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Home My WebLink About2017-05-16 Public hearingr1 05-16-17 `CITY OF IOWA CITY 4e(1) '�not � MEMORANDUM Date: May 4, 2017 To: Planning and Zoning Commission From: Robert Miklo, Senior Planner Re: REZ17-00007 Prairie Hill Co -Housing Amendment Background: In July 2015 the City Council approved a rezoning from Medium Density Single Family Residential (RS -8) to Planned Development Overlay/Medium Density Single Family Residential (OPD/RS-8) and a Planned Development Overlay Plan for Prairie Hill, a 33 -dwelling unit cohousing development located on the west side of Miller Avenue south of Benton Street (copies of the previous staff report and memorandum are attached). The applicant is now requesting approval of amendments to the OPD Plan to allow 3 additional dwelling units and to make minor changes to building designs, garage sizes, and to add 5 parking spaces as detailed in the attached statement from the applicant. One additional unit is proposed in the common house and a duplex is proposed to change to a four -unit building with the addition of a second floor. As a result of building within the previously approved building footprints, with the exception of the additional parking spaces, no significant changes to the building coverage or site design will occur if the amendments are approved. Density: Even with the 3 additional units the density of Prairie Hill will be 4.6 units per acre, well within the maximum of 8 dwelling units per acres allowed under an OPD -8 zone and the approximate 5 units per acre achieved within typical RS -8 zoned development. The applicant also submitted an exhibit demonstrating that if the property were subdivided into a conventional cul-de-sac street, up to 36 dwelling units could be achieved. Based on these numbers, staff finds the amendment meets the approval criteria for density within an OPD zone (Section 14- 3A-4 D). OPD Design: The four townhouse style units to the north of Prairie Hill Lane are proposed to change from 2 floors to 1 floor. A floor will be added to the duplexes located in the southwest corner to create 4 stacked flats. The attached elevation drawings illustrate that the overall character of the design is similar to the previously approved plan. As noted above the additional dwellings are proposed to occur in approximately the same footprint shown on the previously approved OPD. The additional units require five parking spaces. Three spaces are proposed to be added in the parking area near the entrance to the development and two are proposed near the common house. The applicant will need to demonstrate to the City Engineer that the stormwater management facilities contain sufficient capacity for the additional stormwater runoff. STAFF RECOMMENDATION: Staff recommends approval of REZ17-00007 a rezoning to amend the preliminary OPD Plan to add three dwelling units to Prairie Hill resulting in a total of 36 cohousing units on 7.8 -acres of land located on the west side of Miller Avenue south of Benton Street. April 27, 2017 Page 2 ATTACHMENTS: 1. Location map 2. Preliminary OPD Sensitive Areas Development Plan 3. Applicant's statement 4. Building elevation drawings 5. Previous staff memorandum dated May 21, 2015 6. Previous staff report dated September 18, 2014 Approved by: / John Yapp, Development Services Coordinator, Department of Neighborhood and Development Services A rezoning application submitted by Iowa City Cohousing LLC to amend the preliminary OPD plan to add three dwelling units to Prairie Hill, a 36 -unit cohousing development on Miller Avenue. r Wes......-�-: ■ '0 ! ' Ir *',1!1111 I IIN+111 -q - f CITY Of IOWA Cn 1VMC 11y1. _ d.�t HIGHWAY 1 W w REVISED FINAL PLANNED DEVELOPMENT AND SITE PLAN PRAIRIE TALL IOWA CITY, IOWA I"EwI MUNPf o.� NN I. Kw. µ ... ev 1-1X M N T-4 O I r � c I'l IV % of Il I, No".,m�. T� � u,. wex uw u:u.w sry j�, �� _• I�� .w.�a<nw�m.,.a�.ma I ns or or— ,o m stun FYI yiv 6omm SFU SFU SFL SFL { If I; ,.0' ew imer onsr s DL 9FFU SFU ly /y I m DL sr JJJ „ �L la. " NSSFLFL. � q N `-14-0592 PRAIWP.IML IOWA CITY W OOSINC IOWA MY, IA hbk o M,L Lm D. . OAR BERT .No Or I STATEMENT FROM THE APPLICANT Iowa City Cohousing LLC is requesting several changes to the Planned Development Overlay (OPD) plan approved by City Council January 19, 2016. 1. ADDITIONAL LIVING UNITS. Iowa City Cohousing LLC realized that it would be possible to add more units than previously approved within the RS -8 density. Doing so will permit us to include more owners and make all of the units more affordable. The plan approved by the city Council included 33 living units. This application is a request to add 3 units. The additional units will be added to the buildings already sited on the plan with no change in building footprints. a. COMMON HOUSE --The City Council approved plans for 3 apartments on the upper level of the building of the Common House. This application is a request to build a fourth apartment (unit 36) the same size as the other 3. (See floor plans.) b. BUILDING 27-30. The plans approved by the council showed this building as a single -story duplex with units up to 950 sf each. We are requesting that the building be changed into a two-story fourplex (or stacked flats) with 2 apartments of up to 950 sf on each level. The building would be similar to 3 other stacked -flat buildings (units 9-12, 13-16, and 17-20). This new one, however, would have two stories above ground and, therefore, no upper level entry. (See site plan.) c. CHANGE CONFIGURATION OF UNITS 6 AND 7. The 4 -unit townhouse building approved by the council featured 2 single -story 950 sf units on the ends and 2 two- story 1600 sf units in the middle. Due to member preference for smaller single -story units we have reduced the size of the middle units to 800 sf on one level. (See original and revised townhouse elevations.) 2. CHANGE DESIGN OF STACKED FLATS. The design of the stacked -flat buildings (9- 12, 13-16, and 17-20 as well as the new 27-30 will be changed to feature a shared porch across the lower level. The previous version featured balconies on the upper level and covered porches on the lower level. (See original and revised stacked flat elevations.) 3. INCREASE THE DEPTH OF GARAGES. The increased depth of 2 feet on all garages to provide storage space will be accomplished by moving the garages forward on the parking pads. There will be no increase in the amount of impervious pavement. 4. ADD FLEX SPACE TO THE SIDE OF A GARAGE. Extra space will be provided in one garage for storage. 5. ADD 5 PARKING SPACES. The addition of 3 living units with 5 bedrooms warrants the addition of 5 parking spaces. There will now be 56 parking spaces. 6. FLIP COMMON HOUSE PLAN. The approved design of the Common House will remain unchanged, except flipping it end over end resulting in relocation of the entrances. Appropriate changes have been made to the contours on the site plan. 7. CHANGE SIZE OF SIDEWALK ALONG MILLER AVENUE. Increase the width of the sidewalk along the Miller Avenue side of Prairie Hill from the approved 5 feet to 6 feet to match a new 6 -foot sidewalk the city will install along the Miller Avenue side of Benton Hill Park. CITYOFIC-CITYCLERK 2017 RPR 13 Ftt12:20 Revised elevation COHOUSING AT PRAIRIE HILL SIDE ELEVATION MARCH ll, 2016 ArchitectI Joh F. Shaw AP, INC STACKED FLATS 01 4' 81 12' 16' Revised elevation COHOUSING AT PRAIRIE HILL REAR ELEVATION MARCH ll, 20/6 ArchitectI John F.Shaw STACKED FLATS AL%LEEDAP,INc G' 4' B' t2' 16' SFU SFL ORIGINAL STACKED FLAT ELEVATIONS SFL SIDE ELEVATION SFU IOWA CITY COHOUSING I JOW F.ShM Stacked Flats uq ucow. xc 0' l0' 20' 50' Approved elevations stacked flats REVISED TOWNHOUSE ELEVATIONS F., EN"F EO FRAVJ Revised elevations townhouses LEFT COHOUSING AT PRAIRIE HILLMARCH u, 2015 Archi[ed John F, Shaw TOWNHOMES ua LIED AF. INC 0' 8 16' 24' RIGHT REAR Revised elevations townhouses COHOUSING AT PRAIRIE HILL / MARCH U, 20/6 ArchkedIJohn F.W TOWNHOMES ORIGINAL TOWNHOUSE ELEVATIONS SIDE ELEVATI( IOWA CITY COHOUSING Amhhea I JoM F. Shaw u� uFo,v,xc Townhomes Approved elevations townhouses TH1 0' l0' 20' 30' n J� V� �a Vti F Eg CITY OF IOWA CITY MEMORANDUM Date: May 21, 2015 Previous staff memorandum dated May 21, 2015 To: Planning and Zoning Commission From: Robert Miklo, Senior Planner Re: REZ13-00010 Prairie Hill Co -Housing Background: On October 2, 2014 Commission voted 3-2 to recommend denial of an application submitted by Iowa City Co -Housing for a rezoning of 9.65 acres of land located at Miller Avenue and Benton Street from Medium Density Single -Family (RS -8) zone and Neighborhood Public (P-1) zone to Planned Development Overlay/Medium Density Single - Family (OPD -8) zone for 7.68 acres and Neighborhood Public (P-1) zone for 1.97 acres. Commissioners who voted against the application indicated that their concerns were the proposed private street access to Benton Street and the proposed changes to Benton Hill Park necessary to allow the private street. The applicant, Iowa City Co -Housing, has submitted a new plan that places the proposed dwelling units on the eastern portion of the property and includes Prairie Hill Lane, a private street, which would intersect with Miller Avenue. Development is no longer proposed on the western half of the property and no direct street access is proposed to Benton Street. The exchange of a portion of Benton Hill Park for land adjacent to Miller Avenue to add to the park is no longer proposed. Planned Development Overlay (OPD) Design: The general concept of co -housing with a common house and attached dwelling units located in clusters still applies. Much of the analysis contained on pages 2 to 6 of the previous staff report dated September 18, 2014 (copy attached) applies to the revised plan. Revisions in addition to the relocation of Prairie Hill Lane are discussed below. The plan now includes 33 dwelling units with 14 units contained in duplex style buildings, 4 units in a town house style building, 12 units contained in 4-plex buildings, and 3 units in the common house (the previous plan had a total of 32 units: 26 duplex style units and 6 units in the common house). The attached elevation drawings show the new building designs. Although the unit configuration is different, the building materials and character are similar to the previous proposal. In staffs opinion the proposed buildings are compatible with the neighborhood and the intent of the OPD standards. Four units, label "DU", located adjacent to Miller Avenue have front doors that face an internal court yard and a second door that faces Miller. The backside of the buildings have been designed to present an attractive fagade toward the public street. The dwellings are set back 25 to 35 feet from the property line and landscaping is proposed between the public sidewalk and the dwellings. Pedestrian Access: This plan includes a sidewalk along Miller Avenue adjacent to this property and extending along the east side of Benton Hill Park to Benton Street. The entire sidewalk should be installed with the construction of Prairie Hill, but the City will reimburse the applicant for the construction cost for the portion adjacent to the park. Installation of this sidewalk will provide good pedestrian access for this development and will improve pedestrian access for the larger Miller Orchard Neighborhood. Within the development a sidewalk is provided adjacent to the south and west side of Prairie Hill Lane. Off-street sidewalks provide access to the individual dwelling units. Staff recommends that an additional sidewalk connection be provided to Miller Street to the south of units #9 & 10 May 15, 2015 Page 2 ( (� near the northeast pedestrians from the south before walking corner of the development. Without such a connection, north bound north of part of this development would need to walk about one block north. There is an existing 15 foot wide pedestrian access easement located along the west and north property line. The previous plan proposed relocating that easement to the south property line. The current proposal leaves the easement in its original location. Due to the steep grade, neither location is ideal for a sidewalk, and there does not appear to be good alternative location for a sidewalk to cross this property form west to east. In staff's opinion, leaving the easement in its current location is an acceptable option. Environmentally Sensitive Areas: Compared to the previous plan, less of the steep and critical slopes are proposed to be disturbed. This is because development is no longer proposed in the west half of the property where much of the steep and critical slopes are located. In the revised plan 100% of woodland will be disturbed. This increase, when compared to the previous plan, is due to the removal of portions of Benton Hill Park from the plan and the. development of the property adjacent to Miller Avenue that was to be set aside as park land according to the previous plan. As noted in the September 18 Staff Report, the City, Forester has reviewed the woodlands on this property and found that they consist of undesirable species or species that are susceptible to disease, including Ash and Walnut, and the woodlands have not been properly maintained. Based on the amount of clearing, the sensitive areas regulations require the planting of replacement trees on this property and/or on public lands approved by the City Forester. The OPD plan includes a landscape plan showing the location of proposed trees. To assure appropriate species are properly located, staff recommends that the final landscape plan be approved by the City Forester. Storm Water Management: The plan includes a series of rain gardens adjacent to and among the dwellings west of Miller Avenue. A large storm water basin is proposed in the southeast corner of the property. The City Engineer is reviewing recently submitted storm water management plans. These plans should be approved by the City Engineer prior to the Planning and Zoning Commission voting on this application. Summary: The revised plan does not include direct street access to Benton Street or significant modifications to Benton Hill Park. In staffs opinion the proposed buildings are an attractive design and would be made of quality building materials in an effort to support sustainable development. The proposed co -housing community will be a unique form of housing that has had success in other communities. Its construction in the Miller -Orchard Neighborhood would support the City's efforts to provide a variety of housing types within the neighborhood and is consistent with the intent of the OPD section of the code. Storm water management and minor site plan issues must be resolved prior to the Commission voting on this application. STAFF RECOMMENDATION: Staff recommends that this application be deferred pending resolution of deficiencies and discrepancies noted below. Upon resolution of these items, staff recommends approval of REZ13-00010 a rezoning of 7.8 - acres of land located on the west side of Miller Avenue south of Benton Street from Medium Density Single -Family (RS -8) zone to Planned Development Overlay/Medium Density Single - Family (OPD -8) zone to allow Prairie Hill a with 33 -unit co -housing development subject to 1) the landscaping and tree replacement plan to be reviewed and approved by the City Forester and; 2) at the time of final plan approval the development agreement will address the construction of the sidewalk adjacent to Benton Hill Park. May 15, 2015 Page 3 DEFICIENCIES AND DISCREPANCIES: 1. Storm water management plans must be approved by the City Engineer 2. A ten foot wide buffer must be provided between the northwest side of the common house and the parking lot. 3. The sidewalk on the south side of Prairie Hill Lane at its intersection with Miller Avenue should be moved away from the curb to provide room for snow storage and a pedestrian buffer. 4. The water line along the west side of Prairie Hill Lane should be located to provide room for street trees. 5. A sidewalk should be provided between the northeast corner of the development and Miller Avenue. ATTACHMENTS: 1. Location map 2. Preliminary OPD Sensitive Areas Development Plan 3. Applicant's statement 4. Building elevation drawings 5. Previous staff report dated September 18, 2014 Approved by: John Yapp, Developme Department of Neighbc vices Coordinator,. and Development Services Previous staff report dated September 18, 2014 STAFF REPORT To: Planning & Zoning Commission Prepared by: Robert Miklo Item: REZ13-00010 & SUB13-00008 Date: September 18, 2014 Prairie Hill GENERAL INFORMATION: Applicant: Iowa City Co -Housing P.O. Box 926 Iowa City, IA 52244 blbailey52@gmail.com Phone: 319-530-4049 Requested Action: Rezoning from Medium Density Single Family Residential (RS -8) and Public (P-1) to Planned Development Overlay (OPD -8) and P-1 Preliminary Plat approval. Purpose: To allow a 32 -unit co -housing (condominium) development with shared open space and public park land. Location: Miller Avenue and Benton Street Size: 9.65 acres Existing Land Use and Zoning: Vacant, park and open space zoned RS -8 and P-1 Surrounding Land Use and Zoning: North: Residential, Roosevelt School - RS -8 & P-1 South: Commercial - CC -2 East: Residential RS -8 West: Residential RS -8 Comprehensive Plan: Southwest District Plan — medium density single family development with the potential for an OPD to allow clustering. Neighborhood Open Space District: SW -4 File Date: September 10, 2014 45 Day Limitation Period: October 24, 2014 BACKGROUND INFORMATION: The subject property is southwest of the intersection of Benton Street and Miller Avenue. Currently the property is vacant. The surrounding area consists of residential homes varying from single family to apartments. The Theodore Roosevelt Education Center (former Roosevelt Elementary School) is located to the north. Commercial areas are located to the south of the 2 PRE i JS STAFF REPORT property along Highway 1 The applicant, Iowa City Co -Housing, is requesting a rezoning from Medium Density Single Family Residential (RS -8) and Public (P-1) to Planned Development Overlay (OPD -8) for 7.68 acres and P-1 for 1.97 acres and preliminary plat approval of Prairie Hill. The rezoning would allow for a 32 - unit condominium development with units 26 units clustered in duplex style townhouses. The plan also includes a community building with common facilities and 6 apartments. Six of the duplexes would have garages incorporated into the units. There would be 19 parking spaces in five garages and 29 surface parking spaces. The plan includes relatively large areas of open space, some of which would be dedicated to the City for extension of Benton Hill Park in exchange for land that would provide private street access to Benton Street. The applicant requests access to the development via Benton Street on land currently owned by the City as part of Benton Hill Park. A conservation and public access easement would preserve much of this existing open space for public use. In exchange for acquiring 1.8 acres of park land the applicant has offered to dedicate 1.97 acres of land on the southeast end of the property for park use. The property does contain sensitive features and the applicant has submitted a Sensitive Areas Development Plan and a subdivision called Prairie Hill. The subdivision would create the Lot 1, a 7.68 acre tract that would contain the development, and Outlot A (1.97 acres) which would be dedicated to the City for addition to Benton Hill Park. The property would be developed by Iowa City Cohousing. A cohousing community is a type of intentional community composed of private homes supplemented by shared facilities. Cohousing is designed with the intention of facilitating interaction among neighbors for social, practical, economic and environmental benefits. The community is planned, owned and managed by the residents — who also share activities which may include cooking, dining, child care, gardening, and governance of the community. Common facilities are proposed to include a kitchen, dining room, laundry, guest rooms, and recreational features. The attached statement labeled 'The Cohousing Concept" (Exhibit A) provided by the applicant contains a more detailed description of Co -housing. The applicant has used the "Good Neighbor Policy" and has conducted two neighborhood meetings as discussed in Exhibit A. ANALYSIS: Current Zoning: The current zoning of the property is for Medium Density Single Family Residential (RS -8), which allows single family homes on lots with a minimum of 5,000 square feet of lot area and a minimum lot width of 45 feet. Duplexes are allowed on comer lots. Nonresidential uses, such as religious institutions and day care centers, may be allowed by special exception. The applicant has submitted the attached plan (Exhibit B) showing how the property could be developed with at least 32 single-family lots within a conventional subdivision. Proposed Zoning: The applicant requests rezoning to a Planned Development Overlay Zone (OPD -8), which permits flexibility in uses and design when conventional development is inappropriate and changes are not contrary to the Comprehensive Plan. The OPD zone encourages the best use of the existing landscape and infill development. The applicant requests approval of an OPD rezoning to allow dwelling units to be clustered on the property so that less grading will be required and that common open space may be set aside for use of the residents and the general public. The clustering will also help achieve a physical environment that is conducive to the formation of a community as envision in co -housing developments. The details of the OPD plan are discussed below under the OPD Plan. PCD1Sleft R6PDMVez13-00010, SUMMON preide MlSA= 3 PfSVIOUS STAFF REPORT Compliance with Comprehensive Plan: The property falls within the Southwest District Plan, Roosevelt subarea in the Miller -Orchard Neighborhood (pages 25 to 36 and Appendix C of the Southwest District Plan). The District Plan encourages the preservation of the existing housing and encourages infill development that is compatible with the neighborhood; and indicates that the area lacks pedestrian links within and between surrounding properties. This concern has been partially addressed by recently constructed sidewalks/trail along Miller Avenue, Hudson Avenue, Orchard Street and Highway 1. The District Plan notes that the existing RS -8 zoning is appropriate for this property, but that a Planned Development Overlay (OPD) zone would allow the clustering of housing units to encourage the best use of the existing topography. The plan states: "Future development of the vacant land along Miller Avenue should be carefully considered with regards to efforts to stabilize and revitalize the Miller -Orchard Neighborhood." In staffs view the proposal complies with the goals stated in the Comprehensive Plan as it would bring a new form of owner occupied housing into the Miller -Orchard Neighborhood and would compliment the City's and the Neighborhood's efforts to improve the housing stock in the area. Planned Development Overlay (OPD) Pian: To achieve the cluster plan the applicant is requesting several modifications of the zoning and subdivision regulations including: 1) One common lot as opposed to individual lots as required in RS -8 zones. 2) Multiple duplex style dwellings on one common lot (which otherwise are limited to comer lots in the RS -8 zone). 3) A common house that would contain a common kitchen and dining room and 6 apartments. 4) A private street that has a 20 -foot wide pavement within a 35 -foot wide easement, rather than the minimum 26 -feet wide pavement within a 60 -foot wide right-of-way required for public streets. 5) Waiver of the requirement of sidewalks in certain locations. 7) A non-standard cul-de-sac design. Four general standards must be met when the applicant requests waivers of underlying zoning and subdivision regulations as discussed below: 1. The density and design of the Planned Development will be compatible with and/or complementary to adjacent development in terms of land use, building mass and scale, relative amount of open space, traffic circulation and general layout. In staffs opinion the proposal meets the standard pertaining to density. The proposed density of 32 units on 7.68 acres equals approximately 4.5 units per acre. Historically RS -8 zoned subdivisions have developed at approximately 5 units per acre although some have achieved 8 units per acre. In staffs opinion the proposal is also compatible with the neighborhood in terms of land use. The Miller Orchard neighborhood contains a mix of single family homes and duplexes. The area to the west contains a significant number of multifamily buildings. This proposal contains mostly duplex style dwellings and only six apartments in the common house. This combination of units provides for clustering and the preservation of large areas of open space and would support the community -oriented environment desired in co -housing developments. The building mass and scale for most of the buildings is similar to many of the houses in the PCD0a f ReporlsXmz13-0001D, SUM -00008 Pretrle hills.doo T P(P-�VIOUS STAFF REPORT Miller Orchard Neighborhood and as discussed in number 3 below would likely have less of an adverse effect on the adjacent properties than a conventional development. Traffic from this proposal will be no more and may actually be less than the amount of traffic that would be generated from a conventional subdivision. 