HomeMy WebLinkAboutCCEDC Agenda 2-4-16.pdfAgenda
City Council
Economic Development Committee
Thursday, February 4, 2016
12:00 noon
City Manager’s Conference Room
City Hall
1.Call to Order
2.Organization of Committee
3. Consider approval of minutes from the December 15, 2015 Economic Development
Committee meeting
4. Economic Development Committee Orientation and Background
5. Consider Annual Report and Request for funding from City of Literature
(John Kenyon, Executive Director)
6. Consider Annual Report and Request for funding from Englert Theater
(Andre Perry, Executive Director)
7. Consider Annual Report and Request for funding from Mission Creek
(Andre Perry, Co-founder and producer)
8.Staff report
9.Committee time
10. Other business
11. Adjournment
1
MINUTES PRELIMINARY CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
DECEMBER 1, 2015 CITY MANAGER’S CONFERENCE ROOM, CITY HALL, 12:00 P.M.
Members Present: Susan Mims, Michelle Payne, Matt Hayek Staff Present: Tom Markus, Eleanor Dilkes, Wendy Ford, Tracy Hightshoe
Others Present: Andy Davis (Press-Citizen), Jennifer Holan (Riverside Theater), Sam
Osheroff (Riverside Theater), Matt Steele (Little Village Magazine) and a University of Iowa student.
RECOMMENDATIONS TO COUNCIL:
Payne moved to recommend the request to the full City Council for funding to Riverside Theater in the amount of $16,500 for FY17.
Hayek seconded the motion. The motion carried 3-0.
Hayek moved to recommend the request to the full City Council for financial assistance for Little Village's move to the Riverfront Crossings area, in the amount of $7,908. Payne seconded the motion.
The motion carried 3-0.
Payne moved to approve the request for funding Creative Corridor at $10,000 for FY16,
and for intent to budget for FYs 17 and 18, with an annual review each year. Hayek seconded the motion. The motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Mims at 12:04 P.M. She then asked those present to please introduce themselves.
CONSIDER APPROVAL OF MINUTES:
Payne moved to approve the minutes as presented. Hayek seconded the motion.
The motion carried 3-0.
CONSIDER REQUEST FOR FUNDING RIVERSIDE THEATER; $16,500:
Wendy Ford addressed Members regarding this request. She introduced Jennifer Holan and
Sam Osheroff, noting that they submitted a request several months ago to the City, asking for financial assistance. Ford referred to the packet and the table illustrating how the requested
$16,500 will be spent. Ford also reviewed the rich history of the theater and the artists, both
inside and outside of Iowa, who come to Iowa City each year to work on productions. Ford referred to prior years of City assistance. From 2013 to 2015, funding was geared towards
helping Riverside recover from the floods of 2008, and the loss of the Shakespeare Festival in City Park due to flooding.
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Ford referred to the Comprehensive Plan which notes that Riverside Theater as a key part of our “small city with big city arts and culture” and one of the organizations that adds to the vitality of
the city. The comp plan states a goal of recognizing the economic development potential of Arts
and Culture for Iowa City with specific strategies of increasing visibility and awareness of arts and culture programs. She also said that ensuring that Riverside Theatre continue as a viable
arts business in Iowa City is also consistent with the Central District Plan which calls for preserving and promoting the unique aspects of and supporting the economic vitality of the Northside Marketplace. Finally, she noted that the City Council’s 2014-15 Strategic Planning
Priorities include three goals that relate directly to supporting Riverside Theatre: striving for 1) healthy neighborhoods, 2) a strong urban core, and 3) engaging in strategic economic development activities. Because this request for $16,500 financial assistance is aligned with the
Comprehensive Plan, the Central District Plan and the City Council Strategic Planning Priorities, Ford said staff is recommending the full funding request be considered by Council in the FY17
economic development budget.
Ford then invited both Holan and Osheroff to speak. Jennifer Holan stated that the request boils
down to the need for change – the change that comes with new leadership. Osheroff spoke to
some of these changes and what has already taken place. He noted that they desire to enhance the patron experience and build partnerships within the City with other businesses, art
associations, and even the University of Iowa. Payne asked what is going to happen this next summer and Holan stated that they want to be back in the park this summer and that they are aware their patrons have missed the shows in City Park. She added that they have been in
touch with the Park District administration and have been addressing some of the issues there. Markus asked Holan and Osheroff who owns the building where Riverside is housed and if they have a lease on it. Holan stated that it is owned by the Gilpin family and that they have a lease
through 2020. Hayek then asked about the request itself, noting that it is for one year only. Markus stated that staff reviewed this with the thinking that although the previous request was for a three-year period, with the current transition of leadership staff believed they should help them
get moving in the right direction. This type of request should therefore be looked at on an annual basis. Mims welcomed Holan and Osheroff in their new leadership roles, stating that Riverside
Theater is one of the city's renowned arts venues – one that the City is happy to partner with in
this manner. Hayek stated that he is in full support of this request and he spoke briefly to the positive aspects of Riverside.
