HomeMy WebLinkAbout2018-07-17 ResolutionPrepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 18-2-16
Resolution authorizing the City Manager to sign a one-year extension
of the listing agreement with Lepic-Kroeger Realtors for the Iowa City
Industrial Campus.
Whereas, the 420TH Street Industrial Park is a 173 -acre shovel -ready industrial use site,
which was recently subdivided and is now known as Iowa City Industrial Campus;
Whereas, in Resolution No. 15-229, the City Council approved a one-year listing
agreement with Lepic-Kroeger, Realtors to sell lots at the Iowa City Industrial Campus;
Whereas, in Resolution No. 16-235, the City Council extended the term by one year to
July 15, 2017; and
Whereas, in Resolution No. 17-244, the City Council extended the term again by one
year to July 15, 2018; and
Whereas, it is in the best interest of the City to extend the term by one year to July 15,
2019.
Now, therefore, be it resolved by the City Council of Iowa City, Iowa, that:
The City Manager is authorized to sign the attached Third Amendment to
Commercial Listing Agreement.
Passed and approved this 17th day of
Attest:
Deputyits Clerk
Approved by
S s-
City Attorney's Office
July 2018.
G ZA
ayor
Resolution No. 18-206
Page 2
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x
x
x
x
x
x
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
Drafted by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240; 319/356-5030
THIRD AMENDMENT TO
COMMERCIAL LISTING CONTRACT
WHEREAS, on July 15, 2015, Lepic-Kroeger, Realtors (Broker`) and the City of Iowa
City (`Owner') entered into the Commercial Listing Contract (`Agreement') in which Owner
authorized Broker to be its exclusive agent in the sale of lots at 420" Street Industrial Park;
WHEREAS, 4201^ Street Industrial Park was recently subdivided and is now known as
Iowa City Industrial Campus; and
WHEREAS, the term of the Agreement was for one-year and the parties extended the
term twice for one-year periods by written agreement which expires July 15, 2018; and
WHEREAS, the parties wish to extend the agreement for an additional year.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
The "Expiration Time" in Paragraph 1 of the Agreement is amended by changing the
ending date to "July 15, 2019."
Exhibit A of the Agreement is deleted and the attached Exhibit A (Final Plat of Iowa City
Industrial Campus) is substituted in lieu thereof
All other terms and conditions of the Agreement, not inconsistent with this amendment,
remain in full force and effect.
Dated, this 17 th day of July, 2018.
OWNER
CITY OF IOWAICITY, IOWA
By:
go f Fruin
City Manager
EXHIBIT •�
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4uL 80 x,11. fl n
FINAL PLAT OF
IOWA CITY INDUSTRIAL CAMPUS
,
WA CITY, JOHNSON COUNTY, IOWA
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CITY OF IOWA CIT ZE
COUNCIL ACTION REPOR 3
July 17, 2018
Resolution authorizing the City Manager to sign a one-year extension of the
listing agreement with Lepic-Kroeger Realtors for the Iowa City Industrial
Campus
Prepared By: Sue Dulek, Assistant City Attorney
Reviewed By: Geoff Fruin, City Manager
Wendy Ford, Eco. Dev. Coordinator
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Agreement
Executive Summary:
The City owns land off of 420th Street known as the Iowa City Industrial Campus and has since
2014 listed the property to market and promote the lots. In 2015, the City entered into a listing
agreement with Lepic-Kroeger Realtors, which was extended twice each for one-year
terms. This resolution extends the agreement again until July 15, 2019.
Background / Analysis:
In 2014, the City Council approved a one-year listing agreement with Binswanger Midwest of
Illinois. In 2015, Council approved a one-year agreement with Lepic-Kroeger Realtors with Jeff
Edberg as the designated agent. That agreement was extended two times, and expires July 15,
2018. This resolution will extend it to July 15, 2019. The sales commission remains the same at
6%.
The 173 -acre shovel -ready industrial site was recently subdivided and is now known as Iowa
City Industrial Campus. The sale of Lot 2 (approximately 11.2 acres) to Alexander Lumber, Inc.
closed last week.
The benefits to the City of having a listing agreement with a real estate company are that
commercial realtors are connected to numerous networks that can be helpful in linking
prospective buyers with sellers, they can prepare and distribute promotional materials including
videos, and they are knowledgeable about the latest market trends.
Prepared by Ben Clark, Public Works, 410 E. Washington Sl., Iowa City, IA 52240, (319) 356-5436
Resolution No. 18-207
Resolution approving, authorizing, and directing the Mayor to
execute and the City Clerk to attest Amendment No. 1 to the
August 22, 2017 Agreement by and between the City of Iowa City
and Bolton & Menk, Inc. to provide consultant services for the
West Riverbank Stabilization Project.
Whereas, the City entered into an agreement with Bolton & Menk, Inc. for Preliminary Design, Final
Design, Permitting, Bidding and Construction Services for the West Riverbank Stabilization Project
(the "Project"); and
Whereas, the Iowa Department of Natural Resources Conservation and Floodplains division is
requiring a mussel survey to be conducted as part of the project prior to construction; and
Whereas, the City now desires to expand the scope of the Project to include additional ecological
investigation and permitting services that were not included in the original agreement; and
Whereas, Consultant is willing to perform these additional services in exchange for additional
compensation; and
Whereas, funds are available in Account # P3981 West Riverbank Stabilization.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The Amendment No. 1 to the December 2, 2016 consultant agreement attached hereto is
in the public interest, and is approved as to form and content.
2. The Mayor and City Clerk are hereby authorized and directed to execute the attached
Amendment No. 1.
Passed and approved this 17th day of July 2018
IZ r
Attest: C
Deputy City -Clerk
Approved by
City Attorney's Office I
�II t
It was moved by trims and seconded by Botchwav the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
X Botchway
—X Cole
—X Mims
X Salih
—X Taylor
Thomas
X Throgmorton
CONSULTANT AGREEMENT
AMENDMENT No. 1
THIS AMENDMENT'NO.1 to the August 22nd, 2017 CONSULTANT AGREEMENT for the West
Riverbank Stabilization Project, by and between the City of Iowa City, a municipal corporation,
hereinafter referred to as the City and Bolton & Menk, Inc., of Cedar Rapids, Iowa, hereinafter
referred to as the Consultant is made and entered into this 17th day of
July , 2018.
WHEREAS, the City entered into an agreement with the Consultant for Preliminary Design, Final
Design, Permitting, Bidding and Construction Services for the West Riverbank Stabilization Project
(the "Project"); and
WHEREAS, the Iowa Department of Natural Resources Conservation and Floodplains division is
requiring a mussel survey to be conducted as part of the project prior to construction; and
WHEREAS, the City now desires to expand the scope of the Project to include additional ecological
investigation and permitting services that were not included in the original agreement; and
WHEREAS, Consultant is willing to perform these additional services in exchange for additional
compensation; and
WHEREAS, funds are available in the West Riverbank Stabilization and Trail fund.
NOW THEREFORE, it is agreed by and between the parties hereto that the Agreement is hereby
amended as follows:
I. SCOPE OF SERVICES
Consultant agrees to perform the following additional services for the City, and to do so in a
timely and satisfactory manner.
A. Conduct a quantitative/qualitative mussel survey to determine the potential presence of
federal and/or state (Iowa) threatened or endangered mussel species at the proposed
river bank stabilization site on the west bank of the Iowa River immediately upstream of
the U.S. Hwy 6 bridge, and continuing approximately 625 feet upstream.
I. Sampling protocol will be quantitative and qualitative, following that of Miller and
Payne (1994).
ii. Randomly sample 20 locations distributed throughout the area. Since it is
anticipated more mussels may be present near shore, sampling locations will
include representative sites near shore as well as throughout the main stream
body. Specific sampling points to be determined on site and marked via GPS
coordinates.
iii. In sampling 20 locations, collect 40 quarter -meter quantitative substrate samples
(20 x 2 x .25 m2 = 10 m2). Conduct five-minute qualitative searches at each
location (20 x 5 min = 1 hrs, 40 min.). Additional sampling locations may be
added as deemed necessary.
iv. Each quantitative/qualitative sample shall consist of a cluster of two quarter -
meter whole substrate collections. The substrate shall be removed to a depth of
10.2 to 15.2 cm (4 to 6 inches) and brought to the surface where the sample will
be sieved through a series of screens, the smallest mesh of which will be 6.35
mm (1/4 inch). Material retained on each screen shall be examined for live
mussels. In addition, five-minute qualitative timed search samples shall be
collected at each location.
V. All mussels encountered shall be identified, enumerated, and measured. All
threatened or endangered individuals and representative specimens of other
species shall be photographed. Nomenclature will follow Turgeon, et al. (1998).
Captured mussels shall be kept in shaded ambient water during sample
processing. Ancillary data shall include substrate type, depth, temperature,
water clarity, etc. Each sampling location shall be identified by GPS coordinates.
vi. Mussels shall be handled in a manner acceptable to the Iowa Department of
Natural Resources and shall include guidelines recommended by the US Fish
and Wildlife Service for handling endangered species. Both federal and state
listed species shall be returned to the location where they were captured. All
non -listed mussels collected should be salvaged from the work area and placed
in suitable habitat upstream.
B. Mussel Survey Report
A job completion report shall be prepared for this site location. It shall include
methodology, a description of all tasks completed, problems encountered, and
pertinent observations. Data shall be processed on computer and shall include
a listing of all species encountered, numbers encountered, percent relative
abundance, and densities. A cumulative numbers versus species curve shall be
developed to show probability of having collected all species present in the area.
Color photos shall be incorporated into the report to depict typical views of the
site and representative specimens collected. Copies of all original Feld data
sheets shall be presented as an appendix in the final report. Typical reports for
this type of survey with appendices are usually about 40 to 50 pages and are
spiral -bound.
ii. One draft of the report shall be presented to the client for review and approval
followed by bound copies and an electronic copy of the final report. In
accordance with our collecting permit requirements, additional electronic copies
of the approved final report shall be distributed to the Iowa Department of Natural
Resources and the US Fish and Wildlife Service, Office of Endangered Species
in Ft. Snelling; the US Fish and Wildlife Service, Moline Field Office.
C. Coordination with Regulatory Agencies
The results of the survey shall be discussed in a conference call with the Iowa
Department of Natural Resources, US Fish and Wildlife Service, and the US
Army Corps of Engineers.
D. ADDITIONAL SERVICES
If threatened or endangered species are found or sufficient evidence exists to suggest
that they will be encountered during construction, additional work will likely be required
to coordinate with regulatory agencies, properly document and relocate the mussels
and monitor their condition subsequent to relocation. Beyond the mussel relocation,
regulatory agencies may require additional mitigation measures including, but not
limited to design and construction of avoidance measures, design and construction of
habitat, and in -lieu fee. Relocation, monitoring, and mitigation work is not included in
this scope of services and for the purposes of this agreement it is assumed that no
additional work will be required for the regulatory agencies to a determination of no
effect to threatened or endangered species.
TIME OF COMPLETION
It is anticipated that mussel sampling will take one field day. Sampling must occur when
water temperatures are above 40 degrees (preferably above 50 degrees) and when proper
flow conditions exist. In order to satisfy temperature requirements, the survey should be
completed between May 15 and November 1 of 2018. A revised schedule is attached.
III. COMPENSATION FOR SERVICES
In consideration for performance of the above-described additional Scope of Services, the
Consultant shall be compensated a not -to -exceed lump sum of $28,072.00. The total
compensation for services, as herein amended, shall not exceed $87,813.
IV. All other provisions of the August 22nd, 2017 Consultant Agreement not specifically
amended herein shall remain in full force and effect.
FORZ
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Date:n7/t7/ t�/��/ t S
ATTEST:
F R THE CONSULTANT
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Title: SGL1't0,— P{p,¢G� �y�tyyyPv
Date: 71.5/&O/ B$
Approved by:
"_�Ccta A'�-�w ,
City Attomeys Office
Date
CITY OF IOWA CIT 07.17-18
COUNCIL ACTION REPO Sd(2)
July 17, 2018
Resolution approving, authorizing, and directing the Mayor to execute and
the City Clerk to attest Amendment No. 1 to the August 22, 2017
Agreement by and between the City of Iowa City and Bolton & Menk, Inc.
to provide consultant services for the West Riverbank Stabilization Project.
Prepared By: Ben Clark - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director,
Geoff Fruin - City Manager
Fiscal Impact: $28,072.00 available in the West Riverbank Stabilization and Trail fund
#P3981.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Amendment
Executive Summary:
The West Riverbank Stabilization Project will rebuild a severely eroded stretch of river bank on
the west side of the Iowa River, north of Highway 6. The Iowa Department of Natural Resources
is now requiring a mussel survey to be conducted as part of the project. The survey was not
included in the original scope of work.
Background / Analysis:
High water along the Iowa River, particularly during the 2013 and 2014 flood events, has
accelerated bank erosion along the west side of the Iowa River just north of Highway 6. If left
unchecked, loss of property will result and will preclude the installation of a long planned
recreational trail along that stretch of the Iowa River.
The project will generally include grading, installation of rip rap, construction of a retaining wall
and other related work that will stabilize the river bank and accommodate a future recreational
trail.
During the permitting process, the DNR has determined a mussel survey is required. The
mussel survey was not included as part of the original contract scope.
The negotiated cost for these services is $28,072.00.
Prepared by: Kevin Slutts, Water Superintendent, 80 Stephen Atkins Dr., Iowa City, IA 52240 (319) 356-5162
Resolution No. 18-208
Resolution authorizing the procurement of water meters for the
City's Water Division for Fiscal Year 2019
Whereas, water meters are necessary to facilitate utility billing for the City of Iowa City; and
Whereas, water meters are purchased regularly throughout the fiscal year for new water accounts
and to upgrade old or nonfunctional meters; and
Whereas, to ensure compatibility between water meters and existing electronic equipment and
software used by the Water Division, Staff recommends the purchase of Neptune water meters;
and
Whereas, Ferguson Waterworks is the only authorized distributor of Neptune water meters in this
area; and
Whereas, staff recommends award of a purchase contract with Ferguson Waterworks; and
Whereas, the budgeted fiscal year 2019 amount for the purchase of water meters is $200,000;
and
Whereas, this amount exceeds the City Manager's spending authority of $150,000, thus requiring
City Council approval; and
Whereas, funds for this purchase are available in account # 73730140; and
Whereas, approval of this procurement is in the public interest.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The proposed procurement as described above is approved.
2. The City Manager is authorized to take the steps necessary to make the purchase.
Passed and approved this 17th day of July 2018
May r
Approved by
Deputy City -Clerk I y ttomeys Office
Resolution No. 18-208
Page 2
It was moved by Mims and seconded by sotchway the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
x
Botchway
x
Cole
x
Mims
x Salih
x
Taylor
x
Thomas
x
Throgmorton
r 1 CITY OF IOWA CIT`
{��_„_go
�` COUNCIL ACTION REPO 3d(3)
July 17, 2018
Resolution authorizing the procurement of water meters for the City's
Water Division for Fiscal Year 2019
Prepared By: Kevin Slutts - Water Superintendent
Reviewed By: Ron Knoche - Public Works Director, Geoff Fruin — City Manager
Fiscal Impact: $200,000 available in account #73730140
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The City purchases new water meters, which are required for utility billing, on an ongoing basis.
The new meters are used to replace old or nonfunctional meters and for new water accounts.
The purchase price for the water meters for fiscal year 2019 is $200.000.
Background / Analysis:
The City purchases new water meters on an ongoing basis for new water accounts and to
upgrade old meters. The meters must be compatible with the City's meter reading equipment.
Neptune Technology is the City's supplier for meter reading equipment. Neptune water meters
are compatible with the Neptune meter reading equipment. Other meters have been tried and
are not compatible. Therefore, to maintain compatibility, Neptune meters are required.
Ferguson Waterworks is the only authorized distributor for the sale of Neptune water meters in
this area.
Prepared by: Dave Panos, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5145
Resolution No. 18-209
Resolution accepting the work for the Wetherby Park
Improvement Project
Whereas, the Engineering Division has recommended that the work for construction of the
Wetherby Park Improvement Project, as included in a contract between the City of Iowa City and
LL Pelling Company of North Liberty, Iowa, dated April 18, 2017, be accepted; and
Whereas, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
Whereas, funds for this project are available in the Parks Maintenance Fund account # R4342;
and
Whereas, the final contract price is $162,750.00.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 17th day of
Ma r
Attest: S�,Q =
Deputy CI�—
July ,2018
Approved by
City Attorney's Office
It was moved by Mims and seconded by Botchwav the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
x
Botchway
%
Cole
x
Mims
x Salih
x
Taylor
x
Thomas
x
Throgmorton
r 1
CITY O F IOWA C I o7_��-�s
COUNCIL ACTION REPO 3d(4)
July 17, 2018
Resolution accepting the work for the Wetherby Park Improvement Project
Prepared By:
Dave Panos - Sr. Civil Engineer
Reviewed By:
Jason Havel - City Engineer
Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact:
None
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution, Engineer's Report
Executive Summary:
The project has been completed by LL Palling Company of North Liberty, Iowa in substantial
accordance with the plans and specifications. The Engineer's Report and Performance and
Payment bonds are on file with the City Clerk.
❖ Project Estimated Cost: $ 166,235.00
❖ Project Bid Received: $ 162,750.00
Project Actual Cost: $ 162,750.00
No change orders were required with this project.
The Wetherby Park Improvement Project included work at Wetherby Park in Iowa City to install
sport court improvements. Work for the project included site grading, HMA pavement
installation for the court, fencing, basketball hoops, futsal goals, court surfacing and pavement
markings.
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
ENGINEER'S REPORT
July 10, 2018
City Clerk
Iowa City, Iowa
Re: Wetherby Park Improvement Project
Dear City Clerk:
I hereby certify that the construction of the Wetherby Park Improvement Project has been
completed by LL Pelling Company of North Liberty, Iowa in substantial accordance with the plans
and specifications prepared by Snyder & Associates, Inc. of Ankeny, Iowa.
This project was bid as a unit price contract and the final contract price is $162,750.00
No change orders were required on this project.
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
�:7JJ
Jason Havel, P.E.
City Engineer
9(<->)
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 18-210
Resolution authorizing the Mayor to sign an agreement with Public
Access Television, Inc. to provide carriage public access and
community programming and to distribute equipment.
Whereas, Public Access Television, Inc. (PATV) provides public access and community
programming pursuant to an agreement with the City that expires on July 31, 2018;
Whereas, under the City's franchise agreement, Mediacom is required to collect public access
funds that the City passes through to PATV;
Whereas, the City's franchise agreement with Mediacom terminates on August 1, 2018;
Whereas, Mediacom will continue to provide access to the cable system for purposes of public
access and community programming at no cost to the City;
Whereas, the attached agreement provides that PATV will continue to provide public access
and community programming but with no financial support from the City; and
Whereas, the attached agreement further provides that the City relinquishes all rights to the
equipment that PATV has purchased over the years with the pass-through funds.
Now, therefore, be in resolved by the City Council of the City of Iowa City, Iowa that:
The Mayor is authorized to sign the attached agreement with Public Access Television, Inc.
Passed and approved this 17th day of
Ma)*r
2018.
Approved
Attest:
Deputy Ci Jerk City Attorney's Office
Resolution No. 18-210
Page 2
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
x
x
x `
x
x
x
ABSENT:
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
AGREEMENT
This Agreement between the City of Iowa City, a municipal corporation ("The City"),
and Public Access Television, Inc. ("PATV"), is being entered into in Iowa City, Iowa.
WHEREAS, Iowa City and PATV entered into a contract entitled Agreement on May 10,
2015 ("2015 PATV Agreement") for the provision of public access and community
programming on cable television by PATV;
WHEREAS, the cable franchise agreement between Iowa City and MCC Iowa LCC
("Franchise Agreement") requires MCC Iowa LCC to make a payment by January 1 each year to
Iowa City for public access and community programming, and Iowa City, in turn "passes
through" the monies to PATV under the terms of the 2015 PATV Agreement;
WHEREAS, the Franchise Agreement terminates on August 1, 2018;
WHEREAS, pursuant to the 2015 PATV Agreement, all pass-through payments required
by the Franchise Agreement should be fully paid to PATV by July 31, 2018;
WHEREAS, the 2015 PATV Agreement will terminate on July 31, 2018;
WHEREAS, Section 18E of the 2015 PATV Agreement included a list of assets and
equipment purchased by PATV with public access funds;
WHEREAS, the parties wish to enter into an agreement to address the status of assets and
equipment and carriage access as of August 1, 2018 and thereafter.
IT IS THEREFORE AGREED that:
1. The City relinquishes all claims to all PATV equipment, including but not limited to
the equipment listed in Exhibit A of the 2015 PATV Agreement and to all other
equipment held by PATV as of the date of this agreement whether purchased by
PATV with City pass through funds since execution of the 2015 PATV Agreement or
by contributions to or funds raised by PATV.
2. The City will allow PATV access to carriage on and connection to local cable
systems for public access and community programming and continue current program
promotional efforts as long as PATV continues to provide adequate public access and
community programming services as reasonably determined by the City.
Notwithstanding any other provision herein, the City may terminate this agreement if
MCC Iowa LCC, its successor, or any other entity charges Iowa City a fee for
carriage and/or access to the cable system.
3. PATV acknowledges and agrees that the City is not obligated to provide any funding
to support PATV's operations and public access services.
4. This agreement shall automatically terminate if MCC Iowa LCC, its successor, or any
other entity does not allow the City access to carriage on and connection to local
cable systems for public access.
5. After the termination of the 2015 PATV Agreement, PATV's governing board shall
have sole authority to set its policies and services to ensure maximum support
throughout the Iowa City area and environs; to contract to provide content for non -
cable delivery options; and to engage in other enterprise services as it determines
appropriate.
PUBLIC ACCESS TELEVISION, INC.
By: Ge ' -o Sandoval, Executive Director
THE CITY OF IOWA CITY
By: 4+n Z.
Ja es A. Throgmorton, Mayor
�v�pr ved by: t,
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City Attorney's Office
Attest:
D City IClerk
7-iz- -1 a
Date
7/17/18
Date
'r 1 CITY OF IOWA CIT
-r �", COUNCIL ACTION REPO
3d(5)
May 29, 2018
Resolution authorizing the Mayor to sign an agreement with Public
Access Television, Inc. to provide carriage public access and community
programming and to distribute equipment.
Prepared By:
Simon Andrew, Assistant to the City Manager
Reviewed By:
Sue Dulek, Assistant City Attorney
Fiscal Impact:
No impact.
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution
Agreement
Executive Summary:
The current Franchise Agreement between the City of Iowa City and Public Access Television
(PATV) for the provision of public access cable television programming terminates on July 31,
2018. The attached agreement continues PATV's ability to provide public access programming
so long as channel access is provided by the cable television provider. The proposed
agreement also stipulates that the City will relinquish any ownership claim on equipment
purchased by PAN and recognizes that the City does not have future funding obligations for
PATV operations and public access services.
Background / Analysis:
The attached resolution authorizes the Mayor to sign an agreement with PAN to continue
access to the private cable television system. The current PAN agreement, approved in 2015,
expires July 31, 2018. Under the current agreement, the cable television provider is required to
collect public access funds that the City passes through to PATV. Upon the expiration of the
City's franchise agreement, these pass-through funds will no longer be collected and available
for public access services.
The new agreement will continue to allow PATV channel access so long as the cable provider
continues to provide the channel at no cost. The agreement will automatically terminate if PAN
ceases to provide community programming services as reasonably determined by the City or
should the cable provider discontinue access to the local cable system for public access
programming. The City may also terminate the agreement if the cable provider charges a fee
for access to the cable system.
Both parties acknowledge that the City is not obligated to provide any funding to support PAN
operations and public access services. In the agreement, the City relinquishes all claims to
PAN equipment purchased with pass through funds or funds raised by PAN.