2. The development will not overburden existing streets and utilities. The applicant is proposing a driveway access to Benton Street, an arterial street which carries approximately 11,000 vehicles per day in this vicinity. A 2 -lane arterial street with adequate access control has a capacity of 15,000 vehicles per day. Transportation Planners estimate that this proposed development will generate approximately 200 vehicle trips per day. This is a small percentage of the existing traffic on Benton Street and will not overburden the street. Area residents have expressed concerns about sight distance on Benton Street. The proposed private drive access is discussed in the attached memo from Kent Ralston, Transportation Planner (Exhibit C). As detailed in the memo the proposed access point meets standards for sight stopping distance and there is not a high collision history in this area. Therefore the proposed driveway location is found to be acceptable. There are currently no sidewalks on the portion of Benton Street adjacent to the property because of steep slopes and topological features. To address pedestrian access to the development, an alternative trail is proposed through Benton Hill Park, connecting the development with sidewalks continuing on Benton Street east of Miller Avenue. As noted in the Southwest District Plan, pedestrian connectivity is a concern in this neighborhood. When the Hawk Ridge (formerly the Lodge) student housing complex was developed in 2003, there was a requirement for a pedestrian easement over the subject property to provide for a potential trail connection to Benton Hill Park. The location of that easement is in an area that is too steep for a trail connection. The applicant proposes to relocate the easement to the south side of lot 1. The grading that will be done for this project will provide for a better location for a future trail. Municipal water and sanitary sewer services are adequate to serve the proposed development. Stormwater will be directed to a basin proposed in the southeast corner of Lot 1. A berm is proposed along the south property line to prevent stormwater from flowing onto the properties to the south. The City Engineer has reviewed the stormwater management plan and has approved it in concept, although some construction details may need modification. 3. The development will not adversely affect views, light and air, property values and privacy of neighboring properties any more than would a conventional development. In staffs opinion the application meets this standard. The existing RS -8 zoning on this property allows single family homes to be as tall as 35 feet. The applicant proposes to construct cottage style duplexes that would generally be less than 20 feet tall. Although some of the units will have walkout lower levels, even those will be 25 feet or less in height. The common house is proposed to be approximately 30 feet tall. In addition to being shorter than what the RS -8 zone allows, the buildings would be built downhill from or at a lower elevation than the nearest homes. This combination of height and lower PCD%Isff Rep0rtsV0Z13-00010, 4013-00003 pmine MUSA= 5 F"EVIOUS STAFF REPORT grade will result in no more, or even a less adverse effect than conventional development. 4. The combination of land uses and building types and any variation from the underlying zoning requirements or from City street standards will be in the public interest, in harmony with the purposes of this Title, and with other building regulations of the City. The applicant is proposing to cluster 32 units into attached dwellings rather than single family houses, a private street which is 6 feet narrower than the minimum street standard and modification of front setbacks for 3 units and the rear setback for 1 of the units. The proposed clustering and private street would further the community based design desired in co -housing by emphasizing pedestrian traffic on an internal sidewalk network. Primary pedestrian access to the larger community would be via a trail that would extend through Benton Hill Park. The applicant has agreed to install portions of the trail within the park and to provide lighting to help assure pedestrian and bicycle safety. The applicant has submitted templates showing that as designed the private street will be able to accommodate fire trucks and other emergency vehicles. In staffs opinion the proposed buildings are an attractive design and would be made of quality building materials in an effort to support sustainable development. The proposed co -housing community will be a unique form of housing that has had success in other communities. Its construction in the Miller -Orchard Neighborhood would support the City's efforts to provide a variety of housing types within the neighborhood and therefore be in the public interest and in harmony with the zoning code. Environmentally Sensitive Areas: The property contains steep and critical slopes and woodland covering approximately 3.2 acres. The site slopes from a low point adjacent to Miller Avenue to a high point in the western portion of the property. The applicant has provided a soils study indicating that the property has been graded or filled to create the current condition. The applicant proposes to grade the slopes (100% of the critical slopes and 94% of the steep slope) to allow for creation of more gradual and stable slopes. Because of the amount of grading proposed the Zoning Code requires level II sensitive areas review (Planning and Zoning Commission Review and City Council approval). A level If sensitive areas review is also required when more than 50% of a woodland is proposed for removal. In this case the plan proposes that approximately 37.6% of the woodland be removed. An additional 24.6% of the woodland is located within the 50 foot buffer area and thus could be affected by construction activity and must be counted as being impacted by the proposed development. Based on the amount of clearing, the sensitive areas regulations require the planting of 127 replacement trees on this property or on public lands approved by the City Forester. The City Forester has reviewed the woodlands on this property and found that the areas that are proposed to be removed consist of undesirable species or species that are susceptible to disease, including Ash and Walnut, and the woodlands have not been properly maintained. The OPD plan includes a landscape plan showing the location of proposed trees, however individual species are not identified. To assure appropriate species are properly located, staff recommends that the final landscape plan be approved by the City Forester. As noted above a considerable amount of grading and woodland removal is proposed for this development. However, due to the condition of the current slopes and the woodlands on this property, the long-term slope stability and woodland health after development should be an PCU1Statf Roportc4ez13-00010, eub13-00003 prelrie hllls.d= 6 Pr -MOUS STAFF REPORT improvement when compared to what exists today Neighborhood parkland or fees in lieu of. Neighborhood open space requirements for this property were satisfied with the approval of the Ruppert Hills final plat in 2003. That plat included the dedication of Outlot A Rupport Hills, which later became the eastern portion of Benton Hill Park. The Parks and Recreation Commission has reviewed the proposed trade of land of the western portion of Benton Hill Park for Outlot A. The Parks Department has determined that the topography of Outlot A is more conducive to use as a neighborhood park and supports the trade. Infrastructure fees: A water main extension fee of $415 per acre applies. There are no addtianal infrastructure fees in this neighborhood. STAFF RECOMMENDATION: Staff recommends approval of REZ13-00010 and SUB13-00008 a rezoning of 9.65 -acres located at Miller Avenue and Benton Street from Medium Density Single -Family (RS -8) and Neighborhood Public (P-1) zone to Planned Development Overlay/Medium Density Single - Family (OPD -8) zone for 7.68 -acres and Neighborhood Public (P-1) zone for 1.97 -acres, and a preliminary plat of Prairie Hill, a 2 -lot residential subdivision, subject to 1) the landscaping plan to be reviewed and approved by the City Forester, 2) City Engineer approval of the stormwater management plan and 3) the applicant installing the offsite improvements to the trail and lighting in Benton Hill Park. ATTACHMENTS: 1. Location Map 2. Preliminary Plat and Sensitive Areas Development Plan 3. Exhibit A Co -housing Concept Narrative 4. Exhibit B showing conventional subdivision 5. Exhibit C Memo from Kent Ralston, Transportation Planner 6. Building elevations 7. Correspondence Approved by: / / -r� John Yapp, Development Services Coordinator, Department of Neighborhood and Development Services MIStaff RepWSVeZ13-00010, euh13-00008 PM[ ie hills.doc MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION MAY 4, 2017 — 7:00 PM — FORMAL MEETING E M M A J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Carolyn Dyer, Ann Freerks, Mike Hensch, Phoebe Martin, Max Parsons, Mark Signs, Jodie Theobald MEMBERS ABSENT: None STAFF PRESENT: Sara Hektoen, Bob Miklo OTHERS PRESENT: Del Holland RECOMMENDATIONS TO CITY COUNCIL: By a vote of 6-0 (Dyer recused) the Commission recommends approval of REZ17-00007 an application submitted by Iowa City Cohousing LLC for a rezoning of approximately 7.8 -acres to amend the preliminary OPD Plan to add three additional units to Prairie Hill, a 36 -unit cohousing development located west of Miller Avenue, south of Benton Street. By a vote of 7-0 the Commission recommends approval of SUB17-00004, an application for a preliminary and final plat of Little Ash Subdivision, a 1 -lot, 21.48 -acre residential subdivision located on the east side of Maier Avenue. By a vote of 7-0 the Commission recommends the City forward a letter to the Johnson County Board of Adjustment indicating that the City has no objection to the conditional use permit. CALL TO ORDER: Freerks called the meeting to order at 7:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. REZONING ITEM REZ17-00007: Discussion of an application submitted by Iowa City Cohousing LLC for a rezoning of approximately 7.8 -acres to amend the preliminary OPD Plan to add three additional units to Prairie Hill, a 36 -unit cohousing development located west of Miller Avenue, south of Benton Street. Dyer recused herself and left the room during this discussion as she is on the Board of the Iowa City Cohousing LLC. Planning and Zoning Commission May 4, 2017—Formal Meeting Page 2 of 5 Miklo noted that the Commission should all be familiar with this property, it is located on the west side of Miller Avenue on the south side of Benton Street. The surrounding properties for the most part are zoned RS -8, and to the north is Benton Hill Park which is zoned Public and to the south is zoned Community Commercial. Miklo explained that the planned development overlay that was approved included a private drive/street to serve 33 cohousing units. The proposal is to amend that plan to add one additional unit to the Common House (near the center of the development) and add two units to what was originally a duplex by adding a second floor. Miklo showed drawings of the previous proposal and then drawings of the new proposal. The new proposal also includes some minor design changes to other aspects of the plan, for example the townhouses will no longer be two stories, and they will be single floor units (but basically the same footprint). The garages would be slightly larger (extended by two feet) and there would be additional parking to accommodate the three additional units. In terms of density Miklo noted that this does fall in the RS -8 density, it is just under five units per acre, which is typical for RS -8 development. Staff is recommending approval of the amendment to the plan to allow the three additional units and design changes. Freerks asked if there was room for street trees along Miller Avenue. Miklo stated that yes there will be street trees along Miller Avenue. Freerks opened the public hearing. Del Holland , 1701 East Court Street, came forward representing the applicant to answer any questions. Freerks closed the public hearing Hensch moved to approve REZ17-00007 an application submitted by Iowa City Cohousing LLC for a rezoning of approximately 7.8 -acres to amend the preliminary OPD Plan to add three additional units to Prairie Hill, a 36 -unit cohousing development located west of Miller Avenue, south of Benton Street. Parsons seconded the motion. Hektoen noted that this property is currently subject to a Conditional Zoning Agreement and those same conditions will remain in place. Miklo confirmed those would continue and not change. Freerks noted this is an exciting project that she is eager to see and the changes make sense A vote was taken and the motion carried 6-0. DEVELOPMENT ITEM SUB17-00004: Discussion of an application submitted by Brian and Laura Wolf for a preliminary and final plat of Little Ash Subdivision, a 21.48 -acre, 1 -lot residential subdivision located on Maier Avenue SW in Fringe Area C. r 1 CITY OF IOWA CI �r 7`1 COUNCIL ACTION REPO 4ei;2) May 16, 2017 Resolution determining the necessity of and setting dates of a consultation and Public Hearing on a proposed Riverside Drive Urban Renewal Plan, Amendment No. 3 in the City of Iowa City, Iowa Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Simon Andrew, Assistant to the City Manager Fiscal Impact: No impact Recommendations: Staff: Approval Commission: n/a Attachments: 1) Resolution of Necessity 2) Riverside Drive Urban Renewal Plan, Amendment #3 Executive Summary: A Resolution of Necessity initiates the legislative process for the City to engage in certain urban renewal projects in urban renewal areas. Following the adoption of a Resolution of Necessity, the City holds a consultation with the other local taxing jurisdictions and a public hearing before a vote on whether or not to adopt the proposed plan. Background / Analysis: The Riverside Drive Urban Renewal Area was created in 2011 following the flood of 2008. It was originally named Riverfront Crossings Urban Renewal Area, and renamed (Amendment #1) in 2012 to clear up confusion with the greater Riverfront Crossings area across the river to the east. Amendment #3 of the Riverside Drive Urban Renewal Area a) enables the City to elect to use tax increment financing created by new value in the district for four public improvement projects aligned with plan goals, and b) adds the area known as the Orchard Subdistrict from the Riverfront Crossings Master Plan to the Riverside Drive Urban Renewal Area. The four projects include streetscape improvements on Riverside Drive, west riverbank stabilization and trail project, building the Iowa River Trail from Benton to Sturgis Park, and the intersection signalization of Myrtle and Riverside Drive. The streetscape improvements in the Riverside Drive corridor will improve the attractiveness of the neighborhood and encourage investment which will increase the property tax base of the district. The trail and signalization projects will enhance walkability and safety for all who traverse the neighborhood. Discussion of Solution: The Resolution of Necessity simply starts the process for the consideration of projects to be funded by the tax increment created by new property value in the district. The next step is to r CITY OF IOWA CITY ,Z.- �� COUNCIL ACTION REPORT hold a consultation with representatives of the School District and the County. The consultation is scheduled for June 1, 2017 at 11:30 a.m. in the City Manager's Conference Room. The final step is to hold a Public Hearing, which is scheduled for June 20, 2017 at 7:00 pm in Emma Harvat Hall. Recommendation: Staff recommends approval of the Resolution of Necessity to consider Amendment #3 to the Riverside Drive Urban Renewal Plan. NOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City Council of Iowa City, Iowa, at 7:00 p.m. on the 16th day of May, 2017, in Emma J. Harvat 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 Clerk; at which hearing the Council will consider: 1. A RESOLUTION APPROVING AN AMENDMENT TO THE COMPREHENSIVE PLAN TO ADDRESS MITIGATING IMPACT OF REDEVELOPMENT ON EXISTING TENANTS OF MULTI -FAMILY BUILDINGS. (CPA17-00001) 2. AN ORDINANCE CONDITIONALLY REZONING APPROXIMATELY 3,440 SQUARE FEET OF PROPERTY LOCATED 812 S. SUMMIT STREET FROM LOW DENSITY SINGLE FAMILY RESIDENTIAL WITH HISTORIC DISTRICT OVERLAY (RS-5/OHD) ZONE TO NEIGHBORHOOD COMMERCIAL WITH HISTORIC DISTRICT OVERLAY (CN-1/OHD). (REZ17-00006) Copies of the proposed ordinances and resolutions are on file for public examination in the office of the City Clerk, City Hall, Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above-mentioned time and place. Julie Voparil, DEPUTY CITY CLERK Iowa City City Council May 16, 2017 Rezoning Item REZ17-00006 Discussion of an application submitted by Deluxe Bakery/ Jamie Powers for a rezoning from Low Density Single Family Residential with a Historic District Overlay (RS-5/OHD) zone to Neighborhood Commercial with a Historic District Overlay (CN-1/OHD) zone for approximately 3,440 square feet of property located at 812 S. Summit Street. i Mlr """ {� �.y�r, yy �+ X• ,�. �� i n Y +c a 4F 't i illi: t. p. At f NNW AV - k pap I. ar iii9 1j i Summary • Comprehensive Plan supports neighborhood commercial within convenient walking distance of residents • The property is in the Summit Street Historic District, therefore the design of any additions will be controlled to ensure compatibility with the historic district • The non -conforming parking will limit the types of businesses that may locate in the structure over time • Restricting hours of operation, and restricting the sale of alcohol and tobacco, helps ensure the commercial use of the property remains neighborhood -serving and compatible with residential living To: Planning and Zoning Commission Item: REZ17-00006 812 S. Summit St. GENERAL INFORMATION: Applicant and Owner: STAFF REPORT Prepared by: Bob Miklo and Sarah Walz Date: April 20, 2017 Jamie Powers 812 S. Summit Street Iowa City, IA 52240 319-338-5000 Jamie.powers@deluxeiowa.com rTrfrrrml L.Laj Requested Action: Rezone from Low Density Single Family Residential Historic District Overlay (RS-5/OHD) Zone to Neighborhood Commercial Historic District Overlay (CN-1/OHD) Zone Purpose: Location: Size: Existing Land Use and Zoning Surrounding Land Use and Zoning: File Date: 45 Day Limitation Period: BACKGROUND INFORMATION: To allow for expansion of the existing retail use 812 S. Summit Street 3,440 square feet Retail use (bakery) and upper floor residential North: Residential (RS-5/OHD) South: Residential (RS-5/OHD) East: Residential (RS-5/OHD) West: Residential (RS-5/OHD) March 30, 2017 May 14, 2017 The applicant, Jamie Powers, is seeking a rezoning from Low Density Single -Family Residential with a Historic Preservation Overlay (RS-5/OHD) to Neighborhood Commercial with a Historic Preservation Overlay (CN-1/OHD) for a 3,440 square foot property located at 812 South Summit Street. The property includes a two-story mixed-use building, with the bakery on the ground level and an apartment on the second level. The building was originally constructed c.1900 as a front -gabled American Vernacular house. According to Irving Weber, in the 1910's owner Harry Smith began a grocery in the house and later added the "boomtown" storefront that was built beside the 2 house. Having been established as a retail business prior to the adoption of a zoning code by the City in the mid -1920s, the property has continued to be used for commercial purposes on the ground floor throughout its existence. Therefore, the retail use of the property is considered a legal non -conforming use. As a non -conforming use it may continue as is, or be converted to another use within the same use category, but cannot be expanded in size. The applicant wishes to build a 7' x 15' addition on the north side of the building to allow the relocation of the stairway to the second floor apartment, and to improve access for persons with disabilities. The relocation of the stairway will also create more ground floor area for use by the bakery. Such an expansion is not permitted for a non -conforming use. Therefore the applicant has requested the property be rezoned to CNA to make the bakery a conforming use. Because the property is located within a historic district, any changes to the exterior of the building require approval of the Historic Preservation Commission. The applicant has indicated that she has used the "Good Neighbor Policy" and will hold an informational open house at the bakery on April 14. ANALYSIS: Current zoning: The Low Density Single -Family Residential Zone (RS -5) is primarily intended to provide housing opportunities for individual households. The regulations are intended to create, maintain, and promote livable neighborhoods. The regulations allow for some flexibility of dwelling types to provide housing opportunities for a variety of household types. This zone also allows for some nonresidential uses that contribute to the livability of residential neighborhoods, such as parks, schools, religious institutions, and daycare facilities. Related nonresidential uses and structures should be planned and designed to be compatible with the character, scale, and pattern of the residential development. As noted the retail bakery is considered a legal non -conforming use in the zone and may continue to operate but it may not be expanded. Under the current zoning, if the building were to be destroyed, it could only be replaced by a single-family house or another use permitted in the RS -5 zone. The property is included in the Summit Street Historic District. Changes to the exterior of the building require review and approval by the Historic Preservation Commission. The Historic Overlay zone will still apply if the underlying zone is changed to CN -1. Proposed zoning: The purpose of the Neighborhood Commercial Zone (CN -1) is to promote a unified grouping of small-scale retail sales and personal service uses in a neighborhood shopping area; encourage neighborhood shopping areas that are conveniently located and that primarily serve nearby residential neighborhoods; promote pedestrian -oriented development at an intensity level that is compatible with surrounding residential areas; and promote principles of site design, building articulation, scale and proportion that are typical of traditional main street design. Allowed uses are restricted in size to promote smaller, neighborhood -serving businesses and to limit adverse impacts on nearby residential areas. CNA Zones are generally located with direct access to an arterial street. Uses allowed in the zone include retail sales, general and medical office, personal service, eating and drinking establishments, hospitality, daycare, specialized instruction. However, as noted below some of the uses normally allowed in the CNA zone will not be allowed on this property, even if it is rezoned, due to the limited number of parking spaces. Parking: In addition to being a non -conforming use, the property is also non -conforming regarding parking. The current uses require 4.69 spaces based on the 1 -bedroom apartment and the amount of floor area for the retail bakery (1 space per 300 square feet of floor area). There are two parking spaces provided to the rear of the building, which will not change with the proposed modifications to the structure. The ability to satisfy the minimum parking requirement does not change with the rezoning—there is simply not enough space on the property—and thus the parking will remain non -conforming. If the use of the commercial property changes over time, the parking will be grandfathered in with the 4.69 spaces. This control on parking will also limit the types and intensity of businesses (for example: eating and drinking establishments require 1 parking space per 150 square feet of floor area and therefore would not be allowed). Comprehensive Plan: The Comprehensive Plan encourages sustainable and walkable neighborhoods and envisions neighborhood commercial uses as contributing to the quality of life within neighborhoods. The Plan states: Neighborhood commercial areas can provide a focal point and gathering place for a neighborhood. The businesses within a neighborhood commercial center should provide shopping opportunities within convenient walking distance for the residents in the immediate area. The design of the neighborhood commercial center should have a pedestrian orientation with the stores placed close to the street, but with sufficient open space to allow for outdoor cafes and patios or landscaping. Parking should be located to the rear and sides of stores with additional parking on the street. Incorporating apartments above shops and reserving public open space are two ways to foster additional activity and vitality in a neighborhood commercial area. (IC2030: Comprehensive Plan Update page 21.) In staff's view the current use conforms to the vision for Neighborhood Commercial described in the Comprehensive Plan. In addition to serving as a retail bakery, the business provides a gathering space for neighborhood residents. The property's physical design is similar to a small main street shop, with the building being close to the street, it includes a small outdoor seating area, and parking is at the back of the property, in conformance with site design standards in the code. The Central District Plan also acknowledges a number of properties originally developed with buildings that served as neighborhood grocery stores and have remained, over time as non- conforming commercial uses. These include the Design Ranch Building on Dodge Street, the former Seaton's Meat Market, Watt's Grocery on Muscatine, and Deluxe Bakery on South Summit Street. The former New Pioneer Co-op site (more recently Za-Za's on Bowery Street) and the Akar Architects office on Rochester Avenue also continue to serve as commercial uses within a residential zone. Some of these properties have been granted special exceptions or historic preservation designations to ensure preservation the buildings themselves as well as their opportunity to function as commercial uses. For this reason the current zoning code includes a number of provisions to encourage the continued use of these unique properties provided that their use does not disrupt or detract from the residential character of surrounding neighborhoods. The Economic Development chapter of the Comprehensive Plan encourages small local businesses, such as Deluxe Bakery. Economic goals and strategies include: • Establish strategies to retain and encourage growth of existing locally -owned businesses. • Recognize that small, and independently owned, local businesses are integral to Iowa City's "brand" and sense of identity. (IC2030: Comprehensive Plan Update page 30.) 