
defined Completion Date (rather than a specific date).
For example, I might suggest that the date on which
the initial $16,345,771 minimum value is imposed
should be "the first day of January of the year in
which the Completion Date falls". Similarly, the date
on which the subsequent $30,128,234 minimum value is
imposed should be "the first day of January of the
year immediately following the Completion Date %
8,, Exhibit H. Exhibit H is the Minimum Assessment
Agreement for the project. Similar to the proposed
amendment to subsection 7(c), this Exhibit will need
to be amended so that the required minimum assessments
become effective on a date that is also tied to the
Ms. Eleanor Dilkes
November 24, 2015
Page 4 of 5
newly -defined Completion Date (rather than a specified
date).
Schedule Y (attached to the Minimum Assessment
Agreement) sets forth a table of the minimum
assessment amounts to be imposed. Given the delay to
construction caused the Johnson County Case Number
CVCV077086 (Trinity Episcopal Church v. City Council
of Iowa City), there needs to be some flexibility
built into this table, so that the payment dates can
be adjusted, depending on when construction can be
completed. I suggest adding a paragraph to this
Schedule Y, which reads as follows:
The payment dates set forth on this Schedule
Y shall be adjusted according to date on
which construction of the Project is
substantially completed. By way of
clarification, the beginning date for
partial assessment (based on a valuation of
$16,345,771) shall be the first day of
January of the year in which construction of
the Project is substantially completed, and
the beginning date for full assessment
(based on a valuation of $30,128,234) shall
be the first day of January of the year
immediately following substantial completion
of construction of the Project.
93 Exhibit I. Exhibit I is the Minimum Assessment
Agreement for the "Park@201."• property. Similar to
Exhibit H, this Exhibit will also need to be amended
so that the required minimum assessments become
effective on a date that is tied to the newly -defined
Completion Date.
10. Exhibit J. Exhibit J is the Memorandum of Agreement,
to be recorded for the purpose of giving public notice
of certain terms in the redevelopment agreement.
Subparagraph 1 of the Memorandum addresses the Minimum
Assessment Agreement for the property. This paragraph
will need to be amended to reflect the changes to the
dates set forth in the Minimum Assessment Agreement.
Ms. Eleanor Dilkes
November 24, 2015
Page 5 of 5
Thank you for your -attention to this. As always, please feel
free to contact me if you wish to discuss this further.
Very truly yours,
LEFF LAW FIRM, L.L.P..
Patrick Jr, rd
cc: Mr., Marc B. Moen