Payne moved to recommend the request to the full City Council for funding to Riverside Theater in the amount of $16,500 for FY17.
Hayek seconded the motion.
The motion carried 3-0.
CONSIDER A REQUEST FOR FINANCIAL ASSISTANCE FOR LITTLE VILLAGE MOVE TO
RIVERFRONT CROSSINGS OFFICE; $7,908:
Ford introduced the next agenda item, a request for financial assistance from Little Village
magazine. She stated that Matt Steele, owner of Little Village, has been trying to find ways to grow the business and recently found office space in the same building as Her Soup Kitchen, just north of the railroad depot on Dubuque Street. The building, recently purchased by Steve
(former City of Iowa City employee) and Suzanne Long is in need of updating. The building owners and business owner desire to help maintain the character of this particular neighborhood
by ensuring the old building is maintained and by creating appealing office space. The plan is to
improve the energy efficiency of the building and the aesthetics. Ford reviewed planned upgrades and noted that there is also a plan to offer an artist in residence space in the building.
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Of the expected $24,000 in expenses to achieve this plan, the owners are requesting funding of $7,908 (1/3) from the City.
Ford noted that the Comprehensive Plan and the Riverfront Crossings District Plans include several goals that can be met, in part, supporting this request. She added that Little Village, an
employer of people in the creative fields of editing and writing and design, is also a great resource for visitors to the city. She said staff is recommending the City fund one-third of the $24,000 in costs to upgrade this building. Matt Steele noted that he greatly appreciates the
Council's time and consideration in this matter. Payne asked about the HVAC systems and if owners are seeking a MidAmerican rebate for the HVAC system. Steele stated that he was not aware of this, and Payne further explained what MidAmerican offers, stating it could help reduce
costs. She also asked about the LED lighting, suggesting they may also be able to get a rebate for some of those expenses. Markus noted that the Steve Long, the new owner of the building is
the same Steve Long who used to work for the City. Markus then asked Steele how long a lease
he will have on this new location. He responded that it is a five-year lease. Showing his support, Hayek stated that he believes Little Village provides an element of investigative journalism and
coverage on local issues that is often lacking with the broader media. Payne then asked a
question about the photos shown regarding facade upgrades. She questioned if this would be covered under the City's facade program or not. Ford stated that it would qualify but that that
program is out of funds at this time.
Hayek moved to recommend the request to the full City Council for financial assistance
for Little Village's move to the Riverfront Crossings area, in the amount of $7,908. Payne seconded the motion.
The motion carried 3-0.
CONSIDER A REQUEST FOR FUNDING CREATIVE CORRIDOR REQUEST; $10,000:
Ford noted the letter accompanying this request, stating that this request was made back in April to the City to participate in helping to fund the 'Creative Corridor' branding efforts. She stated that there is no one representative present today regarding this request, and that she would give
Members some background on this branding effort. She noted the Creative Corridor branding is an effort that began a few years ago, with a goal to help the Iowa City area and the corridor
within the national marketplace. These efforts are targeted to employers, and to people who
might move to the area for employment. Ford noted who some of the key players are in this effort – the University of Iowa and the City of Cedar Rapids along with ten other municipalities
and economic development organizations in the region. Markus added that both ICAD and the
Cedar Rapids Metro Economic Alliance are currently attempting to partner on tenant recruitment and marketing, and he believes it is important for Members to remember that when corporations
are looking at potential relocation, they are looking at places with larger populations. It is the wider 'corridor' aspect provides that greater population and laborshed than the City would have on its own. He also stated the growing competition with Des Moines and the 'corridor' they have
established there with Ames and Iowa State University. Markus stated that he would recommend
a funding commitment subject to an annual review, even if the Council agrees to set aside budgetary dollars for this for a three-year period.
Mims noted that this effort has been going on now for several years, and that at first there were questions about the actual benefits from this initiative. She stated that with the staff
recommendation, she is assuming that they are seeing positive results from this. Payne asked for clarification on the timing. Markus reiterated that the request is for a three-year period,
starting with the current year’s (FY16) amount. Hayek also asked how the funds are spent.