4 Based on these policies and the current conditions evident at 812 S. Summit Street, staff finds that rezoning of the property to CN -1 (with the historic district overlay zoning designation) would be in conformance the Comprehensive Plan. Compatibility with neighborhood: The bakery has operated in this location for approximately 15 years. Prior to that, the property contained other retail businesses, such as a grocery store, art gallery, and a yarn and craft shop, all as grandfathered non -conforming uses. These uses have proved to be compatible with the surrounding residential neighborhood. And as noted in the Comprehensive Plan, such uses often enhance the quality of life in a neighborhood. If the change to the CNA zone is approved, the property will be allowed to make the small proposed expansion and improve access for persons with disabilities. The non -conforming parking will limit the sorts of businesses that may locate here should the use change over time. The historic preservation overlay zone will control the design of any exterior changes to the building. Given the small size of the lot and its proximity to adjacent single-family uses, staff recommends two conditions to control certain aspects of allowed uses that may not be compatible with the surrounding single-family residential neighborhood: restricting hours that the business is open to the public to between 7:00 am and 9:00 pm, and no sales of alcohol or tobacco on the property. These restrictions are, in the view of staff, appropriate in order to ensure the commercial use of the property remains neighborhood serving and compatible with nearby residential properties and to minimize activities that may be injurious to the use and enjoyment of residential uses in the immediate vicinity. Similar restrictions were put in place for the property at 518 Bowery Street (another commercial use within a residential zone) through the special exception process. The applicant has been informed of these conditions and is agreeable to them. Traffic implications: The property may continue to operate as a retail commercial use in the RS -5 zone. Rezoning of the property to CNA will allow the commercial use to increase slightly in size, but the intensity of use will be similar to the existing bakery and will not likely generate additional traffic when compared to the current use. If the bakery closes, the other uses allowed in the CNA zone are likely to generate similar levels of traffic. Although no specific data is available, observations indicate that a significant number of customers walk or bike to this location. Restricting night time hours of operation will help to assure that traffic from the business uses on this property are not disruptive of the neighborhood in the future. STAFF RECOMMENDATION: Staff recommends approval of REZ17-00006, a rezoning of property at 812 S. Summit Street from Low Density Single Family Residential/Historic Preservation Overlay (RS-5/OHP) zone to Neighborhood Commercial/Historic Preservation Overlay (CN-1/OHP) zone subject to a Conditional Zoning Agreement restricting hours that the business is open to the public to between 7:00 am and 9:00 pm, and prohibiting the sale of alcohol and tobacco. ATTACHMENTS 1. Location Map 2. Application materials Approved by: / a/L / v John Yapp, Developr6ent Sefvices Coordinator Department of Neighborhood and Development Services An application submitted by Jamie Powers, owner of Deluxe Bakery, to rezone property at 812 S. Summit Street from Low Density Single Family Historic District Overlay(RS-5/OHD) to Neighborhood Commercial Historic District Overlay (CN-1/OHD). CITY OF IOWA CITY I am interested in changing the location of 812 S.Summit St. to a Commercial Neighborhood use. This change will allow for a more efficient and safe work space for the employees and guests. It will be safer for all involved by creating a more streamlined workspace for bakers and creating a new entrance which flows with all abilities. After 15 years of operation, DeLuxe Bakery has proven that a commercial gathering space, much like what was exemplified from 1979 and before, can enrich, solidify and contribute to locking in as a neighborhood gathering place. After reviewing various plans, changing this location to commercial will allow for the best handicap access plans to move forward. Thank you so much for your help All the best, Jamie Planning and Zoning Commission April 20, 2017—Formal Meeting Page 5 of 10 Hensch asked if these amendments will have any effect on the Good Neighbor Policy. Freerks said no, no Commission action is required for that Policy. Yapp confirmed that was the case, but the Commission's comments will be reflected in the minutes which are read by City Council. Freerks stated she feels this is a wonderful plan but has some pause with some of the little details. "Seek accommodations" still resonates as a concern for her and feels it should be fair, consistent and predictable for all (developers and the community). She would prefer to have more detail written to draw out the expectations. Signs asked what the next step will be. If there Commission were to want to specify some things that should happen. Yapp stated that the exact shape, size and detail of a transition plan will be codified in the site plan chapter. The Comprehensive Plan statement is meant to be broad language. The Commission does have the ability to amend the language on the floor if they so choose. Theobald stated she does not have a problem with the proposed language, and sees the benefit to both parties to having it vague in the Comprehensive Plan because each case is different. Perhaps setting a minimum standard would work. Freerks noted she just wanted the conversation to happen and have it as part of the minutes. Hensch agreed, this is a good first step and if in the future this first step isn't enough then it can be revisited to tighten the language up. Theobald also agrees with Dyer's comments regarding small businesses and questions when that conversation would be appropriate. Signs agreed and said the Dubuque Street incident was a fiasco, and wondered if they could include commercial properties in this language. Hektoen said that would be beyond the scope of what Staff has addressed in their proposed amendments this evening, so the Commission would want consider that at another time. She also noted that site reviews differ in many contexts. Parsons noted it is a fact of life that every structure has to get renovated or upgraded at some point and every situation is so unique and he is okay with the more vague language as a first step. It can be revisited and tightened up if problems do arise. A vote was taken and the motion passed 6-0 (Martin absent). REZONING ITEM (REZ17-00006): Discussion of an application submitted by Deluxe Bakery / Jamie Powers for a rezoning from Low Density Single Family Residential with Historic District Overlay (RS-5/OHD) zone to Neighborhood Commercial with Historic District Overlay (CN-1/OHD) zone for approximately 3,440 square feet of property located 812 S. Summit Street. Miklo stated the property is located on Summit Street in a residential neighborhood. The building was likely built around 1900 and converted to a grocery store about 1910. The City first adopted zoning in the 1920's and this property was zoned residential at that time, but because Planning and Zoning Commission April 20, 2017 — Formal Meeting Page 6 of 10 the business was already established it was grandfathered in as a legal non-conforming use and allowed to continue. The property has continued to be used for commercial purposes in some form of retail since that time, so it is perfectly legal to have a retail use in this location. However the non-conforming provisions of the Ordinance do not allow an expansion of a non- conforming use and therefore the business can continue as is but cannot make significant or even minor changes in its footprint. The applicant is requesting that the property be rezoned to Neighborhood Commercial (CN-1) in order to allow an addition to the property. Miklo showed some photographs of the building and surroundings. The proposal is to add a new stair-tower entranceway to provide access to the apartment on the second floor. The remodeling of the interior stairway would create additional space for the bakery. Miklo also stated that any changes to the exterior of this building will also require approval from the Historic Preservation Commission. Staff met with the applicant and determined that the only way to allow the expansion was to do a rezoning. Based upon the policies of the Comprehensive Plan, Staff feels the Plan does support rezoning to a Neighborhood Commercial. Miklo noted that prior to 2005 the neighborhood commercial zones had to be a minimum of 3 acres in size but that size restriction was taken off when the zoning code was rewritten recognizing that there were some historic small commercial areas like this that proved to be beneficial to a residential neighborhood. Miklo stated there is also very specific language in the Comprehensive Plan about neighborhood commercial uses and how they can enhance a neighborhood, but there is also some specific requirements in terms of design and parking placement to help assure that they do not detract from the surrounding neighborhood. Staff feels this existing use and site development does conform to those policies of the Comprehensive Plan. There are also some other policies in the Plan regarding small local businesses that Staff feel support the rezoning. Miklo noted there are some uses that could not occur in this location even if the rezoning is approved because of the parking limitations on this property. There are two, maybe three, parking spaces to the back of the property and that would not be sufficient for some uses (such as restaurants or bars). Therefore that would keep more intense CN-1 uses from being allowed on this property. Staff is recommending approval of the rezoning with a couple of conditions placed on the rezoning given its close proximity to residential. Those conditions would be restricting hours that the business is open to the public to between 7:00 am and 9:00 pm, and prohibiting the sale of alcohol and tobacco. Hensch asked about the order of procedure, when the Historic Preservation Commission review the application. Miklo stated that would happen before the building permit is issued. The Historic Preservation Commission doesn't look at the zoning question, they just look at the design of the building. Freerks asked if there was an event that would keep the business open past 9:00 pm would that then require a special exception permit. Miklo stated that since the condition states the hours of the business is open to the public, any private event could surpass those hours. Dyer asked what qualifies as a restaurant, there are chairs and tables at the bakery. Miklo stated the business is considered a retail bakery which allows for the accessory use of serving Planning and Zoning Commission April 20, 2017 — Formal Meeting Page 7 of 10 what is baked. It is not the primary use, the primary use is the sale of bake goods that are removed from the premises. Parsons asked if the driveway to the south of the building as considered a shared driveway or an alley. Miklo confirmed that was a public alley. Freerks disclosed that she frequents this bakery. Dyer asked if there was a concept drawing for the remodel. Miklo said there has been a drawing submitted to the Historic Preservation Commission. He apologized that a copy was nto included in the agenda packet. Freerks opened the public discussion. Jamie Powers (812 South Summit Street) has owned Deluxe Bakery for 15 years and stressed that the process that would seem to move a lot smoother if this property were commercial is for her to provide a handicap lift at the south driveway/alley. They have investigated about doing a ramp around the back and a ramp around the front but a lift would be preferable. Miklo noted that there is an exception that could be used for non -conforming properties that allows for providing a ramp for persons with disabilities, that is not considered an expansion. Freerks asked if the conditions of the hours open to the public would be acceptable. Powers stated it is fine. She said they have had a few private events when guests may have stayed passed 9:00. She also noted that her business is closed Sundays and Mondays. Dyer asked where on the building the addition would be built. Powers said it would be on the north side of the building. It will be 7 feet to the north by 15 feet back and be used as a closed stairway for the upstairs tenant. Signs noted that he drives by the Bakery every day on his way to and from work and stated he feels it is a very positive contribution to the neighborhood. The building fits into the character of the neighborhood. Powers showed the renderings of the plans for the addition. She added that she did follow the Good Neighbor Policy and held a meeting plus distributed flyers to the neighbors. Thomas Agran (512 North Van Buren Street) noted that he has a building in his family that is also a historic grocery building and was surprised to find out if that building were to burn down it would not be able to be rebuilt as a neighborhood retail establishment. Agran encourages the City to contact all other owners of similar historic buildings (whether they are currently in use or not) to advise them. Agran questioned the restriction on the sale of alcohol was just for this particular property or for all commercial properties in the Neighborhood Commercial zone. Miklo stated it was just for this property. Agran asked then if he wanted to take his building (current business is Design Ranch) and wanted to turn it back into a neighborhood grocery store that restriction wouldn't automatically be placed on his property. Miklo confirmed that would be the case. Hektoen reiterated this is a specific condition attached to the Deluxe Bakery property. Edward Agran (833 South Summit Street) moved two doors down from the Bakery two years ago and noted that the area is a garden spot that everyone recognizes as a great area in Iowa City. He added that the Bakery are very good neighbors. Freerks closed the public discussion. Planning and Zoning Commission April 20, 2017 —Formal Meeting Page 8 of 10 Theobald moved to approve REZ17-00006 the rezoning from Low Density Single Family Residential with Historic District Overlay (RS-5/OHD) zone to Neighborhood Commercial with Historic District Overlay (CN-1/OHD) zone for approximately 3,440 square feet of property located 812 S. Summit Street subject to a Conditional Zoning Agreement restricting hours that the business is open to the public to between 7:00 am and 9:00 pm, and prohibiting the sale of alcohol and tobacco. Parsons seconded the motion. Freerks noted that there was a change to the Code some years ago reducing the acreage needed for this type of commercial to protect these types of small businesses that are integrated into the community. Freerks believes this is confirmed by the Comprehensive Plan and supports this rezoning. Theobald stated she is in support of this rezoning, however it reminded her of a project in her part of town where it was a rezoning away from neighborhood commercial and it is important to remember function versus design in neighborhood commercial. Theobald stressed it is important in all areas where there is a business next to residential to be sensitive to the neighbors, and added she is pleased to see how well this project achieved that. A vote was taken and the motion passed 6-0. DEVELOPMENT ITEM (SUB16-00009/SUB16-00010): Discussion of an application submitted by Robert & Roxanne Mitchell for a preliminary and final plat of Westcott Second Addition, a 9.96 -acre, 4 -lot residential subdivision located 3055 Prairie du Chien Road NE. Miklo stated this property is located on the west side of Prairie du Chien Road and is within two miles of Iowa City therefore within the fringe area of which both the County and the City review subdivisions. The area is beyond what the City anticipates annexing, therefore the Fringe Area Agreement provides a bit more flexibility in terms of the design of the subdivision and the standards that apply. Basically the County's Rural Design Standards apply. Miklo showed images of the site. The property will be divided into four single-family lots, one of which will contain the existing farm house. 50% of the property in the middle is being set aside as open space and stormwater management facilities as required by the Fringe Area Agreement. Freerks asked if that area would be undisturbed then. Miklo said it will be disturbed for the stormwater basin installation. Additionally per the County's Sensitive Area's Ordinance there is a limitation to the number of trees they can remove before mitigation is required. Miklo stated Staff has reviewed the subdivision and it does meet the requirements of the Fringe Area Agreement, it includes stormwater management that is adequate and will not affect the City's watershed to the south. The Fringe Area Agreement requires a fire rating and the Solon Fire Department has submitted a letter indicating a low fire rating. Staff recommends approval of both a preliminary and final plat. Freerks opened the public hearing. Thomas Agran (512 North Van Buren Street) stated he drives out Prairie du Chien frequently Prepared by: Sylvia Bochner, Planning Intern, 410 E. Washington Street, Iowa City, IA 52240; 31M56-5240 (REZ17-00006) o ORDINANCE NO. AN ORDINANCE CONDITIONALLY REZONING APPROXIMATLEY 3,"0 ARCa FE l F PROPERTY LOCATED AT 812 S. SUMMIT STREET FROM LOW DENSI 1 s3INGbE FA I Y RESIDENTIAL WITH HISTORIC DISTRICT OVERLAY (RS-5/OHD) TO-NtIGH8ORHCr0D COMMERCIAL WITH HISTORIC DISTRICT OVERLAY (CN-1/OHP). (REZ17-00006) w WHEREAS, the applican Jamie Powers, has requested a i Street from Low Density S gle Family Residential with I Neighborhood Commercial Hist is District Overlay (CN-1/OHD); WHEREAS, the Comprehe ive Plan encourages � neighborhood commercial uses as cOkitributing to the quality of w iof property located 81213. Summit i District Overlay (RS-5/OHD) to able neighborhoods and envisions within neighborhoods; and WHEREAS, the Neighborhood CbTmercial Zone is intended to promote pedestrian -oriented development at an intensity level that is coVreng r unding residential areas WHEREAS, as the building is currentler-floor residence and a bakery, which is a non- conforming retail use, and; WHEREAS, the applicant has requestallow an expansion of the building to construct a new stairwell for the residential use and rr space; and WHEREAS, the Planning and Zoning Com issior� has the reviewed the proposed rezoning and determined that it complies with the Comprehen --- Plan provided that it meets conditions addressing the need for maintaining compatibility with the surro ding single-family residential neighborhood; and WHEREAS, it is necessary to restrict the ours of operation, and prohibit the sale of alcohol and tobacco to maintain that neighborhood compatib/and d WHEREAS, Iowa Code §414.5 (provides that the City'of Iowa City may impose reasonable conditions on granting a rezoning reqver and above existing regulations, in order to satisfy public needs caused by the requested chang WHEREAS, the owners have a eed that the property shall be developed in accordance with the terms and conditions of the Conditional Hing Agreement attached hereto to ensure appropriate development in this area of the city. NOW, THEREFORE, BE ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: I SECTION I APPROVAL ubject to the Conditional Zoning Agreement attached hereto and incorporated herein, property describedelow is hereby reclassified from its current zoning designation of RS-5/OHD to CN -1 /OHD: The souk 43 feet of Lot 1, Block 1 of P. J. Regan's 1� Addition, Iowa City, Iowa.. SECTION II. ZONING MAP. The building official is hereby authorized and directed to change the zoning map of the City of Iowa City, Iowa, to conform to this amendment upon the final passage, approval and publication of the ordinance as approved by law. SECTION III. CONDITIONAL ZONING AGREEMENT. The mayor is hereby authorized and directed to sign, and the City Clerk attest, the Conditional Zoning Agreement between the property owner(s) and the City, following passage and approval of this Ordinance. SECTION IV. CERTIFICATION AND RECORDING. Upon passage and approval of the Ordinance, the City Clerk is hereby authorized and directed to certify a copy of this ordinance, and record the same in the Ordinance No. Page 2 Office of the County Recorder, Johnson County, Iowa, at the Owner's expense, upon the final passage, approval and publication of this ordinance, as provided by law. SECTION V. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION VI. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VII. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval N O ' C �-I iy -t I �C-) N r- --aM OM 3 -T W W Prepared by: Bob Miklo, Senior Planner, 410 E. Washington, Iowa City, IA 52240 (319) 356-5240 (REZ17-00005) CONDITIONAL ZONING AGREEMENT THIS AGREEMENT is made between the City of Iowa City, Iowa, a municipal corporation (hereinafter "City") and Jason and Jamie Powers (hereinafter "Owners"). WHEREAS, Owners are the legal title holder of located at 812 S. Summit Street, Iowa City, Iowa; and WHEREAS, the Owners have requested the rezoning of said Family Residential with Historic District Overlay (RS-5/OHD) to l igt District Overlay (CN-1/OHD); and WHEREAS, the fanning and Zoning Commission has dete regarding the need r maintaining compatibility with the neighborhood by restric g the hours open to the public and requested zoning is consist t with the Comprehensive Plan; and WHEREAS, Iowa Cod 414.5 (2017) provides that the ( conditions on granting a rezonin request, over and above exist needs caused by the requested ch ge; and WHEREAS, the Owners ackn)gwledge that certain c ensure the development of the properkis consistent with maintaining compatibility with the surround g single-family re WHEREAS, the Owners agree to itpvelop this conditions of this Conditional Zoning Agreemen NOW, THEREFORE, in consideration of the follows: 3,440 square feet of property from Low Density Single Commercial with Historic that, with appropriate conditions nding single-family residential le of tobacco and alcohol, the of Iowa City may impose reasonable regulations, in order to satisfy public tions and restrictions are reasonable to Comprehensive Plan and the need for itial neighborhood; and in accordance with the terms and contained herein, the parties agree as 1. Jason and Jamie Powers are the legal titlee. h�k�r of the property legally described as: The south 43 feet of Lot 1, Block 1 of P. J. Regan's 1AAditidg, Iowa City, Iowa. 2. The Owners acknowledge that the City 'shes to sure conformance to the principles of the Comprehensive Plan and the Central D' trict Plan. rther, the parties acknowledge that Iowa Code §414.5 (2017) provides that the ity of Iowa is may impose reasonable conditions on granting a rezoning request, over an above the existi regulations, in order to satisfy public needs caused by the requested chane. 3. In consideration of the City's rezo ing the subject property, wners agree that development of the subject property will conform o all other requirements of a zoning chapter, as well as the following conditions: a. Any commercial use ay not be open to the public betweeA 9:00 p.m. and &00 a.m.; E5 b. No sales of alcoh or tobacco shall be allowed on the property. D b f _ 4. The Owners and Ci acknowledge that the conditions contained �r*n ; re ble conditions to impose n the land under Iowa Code §414.5 (2017), and th4kSaod conditio satisfy public needs that caused by the requested zoning change. _� T 5. The Owners and City acknowledge that in the event the subject property is nansferred, sold, ppdadnVagiVoondilionei zoning agreement deluxe doc redeveloped, or subdivided, all redevelopment will conform with the terms of this Conditional Zoning Agreement. 