Staff recommends approval
0
Prepared by: Bob Miklo, Senior Planner, 410 E. Washington St, Iowa City, IA; 319-356-5240 (CPA18-00001)
Resolution No. 18-211
A resolution amending the Comprehensive plan, Annexation Policy, to
add a section pertaining to affordable housing.
Whereas, the Comprehensive Plan contains policies regarding annexation of land into the
city; and
Whereas, the Comprehensive Plan contains a goal of providing 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, and
Whereas, the Affordable Housing Action Plan includes a recommendation that
consideration be given to an annexation policy that provides for affordable housing
contributions, and
Whereas, the Planning and Zoning Commission has reviewed an amendment to the
Comprehensive Plan pertaining to affordable housing and has recommended approval.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
IC2030: Comprehensive Plan Update, Annexation Policy, is hereby amended to include the
following:
If the annexation is for residential development that will result in the creation of
ten (10) or more new housing units, the development will support the City's goal
of creating and maintaining the supply of affordable housing. Such support shall
be based on providing affordable units equal to 10% of the total units in the
annexed area with an assurance of long term affordability, preferably for a term
of not less than 20 years. Income targets shall be consistent with the City's
existing program requirements. How the development provides such support will
vary depending on the particular circumstances of the annexation, and may
include, but is not limited to, transfer of lots/units to the City or an affordable
housing provider; fee -in -lieu paid to the City's affordable housing fund; and/or
participation in a state or federal housing program. In determining the most
desirable option, preference shall be weighted toward options that help achieve
better socia -economic balance among Iowa City neighborhoods and among
schools in the Iowa City Community School District. An agreement committing
the Owner/Developer to the affordable housing obligation, shall be required prior
to annexation, and shall be further memorialized, if necessary, in a conditional
zoning agreement.
Passed and approved this 17th day of July , 20 18
4:�� 4 .
M or: if
Approved by:
Resolution No. 18-211
Page 2
v
Attest: Csr�s 51,
Julie Toparil, Deputy City Clerk
r�
City Attorney's ffice
S:\PCD\Staff Reports\2018\CPA18-00001 Annex.Affordable Housing\Comp plan amendment RESOLUTION-07.19.2018.doc
Resolution No. 18-211
Page 3
It was moved by Botchway and seconded by Mims
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
x
x
x
x
x
x
ABSENT:
K4
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
n;m
Prepared by: Bob Miklo, Senior Planner, 410 E. Washington St, Iowa City, IA; 319-356-5240 (CPA18-00001)
Resolution No. 18-211
A resolution amending the Comprehensive plan, Annexation Policy, to
add a section pertaining to affordable housing.
Whereas, the Comprehensive Plan contains policies regarding annexation of land into the
city; and
Whereas, the Comprehensive Plan contains a goal of providing a fnix of housing types
within each neighborhood, to provide options for households ofYaf
�pes (singles, families,
retirees, etc.) and people of all incomes, and
Whereas, the Affordable Housing Action Plan includesrecommendation that
consideration be given to an annexa ion policy that providor affordable housing
contributions, and
Whereas, the Planning and Zoning ommission has renewed an amendment to the
Comprehensive Plan pertaining to affordable housing and has recommended approval.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
IC2030: Comprehensive Plan Update, Annexation Policy, is hereby amended to include the
following:
If the annexation is for residential development that will result in the creation of
ten (10) or more new housing units, the d v/elopment will support the City's goal
of creating and maintaining the supply of dffordable`housing. Such support shall
be based on providing affordable units equal to 10°0 of the total units in the
annexed area with an assurance of long term affordablity, preferably for a term
of not less than 20 years. Income/targets shall be consistent with the City's
existing program requirements. How the development provides such support will
vary depending on the particular/circumstances of the annexation, and may
include, but is not limited to, transfer of lots/units to the Rty or an affordable
housing provider; fee -in -lieu p id to the City's affordable housing fund; and/or
participation in a state or fed ral housing program. In determining the most
desirable option consideration shall be given to the interest of both the City and
the Iowa City Community S6hool District in not exacerbating the burdens on
neighborhoods and elementary schools experiencing challeng s related to
concentrations of poverty./ An agreement committing the Owner eeveloper to
the affordable housing obligation, shall be required prior to annexatidy, and shall
be further memorialized,/if necessary, in a conditional zoning agreemeit.
Passed and approved this day of 20_.
Mayor:
Kellie Fruehling, City Clerk
0ro7
6_ ag->8
City Attorney's Office
r
r��CITY OF IOWA CITY 5b
MEMORANDUM
Date: July 11, 2018
To: Geoff Fruin, City Manager
From: Anne Russett, Senior Planner
Tracy Hightshoe, Neighborhood & Development Services Director
Re: Comprehensive Plan — Affordable Housing Annexation Policy
Introduction
At the City Council's July 3, 2018 meeting the Council held a public hearing on an amendment to
the Comprehensive Plan's Annexation Policy related to affordable housing. During that meeting
the Council voted to continue the public hearing on the amendment to July 17 in order to obtain
feedback from the Housing and Community Development Commission (HCDC) on the proposed
policy.
HCDC reviewed the draft policy at their July 10 meeting. In addition, the Mayor provided some
feedback on the draft policy. Therefore, this memo outlines the following:
1. The original policy as drafted by staff;
2. Suggested language from the Mayor on revisions to the draft policy; and
3. Recommendations from HCDC on revisions to the draft policy.
All revisions pertain to one sentence in the draft policy, which is in bold text below.
Original Draft Policy:
If the annexation is for residential development that will result in the creation of ten
(10) or more new housing units, the development will support the City's goal of
creating and maintaining the supply of affordable housing. Such support shall be
based on providing affordable units equal to 10% of the total units in the annexed
area with an assurance of long term affordability, preferably for a term of not less
than 20 years. Income targets shall be consistent with the City's existing program
requirements. How the development provides such support will vary depending
on the particular circumstances of the annexation, and may include, but is not
limited to, transfer of lots/units to the City or an affordable housing provider; fee -
in -lieu paid to the City's affordable housing fund; and/or participation in a state or
federal housing program. In determining the most desirable option
consideration shall be given to the interest of both the City and the Iowa City
Community School District in not exacerbating the burdens on
neighborhoods and elementary schools experiencing challenges related to
concentrations of poverty. An agreement committing the Owner/Developer to
the affordable housing obligation, shall be required prior to annexation, and shall
be further memorialized, if necessary, in a conditional zoning agreement.
July 11, 2018
Page 2
Suggested language from the Mayor:
Change the line in bold to:
In determining the most desirable option
preference shall be weighted toward options
that help achieve better socio-economic balance among Iowa City neighborhoods
and among schools in the Iowa City Community School District.
HCDC Recommendation:
Change the line in bold to:
In determining the most desirable optionside•et'nn shall be given to ttie'^.e•e^'
not exaGerbating
the b .denF; on nei .l ghbOFheeand elernenta Fy GGhGo..neFienninn els Ghallennes
preference shall be weighted toward options
that support economic, educational, and community building opportunities for all
residents and help achieve better socioeconomic balance among Iowa City
neighborhoods and among schools in the Iowa City Community School District.
CITY OF IOWA CITY 4e(1)
MEMORANDUM
Date: May 3, 2018
To: Planning and Zoning Commission
From: Bob Miklo, Senior Planner
Re: Comprehensive Plan — Affordable Housing Annexation Policy
The City Council has asked the Planning and Zoning Commission to consider an amendment to
the Comprehensive Plan's Annexation Policy to add a section pertaining to affordable housing.
The proposed policy states:
If the annexation is for residential development that will result in the creation of
ten (10) or more new housing units, the development will support the City's goal
of creating and maintaining the supply of affordable housing. Such support shall
be based on providing affordable units equal to 10% of the total units in the
annexed area with an assurance of long term affordability, preferably for a term
of not less than 20 years. Income targets shall be consistent with the City's
existing program requirements. How the development provides such support will
vary depending on the particular circumstances of the annexation, and may
include, but is not limited to, transfer of lots/units to the City or an affordable
housing provider; fee -in -lieu paid to the City's affordable housing fund; and/or
participation in a state or federal housing program. In determining the most
desirable option consideration shall be given to the interest of both the City and
the Iowa City Community School District in not exacerbating the burdens on
neighborhoods and elementary schools experiencing challenges related to
concentrations of poverty. An agreement committing the Owner/Developer to
the affordable housing obligation, shall be required prior to annexation, and shall
be further memorialized, if necessary, in a conditional zoning agreement.
The current Annexation Policy is contained on page 17 of the Comprehensive Plan (copy
attached — the full Comprehensive Plan can be found at httos:/Iwww.icaov.ora/comoolan). The
attached memorandum from Geoff Fruin, City Manager, provides more details regarding the
proposed policy.
On May 3, the Commission will set a public hearing for May 17 to receive public comment on
the proposed amendment.
Attachments:
1. February 26, 2018 Memorandum
2. Comprehensive Plan excerpts including current Annexation Policy
3. Map of annexations
City of Iowa City
MEMORANDUM
Date: February 26, 2018
To: City Council
From: Geoff Fruin, City Manager
Re: Affordable Housing Action Plan — Annexation Policy
Background: The Affordable Housing Action Plan includes a recommendation that
consideration be given to an annexation policy that provides for affordable housing
contributions The City's current annexation policy is found in section 2 of the
Comprehensive Plan.(https://www.icgov.org/compplan). Text and maps of interest are
found at pp. 16-18 and Sections 10 and 11 (Future Land Use and Fringe Area Map), and
are attached. In Iowa City the practice has been to consider only voluntary annexations,
i.e. a petition by the owner of the land requesting to be annexed as opposed to an
application by the City to involuntarily annex property into the City. Under the City's policy,
a voluntary annexation is generally viewed positively when 3 conditions exist: 1) the area
under consideration falls within the long-range planning boundary; 2) Development in the
area proposed for annexation will fulfill an identified need, without imposing an undue
financial burden on the City, and, 3) Control of development is in the City's best interests.
The broad parameters of the annexation policy serve the City well for several reasons.
First, the City has no obligation to annex property. Its actions need only be reasonable
and consistent with the annexation policy found in the Comprehensive Plan. Second,
annexations are infrequent. Attached is a map showing the annexations to Iowa City
since 2005. Only 7 have been for residential development of more than 10 units. Finally,
each annexation presents variable issues that are often the subject of negotiation
between the City and the landowner (e.g. infrastructure and public facility needs and
costs, sewer and water fees, tax phase in).
In researching this issue, City staff has found little in the way of annexation policies from
other cities that specifically address affordable housing. For the most part, what is found
is express or implicit requirements that any land which is annexed must comply with a
city's inclusionary housing ordinance. For example, the City of Boulder has an
inclusionary housing ordinance (Chapter 9-13, Boulder City Code) that applies to all
residential development but does not address annexations. Staff contacted Boulder's
Housing Division and was told by the Deputy Director that while they strive for certain
benchmarks they intentionally do not have a written policy on annexations because each
annexation is the subject of a negotiated agreement with the city, and each can bring
different "community benefits."
In crafting a policy, it is important to keep in mind that affordable housing measures that
impose restrictions on the income of tenants and/or homeowners require income
monitoring and verification. (e.g. Development Agreement with CA Ventures for units at
Linn and Court; rental units provided in accordance with the Riverfront Crossings
Inclusionary Housing ordinance). While the Developer is responsible for verifying income,
oversight by the City is necessary both to educate Developers/Landlords with no
experience in affordable housing, and to assure compliance. With the intensification and
diversification of the City's affordable housing requirements, we have concerns about
staff's ability to effectively provide such oversight with existing staff resources. The
03-01--"
IP3
February 26, 2018
Page 2
literature suggests that this is a common concern. In the Lincoln Institute of Land Policy's
Working Paper entitled Achieving Lasting Affordability through Inclusionary Housing .
(2014) the authors' findings from their nationwide inventory include the following:
Stewardship Practice
The case study analysis provides unprecedented insight into the ways
local jurisdictions handle stewardship as part of their inclusionary housing
programs. Monitoring inclusionary housing units and engaging residents,
developers, lenders and other partners are essential for ensuring lasting
affordability. Despite evidence of best practices from other housing
programs, such as CLTs [community land trusts], there is wide variation
in local jurisdictions' approaches to stewardship—both the value placed
on stewardship and the specific stewardship activities used. A common
theme across programs was a lack of sufficient resources to sufficiently
monitor and steward properties and homeowners. Local jurisdictions have
also seen their inclusionary housing inventory evolve and become more
diverse—with more rental units, varying affordability terms, and multiple
partners—which makes stewardship more challenging to implement.
While many jurisdictions retain monitoring and stewardship activities in-
house, trends indicate more programs are partnering with external
organizations to provide these services. (p.30)
Recommendation:
The following parameters have guided staffs development of an affordable housing
criteria for annexations:
1. Allow for flexibility in addressing the issues presented by any particular annexation
while at the same time giving land owners/developers notice of the basic
parameters.
2. Make it consistent with our existing programs (e.g. 10% of units for developments
with over 10 units in RFC; 15% TIF requirement; affordable defined as housing
affordable to tenants at or below 60% area median income (AMI) and homeowners
at or below 80% AMI)
3. Emphasize types of affordable housing contributions that will not require City
income monitoring of private developments while allowing the flexibility to consider
other options in appropriate situations.
4. A preference for long term affordability that does not require income monitoring by
City staff.
By providing basic parameters that clearly define affordable housing as a critical
component to annexations we can give the City and the developer the flexibility to
negotiate based on the variables of each annexation request. In some cases, it may be
that fee -in -lieu of is desired, while in others it could be that partnerships with affordable
housing providers or the donation of land for a future LIHTC project is most appropriate.
Getting too specific with the policy may inhibit otherwise creative approaches to future
annexations.
With these parameters in mind, staff recommends adding the following to the criteria that
must be satisfied in order for annexation to occur:
February 26, 2018
Page 3
If the annexation is for residential development that will result in the creation of ten
(10) or more new housing units, the development will support the City's goal of
creating and maintaining the supply of affordable housing. Such support shall be
based on a goal of providing affordable units equal to 10% of the total units in the
annexed area. Income targets shall be consistent with the City's existing program
requirements. How the development provides such support will vary depending on
the particular circumstances of the annexation, and may include, but is not limited
to, transfer of lots/units to the City or an affordable housing provider; fee -in -lieu
paid to the City's affordable housing fund; and/or participation in a state or federal
housing program. An agreement committing the Owner/Developer to the
affordable housing obligation, shall be required prior to annexation, and shall be
further memorialized, if necessary; in a conditional zoning agreement.
After direction from Council, any proposed revision to the annexation policy will be
presented to the Planning and Zoning Commission for its recommendation and then come
back to Council in the form of a resolution amending the comprehensive plan.
15
McCollister Bridge, completed in 2009, is the
first new roadway to be constructed over the
Iowa River since the early 1960s. The bridge is
part of McCollister Boulevard, an east -west
arterial that will provide relief for Highway 6
to the north, connecting South Gilbert Street
west to Mormon Trek Boulevard. Eventually
the road will be extended east to Scott Boule-
vard, opening up residential development
throughout south Iowa City.
Growth and Infrastructure
Iowa City's growth policy is an integral part of the Comprehensive Plan in the following ways:
• It defines a long-range planning boundary for Iowa City;
• It establishes when annexations should occur; and
• It establishes where the investment of public funds for infrastructure and improvements should oc-
cur (namely roads, water, and sewer).
The Growth Boundary defines the city�s potential corporate limits—land that, for the purposes of long-
range planning, is projected to serve the city's growth need for 30-40 years. Sanitary sewer and streets are
the most expensive items of public infrastructure that must be provided to all new development within the
City.
Land included in the growth area must have the potential to be connected to the sewer system, which is
based on watershed boundaries. Guiding new developments to watersheds that can be served by gravity
flow to the City�s sewage treatment plant facility enables the most cost effective provision of this essential
City service. The growth boundary is used when making decisions regarding the extension of infrastruc-
ture, the approval of subdivisions, the approval of agreements with other governmental jurisdictions re-
garding growth, and in response to annexation requests. In addition, the City coordinates with private utili-
ties to ensure that areas proposed for development can be fully served.
A Public Works land inventory completed in 2006 indicates that Iowa City had more than 1,496 acres of va-
cant residential land within city limits, mostly in the South and Northeast District The designated growth
area contains an additional 3,095 acres of vacant residential land. Assuming that future residential develop-
ment occurs at densities similar to recent development patterns, Iowa City could reach build out capacity in
2034. However, if residential development were to maximize current zoning capacity, Iowa City would not
reach build out capacity until 2055. Neither of these assumptions accounts for the potential of infill develop-
ment in areas like Riverfront Crossings and Towncrest. Infill development at higher densities would absorb
some housing demand, thus conserving farmland and maximizing the use of infrastructure.
Prioritization of Investment in Infrastructure
When the City prioritizes public investment in infrastructure and public amenities, improvements that
serve properties within the corporate limits of Iowa City that further the City's policy of compact and con-
tiguous growth, including urban infill development, should be given priority. This policy will guide deci-
sion-making for the City's Capital Improvement Program (CIP). The CIP is one of the most effective tools
the City has to affect the timing and direction of growth, quality of life, the growth of basic industry, and
the cost of housing. Historically the City invested in infrastructure to accommodate moderate growth ra-
ther than building infrastructure prior to development In the future, City Council will use the CIP to effec-
tively guide the location and timing of growth in the community through an annual review and prioritiza-
tion of the CIP prior to the budget process.
While continued development of new neighborhoods and employment areas are anticipated in the City's
growth area, a significant policy focus for the City is to accommodate growth to the extent possible by fa-
cilitating higher density urban infill development, such as in the Riverfront Crossings District, and through
stabilization and revitalization efforts in existing neighborhoods and commercial areas, such as Down-
town, Towncrest, and Sycamore Mall.
Annexation Policy
Growth and development outside the corporate boundaries, within the long-range planning area and be-
yond, is influenced by the City through annexation and the Iowa City/Johnson County Fringe Area Agree-
ment Annexations occur primarily in response to petitions filed by the owners of property requesting to
be annexed. Voluntary annexation is generally viewed positively when the following conditions exist:
1. The area under consideration falls with the long-range planning boundary;
2. Development in the area proposed for annexation will fulfill an identified need without imposing
an undue financial burden on the City; or
3. Control of development is in the City's best interest
Annexations will typically be achieved through voluntary means. Involuntary annexations, which are initi-
ated by the City against a property owner's wishes, are considered only in extraordinary circumstances.
As part of any proposed annexation or development, the City must evaluate the capacity of existing infra-
structure, including streets, water, and sewer.
17
A community cannot grow without major in-
vestments In Infrastructure, including water
purification and waste water treatment. In
2011, Iowa City's water treatment facility pro-
vided an average of 5.54 million gallons of water
per day to customers.
18
An aerial view or the eastern edge of Iowa Ory.
An important goal of Iowa C ty's Comprehen-
sive Plan is to manage urban growth by en-
couraging compact and contiguous develop-
ment. Contiguous development Is more effi-
cient since building on land that Is adjacent to
existing development and connecting into
existing road and utility networks is cost and
resource efficient and ensures that neighbor-
hoods are not isolated. This saves money for
developers, property owners, and taxpayers.
Fringe Area Agreement
State enabling legislation permits a city to regulate the subdivision of land within two miles of the Cit,/s
corporate boundaries. This area is (mown as the urban fringe area. Counties that enact ordinances control
the land uses permitted in this same area through zoning.
In the interest of managing growth and development in Iowa City's two-mile fringe area in a mutually ac-
ceptable manner, Johnson County and Iowa City have agreed on the appropriate land uses and standards
for development As Johnson County considers rezoning applications and Iowa City reviews subdivisions,
their decisions will be governed by the Iowa City/Johnson County Fringe Area Policy Agreement
The Agreement focuses exurban development in the area north of Iowa City, encourages development in
Iowa City�s growth area only upon annexation, and provides some incentive for the preservation of open
space and environmentally sensitive features. The agreement has been working well to achieve the goals
of both the City and County. Although it will be reviewed periodically for updates, the implementation of
the Fringe Area Agreement will likely continue without significant changes. [See Fringe Area Map in the
appendix to this document.]
Growth and the Environment
Iowa City's vision for the future includes environmental protection as a basic tenet This includes strong
community support for the Sensitive Areas Ordinance (SAO). Growth and development should be man-
aged such that the environmental quality of the community is not sacrificed. Measures should be taken in
all private and public projects to ensure that any impacts on regulated environmental features are mini-
mized.
The City's Sensitive Areas Inventory identifies the general location of woodlands, wetlands, regulated
slopes, hydric soils, prairie remnants, stream corridors, and archaeological sites (See the appendix). Based
on the information provided in the inventory, an ordinance was adopted in 1995 to provide protections
for the identified environmentally sensitive areas. The ordinance requires consideration of environmental
features during the development process and encourages construction that respects and protects natural
areas. As the City continues to grow and redevelop, natural areas that contribute to the health and charac-
ter of the city will be protected. The City should encourage subdivisions that not only preserve environ-
mental areas but that incorporate them as assets in the overall development as private or public open
space.
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4
Date: July 11, 2018
CITY OF IOWA CITY
MEMORANDUM
To: Geoff Fruin, City Manager
From: Anne Russett, Senior Planner
Tracy Hightshoe, Neighborhood & Development Services Director
Re: Comprehensive Plan — Affordable Housing Annexation Policy
Introduction
At the City Council's July 3, 2018 meeting the Council held a public hearing on an amendment to
the Comprehensive Plan's Annexation Policy related to affordable housing. During that meeting
the Council voted to continue the public hearing on the amendment to July 17 in order to obtain
feedback from the Housing and Community Development Commission (HCDC) on the proposed
policy.
HCDC reviewed the draft policy at their July 10 meeting. In addition, the Mayor provided some
feedback on the draft policy. Therefore, this memo outlines the following:
1. The original policy as drafted by staff;
2. Suggested language from the Mayor on revisions to the draft policy; and
3. Recommendations from HCDC on revisions to the draft policy.
All revisions pertain to one sentence in the draft policy, which is in bold text below.
Original Draft Policy:
If the annexation is for residential development that will result in the creation of ten
(10) or more new housing units, the development will support the City's goal of
creating and maintaining the supply of affordable housing. Such support shall be
based on providing affordable units equal to 10% of the total units in the annexed
area with an assurance of long term affordability, preferably for a term of not less
than 20 years. Income targets shall be consistent with the City's existing program
requirements. How the development provides such support will vary depending
on the particular circumstances of the annexation, and may include, but is not
limited to, transfer of lots/units to the City or an affordable housing provider; fee -
in -lieu paid to the City's affordable housing fund; and/or participation in a state or
federal housing program. In determining the most desirable option
consideration shall be given to the interest of both the City and the Iowa City
Community School District in not exacerbating the burdens on
neighborhoods and elementary schools experiencing challenges related to
concentrations of poverty. An agreement committing the Owner/Developer to
the affordable housing obligation, shall be required prior to annexation, and shall
be further memorialized, if necessary, in a conditional zoning agreement.
July 19, 2018
Page 2
Suggested language from the Mayor:
Change the line in bold to:
In determining the most desirable option
r^'^t^^"^ gnngentrations of poverty,preference shall be weighted toward options
that help achieve better socio-economic balance among Iowa City neighborhoods
and among schools in the Iowa City Community School District.
HCDC Recommendation:
Change the line in bold to:
In determining the most desirable option ^^^si^ 'mato^ `h"" be given t^ the
of both the Gity and the Iowa Git y (`..w.w unity SGhegl-Distript O not P erbating
the hur dpns n neighborhogds and elementary GGhegls experienGing Ghall... ges
r^'^t^^' t^ gnngentrations of poverty,preference shall be weighted toward options
that support economic, educational, and community building opportunities for all
residents and help achieve better socioeconomic balance among Iowa City
neighborhoods and among schools in the Iowa City Community School District.
N
Prepared by Ben Clark, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436
Resolution No. 18-212
Resolution approving plans, specifications, form of agreement,
and estimate of cost for the construction of the Wastewater
Treatment Facility Influent Channel Modifications 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.