Markus responded that with the Corridor Branding efforts, marketing is the main expense.
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Hayek added that he also believes there should be a Creative Corridor report to the committee after this funding cycle, so that they can better assess the effectiveness of this initiative.
Payne moved to approve the request for funding Creative Corridor at $10,000 for FY16,
and for intent to budget for FYs 17 and 18, with an annual review each year.
Hayek seconded the motion. The motion carried 3-0.
STAFF UPDATES:
Ford asked Hightshoe to give Members an update on the Building Change. She explained the
projects and shared pictures with the Members. The discussion continued, with Hightshoe explaining that the goal of these improvements is to help improve the downtown experience. So
far, the Building Change grant program has leveraged $961,000 of investment in downtown, with
the City’s matching grants totaling $320,000. Hightshoe also spoke to the loan program. Mims asked if there is a way to put some of this information out on Channel 4, or other ways to get the
information out to the public. Staff will look into this. Hightshoe also spoke briefly to the CDBG
program and how they are out of funds currently.
Ford then thanked the Members for attending today's meeting, noting that staff had hoped to
have a meeting with the new owners of the Fieldhouse building but that it did not materialize as hoped. She also added some other projects on the horizon – Moss Ridge and the potential new
owners out there, and also the Unitarian Church and the City's north parking lot project. COMMITTEE TIME:
Mims stated that she is going to miss Payne and Hayek on this committee, should she be able to stay on it. She added that both have shown their due diligence to economic development issues
within the city. She thanked them for their time on the committee. Payne stated that she has
enjoyed her time on the committee, and Hayek agreed, stating that he has been on it since he began Council. He thanked staff, as well, for their work over the years.
OTHER BUSINESS:
None. ADJOURNMENT:
Payne moved to adjourn the meeting at 1:00 P.M.
Hayek seconded the motion. Motion carried 3-0.
5
Council Economic Development Committee
ATTENDANCE RECORD 2014 - 2015
NAME
TERM EXP.
0
2
/
1
0
/
1
4
0
4
/
0
1
/
1
4
0
7
/
1
4
/
1
4
1
0
/
1
3
/
1
4
1
2
/
0
8
/
1
4
0
1
/
1
2
/
1
5
0
3
/
3
0
/
1
5
1
2
/
0
1
/
1
5
Michelle Payne 01/02/16 X X X X X X X X
Matt Hayek 01/02/16 X X X X X X X X
Susan Mims 01/02/16 X X X X X X X X
Key: X = Present
O = Absent O/E = Absent/Excused
6
2017
Projected
Funding Source Budget Actual/est still expect
448020 Community Development Assistance $411,800 $431,800 $472,846
Budget Amendment $20,000
Englert Civic Theatre**$70,000 $70,000 $70,000
Ia City/Coralville CVB (hotel/motel taxes)$241,762 $73,205 $264,346
Iowa City UNESCO City of Lit + book festival **$60,000 $60,000 $60,000
Riverside Theatre, 3rd of 3 yrs in '15 $0 $0 $16,500
Film Scene $25,000 $25,000 $15,000
Food Enterprise Center feasibility study $7,500 $6,000 $0
Entrefest $10,000
Mission Creek funding $12,500 $12,500 $12,500
FY Total $416,762 $246,705 $448,346
FY Budget Remainder $185,095
less remaining CVB funding $168,557
unspent $16,538
448070 Economic Development Assistance $100,000 $139,167 $100,000
CarryOver from year prior $10,000
transfer from 448010 line 9,167 $9,167
budget amendment request 20,000
MetaCommunications parking agreement $30,096 $30,096 $30,096
Telepharm Parking agreement $836 $1,200
ICDD Retail strategy by Kiku Obata, per City Manager $21,583 $0
Entrefest Sponsorship via Seed Here $10,000 $10,000
Ginsberg Sprinkler Assistance - bldg change type $32,000 $0