6. The parties acknowledge that this Conditional Zoning Agreement shall be deemed to be a covenant running with the land and with title to the land, and shall remain in full force and effect as a covenant with title to the land, unless or until released of record by the City of Iowa City. The parties further acknowledge that this agreement shall inure to the benefit of and bind all successors, representatives, and assigns of the parties. 7. The Owners acknowledge that nothing in this Conditional Zoning to relieve, the Owners from complying with all other applica 8. The parties agle the ordinance re, ordinance, this a! Owners' expense. Dated this day of CITY OF IOWA CITY that this Conditional Zoning Agreement shall ,�oning the subject property, and that upon gement shall be recorded in the Johnson James Throgmorton, Mayor Attest: Voparil, Deputy City Clerk Approved by: ity Attorney's Office S Z J CITY OF IOWA CITY STATE OF IOWA ) ) ss: JOHNSON COUNTY ) This instrument was acknowledged before me on 20_ By: Jason Powers Julie Voparil, as Mayor and Deputy City Clerk, respectively, of the City of :ement shall be construed local, state, and federal porated by reference into i and publication of the Recorder's Office at the 2017 by James Throgmorton and City. Notary Public in and for the State of Iowa (Stamp or Seal) Title (and Rank) ppdadmlagVc ndigonal zoning agreement deluze.dm 2 N O d S? r y � C N r x w 0 2017 by James Throgmorton and City. Notary Public in and for the State of Iowa (Stamp or Seal) Title (and Rank) ppdadmlagVc ndigonal zoning agreement deluze.dm 2 OWNERS' ACKNOWLEDGMENT: State of _ County of This record was acknowledged before me Powers. ppdadMagV=,dN al ZONng agreement deluxe. dm 2017 by Jason Powers and Jamie Notary Public in and (Stamp or Seal) Title (and the State of Iowa My commisVon expires: 0 J Mr m 3 c� ?� w W ..1 r ® CITY OF IOWA CITY sb �� MEMORANDUM Date: March 30. 2017 To: Planning and Zoning Commission From: John Yapp /y -77' Re: Proposed Comprehensive Plan Amendment: Mitigating impact of redevelopment on existing tenants of multi -family buildings Introduction The City Council adopted an Affordable Housing Action Plan on June 21, 2016. One of the specific actions called for in the Plan is to amend local ordinances to address the impacts of tenant displacement associated with major site plans / redevelopment of existing multi -family residential properties, designed to increase notice to and foster greater communication with tenants. This grew, in part, out of discussions related to the redevelopment of Rose Oaks, and the concern that tenants of Rose Oaks, with short notice in some cases, did not have their leases renewed and were faced with the difficult challenge of finding alternative housing in a short timeframe. Background The 2007 Iowa City Metro Area Affordable Housing Market Analysis found, among other findings, that housing prices have outpaced income; that many cost -burdened households are active members of the region's workforce whose salaries are not keeping pace with housing costs; that the market is producing many more high-priced housing units than moderately priced units; and that projected housing construction activity is not expected to address affordable housing needs. This Market Analysis was updated in 2015. This update found that the majority of housing stock growth was single-family housing, and that the proportion of renters in Iowa City considered severely cost -burdened had increased. The update identified several public policy strategies to address affordable housing including inclusionary zoning, preservation of existing affordable housing, and fostering an environment of collaboration and cooperation. City Steps 2016-2020 is a document that identifies local housing and community development needs. It lists priorities including expansion of affordable housing opportunities, public facilities improvements, and housing and housing -related services for homeless and those that at risk of becoming homeless. Iowa Code Chapter 18B, Smart Planning Principles, includes a principle of Efficiency, transparency, and consistency, stating that planning, zoning, development, and resource management should be undertaken to provide efficient, transparent, and consistent outcomes Approval of a site plan is a process for assuring compliance with the City's codes and regulations (e.g. zoning, utility design, etc.). Unlike a rezoning, the approving body does not have the discretion to exercise its judgment on the best use of the property, but rather, reviews the site plan with reference to existing codes. While the site plan review process can require considerable review and amendment before approval given various code requirements, it is a March 30, 2017 Page 2 ministerial process. If a site plan complies with all applicable City Code requirements and standards, it must be approved - once a site plan is approved, a building permit may be issued. Site plan submittal requirements and the level of detail differ depending on whether the plan is a "major site plan" or a "minor site plan." A major site plan involves the construction or remodeling of projects with over 12 residential units or over 10,000 square feet of non-residential floor area. Notice must be posted on the property within 24 hours of receiving the application. The review and approval process is administrative, performed by City Staff, unless a request is made for the Planning and Zoning Commission to review the application. There is currently no process for Council review and approval of site plans. The application submittal requirements are set forth in City Code Section 18-2-2. Discussion of Solutions 1. AMEND COMPREHENSIVE PLAN Among the housing goals in the existing IC2030 Comprehensive Plan are: • Identify and support infill development and redevelopment opportunities in areas where services and infrastructure are already in place; • Improve and maintain housing stock in established neighborhoods; • Maintain and improve the safety of all housing; • Encourage the improvement or redevelopment of substandard multi -family housing. The IC2030 Comprehensive Plan does not currently have a goal that addresses mitigating the impact of redevelopment for existing residents of a redeveloping property. Given the importance of affordable housing, services for those at risk of becoming homeless and increasing communication with existing residents, the Comprehensive Plan should be amended to reinforce the importance of this goal. Staff recommends the IC2030 Comprehensive Plan be amended to add a goal to the Housing section (pages 27-28) stating: Mitigate impact of large-scale residential redevelopment. Mitigate the impact of redevelopment on occupants of proposed projects involving the remodeling or reconstruction of existing multi -family residential dwellings by fostering communication between property owners and occupants through sufficient notice requirements, and encouraging the developer to create thoughtful transition plans that seek to accommodate the relocation needs of current occupants. Staff also recommends amending the Community Vision section of the Comprehensive Plan to reinforce this goal, and amending the Background — Housing section of the Comprehensive Plan to reference existing and future affordable housing plans and studies, including the 2015 Update of the Affordable Housing Market Analysis, CITY STEPS, and future affordable housing studies. March 30, 2017 Page 3 2. AMEND SITE PLAN REVIEW PROCESS Staff is in the process of drafting code amendments to Title 18 of the Iowa City Code of Ordinances to implement and codify requirements for resident notice, more transparency with residents about the phasing of proposed construction, and the creation of transition plans for residents during the construction process for major site plans (12 units or more). The Code will specify the requirements of the transition plan and the plans would be reviewed and approved by Council. While amendments to the Site Plan Review chapter do not require review by the Planning and Zoning Commission (the Site Plan Review chapter is not part of the Zoning Code), staff wanted to make the Commission aware of the amendments. 3. UPDATE GOOD NEIGHBOR POLICY The current Good Neighbor Policy recommends that developers hold a meeting with interested members of the public (including property owners, residents, business, etc.) and makes available staff resources (Neighborhood and Development Services staff) to encourage and assist developers/applicants with setting up and attending the meetings. Locally, most developers/applicants do hold Good Neighbor meetings for projects that are perceived to have neighborhood impacts. While the Good Neighbor Policy currently recommends that such meetings be held for any development activity, in practice the attention has focused on such meetings for rezonings and subdivisions. Staff intends to amend the policy and change its practice to clarify that good neighbor meetings are encouraged for major site plans, not just rezoning and subdivision actions. A Good Neighbor meeting would help explain the proposed project to affected residents, how it will impact them, and the details of the phasing/transition plan. No Planning and Zoning action is required to update the Good Neighbor Policy, but staff wanted to make the Commission aware of the proposed changes. P&Z RECOMMENDATIONS Staff recommends the IC2030 Comprehensive Plan be amended to: 1. Add a goal to the Housing section (pages 27-28) stating: Mitigate impact of large-scale residential redevelopment. Mitigate the impact of redevelopment on occupants of proposed projects involving the remodeling or reconstruction of existing multi -family residential dwellings by fostering communication between property owners and occupants through sufficient notice requirements, and encouraging the developer to create thoughtful transition plans that seek to accommodate the relocation needs of current occupants. 2. Add a goal to the Community Vision Statement (page 7) stating: Fostering communication among owners, redevelopers and occupants to mitigate the impact of redeveloping existing residential properties. March 30, 2017 Page 4 3. Add a statement in the Background — Housing section (page 12): The City has several affordable housing related documents including the 2015 Update to the Affordable Housing Market Analysis and the CITY STEPS Consolidated Plan, which document affordable housing issues and trends. These and future documents provide the basis for affordable housing -related discussions, policies and legislation. Approved by: Attached: Pgs. 7, 12, 27-28 of current IC2030 Comprehensive Plan Community Vision Statement Iowa City is an energetic and friendly community, renowned for its arts and culture, healthcare and education, and distinctive local businesses. The small-town character of our neighborhoods combined with the big -city vitality of our Downtown and university campus make Iowa City a unique and appealing place for people of all ages. These assets define our sense of place and are the foundation of our stable economy. We will strive to preserve and build upon these aspects of our community while supporting compatible growth and investment that contributes to the overall sustainability of Iowa City by: • Fostering a resilient local economy that increases the tax base, stimulates job growth, and pro- motes the overall prosperity and progress of our people; • Protecting and enhancing the environment and encouraging the responsible use of our natural and energy resources; ■ Providing safe and efficient modes of travel for all in order to ensure the opportunity for full partic- ipation in community life and efficient use of resources; ■ Creating attractive and affordable housing for all people—housing that is the foundation of healthy, safe, and diverse neighborhoods throughout our city; • Promoting opportunities for civic engagement and human development for all who call Iowa City home; and ■ Encouraging and supporting collaborative efforts with the University of Iowa, the Iowa City Com- munity School District, Johnson County, and other neighboring jurisdictions for the mutual benefit of all communities. A shared community vision is the foundation of the Comprehensive Plan. This vision statement was drawn from a number of public pro- cesses, including the IC2030 work- shops, the Good Ideas web survey, recent district planning processes (including the Southeast District and Central District Plans), a series of workshops for the Downtown and Riverfront Crossings Master Plan, and from community respons- es to recent events, policy debates, and development activities, espe- cially those in the central and near campus neighborhoods. 7 12 Housing While unique forces contribute to a more resilient housing market than in most parts of the country, Iowa City was not immune to the recent national economic downturn. Likewise, new demographic trends, un- certainty in the financial sector, and concerns over the price of energy influence the demand for housing, Owner as well as the type or style of housing being sought. Rental 47910 According to the 2010 Census, rental housing accounted for 53% of all occupied housing in Iowa City. 13,011 units Residents age 15-34 made up 73.1% of all renters, and one- or two -person households accounted for 53% 72.6% of all rentals.3 Small households are also typical for owner -occupied housing, with 65.5% consist - 14,646 units ing of one- or two- person households. Median home value and median gross rent in Iowa City were the highest of any of the five most populous �+ cities in the state.4 Median home value in 2010 was estimated at $188,000. Median gross rent was esti- mated at $856. Housing prices outpaced income growth from 2000 to 2007. Meanwhile real median Occupied Housing household income for Iowa City, which peaked in 2008 at $54,466, dropped 11% by 20115 According to the 2010 Census, more than half A growing percentage of Iowa City's population consists of students, young adults, retirees, and seniors. of all occupied housing units in Iowa City are Housing trends for these populations point toward greater demand for homes, townhouses, condomini- rentals.. ums, and apartments located in walkable urban neighborhoods such as those that exist and that are being According to the 2010 Census there were contemplated in and around the Downtown, University Campus, and in other areas close to employment 29,270 housing units in Iowa city. of those, and recreation. Strong interest in the UniverCity Neighborhood Partnership Program; a significant in - 27,657 were occupied. crease in the pace of development of new homes in the Peninsula Neighborhood (despite the economic The homeowner vacancy rate was 2.8%. This is recession); continued reinvestment in and sales of homes, condominiums, and townhouses within walk - comparable to the vacancy rate in the state of ing distance of Downtown and the University campus; and continued construction of Downtown high-rise Iowa (2.0%) and in the U.S. (2.4%) condominiums suggest there is increasing demand for higher -density, ty, urban housing for people other The rental vacancy rate was 4.1%. This is low than college students. when compared to the vacancy rate in the state of Iowa (8.5%) and in the U.S. (93%). An overall growth strategy should take into account the trend toward infill development in areas such as *Housing unit refers to dwelling for an individual the Riverfront Crossings and continued reinvestment in the city's existing housing stock to make these household, i.e. a house, or an apartment within a areas more affordable and attractivefor families. Development of new neighborhoods should be designed larger building. as compact and walkable neighborhoods with a varietyof housing types with access to public transit and within walking and biking distance to neighborhood schools and commercial services. 3.2010 U.S. Census 4.2010 American Community Survey (1 -year estimates) 5. Department of Numbers website Housing Vision: Iowa City is a community of neighborhoods with safe, attractive, and affordable housing options to serve residents throughout their lifetimes. To this end, the City of Iowa City will support policies that preserve and enhance the character of existing neighborhoods while encouraging diverse and affordable housing options in all neighborhoods—new and old. Housing Goals and strategies: Encourage a diversity of housing options in all neighborhoods. ■ Ensure a mix of housing types within each neighborhood, to provide options for households of all types (singles, families, retirees, etc.) and people of all incomes. ■ Encourage development on smaller lots that conserve land and allow for more affordable single- family housing options. ■ Strive to create a healthy balance of rental and owner -occupied housing in all neighborhoods. ■ Identify and support infill development and redevelopment opportunities in areas where services and infrastructure are already in place. ■ Concentrate new development in areas contiguous to existing neighborhoods where it is most cost effective to extend infrastructure and services. ■ Encourage projects that attract long-term residents to Downtown, Riverfront Crossings, and the University Impact Zone. ■ Encourage publicly and privately developed dormitory -style housing for University students in ar- eas close to the University campus, but away from single-family neighborhoods. ■ Ensure that dormitory -style housing for University students includes recreational and open space amenities that provide for a safe and healthy student living environment. • Promote housing design and features that allow people to age in place, such as universal design. ■ Encourage green building techniques and promote energy efficiency in all housing. Neighborhoods should provide a variety of housing options to serve people throughout the various stages of life: single working people, families, and seniors. 28 Improve and maintain housing stock in established neighborhoods. • Continue to support and promote programs that fund or provide low-interest loans for housing maintenance or rehabilitation such as the General Rehabilitation and Improvement Program (GRIP), the Targeted Neighborhood Improvement Program (TARP), and the UniverCity Neighbor- hood Partnership. • Encourage the improvement or re -development of substandard multi -family housing. ■ Identify areas within established neighborhoods where infill development would be appropriate. Maintain and improve the safety of all housing. ■ Enforce building and housing codes. ■ Review existing codes for consistency with the goal to provide safe housing, re-evaluating provi- sions that have no apparent basis in safety. • Update codes to accommodate the use of new technology and construction techniques. ■ Explore Home Energy Rating Standards for new construction and significant remodel/rehab- ilitation projects. Preserve the integrity of existing neighborhoods and the historic nature of older neighborhoods. ■ Develop neighborhood plans that help ensure a balance of housing types, especially in older parts of the city. ■ Support the Historic Preservation Commission's efforts to meet its goals. ■ Support housing rehabilitation programs and re -invest in housing in existing neighborhoods. The UniverCity Neighborhood Partnership purchases and renovates rental properties in Support sustainability initiatives to create more energy efficient development areas near the Downtown and campus. These ■ Support programs to improve the efficiency and environmental sustainability of housing. homes are then resold as affordable owner- ■ Support compact, contiguous development to ensure the efficient use of land and to enhance op - occupied housing. The goal is to achieve a portunities for alternatives to commuting by car. healthier balance of owner -occupied and rental properties in near -campus neighbor- hoods that still retain a single-family charac- ter. Planning and Zoning Commission April 20, 2017 —Formal Meeting Page 2 of 10 the property owners, they go through the whole process and then at the end are met with public outcry. Agran believes the signage should be bigger, include images of what is being proposed, and information about what is being proposed. It should be accessible and easy for the public to obtain. He brings this up to the Commission as a way to get the conversation started and ask if it is a conversation that has come up in the past. Hektoen noted that part of the Comprehensive Plan conversation on today's agenda talks about the good neighbor policies. .--> COMPREHENSIVE PLAN ITEM (CPA17-00001): A public hearing for the discussion of an amendment to the Comprehensive Plan to address mitigating impact of redevelopment on existing tenants of multi -family buildings. Yapp stated that the proposed amendments being discussed this evening grew out of the affordable housing action plan that was adopted by the City Council. Specifically one of the actions called for in the plan is to amend local ordinances to address the impact of tenant displacement associated with major site plans. This grew out of discussions related to the redevelopment of Rose Oaks, formally Lakeside Apartments, and the concern that tenants in that complex, with very short notice, did not have their leases renewed and were faced with having to find alternative housing in a short timeframe. Yapp noted that the Commission frequently hears requests for rezoning and subdivisions, but approval of a site plan, in contrast, is an administrative process conducted by staff. If the site plan meets all the City Codes and Regulations Staff is obligated to approve it. In the case of redevelopment projects where there are residents affected, the City currently has no mechanism to require greater transparency with those residents about what the construction project is, what the time frame is, how it will be phased, etc. So Staff is proposing to amend the site review process to codify requirements for notification to residents, more transparency to residents about proposed construction, the creation of a transition plan (for any major site plan, 12 units or more). The site plans will include a transition plan and will be reviewed by the City Council. While site plans will not be reviewed by the Commission, Yapp wanted to make the Commission aware of that change as context for the proposed Comprehensive Plan Amendment. The proposed Comprehensive Plan Amendment provides the policy basis for the amendments to the Site Plan chapter and any other future amendments that are associated. Staff is recommending the Comprehensive Plan be amended to address this issue. The first amendment is to add a goal to the housing section stating "mitigating the impact of redevelopment on occupants of proposed projects involving the remodeling or reconstruction of existing multi -family residential dwellings by fostering communication between property owners and occupants through sufficient notice requirements, and encouraging the developer to create thoughtful transition plans that seek to accommodate the relocation needs of current occupants." The second amendment is to add a goal to the Community Vision statement fostering communication among owners, redevelopers, and occupants to mitigate the impact of redeveloping existing residential properties. The third amendment is to add a statement in the Background section to refer to many of the existing affordable housing reports and studies the City has. Yapp noted those more detailed Planning and Zoning Commission April 20, 2017 — Formal Meeting Page 3 of 10 studies and reports really investigate housing and housing issues, so it is appropriate to have a reference to those in the Comprehensive Plan. Yapp stated that regarding the Good Neighbor Policy, the current Good Neighbor Policy recommends that developers hold a meeting with interested members of the public (including property owners, residents, business, etc.). Those within 300 feet of any rezoning or subdivision are notified of the Good Neighbor meeting, are given the opportunity to come to the meeting, and discuss with the developer the proposed project. That process has not been encouraged for site plans, so as an administrative change, the City will encourage or require developers to have a Good Neighbor meeting with the residents of the project when it is a project where residents will be displaced. No Planning and Zoning action is required to update the Good Neighbor Policy, but staff wanted to make the Commission aware of the proposed changes. Hensch asked about the Good Neighbor Policy and noted that the language is "recommends" or "encourages" so can a developer state they don't want to hold a meeting. Yapp confirmed that is correct, but it would be noted in the staff report that the developer declined holding a Good Neighbor meeting. Freerks suggested that perhaps this is a time when Staff could pull out the Good Neighbor meeting as required when a transition plan is needed. There needs to be communication between the developer and the people that are affected and neighbors or the other amendments cannot occur. Signs asked if there has been any discussion of making the Good Neighbor meetings mandatory in general. Freerks stated there was a reason the meetings were not made mandatory but couldn't recall why. Miklo stated in 2005 when the City rewrote the Zoning Code it was proposed to make the Good Neighbor meetings mandatory under certain circumstances. The Homebuilders Association suggested that the meetings be encouraged rather than mandatory and that is what Council approved. Yapp concurred and stated that for simple projects it seemed unnecessary to require a meeting. Freerks agreed but feels for transition projects, it should be mandatory. Yapp agreed. Freeks