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CCEDC 10.27.2021AgendaIf you need disability-related accommodations in order to participate in this program/event, please contact Wendy Ford, Economic Development Coordinator at 319-356-5248 or wendy-ford@iowa-city.org. We ask that contact us early to allow sufficient time to meet your access needs. Agenda City Council Economic Development Committee Wednesday, October 27, 2021 4:00 pm Emma Harvat Hall City Hall 1.Call to Order 2. Consider approval of minutes from the December 9, 2020 Economic DevelopmentCommittee meeting 3. Consider FY23 budget recommendation to full City Council CommunityDevelopment Assistance for Entrefest 4. Consider FY23 budget recommendation to full City Council Community Development Assistance for the Entrepreneurial Development Center 5. Consider FY23 budget recommendation to full City Council for CommunityDevelopment Assistance funding for arts organizations: Englert Theater andMission Creek, Film Scene, City of Literature, Riverside Theatre 6.Staff report 7.Committee time 8. Other business 9. Adjournment EDC 10.27.2021 packet page 1 EDC minutes December 9, 2020 - p.1 PRELIMINARY MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE DECEMBER 9, 2020 VIA ZOOM PLATFORM, 3:30 P.M. Members Present: Susan Mims, John Thomas Members Absent: Mazahir Salih Staff Present: Wendy Ford, Geoff Fruin, Eleanor Dilkes, Sara Hektoen, Tracy Hightshoe, Erika Kubly, Rachel Kilburg Others Present: Brandon Smith, Michael Sather (Tailwinds Group); Kevin Monson, Nathan Griffin (Neumann Monson Architects); Andre Perry (Englert); Andrew Sherburne (FilmScene); Adam Knight and Kate Markham (Riverside Theatre); Curt Nelson (Entrepreneurial Development Center); Isaac Hamlet, Zachary Smith (Press Citizen); Lee Hermiston (Gazette); Nancy Bird (ICDD); Paul Brennan, Brad Oglesby RECOMMENDATIONS TO COUNCIL: Thomas moved to recommend the Tailwinds Group project to the full City Council. Mims seconded the motion. Motion carried 2-0, Salih absent. Thomas moved to recommend support to the full City Council for the funding as presented to the above four organizations. Mims seconded the motion. Motion carried 2-0, Salih absent. CALL MEETING TO ORDER: The meeting was called to order at 3:32 P.M. Chairperson Mims welcomed everyone and asked that those present on the call introduce themselves as they present. CONSIDER APPROVAL OF MINUTES FROM THE JULY 13, 2020, ECONOMIC DEVELOPMENT COMMITTEE MEETING: Minutes from the July meeting were reviewed. Thomas moved to approve the minutes from the January 27, 2020, meeting as presented. Mims seconded the motion. The motion carried 2-0, Salih absent. DISCUSS TAILWINDS PROPOSAL FOR HISTORIC PRESERVATION AND REDEVELOPMENT PROJECT ON SOUTH SIDE OF 100 BLOCK OF EAST COLLEGE STREET: Ford began the discussion by giving a brief history of the Tailwinds proposal. She noted that since the last meeting, the developer has refined the numbers, a financial analysis has been completed, and the developers are requesting TIF financing for their project. The proposal is for a $54 million project, for which the developers are seeking $12.25 million in TIF rebates. Ford noted five distinct public benefits EDC 10.27.2021 packet page 2 EDC minutes December 9, 2020 - p.2 PRELIMINARY of the proposed project. Starting with historic preservation, the project would also help in activating long-vacant storefronts, provide a new home for Riverside Theatre, build a LEED-Gold certified apartment building, and contribute more than $1.8 million to the City’s affordable housing fund. The developer also proposes designating the Dooley and Crescent blocks as local historic landmarks and making renovations and repairs to existing buildings. Ford noted that with the historic landmark designations in place, those buildings cannot be demolished in the future. Regarding the former Union Bar space, Ford noted that this commercial space would be reduced by more than 50% with the elimination of the rear half of the building and would then be divided into smaller commercial spaces. The former Fieldhouse Bar would also have about 50% of its rear commercial area eliminated. A restaurant and a brewery are two businesses showing interest in the renovated spaces. A new home for Riverside Theatre is being planned for the third and part of the second floor of the former Union Bar space. Another key component to this project would be a 102-unit apartment building behind the existing buildings, along the alley. This would be a LEED-Gold certified building, with nine floors of apartments, over two floors of parking. Ford noted the building height would match that of the Graduate Hotel to the east. Regarding the affordable housing component of the project, Ford stated that Tailwind is seeks to pay the fee-in-lieu, which would amount to $1.8 million. Ford reminded Members of the initial proposal presented in August 2019. Subsequently, in July 2020, an updated version of the project was presenting prompting new questions by Members. Since that time, staff has worked with the developers to address these questions while the National Development Council, NDC, has conducted a financial gap analysis of the project. Following the gap analysis, Staff negotiated with the developers for a maximum of $12.25 million in TIF rebates over 