Creative Corridor Branding 10K in fy16,17,18 $10,000 $10,000
EDC Inc (CR) 3 yrs fy 15 6250, fy16 25K, fy17 25K $25,000 $25,000 $25,000
Little Village 7,908.00 $7,908
FY Total $55,096 $137,423 $66,296
FY Budget Remainder $44,904 $1,744
** Funding approved with Intent to budget 3 FY at annual report time
2016 YTD
7
Fiscal Year Recipient
ED Fund
448070
Comm Dev
448020
CDBG
Ec Dev
TIF up front
approved
TIF rebates
approved
TIF rebates
made
2016 City of Literature + bookfestival (begun in FY 09)60,000$
2016 Creative Corridor branding (yr 1 of 3)10,000$ 2016 Curb cuts downtown 50,000$ 2016 Englert Theater (begun in FY09)70,000$
2016 Entrepreneurial Development Ctr (yr 2 of 3)25,000$ 2016 Film Scene yr (3 of 3)25,000$ 2016 Food Enterprise Kit; portion of dev costs 6,000$
2016 ICDD retail strategy 50% cost share 21,583$ 2016 Meta Communcations (multiyear parking subsidy, yr 2)30,096$ 2016 Mission Creek Festival 12,500$
2016 Rehab cost share on Little Village office 7,908$ 2016 Sprinkler assistance (Ginsberg building rehab)32,000$ 2016 Telepharm (yr 1 of 2 parking subsidy)836$
TOTALS 127,423$ 173,500$ 50,000$ -$ -$ -$
2015 Bldg. Change: Airliner/Austin Burke 30,000$
2015 Bldg. Change: Cold Stone 17,100$ 2015 Bldg. Change: Martini's 23,995$ 2015 Bldg. Change: Sports Column 29,610$
2015 Bldg. Change: Yotopia 3,581$ 2015 City of Literature (begun in FY 09)60,000$ 2015 Englert Theater (begun in FY09)70,000$
2015 Entrefest sponsorship via Seed Here 10,000$ 2015 Entrepreneurial Development Ctr (partial yr 1 of 3)6,250$ 2015 Film Scene yr (2 of 3)35,000$
2015 Hilton Garden Inn (City-University URA)8,800,000$
2015 ICDD Targeted retail study cost share 10,000$ 2015 Iowa City Marketplace (Sycamore/First Av. URA)1,750,000$
2015 Meta Communications (multiyear parking subsidy, yr 1)30,096$
2015 Meta Communications buildout 58,000$ 2015 Mission Creek Festival 12,500$ 2015 Riverside Theater (yr 3 of 3)20,000$
2015 Riverside West Apartments (Riverside Dr. URA)1,809,875$ 2015 Sabin Townhomes (City-University URA)976,277$ 2015 Summer of the Arts ExpoCad software costshare 1,665$ 2015 The Chauncey (City-University URA)$14,187,250
TOTALS 128,511$ 185,000$ 104,286$ 14,187,250$ 13,336,152$ -$
2014 Alpla #2 (4/4)135,361$ 2014 Bldg. Change: Atlas 47,704$ 2014 Busy Coworking 4,327$
2014 City of Literature + book festival (begun in FY 09)60,000$ 2014 Creative Corridor (via Kirkwood)10,000$ 2014 Englert Theater (begun in FY09)50,000$
2014 Entrefest 2,500$ 2014 Mission Creek Festival (+$4,000 in Comm Event Prog also 5,000$ 2014 Riverside Theater (yr 2 of 3)25,000$
TOTALS 46,827$ 110,000$ 47,704$ -$ -$ 135,361$
2013 Alpla #2 (3/4)141,933$
2013 Bldg. Change: BoJames 40,000$ 2013 Bldg. Change: GrossSix Bldg.37,729$ 2013 Bldg. Change: Panchero's 19,857$
2013 Bldg. Change: Quintons 27,733$ 2013 Bldg. Change: Active Endeavors 16,000$ 2013 Bldg. Change: Chait 8,028$
2013 Bldg. Change: Yacht Club 5,699$
2013 City of Literature (begun in FY 09)50,000$ 2013 Englert Theater (begun in FY09)50,000$
8
Fiscal Year Recipient
ED Fund
448070
Comm Dev
448020
CDBG
Ec Dev
TIF up front
approved
TIF rebates
approved
TIF rebates
made
2013 Hodge's Towncrest Med Office Building 950,000$ 2013 Iowa City Book Festival 10,000$ 2013 Mission Creek Festival ($4,000 in Comm Event Prog also)5,000$
2013 Pepperwood Place (7/7)123,144$ 2013 Press Citizen (3/3)6,600$ 2013 Riverside Theater (yr 1 of 3)30,000$
TOTALS 222,913$ -$ 83,733$ 950,000$ -$ 265,077$
2012 Alpla #2 (2/4)126,834$
2012 Busy Coworking 14,624$ 2012 City of Literature (begun in FY 09)50,000$ 2012 Englert Theater (begun in FY09)50,000$
2012 IBlitz Boxing and Fitness, FY 12 35,000$ 2012 Mission Creek (no funding requests)2012 Molly’s Cupcakes, FY 12 35,000$