questioned the statement of "Mitigate impact of large-scale residential redevelopment" and then in the next paragraph is states "encouraging the developer to create thoughtful transition plans that seek to accommodate the relocation needs of current occupants" and wanted clarification on what that phrase means "to accommodate". Does it mean to require payment? In the introduction it discusses increasing notice and fostering communication but it is not stated that developers need to put money towards transitions. Hensch agreed and feels it should not be the City's cost but rather the developer's costs if relocation assistance is warranted. Yapp stated it was not the intent of the statement "to accommodate" to imply payment of any sort. Hektoen explained that this language is in the context of the Comprehensive Plan and then there will be changes to the site plan review process. The Comprehensive Plan should be written in a broader tone and allow for flexibility. It would not be good to have the language say every transition plan must have XY&Z because every situation is different. Freerks noted there is a lot of ambiguity in the language, and is not stating that is a bad thing, Planning and Zoning Commission April 20, 2017 — Formal Meeting Page 4 of 10 however the public needs to know what "seek to accommodate the relocation needs" means. Is it money, moving trucks, etc. Hektoen stated it could mean all of the above or something else. There are certain programs that require by federal law relocation assistance funds. It will be noted in the transition plans how the developer will be satisfying the obligations they have. In the example of Rose Oaks, they did provide financial assistance to those residents. Freerks asked if the transition plan would be discussed at a Council meeting and therefore allowing for public input and Hektoen confirmed that would happen. Dyer noted that something similar to this might be appropriate for small businesses. For example the situation along South Dubuque Street where small businesses were made to relocate due to redevelopment. Parsons asked if will be on the developers to foster the communication. Yapp confirmed it would fall on the developer but would be overseen by Staff. Signs asked if Staff was typically present at community meetings. Yapp confirmed that Staff is present. Freerks opened the public hearing. Charlie Eastham (953 Canton Street) voiced a couple comments, first being expanding the Good Neighbor meeting as a requirement, a presence in the situation these amendments are directed at. Those meetings help a lot for residents and developers to sit down and talk with each other. Developers sometimes clear up confusion, sometimes it causes confusion, not deliberately but in the way they present the information. In terms of accommodating relocation needs, these amendments as he understands them gives the Council eventual authority, or ability, to require financial assistance or to provide money from the City for financial assistance if developers are not able to do so themselves. Eastham feels the question of whether or not developers can be required to provide financial assistance for relocation in development that is just under site plan development of the Code perhaps is still up for discussion. Eastham hopes the Commission will act favorably upon these amendments. Sally Scott (Johnson County Affordable Housing Coalition) said the Coalition Board did endorse the recommendation of the Staff to amend the Comprehensive Plan in this way. She feels it is a really valuable shift for the City to make, people are vulnerable when they are in these developments, especially folks of lower incomes. Making the Good Neighbor meeting more of the process, making sure people have proper notice, and making sure there is a transition plan are excellent steps. Scott noted they did advocate during the creation of the Affordable Housing Action Plan for developers to provide payments to folks below a certain income level. That is not part of the amendment tonight, but should be discussed more in the future. Signs noted that he is currently serving as the President of the Board of the Affordable Housing Coalition and both the previous two speakers are very familiar to him. He has recused himself from all conversations at that Board regarding this proposal and doesn't believe anything they have said is going to impact his ability to make a fair decision this evening. Freerks closed the public hearing. Hensch moved for approval of the three amendments to the IC2030 Comprehensive Plan to address mitigating impact of redevelopment on existing tenants of multi -family buildings as written in the Staff report. Theobald seconded the motion. Planning and Zoning Commission April 20, 2017 — Formal Meeting Page 5 of 10 Hensch asked if these amendments will have any effect on the Good Neighbor Policy. Freerks said no, no Commission action is required for that Policy. Yapp confirmed that was the case, but the Commission's comments will be reflected in the minutes which are read by City Council. Freerks stated she feels this is a wonderful plan but has some pause with some of the little details. "Seek accommodations" still resonates as a concern for her and feels it should be fair, consistent and predictable for all (developers and the community). She would prefer to have more detail written to draw out the expectations. Signs asked what the next step will be. If there Commission were to want to specify some things that should happen. Yapp stated that the exact shape, size and detail of a transition plan will be codified in the site plan chapter. The Comprehensive Plan statement is meant to be broad language. The Commission does have the ability to amend the language on the floor if they so choose. Theobald stated she does not have a problem with the proposed language, and sees the benefit to both parties to having it vague in the Comprehensive Plan because each case is different. Perhaps setting a minimum standard would work. Freerks noted she just wanted the conversation to happen and have it as part of the minutes. Hensch agreed, this is a good first step and if in the future this first step isn't enough then it can be revisited to tighten the language up. Theobald also agrees with Dyer's comments regarding small businesses and questions when that conversation would be appropriate. Signs agreed and said the Dubuque Street incident was a fiasco, and wondered if they could include commercial properties in this language. Hektoen said that would be beyond the scope of what Staff has addressed in their proposed amendments this evening, so the Commission would want consider that at another time. She also noted that site reviews differ in many contexts. Parsons noted it is a fact of life that every structure has to get renovated or upgraded at some point and every situation is so unique and he is okay with the more vague language as a first step. It can be revisited and tightened up if problems do arise. A vote was taken and the motion passed 6-0 (Martin absent). REZONING ITEM (REZ17-00006): Discussion of an application submitted by Deluxe Bakery / Jamie Powers for a rezoning from Low Density Single Family Residential with Historic District Overlay (RS-5/OHD) zone to Neighborhood Commercial with Historic District Overlay (CN-1/OHD) zone for approximately 3,440 square feet of property located 812 S. Summit Street. Miklo stated the property is located on Summit Street in a residential neighborhood. The building was likely built around 1900 and converted to a grocery store about 1910. The City first adopted zoning in the 1920's and this property was zoned residential at that time, but because Prepared by: John Yapp, Dev. Srvs, 410 E. Washington St, Iowa City, IA; 319-3565252 (CPA17-00001) RESOLUTION NO. A RESOLUTION AMENDING THE COMPREHENSIVE PLAN TO ADDRESS MITIGATING IMPACT OF REDEVELOPMENT ON EXISTING TENANTS OF MULTI- FAMILY BUILDINGS WHEREA the Comprehensive Plan encourages infill development and redevelopment opportunities in "t EA where services and infrastructure are already in place; and WHEREAS, th Comprehensive Plan encourages the improvement or redevelopment of substandard multi -fa 'ly housing; and WHEREAS, theC prehen; mitigating the impact of r evelc WHEREAS, the Compr ensi future housing and affordable ou WHEREAS, it is consistent ' the impact of redevelopment on housing documents; and WHEREAS, the Planning and recommended approval. Plan does not curre nt for existing residents Plan does not currently g studies and reports; a ;omprehensive Plan g acted residents, and/t! have a goal that addresses redeveloping property; and ude a reference to existing and a to add goals related to mitigating reference housing and affordable reviewed this amendment and has NOW, THEREFORE, BE IT RESOLVED fY THE/CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: \ 1. Add a goal to the Housing section of the palopment dential ederehensive Plan (pages 27-28) Mitigate impact of large scale resi Mitigate the impact of redevelopmen on occu ants of proposed projects involving the remodeling or reconstruction of ex' ting multi -f ily residential dwellings by fostering communication between property owners andccupants through sufficient notice requirements, and encouraging t developer to c ate thoughtful transition plans that seek to accommodate the relocaf n needs of current cupants. E 2. Add a goal to the Community Vision Statement of the Plan (page 7): Fostering communication a oIng owners, redevelopers, a d occupants to mitigate the impact of redeveloping exi ing residential properties. o 3. Add a statement to the ackg round —Housing section (page 12): The City has severe affordable housing related documents including 2045 Up¢fM to the Affordable Ho ing Market Analysis and the CITY STEPS Cons6�te�LPlar�ich document afforda le housing issues and trends. These and future doaarm pro ;ghe basis for afforda ehousing-related discussions, policies and legislation Resolution No. Page 2 Passed and approved this day of , 20_ ATTEST MAYOR: Approved by: C:\Users\jvopanl\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\3R4VESQD\Comp plan amendment RESOLUTION MITIGATING IMPACT OF REDEVELOPMENT.doc =tn N aFn C:\Users\jvopanl\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\3R4VESQD\Comp plan amendment RESOLUTION MITIGATING IMPACT OF REDEVELOPMENT.doc Comprehensive Plan Item CPA17-00001 A public hearing for discussion of an amendment to the Comprehensive Plan to address mitigating impact of redevelopment on existing tenants of multi -family buildings. Proposed Comprehensive Plan Amendment 1. Add a goal to the Housing section (pages 27-28) stating: Mitigate impact of large scale residential development Mitigate the impact of redevelopment on occupants of proposed projects involving the remodeling or reconstruction of existing multi -family residential dwellings by fostering communication between property owners and occupants through sufficient notice requirements, and encouraging the developer to create thoughtful transition plans that seek to accommodate the relocation needs of current occupants Proposed Comprehensive Plan Amendment 2. Add a goal to the Community Vision Statement (pg. 7) stating: Fostering communication among owners, redevelopers and occupants to mitigate the impact of redeveloping existing residential properties Proposed Comprehensive Plan Amendment 3. Add a statement in the Background — Housing section (pg. 12): The City has several affordable housing related documents including the 2015 Update to the Affordable Housing Market Analysis and the CITY STEPS Consolidated Plan, which document housing issues and trends. These and future documents provide the basis for affordable housing -related discussions, policies and legislation Publish 518 NOTICE OF PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATED COST FOR THE 2017 HEBL AVENUE IMPROVEMENTS PROJECT IN THE CITY OF IOWA CITY, IOWA TO ALL TAXPAYERS OF THE CITY OF IOWA CITY, IOWA, AND TO OTHER INTERESTED PERSONS: Public notice is hereby given that the City Council of the City of Iowa City, Iowa, will con- duct a public hearing on plans, specifications, form of contract and estimated cost for the construction of the 2017 Hebl Avenue Improvements Project in said city at 7:00 p.m. on the 16"' day of May, 2017, said meeting to be held in the Emma J. Harvat Hall in the City Hall, 410 E. Washington Street in said city, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. This project includes the reconstruction of Hebl Avenue from IWV Road to the Landfill Recycling Center entrance. Said plans, specifications, form of contract and estimated cost are now on file in the office of the City Clerk in the City Hall in Iowa City, Iowa, and may be inspected by any interested persons. Any interested persons may appear at said meeting of the City Council for the purpose of making objections to and comments concerning said plans, specifications, contract or the cost of making said improvement. This notice is given by order of the City Council of the City of Iowa City, Iowa and as provided by law. JULIE VOPARIL, DEPUTY CITY CLERK r 1 CITY OF IOWA CIT 7 COUNCIL ACTION REPOR May 16, 2017 Resolution approving plans, specifications, form of agreement, and estimate or COST Tor the construction of the 2017 Hebl Avenue Improvements Project, establishing amount of bid security to accompany each bid, directing City Clerk to post Notice to Bidders, and fixing time and place for receipt of bids Prepared By: Daniel Scott, Sr. Civil Engineer Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director Geoff Fruin - City Manager Fiscal Impact: $1,015,000, available in the Hebl Ave Improvements account #L3322 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: The Project includes reconstruction of Hebl Avenue from IWV road to the Landfill and Recycling Center entrance. The reconstruction of Hebl Avenue will include improving the roadway to full depth PCC with rock base and paved shoulder to improve the drainage system. A new roadway culvert will be installed for the creek with new guard rails to improve safety. Background I Analysis: Hebl Avenue currently serves as the entrance road to the Landfill and Recycling Center and the majority of traffic is heavy refuse trucks. The current roadway is a 22' wide rural chip and sealcoat roadway with roadway ditches on either side for managing storm water runoff. In addition, the existing creek culvert under Hebl Avenue is in need of repair. MMS Consultants was hired to design the project and has plans and specifications ready for construction of the project. The plans, specifications, form of contract, and estimate of cost for construction of the 2017 Hebl Avenue Improvements Project have been filed in the Office of the City Clerk for public examination. The cost of construction was originally estimated at $900,000, however, recent updated cost estimate information has become available, which has increased the estimated cost to $1,015,000. The project is expected to be completed in 2017. NOTICE OF PUBLIC HEARING Notice is hereby given that the Iowa City City Council will hold a public hearing on the 161h day of May, 2017, at 7:00 p.m. in Emma J. Harvat Hall in City Hall, 410 E. Washington, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the Iowa City City Council thereafter as posted by the City Clerk; at which hearing the City Council will consider a resolution approving a 20 year ground lease with Bread Garden of Iowa City, L.C. for Ped Mall space adjacent to their downtown location. Copies of the proposed resolution are on file for public examination in the office of the City Clerk, City Hall, Iowa City, Iowa. Persons wishing to make their views known for Council consideration are encouraged to appear at the above- mentioned time and place. JULIE VOPARIL, DEPUTY CITY CLERK 'r CITY OF IOWA CIT -r� COUNCIL ACTION REPO)i= May 16, 2017 Resolution approving a ground lease agreement with Bread Garden of Iowa City, L.C. for Pedestrian Mall space adjacent to their downtown location Prepared By: Geoff Fruin, City Manager Reviewed By: Eric R. Goers, Asst. City Attorney Eleanor Dilkes City Attorney Fiscal Impact: As landlord, the City will earn $9,826.95 per year, escalating every 5 years. All other costs will be borne by the tenant, Bread Garden. Recommendations: Staff. Approval Commission: N/A Attachments: Resolution, Ground Lease Executive Summary: This resolution considers a proposed ground lease to Bread Garden of Iowa City, L.C. of 668.5 square feet of pedestrian mall space immediately to the north of their location. The area is roughly the same area previously utilized as sidewalk caf6 space. This proposed lease is for twenty years. The lease rate is $14.70 per square foot ($9,826.95 per year), and escalates with CPI every five years. It is a triple net lease, with Bread Garden to pay for everything associated with the project. Bread Garden intends to build a semi-permanent structure to allow patrons to dine there throughout the year during periods of inclement weather. Background / Analysis: The popularity of open-air dining options continues to grow in Iowa City. Over the past several years the City has expanded use of sidewalk cafes, planter cafes and street cafes. The City has also received more inquiries and building permit applications for open-air opportunities on rooftops and on ground level privately owned properties (defined as outdoor service areas in the City Code). The rise in popularity of these spaces has helped create a vibrant street atmosphere in downtown Iowa City, which is increasingly appealing to a broader segment of our population and the visiting public. Iowa City requires that sidewalk cafes be removed between December 1st and the end of February. This is done to facilitate more efficient snow removal operations during the winter. Businesses leasing these spaces pay an annual fee for the nine months that they use the public space. Planter cafes do not impede snow removal operations and thus can stay up through the winter season, although for all practical purposes they close due to the weather. r 1 CITY OF IOWA CITY -r COUNCIL ACTION REPORT The Bread Garden currently operates a sidewalk cafe on public property that transitions seamlessly into their private four season dining area. Last year, the Bread Garden inquired if the City would consider allowing them to extend their existing four season dining structure over the area they have historically used as a sidewalk cafe. By doing so the Bread Garden could offer a similar open air dining experience three extra months per year as the seating would be covered and enclosed on four sides during the winter months. Because of the significant upfront capital expense to build a new structure over the seating area, the Bread Garden would require a twenty-year lease commitment and also would be willing to pay a significantly higher lease rate compared to their existing sidewalk cafe fee. In considering this request, multiple factors need to be considered. First and most importantly, one needs to consider whether the extension of a private structure over public property would be a detriment or enhancement to the public's use of the surrounding area. In this specific case, I believe the extension of the covered open-air seating would enhance the public's enjoyment of the space without interfering with anyone's use of the surrounding space. • The space in question is the same area that the business has historically used for their sidewalk cafe. Thus, the space is already exclusively utilized by the business for nine months of the year. Staff has not received anything but positive feedback on the Bread Garden's use of this space over the last several years. • The extension of a structure over this area will not impede the pedestrian movement or the critical viewshed into or out of the Ped Mall. This segment of the Ped Mall is quite unique in that regardless of the existence of sidewalk cafes, the vast majority of pedestrians naturally move through the central part of the Mall between the line of trees and the Library/Children's Garden and playground. When cafes are not operational, few people will routinely utilize the space between the trees and the southern businesses (including Bread Garden) unless they intend to access those businesses. • The structure does not impose additional public safety risks or require a detour of the Fire Department travel lane that currently exists in the Ped Mall. • The structure will not detract from any nearby historic structures. • The Bread Garden will assume responsibility for the upkeep of public property that they occupy as .well the immediate remedy of any drainage or snow/ice accumulation around the structure. A second consideration is how the addition of a structure over this space will impact the aesthetics of the Ped Mall. The City has design review authority over the structure. It is critical that any structure not deaden or otherwise detract from the vibrancy of the street level. Thus, the interconnection of the structure to the existing building is critical. If the structure were to be viewed as more of an unplanned appendage to a building simply to CITY OF IOWA CITY COUNCIL ACTION REPORT hold more patrons it would drag down the new structure will connect seamlessly to outdoor dining area and I believe it should Mall. broader appeal of the block. In this case the the Bread Garden's existing four season naturally flow and integrate well into the Ped Lastly, one needs to consider what other types of requests the City may receive that are similar in nature. The City is under no obligation to extend similar arrangements to other businesses. If inquiries were received, one would need to give critical thought to pedestrian traffic patterns, viewsheds, the public uses of the surrounding space, public safety and other city operations including snow removal, visual impact on historic properties, and the aesthetics of the corridor and how any proposed structure naturally integrates into the building and the Ped Mall. In thinking about these criteria, it would be difficult to imagine another scenario on the Ped Mall that works as well as the one being proposed by the Bread Garden (the Ped Mall is technically not ROW and the only area downtown where the City could grant a permanent interest such as this 20 year lease in property dedicated to vehicular and pedestrian movement.) The $14.70 per square foot initial lease rate was derived from an analysis of comparable sales in the downtown area. In comparison, the City's sidewalk cafe fee is $5.00 per square foot. Over the twenty-year lease period, the agreement is projected to bring in over $200,000 in lease revenue to the City. While important, I do not believe the revenue should be a determining factor as the impact on the public space is the most critical decision point. The Bread Garden will assume all costs and liability for the publicly -owned space that they will lease. I believe the proposed agreement presents a great opportunity for the City and Bread Garden to work together to bring more people to the downtown throughout all months of the year and, at the same time, enhance the attractiveness of the surrounding space in a manner that does not harm or inhibit one's use of the space. Prepared by: Eric R. Goers, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 3565030 RESOLUTION NO. RESOLUTION TO APPROVE A GROUND LEASE AGR EMENT WITH BREAD GARDEN OF IOWA CITY, L.C. FOR PED MALL SPACE ADJACENT/TO THEIR DOWNTOWN LOCATION. WHEREAS, Bread Garden of Iowa City, L.C. wishes lease approximately 668.5 square feet of pedestrian mall space adjacent to their Bread Gard Market for twenty years to enable them to construct a structur to serve patrons of the market ear -round; and WHEREAS, staff has n otiated a lease agreem nt including an annual lease rate of $14.70 per square foot, for an initial nual lease of $9,82 .95, which would be adjusted for inflation every five years; and WHEREAS, the lease agreemen and site pl approval process will ensure that City interests in the pedestrian mall are protected; a d WHEREAS, it is in the best interests of a ity to approve the lease. NOW, THEREFORE, BE IT R VED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The attached Ground Lease with read Garden of Iowa City, L.C. is approved. 2. The Mayor and the City Clerk a authorized ant directed to respectively execute and attest the Ground Lease attached h eto. Passed and approved this _� day of 2017. MAYOR Approved by ATTEST: CITY CLERK City Attorney's Office _ o 6 r a �Ti 0 4W �` i!i `'e1 w y ' ,Pr "'..• x tit 'N S l . %I�rli� bpi if f•-Xfw n4 _ tinl�ftr. _ ''h • M1� a {{}''*QNk 4 � k`."t r g FF..na .Jo ~Jit if, ty f All . 1 - .•i - _ Ali �_ .� - S '�P,�` � ace. �`Y"'* ,5 . �' S� •'-_' r of i, l'yY �aLv` SSM} AN y\ lv 4 wr,i. �` i!i `'e1 w y ' ,Pr "'..• x tit 'N S l . %I�rli� bpi if f•-Xfw n4 _ tinl�ftr. _ ''h • M1� a {{}''*QNk 4 � k`."t r g FF..na .Jo ~Jit if, ty f All . 1 - .•i - _ Ali �_ .� - S '�P,�` � ace. �`Y"'* ,5 . �' S� •'-_' r of A I Prepared by: Eric R. Goers, Asst. City Attorney, 410 E. W ashinoton St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. RESOLUTION TO APPROVE A GROUND LEASE AGREEMENT WITH BREAD GARDEN OF IOWA CITY, L.C. FOR PED MALL SPACE ADJA NT TO THEIR DOWNTOWN LOCATION. WHE AS, Bread Garden of Iowa City, L.C. wis es to lease approximately 668.5 square feet of pedestrl mall space adjacent to their Bread rden Market for twenty years to enable them to construct "greenhouse" structure to serve patr ns of the market year-round; and WHEREAS, st has negotiated a lease square foot, for a initial annual lease of five years; and WHEREAS, the lease agr ment and sitf the pedestrian mall are protec d; and / WHEREAS, it is in the best mt including an annual lease rate of $14.70 per 95, which would be adjusted for inflation every plan approval process will ensure that City interests in City to approve the lease. NOW, THEREFORE, BE ITR OLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The attached Ground Lease Ith Bread Gard of Iowa City, L.C. is approved. 