15 years, which would service a $9 million financial gap loan developers would need to get the project built. Brandon Smith with the Tailwinds Group then addressed Members. He spoke to some of the questions raised at previous meetings, starting with the question of LEED certification and what level should be achieved. Members had asked about cost between the levels of LEED and whether cost savings could be found here. Initially, Tailwind proposed LEED Silver for the new building, then LEED Platinum in July. While LEED Platinum is highly desirable, the cost savings by going with LEED Gold were substantial. Staff fielded questions from Members regarding how the TIF rebates would be handled, and also what the reasonable rate of return would be. Fruin noted that the negotiated IRR, an indicator of return on investment, would be 6.09%. Mims then spoke to her support of the project, noting that the benefits of this project are quite numerous, with protection of the historic buildings being among them. She also noted her excitement that Riverside Theatre will be an integral part of this project. Thomas agreed that he too would be supporting this project. He noted the complexities involved in making a project of this size and scope work. Thomas moved to recommend the Tailwinds Group project to the full City Council. Mims seconded the motion. Motion carried 2-0, Salih absent. ANNUAL SUPPORT FOR ARTS ORGANIZATIONS: Ford noted that representatives from three non-profit arts organizations and an entrepreneurial development organization would be speaking today. Ford stated that these organizations’ funding requests are staying the same, with Englert Theater at $50,000 for operations, and $20,000 for Mission Creek and other festivals. Film Scene is requesting $25,000, along with $7,000 for a new film festival this coming year. Riverside Theater’s request is again $20,000. The Entrepreneurial Development Center, or EDC, is requesting $25,000. EDC 10.27.2021 packet page 3 EDC minutes December 9, 2020 - p.3 PRELIMINARY Andre Perry with the Englert Theater was the first to speak. He noted the impact that COVID-19 has had on their operations, essentially cutting their budget in half from $1.8 million to about $900,000. Cuts have been made to staffing, as operations have shrunk during the pandemic. However, with wide support, they have been able to stay afloat. Looking at the goals of the Englert, Perry noted that preserving the Englert itself remains top on the list, along with serving the community, especially during tough times such as these. With live performances canceled during the pandemic, the Englert will continue to offer digital programming in the coming year. Andrew Sherburne, with FilmScene spoke next. He said they had been so excited to have opened the second location of FilmScene open last year, growing attendance from 3,700 per month to nearly 7,000 – almost doubling in the first six months. Sherburne then noted many of the programming efforts that FilmScene has been able to undertake in the past year. FilmScene is planning to extend their virtual offerings, like the Englert has. Adam Knight with Riverside Theatre spoke next. He noted the expected increase in stability of Riverside as they plan for their new home on the ped mall. He expressed what they hope to accomplish with this project, noting that with the pandemic they have had to scrutinize their operations. The popular free Shakespeare program is expected to be a six-week project in the summer of 2021, versus two-weeks in length in 2018. Kate Markham with Riverside added that they are working very hard at expanding their outreach efforts and community partnerships. Lastly, Curt Nelson with the Entrepreneurial Development Center spoke to Members. He spoke to the history of the EDC and the various businesses they have been able to help over the years. To date, they have worked with approximately 111 businesses in Iowa City alone. He gave Members several examples of businesses that the EDC has worked with locally. He also spoke to the pandemic and its impacts to businesses throughout the area. Thomas moved to recommend support to the full City Council for the funding as presented to the above four organizations. Mims seconded the motion. Motion carried 2-0, Salih absent. UPDATE ON SMALL BUSINESS RESOURCE PROGRAM: Kubly spoke to Members regarding the City’s CDBG economic development funds. She stated that after having difficulty getting qualified applicants, some revisions were made to the program. So far nine applications have been received for this revised funding program, according to Kubly. She gave a brief review of the status of those applicants. UPDATE ON THE BUILDING CHANGE PROGRAM: Hightshoe addressed Members on the building change program. She gave them a brief history of its accomplishments, noting that they are currently at the end of this program, with no new funds expected. STAFF REPORT: Hightshoe spoke briefly to the COVID assistance program staff recently launched. This program will provide up to $15,000 in grants for businesses impacted by COVID-19. Ford then spoke to the outreach that has started in the three urban renewal areas offering TIF funded energy efficiency grants. EDC 10.27.2021 packet page 4 EDC minutes December 9, 2020 - p.4 PRELIMINARY COMMITTEE TIME: None. OTHER