2012 Park @ 201, FY12 2,500,000$ 2012 Pepperwood Place (6/7)129,725$ 2012 Plamor Redevelopment (7/7)34,355$
2012 Prairie Lights 27,500$ 2012 Press Citizen (2/3)6,600$ 2012 Running Wild 1,539$
2012 Trumpet Blossom Café, FY 12 35,000$
TOTALS 150,263$ 105,000$ 2,500,000$ -$ 290,914$
2011 Alpla #2 (1/4)127,937$ 2011 Baroncini, FY 11 35,000$ 2011 City of Literature (begun in FY 09)50,000$
2011 Englert Theater (begun in FY09)50,000$ 2011 Mercer (final rebate)27,499$ 2011 Mission Creek ($3,362 Comm Event Prog; no ED req)
2011 Pepperwood Place (5/7)130,853$
2011 Plamor Redevelopment (6/7)34,654$ 2011 Press Citizen (1/3)6,600$ 2011 The Paper Nest, FY 11 11,000$
2011 United Natural Foods (final rebate)33,098$ 2011 Vito’s Building Rehab, FY11 250,000$
TOTALS 106,600$ 46,000$ 250,000$ -$ 354,041$
2010 Alpla #1 (5/5)98,342$ 2010 City of Literature (begun in FY 09)50,000$
2010 Corridor Drywall, FY 10 35,000$ 2010 Englert Theater (begun in FY09)50,000$ 2010 Mercer (6/7)95,491$
2010 Mission Creek ($5,000 Comm Event Prog; no ED req)2010 MGD Sycamore Mall (7/7)343,494$ 2010 Pepperwood Place (4/7)105,115$
2010 Plamor Redevelopment (5/7)34,409$ 2010 United Natural Foods (4/5)277,338$
TOTALS 100,000$ -$ 35,000$ -$ -$ 954,189$
9
Iowa City
Building Change Program
2013-2015
Downtown District
10
Cold Stone Building - Before
11
Cold Stone Building - After
12
BEFORE
AFTER
13
Sports Column - Before
14
Sports Column - After
15
Sports Column
Mural
Alley side
16
Atlas Restaurant - Before
17
Atlas Restaurant - After
18
Bo James Building
BEFORE AFTER
19
Active Endeavors
Before
20
Active Endeavors
Energy Efficiency Project
After
21
Pancheros - Before
22
Pancheros - After
23
Year Grant type Project Grant Total project costs
FY15 30% grant Cold Stone (completed)17,100.00$ 53,250.00$
FY15 30% grant Sports Column (underway)29,610.00$ 42,300.00$
FY15 30% grant Martinis (underway)23,995.00$ 75,450.00$
FY15 30% grant Yotopia (Completed)3,581.40$ 13,300.00$
FY15 30% grant Joe’s Place (withdrawn)Withdrawn
FY15 30% grant Airliner/Austin Burke (Winter/Spring 2016)30,000.00$ 100,000.00$
FY15 Subtotal 104,286.40$ 284,300.00$
FY14 40% grant Atlas - CDBG 47,704.00$ 119,260.00$
FY14 Subtotal 47,704.00$ 119,260.00$
FY13 40% grant Active Endeavors - CDBG 16,000.00$ 47,000.00$
FY13 40% grant Bo James - CDBG 40,000.00$ 107,000.00$
FY13 40% grant Quintons - CDBG 27,733.00$ 122,000.00$
FY13 30% grant GrossSix Building 37,729.00$ 125,763.33$
FY13 30% grant Pancheros 19,857.00$ 66,190.00$
FY13 30% grant Chait Galleries 8,028.00$ 26,760.00$
FY13 30% grant Yacht Club 5,699.44$ 18,998.13$
FY13 Subtotal 155,046.44$ 513,711.47$
All FY13 & 14 Projects Completed
Grant Total 307,036.84$ 917,271.47$
Building Change Grant Summary
24
Staff Contact:
Tracy Hightshoe, Neighborhood Services Coordinator
319.356.5244
tracy-hightshoe@iowa-city.org
2/17/2015 0% Int Forbidden Planet (Completed)3,604.00$ 7,208.00$
12/1/2014 0% Int Oasis Falafel (Completed)4,265.75$ 8,531.50$
11/28/2015 0% Int Marc Ginsberg (former Whitey's bldg) - Completed 30,000.00$ 106,517.00$
Approved 0% Int Bread Garden (Winter/Spring 2016)30,000.00$ 60,000.00$
Loan Total 67,869.75$ 182,256.50$
Combined Total 388,037.15$ 1,143,296.50$
Projects Approved/Completed as of 10/30/2015
Building Change Loan Summary (Partnership with Hills, MidWestOne & UICCU)
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Economic Development Policies
April, 2014
It shall be the policy of the City of Iowa City to use the City
Council Strategic Plan as the basis for its economic
development activities. Inherent in the plan is to attract
new development including residential, commercial and industrial uses to grow the tax base.