Whereas, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the WWTF Influent Channel Modifications account
# V3152.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 31' day of July,
2018. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 7t' day of August 2018, or at a special meeting called for that
purpose.
Passed and approved this 17th day of July 2018.
�J
Maor
Approved by
Attest: v ct C���-(o-c S'
Deputy City 6TBrk — ` City Attorney's Office
Resolution No. 18-212
Page 2
It was moved by Mims and seconded by aotchway the Resolution be
adopted, and upon roll call there were:
Ayes:
X
x
x
x
x
x
Nays:
Absent:
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
p22 CITY OF IOWA CITo,_„-,a
COUNCIL ACTION REPO
July 3, 2018
Resolution setting public hearing on July 17th, 2018 on plans,
specifications, form of contract, and estimate of cost for the construction
of the Wastewater Treatment Facility Influent Channel Modifications
Project, establishing amount of bid security to accompany each bid,
directing City Clerk to publish notice to bidders, and fixing time and place
for receipt of bids.
Prepared By:
Ben Clark — Senior Civil Engineer
Reviewed By:
Tim Wilkey— Wastewater Superintendent
Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact:
The estimated cost for this project is $158,000 and funds are available
in the WWTF Influent Channel Modifications account #V3152.
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
None
Executive Summary:
This agenda item begins the bidding process for the Wastewater Treatment Facility Influent
Channel Modifications Project.
Background / Analysis:
The Wastewater Treatment Facility has been experiencing grit build-up in the new influent
channel that was constructed during the Wastewater Treatment Facilities Consolidation
Project. This project will install fillets and weirs to help reduce maintenance and repairs
associated with the sediment accumulation. It will also prevent sediment from accumulating and
interfering with operations and flow metering.
Plans and specifications were prepared by the original Engineer of Record at no extra charge
to the City. The construction costs would have been incurred regardless had they been
included in the original contract.
Prepared by: Tracy Highlshoe, NDS Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
Resolution No. 1a -_2L3_
Resolution establishing the fee an owner may opt to pay in lieu of
providing affordable housing in the Riverfront Crossings District and
rescinding Resolution No. 16-216.
Whereas, the Riverfront Crossings Affordable Housing Requirement set forth in Iowa City Code
of Ordinances Section 14-2G-8 establishes an affordable housing requirement for certain
projects, which may be met by providing on-site owner -occupied housing, on-site affordable
rental housing, or by providing a fee in lieu contribution to an affordable housing fund to be
established by the City; and
Whereas, in accordance with Section 14 -2G -8F, the in -lieu contribution per dwelling unit shall
be determined biennially by resolution of the City Council based on a formula that analyzes the
difference between renting a market rate unit and renting a dwelling unit affordable to an
income -qualified household; and
Whereas, with assistance from the National Development Council, staff has developed a
formula that analyzes the difference in project value comparing a market -rate project to a project
with a 10% affordability requirement, and used this formula to determine a per-unit fee
developers may opt to pay in lieu of providing affordable housing dwelling units; and
Whereas, the formula takes into account local market conditions such as rents, vacancy rate,
capitalization rate, HOME Fair Market Rents, operation expenses and unit mix;
Whereas, using this formula the fee is $94,652 per unit; and
Whereas, Resolution No. 16-216 established the current fee.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. In accordance with Section 14 -2G -8F, an owner may contribute to a Riverfront
Crossings District affordable housing fund a fee in the amount of $94,652 per Affordable
Housing dwelling unit the owner would otherwise be required to provide pursuant to Section 14-
2G-8. The fee applies to all affordable housing agreements entered into after passage of this
resolution.
2. Resolution No. 16-216 is rescinded.
Passed and approved this 171h day of July, 2018.
Attest:
Deputy Clty Clerk
e__�4 /. ook�_
Ma r
(0
City
City Attorney's Office
W
Resolution No. 18-213
Page 2
It was moved by Botchway and seconded by Mims the
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x`
x
x
x
ABSENT:
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
CITY OF 1 O WA CIT07-17.18
COUNCIL ACTION REPO
July 17, 2018
Resolution establishing the fee an owner may opt to pay in lieu of
providing affordable housing in the Riverfront Crossings District and
rescinding Resolution No. 16-216.
Prepared By: Tracy Hightshoe, Neighborhood & Development Services Director
Reviewed By: Geoff Fruin, City Manager
Simon Andrew, Assistant to the City Manager
Fiscal Impact: NA
Recommendations: Staff: Approval
Commission: NA
Attachments: Resolution
Executive Summary:
The Riverfront Crossings Affordable Housing Requirement set forth in Iowa City Code of
Ordinances 14-2G-14 establishes an affordable housing requirement for certain projects, which
may be met by providing on-site affordable housing or by providing a fee -in -lieu of contribution
to an affordable housing fund. The fee must be determined biennially by City Council resolution.
In July of 2016, the fee, calculated with assistance by the National Development Council (NDC),
was set at $80,872 per unit. The fee for the next two years, also calculated with assistance
from NDC, is proposed to be $94,652 per unit.
Background / Analysis:
In 2016, the National Development Council assisted staff formulate the methodology for
calculating a fee in lieu that would be paid by developers in lieu of including affordable housing
in Riverfront Crossing developments subject to the affordable housing requirement. It was
determined that the most appropriate methodology for arriving at a fee in lieu was to compare
the value of a fully market rate development to the value of a development subject to the
Riverfront Crossings 10% affordable unit requirement. The difference between these two
values would be the fee in lieu since, under the ordinance, developers would be required to
either provide the units on-site or pay the fee in lieu.
To make the necessary computations, it was determined to use the standard process for valuing
rental properties that is employed by the real estate and financial industries. The National
Development Council worked with Cook Appraisal, Commercial Valuation Research Group, to
prepare a multi -family housing and development study for the Iowa City market. This study
serves as the basis for the fee in lieu.
The study looks at various data, including number of units by bedroom/unit type, rents and
vacancy levels by unit type, trending for rents and vacancy levels, and operating expense
information and ratios.
The National Development Council worked with Cook Appraisal to review the former
methodology and update the data, specifically the capitalization rate (the rate of return of an
investment property based on the income the property is expected to generate), vacancy rate,
CITY OF IOWA CITY
COUNCIL ACTION REPORT
expense ratios, unit mix, and rents with 2017 information, the most recent information
available.
In the 2018 update, there is one change to the methodology used to calculate the fee in lieu.
In the original methodology the utility allowance for tenant paid utilities was removed from the
HOME Fair Market Rent, the maximum rent charged. In practice, upon signing an Affordable
Housing Agreement, owners are allowed to charge up to the full HOME rent limit without
subtracting a utility allowance. In the 2018 update, the utility allowance is no longer removed
from the maximum rent to be consistent with the allowed rent in the Affordable Housing
Agreements. After updating the model based on this recent data, the fee in lieu has been set
at $94,652 per unit.
ZONE 1 ONLY- NET FNIRs
ap Rate
6.50%
toancy
7.33% Overall Zone 1 vacancy. Vacancy rate for units built after 2009 is 4.47.
panse Ratio
40% Rate recommended by Cook Appraisal
pans, Ratio
45% Rate recommended by Cook Appraisal
fordability
101.
a Rents
Per Mkt Study Zone 1 -Tenant paid utilities
fordable Rents
High HOME Rent
,it Mir,
Per Market Study Zone 1 Distribution
fordable Unit Mix
Pro Rata with Market Units
of Value Diff Used for FIL
100%
Zone 1 Unit Distribution per Study
Type Number Total Units Percent
eff 267 3041 8.78%
1 764 3041 25.12'/.
2 1137 3041 37.39'/.
3 468 3041 15 39%
4 317 3041 10.42'/.
5 88 3041 2.89'/.
3041 100.00%
1 764 3041 25.12'/.
2 1137 3041 37.39'/.
3+ 873 3041 28.71/.
3041 100.00%
10% Affordable
Type # Mkt Rent Net FMRs Gross Ren
Eff 3 $ 734 $ 26,424
1 9 $ 805 $ 86,940
2 14 $ 965 $ 162,120
3 10 $1,450 $ 174,000
4+ 0 $2,077 $ -
Eff 1 $ 625 $ 7,500
1 1 $ 723 $ 8,676
2 1 $ 956 $ 11,472
3 1 $ 1,391 $ 16,692
4+ 0 $ 1,684 $ -
40 $ 5,379 $ 493,824
Gross Rent $ 493,824
Vacancy $ 36,197
EGR $ 457.627
Expenses '$ 205,932
Income Approach to Value $ 3,872,226
e Differentialli in Lieu
Mkt $ 4,250,833
Affordable $ 3,872,226
Unit $ 94,651.71
of Val Diff for FIL
100% Market Rate
Type
#
Mkt Rent
Gross
Rent
Eff
4
$ 734
$ 35,232
1
10
$ 805
$ 96,600
2
15
$ 965
$ 173,700
3
11
$ 1,450
$ 191,400
4+
0
$ 2,077
$
-
40
$ 496,932
Gross Rent
$ 496,932
Vacancy
$ (36,425)
EGR
$ 460,507
Expenses
$ 184,202.75
NOI
$ 276,304
Income Approach to Value
$ 4,250,833
1 764 3041 25.12'/.
2 1137 3041 37.39'/.
3+ 873 3041 28.71/.
3041 100.00%
10% Affordable
Type # Mkt Rent Net FMRs Gross Ren
Eff 3 $ 734 $ 26,424
1 9 $ 805 $ 86,940
2 14 $ 965 $ 162,120
3 10 $1,450 $ 174,000
4+ 0 $2,077 $ -
Eff 1 $ 625 $ 7,500
1 1 $ 723 $ 8,676
2 1 $ 956 $ 11,472
3 1 $ 1,391 $ 16,692
4+ 0 $ 1,684 $ -
40 $ 5,379 $ 493,824
Gross Rent $ 493,824
Vacancy $ 36,197
EGR $ 457.627
Expenses '$ 205,932
Income Approach to Value $ 3,872,226
e Differentialli in Lieu
Mkt $ 4,250,833
Affordable $ 3,872,226
Unit $ 94,651.71
of Val Diff for FIL
Julie Voparil
From: Kellie Fruehling
Sent: Monday, July 16, 2018 6:36 AM
To: Julie Voparil ate Handouts Distributed
Subject: Fwd: Council and the public should be shown the fee -in -lieu formui3
`1L4L
Sent from my iPhone (Date)
Begin forwarded message:
From: Cheryl <cherylcruise@aol.com>
Date: July 15, 2018 at 3:06:33 PM CDT
To: council@iowa-city.org
Subject: Council and the public should be shown the fee -in -lieu formula
2 years ago this is what happened with the fee -in -lieu formula:
Council was never shown the formula but just the "answer". The formula changed after the committee
disbanded.
NDC used Cook rental survey from Zone 1 as market rate.
They used Fair Market Rent as "affordable".
They used a mythical building with 30% 3 bedroom units.
They used a 5% vacancy rate but did not apply expenses to vacant units.
They used an expense ratio of 43% for market rate buildings and 47% for buildings with 30% affordable
units.
Problems:
Council and the public should be shown the formula.
Cook rental survey is voluntary and may represent 20% of all rental units. Some buildings are old. Amenities
vary. This is not the same as new construction.
Fair Market Rent is not the same as the Iowa City definition of affordable housing (paying 30% of income for
rent). LIHTC rental tables should be used instead as they are 30% of income. This is what other cities do. Fair
Market Rent is volatile. From 2017 to 2018 it goes down 6%.
It is not necessary to use a mythical building. Apply the formula to the actual planned building.
Vacant units still have expenses.
An additional 4% of building gross rent to certify income of a handful of units is inaccurate. Whole
buildings are managed year round for 6%.
We do not know what changes have been made for the new "answer".
Instead of this model we could use a model like Boulder CO where fee -in -lieu is based on type of unit, number
of buildings in the development, and sq ft of unit. They recalculate every year and have a nice chart for
developers on their public website.
Or we could do as Chicago does and just make up a number for fee -in -lieu.
Cheryl Cruise
Iowa City IA
Prepared by: Kirk Lehmann, Neighborhood Services, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230
RESOLUTION NO. 18-214
Resolution adopting the Aid to Agencies process
Whereas, the Iowa City Housing and Community Development Commission formed a
subcommittee to discuss past and current practices and policies for the Aid to Agencies process
of funding public service providers; and
Whereas, the Iowa City Housing and Community Development Commission wishes to better
balance stable funding for existing agencies with funding for developing agencies and/or
agencies that have not historically received funding; and
Whereas, the Iowa City Housing and Community Development Commission also wants to
improve the Aid to Agencies process itself; and
Whereas, the City solicited input from agencies, and held public meetings during which they
discussed the Aid to Agencies process; and
Whereas, the Aid to Agencies Process Recommendations dated July 10, 2018 is attached
hereto as Appendix A; and
Whereas, the Iowa City Housing and Community Development Commission has recommended
that Appendix A be approved; and
Now, Therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that
1. The Aid to Agencies Process Recommendations dated July 10, 2018, containing changes
to the Aid to Agencies process and attached hereto as Appendix A, is hereby approved
and adopted.
Passed and approved this 171 day of July, 2018.
Attest:
Deputy C4 Clerk
f -
Mayor
City Attorney's Office
10
Resolution No.
Page 2
18-214
It was moved by Botchway and seconded by Mims
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x'
x
x
ABSENT:
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
the
Appendix A
"Emerging" Agency Funding. HCDC will set aside 5% of A2A funds for "emerging" agencies,
defined as any agencies that have not existed as a legal entity for at least 2 years or have not
received A2A funds in any of the last 5 years. These funds will have a $5,000 funding minimum
and will be allocated annually to help new organizations develop. This source should not be
expected to become permanent. Applications will be separate from the United Way Joint
Funding Process, allowing them to be smaller and more customized. Applications will be due at
the same time as the City's HOME/CDBG funding round in December, awarding funds closer to
the reception of funds. Two years from the year they were funded, an Emerging Agency can
apply for Legacy funding, so if an agency was awarded Emerging funds in 2019, they could
apply for Legacy funding in 2021. Unused Emerging Agency funding may be shifted to Legacy
Agencies.
"Legacy" Agency Funding. All remaining funding will be available to "legacy" agencies, defined
as agencies that have existed as a legal entity for at least 2 years and have received A2A
funding in any of the last 5 years. This funding is not guaranteed but will provide a minimum of
$15,000 each year over 2 years (funding may be subject to a prorated increase or decrease
depending on annual funding amounts). Legacy agencies will use the United Way Joint Funding
Process application and will submit regular reports to HCDC to ensure accountability. If an
agency does not perform to a minimum standard after its first year of funding, funds may be.
revoked.
HCDC will strive to apportion funds using the following guidelines: 70% of funds to High
priorities, 25% to Medium priorities, and 5% to Low priorities. This will help spread funding
between priority groups and reduce competition for high-priority designations. Staff will
recommend an agency's priority level based on its central mission, and HCDC will approve. If
HCDC determines a priority level does not have appropriate applications, funds may be moved
between priority groups.
r 1 CITY OF IOWA CIT
�r i!•r 07-17-18
COUNCIL ACTION REPO �°
July 17, 2018
Resolution adopting the Aid to Agencies process
Prepared By:
Kirk Lehmann, Community Development Planner
Reviewed By:
Erika Kubly, Neighborhood Services Coordinator
Tracy Hightshoe, Director of Neighborhood and Development Services
Fiscal Impact:
None
Recommendations:
Staff: Approval
Commission: Housing and Community Development Commission
(HCDC), approval 8-0
Attachments:
Resolution
HCDC Memo Aid to Agencies Process Recommendations, dated July
10, 2018
Executive Summary:
After its May 24, 2018 HCDC meeting, HCDC reviewed the Aid to Agencies (A2A) allocation
process. Historically, A2A provided predictable funding for nonprofits, but it also has funded new
and developing agencies. The subcommittee developed recommendations to balance both
functions of A2A funds while improving the allocation process. HCDC voted to send the
recommendations to City Council for consideration after discussions on June 21 and July 10.
Background/ Analysis:
The attachment discusses the background, solutions and recommendations made by HCDC
regarding the Aid to Agencies process. A summary of the recommendations is as follows:
"Emerging" Funding. HCDC will set aside 5% for "emerging" agencies, defined as any agencies
that have not existed as a legal entity for at least 2 years or have not received A2A funds in any
of the last 5 years. These funds, allocated at a $5,000 minimum increment, will be allocated
annually to help agencies develop. Applications will be simplified and separate from the United
Way Joint Funding Process. They will be due at the same time as the City's HOME/CDBG
funding round. Two years from the year they were funded, an Emerging Agency can apply for
Legacy funding (i.e. an agency awarded funds in 2019 could apply for Legacy funds in 2021).
"Legacy" Funding. All remaining funds are reserved for "legacy" agencies, defined as agencies
that have existed as a legal entity for at least 2 years and have received A2A funding in any of
the last 5 years. These funds, allocated at a $15,000 minimum increment, will be provided each
year over two years (though funding may be subject to a prorated change depending on annual
funding amounts). Applications will be through use the United Way Joint Funding Process.
Regular reports,will be required, as will a minimum standard of performance. Ranking criteria
will also be used to make the funding process more transparent and objective.
HCDC will aim to apportion 70% / 25% / 5% of funds to High / Medium / Low priorities to spread
funding between priority groups and reduce competition for high-priority designations. Staff will
recommend an agency's priority level based on its central mission, and HCDC will approve.
� r �
®�mat
CITY OF IOWA CITY
COUNCIL ACTION REPORT
HCDC recommends that City Council consider and approve these changes to the Aid to Agency
process. Once Council completes its review, staff will send a memo to applicants summarizing
changes made to the A2A process, along with the rationale, to help set expectations.
CITY OF IOWA CITY
MEMORANDUM
Date: July 12, 2018
To: Iowa City City Council
From: Housing and Community Development Commission
Re: Aid to Agencies Recommendations
Introduction:
Following the May 24, 2018 Housing and Community Development Commission (HCDC)
meeting, a subcommittee reviewed the Aid to Agencies (A2A) allocation process. Historically, A2A
provided predictable funding for nonprofit agencies. More recently, it has also provided new and
developing agencies flexible funding. The subcommittee developed the following
recommendations which seek to balance both functions of A2A funds, as well as improve the
allocation process. HCDC voted to send the recommendations to City Council for consideration.
History/Background:
Several policies have been developed in the past to prioritize agencies for the funding allocation.
• Legacy Agencies: In the past, agencies who continually receive funding each year were
prioritized in funding allocations. This process provided a consistent source of funding for
these agencies, allowing them to retain staff and anticipate budget amounts year-to-year.
However, it made it difficult for new agencies to benefit from the program.
• Priority Needs: The prioritization of agencies into low, medium, and high based on
population served was developed to ensure funds had the greatest impact and is required
by CITY STEPS. The current use of these categories in the allocation process tends to
be ineffective because nearly all agencies attempt to meet the high priority category.
• Minimum Threshold: A minimum funding threshold of $15,000 is set to allow for funding
of a half-time or quarter position at an agency. The amount of staff time required to
administer each grant and level of community benefit were also considered when the
minimum threshold was implemented.
An HCDC subcommittee solicited feedback from agencies and met June 7 and June 15, 2018 to
identify ways to improve the A2A allocation process. The subcommittee drafted
recommendations, which were reviewed by the full committee on June 21 and July 10.
Discussion of Solutions:
The subcommittee received comments from multiple A2A recipients, many of which echoed
previously mentioned feedback. The following themes to improve the process were developed:
• Enhance objectivity: Multiple agencies mentioned a desire to increase objectivity in
allocating funds. They were supportive of objective criteria in evaluating applications.
• Avoid duplication of work: HCDC should be careful about how to fund agencies that are
doing the same work because they don't want to duplicate services with limited funds.
• More clarity in expectations. Several agencies were confused about the process and
exactly how HCDC chose to allocate funds. Understanding was also lacking on which
agencies got to present to HCDC. Clearer expectations with agencies need to be set.
• Minimum funding: Some saw a minimum funding amount as arbitrary. However, it makes
the review process more manageable for HCDC and provides greater certainty for staffing.
Based on this feedback, the subcommittee tried to balance stable funding with opportunities for
new agencies. Recommendations primarily focus on sustainable funding for agencies, but they
also provide funds for new agencies. The following summarizes general recommendations:
July 12, 2018
Page 2
"Emerging" Agency Fundinq. HCDC will set aside 5% of A2A funds for "emerging" agencies,
defined as any agencies that have not existed as a legal entity for at least 2 years or have not
received A2A funds in any of the last 5 years. These funds will have a $5,000 funding minimum
and will be allocated annually to help new organizations develop. This source should not be
expected to become permanent. Applications will be separate from the United Way Joint Funding
Process, allowing them to be smaller and more customized. Applications will be due at the same
time as the City's HOME/CDBG funding round in December, awarding funds closer to the
reception of funds. Two years from the year they were funded, an Emerging Agency can apply
for Legacy funding, so if an agency was awarded Emerging funds in 2019, they could apply for
Legacy funding in 2021. Unused Emerging Agency funding may be shifted to Legacy Agencies.
"Legacy" Agency Funding. All remaining funding will be available to "legacy" agencies, defined as
agencies that have existed as a legal entity for at least 2 years and have received A2A funding in
any of the last 5 years. This funding is not guaranteed but will provide a minimum of $15,000 each
year over 2 years (funding may be subject to a prorated increase or decrease depending on
annual funding amounts). For the first round, funding will be randomly staggered to spread
applications between years. Legacy agencies will use the United Way Joint Funding Process
application and will submit regular reports to HCDC to ensure accountability. If an agency does
not perform to a minimum standard after its first year of funding, funds may be revoked.
HCDC will strive to apportion funds using the following guidelines: 70% of funds to High priorities,
25% to Medium priorities, and 5% to Low priorities. This will help spread funding between priority
groups and reduce competition for high-priority designations. Staff will recommend an agency's
priority level based on its central mission, and HCDC will approve. If HCDC determines a priority
level does not have appropriate applications, funds may be moved between priority groups.
Financial Impact:
These recommendations will have no fiscal impact on the City. Fiscal impacts for agencies may
include more evenly distributed funding around agencies and greater levels of transparency.
Recommendation:
HCDC recommends that City Council consider and approve these changes to the Aid to Agency
process. Once Council completes its review, staff will send a memo to applicants summarizing
changes made to the A2A process, along with the rationale, to help set expectations.
Io
Appendix A
er in " Aaencv Funding. HCDC will set aside 5% of A2A funds for "emerging" agencies,
defin as a y agencies that have not existed as a legal entity for at least 2 years or have not
receive 2A nds in any of the last 5 years. These funds will have ,000 funding minimum
and will be to ed annually to help new organizations develop. is source should not be
expected to b om permanent. Applications will be separate fr m the United Way Joint
Funding Process, to 'ng them to be smaller and more Gusto ized. Applications will be due at
the same time as th Ci 's HOME/CDBG funding round in cember, awarding funds closer to
the reception of funds. ears from the year they wer funded, an Emerging Agency can
apply for Legacy funding, i an agency was awarded merging funds in 2019, they could
apply for Legacy funding in 2 Unused Emerging ency funding may be shifted to Legacy
Agencies.
"Legacy" Agency Funding. All remaini undin will be available to "legacy" agencies, defined
as agencies that have existed as a legal t' for at least 2 years and have received A2A
funding in any of the last 5 years. This fun is not guaranteed but will provide a minimum of
$15,000 each year over 2 years (fundin ay ' subject to a prorated increase or decrease
depending on annual funding amoun . For the rpt round, funding will be randomly staggered
to spread applications between yea . Legacy agenda will use the United Way Joint Funding
Process application and will sub regular reports to VDC to ensure accountability. If an
agency does not perform to a inimum standard after its�fi�st year of funding, funds may be
revoked. `e,
HCDC will strive to app ion funds using the following guidelines: 70°Zo of funds to High
priorities, 25% to M ium priorities, and 5% to Low priorities. This wil elp spread funding
between priority 9 ups and reduce competition for high-priority designatlb s. Staff will
recommend an/envy's priority level based on its central mission, and HCDC ill approve. If
HCDC detera priority level does not have appropriate applications, funds y be moved
between priroups.