BUSINESS: None. ADJOURNMENT: Thomas moved to adjourn the meeting at 4:57 P.M. Mims seconded the motion. Motion carried 2-0, Salih absent. EDC 10.27.2021 packet page 5 EDC minutes December 9, 2020 - p.5 PRELIMINARY Council Economic Development Committee ATTENDANCE RECORD 2020 NAME TERM EXP. 01/27/20 07/13/20 12/09/20 Xz Susan Mims 01/02/22 X X X Mazahir Salih 01/02/22 X X O/E John Thomas 01/02/22 X X X Key: X = Present O = Absent O/E = Absent/Excused EDC 10.27.2021 packet page 6 Date: October 21, 2021 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Agenda item #3 – Consider budget recommendation for sponsorship of Entrefest Introduction Organizers of Entrefest, Iowa's business and innovation conference, have requested the City support the next conference scheduled for downtown Iowa City in June 2022 with a $10,000 sponsorship. This sponsorship is intended to be one of many conference sponsorships in a mix that include levels starting at $2,500 going up to $20,000. Jill Wilkins, COO of NewBoCo, has noted that last year’s conference in Cedar Rapids had six $10,000 sponsors, one at $7,500 and five at $5,000. History Entrefest was started in 2008 by a coalition of individuals and organizations including the University of Northern Iowa. It is designed to offer entrepreneurs, innovators and businesses new ideas, new contacts and the energy that comes from gathering with like-minded individuals and organizations. Entrefest has been hosted in Cedar Falls, Cedar Rapids and Iowa City, where in 2014 and 2015, attendance grew to nearly 1,000. With the leadership for Entrefest now coming from NewBoCo, in Cedar Rapids, there is renewed desire to move the conference around again. The conference scheduled for June 2022 in Iowa City will be among the largest conferences for entrepreneurs in Iowa and will also draw interest from neighboring states. A sponsorship at the $10,000 level would afford the City several tangible benefits, such as a prominent presence in conference materials, signage, and exhibit booth display areas at conference general sessions. Additionally, the sponsorship would include 10 complementary passes to conference activities, which we would use to make connections between the entrepreneurial community and City government. Support of this event is aligned with the City Council’s Strategic Planning priority to promote a strong and resilient local economy via strategies that include building stronger relations with business owners throughout the community and developing programs aimed to enhance small business development and retention. Recommendation Staff recommends approving the request for budgeting a $10,000 sponsorship of the June 2022 Entrefest conference in downtown Iowa City from the Community Development Assistance line. EDC 10.27.2021 packet page 7 EDC 10.27.2021 packet page 8 EDC 10.27.2021 packet page 9 EDC 10.27.2021 packet page 10 EDC 10.27.2021 packet page 11 EDC 10.27.2021 packet page 12 EDC 10.27.2021 packet page 13 EDC 10.27.2021 packet page 14 Date: October 21, 2021 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Agenda item #4 Introduction The Entrepreneurial Development Center, Inc. more familiarly known as EDC, Inc. was incorporated in 2003 with a mission to improve the economic vitality of the region through the creation and growth of high-impact, scalable entrepreneurial businesses. While based in Cedar Rapids, they serve businesses on both ends of the I-380 corridor and have success stories to tell of Iowa City businesses they have helped. The EDC is requesting continued funding in the amount of $25,000 for FY22. History of City funding Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 Entrepreneurial Development Ctr. 6,250 25,000 25,000 25,000 25,000 25,000 25,000 25,000 EDC, Inc.’s work focuses on enabling high potential businesses to grow and thrive. Curt Nelson, President and CEO, has developed a “recipe for business success” which EDC uses in guiding business growth. The recipe calls for six ingredients including marketing, development, sales, operations, information technology and finance. EDC’s approach is to ensure that clients have the right amount of each. They gain an understanding of the client’s needs and provide expertise by building strategic networks for their clients. They are also well connected to financial resources for their clients. Iowa City has spent the last several years building a community that fosters entrepreneurs. We assisted in getting the CoLab started and have followed that with strong support of MERGE. Now we are working with another group to provide incubation services to BIPOC-owned businesses. These operations have proven critical to early stage support to some very successful, highly scalable companies. Fostering a culture of entrepreneurship takes a lot of effort from a lot of organizations -- ICAD, the UI Small Business Development Center, the City, the Business Partnership, regional collaborations and organizations such as EDC, Inc. to provide the support necessary to a healthy and growing entrepreneurial community. Recommendation Staff recommends budgeting the requested amount for FY23 from the Community Development Assistance line. EDC 10.27.2021 packet page 15 EDC Inc. - 230 2nd Street SE, Cedar Rapids, IA 52401 - www.edcinc.org - 319-369-4955 October 27, 2021 