2. The Mayor and the City Cl k are authorized an directed to respectively execute and attest the Ground Lease attache hereto. Passed and approved this I day of ATTEST: MAYOR \''M a Approved by 7Vc S � 7 City Attorney's Office This Ground Lease (the "Lease") is made as of the day of _ 2017, by and between the City of Iowa City ("City" or "Landlord") and Bread Garden of Iowa City, L.C. ("Bread Garden" or "Tenant") RECITALS A. The City of Iowa City is the owner of the fee title to premises situated in the City of Iowa City, State of Iowa, commonly known as the Iowa City Pedestrian Mall. Landlord has the a rt i to lease ground. B. T ant is Bread Garden of Iowa City, L.C. C. The arties desire to enter into a ground lease pursuant to which Landlord will lease ground withiriAhe Pedestrian Mall as depicted on Exhibit A (the "Leased Premises") for the purposes of construction of a one story greenhouse structure for use in association with Tenant's Bread Garden Market grocery and restaurant business, or for use as a sidewalk cafe in 2017:. D. Tenant has indicated a willingness and abi ty to properly keep, maintain, and improve said ground in accordance with standards Iablished by Landlord, if granted a lease of sufficient term on said ground area. In consideration of th6\foregoing and he mutual covenants hereinafter contained, and for other good and valuable coh�ideration, the receipt and sufficiency of which are hereby acknowledged by the parties, Landlord an Tenant hereby agree as follows: ARTICLE I GRANT 1.01 Grant. Landlord hereby ases to nant the Leased terms and conditions hereinafte set forth. ARTI E II CONDIT N 2.01 Condition of/asePremises. Tenant is taking sses: "as -is" condition of the execution and delivery of this L se to perform an mprovements, alterations, additions, repairs r specifically defined in this lease. ARTICLE III TERM Premises in accordarb with the Ll V C') r— ion of the Lease3 Pminisegi' an Landlord shalt havdAb obbotion replacements theretdexcept those 3.01 Initial Term. The term of this Lease shall commence on (the "Lease Commencement Date") and shall continue thereafter until (the "Term") unless sooner terminated as provided herein. 3.02 Options to renew. renew. There are no options to renew included in this lease. ARTICLE IV RENT AND UTILITIES 4.01 Annual Base Rent. Commencing on and continuing on the first day of each succeeding month, Tenant shall pay to Landlord, at the address specified in Section 15.03, or at such other place as Landlord may from time to time hereinafter designate to Tenant in writing, annual rent ("Annual Base Rent") as follows: Annual Base Rent: $14.70 per square foot per year. For the period of February 28, 2018, the annual fee will be prorated, with payment due upon execution of this Lease. Subsequent annual payments will be due March 15' of each year. (a) Definitions. For the purposes of this provision, the following definitions shall apply: (1) the term "Consumer Price Index" or "CPI' shall mean the U.S. Bureau of Labor Statistics Consumer Price Index for all Urban Consumers — U.S. City Average, seasonally adjusted (1982-1984=100). (2) the term "Current CPI' shall mean the annual average of Consumer Price Indices for the calendar year immediately preceding the Change Date (3) the term "Base CPI' shall mean the annual average of Consumer Price Indices for the calendar year immediately preceding the year for which the \\Current CPI is determined. (4) the term "Change Date' shall mean March 1s' of every fifth year beginning 2022. (b) AA(ustment. Effective on the Change Date, the Annual Base Rent hereunder shall escalate based on the following formula and illustrated b)�ke following example --� -71 Formula: .✓ ��. f'S� 1 rr n PI -B P x Rent] + Rent �S,oalebed RFnT [Base C I] M —0 M (2) Ex ple: A ume Change Date is 3/1/13; 14�sufl>� thnual base ren is $9,826.95. Assume the" Base�CPI (annual averag PI for 2011) is 225.114 and that the Current CPI (annu erage CPI for 2012) is 228.537. Annual base rent begi Ing arch 1, 2013 would be $9,976.37 T8.53f7-225.-225. 14 X $9,826.951 + $9,826.95 = $9,976.37 5.114 (c) No RecNo subs quent adjustments or recomputations, retroacti, shall be m e to the Consumer Price Index due to any revlater be ma to the first published figure of the Consumor any month. (d) NoR t Decrease. In no event shall the nual Base Rent for a given year be I s than the Annual Base Rent for the preceding year. (e) No/Waiver. Any delay or failure of Landlord in c mputing or billing Tenant for t escalation of Annual Base Rent as provided herein shall not constitute a t,aiver of or in any way impair the continue obliga of Tenant to pay such es ' n escalation of Annual Base Rent. (f) Change in Index. In the event that the Consumer Pric Index ceases to use 1982-1984=100 as the basis of calculation the new CP established by the U.S. Bureau of Labor Statistics Consumer Price In x for all Urban Consumers — U.S. City Average, seasonally adjusted, wit a different base year shall be used. 4.02 Net Lease. This Lease in every sense shall be without cost to the Landlord for the development, maintenance, and improvement of the Leased Premises. It shall be the sole responsibility of the Tenant to keep, maintain, repair and operate the entirety of the Leased Premises and all improvements and facilities placed thereon at Tenant's sole cost and expense. 4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing throughout the Term, Tenant shall pay or cause to be paid all charges, assessments, or taxes for gas, electricity, water, sewer, telephone and all other utility services incurred in connection with Tenant's use and occupancy of the Leased Premises. . 4.04 Taxes. Commencing with the Lease Commencement Date and continuing throughout the Term, Tenant shall pay any and all property taxes assessed on the Leased Premises when they become due. ARTICLE V USE AND OCCUPANCY 5.01 9212,, Tenant shall use the Leased Premises solely for the construction, use, and support of Tenant's gr ery and restaurant business. The Leased Premises shall be used solely as an enclosed spade for patrons of Tenant's grocery an restaurant business to sit and consume food and drink. Tenant may also use the Leased Pre ses as a sidewalk cafe, but only in 2017. If the Leased Premises is used as a sidewalk cafe, T ant shall comply with the Sidewalk Cafe Policy, attached and marked as Exhibit B, and incor rated herein by this reference. In the event of conflict between Exhibit B and this Lease, this ease shall prevail. For example, the Rental rates contained herein shall prevail over those artic ated in Exhibit B. 5.02 Construction. Tenant shall use its seating area on the Leased Premises n I applicable codes governing constructio 0 required before issuance of a building erm and all payments hereunder shall' be forfei substantial improvements by Decem r 31, of the construction in accordance ith,the failure by Tenant to complete subs ntial'im an event of Default and Landlord shall ha' construction of Tenant's Improv ents are improvements to the Pedestri Mall, Ten ast efforts to complete the construction of an enclosed ter than July 1, 2018. Tenant shall comply with all f the enclosure. Design review by the City will be it. Tenant's interest under this Lease shall terminate ted if Tenant does not complete construction of the 2018. "Substantial improvements" means completion plans and specifications approved by the City. The provements by December 31, 2018 shall be considered available all remedies set forth herein. In the event being made at the same time that Landlord is making nt shall coordinate with Landlord to ensure Tenant's construction does not interfere/with Landlord's 5.03 Licenses.Tenant all at Tenant's expense, obtain and maintain during the Term of this Lease all licenses or per is necessary for the operat n of Tenant's use of the Leased Premises as defined in section 5. 1 herein and Tenant shall co ply with any other applicable rules and e regulations governing t operation of Tenant's use of t4 Leased Premises as required by any federal, state, or local Oovernment or regulatory authority or gency. 5.04 Zoning. and permits rei 5.05 int shall, at tenant's expense, obtain any\@nd all by local law or ordinance. (a)/Nuisances. No act constituting a nuisance as de Chapyer 657, Code of Iowa, City Code, or the common law of Lea a Premises. necessary zoniLg approvals <� ac 1 -4 C-) N r ied un(t ttie prn of wa shall be pirmitteiLbn the (b) Signs. All signage shall comply with City ordinances and be approved by the Landlord. ARTICLE VI 6.01 Improvements and Personal Property. (a) Title to Tenant's Improvements. Any and all real property improvements, alterations, modifications or additions on or to the Leased Premises made by Tenant during the Term ("Improvements") shall be and remain the property of Tenant throughout the Term. (b) Surrender. Upon expiration of the Term or termination of the Lease, whether by breach, default, expiration of Lease, or otherwise, Tenant shall thereupon be required to remove all Improvements and match the Leased Premises to the then -current surface condition of the surrounding Pedestrian Mall area. (c) Removal of Personal Property. All items of furniture, furnishings, inventories and other personal property acquired by Tenant for use on the Leased demises (the "Personal Property") shall be and remain the property of Tenant regardless -9t terrniwtion of the Lease or expiration of the Term. Tenant shall remove "ftDm-Ahe 1-4sed Premises all Personal Property at or before the termination or explatjbn q the se. If Tenant fails to remove such items within such period, then (i) -0 items s1hall be deemed abandoned by Tenant and shall become the property of;1andlQfd, 4_Q (ii) ndlord shall have the right to r move and dispose of such items_ Ls LaWdlordc its so discretion, sees fit and to cha a Tenant the cost of doing so. 6.02 R%ESE 6.03 Liens. Tenant shall not cause or permit any liens to be attached to, placed on or filed against the Landlord's interest in the Leased Premises or Tenant's Improvements in connection with any construction, alteration, demolition, repair or restoration work Tenant performs or causes to be pe ed on the Leased Premises. If, however, at any time, in connection with the planning, c struction, alteration, demolition, repair or restoration work Tenant performs or causes to b performed on the Leased Premises, any liens of mechanics, laborers or materialmen shall b filed against, attached to or placed on the Leased Premises, the Tenant's/during provements or ny part thereof relating to work described above, Tenant shall, at its expecause the me to be discharged, by payment, bonding or otherwise as provided by, within fifte (15) days after Tenant receives notice that the lien was filed, except for sliens that y have been incurred by Landlord arising from Landlord's actions. Nothing herontained all in any way prejudice the rights of Tenant to contest in good faith to final judgt or decr a any such lien prior to payment thereof, provided that Tenant shall (a) furnish akeep in ffect a surety bond of a responsible and substantial surety company, acceptable andlord in an amount sufficient to pay 125% of the amount of such contested lien claim wll inte est thereon and costs F' nd expenses with respect thereto, or (b) provide other secureaso ably satisfactory to Lan rd. Upon final determination of the validity of such conteslie or claim, Tenant shall imme ' tely pay the amount finally determined to be due thereocl ing any judgment or decree endered in connection therewith, with all property cocharges and shall cause any suc lien to be released of record without cost to Landlord during the pendency of any such con st, Tenant shall save and keep Landlord harmless frany claim or loss by reason thereof. Te nt's failure to comply with the terms of this Section3 shall be considered a Default under th Lease, and Landlord shall have the righttoany all remedies against Tenant asset forth in ction 11.02 herein. 6.04 rina . Tenant shall, throughout the Term, at it sole cost and expense, maintain the Lees and all buildings and improvements a any time erected thereon, any unimprof the Leased Premises and all Personal Property installed therein, in good repaire, clean, sightly and sanitary condition. Tenant shall clear any snow or ice accumulation on the adjoining property of the Landlord which results from the presence of Tenant's structure. In the event Tenant fails to do so to the satisfaction of Landlord, Landlord may require that Tenant, at Tenant's expense, install improvements to address the snow and/or ice accumulation. In the event that Tenant, in Landlord's reasonable judgment, fails to comply with its repair and maintenance obligations under this Section 6.04, Landlord may, but shall not be obligated to, in addition to its remedies under Article XI, perform all repairs and maintenance which in Landlord's reasonable judgment is required to bring the Leased Premises, Tenant's Improvements and Personal Property into compliance with the repair and maintenance standards of this Section 6.04, and charge the cost to Tenant. 6.05 Compliance with Legal Requirements. Tenant shall, throughout the Term, at its sole cost and expense, promptly comply with all applicable laws, ordinances and regulations of governmental entities having jurisdiction over the Leased Premises (including, but not limited to all local zoning use restrictions and requirements), and all policies of insurance applicable to Leased Premises (collectively, "Legal Requirements"). Tenant shall not conduct or permit any person to conduct any unlawful activity on the Leased Premises or any use or activity in violations of (a) any Legal Requirements, including but not limited to zoning or other land use laws or ordinances, or (b) any private restrictive covenants applicable to the Real Estate. Furthermore, Tenant shall not cause or allow any activity which causes air, water, soil, or noise pollution, which would violate any Legal Requirements or which would otherwise constitute a nuisance or reasonably objectionable intrusion into or interference with the use of any surrounding property. 6.06 n -Discrimination. Tenant covenants, in consideration of the right to lease property from Landlord, lhat Tenant, its employees, and agents shall n discriminate against any person in employment public accommodation because of race, re gion, color, creed, gender identity, sex, national origin,\, sexual orientation, mental or phys' I disability, marital status or age. "Employment" shell include but not be limited to ring, accepting, registering, classifying, upgrading, or referring to employment. "Public Accom odation" shall include but not be limited to providing goods, services, facilities, privileges and ad antages to the public. Tenant shall remain in compliance with all requirements of 49 C.F.R. Pa 21, non -Discrimination in Fecal Assisted Programs of the Department of Transportation. ARTI E VII �n INSURANCE DAMA AND DESTRUCTION _< r- Jj S 7.01 Insurance. Tenant covenants and rees that it will at its own ezpenserprocu�and maintain general liability and casualty insu nce in a company or companies authorized to do business in the State of Iowa, in the followi g amounts: Type of Coverage Tenant covenants and agrees insurance in a company or co following amounts: Type of Coverage a. Com Q will at its authorized General Liability (1) BodyInjury & Property Damage expense procure and maintain general o business in the State of Iowa, in the Aggregate $1,6,00,000 $2,000,000 $1,OON000 $1,000,000 C. WorKAr's Compensation Insurance as required by Chapter 85, Code of Iowa. Tenant's insdance carrier shall be A rated or better by A.M. Best. Tenant shall name the Landlord as an Additional Insured. Tenant shall deliver to the Landlord, within thirty (30) days of execution of this Lease, Certificates of Insurance and copies of said policies, naming the Landlord as an Additional Insured. Tenant shall provide fifteen (15) days' notice to the Landlord before cancellation of said insurance. Governmental Immunities Endorsement 1. Non -waiver of Government Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Iowa City, Iowa as Additional Insured does not waive any of the defenses of governmental immunity available to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Iowa City, Iowa shall be r onsible for asserting any defense of governmental immunity, and may do so at any time d shall do so upon the time/ity ten equest of the insurance carrier. Nothing contain\ -Denial s endorsement shalen the carrier from asserting the defense of governmunity on behalf of ty f Iowa City. Denial of Coverage. surance carrier shall not deny coverage under this poinsurance carrier of deny any of the rights and benefits accruing to the City, Iowa undepolicy for reasons of governmental immunity unlessa urt of competediction has ruled in favor of the defense(s) of governmuni asserted by ty of Iowa City, Iowa. 5. No Other Cha a in Polihe insurance carrier and the City of Iowa City, Iowa agree that the aboveerreservaf governmental immunities shall not otherwise change or alter the coverage availabler the policy. d. Worker's Compensation Insqrance as required by Chapter 85, Code of Iowa N 7.02 Subrogation: Subrogati/nhre of to be waived unless a gpecial�rovision is attached to this lease. 7.03 Damage or Destruction. -; (a) Tenant's Obligatore. If any o 11 of the Tenant's Im�vetants III be damaged or destroyed any other cas alty, then Tenant shell,,4ve t(S ight, exercisable by giving we thereof to L dlord within fifteen (4) days after the determination therenate this Lease. Damaged means when the cost to repair the Improvementshe current value oft a Improvements as determined by the Landlord. (i) If the ase is not terminated, then Tenant all be obligated to repair and restore Tena in s Improvements, as hereinafter provid . Such repair or restoration shall be com enced within thirty (30) days after the da the casualty occurs, and shall be co leted within a reasonable period thereafter of to exceed twelve (12) months. If a Tenant shall fail to commence or com tete such repairs and restoration ork within the time periods set forth in the prec ing sentence, except for reas4 due to strike, shortage of labor or materials, war, or an act of God, Landlord shall have the right to immediately terminate this Lease. All insurance proceed collected for such damage or destruction shall be paid to a depositary approved by Landlord, Tenant, and any entity having a security interest in the Lease. Such insurance proceeds shall be made available to be applied toward the cost of such repairs or restoration. If the insurance proceeds shall be insufficient for said repair or restoration, Tenant shall make up the deficiency out of Tenant's funds. In all cases, due allowance shall be made for reasonable delay caused by adjustment of insurance claims, loss, strikes, governmental approval, labor difficulties or any cause beyond either party's reasonable control. (ii) If the Lease is terminated in accordance with this Section 11.02(a), then Tenant shall demolish the Tenant's Improvements and restore the Leased Premises to its condition prior to the Lease Commencement Date (restoration shall be modified to match the then -current surface condition of the surrounding Pedestrian Mall area), and the effective date of the Termination shall occur upon completion of such demolition and restoration work, as if such date were specified as the expiration date of the Term. In such event, the insurance proceeds shall be applied to pay for the demolition of the Tenant's Improvements and the restoration of the Leased Premises, as previously provided, and thereafter, Tenant shall receive any remaining proceeds. (b) Remedies. If Tenant shall not enter upon the repair or rebuilding, or the demolition and restoration, as the case may be, of the Tenant's Improvements within the period specifieb<in Section 7.03(a) and prosecute same thereafter with such dispatch as may be necessary to complete same within said period, then, in addition to whatever other remedies 1-69cilord may have either under received by a d then remaining in the he retained by Lan rd as security for the cont/nu of the Tenant's c enants and agreement Lease and then be id and retain the am from the failure on the rt of Tenant to com (c) Negotiation, SettleNent and the right to settle the amoun of the settlement of aloss in exces of without Landlord's prior written cons (d) Rent and Other Charges. Section 7.03(a), neither Rent nor damage or destruction or during th is so terminated, Rent and other cJ termination. this Lease, at law or in equity, the money nds of the Depositary shall be paid to and dperformance and observance by Tenant reunder, or Landlord may terminate this so held as liquidated damages resulting ith the provisions of Section 7.03(a). nt of Insurance Proceeds. Tenant shall have loss with the insurance carriers, but no final iusand Dollars ($50,000.00) may be made Jed the Lease is not terminated as provided in charges shall be reduced or abed following }s.of repair, restoration or robuilding� If the Lease sh'kll be paid through the ef[eetivjadate"q�puch ARTICLE Vlll 8.01 Binding Effect. The Leasehall be binding upon parties hereto and their respecti a heirs, personal repr 8.02 Assignments. Tenant m y not sell, transfer, or assign t 's Lease (either directly or indirectly) or any legal or ben icial in therein, or sublease al or any part of the Leased Premises without the prior ritten consent of the Landlord, wh h consent may not be unreasonably withheld. Tena shall give Landlord written notice of an roposed assignment or sublease of the Leased Pre ises, and such notice shall provide (a) the ame and address of the proposed assignee o sublessee, (b) the terms of the proposed assignment or a copy of the proposed sublease, ) the most recent financial statements of the proposed assignee or sublessee and (d) such ther information as Landlord may reasonably request. Any assignment or sublease made by enant without Landlord's consent in violation of this Section 8.02 shall be voidable at Landlord's option and shall constitute an Event of Default. Landlord's consent to any one assignment or sublease shall not be deemed a waiver of this Section 8.02 with respect to any subsequent assignment or sublease nor consent to any subsequent assignment or sublease. Absent the Landlord's agreement to the contrary, following assignment, whether with or without the Landlords' consent, Tenant will remain liable for all Lease obligations. N -1 C7 __�` hl trT� s , r 1 inure to th"enefit of the successors, and assigns. 8.02 Assignments. Tenant m y not sell, transfer, or assign t 's Lease (either directly or indirectly) or any legal or ben icial in therein, or sublease al or any part of the Leased Premises without the prior ritten consent of the Landlord, wh h consent may not be unreasonably withheld. Tena shall give Landlord written notice of an roposed assignment or sublease of the Leased Pre ises, and such notice shall provide (a) the ame and address of the proposed assignee o sublessee, (b) the terms of the proposed assignment or a copy of the proposed sublease, ) the most recent financial statements of the proposed assignee or sublessee and (d) such ther information as Landlord may reasonably request. Any assignment or sublease made by enant without Landlord's consent in violation of this Section 8.02 shall be voidable at Landlord's option and shall constitute an Event of Default. Landlord's consent to any one assignment or sublease shall not be deemed a waiver of this Section 8.02 with respect to any subsequent assignment or sublease nor consent to any subsequent assignment or sublease. Absent the Landlord's agreement to the contrary, following assignment, whether with or without the Landlords' consent, Tenant will remain liable for all Lease obligations. 9.01 RESERVED ARTICLE IX MORTGAGES ARTICLE X EASEMENTS N 10.01 Generally. This Lease and the rights granted to Tenant hereunder are �ikpressly made subject and subordinate to any and all existing easements on the Leased P,re(niwis, aenant shall not in any way act to alter, obstruct, disturb or otherwise.,,-, -17n said easements nor grant additional easements on or affecting the Leased Premises during t"rm of this Lease without Landlord's prior written consent.