Page 2 of 9
Y
Prepared by Wendy Ford, Eoon. Dev. Coordinator, 410 E Washington St Iowa City IA 52240 356-5248
Resolution No. 18-215
Resolution Approving an Agreement for Private Development By and Among
the City, Foster Road Developers, L.L.C., Vintage Cooperative of Iowa City,
and Ewing Land Development & Services, L.L.C. for Foster Road and The
Vintage Cooperative Senior Living
Whereas, Foster Road Developers, L.L.C. ("Developer") submitted a private redevelopment
proposal for the Foster Road extension between Dubuque Street and Prairie du Chien and
construction of a senior living facility (hereinafter the "Project), and a request for $3,367,000 in
financial assistance from the City; and
Whereas, on March 20, 2018, the Iowa City City Council adopted Resolution No. 18-75 approving
the Faster Road Urban Renewal Plan (hereinafter referred to as the "Urban Renewal Plan" or
"Plan") for the urban renewal area shown on Exhibit and legally described on Exhibit B attached
thereto ("Urban Renewal Area" or "Area");
Whereas, in exchange for the $3,367,000 in tax increment rebate grant funds, the developers
have committed to investing a minimum of $20,167,000 in development costs to construct
approximately 3,400 linear feet of public infrastructure to extend Foster Road and an elder
apartment housing development, including at least 50 dwelling units; and
Whereas, approximately 45% of the tax increment generated from development within the Foster
Road Urban Renewal Area will be set aside for low to moderate income housing assistance
throughout the city in accordance with Iowa Code Chapter 403; and
Whereas. Staff has reviewed the application and proposed Developer's Agreement and
recommends approval; and
Whereas, the City has determined the Project is consistent with and authorized by the Urban
Renewal Plan and all applicable State and federal laws, including, but not limited to, Iowa Code
Chapters 15A and 403; and
Whereas, the City believes that the Project and the fulfillment generally of this Agreement, are in
the vital and best interests of the City and in accord with the public purposes and provisions of
the applicable State and local laws and requirements under which the foregoing project has been
undertaken and is being assisted; and
Now therefore be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. That the Agreement for Private Development by and among the City of Iowa City Iowa,
Foster Road Developers, LLC, Vintage Cooperative of Iowa City and Ewing Land
Development & Services, LLC is in the public interest of the residents of Iowa City.
2. That said Agreement is consistent with and authorized by the Urban Renewal Plan and all
applicable State and federal laws including, but not limited to, Iowa Code Chapters 15A
and 403; and
Book: 5817 Page. 51 Seq:2
vage 3 of s Resolution No. 18-215
Page 2
3. That the Mayor is authorized and directed to execute the Agreement in a form approved
by the City Attorney, and the City Clerk is authorized and directed to attest the signature
and to affix the seal of the City Clerk.
4. That the Mayor and City Clerk be and they are hereby authorized and directed to take all
such actions and do all such things as they shall determine to be necessary or appropriate
to ensure the City's performance as provided therein.
5. That the City Clerk be directed to certify and record the resolution at Foster Road
Developers, LLC's expense.
6. That the City Manager is hereby authorized to administer the terms of the Agreement for
Private Redevelopment.
Passed and approved this 17th day of Suly , 2018.
l
MAYOR
Approved by
ATTEST: a dew
Deputy LERK Qs City Attorneys Office
� lllllE3
Book: 5817 Page: 61 Seq:3
Page 4 of 9
Resolution No. —JB -,215
Page 3
It was moved by Mims and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x'
x
x
x
ABSENT:
x
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
Book: 5817 Page: 51 Seq:4
AGREEMENT
FOR
PRIVATE DEVELOPMENT
By and Among
THE CITY OF IOWA CITY, IOWA,
FOSTER ROAD DEVELOPERS, LLC,
VINTAGE COOPERATIVE OF IOWA CITY,
and
EWING LAND DEVELOPMENT & SERVICES, L.L.C.
Exhibit A
Map of Urban Renewal Area
Exhibit B
Legal Description of Urban Renewal Area
Exhibit C
Legal Description of Development Property
Exhibit D
Minimum Improvements and Uses
Exhibit E
Planned Development Sensitive Areas Development Plan
Exhibit F
Certificate of Completion
Exhibit G
Enforceability Opinion
Exhibit H
Temporary Construction Easement Agreement
Exhibit I
Memorandum of Agreement for Private Development
Exhibit J
Annual Certification
Exhibit K
Certification of Qualified Costs and Expenses
Exhibit L
Notice of No Tax Abatement Receipt
Exhibit M
Wage Theft Affidavit
Exhibit N
Minimum Assessment Agreement
THIS AGREEMENT FOR PRIVATE DEVELOPMENT is made by and among the City
of Iowa City, Iowa ('City"), a municipality, established pursuant to the Code of Iowa of the State
of Iowa and acting under the authorization of Iowa Code Chapter 15A and 403 (2017), as amended,
('Urban Renewal Act"); Ewing Land Development & Services, L.L.C., a limited liability company
organized under the laws of the State of Iowa and having an office for the transaction of business
at 909 W. 161h St., Pella, Iowa, 50219 ("Ewing"); Vintage Cooperative of Iowa City, a housing
cooperative organized under the laws of the State of Iowa and having an office for the transaction
of business at 909 W. 16`h St., Pella, Iowa 50219 ("Vintage"); and Foster Road Developers, LLC,
a limited liability company organized under the laws of the State of Iowa and having an office for
the transaction of business at 340 Herky Street, North Liberty, Iowa, 52317 ("Developer"),.
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has
undertaken a program for the clearance and reconstruction or rehabilitation of certain areas in the
City and has undertaken an economic development area in the City; and
WIIEREAS, on March 20, 2018, the Iowa City City Council adopted Resolution No. 18-
75 approving the Foster Road Urban Renewal Plan (hereinafter referred to as the "Urban Renewal
Plan" or "Plan") for the urban renewal area shown on Exhibit A and legally described on Exhibit
B ('Urban Renewal Area" or "Area"); and
WHEREAS, a copy of the Urban Renewal Plan as constituted on the date of this Agreement
has been or will be recorded among the land records in the office of the Recorder of Johnson
County, Iowa; and
WHEREAS, such Urban Renewal Plan permits the City to respond to development
opportunities as and when they may appear; and
WHEREAS, Vintage and Developer desire to construct certain public improvements and
elder apartment housing within the Urban Renewal Area, as further described in Exhibit D
"Minimum Improvements and Uses" and Exhibit E "Planned Development Sensitive Areas
Development Plan," (hereinafter, "the Project"); and
WHEREAS, on March 6, 2018, the City approved Ordinance 18-4740, a rezoning
ordinance that classified portions of the Area OPD/RS-12 in accordance with the Planned
Development Sensitive Areas Development Plan, said Ordinance having been recorded in Book
5763, Page 541-563 in the office of the Recorder of Johnson County, Iowa; and
WHEREAS, the City has determined the Project is consistent with and authorized by the
Urban Renewal Plan and all applicable State and federal laws, including, but not limited to, Iowa
Code Chapters 15A and 403; and
WHEREAS, the City believes that the Project and the fulfillment generally of this
Agreement, are in the vital and best interests of the City and in accord with the public purposes
and provisions of the applicable State and local laws and requirements under which the foregoing
project has been undertaken and is being assisted; and
WHEREAS, Vintage and Developer are willing to develop or cause the Project to be
completed in accordance with the uses specified in the Urban Renewal Plan and in accordance
with this Agreement; and
WHEREAS, the Project will generate, when complete, a minimum $14,000,000 of new tax
base upon which taxes will be paid pursuant to the protected school debt service levy, school
physical plant and equipment levy, county debt service levy, city debt service levy, community
college debt service levy, and school instructional support levy.
NOW, THEREFORE, in consideration of the promises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I. DEFINITIONS
Section 1. Definitions. In addition to other definitions set forth in this Agreement, all
capitalized terms used and not otherwise defined herein shall have the following meanings unless
a different meaning clearly appears from the context:
Agreement means this Agreement and all attachments hereto, as the same may be from time
to time modified, amended or supplemented.
Certificate of Completion means a certification in the form of the certificate attached hereto
as Exhibit F and hereby made a part of this Agreement.
Code means the Code of Iowa, 2017, as amended.
Construction Plans means the plans, specifications, drawings and related documents
reflecting the construction work to be performed by Vintage and Developer on the Development
Property and the other properties upon which the Public Improvements and Elder Apartment
Housing will be located; the Construction Plans shall be as detailed in the plans, specifications,
drawings and related documents which are submitted to the building inspector of the City as
required by applicable City codes.
County means the County of Johnson, Iowa.
Development Property means that portion of the Foster Road Urban Renewal Area described
in Exhibit C hereto.
Dwelling Units shall mean any habitable room or group of adjoining habitable rooms
located within a dwelling and forming a single unit with facilities used or intended to be used by
one household for living, sleeping, cooking and eating meals to be constructed on the Development
Property.
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Economic Development Grants mean the Tax Increment payments to be made by the City
to the Developer under Section 8.1 of this Agreement.
Elder Apartment Housing shall mean that portion of the Minimum Improvements related to
the construction of elder apartment housing, as defined in the Iowa City Code of Ordinances, to
be constructed by Vintage on the Development Property under this Agreement, as detailed in
Exhibit D attached to this Agreement.
Event of Default means any of the events described in Section 11.1 of this Agreement.
First Mortgage means any Mortgage granted to secure any loan made pursuant to either a
mortgage commitment obtained by Vintage and/or Developer from a commercial lender or other
financial institution to fund any portion of the construction costs and initial operating capital
requirements of the Minimum Improvements, or all such Mortgages as appropriate.
Foster Road Urban Renewal Tax Increment Fund means the special fund of the City created
under the authority of Section 403.19(2) of the Code and the Ordinance, which fund was created
in order to pay the principal of and interest on loans, monies advanced to or indebtedness, whether
funded, refunded, assumed or otherwise, including bonds or other obligations issued under the
authority of Section 403.9 or 403.12 of the Code, incurred by the City to finance or refinance in
whole or in part projects undertaken pursuant to the Urban Renewal Plan.
Low or Moderate -income Families means those families, including single person
households, earning no more than eighty percent (80%) of the higher of the median family income
of Johnson County or the State-wide non -metropolitan area, as determined by the latest United
States Department of Housing and Urban Development, Section 8 income guidelines.
Minimum Improvements shall mean the construction of the Public Improvements and Elder
Apartment Housing, together with all related site improvements, as detailed in Exhibit D hereto.
Mortgage means any mortgage or security agreement in which the Vintage and/or Developer
have granted a mortgage or other security interest in the Development Property, or any portion or
parcel thereof, or any improvements constructed thereon.
Net Proceeds means any proceeds paid by an insurer to Vintage and/or Developer under a
policy or policies of insurance required to be provided and maintained by Vintage and/or
Developer pursuant to Article V of this Agreement and remaining after deducting all expenses
(including fees and disbursements of counsel) incurred in the collection of such proceeds.
Ordinance means Ordinance No. 18-4747 of the City, adopted on May 1, 2018, under which
the taxes levied on the taxable property in the Foster Road Urban Renewal Area shall be divided
and a portion paid into the Foster Road Urban Renewal Tax Increment Fund.
Public Improvements shall mean that portion of the Minimum Improvements related to the
Foster Road pavement, public utilities, sidewalks and associated site development to be completed
by Developer on the Development Property under this Agreement which will be dedicated to the
City at no cost to the City, as detailed in Exhibit D attached to this Agreement.
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Qualified Costs and Expenses means the costs and expenses related to the design and
constriction ofthe Public Improvements, including the cost for acquisition of land within the right-
of-way to be dedicated to City; interest during construction until the substantial completion date
as described in Section 3.3 herein and for not more than six months thereafter; costs for demolition,
construction, landscaping, grading, drainage, engineering, plans and specifications for the Public
Improvements; and legal costs actually incurred in the preparation and adoption of the Urban
Renewal Plan and this Development Agreement, as well as the construction of the Public
Improvements.
Project shall mean the construction and operation of the Minimum Improvements on the
Development Property, as described in this Agreement.
State means the State of Iowa.
Tax Increments means those property tax revenues that are divided and made available to
the City for deposit in the Foster Road Urban Renewal Tax Increment Fund under the provisions
of Section 403.19 of the Code and the Ordinance.
Termination Date means the date of termination of this Agreement, as established in Section
12.11 of this Agreement.
Unavoidable Delays means delays resulting from acts or occurrences outside the reasonable
control of the party claiming the delay including but not limited to storms, floods, fires, explosions
or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts or other labor
disputes, acts of terrorism, delays in transportation or delivery of material or equipment, litigation
commenced by third parties, or the acts of any federal, State or local governmental unit (other than
the City with respect to the City's obligations).
Urban Renewal Plan means the Foster Road Urban Renewal Plan approved with respect to
the Foster Road Urban Renewal Area, described in the preambles hereof.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
Section 2.1. Representations and Warranties of the City. The City makes the following
representations and warranties:
a. The City is a municipal corporation and political subdivision organized under the
provisions of the Constitution and the laws of the State and has the power to enter into this
Agreement and carry out its obligations hereunder.
b. The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a breach
of, the terms, conditions or provisions of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the City is now a party or by which it is
bound, nor do they constitute a default under any of the foregoing.
(g) Vintage and Developer will use their best efforts to obtain, or cause to be obtained,
in a timely manner, with respect to the Elder Apartment Housing and Public Improvements,
respectively, all required permits, licenses and approvals, and will meet, in a timely manner, all
requirements of all applicable local, state, and federal laws and regulations which must be obtained
or met before the Minimum Improvements may be lawfully constructed.
(h) Ewing, Vintage and Developer have not received any notice from any local, state
or federal official that the activities of Ewing, Vintage or Developer with respect to the Property
may or will be in violation of any environmental law or regulation (other than those notices, if any,
of which the City has been notified). Ewing, Vintage and Developer are not aware of any State or
federal claim filed or planned to be filed by any party relating to any violation of any local, State
or federal environmental law, regulation or review procedure, and Ewing, Vintage and Developer
are not aware of any violation of any local, State or federal law, regulation or review procedure
which would give any person a valid claim under any State or federal environmental statute with
respect thereto.
(i) Vintage and Developer have firm commitments for construction or acquisition and
permanent financing for their respective obligations under the Project in an amount sufficient,
together with equity commitments, to successfully complete the Elder Apartment Housing and
Public Improvements, respectively, in accordance with the Construction Plans contemplated in
this Agreement and the performance and maintenance bonds required under Section 6.8 hereof
relative to the Public Improvements.
0) Vintage and Developer will cooperate fully with the City in resolution of any
traffic, parking, and trash removal or public safety problems that may arise in connection with the
construction and operation of the Minimum Improvements.
(k) There are no actions, suits or proceedings pending or threatened against or affecting
Ewing, Vintage or Developer in any court or before any arbitrator or before or by any
governmental body in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the business (present or prospective), financial position or results of
operations of Ewing, Vintage or Developer or which in any manner raises any questions affecting
the validity of the Agreement or Ewing's, Vintage's and Developer's ability to perform their
obligations under this Agreement.
(1) Ewing and Developer would not undertake their obligations under this Agreement
without the payment by the City of the Economic Development Grants pursuant to this Agreement.
(m) Developer shall dedicate (1) the Public Improvements and (2) all rights-of-way
acquired for purposes of constructing and maintaining the Public Improvements, if any, to the City
once constructed to the City's satisfaction, at no cost to the City.
(n) Vintage and Developer expect that, barring Unavoidable Delays, construction of
the Elder Apartment Housing and Public Improvements, respectively, shall be complete on or
before December 31, 2019.
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( C. All covenants, stipulations, promises, agreements, and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and
obligations of the City only, and not of any governing body member, officer, agent, servant or
employee of the City in the individual capacity thereof.
Section 2.2 Representations and Warranties of Ewing Vintage and Developer. Ewing,
Vintage and Developer make the following representations and warranties; such representations
and warranties being limited to each of their respective entities:
(a) Ewing is a limited liability company, duly organized under the laws of the State of
Iowa, has power to enter into this Agreement and to perform its obligations hereunder, and is not
in violation of any provisions of its certificate of organization, operating agreement, any other
agreement or the laws of the State of Iowa.
(b) Vintage is a housing cooperative, duly organized under the laws of the State of
Iowa, has the power to enter into this Agreement and to perform its obligations hereunder, and is
not in violation of any provisions of its articles of incorporation, bylaws, any other agreement or
the laws of the State of Iowa.
(c) Developer is a limited liability company, duly organized under the laws of the State
of Iowa, has power to enter into this Agreement and to perform its obligations hereunder, and is
not in violation of any provisions of its certificate of organization, operating agreement, any other
agreement or the laws of the State of Iowa.
(d) This Agreement has been duly and validly authorized, executed and delivered by
Ewing, Vintage and Developer and, assuming due authorization, execution and delivery by the
City, is in full force and effect and is a valid and legally binding instrument of Ewing, Vintage and
Developer enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights
generally. Ewing's, Vintage's and Developer's attorneys shall provide an enforceability opinion in
a form in substantial compliance with Exhibit G to be signed concurrently with this Agreement.
(e) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a
violation or breach of, the terms, conditions or provisions of the governing documents of Ewing,
Vintage and Developer or of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which Ewing, Vintage and/or Developer is now a party or by
which it or its property is bound, nor do they constitute a default under any of the foregoing.
(f) Vintage will cause the Elder Apartment Housing and Developer will cause the
Public Improvements to be constricted, operated and maintained in accordance with the terms of
this Agreement, the Urban Renewal Plan, and all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, energy conservation, building code and
public health laws and regulations).
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(o) Developer shall obtain from the City the necessary temporary construction
easement to allow construction within the existing Foster Road right-of-way, including any rights
necessary for the roadway pavement, sidewalk pavement and installation of the associated utilities.
The agreement for said easement rights shall take a form substantially similar to the Temporary
Construction Easement Agreement attached hereto as Exhibit H and incorporated herein by this
reference.
(p) Vintage and Developer shall obtain any and all easements or right-of-way necessary
to construct and operate the Elder Apartment Housing and Public Improvements, respectively,
from any other property owner through private negotiation.
(q) Neither Ewing, Vintage nor Developer, nor any person or entity with an ownership
interest of more than 25% of Ewing, Vintage or Developer have been adjudicated guilty or liable
in any judicial or administrative proceeding of committing a repeated or willful violation of the
Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor
Standards Act or any comparable state statute or local ordinance, which governs the payment of
wages in the last 5 years.
ARTICLE II1. CONSTRUCTION OF IMPROVEMENTS, TAXES AND PAYMENTS
Section 3.1 Construction and Uses.
(a) Vintage and Developer agree that they will cause the Elder Apartment Housing and
Public Improvements, respectively, described in Exhibit D to be constructed on the Development
Property in conformance with the Construction Plans submitted to and approved by the City, which
shall be in accordance with the Conditional Zoning Agreement and the Planned Development
Sensitive Areas Development Plan, attached as Exhibit E for reference. The scope and scale of
the Minimum Improvements to be constructed shall not be significantly less than the scope and
scale as detailed and outlined in the approved Construction Plans.
(b) Vintage and Developer hereby commit to a project that includes a minimum total
of $20,167,000 in development costs, including construction costs, architectural fees, land costs,
and financing costs. Vintage and Developer shall provide to the City, on or before November 1,
2019, an engineer's certificate documenting these expenses, and any other documentation as may
be requested by the City to demonstrate compliance with this investment requirement.
(c) With regard to the obligation to install the Public Improvements set forth in Exhibit
D, those Public Improvements shall be constructed in accordance with City specifications, and the
obligation shall remain on Developer until completion by Developer and until acceptance by
resolution of the City Council, as provided by law. All Public Improvements shall be constructed
and installed by Developer according to the plans and specifications approved by the City Engineer
of the City of Iowa City, Iowa, who shall have the right to make occasional inspection of the work
in progress. Such inspection shall not relieve or release Developer from its responsibility to
construct said Public Improvements pursuant to the approved plans and specifications. Said
inspections shall not create a duty or obligation on the part of the City to insure or certify that said
improvements are constructed in conformance with said plans and specifications. If the City finds
that the Public Improvements have been duly completed in compliance with this Agreement and
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all City ordinances, policies and procedures, Developer provides the necessary security provided
f by Section 6.8, and the City approves the Public Improvements, the City shall accept dedication
of the Public Improvements by resolution. If the City determines that the Public Improvements
are not acceptable,, or there is any other Event of Default under this Agreement, it shall notify the
Developer within ten (10) business days in the form described in Section 3.4 below.
Section 3.2 Construction Plans. Vintage and Developer shall cause Construction Plans to
be provided for the Elder Apartment Housing and Public Improvements, respectively, which shall
be subject to approval by the City as provided in this Section 3.2. The Construction Plans shall be
in conformity with the Urban Renewal Plan, this Agreement, and all applicable State and local
laws and regulations. The City shall approve the Construction Plans in writing if: (a) the
Construction Plans conform to the terms and conditions of this Agreement; (b) the Construction
Plans conform to the terms and conditions of the Urban Renewal Plan; (c) the Construction Plans
conform to all applicable federal, State and local laws, ordinances, rules and regulations and City
permit requirements; (d) the Construction Plans are adequate for purposes of this Agreement to
provide for the construction of the Minimum Improvements; and (e) no Event of Default under the
terms of this Agreement has occurred; provided, however, that:
(a) any such approval of the Construction Plans pursuant to this Section 3.2 shall constitute
approval for the purposes of this Agreement only and shall not be deemed to constitute approval
or waiver by the City with respect to any building, fire, zoning or other ordinances or regulations
of the City, and shall not be deemed to be sufficient plans to serve as the basis for the issuance of
a building permit if the Construction Plans arc not as detailed or complete as the plans otherwise
required for the issuance of a building permit;
(b) approval of the Construction Plans by the City shall not relieve Ewing, Vintage and
Developer of any obligation to comply with the terms and provisions of this Agreement, or the
provision of applicable federal, State and local laws, ordinances and regulations, nor shall approval
of the Construction Plans by the City be deemed to constitute a waiver of any Event of Default;
(c) approval of Construction Plans hereunder is solely for purposes of this Agreement, and
shall not constitute approval for any other City purpose nor subject the City to any liability for the
Minimum Improvements as constructed.
Section 3.3 Time for Commencement and Completion of Minimum Improvements.
Subject to Unavoidable Delays, construction of the Minimum Improvements shall commence
immediately upon execution of this Agreement, and shall be substantially completed on or before
December 31, 2019. Time lost as a result of Unavoidable Delays shall be added to extend this date
by a number of days equal to the number of days lost as a result of Unavoidable Delays.
Section 3.4. Certificate of Completion. Upon written request of Vintage or Developer
after completion of the Elder Apartment Housing and Public Improvements, respectively, the City
will furnish a Certificate of Completion, in substantially the form set forth in Exhibit F attached
hereto. Such Certificate of Completion shall be a conclusive determination of satisfactory
termination of the covenants and conditions of this Agreement with respect to the obligations of
Ewing, Vintage and Developer to construct the Elder Apartment Housing and Public
Improvements, respectively.
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( The Certificate of Completion may be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Development Property at Ewing, Vintage and
Developer's sole expense. If the City shall refuse or fail to provide a Certificate of Completion in
accordance with the provisions of this Section 3.4, the City shall, within twenty (20) days after
written request by Ewing, Vintage or Developer, provide Ewing, Vintage or Developer with a
written statement indicating in adequate detail in what respects Ewing, Vintage or Developer failed
to complete the Minimum Improvements in accordance with the provisions of this Agreement, or
is otherwise in default under the terms of this Agreement, and what measures or acts it will be
necessary, in the opinion of the City, for Ewing, Vintage or Developer to take or perform in order
to obtain such Certificate of Completion.