City Council Economic Development Committee c/o Wendy Ford City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Dear Wendy & Committee, For the past 18 years, EDC has been actively engaged in the creation and growth of high-impact businesses in the Iowa City – Cedar Rapids Corridor. Over this time the 1,200+ businesses supported by EDC have created over $3.8 billion in economic development impact. In the past year, EDC invested time directly in Iowa City working with the companies listed below. Exciting for Iowa City in the past year was the expansion of Viewpoint Molecular Targeting office space on Mormon Trek Blvd. And, the acquisition of Pear Deck created a significant amount of local investor and founder wealth. I will speak to both of these when I am with you on October 27th. Company Raised Capital Created Jobs in 2021 Pear Deck No Yes (20+) Oasis (Hummus) No No (pandemic related) TLA MD No No (pandemic related) Graze Analytics No No Viewpoint Molecular Targeting Yes Yes (6+) EDC’s engagement in Iowa City and the related area has been significant and consistent year after year. EDC is an active partner of the University of Iowa, working on the commercialization of University technology development. EDC also works with JPEC and the Venture School toward this same goal. EDC is an active partner of ICAD, helping with ED recruitment activities when applicable. During the pandemic, EDC engaged with ICAD to help specific businesses most impacted. The funds needed to support EDC operations come from over 120 public and private supporters. Our largest public supporters include the City of Cedar Rapids ($75,000 / year) and the State of Iowa ($100,000 / year). The Cities of Coralville ($20,000), Hiawatha ($12,000), and North Liberty ($10,000) also provide annual support. A majority of EDC’s funding comes from supporters outside of Johnson County so it is very important to the growing number of entrepreneurs in Iowa City / Johnson County that EDC maintain / grow the amount of support provided. To that end, EDC is requesting continued support from the City of Iowa City in the same amount ($25,000) for fiscal year 2023. Thank you very much for your continued support. Sincerely, Curt Nelson EDC 10.27.2021 packet page 16 Date: October 20, 2021 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Agenda item #5 Annual updates and request for continued funding from Englert Theater, Film Scene, and Riverside Theatre and the UNESCO City of Literature Introduction The City has provided financial support for several organizations over the years that align with stated Strategic Planning Priorities. Each year, they seek your recommendation to City Council to be included in the upcoming (FY23) budget under the Community Development Assistance line. Our arts community has played a major role in advancing social justice, racial equity, and human rights with events programming throughout the year. We regularly invite the leadership of these organizations to provide an update on their operations and offer information supporting a request for continued financing. Following this memo in your packet, you will find letters of request and additional information from each of the organizations, who request the same amount of funding as approved last year: • Englert operations $50,000; signature festivals (Mission Creek) $20,000 • Film Scene $25,000 and $7,000 for the new Refocus Film festival if it can be held • Riverside Theatre $20,000 and • UNESCO City of Literature $60,000 10 years of funding history Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Englert Theater & Signature festivals 50,000 9,000 50,000 9,000 50,000 12,500 70,000 12,500 70,000 20,000 50,000 20,000 50,000 20,000 50,000 20,000 50,000 20,000 50,000 20,000 Film Scene & ReFocus Film Festival 35,000 25,000 15,000 25,000 25,000 25,000 25,000 7,000 25,000 7,000 Riverside Theatre 30,000 25,000 20,000 $0 16,500 15,000 20,000 20,000 20,000 20,000 UNESCO City of Literature 50,000 10,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Englert Theater is requesting $50,000 for the operation of the theater and $20,000 for its signature festivals including Mission Creek Festival and Witching Hour for FY23. The City has supported the theater since it was purchased and renovated in 2004, saving Iowa City’s last historic theater. In 2009, the City began providing annual financial assistance in the amount of $50,000. For two years, the City provided an additional $20,000 in matching grants for capital improvements. EDC 10.27.2021 packet page 17 October 20, 2021 Page 2 This past year, the timing of the pandemic and closing of the theater was such that long-planned historic renovations were able to be completed without interruption of programming. Construction and rehab included roof repair, interior brick work, façade and window preservation, second floor renovations and the full restoration of the iconic Englert marquee. The City’s commitment to the capital campaign for this project was $1 million and features the restoration of the marquee, completed in December 2020. Festivals operated by the Englert have gained national attention, enhancing Iowa City’s position as a well-known creative hub of music, literary, and culinary arts. Both Mission Creek Festival and the Witching Hour have hosted thousands of people