- �C-,)rn C M -o ARTICLE XI l! N DEFAULT - 11.01 Events of Nfault. The following shall constitute "Events of Default": (a) Moneta Tenant shall fail to pay obligation or pa ent required under continue for a penN of ten (10) days follc at the time required or any other monetary Lease when due, and such failure shall written notice from Landlord to Tenant; or (b) Non-performance. Tenant sha fail to observe or perform any of the other covenants, terms or co itiqnabl ned in the Lease, or a warranty made by Tenant shall fail to be accurate a d and such failure shall continue and not be cured for a period of thirty (30) written notice by Landlord to Tenant, provided that if the default is not resusceptible of being cured within thirty (30) days, an Event of Default shall othe Tenant fails to promptly commence such cure or fails thereafter to diligentluch efforts to completion; or (c) Bankruptcy: Receivers p. (i) Tenant flies a petition in bankruptcy or for reorganization or for an arra gemen pursuant to any present or future federal or state bankruptcy law or unde any sim r federal or state law, or is adjudicated a bankrupt or insolvent, or mak an assign ent for the benefit of its creditors, or admits in writing its inability to pay its ebts general[ as they become due, or if a petition or answer proposing the adj dication of Ten t as a bankrupt or a reorganization of Tenant under any present o future federal or st to bankruptcy law or any similar federal or state law is filed in any urt and such petition or answer is not discharged or denied within thirty (30) days aft r the filing thereof; or ' A receiver, trustee or liquidator of Tenant of all or substantia y all of the assets of Tena or of the Leased Premises or any portion thereof is appoi ed in any proceeding brou t by or against Tenant and is not discharged within thirty 30) days after such appointm nt or if Tenant consents to or acquiesces in such ap intment. 11.02 Landlord's Rights u o an Event of Default. Upon the occurr4pce of an Event of Default by Tenant, or at any time ther after during the continuance of such Ev nt of Default, Landlord may take any of the following actions and shall have the following rigtXs against Tenant: (a) Termination. Landlord may elect to terminate the Lease by giving no less than thirty (30) days' prior written notice thereof to Tenant, and upon the passage of time specified in such notice, this Lease and all rights of Tenant hereunder shall terminate as fully and completely and with the same effect as if such date were the date herein fixed for expiration of the Term and Tenant shall remain liable as provided in Section 11.02(c). (b) Eviction. Landlord shall have the immediate right upon Termination of this Lease to bring an action for forcible entry and detainer. (c) Tenant to Remain Liable. No termination of this Lease pursuant to Section 11.02(a), by operation of law or otherwise, and no repossession of the Leased Premises or any part thereof pursuant to Section 11.02(b) or otherwise shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, repossession or reletting. (d) Damages. In the event of any termination of this Lease or eviction from or repossession of the Leased Premises or any part thereof by reason of the occurrence of an Event of Default: (i) Rent and Charges. Tenant shall pay to Landlord the Rent and other sums and charges required to be paid by Tenant for the period to and including the end of the Term or expiration of an option period as provided for by Section 3.02 herein, whichever is later. (e) Rights Cumulative, Non -Waiver. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remed;9 and each and eve right and remedy shall be cumulative and in addition to any oVr rigor remedy gi n hereunder or now or here fter existing at law or in equ r� statA. In addition tot other remedies provide in this Lease, Landlord sha entjtlad, e extent permitte by applicable law, to i tunctive relief in case of the vioMition, Watte ted or threatened Woation, of any of the ovenants, agreements, conditiar4�gr psmvisiof this Lease, or to decree compellin performance of this Lease, or tv: att ot�Ner r�y allowed to Landlord t law or in equi :v (f) Landlord's Right o Cure. Tenant fails to pay any utilities charges described in Article IV, insurance pr ium described in Article VIII, the cost of any of the repairs or maintenance required to be a e by Tenant pursuant to the Lease or any other charges, costs or expenses required to a paid under the Lease, Landlord shall have the right, but not the obligation, to make all ch payments, and in addition to its other remedies under this Article XI, Landlord shall av the option of requiring Tenant to repay to Landlord the amount of such payments (w ich s all be deemed additional rent hereunder) on demand with interest after demand at 10% rat er annum. (the "Default Rate"). (g) Late Charge, Defau Rate. If Lan ord does not receive payment of any installment of Rent or any other sum r charge requir d to be paid by Tenant to Landlord hereunder within ten (1 01) days after re same falls du (regardless of whether Tenant has received notice of the delinquencyl, Landlord may imp e a late charge equal to five percent (5%) of the amount of such d linquent sum and if su sum is not received by Landlord within thirty (30) days of its d e date, such sum shall,\in shall,'addition, bear interest at the Default Rate from the due date until the date paid. (h) Landlord's Lio. Landlord shall have a lien aikainst Tenant's leasehold estate, Tenant's Improveme is and all property of Tenant loc ed at the Leased Premises, to secure any obligati ns of Tenant to Landlord arising pu uant to the provisions of this Lease. 11.03 No Implied Wavir. The failure of Landlord to insist upon strict Oe fprmance of any of the covenants or conditions of the Lease, or to exercise any options herein conferred in any one or more instances shall not be construed as a waiver or relinquishment for the future of any such covenant, condition, or option, but the same shall be and remain in full force and effect. The receipt by Landlord of any Rent or any other sum payable hereunder with knowledge of the breach of any covenants or agreements contained herein shall not be deemed a waiver of such breach. ARTICLE X11 ABANDONMENT 12.01 Abandonment. Tenant shall not vacate or abandon the Leased Premises at any time during the Term of this Lease. If Tenant shall vacate or abandon the Leased Premises, the right of possession shall, at the option of Landlord, revert to Landlord and Tenant shall lose all right to possession of the Leased Premises and Tenant's Improvements; however, Tenant shall otherwise remain liable on this Lease. Landlord shall then, without further notice, have the remedies provided for in Article XI herein. 14.01 Generally. To the extent not expressly prohibited by law, Tenant agrees to indemnify, save, protect and hold forever harmless, Landlord and Landlord's officers, employees, and agents (together, "Lars rd's Indemnitees'), from and against all losses, damages, costs, claims and liabilities, including, ithout limitation, court cost and reasonable attorney's fees and expenses, which Landlord's Ind nitees, or any of them, may become liable or obligated by reason of, resulting from, or in connection with: (a) any [nj to or death of persons and damage to, or theft, misappropriation or loss of.., property occurring n or about the Leased Premises or the Property arising from Tenant's use and occupa/at the Leased Premises and/or the conduct of its business; (b) any activity, work or thin, permitted or suffered by Tenant in or about the Leased Premises, including all liabilitiesry kind or description which may arise out of or in connection therewith; and (c) any bredefault on the part of Tenant in the payment or performance of any covenant, agreemobligation on the part of Tenant to be paid or performed pursuant to the terms of this Ler any other act or omission of Tenant, its agents or employees. In case of any action or probrought against Landlord's Indemnitees, or any of them, by reason of any such claims, Tcovenants to defend such action or proceeding by counsel reasonably satisfactory to Land[/or any particular Landlord's Indemnitee. EUT 15.01 Access by Landlord. (a) Landlord or Landl d's agents, representa'ves or employees shall have the right at any time upon at leas twenty-four (24) hours o 1 notice (except in emergencies, in which case only such n ice, if any, as may be feasib under the circumstances shall be required) to enter up n the Leased Premises and Tenant's Improvements for the purposes of ins2oLandlord's the same, determining whether his Lease is being complied with, curing mitted herein) any default by Ten Int and showing the Leased Premises to proLeasehold Mortgagees. (b) Landlord agents, representatives, or empl ees shall have the right whenever necend without notice to enter upon the Le sed Premises for the purpose of reor maintaining any of Landlord's pro erty adjacent to or abutting the Leased Premises. 15.02 Gender and Number. Words of any gender used in the Lease shall be held to include any other gender, and words in the singular shall be held to include the plural, where required. 15.03 Notices. Notices, statements and other communications to be given under the terms of the Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return N O ARTICLE XIII E5 - ENVIRONMENTAL ;5 I CONDITIONS C-) ro 13.01 RESERVED ._<rn a M �� ARTICLE XIV N TENANT'S INDEMNIFICATION v 14.01 Generally. To the extent not expressly prohibited by law, Tenant agrees to indemnify, save, protect and hold forever harmless, Landlord and Landlord's officers, employees, and agents (together, "Lars rd's Indemnitees'), from and against all losses, damages, costs, claims and liabilities, including, ithout limitation, court cost and reasonable attorney's fees and expenses, which Landlord's Ind nitees, or any of them, may become liable or obligated by reason of, resulting from, or in connection with: (a) any [nj to or death of persons and damage to, or theft, misappropriation or loss of.., property occurring n or about the Leased Premises or the Property arising from Tenant's use and occupa/at the Leased Premises and/or the conduct of its business; (b) any activity, work or thin, permitted or suffered by Tenant in or about the Leased Premises, including all liabilitiesry kind or description which may arise out of or in connection therewith; and (c) any bredefault on the part of Tenant in the payment or performance of any covenant, agreemobligation on the part of Tenant to be paid or performed pursuant to the terms of this Ler any other act or omission of Tenant, its agents or employees. In case of any action or probrought against Landlord's Indemnitees, or any of them, by reason of any such claims, Tcovenants to defend such action or proceeding by counsel reasonably satisfactory to Land[/or any particular Landlord's Indemnitee. EUT 15.01 Access by Landlord. (a) Landlord or Landl d's agents, representa'ves or employees shall have the right at any time upon at leas twenty-four (24) hours o 1 notice (except in emergencies, in which case only such n ice, if any, as may be feasib under the circumstances shall be required) to enter up n the Leased Premises and Tenant's Improvements for the purposes of ins2oLandlord's the same, determining whether his Lease is being complied with, curing mitted herein) any default by Ten Int and showing the Leased Premises to proLeasehold Mortgagees. (b) Landlord agents, representatives, or empl ees shall have the right whenever necend without notice to enter upon the Le sed Premises for the purpose of reor maintaining any of Landlord's pro erty adjacent to or abutting the Leased Premises. 15.02 Gender and Number. Words of any gender used in the Lease shall be held to include any other gender, and words in the singular shall be held to include the plural, where required. 15.03 Notices. Notices, statements and other communications to be given under the terms of the Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return receipt requested, and addressed as follows: If to Landlord: City of Iowa City ATTN: City Manager 410 E. Washington St. Iowa City, Iowa 52240 With Copies to: City Attorney 410 E. Washington St. Iowa City, IA 52240 If to Tenant: Bread Garden of Iowa City,L.C. ATTN: General Manager 225 S. Linn St. Iowa City, IA 52240 15.04 Applicable Law. The Laws of the State of Iowa shall govern the validity, performance and enforcement of this Lease. 15.05 Partial Invalidity. If any provision of the Lease shall be invalid or unenforceable it shall not affect the validity or enforceability of any other provisions of the Lease. 15.06 Heading. Headings as to the contents of particular sections herein are inserted only for convenience, ah are in no way to be construed as a part of the Lease or as a limitation on the scope of the particuiX section to which they refer. 15.07 Binding Effect. covenants, conditions a agreements contained in the Lease shall bind, apply to and inure to t benefit of the parties h _to and their respective successors. 15.08 No Partnership. It is exp ssly understood that Landlord shall not be construed or held to be a partner, joint venturer or asso 'ate of Tenant n the conduct of Tenant's business and that the relationship between the parties h etc is an shall at all times remain that of landlord and tenant. 15.09 Holding Over. The Lease shall termi without further notice at expiration of the Term. Any holding over by Tenant or any party claimin , through or under Tenant after expiration shall not constitute a renewal or extension or giv/eercise na any rights in or to the Leased Premises. In the event of any holding over, Landlord may y and all remedies available to it under Article XI herein or at law or in equity to recoveression the Leased Premises, and for damages. 15.10 Time is of the Essence. Time is fif the essence in Elvis Lease. 15.11 Entire Agreement; Merger The Lease contains all a agreements and conditions made between the parties hereto with re ect to the matters contain herein and may not be modified orally or in any other manner thatdhave an Agreement in writing sign by all the parties hereto or their respective successors. All prioren and oral understandings a agreements shall be deemed to have merged into the Lease a no further force and effect. 15.12 Counterparts. deemed to be an original same instrument. Lease may be executed in counterpark each of which shall be all of which shall, when taken together, cbpstitute but one and the C! :52 J a "-< �n , N r �r 3 N`r (M''j `" N Landlord: CITY OF IOWA CITY Geoff Fruin, City Manager CITY ACKNOWLEDGMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) Tenant: BREAD GARDEN OF IOWA CITY, L.C. James Mondanaro, President On this of 2017, efore me, the undersigned, a notary public in and for he State of Iowa, personally appeared eoff Fruin, to me personally known, who being by me my sworn, did say that he is the ity Manager of said municipal corporation executing the wit ' and foregoing instrument; that a seal affixed thereto is the seal of said municipal corporation; that said instrument was sig ed and sealed on behalf of said municipal corporation by authority of its City Council; and at the City Manager acknowledged that the execution of said instrument is his voluntary act d deed and that he is empowered to bind said corporation. App ved: City Attorney BREAD GARDEN OF IOWA CITY. STATE OF IOWA ) ) ss JOHNSON COUNTY ) On this day of _ Notary Public in and for personally known, who beir of Iowa City, L.C., and a and deed, and that c Br a Notary Public in and for the 2017 (e State of Iowa, personally appeared JE I by me duly sworn, did identify himself as F owledge the execution of the instrument to Garden of Iowa City, L.C. Notary Public in and for the State of Iowa me, the undersigned, a es Mondanaro, to me e 'dent of Bread Garden be his own voluntary act N �n ;,> N me, the undersigned, a es Mondanaro, to me e 'dent of Bread Garden be his own voluntary act This Grou d Lease (the "Lease") is made as of the day of _ 2017, by and between the City of low City ("City" or "Landlord") and Bread Garden of Iowa City, L.C. ("Bread Garden" or "Tenant") RECITALS A. The City of to City is the owner of the fee title to premises ituated in the City of Iowa City, State of to commonly known as the Iowa City Ped trian Mall. Landlord has the authority to lease g\ground B. Tenant is Bread GaIowa City, L.C. C. The parties desire nto a ground lease within the PedestI as depicted on purposes of constra one story gree Tenant's Bread Gar t grocery and r cafe in 2017. D. Tenant has indicatingne and abI" ground in accordh stan rds a to sufficient term on snd area. it to which Landlord will lease ground A (the "Leased Premises") for the structure for use in association with it business, or for use as a sidewalk /to properly keep, maintain, and improve said tat by Landlord, if granted a lease of In consideration of the foregoing an th mutual covenants hereinafter contained, and for other good and valuable consideration the ceipt and sufficiency of which are hereby acknowledged by the parties, Landlord a Tenant ereby agree as follows: ARTICLE GRANT 1.01 Grant. Landlord hereby /etforth. o Tenant the Lea ed Premises in accordance with the terms and conditions hereinafter ARTICLE II 2.01 Condition of Lease/Premises. Tenant is taking possession f the Leased Premises in an "as -is" condition as oft execution and delivery of this Lease. Lan ord shall have no obligation to performany improv reis alterations, additions, repairs or replace ents thereto except those specifically defined in his lease. ARTICLE III TERM 3.01 Initia/rm. The term of this Lease shall commence on (the "Lease Commence") and shall continue thereafter until (t a"Term") unless sooner termprovided herein. 3.02 Options to renew. There are no options to renew included in this lease. ARTICLE IV RENT AND UTILITIES 4.01 Annual Base Rent. Commencing on and continuing on the first day of each succeeding month, Tenant shall pay to Landlord, at the address specified in Section 15.03, or at such other place as Landlord may from time to time hereinafter designate to Tenant in writing, annual rent ("Annual Base Rent") as follows: Annual Base Rent: $14.70 per square foot per year. For the period of - February 28, 2018, the annual fee will be prorated, with payment due upon execution of this Lease. Subsequent annual payments will be due March 1s' of each year. (a) Definitions. For the purposes of this provision, the following definitions shall apply: 1) the term "Consumer Price Index" or "CPI" shall mean the U.S. Bureau of L bor Statistics Consumer Price Index for all Urban Consumers — U.S. City Arage, seasonally adjusted (1982-1984=100). (2) a term "Current CPI" shall mean the annual av rage of Consumer Price Indic4 for the calendar year immediately precedin the Change Date (3) the erm "Base CPI" shall mean the annual a erage of Consumer Price Indices r the calendar year immediately prec ing the year for which the Current CI is determined. (4) the term "Change Date" shall mean Marc 1�` of every fifth year beginning 2022. (b) Adjustment. Eff tive on the Change te, the Annual Base Rent hereunder shall escalate bas%do, the followinrmula and illustrated by the following example: (1) For x Rent] + Rent = Escalated Rent /revision Example-- Ass me Change Date is 3/1/13. Assume the annual base nt is 9,826.95. Assume the Base CPI (annual aver a CPI for 011) is 225.114 and that the Current CPI (an ual average I for 2012) is 228.537. Annual base rent b ginning March 1, 013 would be $9,976.37 ((228.537-225.114) X 9,826.95] + $9,826.95 = $9,976.37 225.114 (c)putations. No subsequent adjustments or recomputations, or otherwise, shall be made to he Consumer Price Index due to n that may later be made to a first published figure of the Price Index for any month.(d)ecrease. In no event shall the Annu I Base Rent for a given year n the Annual Base Rent for the prece 'ng year. No Waiver. Any delay or failure of Landlord in com uting or billing Tenant for the escalation of Annual Base Rent as provided he in shall not constitute a waiver of or in any way impair the continue obligatioof Tenant to pay such escalation of Annual Base Rent. (f) Change in Index. In the event that the Consumer Pricedex ceases to use 1982-1984=100 as the basis of calculation the new CPI stablished by the U.S. Bureau of Labor Statistics Consumer Price Ind4 for all Urban Consumers — U.S. City Average, seasonally adjusted, with different base year shall be used. 4.02 Net Lease. This Lease in every sense shall be without cost to the Landlord for the development, maintenance, and improvement of the Leased Premises. It shall be the sole responsibility of the Tenant to keep, maintain, repair and operate the entirety of the Leased Premises and all improvements and facilities placed thereon at Tenant's sole cost and expense 4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing throughout e Term, Tenant shall pay or cause to be paid all charges, assessments, or taxes for gas, electri ity, water, sewer, telephone and all other utility services incurred in connection with Tenant's us and occupancy of the Leased Premises. . 4.04 Taxes. ommencing with the Lease Commencement Date an continuing throughout the Term, Tenant sh II pay any and all property taxes assessed on theL ased Premises when they become due. ARTICLE V USE AND OCCUPANCY 5.01 Use. Tenant shall us the Leased Premises solely for a construction, use, and support of Tenant's grocery and restaur nt business. The Leased remises shall be used solely as an enclosed space for patrons of Want's grocery and rest rant business to sit and consume food and drink. Tenant may also use a Leased Premises a sidewalk cafe, but only in 2017. If the Leased Premises is used as a side alk cafe, Tenant hall comply with the Sidewalk Cafe Policy, attached and marked as Exhibit B, nd incorpora Tenant/ herein by this reference. In the event of conflict between Exhibit B and this Le e, this Le se shall prevail. For example, the Rental rates contained herein shall prevail over those rticula d in Exhibit B. 5.02 Construction. Tenant shall use its seating area on the Leased Premises nc applicable codes governing c required before issuance of a and all payments hereunder substantial improvements by I of the construction in accords failure by Tenant to complete an event of Default and Landl construction of Tenant's Imp improvements to the Pede ri construction does not interfere build shall t efforts to complete the construction of an enclosed a er than July 1, 2018. Tenant shall comply with all ofa enclosure. Design review by the City will be mit. enant's interest under this Lease shall terminate eited i Tenant does not complete construction of the lece er 31, 2018. "Substantial improvements" means completion ncSy with the plans a d specifications approved by the City. The u stantial improvemen by December 31, 2018 shall be considered rd shall have available II remedies set forth herein. In the event vements are being made,qt the same time that Landlord is making an Mall, Tenant shall coor nate with Landlord to ensure Tenant's with Landlord's construction. 5.03 Licenses. TenPt shall at Tenant's expense, obtaind maintain during the Term of this Lease all licenses orpermits necessary for the operation of Te ant's use of the Leased Premises as defined it secti 5.01 herein and Tenant shall comply wi any other applicable rules and regulations gover ' g the operation of Tenant's use of the Leas d Premises as required by any federal, state, or cal government or regulatory authority or agency. 5.04 Zonin Tenant shall, at tenant's expense, obtain any and al ecessary zoning approvals and permits r quired by local law or ordinance. 5.05 0.) Nuisances. No act constituting a nuisance as defined der the provision of Chapter 657, Code of Iowa, City Code, or the common law of Iowa sh II be permitted on the Lease Premises. (b) Signs. All signage shall comply with City ordinances and be\pproved by the Landlord. ARTICLE VI MAINTENANCE; COMPLIANCE 6.01 Improvements and Personal Property. (a) Title to Tenant's Improvements. Any and all real property improvements, alterations, modifications or additions on or to the Leased Premises made by Tenant during the Term ("Improvements") shall be and remain the property of Tenant throughout the Term. Surrender. Upon expiration of the Term or termination of the Lease, whether breach, default, expiration of Lease, or otherwise, Tenant shall ther7en-current pon be required to ve all Improvements and match the Leased Premises to the surface 'idi n of the surrounding Pedestrian Mall area. (c) oval of Personal Property. All items of furniture, furni ings, inventories and other perso I property acquired by Tenant for use on t Leased Premises (the "Personal Pro rtY") shall be and remain the property of Tena regardless of termination of the Lease expiration of the Term. Tenant shall emove from the Leased Premises all Perso al Property at or before the terminal n or expiration of the Lease. If Tenant fails to re ve such items within such perlp6,then (i) such items shall be deemed abandoned b Tenant and shall become a property of Landlord, and (ii) Landlord shall have the ight to remove and disp a of such items as Landlord, in its sole discretion, sees it an o charge Tenant the c t of doing so. 6.02 RESERVED 6.03 Liens. Tenant shall not cause or emit against the Landlord's interest in the ea: connection with any construction, alters performs or causes to be performed on th connection with the planning, construction all Tenant performs or causes to be perform d on laborers or materialmen shall be filed a inst, : the Tenant's Improvements or any pa thereof liens to be attached to, placed on or filed Premises or Tenant's Improvements in clition, repair or restoration work Tenant :d Premises. If, however, at any time, in in, demolition, repair or restoration work Leased Premises, any liens of mechanics, ed to or placed on the Leased Premises, n to work described above, Tenant shall, at its expense, cause the same t be discharged,\ee payment, bonding or otherwise as provided by law, within fifteen (15) days after Tenanteives notice that the lien was filed, except for such liens that may ha been incurred by ord arising from Landlord's actions. Nothing herein contained shall in ny way prejudice thet of Tenant to contest in good faith to final judgment or decree an such lien prior to payth reof, provided that Tenant shall (a) furnish and keep in el ec a surety bond of a respble a d substantial surety company, acceptable to Landlord, in amount sufficient to pay% of a amount of such contested lien claim with all interest ereon and costs and expewith re ect thereto, or (b) provide other security reasonabl satisfactory to Landlord. Upinal dete ination of the validity of such contested lien or aim, Tenant shall immediately the amoun finally determined to be due thereon includin any judgment or decree rend in conne 'on therewith, with all property costs and c arges and shall cause any such lio be released f record without cost to Landlord and du ng the pendency of any such conteenant shall sa and keep Landlord harmless from an claim or loss by reason thereof. Tes failure to comp with the terms of this Section 6.0 shall be considered a Default under Lease, and Landl d shall have the righttoanyan all remedies against Tenant asset forth ction 11.02 herein. 