Section 3.5. Real Property Taxes. Vintage and Developer and their successors shall pay
or cause to be paid, when due, all real property taxes and assessments payable with respect to all
and any parts of the Development Property acquired and owned by them and pursuant to the
provisions of this Agreement. Until Vintage and Developer's obligations have been assumed by
any other person or legal title to the property is vested in another person, all pursuant to the
provisions of this Agreement, Vintage and Developer shall be solely responsible for all
assessments and taxes.
Vintage and Developer, for themselves and on behalf of their successors and assigns, agree
that prior to the Termination Date:
(a) They will not seek administrative review or judicial review of the applicability or
constitutionality of any tax statute relating to the taxation of real property contained on the
Development Property determined by any tax official to be applicable to the Development Property
or Minimum Improvements, or raise the inapplicability or constitutionality of any such tax statute
as a defense in any proceedings, including delinquent tax proceedings; and
(b) They will not seek any tax exemption deferral or abatement either presently or
prospectively authorized under any State, federal or local law with respect to taxation of real
property contained on the Development Property prior to the Termination Date.
Section 3.6 Contractor Labor Law Compliance. Vintage and Developer will require, in their
agreement with their general contractor, that the General Contractor i) comply with all state,
federal and local laws and regulations, including, but not limited to the requirements of Iowa Code
Chapter 91 C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91 A
(Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal
Pair Labor Standards Act, and the Internal Revenue Code; ii) provide to the Developer and the
City, no later than the filing of an application for issuance of a building permit, the names and
addresses of each subcontractor and the dollar value of the work the subcontractor is expected to
perform; iii) demonstrate it has the capacity to meet all performance, and labor and material
payment, bonding requirements relative to the Minimum improvements; iv) provide to the City a
certificate by the General Contractor's insurer that it has in force all insurance required with respect
to construction of the Minimum Improvements; v) demonstrate that it has required all
subcontractors to agree, in writing, that the subcontractor will comply with all state, federal and
local laws and administrative rules and regulations, including, but not limited to the requirements
of Iowa Code Chapter 91 C (Contractor Registration with the Iowa Division of Labor), Iowa Code
Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage),
the Federal Fair Labor Standards Act, and the Internal Revenue Code. Vintage and Developer
shall provide the City with sufficient evidence to establish compliance with this requirement prior
to issuance of any building permit.
ARTICLE 1V. COMPLETION GUARANTY
Section 4.1 Ewing's and Vintage's Guaranty to Complete the Elder Apartment Housing
(a) Subject to the terms of this Agreement, Ewing and Vintage unconditionally and
absolutely guarantee to Developer:
(i) to perform, complete, and pay for the construction of the Elder Apartment
Housing in accordance with the Construction Plans, as such Plans have been submitted to
and approved by the City, to have construction of the Elder Apartment Housing
substantially complete on or before the later to occur of December 31, 2019, or the date
that is six months after Developer's completion of the Public Improvements as required by
Section 4.2(a)(i) below, and to pay all costs of said construction and all costs associated
therewith;
(ii) to perform, complete, and comply with the terms and provisions of this
Agreement applicable to Ewing and Vintage;
(iii) to pay the costs and fees of all contractors, architects and engineers employed
by Ewing and/or Vintage to complete the Elder Apartment Housing.
(iv) to pay all of Developer's reasonable costs and expenses, including, without
limitation, attorney's fees, incurred in the enforcement of this Article IV.
(b) Ewing and Vintage agree to indemnify, protect and hold forever harmless
Developer, its members, managers, officers, agents, successors and assigns, from and against any
liabilities, costs, expenses and losses, including, without limitation court costs and attorneys' fees
and expenses, arising out of or resulting from Ewing's and/or Vintage's failure to construct the
Elder Apartment Housing or otherwise comply with the terms and conditions of this Agreement.
(c) The obligations of Ewing and Vintage hereunder shall be direct and independent of
any obligations of Ewing and Vintage to the City and absolute and unconditional irrespective of
the validity, legality or enforceability of this Agreement, or any other circumstances (except for
those actions of Developer in violation of this Agreement or applicable law) which might
otherwise constitute a legal or equitable discharge of a surety or guarantor (including, without
limitation, the finding or conclusions of any proceeding under the federal Bankruptcy code or of
similar present or future federal or state law), it being agreed that the obligations of Ewing and
Vintage hereunder shall not be discharged except by performance as herein provided.
(d) No failure or delay on the part of Developer in exercising any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
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such right, power or remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy hereunder. No amendment, modification, termination, or waiver of
any provision of this Article IV nor consent to any departure by Ewing or Vintage therefrom, shall
in any event be effective unless the same shall be in writing and signed by Developer, Ewing and
Vintage and then such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No notice or demand on Ewing and Vintage in any case shall
entitle Ewing and Vintage to any other or further notice or demand in similar or other
circumstances.
Section 4.2 Developer's Guaranty to Provide Access to Lot 3, Forest Hill Estates
(a) Subject to the terms of this Agreement, Developer unconditionally and absolutely
guarantees to Ewing and Vintage:
(i) to perform, complete, and pay for the construction of the Public Improvements
to Lot 3, Forest Hill Estates in accordance with the Plans, as such Plans have been
submitted to and approved by the City to have the Public Improvements substantially
complete on or before December 31, 2019, and to pay all costs of said construction and all
costs associated therewith;
(ii) to perforin, complete, and comply with the terms and provisions of this
Agreement applicable to Developer;
(iii) to pay the costs and fees of all contractors, architects and engineers employed
by Developer to complete the Public Improvements.
(iv) to pay all of Ewing's and Vintage's reasonable costs and expenses, including,
without limitation, attorney's fees, incurred in the enforcement of this Article 1V.
(b) Developer agrees to indemnify, protect and hold forever harmless Ewing and
Vintage, its members, managers, shareholders, officers, agents, successors and assigns, from and
against any liabilities. costs, expenses and losses, including, without limitation, court costs and
attorneys' fees and expenses arising out of or resulting from Developer's failure to construct the
Public Improvements to Lot 3, Forest Hill Estates or otherwise comply with the terms and
conditions of this Agreement.
(c) The obligations of Developer hereunder shall be direct and independent of any
obligations of Developer to the City and absolute and unconditional irrespective of the validity,
legality or enforceability of this Agreement, or any other circumstances (except for those actions
of Ewing or Vintage in violation of this Agreement or applicable law) which might otherwise
constitute a legal or equitable discharge of a surety or guarantor (including, without limitation, the
finding or conclusions of any proceeding under the federal Bankruptcy code or of similar present
or future federal or state law), it being agreed that the obligations of Developer hereunder shall not
be discharged except by performance as herein provided.
(d) No failure or delay on the part of Ewing or Vintage in exercising any right, power
or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of
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any such right, power or remedy preclude any other or further exercise thereof or the exercise of
any other right, power or remedy hereunder. No amendment, modification, termination, or waiver
of any provision of this Article IV nor consent to any departure by Developer therefrom, shall in
any event be effective unless the same shall be in writing and signed by Ewing, Vintage and
Developer, and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given. No notice or demand on Developer in any case shall entitle
Developer to any other or further notice or demand in similar or other circumstances.
Section 4.3 Continuing Guaranties Ewing, Vintage and Developer hereby represent and
agree that their respective obligation under this Article IV are continuing guaranties and (a) shall
remain in full force and effect until the Minimum Improvements have been constructed and a
Certificate of Completion has been received from the City as contemplated hereunder, (b) shall be
governed by, and construed in accordance with, the laws of the State of Iowa, (c) shall be binding
upon each party, its successors, and assigns, and (d) shall inure to the benefit of and be enforceable
by each party its respective successors, transferees and assigns.
Section 4.4 Jury Trial Waiver. The Developer, Ewing and Vintage hereby waive any right
to jury tial of any claim, cross --claim or counter --claim relating to or arising out of or in
connection with this Article IV.
Section 4.5 Jurisdiction. For purposes of any actions relating to this Article IV, Ewing,
Vintage and Developer consent to the personal jurisdiction of the state and federal courts of the
State of Iowa.
ARTICLE V. INSURANCE
Section 5.1. Insurance Requirements.
(a) Vintage and/or Developer will provide written proof of and maintain or cause to be
maintained at all times during Vintage and Developer's ownership and during the process of
constructing the Minimum Improvements (and, from time to time at the request of the City, furnish
the City with proof of coverage and/or payment of premiums on):
i. Builder's risk insurance, written on the so-called "Builder's Risk --
Completed Value Basis", in an amount equal to one hundred percent (100%) of the insurable value
of the Public Improvements and Elder Apartment Housing, respectively, at the date of completion,
and with coverage available in non -reporting form on the so-called "all risk" form of policy;
ii. Comprehensive general liability insurance (including operations,
contingent liability, operations of subcontractors, completed operations and contractual liability
insurance) together with an Owner's Contractor's Policy with limits against bodily injury and
property damage of not less than $1,000,000 for each occurrence (to accomplish the above -
required limits, an umbrella excess liability policy may be used); and
iii. Workers' compensation insurance with at least statutory coverage.
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(b) Upon completion of construction of the Minimum Improvements and at all times
IT prior to the Termination Date, Vintage and Developer shall maintain, or cause to be maintained,
at its cost and expense (and from time to time at the request of the City shall furnish proof of the
payment of premiums on), insurance as follows:
i. Insurance against loss and/or damage to the Elder Apartment Housing and
Public Improvements, respectively, under a policy or policies covering such risks as are ordinarily
insured through property policies by similar businesses, including (without limitation to the
generality of the foregoing) fire, extended coverage, vandalism and malicious mischief, explosion,
water damage, demolition cost, debris removal, and collapse in an amount not less than the full
insurable replacement value of the Minimum Improvements, but any such policy may have a
deductible amount of not more than $100,000. No policy of insurance shall be so written that the
proceeds thereof will produce less than the minimum coverage required by the preceding sentence,
by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by
the City. The term "full insurable replacement value" shall mean the actual replacement cost of
the Minimum Improvements (excluding foundation and excavation costs and costs of underground
flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time
to time at the request of the City, but not more frequently than once every three years, by an
insurance consultant or insurer selected and paid for by the Developer and approved by the City.
ii. Comprehensive general public liability insurance, including personal injury
liability for injuries to persons and/or property, including any injuries resulting from the operation
of automobiles or other motorized vehicles on or about the Development Property, in the minimum
amount for each occurrence and for each year of $1,000,000 with a deductible of $500,000.
iii. Such other insurance, including workers' compensation insurance respecting
all employees of Vintage and Developer, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure; provided that
Vintage and Developer may be self-insured with respect to all or any part of its liability for
worker's compensation.
(c) All insurance required by this Article V shall be taken out and maintained in
responsible insurance companies which are authorized under the laws of the Slate to assume the
risks covered thereby. Vintage and Developer will deposit annually with the City copies of policies
evidencing all such insurance, or a certificate or certificates or binders of the respective insurers
stating that such insurance is in force and effect. Unless otherwise provided in this Article V, each
policy shall contain a provision that the insurer shall not cancel or modify it without giving written
notice to Vintage and Developer and the City at least thirty (30) days before the cancellation or
modification becomes effective. Not less than fifteen (15) days prior to the expiration of any
policy, Vintage and Developer shall furnish the City evidence satisfactory to the City that the
policy has been renewed or replaced by another policy conforming to the provisions of this Article
V, or that there is no necessity therefor under the terms hereof. In lieu of separate policies, Vintage
and Developer may maintain a single policy, blanket or umbrella policies, or a combination
thereof, which provide the total coverage required herein, in which event Vintage and Developer
shall deposit with the City a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
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(d) Vintage and Developer agree to notify the City within two (2) days in the case of
( damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any
portion thereof resulting from fire or other casualty. Net Proceeds of any such insurance shall be
paid directly to Vintage or Developer, and Vintage and Developer will forthwith repair, reconstruct
and restore the Minimum Improvements to substantially the same or an improved condition or
value as they existed prior to the event causing such damage and, to the extent necessary to
accomplish such repair, reconstruction and restoration, Vintage and Developer will apply the Net
Proceeds of any insurance relating to such damage received by the Vintage or Developer to the
payment or reimbursement of the costs thereof.
(e) Vintage and Developer shall complete the repair, reconstruction and restoration of
the Elder Apartment Housing and Public Improvements, respectively, whether or not the Net
Proceeds of insurance received by Vintage or Developer for such purposes are sufficient.
(1) Notwithstanding anything contrary herein, Developer shall only be required to insure
the Public Improvements until acceptance of the Public Improvements by the City and issuance of
the maintenance bond.
ARTICLE VI. COVENANTS OF VINTAGE AND DEVELOPER
Section 6.1. Maintenance of Properties. Ewing and Developer will maintain, preserve
and keep its properties (whether owned in fee or a leasehold interest), including but not limited to
the Elder Apartment Housing and Public Improvements, respectively, in good repair and working
order, ordinary wear and tear excepted, and from time to time will make all necessary repairs,
replacements, renewals and additions.
Section 6.2. Maintenance of Records. Vintage and Developer will keep at all times proper
books of record and account in which full, true and correct entries will be made of all dealings and
transactions of or in relation to the business and affairs of Vintage and Developer relating to this
Project in accordance with generally accepted accounting principles, consistently applied
throughout the period involved, and Vintage and Developer will provide reasonable protection
against loss or damage to such books of record and account.
Section 6.3. Compliance with Laws. Vintage and Developer will comply with all state,
federal and local laws, rules and regulations relating to the Elder Apartment Housing and Public
Improvements, respectively.
Section 6.4. Non-discrimination. In the construction and operation of the Elder Apartment
Housing and Public Improvements, respectively, Vintage and Developer shall not discriminate
against any employee or applicant for employment, home buyer or tenant because of race, creed,
color, sex, national origin, gender identity, marital status, sexual orientation, religion, age,
disability, familial status, presence or absence of dependents or public assistance source of income.
Vintage and Developer shall ensure that applicants for employment, employees, and tenants are
considered and treated without regard to their age, color, creed, disability, gender identity, marital
status, national origin, race, religion, sex, sexual orientation, presence or absence of dependents or
1 public assistance source of income origin.
4
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Section 6.5. Available Information. Upon request, Vintage and Developer shall promptly
i provide the City with copies of information requested by City that are related to this Agreement
so that City can determine compliance with the Agreement.
Section 6.6. LMI Requirements. The City, Ewing; Vintage and Developer acknowledge
the statutory requirements of Chapter 403, Code of Iowa specifically with respect to the Low and
Moderate Income (LMI) assistance. The current applicable percentage for Johnson County is 45%.
The City will set funds aside from the Tax Increment received by the City under the Ordinance to
comply with Iowa Code Section 403.22 before any Economic Development Grants are made to
Developer. The statutory requirements with respect to LMI assistance may be met by the
construction of LMI affordable Dwelling Units as part of the Project, which would decrease the
required set aside funds.
Section 6.7. Certification of Qualified Costs and Expenses, and Annual Certification.
Developer shall certify to the City the amount of all Qualified Costs and Expenses submitted for
reimbursement as Economic Development Grants and that such amounts are true and correct. Such
certification shall take the form shown in Exhibit K attached hereto and shall be provided no later
than November 1 of each year in which Developer incurs Qualified Costs and Expenses.
To assist the City in monitoring and performance of Developer hereunder, a duly -authorized
officer of Developer shall annually certify to the City: (a) proof that all ad valorem taxes on the
Development Property and Minimum Improvements have been paid for the prior fiscal year; (b)
certification that such officer has re-examined the terms and provisions of this Agreement and that
at the date of such certification, and during the preceding twelve (12) months, Developer is not, or
was not, in default in the fulfillment of any of the terms and conditions of this Agreement and that
no Event of Default (or event which, with the lapse of time or the giving of notice, or both, would
become an Event of Default) is occurring or has occurred as of the date of such certification or
during such period, or if the signer is aware of any such default, event or Event of Default, said
officer shall disclose in such statement the nature thereof, its period of existence and what action,
if any, has been taken or is proposed to be taken with respect thereto. Such statement, proof and
certificate shall be provided not later than November 1 of each year, commencing November 1,
2019 and ending on November 1, 2030, both dates inclusive. Such Annual Certification shall take
the form shown in Exhibit J attached hereto.
Developer shall provide additional supporting information for these certifications upon
request of the City.
Section 6.8. Bonding Requirements. Developer shall obtain, or require each of its general
contractors to obtain, one or more bonds that guarantee the faithful performance of this Agreement
for, in the aggregate, the anticipated full value of the completed Public Improvements and that
further guarantee the prompt payment of all materials and labor. The performance bond(s) for the
Public Improvements shall remain in effect until construction of such Public Improvements are
complete, at which time a five-year maintenance bond shall be substituted for each performance
bond. The bonds shall clearly specify Developer and City as joint obligees. Developer shall also
comply with all City requirements for the construction of the Public Improvements.
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Section 6.9. No Abatement. Homeowners who purchase or rent Dwelling Units within
the Development Property are not eligible for tax abatement under any state, federal or local law,
and Ewing shall inform prospective buyers of this information in writing prior to the sale to a buyer
of any lots or Dwelling Units on the Development Property, and secure a receipt from all buyers
that they received such information prior to the sale in the form of Exhibit L.
Section 6.10. Minimum Assessment Agreement.
Ewing, Vintage and Developer acknowledge and agree that the grant to the Developer
provided for in Section 8.1 below contemplates that the property tax revenues generated from Lot
3, Forest Hill Estates, will be at least $14,000,000 once the Elder Apartment Housing described in
Exhibit D is complete. Vintage hereby agrees to enter into a Minimum Assessment Agreement in
a form in substantial compliance with Exhibit N attached hereto, in order to establish a Minimum
Actual Value for the land and Elder Apartment Housing.
Vintage acknowledges and agrees that it, or the owners of condominium units or
residential cooperative shares sold, will pay when due all taxes and assessments, general or special,
and all other charges whatsoever levied upon or assessed or placed against Lot 3 and Minimum
Improvements thereon. Vintage further agrees that, prior to the payment of the final economic
development grant:
(a) neither it nor its successors in interest to all or any portion of Lot 3 will seek
administrative or judicial review of the applicability of any tax statute determined by any official
to be applicable to the property, Vintage, or its successors in interest to all or any portion of Lot 3,
or raise the inapplicability of any such tax statute as a defense in any proceedings, including
delinquent tax proceedings;
(b) neither it nor its successors in interest to all or any portion of Lot 3 will seek
administrative or judicial review of the constitutionality of any tax statute determined by any
official to be applicable to the property, Vintage, or its successors in interest to all or any portion
of Lot 3, or raise the unconstitutionality of any such tax statute as a defense in any proceedings,
including delinquent tax proceedings; and
(c) it will not cause a reduction in the taxable valuation upon which real property taxes
are paid, below the amount of $14,000,000 after taking into consideration any factors such as "roll-
backs" which would reduce the taxable value of the Property as of January 1, 2020, ("Assessor's
Minimum Actual Value") through:
(i) willful destruction of the property, or any part thereof,
(ii) a request to the City Assessor of Iowa City, Iowa to reduce the Minimum
Actual Value of the property below the amount noted above;
(iii) an appeal to the Board of Review of the City of Iowa City or to the Board
of Review of Johnson County to reduce the Minimum Actual Value of the property below
the amount noted above:
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(iv) a petition to the Board of Review of the State of Iowa or to the Director of
Revenue and Finance of the State of Iowa to reduce the Minimum Actual Value of the
property below the amount noted above;
(v) an action in any District Court of the State of Iowa seeking a reduction in
the Minimum Actual Value of the property below the amount noted above;
(vi) an application to the Director of Revenue and Finance of the State of Iowa
requesting an abatement of real property taxes pursuant to any present or future statute or
ordinance; or
(vii) any other proceedings, whether administrative, legal or equitable, with any
administrative body within the City of Iowa City, Johnson County, or the State of Iowa or
within any court of the State of Iowa or the federal government.
Vintage and it successors in interest shall not, during the term of this Agreement, cause or
voluntarily permit the property to become other than taxable property (except as permitted herein);
to be taxable at an amount less than the Minimum Actual Values noted above; to be owned by a
utility or any other entity of a type where the assessed value of taxable property of such entity is
not treated as located within the Urban Renewal Area in its entirety; to be owned by any entity
having tax exempt status; or apply for a deferral of property tax on the property pursuant to any
present or future statute or ordinance. Nothing contained herein is intended to, and shall not be
construed to, in any way limit Vintage's right to sell condominium units or residential cooperative
shares in the Elder Apartment Housing Project at any time subject to the terms of this Agreement
and the applicable Minimum Assessment Agreement.
Vintage agrees that it and its successors in interest, including owners of condominium
units or cooperative housing shares sold, is bound by the applicable Minimum Assessment
Agreements attached as Exhibits N, fixing the Minimum Actual Value of the property as approved
by the Assessor and the City as set forth herein. Vintage shall provide to the City a title opinion
showing all lienholders, and all such lienholders shall consent to the Minimum Assessment
Agreement.
Vintage contemplates that a portion of the Project will be residential condominium units
which will be subject to the property tax "roll -back" referred to previously. Fwing agrees that at
the time of the execution of the declaration required by Chapter 499B Horizontal Property
(Condominiums) of the Code of Iowa, an attachment to the declaration will be executed by
Vintage, the City and the City Assessor allocating a portion of the Minimum Actual Value to each
unit. Vintage agrees that the difference between the Minimum Actual Value and the amount
allocated to the residential condominium units for the Project will be allocated to the remainder of
the Project.
The Minimum Actual Values herein established shall be of no further force and effect and
the Minimum Assessment Agreements shall terminate when the final economic development grant
is paid in accordance with this Agreement.
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The Minimum Assessment Agreements shall be certified by the Assessor for the City as
provided in Iowa Code Section 403.6(19) and shall be filed for record in the office of the Johnson
County Recorder, and such filing shall constitute notice to any subsequent encumbrancer or
purchaser of the property (or part thereof), whether voluntary or involuntary, and such Minimum
Assessment Agreement shall be binding and enforceable in its entirety against any such subsequent
purchaser or encumbrancer, including the holder of any First Mortgage.
ARTICLE VII. ASSIGNMENT AND TRANSFER
Section 7.1 Representation as to Development. Vintage and Developer represent and agree
that their undertakings pursuant to this Agreement are and will be used for the purpose of
development of the Property and not for speculation in land holding. Vintage and Developer
further recognize:
(a) the importance of the development of the Property to the general welfare of the
community,
(b) the substantial financing and other public aids that have been made available by
law and by the City for the purpose of making such development possible; and
(c) the fact that any act or transaction involving or resulting in a significant change in
the ownership or with respect to the identity of the parties in control of the Vintage or Developer,
or the degree thereof, is, for practical purposes, a transfer or disposition of the Property, and that
the qualifications and identity of Vintage and Developer are of particular concern to the
community and the City. Vintage and Developer recognize that it is because of such
qualifications and identity that the City is entering into this Agreement.
Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement. For
the foregoing reasons, as security for the obligations of the Developer under this Agreement,
Vintage and Developer represent and agree for themselves, and their successors and assigns, that
prior to the Termination Date, Vintage and Developer will not dispose of all or substantially all of
their assets or transfer, convey or assign its interest in the Development Property (except for right
of way dedicated to the City which is expressly permitted), Public Improvements (except for the
dedication of the Public Improvements to the City which is expressly permitted), Minimum
Improvements (except the sale of condominium units or an interest in a multiple housing
cooperative formed pursuant to Iowa Code Chapter 499A to persons who will occupy a Dwelling
Unit as their residence), or this Agreement to any other party unless (i) the transferee partnership,
corporation or individual assumes in writing all of the obligations of Ewing, Vintage or Developer
(as the case may be) under this Agreement with respect to the portion of the Development Property
being transferred and (ii) the City consents thereto in writing in advance thereof, which consent
shall not be unreasonably withheld. Notwithstanding the foregoing, however, or any other
provisions of this Agreement, Vintage and Developer may pledge any and/or all of its assets as
security for any financing of the Minimum Improvements, and the City agrees that Vintage and
Developer may assign its interest under this Agreement as collateral for such purpose.