in multiple locations in and around downtown, featuring hundreds of performers, many of whom were Iowa-based. Mission Creek provides a venue for Iowa artists to be exposed to national attention and for nationally recognized artists to gain an Iowa audience while the Witching Hour, a newer festival, is dedicated to the creative process, exploration of the unknown and the presentation of new creative works. Between the two, the resulting coverage increases Iowa’s presence in the national scene and Iowa City as the cultural center of the upper Midwest. For the festivals, the Englert is requesting the same amount, $20,000, as recent years. Film Scene, Iowa City’s independent downtown movie theater is requesting $25,000 in funding for FY23. Film Scene has become a mainstay in the arts and culture scene in Iowa City. When corporate theaters closed years ago, an entertainment void remained at a time when alcohol consumption downtown had become problematic. Film Scene opened in a historic building that previously been home to one of Iowa City’s largest college bars. Film Scene is planning to emerge from the pandemic with a new film festival, ReFocus, when it is safe to hold film festivals in person. Film Scene requests that the $7,000 approved in the last two years (but has not been spent yet due to covid) be budgeted for FY23 in the event the festival can be held in person in 2023. Riverside Theatre (RT) is also requesting a continuation of last year’s funding amount of $20,000. The theater has been a staple of the cultural scene in Iowa City for more than 30 years. At virtually the same time a lease renewal was ruled out at the Gilbert St. location, the Tailwind Group presented an opportunity to become an anchor in a historic preservation/redevelopment project on College Street and plans began to take shape for a new home. A brand-new RT is under construction today. For decades, the theater has offered year-round programming and a run of Shakespeare in the Park on the Festival Stage in Lower City Park since 2000. For several years now, Shakespeare in the Park has been presented to the community at no charge. The City has a long history of helping to ensure this cultural asset remains strong. RT will continue to offer Shakespeare outdoors on the Festival Stage for free. The free outdoor event helps to build the theater audience and awareness of the theatre’s now full year of indoor productions. The public benefit of offering free theater on a public stage in lower City Park benefits parts of the community where theater is in accessible while doubling as a strategy to benefit RT’s financial stability. EDC 10.27.2021 packet page 18 October 20, 2021 Page 3 UNESCO City of Literature the organization whose mission it is to celebrate and support literature on a local, regional, national and international level, connecting readers and writers through the power of story since 2008 is requesting $60,000. The funding provides $50,000 for City of Literature operations and $10,000 for the Iowa City Book Festival. The City of Literature presents The Iowa City Book Festival in October and the One Book Two Book Children’s Literature Festival in February, and several other significant programs every year. These two main festivals moved online during the pandemic, while MusicIC, and it’s focus on the intersection between music and literature, was abbreviated from larger concert performances to solos and accompaniments for story time. The attached report highlights the activities of the City of Literature’s past year with insight into how the pandemic changed the way the operation served the community. Recommendation Staff recommends budgeting the requested amounts for FY23 from the Community Development Assistance line. EDC 10.27.2021 packet page 19 October 27, 2021 Economic Development Committee: Thank you for your ongoing support of The Englert Theatre. The impact of the funding can be felt in the cultural experiences we produce, the work we're doing to support the local arts economy, and our commitment to positive community growth through the arts. Consistent with historical support, we request funding in the amount of $70,000 (consisting of $50,000 general operational support and $20,000 festival support) for consideration in City of Iowa City budget for fiscal year 2023. Having the financial and philosophical support of the City will be crucial to our continued success as we reopen our doors and bring the community back downtown to celebrate arts and culture. Although we continue to navigate the financial and cultural effects of the ongoing pandemic, we're excited to welcome the public back into our historic space. It goes without saying that the last two years have been difficult financially. However, we utilized the time that we were closed to ensure that our organization was prepared for the next stage of innovation, operational soundness, and growth. With the City's partnership, we're confident that the future of The Englert and the Iowa City Arts is bright. Enclosed, you'll find an our newly revised operational tenets, impact report, and our financial update. We appreciate your consideration of our funding request. With gratitude, �� John Schickedanz Executive Director ENGLERT.ORG I 221 E. WASHINGTON ST. 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