6.04 Mai enance. Tenant shall, throughout the Term, at its sole cost and expe se, maintain the Leas Premises and all buildings and improvements at any time erected ereon, any unimpr ed portion of the Leased Premises and all Personal Property installed ther ' , in good repai and in a safe, clean, sightly and sanitary condition. Tenant shall clear any sn w or ice accumulation on the adjoining property of the Landlord which results from the pres nce of Tenant's structure. In the event Tenant fails to do so to the satisfaction of Landlord, Landlo may require that Tenant, at Tenant's expense, install improvements to address the snow and/o ice accumulation. In the event that Tenant, in Landlord's reasonable judgment, fails to comply 'th its repair and maintenance obligations under this Section 6.04, Landlord may, but shall not b obligated to, in addition to its remedies under Article XI, perform all repairs and maintenance which in Landlord's reasonable judgment is required to bring the Leased Premises, Tenant's Improvements and Personal Property into compliance with the repair and maintenance standards of this Section 6.04, and charge the cost to Tenant. 6.05 Compliance with Legal Requirements. Tenant shall, throughout the Term, at its s cost and expense, promptly comply with all applicable laws, ordinances an�ceaoptplicable ations of govern tal entities having jurisdiction over the Leased Premises (including,limited to all local zo 'ng use restrictions and requirements), and all policies of ins u to Leased Prem es (collectively, "Legal Requirements'). Tenant shall not nduct or permit any person to condu t any unlawful activity on the Leased Premises or any a or activity in violations of (a) any Legal equirements, including but not limited/1, r other land use laws or ordinances, or (b) y private restrictive covenants appliceal Estate. Furthermore, Tenant shall not taus or allow any activity which causes or noise pollution, which would violate any Le I Requirements or which woulconstitute a nuisance or reasonably objectionable intrusion into or interference withy surrounding property. 6.06 Non -Discrimination. enant covenants, in con ' eration of the right to lease property from Landlord, that Tenant, its a loyees, and agents all not discriminate against any person in employment or public accomm ation because of ace, religion, color, creed, gender identity, sex, national origin, sexual orient 'on, mental r physical disability, marital status or age. "Employment" shall include but of be li ' ed to hiring, accepting, registering, classifying, upgrading, or referring to employme providing goods, services, facilities, in compliance with all requirements Programs of the Department of Trar 7.01 Insurance. Tena maintain general liability business in the State of I Type of Coverage Tenant covenants insurance in a following amoun a is Accommodation" shall include but not be limited to es and advantages to the public. Tenant shall remain C.F.R. Part 21, non -Discrimination in Federal Assisted LE VII nf ovenants and agre s that it will at its own expense procure and d casualty insurance i a company or companies authorized to do a, in the following amoun\owne agrees that it will at its nse procure and maintain general or companies authorizedsiness in the State of Iowa, in the �. Comprehensive General Liability Each 06currence Aggregate (1) Bodily Injury & Property Damage $1,000, 0 $2,000,000 b. Excess Liability $1,000,000 $1,000,000 C. Worker's Compensation Insurance as required by Chapter 85, de of Iowa. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant sha ame the Landlord as an Additional Insured. Tenant shall deliver to the Landlord, within thirty (30)'days of execution of this Lease, Certificates of Insurance and copies of said policies, naming the Landlord as an Additional Insured. Tenant shall provide fifteen (15) days' notice to the Landlord before cancellation of said insurance. Governmental Immunities Endorsement 1. Non -waiver of Government Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Iowa City, Iowa as Additional Insured does not waive any of the defenses of governmental immunity available to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. 2\dby Claims Coverage. The insurance carrier further agrees that thi policy of shall cover only those claims not subject to the defense of go ernmental under the Code of Iowa Section 670.4 as it now exists and a it may be from time to time. Those claims not subject to Code of Iowa Secti 670.4 shall d by the terms and conditions of this insurance policy.. ssertion of Government Immunity. The City of Iowa ity, Iowa shall be ble fo asserting any defense of governmental immunity, d may do so at any shall so upon the timely written request of the in rance carrier. Nothing in this ndorsement shall prevent the carrier fro asserting the defense of ental immu 'ty on behalf of the City of Iowa City. 4. Non -Denial Coverage. The insurance carr r shall not deny coverage under this policy and the insura ice carrier shall not deny an of the rights and benefits accruing to the City of Iowa City, wa under this policy f reasons of governmental immunity unless and until a court of mpetent jurisdictio as ruled in favor of the defense(s) of governmental immunity assert by the City of 1 a City, Iowa. 5. No Other Change in Nplicy. T insurance carrier and the City of Iowa City, Iowa agree that the above prese tion f governmental immunities shall not otherwise change or alter the coverage availab[Zkoder the policy. d. Worker's Compensation Insyrfancq as required by Chapter 85, Code of Iowa. 7.02 Subrogation: Subrogation righy� are not tp be waived unless a special provision is attached to this lease. �� \ 7.03 Damage or Destruction (a) Tenant's Obli tion to Restore. If any or all f the Tenant's Improvements shall be damaged or destro ed by fire or any other casual then Tenant shall have the right, exercisable by giv' g written notice thereof to Lan rd within fifteen (15) days after the determinatio thereof, to terminate this Lease. D maged means when the cost to repair the Impr vements exceeds the current value of the provements as determined by the Landlord yri)store If the Lease is not terminated, then Tenant sh I be obligated to repair and Tenant's Improvements, as hereinafter provided. Such repair or restoration shall be commenced within thirty (30) days after the date he casualty occurs, and shall be completed within a reasonable period thereafter n6kto exceed twelve (12) months. If the Tenant shall fail to commence or comp) to such repairs and restoration work within the time periods set forth in the precedIRg sentence, except for reasons due to strike, shortage of labor or materials, war, ran act of God, Landlord shall have the right to immediately terminate this Lea . All of proceeds collected for such damage or destruction shall be paid adepositary approved by Landlord, Tenant, and any entity having a security i rest in the Lease. Such insurance proceeds shall be made available to be appliedward the cost of such repairs or restoration. If the insurance proceeds shall be ins fficient for said repair or restoration, Tenant shall make up the deficiency out of Te nt's funds. In all cases, due allowance shall be made for reasonable delay caused by adjustment of insurance claims, loss, strikes, governmental approval, labor difficulties or any cause beyond either party's reasonable control. (ii) If the Lease is terminated in accordance with this Section 11.02(a), then Tenant shall demolish the Tenant's Improvements and restore the Leased Premises to its condition prior to the Lease Commencement Date (restoration shall be modified to match the then -current surface condition o the surrounding Pedestrian Mall area), and the effective date of the Terminal shall occur upon completion of such demolition and restoration work, as if date were specified as the expiration date of the Term. In such event, the in rance proceeds shall be applied to pay for the demolition of the Tenant's Impr ements and the restoration of the Leased Premises, as previously provide and thereafter, Tenant shall reeive any remaining proceeds. (b) Reme . If Tenant shall not enter upon t repair or rebuilding, or the demolition and restoration, a the case may be, of the T nant's Improvements within the period specified in Section 3(a) and prosecute sa a thereafter with such dispatch as may be necessary to complete me within said eriod, then, in addition to whatever other remedies Landlord may h e either and this Lease, at law or in equity, the money received by and then remai ' g in the ands of the Depositary shall be paid to and retained by Landlord as security r the ontinued performance and observance by Tenant of the Tenant's covenants and a e ments hereunder, or Landlord may terminate this Lease and then be paid and retai a amount so held as liquidated damages resulting from the failure on the part of Ten t t comply with the provisions of Section 7.03(a). (c) Negotiation, Settlemen and Adjus ent of Insurance Proceeds. Tenant shall have the right to settle YrRent of the dasualt loss with the insurance carriers, but no final settlement of a lass of Fifty Th sand Dollars ($50,000.00) may be made without Landlord'sen consent thereto. (d) Rent andarges. Provided the ease is not terminated as provided in Section 7.03(a), nt nor other charges all be reduced or abated following damage or destruring the period of repair, storation or rebuilding. If the Lease is so terminated, other charges shall be pai through the effective date of such termination. ARTICLE VIII ASSIGNMENT AND SUBLETTING 8.01 Binding Eff ct. The Lease shall be binding upon and shall iNre to the benefit of the parties hereto arId their respective heirs, personal representatives, s ccessors, and assigns. 8.02 Assi n nts. Tenant may not sell, transfer, or assign this Lea a (either directly or indirectly) or y legal or beneficial interest therein, or sublease all or an part of the Leased Premises wi out the prior written consent of the Landlord, which con ent may not be unreasonab withheld. Tenant shall give Landlord written notice of any propos d assignment or sublease the Leased Premises, and such notice shall provide (a) the name nd address of the prop sed assignee or sublessee, (b) the terms of the proposed assignm t or a copy of the pro osed sublease, (c) the most recent financial statements of the propose assignee or suble ee and (d) such other information as Landlord may reasonably request. Any ssignment or lease made by Tenant without Landlord's consent in violation of this Section 8. shall be voidable at Landlord's option and shall constitute an Event of Default. Landlord's conse t to any one assignment or sublease shall not be deemed a waiver of this Section 8.02 with respec o any subsequent assignment or sublease nor consent to any subsequent assignment or suble se. Absent the Landlord's agreement to the contrary, following assignment, whether with or without the Landlords' consent, Tenant will remain liable for all Lease obligations. 9.01 RESERVED ARTICLE IX ARTICLE X 10.01 Generally. This Lease and the rights granted to Tenant I �Wkiect and subordinate to any and all existing easements on the shaTN,,not in any way act to alter, obstruct, disturb or o easem6R,ts nor grant additional easements on or affecting the Leq this Lease -Without Landlord's prior written consent. / ARTICLE XI DEFAULT 11.01 Events of Default.'T-,e following shall (a) Monetary. TenaRt shall fail tore e obligation or payment r wired uns continue for a period of ten 0) daysn (b) Non-performance. Ten;: covenants, terms or conditions shall fail to be accurate and c for a period of thirty (30) d s that if the default is not r sc and are expressly made ri d Premises, and Tenant ise impair any of said Premises during the term of "Events of Default": i at the time required or any other monetary Lease when due, and such failure shall written notice from Landlord to Tenant; or shall fail to observe or perform any of the other an Event of Default shall ccur only er or fails thereaftto dilig ntly pursue ned in the Lease, or a warranty made by Tenant and such failure shall continue and not be cured written notice by Landlord to Tenant, provided usceptible of being cured within thirty (30) days, the Tenant fails to promptly commence such cure h efforts to completion; or (c) Bankruptcy: eceivership. If (i) enant files a petition in bankruptcy or for reorganization or f r an arrangement pu want to any present or future federal or state bankruptcy I or under any similar deral or state law, or is adjudicated a bankrupt or insol nt, or makes an assignmen for the benefit of its creditors, or admits in writing its inabilit to pay its debts generally aX they become due, or if a petition or answer propo ng the adjudication of Tenant as a bankrupt or a reorganization of Tenant under ny present or future federal or stat or state law i filed in any court and such petition within thirty (30) days after the filing thereof; or Tenant of I or substantially all of the assets of Te portion t ereof is appointed in any proceeding 1 dischar d within thirty (30) days after such aP1 acquie es in such appointment. bankruptcy law or any similar federal answer is not discharged or denied (ii) receiver, trustee or liquidator of nant r of the Leased Premises or any roug by or against Tenant and is not ointme t or if Tenant consents to or 11.02 Land 6rd's Rights upon an Event of Default. Upon the occurre a of an Event of Default by Tenant, orfit any time thereafter during the continuance of such Eve t of Default, Landlord may take any fif the following actions and shall have the following rights against Tenant: (a) Termination. Landlord may elect to terminate the Lease by giving no less than thirty (30) days' prior written notice thereof to Tenant, and upon the pssage of time specified in such notice, this Lease and all rights of Tenant hereunder shal qrminate as fully and completely and with the same effect as if such date were the date. herein fixed for expiration of the Term and Tenant shall remain liable as provided in Section 11.02(c). (b) Eviction. Landlord shall have the immediate right upon Termination of this Lease to bring an action for forcible entry and detainer. (c) Tenant to Remain Liable. No termination of this Lease pursuant to Section 11.02(a), by operation of law or otherwise, and no repossession of the Leased Premises or any part thereof pursuant to Section 11.02(b) or otherwise shall relieve Tenant of its liabilities and obligations hereunder, all of which sha urvive such termination, repossession or reletting. // (d Damages. In the event of any termination of this Lea r eviction from or repos ssion of the Leased Premises or any part thereof by re of the occurrence of an Eve\Rentnd lt: (i) Charges. Tenant shall pay to LandltRent and other sums and chargeto be paid by Tenant for the period to including the end of the Term or expiroption period as provided for by S t' n 3.02 herein, whichever is later. (e) Rights Cum ative, Non -Waiver. No ri or remedy herein conferred upon or reserved to Landlord ' intendeVbe clu ' of any other right or remedy, and each and every right and r edy sm eand in addition to any other right or remedy given hereundr r noa existing at law or in equity or by statute. In addition to the other reme ies this Lease, Landlord shall be entitled, to the extent permitted byapplicablctive relief in case of the violation, or attempted or threatened violation, of an nants, agreements, conditions or provisions of this Lease, or to a decree comormance of this Lease, or to any other remedy allowed to Landlord at law or in (f) Landlord's Right to C If nant fails to pay any utilities charges described in Article IV, insurance to i s descr ed in Article VIII, the cost of any of the repairs or maintenancerequired to made by Te nt pursuant to the Lease or any other charges, costs or expenses requi to be paid under the Lease, Landlord shall have the right, but not the obligation, to e all such paymentsk,and in addition to its other remedies under this Article XI, Landl shall have the option ofrequiring Tenant to repay to Landlord the amount of such pa ents (which shall be deemed additional rent hereunder) on demand with interest aft7r, mand at 10% rate per annum. he "Default Rate"). (g) Late C , Default Rate. If Landlord does nofreceive payment of any installment of Rent or an other sum or charge required to be paid by Tenant to Landlord hereunder within ten (),b) days after the same falls due (regardless of whether Tenant has received notice of t e delinquency), Landlord may impose a late charge equal to five percent (5%) of thea ount of such delinquent sum and if such sum is not received by Landlord within thirty(r) days of its due date, such sum shall, in addition, bear interest at the Default Rate om the due date until the date paid. (h) Landlord's Lien. Landlord shall have a lien against Tenant's leasehold estate, T nont's Improvements and all property of Tenant located at the Leased Premises, to ecure any obligations of Tenant to Landlord arising pursuant to the provisions of this 11.03 DQo Implied Waver. The failure of Landlord to insist upon strict performance of any of the covenants or conditions of the Lease, or to exercise any options herein conferred in any one or more instances shall not be construed as a waiver or relinquishment for the future of any such covenant, condition, or option, but the same shall be and remain in full force and effect. The receipt by Landlord of any Rent or any other sum payable hereunder with knowledge of the breach of any covenants or agreements contained herein shall not be deemed a waiver of such breach. ARTICLE XII ABANDONMENT 12.01 Abandonment. Tenant shall not vacate or abandon the Leased Premises at any ti during the Term of this Lease. If Tenant shall vacate or abandon the Leased Premises, a right of possession shall, at the option of Landlord, revert to Landlord and Tenant shall I e all right to possession of the Leased Premises and Tenant's Improvements; however, Tena shall otherwise remain liable 4 this Lease. Landlord shall then, without further notice, have th emedies provided for in Article XI rein. 13.01 RESERVED 14.01 Generally. To the extei save, protect and hold forever (together, "Landlord's Indemni liabilities, including, without lirr which Landlord's Indemnitees, resulting from, or in connection ARTICLE XIII ENVIRONMENTAL ARTICLE XIV expressly prited by law, Tenant agrees to indemnify, s. Landlord Znd Landlord's officers, employees, and agents from or anyN with: (a) misappropriation or loss of property occ arising from Tenant's use and occup nc) business; (b) any activity, work or t ng d Leased Premises, including all liabi ies of connection therewith; and (c) an breach performance of any covenant, greemen' and gainst all losses, damages, costs, claims and c96ts and reasonable attorney's fees and expenses, m, may become liable or obligated by reason of, injury to or death of persons and damage to, or theft, ing in or about the Leased Premises or the Property of the Leased Premises and/or the conduct of its permitted or suffered by Tenant in or about the ev kind or description which may arise out of or in or fault on the part of Tenant in the payment or or ob' ation on the part of Tenant to be paid or performed pursuant to the ter of this Lease or an\pa act or omission of Tenant, its agents or employees. In case of any a ion or proceeding broainst Landlord's Indemnitees, or any of them, by reason of any su claims, Tenant covedefend such action or proceeding by counsel reasonably satisf tory to Landlord and/or acular Landlord's Indemnitee. 15.01 ARTICLE XV (a) L dlord or Landlord's agents, representatives ore loyees shall have the right at any f e upon at least twenty-four (24) hours oral notice xcept in emergencies, in which ase only such notice, if any, as may be feasible under tN circumstances shall be requir d)to enter upon the Leased Premises and Tenant's NImprovernents for the purp ses of inspecting the same, determining whether this Lea is being complied wit , curing (as permitted herein) any default by Tenant and owing the Leased P emises to prospective Leasehold Mortgagees. (b) Landlord or Landlord's agents, representatives, or employees sha have the right whenever necessary and without notice to enter upon the Leased Pre ises for the purpose of repairing or maintaining any of Landlord's property adja�ent to or abutting the Leased Premises. 15.02 Gender and Number. Words of any gender used in the Lease shall be held to include any other gender, and words in the singular shall be held to include the plural, where required. 15.03 Notices. Notices, statements and other communications to be given under the terms of the Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return receipt requested, and addressed as follows: If to Landlord: With Copies to: If to Tenant: Cof Iowa City City Attorney Bread Garden of Iowa ity,L.C. A N: City Manager 410 E. Washington St. ATTN: General tag r 410 . Washington St. Iowa City, IA 52240 225 S. Li/St.Iowa ' , Iowa 52240 Iowa Cit15.04 A lic le Law. The Laws of the State of Iowa shall govern the vaance and enforcement of is Lease. 15.05 Partial Invali it . If any provision of the Lease shall be invalid Xunenforceable it shall not affect the validity or en rceability of any other provisions of t/Lease15.06 Heading. Headin s astothe contents of particulaherein are inserted only for convenience, and are in no ay tobe construed as a partase or as a limitation on the scope of the particular section which they refer. 15.07 Binding Effect. The cove nts, conditions and reements contained in the Lease shall bind, apply to and inure to the bene of the parties her o and their respective successors. 15.08 No Partnership. It is expressly underst/dshall at Landlord shall not be construed or held to be a partner, joint venturer or associate f Tenae conduct of Tenant's business and that the relationship between the parties hereto is a at all times remain that of landlord and tenant. 15.09 Holding Over. The Lease shall terryfriatawithout further notice at expiration of the Term. Any holding over by Tenant or any party clai ing by, through or under Tenant after expiration shall not constitute a renewal or extension joraTenant ny rights in or to the Leased Premises. In the event of any holding over, Landlorexercise a y and all remedies available to it under Article XI herein oratlaworin equityto repossession the Leased Premises, and for damages. 15.10 Time is of the Essence. Tome is of the essence in`ttiis Lease. 15.11 Entire Agreement;/Merger. The Lease contains a the agreements and conditions made between the parties hereto/with respect to the matters conta' ed herein and may not be modified orally or in any other man r than by an Agreement in writing si no by all the parties hereto or their respective successors. Ali prior written and oral understandings nd agreements shall be deemed to have merged into th Lease and have no further force and effec\heconstitute 15.12 Counter ts. This Lease may be executed in couneach of which shall be deemed to be an riginal and all of which shall, when taken togbut one and the same instrument lord: CITY ONOWA CITY Geoff Fruin, City Manager CITY ACKNOWLEDGMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) Tenant: BREAD GARDEN OF IOWA CITY, L.C. James Mondanaro, On this day of \ notary public in and for the State of Iowa, known, who being by me duly sworn, did corporation executing the within and foreg of said municipal corporation; that said ns' municipal corporation by authority of it City that the execution of said instrument ' his v bind said corporation. Ap ved: J— //6 City Attorney 2017, before me, the undersigned, a onally appeared Geoff Fruin, to me personally that he is the City Manager of said municipal >trument; that the seal affixed thereto is the seal nt was signed and sealed on behalf of said j il; and that the City Manager acknowledged to act and deed and that he is empowered to Notary Public in and for the State of Iowa BREAD GARDEWOF IOWA CITY, L.C. ACKNOWLEDGMENT ST/EF A ) \ ) ss: JOUNTY ) Onday of 2017, befoi Noin and for the State of Iowa, personally appeared Ja pewn, who being by me duly sworn, did identify himself as F of .C., and acknowledge the execution of the instrument to an that of Bread Garden of Iowa City, L.C. Notary Public in and for the me, the undersigned, a es Mondanaro, to me iident of Bread Garden be Y is own voluntary act a fly r -7 oil �1111y11`\lli` �1 �1 BONN, OWNS, nyt('W, 1 �1at"5P 5�,�, �ramomm � l ley r PP