The City shall be entitled to require, except for such transfers, assignments, leases,
conveyances or sales allowed in this Section 7.2, as conditions to any such approval that:
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(a) Any proposed transferee shall have the qualifications and financial responsibility,
as determined by the City, necessary and adequate to fulfill the obligations undertaken in this
Agreement by Ewing, Vintage and Developer (or, in the event the transfer is of or relates to part
of the Property, such obligations that relate to such part);
(b) Any proposed transferee shall expressly assume, by instrument in writing
satisfactory to the City and in form recordable among the land records, for itself, its successors
and assigns, and expressly for the benefit of the City, all of the obligations of Ewing, Vintage and
Developer under this Agreement and agree to be subject to all the conditions and restrictions to
which the Developer is subject (or, in the event the transfer is of or relates to part of the Property,
such obligations, conditions, and restrictions that relate to such part), Provided that in the event
any transferee or successor in interest to the Property, or any part thereof, does not, for whatever
reason, expressly assume or agree to such obligations, conditions and restrictions, such lack of
assumption or agreement shall not relieve or except such transferee or successor of such
obligations, conditions, or restrictions; nor shall it deprive or limit the City of any rights, remedies
or controls with respect to the Property or the construction of the Minimum Improvements unless
and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by
the City. It being the intent that, to the fullest extent permitted by law and equity and excepting
only in the manner and to the extent specifically provided otherwise in this Agreement, no transfer
of or change of ownership in the Property, any part thereof, or any interest therein, however
consummated or occurring, and whether voluntary or involuntary, shall operate, legally or
practically, to deprive or limit the City of or with respect to any rights, remedies or controls
provided in or resulting from this Agreement that the City would have had, had there been no such
transfer or change;
(c) There shall be submitted to the City for review all instruments and other legal
documents involved in effecting transfer; and, if approved by the City, its approval shall be
indicated to Ewing, Vintage and Developer in writing;
(d) The consideration payable for the transfer by the transferee or on its behalf shall
not exceed an amount representing the actual cost (including carrying charges) of the Property to
Ewing, Vintage and Developer (or allocable to the part thereof or interest therein transferred) and
the Minimum Improvements, if any, theretofore made thereon by it; it being the intent of this
provision to preclude assignment of this Agreement or transfer of the Property (or any parts
thereof) for profit prior to the completion of the Minimum Improvements: and
(e) Ewing, Vintage and Developer and their transferee or successor shall comply with
such other conditions as the City may find desirable in order to achieve and safeguard the purposes
of the Urban Renewal Act and the Urban Renewal Plan.
Provided, that in the absence of a specific written agreement by the City to the contrary, no
such transfer or approval by the City thereof shall be deemed to relieve Ewing, Vintage and
Developer, or any other party bound in any way by this Agreement or otherwise, of its respective
obligations with respect to the construction of the Minimum Improvements, or from any of their
( other obligations under this Agreement.
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Section 7.3. Information as to Parties in Control. To assist in the effectuation of the
( purposes of this Article VII and the statutory objectives generally, Ewing, Vintage and Developer
agree that during the period between execution of this Agreement and completion of the Minimum
Improvements as certified by the City, they will promptly notify the City of any and all changes
whatsoever with respect to the identity of the parties in control of Ewing, Vintage and Developer.
Section 7.4. Prohibition Against Use as Non -Taxable or Centrally -Assessed Property
During the term of this Agreement, Vintage and Developer agree that no portion of the
Development Property or Minimum Improvements shall be transferred or sold to a non-profit
entity or used for a purpose that would exempt said portion of the Development Property from
property tax liability. Notwithstanding the prior sentence, Vintage and Developer may convey
portions of the Development Property to the City to be used by the City for public infrastructure,
parks, trails or other public purposes. During the term of this Agreement, Vintage and Developer
agree not to allow any portion of the Development Property or Minimum Improvements to be used
as centrally -assessed property (including but not limited to, Iowa Code § 428.24 to 428.29 (Public
Utility Plants and Related Personal Property); Chapter 433 (Telegraph and Telephone Company
Property); Chapter 434 (Railway Property); Chapter 437 (Electric Transmission Lines); Chapter
437A (Property Used in the Production, Generation, Transmission or Delivery of Electricity or
Natural Gas); and Chapter 438 (Pipeline Property)).
ARTICLE VIII. CITY CONTRIBUTIONS TO PROJECT
Section 8.1. Economic Development Grants.
(a) Calculation of Grants. The City agrees to make annual payments to the Developer
to reimburse it for the Qualified Cost and Expenses related to that portion of the Public
Improvements from Dubuque Street east to Lot 4, Forest Hill Estates, and for 75% of those
Qualified Costs and Expenses related to that portion of the Public Improvements adjacent to Lot 4
east to Prairie du Chien, subject to the Developer and Vintage having timely received a Certificate
of Completion for construction of the Minimum Improvements in accordance with this Agreement
and being and remaining in compliance with the terms of this Agreement, as follows:
i. Commencing with the first fiscal year in which Tax Increment is received from the
County under the Ordinance, and continuing until the expiration of the allowable time
frame for the collection of Tax Increment under the Ordinance, the City agrees to make
annual Economic Development Grants equal to 55 % of the "fax Increments, if any,
received by the City under the Ordinance to reimburse Developer for Qualified Costs
and Expenses (without regard to any averaging that may otherwise be utilized under
Section 403.19 and excluding any interest that may accrue thereon prior to payment to
the Developer during the preceding twelve-month period), but subject to limitation and
adjustment as provided in this Article.
Such payments shall be referred to collectively as the "Economic Development Grants." For
purposes of calculating that portion of the taxes allocated to and, when collected, paid into the
Foster Road TIF Fund, the City first certified debt for the original Urban Renewal Area on
December 1, 2020, setting the base value on the Area at the assessed value as of January 1, 2019,
which shall be a minimum of $2,111,720. The taxes levied each year upon the assessed value of
the taxable property in this Urban Renewal Area in excess of this base value shall be allocated to
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and when collected be paid into the Foster Road TIF Fund, or other fund established by the County
Auditor for payment of loans, advances, indebtedness or bonds payable from the division of
property tax revenue pursuant to the Ordinance.
(b) Maximum Amount of Economic Development Grants. The aggregate amount of
the Economic Development Grants that may be paid to the Developer rider this Agreement shall
be equal to the sum of the total amount of the applicable percentage ('allowing for the LMI set-
aside as provided in Section 8.1 (a) above) of all Tax Increments collected under the Ordinance,
but in no case shall exceed a total for all grants of the lesser of: (i) the actual cost of that portion
of the Public Improvements as explained in Section 8.l(a) and documented as indicated in Section
8.1(e)or(ii)$3,367,000. It is further agreed and understood that the aforementioned $3,367,000
shall constitute the maximum amount of reimbursement for the Public Improvements.
(c) Limitations. Developer acknowledges that each Economic Development Grant
payment to be paid to it according to this Article VIII is wholly contingent upon and shall be
limited to reimbursement of certain actual costs incurred with respect to construction of the Public
Improvements as set forth in Section 8.1(a), and payment shall come solely and only from
incremental taxes received by the City under Iowa Code Section 403.19 and the Ordinance. The
City makes no assurance that the Developer will receive Economic Development Grants which
cover the cost of the Public Improvements or which reach the stated maximum. Developer
acknowledges that the increment generated from the Minimum Improvements alone is not
anticipated to result in payment of the maximum an7ount of Economic Development Grants
described in Section 8.1(b).
(d) City Certification. Timing. The time period during which Tax Increment can be
collected to pay annual Economic Development Grants shall end no later than ten (10) fiscal years
begirming with the second fiscal year after the year in which the City first certifies to the County
Auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment
from the division of the revenue in connection with the Project. If Ewing, Vintage and Developer
satisfy all of the terms of this Agreement, the City shall certify to the appropriate County office
prior to December 1, 2020 its request for the available Tax Increments resulting from the
assessments imposed by the County as of January 1 of that year, to be collected by the County and
paid to the City as taxes are paid during the following fiscal year and which shall thereafter be
disbursed to Developer on ,Tune 1 of that fiscal year. As an example, if the Minimum
Improvements are built and fully assessed on January 1, 2020, and if Developer files the
Certification required by Section 6.7 by November 1, 2020, the City would then review the
Certification, and, if approved, and all other terms of this Agreement are satisfied, would certify
by December 1, 2020 for the Tax Increment for collection by the County and payment to the City
in fiscal year 2021-2022, allowing for an initial grant to be paid to Developer on June 1, 2022, all
subject to the terns of this Article and this Agreement.
(e) Certification of Qualified Costs and Expenses. The obligation of the City to make
any Economic Development Grants shall be subject to and conditioned upon, among other things,
the timely filing by Developer of the Certification required under Section 6.7 hereof and the City's
approval thereof. Developer must submit accurate and sufficient documentation of the Qualified
Costs and Expenses set forth in Section 8.1(a) to the City as part of its Certification. To receive
reimbursement, Developer must attach to such Certification receipts and invoices for all Public
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Improvement costs for the fiscal year for which Developer is requesting an Economic
Development Grant that substantiates the amount of Qualified Costs and Expenses being reported.
Section 8.2. Source of Grant Funds Limited.
(a) The Economic Development Grants shall be payable from and secured solely and
only by amounts deposited and held in the Foster Road Urban Renewal Area Tax Increment
Revenue Fund of the City. The City hereby covenants and agrees to maintain the Ordinance in
force during the tern hereof and to apply the incremental taxes collected thereunder to pay the
Economic Development Grants, as and to the extent set forth in this Article. The Economic
Development Grants shall not be payable in any manner by other tax increment revenues or by
general taxation or from any other City funds.
(b) Notwithstanding the provisions of Section 8.1 hereof, the City shall have no
obligation to make an Economic Development Grant to the Developer if at any time during the
term hereof the City receives a finding from a court of competent jurisdiction to the effect that the
use of Tax Increments to fund an Economic Development Grant to the Developer, as contemplated
under said Section 8.1, is not authorized or otherwise an appropriate urban renewal activity
permitted to be undertaken by the City under the Urban Renewal Act or other applicable provisions
of the Code, as then constituted. Upon receipt of such an opinion, the City shall promptly forward
a notice of the same to Ewing, Vintage and Developer. In the event litigation is commenced to
challenge the use of Tax Increments to fund an Economic Development Grant to the Developer,
the City shall proceed diligently, at its sole cost and expense, to defend such litigation, as it
determines is reasonable in the exercise of the City Attorney's professional judgment. If the
circumstances or legal constraints continue for a period during which two (2) Economic
Development Grants would otherwise have been paid to the Developer under the terms of Section
8. 1, the City may terminate this Agreement, without penalty or other liability to the Developer, by
written notice to Developer.
(c) The City makes no representation with respect to the amounts that may finally be
paid to the Developer as the Economic Development Grants, and under no circumstances shall the
City in any manner be liable to the Ewing, Vintage or Developer so long as the City timely applies
the Tax Increments actually collected and held in the Foster Road Urban Renewal Tax Increment
Fund (regardless of the amounts thereof) to the payment of the Economic Development Grants to
the Developer, as and to the extent described in this Article.
Section 8.3. Use of Other Tax Increments. Subject to this Article VIII, the City shall be
free to use any and all available Tax Increments in excess of the stated maximum or resulting from
the suspension or termination of the Economic Development Grants under Section 8.1 hereof, for
any purpose for which the Tax hrcrements may lawfully be used pursuant to the provisions of the
Urban Renewal Act, and the City shall have no obligations to Ewing, Vintage or Developer with
respect to the use thereof.
Section 8.4. Limitations. The Economic Development Grants are only for the Minimum
Improvements described in this Agreement and not any future expansions which, to be eligible for
( Economic Development Grants, would be the subject of an amendment or new agreement, at the
sole discretion of the City Council.
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Section 8.5 Conditions Precedent. Notwithstanding the provisions of Section 8.1 above,
the obligation of the City to make an Economic Development Grant in any year shall be subject to
and conditioned upon the following as the time of payment:
(a) compliance with the terms of this Agreement and payment of property taxes;
(b) Execution of the Minimum Assessment Agreement, pursuant Section 6.10 of this
Agreement, in a form shown in Exhibit N, attached hereto;
(b) timely filing by Developer of the Certifications required under Sections 6.7 and 8.1
hereof and the City's approval thereof, and
(c) Developer's execution of the Wage Theft Affidavit attached hereto as Exhibit M.
In the event that an Event of Default occurs, the City shall have no obligation thereafter to
make any payments to Developer in respect of the Economic Development Grants and the
provisions of this Article shall terminate and be of no further force or effect.
ARTICLE IX. RESERVED
ARTICLE X. INDEMNIFICATION
Section 10.1. Release and Indemnification Covenants.
(a) Ewing and Vintage release the City and the governing body members, officers,
agents, servants and employees thereof (hereinafter, for purposes of this Article X, the
"Indemni tied Parties") from, covenants and agrees that the Indemnified Parties shall not be liable
for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss
or damage to property or any injury to or death of any person occurring at or about, or resulting
from any defect in, the Elder Apartment Housing.
(b) Developer release the City and the governing body members, officers, agents,
servants and employees thereof (hereinafter, for purposes of this Article X, the "Indemnified
Parties") from, covenants and agrees that the Indemnified Parties shall not be liable for, and agrees
to indemnify, defend and hold harmless the Indemnified Parties against, any loss or damage to
property or any injury to or death of any person occurring at or about, or resulting from any defect
in, the Public Improvements (but only until the City accepts said Public Improvements and the
maintenance bond has been issued on said Public Improvements).
(c) Except for any willful misrepresentation or any willful or wanton misconduct or
any unlawful act of the Indemnified Parties, Ewing, Vintage and Developer agree to protect and
defend the Indemnified Parties, now or forever, and further agrees to hold the Indemnified Parties
harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or
entity whatsoever arising or purportedly arising from (i) any violation of any agreement or
condition of this Agreement (except with respect to any suit, action, demand or other proceeding
brought by Ewing, Vintage or Developer against the City to enforce its rights under this
25
Agreement), (ii) the acquisition and condition of the Development Property and the construction,
F installation, ownership, and operation of the Minimum Improvements or Public Improvements
(but only until the City accepts said Public Improvements and the maintenance bond has been
issued on said Public Improvements) or (iii) any hazardous substance or environmental
contamination located in or on the Development Property.
(d) The Indemnified Parties shall not be liable for any damage or injury to the persons
or property of Ewing, Vintage and Developer or their officers, agents, servants or employees or
any other person who may be about the Minimum Improvements or Public Improvements due to
any act of negligence of any person, other than any act of negligence on the part of any such
Indemnified Party or its officers, agents, servants or employees.
(e) The provisions of this Article X shall survive the termination of this Agreement.
ARTICLE XI. DEFAULT AND REMEDIES
Section l 1.1. Events of Default Defined. The following shall be "Events of
Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in
this Agreement, any one or more of the following events:
(a) Failure by Vintage or Developer to cause the construction of the Minimum
Improvements to be commenced and completed pursuant to the terms, conditions and limitations
of this Agreement;
(b) Transfer of any interest in this Agreement or the Development Property or the
Minimum Improvements in violation of the provisions of this Agreement;
(c) Failure by Ewing, Vintage and Developer to substantially observe or perform any
covenant, condition, obligation or agreement on its part to be observed or performed under this
Agreement;
(d) Prior to the issuance of Certificates of Completion for the Minimum Improvements,
the holder of any Mortgage on the Development Property, or any improvements thereon, or any
portion thereof, commences foreclosure proceedings as a result of any default under the applicable
Mortgage documents;
(e) Developer shall:
i. file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or
or
ii. make an assignment for the benefit of its creditors; or
iii, admit in writing its inability to pay its debts generally as they become due;
26
iv. be adjudicated bankrupt or insolvent; or if a petition or answer proposing
the adjudication of Developer as bankrupt or its reorganization under any present or future federal
bankruptcy act or any similar federal or state law shall be filed in any court and such petition or
answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a
receiver, trustee or liquidator of the Developer or the Minimum Improvements or Public
Improvements. or part thereof, shall be appointed in any proceedings brought against Developer,
and shall not be discharged within ninety (90) days after such appointment, or if Developer shall
consent to or acquiesce in such appointment; or
(f) Any representation or warranty made by Ewing, Vintage or Developer in this
Agreement, or made by Ewing, Vintage or Developer in any written statement or certification
furnished by Ewing, Vintage or Developer pursuant to this Agreement, shall prove to have been
incorrect, incomplete or misleading in any material respect on or as of the date of the issuance or
making thereof.
Section 11.2. Remedies on Default. Whenever any Event of Default referred to in Section
11.1 of this Agreement occurs and is continuing, the City, as specified below, may take any one
or more of the following actions after (except in the case of an Event of Default under subsections
11.1(d) or 11. l (e) of said Section 11.1) the giving of thirty (30) days' written notice by the City to
Ewing and Developer and the holder of the First Mortgage (but only to the extent the City has been
informed in writing of the existence of a First Mortgage and been provided with the address of the
holder thereof) of the Event of Default, but only if the Event of Default has not been cured within
said thirty (30) days, or if the Event of Default cannot reasonably be cured within thirty (3 0) days
and Ewing and Developer does not provide assurances reasonably satisfactory to the City that the
Event of Default will be cured as soon as reasonably possible:
(a) The City may suspend its performance under this Agreement until it receives
assurances from Ewing, Vintage and Developer, deemed adequate by the City, that they will cure
their default and continue performance under this Agreement;
(b) The City may terminate this Agreement;
(c) The City may withhold the Certificate of Completion;
(d) The City shall be entitled to rescind the Economic Development Grants and recover
from Developer all previously paid Economic Development Grants, with interest at the highest
amount allowed by law, and the City may take any action, including any legal action it deems
necessary, to recover such amounts from Developer; or
(e) The City may take any action, including legal, equitable or administrative action,
which may appear necessary or desirable to enforce performance and observance of any
obligation, agreement, or covenant of Ewing, Vintage or Developer, as the case may be, under
this Agreement.
(f) The City may draw upon any maintenance or performance bond provided to the
City pursuant to any of the terms of this Agreement according to its terms.
27
Section 11.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
it City is intended to be exclusive of any other available remedy or remedies, but each and every
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient.
Section 11.4. No Implied Waiver. hr the event any agreement contained in this Agreement
should be breached by any party and thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
ARTICLE XII. MISCELLANEOUS
Section 12.1. Conflict of Interest. Ewing, Vintage and Developer agree that, to the best of
their knowledge and belief, no member, officer or employee of the City, or its designees or agents,
nor any consultant or member of the governing body of the City, and no other public official of
the City who exercises or has exercised any functions or responsibilities with respect to the Project
during his or her tenure, or who is in a position to participate in a decision-making process or gain
insider information with regard to the Project, shall have any interest, direct or indirect, in any
contract or subcontract, or the proceeds thereof, for work to be performed in connection with the
Project, or in any activity, or benefit therefrom, which is part of this Project at any time during or
after such persons' tenure.
Section 12.2. Notices and Demands. A notice, demand or other communication under this
Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and
(a) In the case of Ewing and Vintage, is addressed or delivered personally to
909 W. 16s' Street, Pella, Iowa 50219, Attn: Josh Cowman
(b) In the case of the Developer, is addressed or delivered personally to 340 Herky
Street, North Liberty, IA 52317, Attn: James P. Glasgow and Joseph G. Stiltner; and
(b) In the case of the City, is addressed to or delivered personally to the City
Manager at City Hall, 410 E. Washington St, Iowa City, Iowa, 52240,
or to such other designated individual or officer or to such other address as any party shall have
furnished to the other in writing in accordance herewith.
Section 12.3. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
1 Section 12.4. Memorandum of Agreement. The parties agree to execute and record a
Memorandum of Agreement, in substantially the form attached as Exhibit I to serve as notice to
28
the public of the existence and provisions of this Agreement, and the rights and interests held by
the City by virtue hereof'. The Developer shall pay all costs of recording.
Section 12.5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 12.6. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Iowa.
Section 12.7. Administration of Agreement by City. The City Manager or designee shall
administer the rights and obligations of the City hereunder, and shall have the authority to provide
any consent or approval of the City contemplated in this Agreement.
Section 12.8. Entire Agreement. This Agreement and the exhibits hereto reflect the entire
agreement between the parties regarding the subject matter hereof, and supersedes and replaces all
prior agreements, negotiations or discussions, whether oral or written. This Agreement may not
be amended except by a subsequent writing signed by all parties hereto.
Section 12.9. Successors and Assigns. This Agreement is intended to and shall inure to
the benefit of and be binding upon the parties hereto and their respective successors and assigns.
Section 12.10 No Third -Party Beneficiaries. No rights or privileges of either party hereto
shall inure to the benefit of any landowner, homebuyer, contractor, subcontractor, material
supplier, or any other person or entity, and no such contractor, landowner. subcontractor, material
supplier, or any other person or entity shall be deemed to be a third -party beneficiary of any of the
provisions contained in this Agreement.
Section 12.11. Termination Date. This Agreement shall terminate and be of no firrther
force or effect on and after July I following the tenth fiscal year beginning with the second fiscal
year after the year in which the City first certifies to the County Auditor the amount of any loans,
advances, indebtedness, or bonds which qualify for payment from the division of the revenue in
connection with the Project, or other cause of termination exists as provided herein. For example,
if the City first certifies loans, advances, indebtedness or bonds by December 1, 2019, the tenth
fiscal year period ends June 30, 2031 and this Agreement would terminate on July 1, 2031.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk,
and Ewing, Vintage and Developer have caused this Agreement to be duly executed in its name
and behalf by their authorized representative, on or as of the day first above written.
[Remainder of this page intentionally left blank. Signature pages to follow.]
29
(SEAL) CITY OF IOWA Cl FY, IOWA
BY:
James A. Vhrogmorton, Mayor ff
ATTEST:
Approved By BY:ILI C
Julie VOP -Ail, Deputy City Clerk
City Attorney's Office -y`/2 Jry
U
CITY OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA
COUNTY OF JOHNSON
On this i P�4� day of July 2018, before me a Notary Public in and for said County,
personally appeared James A. Throgmorton and Julie Voparil to me personally known, who
being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa
City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and
that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that
said instrument was signed and sealed on behalf of said Municipal Corporation by authority and
resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporation by it voluntarily executed.
SARA F. G. HEKTOEN
Commission Number 737583
MyComm' io Expires
2d. -;Z0
�t v Y'4' 441-x
Notary Public in and for the State of Iowa
30
VINTAGE C',CjRATI ` O IOWA CITY
BY: ---,
G.1,44 6
VINTAGE COOPERATIVE OF IOWA CITY ACKNOWLEDGEMENT
STATE OF :170wa
)SS
COUNTY OF �1.}, •,< )
ai�
This instrument was acknowledged before me on this 17 day of "I 2018, by
_
___.;5k a,v�r as DrPs,"c�c�t- of VINTAGE OPERATIVE
OF IOWA CITY.
R
ROBERT A. J � � -
a, 47., Notary Public in and fol 1e State of Iowa
Comml%on Number 2247!L
oue My G�orymlon Expires
31
EWING�L 1 [SLOPMENT & SERVICES, L.L.C.