Further, the purpose of the plan is to retain the City's existing businesses and to encourage
business expansion. The City's Strategic Plan also supports organizations which help to
incubate, foster and grow new business operations by providing non-traditional collaborative
environments.
The expected result of these activities are: increased economic activity, more jobs, lower
unemployment, higher wages, greater property values, more tax revenues, more ownership and
entrepreneurial opportunities and revitalization of underutilized or blighted areas.
The City will consider the use of financial incentive programs including City, State and Federal
economic development funds, tax increment financing, public private partnerships and other
tools in order to achieve the expected results. It will be the policy of the City of Iowa City to endeavor to attract, recruit, retain, foster and
develop business that is new to our region or metropolitan statistical area (MSA) through the
use of incentives. The City will not actively recruit business from other jurisdictions within our
MSA unless a business is seeking to expand or a business is considering relocation outside the
state. Should businesses from jurisdictions within our MSA wish to locate in Iowa City we
will notify our neighboring jurisdiction of the interest. It will be the general practice of the City
of Iowa City to not provide economic incentives to businesses wishing to relocate from another
jurisdiction within our MSA unless a business is seeking to expand or considering a relocation
outside the state.
Projects requesting City financial assistance will be subject to a financial analysis which
determines if City financial assistance is appropriate. The analysis will examine all financing
sources for a project and the project costs, with scrutiny of the developer's return based largely
on developer equity and the maximization of project debt. This process allows consideration of
public financing that fills a gap and precludes undue enrichment to the developer. Special
consideration may be given to projects where the City is competing outside our MSA for
interstate commerce business.
The use of TIF rebates shall be considered highly preferable to the alternative, "cash upfront"
TIF.
Additionally, various evaluative tools including financial pro-formas, written evaluation reports,
established benefit metrics, and other performance tools may be used to evaluate the use of
economic incentives from the early stages of project development through the issuance of an
incentive and post incentive to make sure the objectives are met.
Developers who receive incentives will be expected to enter into development agreements
which delineate the terms, conditions, understandings, expected results and the performance
measures required for receiving incentives. For up front financing security is required.
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When incentive programs are used, they will be used to maximize the benefits to the City of
Iowa City. The dollar amount and time duration of the incentive shall be the smallest amount
necessary to achieve the maximum amount of city benefit as determined by the City.
In return for public financial assistance, developers will be expected to meet all or some of the
following minimum standards (not in priority order):
• Achieve high quality architectural and site design
• Offer energy efficiency and sustainability features beyond what is required through adopted building codes
• If a residential project, the contribution to an affordable housing fund or the provision of a certain percent of affordable housing units within the project
• Creation and retention of high quality jobs
• Developer equity (not including debt) to be equal to or greater than the public financing
requested
• The redevelopment of underutilized and/or blighted properties
• Projects achieving public purposes as detailed in the comprehensive plan, Urban Renewal
Area planning documents, and/or the City Council adopted Strategic Plan.
Despite the need for the program to be flexible and nimble in order to respond to the ever changing economic conditions of the marketplace, it will be the policy of the City to ensure that the process of using incentives is an open and transparent public process which instills confidence in the public's understanding of how economic development incentives are utilized.
See also companion documents:
• Understanding Iowa City's Due Diligence Process for Gap Financing with TIF
• Application for Gap Financing
• Key Elements in Financial Analysis
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Understanding gap analysis, p.1
Understanding Iowa City’s
due diligence process for
gap financing with TIF
What to expect, time-wise
To be eligible for Tax Increment Financing (TIF) a developer
must show a public benefit to the project and a financial gap to fill. The
City may provide gap financing to projects in designated areas meeting public policy goals. Projects must be structured so that private debt is maximized and developer equity yields a fair
return while not providing undue enrichment to the developer. City policy for financial participation in development projects is to be “the last dollars in,” if merited, and should not exceed developer equity.