BY: �.-�_----_
Member
EWING LAND DEVELOPMENT & SERVICES, L.L.C. ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON }
This instrument was acknowledged before me on this t 7" day of_, ,.Ju % 2018, by
J f ewht _ and as Ctu,tec ofEWING LAND DF ELOPMENT
& SERVICES, .L.C.. ^(/ ;
PROBERNIN-9-11
commissi47.0 Notary Public in and for th tate of Iowa
M ComT _,
32
r
FOSTER ROAD DEVELOPERS, LLC
BY: Z *A1 -c P
James asgow, Manager
BY: s. ! �:f�Z/
Josep . Stiltner, Manager
FOSTER ROAD DEVELOPERS, LLC ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this /% day of July, 2018, by James
P. �� � rPERS, LLC.
Glasgow an Joseph G. Stiltner as managers of FOSTER ROAD D�ELO........
y �q MICHAEL J PUS Notary Public in�for t tate of Iowa
'f Common Number 175282
aw My Commies" epiiw
July 26, 2018
(00246105 3)
33
EXHIBIT A
MAP OF URBAN RENEWAL AREA
Foster Road Urban Renewal Area
wtiuhM
a
w
5
i � 4
Point of BegInn111A
a x U,Wn Renewal Area
q+E Parcel Lines
07 Di IMA Cm S 0 150 300 600
OFeel
34
EXHIBIT B
LEGAL DESCRIPTION OF URBAN RENEWAL AREA
Commencing at the Northwest corner of Lot 16, Balls Subdivision, as shown in Plat Book 3, Page
100; proceeding northeasterly along the south right-of-way line of Foster Road, as shown in
Exhibits A-1 and B-1 of the Condemnation records recorded in Book 3100, Page 358; thence
following said ROW line to its intersection with the East-West '/a Section line of NW '/, of Section
3, Township 79N, Range 6W; thence East along said Section line to the SE corner of the NE '/4 of
the NW `/a of Section 3, Township 79N, Range 6W; thence continuing East along the East-West
1/4 section line to the SW corner of the NE 1/4 of the NE 1/4 of Section 3, Township 79N, Range
6W, as shown on the Final Plat of a re -subdivision of Lot 30, Conway's Subdivision, Plat Book
17, Page 53; thence North along the West line of Lot 30, Conway's Subdivision, Plat Book 4,
Book 253, to the Northwest comer of Lot 25, Conway's Subdivision, Plat Book 4, Page 253;
thence northeasterly along the North boundary of Conway's Subdivision to the Northeast comer
of Lot 15 and continuing easterly to the eastern Prairie Du Chien Road ROW line; thence
northwesterly along the eastern ROW line to the Northeast corner of Auditor's Parcel "A",
recorded in Plat Book 32, Page 52, said line also being the South ROW of interstate 80 as shown
in the Plat of Survey recorded in Book 32, Page 53 and as described in Book 4224, Page 896 and
Book 2944, Page 267; thence West along the Southl-80 ROW to the Northwestern corner of Lot
4, Yocum Subdivision, Plat Book 5, Page 77, said corner being the intersection of the I-80 South
ROW line and the East-West line between Section 3, Township 79N, Range 6W and Section 34,
Township 80N, Range 6W; thence East along said section line to the Northwest corner of Auditor's
Parcel 2014052, Book 58, Page 324; thence South along the West side of said Parcel to the
Southeast corner of Pine Ridge Subdivision, Plat Book 46, Page157; thence westerly along the
south side of Pine Ridge Subdivision to the Southwest corner of Lot 1, Pine Ridge Subdivision;
thence Southeasterly to the point of beginning
35
EXHIBIT C
LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY
The Development Property is described as consisting of all that certain parcel or parcels of
land located in the City of Iowa City, County of Johnson, State of Iowa, more particularly
described as follows:
Lot 3, Forest Hill Estates, according to the amended plat thereof recorded in Book
(o l , Page 1_a, in the records of the Johnson County, Iowa Recorder, and all of
the Foster Road right-of-way from the centerline of the Dubuque Street right-of-
way east to the eastern line of the Prairie du Chien right-of-way.
36
EXIIIBIT D
MINIMUM IMPROVEMENTS AND USES
Public Improvements
Developer shall construct approximately 3,400 linear feet of public infrastructure to extend Foster
Road from Dubuque Street to Prairie du Chien Road. Said public infrastructure shall include
grading, landscaping in accordance with a City -approved landscaping plan; concrete paving a 36'
wide arterial roadway, an 8' wide multi -use path along the north of the roadway, and 5' wide
sidewalk along the south of the roadway; installing a 12" water main, storm sewer infrastructure,
including piping, curb inlets, and perimeter drains, sanitary sewer, tile lines, drainageways;
establishing erosion control measures as required by the City; and installation of fiber optic
interconnect ducts. The roadway shall include a 2 -lane cross section with two (2) buffered,
dedicated perimeter bike lanes along the entire length of roadway, with a turn lane at the
intersection of Foster Road and Prairie du Chien Road. The lane width will be as determined by
the City.
Landscaping shall be installed according to a landscape plan to be approved by the City Forester,
and in accordance with this Agreement and the Iowa City Code of Ordinances. The selection of
street trees along the roadway will reflect species recommendations from the ISU Agricultural
Extension Department. A mix of deciduous trees will be planted along both the North and South
sides of Foster Road and will be located within the City -owned right-of-way. The trees will be
planted to avoid utilities. The landscaping between the trees, as well as shoulder areas outside the
sidewalks, will be planted with the Iowa DOT urban seed mix.
Elder Apartment Housing
Lot 3, Forest Hill Estates Subdivision, shall be developed by Ewing with an elder apartment
housing development, as defined in the Iowa City Code of Ordinances, Section 14-9A, that
includes at least 50 Dwelling Units consisting of a mix of 1 -bedroom, 2 -bedroom, and 3 -bedroom
units. Said elder apartment housing development shall be constructed in accordance with the
Sensitive Areas Development Plan approved pursuant to Ordinance 18-4740, as shown in Exhibit
E hereto.
37
EXHIBIT E
PLANNED DEVELOPMENT
SENSITIVE AREAS DEVELOPMENT PLAN
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EXHIBIT F
CERTIFICATE OF COMPLETION
WHEREAS, the City of Iowa City, Iowa (the "City"), Vintage Cooperative of Iowa City
("Vintage"), and Foster Road Developers, LLC. ("Developer"), did on or about the 18th day of
Jam, 2018, make, execute and deliver, each to the other, an Agreement for Private Development
(the "Agreement"), wherein and whereby the Vintage and Developer agreed, in accordance with
the terms of the Agreement, to develop and maintain certain real property located within the City
and as more particularly described as follows:
Lot 3, F orest Hill Estates, according to the amended plat thereof recorded in
Book 62 , Page 109 , and all of the Foster Road right-of-way from the centerline
of the Dubuque Street right-of-way east to the eastern line of the Prairie du Chien
right-of-way.
WHEREAS, the Agreement incorporated and contained certain covenants and restrictions
with respect to the development of the Development Property, and obligated Vintage and
Developer to construct certain Minimum Improvements (as defined therein) in accordance with
the Agreement; and
WHEREAS, Vintage and Developer have to the present date performed said covenants and
conditions insofar as they relate to the construction of said Minimum Improvements in a manner
deemed by the City to be in conformance with the approved building plans to permit the execution
and recording of this certification.
NOW, THEREFORE, pursuant to Section 3.4 of the Agreement, this is to certify that all
covenants and conditions of the Agreement with respect to the obligations of Vintage and
Developer, their successors and assigns, to construct the Minimum Improvements on the
Development Property have been completed and performed by Vintage and Developer, and are
hereby released absolutely and forever terminated insofar as they apply to the land described
herein. The County Recorder of Johnson County is hereby authorized to accept for recording and
to record the filing of this instrument, to be a conclusive determination of the satisfactory
termination of the covenants and conditions of said Agreement with respect to the construction of
the Minimum Improvements on the Development Property.
All other provisions of the Agreement shall otherwise remain in full force and effect until
termination as provided therein.
[Remainder of this page intentionally left blank. Signature pages to follow.]
39
(SEAL)
ATTEST:
By:
Kelli Fruehling,
STATE OF IOWA
CITY OF IOWA CITY, IOWA
By:
14�6�ce Teague, Mayor
) SS
COUNTY OF JOHNSON
5
On this ' .___day of.� t-t���, 2021, before me a Notary Public in and for
said State, personally appeared , to me personaDx la]own�who being duly sworn, did say that
they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa, a Municipality
created and existing under the laws of the State of Iowa, and that the seal affixed to the
foregoing instrument is the seal of said Municipality, and that said instrument was signed and
sealed on behalf of said Municipality by authority and resolution of its City Council, and said
Mayor and City Clerk acknowledged said instrument to be the free act and deed of said
Municipality by it voluntarily executed.
o s CHRISTINE OLNEY
= k" CommissionNumber 806232
r. • • • t My Commission Expires
OWA -S"c
Notary Public in and for State of Iowa
EXHIBIT G
ENFORCEABILITY OPINION
(to be printed on firm letterhead)
City of Iowa City
410 E. Washington Street
Iowa City, Iowa 52240
RE: Agreement for Private Development by and among the City of Iowa City, Iowa
Ewing Land Development & Services, L.L.C. , and Foster Road Developers,
LLC.
Dear City Representatives:
We have acted as counsel for an Iowa limited liability company (the
"Company"), in connection with the execution and delivery of a certain Agreement for Private
Development (the "Development Agreement") among the Company, and the City
of Iowa City, Iowa (the "City") dated as of 2018.
We have examined the original certified copy, or copies otherwise identified to our
satisfaction as being true copies, of the following:
(a) The organization and operating agreement of the Company;
(b) Resolutions of the Company at which action was taken with respect to the
transactions covered by this opinion;
(c) The Development Agreement;
and such other documents and records as we have deemed relevant and necessary as a basis for
the opinions set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries as we have
deemed appropriate, we are of the opinion that:
1. The Company was duly organized and validly exists as a limited liability company
under the laws of the State of Iowa and is qualified to do business in the State of Iowa. The
Company has full power and authority to execute, deliver and perform in full the Development
Agreement; and the Development Agreement was duly and validly authorized, executed and
delivered by the Company and, assuming due authorization, execution and delivery by the City, is
in full force and effect and is a valid and legally binding instrument of the Company enforceable
in accordance with its terms, except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws relating to or affecting creditors' rights generally.
2. The execution, delivery and performance by the Company of the Development
Agreement and the carrying out of the terms thereof, will not result in violation of any provision
of, or in default under, the articles of organization and operating agreement of the Company or any
41
indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule,
regulation or restriction to which the Company is a party or by which it or its property is bound or
subject.
3. There are no actions, suits or proceedings pending or threatened against or affecting
the Company in any court or before any arbitrator or before or by any governmental body in which
there is a reasonable possibility of an adverse decision which could materially adversely affect the
business (present or prospective), financial position or results of operations of the Company or
which in any manner raises any questions affecting the validity of the Agreement or the Company's
ability to perform its obligations thereunder.
Sincerely,
42
EXHIBIT H
+ TEMPORARY CONSTRUCTION EASEMENT AGREEMENT
This Temporary Construction Easement Agreement is made on this 10 day of
/-Iw , 2018, by and among the City of Iowa City, Iowa ("City"), a
municipality, Vintage Cooperative of Iowa City ("Vintage"), a limited liability company organized
under the laws of the State of Iowa and having an office for the transaction of business at 909 W.
16`h Street, Pella, Iowa 50219 and Foster Road Developers, LLC. ("Developer"), a limited liability
company organized under the laws of the State of Iowa and having an office for the transaction of
business at 340 Herky Street, North Liberty, Iowa 52317.
WHEREAS, Vintage is the fee owner of certain real estate legally described as Lot 3, Forest Hill
Estates, according to the amended plat thereof recorded in Book Page LO!j, in the records
of the Johnson County, Iowa Recorder ("Development Property"); and
WHEREAS, Developer is the fee owner of certain real estate legally described as Lots 1, 2, 4 and 5,
Forest Hill Estates, according to the plat thereof recorded in Book 62, Page 54, in the records of
the Johnson County, Iowa Recorder; and
WHEREAS, the City of Iowa City is the owner of certain real estate legally described as the Foster
Road right-of-way from the centerline of the Dubuque Street right-of-way east to the eastern line
of the Prairie du Chien right-of-way ("Right -of -Way"); and
WHEREAS, Vintage, Developer and the City have entered into an Agreement for the Private
Development of said Development Property and Right -of -Way, with a memorandum of said
agreement having been recorded with the Johnson County Recorder in BookS"jj , PageS"on
- 2018;
WHEREAS, Vintage and Developer have requested the City permit the temporary private use of the
Right -of -Way for construction of those right-of-way improvements described in the Agreement for
Private Development; and
WHEREAS, the City of Iowa City, Iowa, is responsible for the care, supervision, and control of
public property; and
WHEREAS, the Public Works Director has reviewed the requested private use, and finds that the
impacts on municipal functions will be manageable, and also finds that such temporary private uses
are in the public interest; and
WHEREAS, the Director of Transportation Services has reviewed the requested temporary private
use of the Right -of -Way, and finds that such request is reasonable.
NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE PROMISES HEREIN, THE
PARTIES HERETO AGREE AS FOLLOWS:
43
1. In consideration of the City's permission herein to temporarily close the Right -of -Way during
construction of the project detailed in the above-described Development Agreement, Vintage
and Developer agree to:
a. secure the Right -of -Way against vehicular or pedestrian traffic by providing adequate
pedestrian passage, adequate traffic control, by providing adequate signage, and by securing
all open excavations from pedestrians, thereby ensuring public safety.
2. In consideration of Vintage's and Developer's promises herein, the City agrees to allow
Ewing and Developer to temporarily fence and close the Right -of -Way and to construct those
certain improvements described in the Agreement for Private Development on and over the
Right -of -Way pursuant to the limitations set forth in this easement agreement and the
Agreement for Private Development.
3. Vintage and Developer agree to provide, keep in place, and maintain in good working
condition certain fencing and signage necessary to do the following:
a. route pedestrians through or around the closed area as approved by the City during
construction;
b. provide adequate advance warning of such closure; and
c. provide for the orderly and predictable movement of traffic.
All signage shall be in accordance with the Federal Highway Administration Manual on
Uniform Traffic Control Devices.
4. Vintage and Developer shall be responsible for the removal, storage, and replacement of
items located within the easement which could be damaged during the construction. Items
include, but are not limited to, signage, parking gates, benches, bricks, planters, downspouts,
lighting and electrical services.
5. Vintage and Developer agree to indemnify, defend and hold the City harmless against any
and all claims for bodily injury, death or property damage arising out of their actions and use
of the public property under this Agreement, and those of their contractors, subcontractors,
agents, employees and assigns specifically including any and all claims and/or liabilities which
may be alleged against the City as a result of its decision to allow Vintage and Developer to
temporarily close a portion of public property described herein. Vintage and Developer further
agree to carry Class II liability insurance in the minimum amounts of $500,000 each
occurrence, $1 million aggregate bodily injury, and $250,000 aggregate property damage with
contractual liability coverage included. Vintage and Developer shall furnish a certificate of
insurance evidencing said valid insurance coverage to City, which certificate must be
satisfactory to the City. Vintage and Developer shall submit a certificate of insurance to the
City prior to the commencement of construction.
6. If Vintage and Developer fail to restore the easement area to the City's satisfaction as
required in this Agreement, the City may restore the easement area, and the cost thereof shall
44
be billed to Vintage and Developer for payment to City. Upon Vintage and Developer's failure
to pay said billing, the removal costs shall be certified to Johnson County as a statutory lien
and assessed against the property owned by Vintage and Developer described in the preamble
hereto and collected in the same manner as a property tax, as provided in Section 364.12(2)(e),
Iowa Code (2017).
7. This Temporary Agreement shall remain in effect until completion of the Project and
restoration of the easement area pursuant to Section 6 herein, with an anticipated
commencement and completion date as set forth in Section 3. of the Development
Agreement described above.
8. Notwithstanding the above, Vintage and Developer agree to cease and desist their temporary
use and closure of the easement area and to remove any and all obstructions from said easement
area in the event of a breach of this Agreement.
9. Vintage and Developer acknowledge and agree that no property right is conferred by this
grant of permission to use the easement area.
10. This Agreement shall constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns of
both parties.
11. This Agreement for Temporary Construction Easement shall be recorded in the Johnson
County Recorder's Office, at Developer's expense.
(SEAL) CITY OF IOWA CITY, IOW
BY: ��
James Al. Throgmorton, Mayor
ATTEST:
V
BYE
Juli aril, Deputy City Clerk
VINTAGE C "RATI ' . F IOWA CITY
BY: -
oC ember --�
FOSTER ROAD DEVELOPERS, C
BY:
James P. Glasgow,.Manager
BY:
Joseph G. Stiltner, Manager
45
be billed to Vintage and Developer for payment to City. Upon Vintage and Developer's failure
to pay said billing, the removal costs shall be certified to Johnson County as a statutory lien
and assessed against the property owned by Vintage and Developer described in the preamble
hereto and collected in the same manner as a property tax, as provided in Section 364.12(2)(0),
Iowa Code (2017).
7. This Temporary Agreement shall remain in effect until completion of the Project and
restoration of the easement area pursuant to Section 6 herein, with an anticipated�7
commencement and completion date as set forth in Section ✓� of the Development
Agreement described above.
8. Notwithstanding the above, Vintage and Developer agree to cease and desist their temporary
use and closure of the easement area and to remove any and all obstructions from said easement
area in the event of a breach of this Agreement.
9. Vintage and Developer acknowledge and agree that no property right is conferred by this
grant of permission to use the easement area.
10. This Agreement shall constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns of
both parties.
11. This Agreement for Temporary Construction Easement shall be recorded in the Johnson
County Recorder's Office, at Developer's expense.
(SEAL) CITY OF IOWA CITY, IOWA
nG,..�
BY: ve /IT
James A. Throgmorton, Mayofr
ATTEST:
Julie Voparil, Deputy City Clerk
VINTAGE COOPERATI�E'OF IOWA CITY
BY:
Member
��5� !►��
Jame". Q. lasgow, Manager v
BY: 11.r A .
Josephp. Stiltner, Manager
(00246105 3) 45
CITY OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA
COUNTY OF JOHNSON
On this %'? 4. day of July 2018, before me a Notary Public in and for said County,
personally appeared James A. Throgmorton and Julie Voparil tome personally known, who
being duly sworn, did say that they are the Mayor and Deputy Clerk, respectively of-theCity
City, Iowa, a Municipal Corporation, created and existing under the laws of the State o w"va, anu
that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that
said instrument was signed and sealed on behalf of said Municipal Corporation by authority and
resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporation by it voluntarily executed.
oti CFIRISTINEOLNEY
1Z;01WA'P
Commission Number 808232Mw Commission ExpiresNotary Public in and for State of Iowa
-S --
VINTAGE COOPERATIVE OF IOWA CITY
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was acknowledged before me on this day of July, 2018, by
as Z' of VINTAGE COOPERATIVE OF IOWA CITY.
Notary Public in and for the State of Iowa
FOSTER ROAD DEVELOPERS, LLC ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this /A day of July, 2018, by James P.
Glasgow and Joseph G. Stiltner as managers of FOSTER DEVFhLOPERS, LLC.
MICNAEL J PUGH Notary Public in an fort State of Iowa
Commission Number 175282
My Commission Expires
July 26, 2018
(00246105 3) 46
of Iowa
CITY OF IOWA CITY ACKNOWLEDGEMENT
61K. WO)WITI 1
COUNTY OF JOHNSON
On this 16� day of July 2018, before me a Notary Public in and for said County,
red
personally appeaJames A. Throgmorton and Julie Voparil tome personally known, who
being duly sworn, did say that they are the Mayor and DeputylClerk, respectively of the
City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, ana
that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that
said instrument was signed and sealed on behalf of said Municipal Corporation by authority and
resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be
the free tact and deed of said Municipal Corporation y jt voluntanlftheS�te
� d.
CHRISTINE OLNEY
"
Commission Number $06232
a Mac C mis ion Expires Notary Public in alof Iowa
VINTAGE COOPERATIVE OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
w
This insVument was acknowlgdged before me on this % 7 day of July, 2018, by
Tos� COw'utc v , as 'Tof VINTAGE COOPERATIVE OF IO A CITY.
ROBERT 1i.A10.11PUE Fes' G�
`r Commission Nurrm+,er 2247 3 �..,.�
My om ,' �iDn Lx m
�-��-ac+.�c� Notary Public in and for t1fe State of Iowa
FOSTER ROAD DEVELOPERS, LLC ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of July, 2018, by James P.
Glasgow and Joseph G. Stiltnpr 9 managers of FOSTER ROAD DEVELOPERS, LLC.
i'
Notary Public in and for the State of Iowa
46
City of lowi
Page 5 of 9
EXHIBIT I
MEMORANDUM OF AGREEMENT FOR PRIVATE DEVELOPMENT
WHEREAS, the City of Iowa City, Iowa (the "City"), Ewing Land Development &
Services, L.L.C. ("Ewing"), a limited liability company organized under the laws of the State of
Iowa and having an office for the transaction of business at 909 W. 16'h St., Pella, Iowa, 50219,
Vintage Cooperative of Iowa City, a housing cooperative organized under the laws of the State of
Iowa and having an office for the transaction of business at 909 W. 16" St., Pella, Iowa 50219
("Vintage"), and Foster Road Developers, LLC. ("Developer"), a limited liability company
organized under the laws of the State of Iowa and having an office for the transaction of business
at 340 Herky Street, North Liberty, Iowa, 52317, did on or about the Iv°* day of July, 2018,
make, execute and deliver an Agreement for Private Development (the "Agreement"), wherein and
whereby Ewing, Vintage and Developer agreed, in accordance with the terms of the Agreement,
to develop and maintain certain real property located within the City and as more particularly
described as follows:
Lot 3, Forest Hill Estates, according to the amended plat thereof recorded in Book
Page /��! , and all of the Foster Road right-of-way located from the
centerline of the Dubuque Street right-of-way east to the eastern line of the Prairie
du Chien right-of-way.
WHEREAS, the term of this Agreement shall commence on the %6r'�' day of
J 2018 and terminate on the Termination Date, as set forth in the Agreement;
and
WHEREAS, the City, Ewing, Vintage and the Developer desire to record a Memorandum
of the Agreement referring to the Development Property and their respective interests therein.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. That the recording of this Memorandum of Agreement for Private Development
shall serve as notice to the public that the Agreement contains provisions restricting development
and use of the Development Property and the improvements located and operated on such
Development Property.
2. That all provisions of the Agreement and any subsequent amendments thereto, if
any, even though not set forth herein, are by the filing of this Memorandum of Agreement for
Private Development made a part hereof by reference, and that anyone making any claim against
any of said Development Property in any manner whatsoever shall be fully advised as to all of the
terms and conditions of the Agreement, and any amendments thereto, as if the same were fully set
forth herein.
3. That a copy of the Agreement and any subsequent amendments thereto, if any, shall
be maintained on file for public inspection during ordinary business hours in the office of the City
Clerk, City Hall, 410 E. Washington Street, Iowa City, Iowa.
47
Book: 5817 Page: 51 Seq:5
Pago 6 of 9
IN WITNESS WHEREOF, the City, Ewing, Vintage and Developer have executed this
Memorandum of Agreement for Private Development as of the L day of
2018.
(SEAL) " ' CITY OF IOWA CITY, IOWA
BY:
kip James AyFhrogrnorton, Mayor
l - ATTEST: l C
BY:
C r Julie Vo Deputy City Clerk
EWING LAND DEVEL MENT & SERVICES, L.L.C.
(OPPOM 5N BY. Member
VINTAGE COOPERA i nE OF IOWA CITY
BY:
FOSTER ROAD DEVELOPERS, L.L.C.
CITY OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA
COUNTY OF JOHNSON
On this r \ day of July, 2018, before me a Notary Public in and for said County,
personally appeared James A. Throgmorton and Supe Voparil to me personally known, who
being duly sworn, did say that they are the Mayor and Deputy Clerk, respectively of the Catty of Iowr
City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and
that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that
said instrument was signed and sealed on behalf of said Municipal Corporation by authority and
(00246105 3)
48
Book: 5817 Page: 61 Seq:6
Page 7 of 9
resolution of its City Council and said Mayor and Deputy Clerk acknowledged said instrument to be
the free act and deed of said Municipal Corporation by it voluntarily executed.