After all other financing is secured, a developer may submit an application and the City will conduct its due diligence. This will involve a thorough analysis of all the project costs including
design, land acquisition, construction loan and permanent financing and projected revenues and expenses in the operation of the building over 20 years. Through this analysis, we are able to confirm a stabilized net operating income, the fair market value of the project and most
importantly, whether projected returns to the developer are reasonable. Once a project appears to show a reasonable financial gap which could be funded with City
assistance, City staff must 1) amend the appropriate urban renewal plan to include the project (if necessary) and 2) negotiate a development agreement that among other things, stipulates the
type of funding-- rebate or cash up front, a minimum assessment of the property to ensure that
the City is repaid in property taxes (if financing is cash up front and not rebated), and the details of the minimum improvements, etc.
Here is an estimated timeline for the required steps. It could move a bit faster, but this is a realistic scenario if everything falls into place.
If the developer:
Has a well-defined concept plan for design and financing of the project, and
has provided all the financial information in the application for gap financing,
then City can provide an initial analysis within two weeks.
If/when the financial analysis meets the City’s Economic Development standards, in that there is
a public benefit to the project and:
there is a financial gap, and
the City participation would be last dollars in, and
the developers would net a reasonable return (as determined by research conducted by our
consultant at the National Development Council (NDC)), then we can begin negotiating a development agreement. The development agreement can be drafted within 10 working days, once the developer and the City have agreed to the basic
terms.
When we have a draft development agreement to which all can agree:
1. We may simultaneously send the draft agreement and a staff recommendation to the Economic Development Committee (a subcommittee of the City Council). This requires at
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Understanding gap analysis, p.2
least a week’s time for scheduling the ED committee meeting and for staff to write a supporting document to send out with the meeting packet, and
2. We will start the process of amending the Urban Renewal Plan to include the specifics about
your project. This requires two City Council meetings, which can usually be accomplished in about six weeks, given the required time for meeting notices and packet assembly. The first
of the two meetings is for a “Resolution of Necessity” and the second, approximately a month later, is to adopt the amendment to the plan. 3. If a Development Agreement has been signed by all parties, prior to that 2nd City Council
meeting adopting the plan, then 4. A resolution to approve the Developers Agreement can also be on the same agenda – providing the Urban Renewal Plan amendment was approved earlier.
Cash up front TIF vs TIF Rebates = who bears the greatest risk?
Cash up front TIFs are politically and financially more difficult. For cash up front, we require, along with specific performance measures, that the developer agree to a minimum assessment
on the project property (and sometimes, in addition to the project property, a minimum
assessment on other property the developer owns within the district) for a certain period of years, to enable the City to pay itself back with the TIF increment generated from the project
(and if required, the additional developer-owned property in the area). The duration and dollar
amount determined for the minimum assessment includes the City (public’s) cost of financing the project until it is recaptured by the TIF revenues the project generates. This option is more
expensive and requires the City bear more risk than the other option – TIF rebates – which is
why it is more difficult, politically.
TIF rebates are still political, but they put most of the risk on the developer. They are simpler
because they only require that the taxes paid on a successful development be rebated back to the developer – with no financing costs and no risk to the public – with the exception of the
diversion of tax dollars to the TIF fund.
If the financial gap in a project could be covered by a TIF rebate as opposed to cash up front, it
is highly preferable. Tax rebates would begin about 18 months after taxes were paid in due to the lag time in property tax assessment year and revenue collections. It is important to note that while property taxes are paid at the Consolidated Property Tax Levy ($38.64 per $1000
valuation in FY14, and subject to change annually), the TIF levy, and rebates are calculated at a lower rate ($30.36 per $1000 for FY 14, and subject to change annually).
Definitions of key elements of the gap analysis process:
Gap
A financial gap is determined by the difference between all financing sources for a project and
the project costs, with a focus on the developer’s return, which is based in large part on
developer equity and the maximization (attraction) of project debt. This allows consideration of public financing that fills a gap yet does not provide for undue enrichment to the developer.
Market standards apply. Among other things, our gap analysis requires a firm project
development budget and operating pro forma supported by an independent market study. In the
end, a recommendation to Council will hinge on the reasonability of the developer’s return,
public benefit and availability of public financing. The gap is not simply the difference between how much a desirable project costs and the
financial resources to which a developer has access.