C MISTINE OLNEY r
COMA" tAgow Boom Notary Public in and for thotate of Iowa
**w
My can n*" Evka -6-
EWING LAND DEVELOPMENT & SERVICES, L.L.C.
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before
and
& SERVICES, L.L.C.
Notary
VINTAGE COOPERATIVE OF IOWA CITY
STATE OF IOWA
COUNTY OF JOHNSON
this day of , 20_, by
of EWING LAND DEVELOPMENT
State of Iowa
This instrument was acknowledp& before me on this day of 20_, by
as of VINTAGE COOPERATIVE OF IOWA CITY.
FOSTER ROAD DEVELOPERS, L.L.C. ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this 1?4 day of July 2018, by James P.
Glasgow and Joseph G. Stiltner as managers of FOSTER ROAD DEVE OPERS, LLC.
op MICHAELJPt1t3H
Notary Public in and for tietate of Iowa
1'4WMy
CoommWon NumYK II
oommlamon
!ury 2b, 2018
100246105 3)
49
Book: 5817 Page: 51 Seq:7
Page 8 of 9
IN WITNESS WHEREOF, the City, Ewing, Vintage and Developer have executed this
Memorandum of Agreement for Private Development as of the , day of
2018.
(SEAL) CITY OF IOWA CITY; IOWA
co;�oMrEsN
BY:
James A. ogmorton, Mayor
ATTEST:
BY:y
Julie Vopar`i.l, Deputy City Clerk
EWING LAND EVELOPMENT & SERVICES, L.L.C.
BY:
Member
VINTAGE P T1V IOWA CITY
BY:
FOSTER ROAD
BY:
James P. Glasgow,
BY: _
Joseph
CITY OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA )
COUNTY OF JOHNSON )
, Manager
On this I'R PA� day of July, 2018, before me a Notary Public in and for said County,
personally appeared James A. Throgmorton and Julie voparil tome personally known. who
being duly Sworn, did say that they are the Mayor and Deputy Clerk, respectively of City of Iowa
City, Iowa, a Municipal Corporation, created and existing unner the laws of the State of Iowa, and
that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that
said instrument was signed and sealed on behalf of said Municipal Corporation by authority and
48
Book: 5817 Page: 51 Seq:8
Page 9 of 9
resolution of its City Council and said Mayor and Deputy Clerk acknowledged said
the free act and deed of said Municipal Corporation by it voluntarily executed.
oil
CHR(STINEpLNEY
_ f CanmV6nion Numbx tM4 Notary Public in ano e State of Iowa
+ • MY Canmisfkn Explru
nwa
EWING LAND DEVELOPMENT & SERVICES, L.L.C. ACKNOWLEDGEMENT
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was acknowledged
JcT' 61-,tivq and
& SERVICES, 1.C.
eeMM11++e. ROBERTA. JI�Di�4s
F ComNeston rx,nt,e�r Y2Ir47
an 1':�Irea
instrumentto be
)SS
before me on this 17i"day of wf 20f by
ofEMNG LAND Dt-VELOPMENT
Notary Public in and 46r the State of Iowa
VINTAGE COOPERATIVE OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowled before me on this 17day of Jw I
�us�tc>� '"A� as , t of VINTAGE COOPERATIVE F 1 CITY.
G
FOSTER ROAD DEVELOPERS, L.L.C. ACKNOWLED6UEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
20 4 by
This instrument was acknowledged before me on this day of July 2018, by James P.
Glasgow and Joseph G. Stiltner as managers of FOSTER ROAD DEVELOPERS, LLC.
Notary Public in and for the State of Iowa
49
Book: 5817 Page, 51 5eq;9
EXHIBIT J
ANNUAL CERTIFICATION
Date:
(due annually no later than November 1)
I, , the undersigned, having knowledge of the Developer's Agreement between the
City of Iowa City and , dated 2018, and the operations of
the Development Property, hereby certify the following;
1. All ad valorem taxes on the Development Property have been paid for the prior fiscal
year, as evidenced by the attached documentation; and
2. (A) I have re-examined the terms and provisions of the Development Agreement and can
affirm that during the preceding twelve (12) months, the Developer is not, or was not, in default
in the fulfillment of any of the terms and conditions of said and that no Event of Default (or event
which, with the lapse of time or the giving of notice, or both, would become an Event of Default)
is occurring or has occurred as of the date of this certificate.
OR
(B) the undersigned has re-examined the terms and provisions of the Development
Agreement and that at the date of this certificate, the undersigned is aware that the Developer is in
default of the Agreement for the following reasons:
that the default has existed since (date); and that the
Developer is taking or proposes to take the following action with respect thereto:
3. has invested $ in completing the Minimum
Improvements, as evidenced by and has taken all reasonably necessary action to
maintain said improvements;
By: Date:
(Name, title)
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 2018, by
and , as members of
Notary Public in and for the State of Iowa
50
EXHIBIT K
DEVELOPER CERTIFICATION OF COSTS OF PUBLIC IMPROVEMENTS
Foster Road Developers, L.L.C. ("Developer") hereby certifies that the expenses shown on
the table below were/are the actual expenses incurred by the Developer for the Public
Improvements that are the subject of the Agreement for Private Development entered into the
day of , 2018. The Developer certifies that no expenses claimed or shown on
this table relate to personal or unallowable expenses.
In the event of an overpayment by the City for expenses not actually incurred, or if payment
was received from another source for any portion of the expenses claimed, the Developer assumes
responsibility for repaying the City in full for those expenses.
Project
Engineering,
Construction
Legal
Drainage,
Cost for
Interest during
Miscellaneous
Cost
Plans,
Costs
Costs
Landscaping,
ROW
construction
Category
Specifications
Grading
acquisition
and for not
more than six
months
thereafter
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Invoice
description
and cost
Total Cost
per
category
If additional space is needed, please attach another table.
Attach actual receipts and invoices
[Remainder of this page intentionally left blank. Signature page to follow.]
51
I certify under penalty of perjury and pursuant to the laws of the State of Iowa that the preceding is true and
correct to the best of my knowledge and belief.
FOSTER ROAD DEVELOPERS, LLC
By: u
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this /02 day of July 2018, by James P.
Glasgow and Joseph G. Stiltner as managers of FOSTER ROAD DEVELOPERS, LLC.
Notary Public in and for t e Slate of Iowa
*M!
M
(00246105 3) 52
EXHIBIT L
NOTICE OF NO TAX ABATEMENT RECEIPT
To:
By signing this form, you, the homebuyer, acknowledge receipt of this document, which informs
you that as a homeowner purchasing the below -described property, you will not be eligible for tax
abatement under the City of Iowa City's Urban Revitalization Plan, if any, or any other state,
federal or local law.
[legal description, property address]
Signature: _
Print Name:
Date:
Address:
53
EXHIBIT M
WAGE "THEFT AFFIDAVIT
STATE OF IOWA )
) ss:
JOHNSON COUNTY)
I, , upon being duly sworn, state as follows:
1. I am the of ("Developer") and
have the authority to execute this affidavit on behalf of said Developer and any person
or entity with an ownership interest in said Developer of more than 25%.
2. Neither Developer nor any person or entity with an ownership interest of more than
25% of Developer has been adjudicated guilty or liable in any judicial or
administrative proceeding of committing a repeated or willful violation of the Iowa
Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor
Standards Act or any comparable state statute or local ordinance, which governs the
payment of wages in the last 5 years.
This instrument was acknowledged before me on this day of , by
as of
Notary Public in and for the State of Iowa
54
EXHIBIT N
MINIMUM ASSESSMENT AGREEMENT
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this 19 fl� day of
2018, by and among the CITY OF IOWA CITY, IOWA, ('City"),
VINTACiE COOPERATIVE OF IOWA CITY ('Owner"), and the CITY ASSESSOR of the City
of Iowa City, Iowa ('Assessor").
WITNESSETH:
WHEREAS, it is contemplated that the Owner will undertake or cause the undertaking of
development of an area for elder apartment housing within the Foster Road Urban Renewal Area,
as established by the Iowa City City Council, in accordance with the Foster Road Urban Renewal
Plan and an Agreement for Private Development; and
WHEREAS, the City is making a significant grant of funds to the Owner which will allow
the Owner to construct the Project; and
WHEREAS, the City will be reimbursed for such grant from the property tax revenues
generated from the Foster Road Urban Renewal Area; and
WHEREAS, pursuant to Iowa Code section 403.6 (2017), as amended, the City and the
Redeveloper desire to establish a minimum actual value for the land locally known as Lot 3, Forest
Hill Estate, Iowa City, Iowa; and
WHEREAS, the City and the Assessor have reviewed the preliminary plans and
speci f cations for the Minimum Improvements to be erected as a part of the development;
NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in
consideration of the promises, covenants and agreements made by each other, do hereby agree as
follows:
1. As of January 1, 2020, a full assessment shall be made fixing the minimum actual
taxable value for assessment purposes for the land and Minimum Improvements to be constructed
thereon at not less than $14,000,000 after taking into consideration any factors such as "roll backs"
which would reduce the taxable value of the property ("Minimum Actual Value"). The parties
hereto acknowledge and agree that construction of the Minimum Improvements will be
substantially completed on or before December 31, 2019.
3. Owner recognizes that the economic development grants made pursuant to the
Agreement for Private Development is conditional upon sufficient property taxes being generated
by this Project.
4. Owner contemplates that a portion of the Project will be residential condominium
units which will be subject to the property tax "roll -back" referred to previously. Owner agrees
that at the time of the execution of the declaration required by Chapter 499B Horizontal Property
55
(Condominiums) of the Code of Iowa 2017 an attachment to the declaration will be executed by
j the Owner, the City and the City Assessor allocating a portion of the Minimum Actual Value to
each unit.
5. Owner agrees that the difference between the Minimum Actual Values (as adjusted
pursuant to paragraph 3 hereof) and the amount allocated to the residential condominium units (as
set forth in paragraph 4 hereof) will be allocated to the remainder of Lot 3.
6. The Minimum Actual Values (as adjusted pursuant to paragraph 3 hereof) herein
established shall be of no further force and effect and this Minimum Assessment Agreement shall
terminate when the final economic development grant is paid in accordance with the Agreement.
Nothing herein shall be deemed to waive Owner's rights under Iowa Code section
403.6(19) (2017), as amended, to contest that portion of any actual value assignment made by the
Assessor in excess of the Minimum Actual Values (as adjusted pursuant to paragraph 3 hereof)
established herein. In no event, however, except as set forth in the first paragraph of this Section
6 shall Owner seek to reduce the actual value assigned below the Minimum Actual Value (as
adjusted pursuant to paragraph 3 hereof) established herein during the term of this Agreement.
7. This Minimum Assessment Agreement shall be promptly recorded by the Owner
with the Recorder of Johnson County, Iowa, at Owner's cost, such recording shall constitute notice
to any subsequent encumbrancer or purchaser of the property (or part thereof), whether voluntary
or involuntary, and such Minimum Assessment Agreement shall be binding and enforceable in its
entirety against any such subsequent purchaser or encumbrancer, including the holder of any First
Mortgage.
8. Owner has provided a title opinion to the City listing all lienholders of record as of
the date of this Assessment Agreement and all such lienholders have signed consents to this
Assessment Agreement, which consents are attached hereto and made a part hereof.
9. Neither the preambles nor provisions of this Minimum Assessment Agreement are
intended to, or shall be construed as, modifying the terms of the Agreement for the Private
Development between the City and Owner.
10. This Minimum Assessment Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the parties.
(SEAL) CITY OF IOWA CITY, IO A
By:
Janfes A Throgmorton, Mayor
ATTEST:
oV,��� .
JulSulie Vopar 1, Deputy City� Clerk
56
VINTAGE COOPERATIVE F IOWA CITY ("Vintage"),
OWNER,
I _
Member
CITY OF IOWA CITY, IOWA ACKNOWLEDGEMENT
STATE OF IOWA
COUNTY OF JOHNSON
On this )6f"' day of 1 c , 20 Jo, before me a Notary Public in and
for said County, personally appearedg n and . l(&p,-i ( , to me personally
known, who being duly sworn, did say that they are the Mayor and Deputy City Clerk respectively of
City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State
of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal
Corporation, and that said instrument was signed and sealed on behalf of said Municipal
Corporation by authority and resolution of its City Council and said Mayor and City Clerk
acknowledged said instrument to be the free act and deed of said Municipal Corporation by it
voluntarily executed.
SARA F. G HEkT`)F` ivty . .fes r
Commission Nu*r,)-/9
My Com issi .r x ic:a Notary Public in and for the State of Iowa
rt ti a�a�
VINTAGE COOPERATIVE OF IOWA CITY ACKNOWLEDGEMENT
STATE OF IOWA )
)SS
COUNTY OF JOHNSON }
This instrument was acknowledged before me on this 1 76' day ofXoHowa
018 by
as member of Vintage Cooperative of Iowa City.
4q, ROBERT A. JP�'� Y?�,5 (�CommissionNumb 012247!8Notary Public in and for th
�j-3y .aoScr
57
1�
CERTIFICATION OF ASSESSOR
The undersigned, having reviewed the plans and specifications for the Minimum
Improvements to be constructed and the market value assigned to the land upon which the
Minimum Improvements arc to be constructed for the development, and being of the opinion that
the minimum market value contained in the foregoing Minimum Assessment Agreement appears
reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the property subject to the development, upon completion of Minimum
Improvements to be made on it and in accordance with the Minimum Assessment Agreement,
certifies that the actual value assigned to such land, building and equipment upon completion of
the development shall not be less than $14,000,000 after taking into consideration any factors such
as "roll -backs" which would reduce the taxable value of the property. Of this amount,
Dollars ($ ) is determined to
be the value of the land and Dollars ($ ) the value
of the buildings thereon until termination of this Minimum Assessment Agreement pursuant to the
terms hereof.
Assessor for Iowa City, Iowa
Date
STATE OF IOWA )
COUNTY OF JOHNSON )
Subscribed and swom to before me by Assessor for
Iowa City, Iowa.
Notary Public in and for Johnson County, Iowa
58
r CITY OF 10WA C1
COUNCIL ACTION REPO 11
July 17, 2018
Resolution Approving an Agreement for Private Development By and
Among the City, Foster Road Developers, L.L.C., Vintage Cooperative of
Iowa City, and Ewing Land Development & Services, L.L.C. for Foster
Road and The Vintage Cooperative Senior Living
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: Resolution & Draft Development Agreement
Executive Summary
This Development Agreement between the City and developers will result in the construction of
Foster Road between Dubuque Street and Prairie du Chien Road and a senior living facility. This
project is estimated to cost approximately $20,167,000 and will generate a minimum $14,000,000
of new tax base upon which taxes will be paid. It is located within the newly -created Foster Road
Urban Renewal Area (URA). A portion (55%) of the tax increment collected from the URA will be
utilized to reimburse Foster Road Developers, LLC up to $3,367,000 in construction costs for the
road. The other 45% of the tax increment will be directed to assistance for low and moderate -
income family housing, which, over the ten-year life of the URA, is estimated to be $2 - $3 Million.
Background
Jim Glasgow and Greg Stiltner, representing Foster Road Developers, LLC, approached the City
in 2017 about the possibility of working together to build Foster Road between Dubuque Street
and Prairie du Chien. Another firm, Ewing Land Development & Services, LLC, had approached
the property owners with a proposal to buy land for The Vintage, a multi -family senior living facility.
The sale of the land would help fund the road construction, but even after the maximum allowable
bank loans, there would still be a financial gap, so Foster Road Developers asked if the City could
help using tax increment financing (TIF).
Urban Renewal Area
The use of tax increment financing to assist with public improvements related to housing and
residential development is allowed under state law where the project will include assistance for
low and moderate -income family housing as follows:
1) The City must set aside and use 45% of the tax increment to support LMI housing in the
community. The City may use the other 55% of the tax increment to provide economic
development assistance to the developer.
'r 1 CITY OF IOWA CITY
Ar 1 COUNCIL ACTION REPORT
Iowa Code Chapter 403 requires that the set aside must be equal to or greater than the
percentage of LMI persons in the county, which today in Johnson County is 45%. This LMI
set aside can be used to fund initiatives in the Affordable Housing Action Plan that provide
housing for households earning no more than 80% AMI (area median income) (for example,
$54,400 for a 2 -person household, $68,000 for a 4 -person household).
2) It has a 10 -year life and then ends. This means that the developer will only be reimbursed
from 55% of the tax increment generated from the urban renewal area for 10 years.
The Project
The development agreement obligates the developers to construct the road and the senior living
apartments in exchange for certain economic development grants in the form of TIF
reimbursement. These minimum improvements shall be constructed in conformance with the
Construction Plans submitted to and approved by the City, which shall be in accordance with the
Conditional Zoning Agreement and the Planned Development Sensitive Areas Development Plan.
It is contemplated that Foster Road Developers will construct the road and Ewing Land
Development and Services, LLC will construct the senior living facility on land owned by the
Vintage Cooperative of Iowa City. The entire project is anticipated to be completed by December
31, 2019. If completed by then, Foster Road Developers would be eligible to receive certain
economic development grants based upon expenses related to the construction of Foster Road.
These grants are funded through the tax increment generated by the new senior living housing
and any other development within the Foster Road Urban Renewal Area that may subsequently
occur during the 10 year life of the agreement. If the tax increment generated is insufficient to
cover the maximum economic development grants in the ten-year life of the urban renewal area,
then that risk is on the developer.
The Vintage
The Developers Agreement requires Ewing Land Development & Services and the Vintage
Cooperative of Iowa City to build a senior living apartment building with at least 50 units on Lot 3.
This building will contain a mix of 1-, 2- and 3- bedroom units. A Minimum Assessment Agreement
(MAA) is also part of the Development Agreement, stipulating that upon completion of the building,
the full assessment on January 1, 2020 shall not be less than $14 Million. This development
agreement provides no economic development assistance to Ewing or Vintage.
Foster Road
The Developers Agreement requires that Foster Road Developers build and pay for the road and
associated public infrastructure. The project extends Foster Road as an arterial street from
Dubuque Street to Prairie du Chien Road, a distance of approximately 3,400 linear feet, roughly
2/3 of a mile. It will be 36 feet wide with a 2 -lane cross section and buffered, dedicated perimeter
bike lanes in both directions. There will be an 8 -foot -wide multi -use path on the north side of the
road and a 5 -foot -wide sidewalk on the south side. The project also includes street trees
r ' CITY OF IOWA CITY
COUNCIL ACTION REPORT
throughout the corridor in accordance with a landscape plan to be approved by the City Forester,
an eastbound turn lane on Foster Road at the intersection with Prairie du Chien Road and the
extension of water main, storm water, sanitary sewer, drainageways, erosion control, and fiber
optic duct placement.
The 1997 Comprehensive Plan and the 2001 North District Plan both identified the extension of
Foster Road between Dubuque and Prairie du Chien as a future roadway that will provide
neighborhood connectivity and access to future development. The 2001 plan noted that the future
Foster Road will alleviate cut -through traffic on Kimball and Ridge Roads and Whiting Avenue.
Additionally, the extension will provide more efficient access for the Peninsula and Forestview
neighborhoods to commercial developments.
Preparations for the construction of Foster Road began years ago when the City purchased the
necessary right-of-way. The road construction project was in the unfunded Capital Improvement
Plan for a time, but was removed from the list when other capital improvements took priority and
the decision was made to let private development drive the timeline for its completion.
Economic Development Grants
The Development Agreement contemplates that the developer may be reimbursed for a maximum
of $3,367,000 for certain expenses related to installation of Foster Road. This number was
calculated based upon the following: 100% of eligible expenses on the western end of that portion
of Foster Road that does not cross property owned by the parties to the agreement (about 40%
of the length), and 75% of the eligible expenses associated with the eastern 60% of the road that
bisects the developer's property.
Expenses eligible for reimbursement related to the design and construction of the Public
Improvements include the cost for acquisition of land to be dedicated to City, interest during
construction and for not more than six months thereafter, costs for demolition, construction,
landscaping, grading, drainage, engineering, plans and specifications for the Public
Improvements and the construction of the Public Improvements.
The City makes no assurance that the developer will receive economic development grants which
cover the cost of the public improvements or which reach the maximum $3,367,000. The
increment generated just from the senior living development is not anticipated to result in payment
of the maximum amount. Thus development of other land within the URA is necessary for the
developer to receive the maximum reimbursement.
Affordable Housing initiatives benefit
The 45% tax increment LMI set aside is made annually prior to distribution of any annual economic
development grant to the developer. If the tax increment generated by development within the
URA are high enough to reimburse the full $3,367,000 within the ten year lifespan of the urban
renewal plan, this will result in approximately $3,178,000 for Affordable Housing initiatives.
'r 1 CITY OF IOWA CITY
;r40
1 COUNCIL ACTION REPORT
This money can be used to support LMI housing anywhere in the City, not just within the URA. It
is important to note that the City does not currently have a sustainable affordable housing revenue
source and this project would create one for ten years.
The development agreement notes that the statutory requirements for LMI assistance may be
met by the construction of LMI affordable dwelling units as part of the Project, which would
decrease the required set aside funds. The agreement, however, does not obligate the provision
of such units.
APPLICATION FOR
PRELIMINARY PLAT
FOREST HILL ESTATES
IN THE CITY OF IOWA CITY,
JOHNSON COUNTY, IOWA
A RESUFFINSION OFFUDITORS PARGELA AN RECORDED IN BOOK 3% PAGE 52, OFTHE RECORDS
C FT E OHNSON COUNTY, IOWA RECORDERS OFFICE, AUDITORS PARCEL B AS RECORDED IN
BI 3�, PAGE 53, OFTHE RECORDS OFTHEJOHNSON COUNTY IOWA RECORDERS OFFICE, A
�ORT ON OFTHE NORTH HADOFTHE NORTHWEST QUARTER OFTHE NORTHEAST QUARTER OF
EGTI�� 3, OWNSHIP 79 NORTH, RANGE AWESTATRbANAUb%R PIECE L%YING IN THE NORTH
HALF THE� NORTHEAST QUARTER OFTHE NORTHEAST QUARTER OFSECTION ATOWNSHIP 79
EARTH, RANGE 6WESTAND SOUTHEAST QUARTER OFTHESOUTHERST QUARTER OFSECTION GO
G�WNSHIP 80 EARTH, RANGE ROBERT, CINGSOUTH OFINTERSTATI EAGEPTTHAT LAND
TO �Vl DTO HEITYOFIOWAITYFOR FOSTER ROAD AS RECORDED IN BOOKS o A OF G E I OF
WARRANTY DE� ORDED IN BOOK SAFE, PAGE 474 OF THE RECORDS OF THE 0 HNSON
GO u NTY, IOWA RECORDERS OFFICE, PART OF SOUTHWEST QUARTER 0 F THE SO UTHEAST
STAR �R OF SECTION GO TOWNSHIP 80 NORTH, RANGE 6 WEST USING SOUTH 0 F INTERSTATE PC
PART � SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER SECTIO N 3� TOWNSHIP 80 N FELL
�Ar� 6 WEST, LYING SOUTH 0 F INTERSTATE 80, PART 0 F SOUTHEAST QUARTER OF THE
C w E T QUARTER OF THE SO UTHWEST QUARTER SECTION 3A TOWNSHIP 80 NO OFF RANGE
6 WEST LOS G SO UTH OF INTERSTATE FIT AND ALL 0 CLUB PARCEL DESSR RED IN WAR PARTY DEED
AGREE 681 OF THE RECORDS OF THE JOHNSON COU NTY, IOWA RECORDERS OFFICE ALL LOCATED IN
THE CITY OF IOWA CITY JOHNSON COUNTY, IOWA
CA I D PARCEL CONTAINS 50 15 ACRES , AND IS NUEAECT TO EASEMENTS AND RESTRICTIONS
ORRECOND
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