29
Understanding gap analysis, p.3
Equity
In the context of real estate development, equity is the difference between the current market value of the property and the amount the owner still owes on the remaining debt for it. It is the
amount that the owner would receive after selling a property and paying off all debt on it.
Capitalization Rate
A “cap rate” determines value of a project. It is the number of cents of project income (net operating income, NOI, or annual cash flow) required by an investor for every dollar of purchase
price paid. If a developer demanded a 7% cap rate, they would be willing to pay $1 for every 7¢ of NOI. If they demanded a 10% cap rate, they would be willing to pay $1 for every 10¢ of NOI. Higher cap rates mean there is higher risk indicated by the investor’s requirement for more of
the annual cash flow. It measures a return on all invested capital - debt and equity.
Market Cap Rate
Market Cap Rates are used to determine value by comparable transactions in the same market.
The same equation is used as for cap rates, but considers an entire market’s actual
transactions, as compared to the investor’s individual demands. Market cap rates in downtown Iowa City are in the 7% range; in an area that struggles economically, the market cap rate would
be expected to be slightly higher.
For in-depth information on the specifics of Iowa City’s gap analysis, please see the
companion document:
Key elements to the financial analysis
If you have any questions, please feel free to contact me at any time:
Wendy Ford Economic Development Coordinator wendy-ford@iowa-city.org
319-356-5248
30
Key elements to the
financial analysis
1) Know how we define Financing Gap.
Total Project Costs - Permanent Debt (maximized)
- Condo sales (commercial or residential) - Equity (sized to a market return) = Financing Gap
2) Evaluation of Project Cost Summary. Are costs reasonable?
Shows what it costs to get the building out of the ground.
Acquisition Cost
+ Renovation/Construction Cost
+ Fees = Project Cost
3) Evaluation of 20 year Operating Pro forma. Are operating assumptions reasonable?
Shows income stream from project, in particular, the stabilized NOI (net operating
income), which is critical in determining value for lenders and other investors. See below
how NOI is used to compute fair market value.
Gross Rent
+ Tenant Contributions = Gross Income
- Vacancy Contingency
= Effective Gross Rent (EGR) - Operating Expenses
= Net Operating Income (NOI)
- Debt Service #1 - Debt Service #2 = Cash Flow
4) How amount of Permanent Debt determined
Lender Underwriting Criteria applied to Projected NOI
• Loan to Value Ratio
• Debt Coverage Ratio
• Capitalization Rate
Interest Rate
Term (Maturity and Amortization) 5) Determination of Fair Market Value (FMV) of the Completed Project
FMV = Net Operating Income (NOI)
Capitalization Rate
31
Solving for Fair Market Value -- a property with an annual NOI of $20,000 where the desired cap rate is 10.5% puts the value at $190,500. The higher the cap rate, the lower the value.
Fair Market Value = NOI = $20,000 = $190,500 Cap Rate .105
Conversely, you can solve for a cap rate, by flipping the equation.
Cap. Rate = NOI FMV or Sale Price (sale price of comps if solving for market cap rate)
Cap rate expresses “for X flow of income (the NOI), at Y price, I expect this rate of return.”
6) Determination of maximum loan size by each of two methods, to ensure maximum loan
capacity is taken on by developers; also referred to as debt that can be attracted to the project.
a) Banks require a certain Debt Coverage Ratio (DCR). A common DCR is 1.2 to 1.35 which means for every $1 in debt, you must have $1.20 to $1.35 of net operating
income.
Loan Size By DCR = NOI
Debt Service (D/S)
To solve for a loan size based on DCR, use 2 step process:
1. D/S = NOI DCR
2. Loan = D/S “c” (terms of the loan: duration and interest rate)
b) Banks also require a certain Loan to Value (LTV) ratio, which measures a 2nd way out of the deal. Common local Loan to Value ratios are .75 - .8, which requires that for every
75 or 80 cents of loan, there must be at least $1 in fair market value. Loan Size By LTV = Loan Size
Fair Market Value (FMV)
To solve for a loan size based on LTV, use 2 step process:
1. FMV = NOI
Cap Rate required
2. Loan = FMV x LTV
7) Measuring reasonable returns to the developer is a critical part of the financial analysis process. Here are 2 common ways to measure returns.
32
Cash on Cash Return Cash Flow = Money out of a deal = CF (out)
Equity Invested Money in the deal EQ (in)
While cash on cash returns in the mid- to high-teens are desirable for privately owned
investments, this level of return is high. A 10% return would be considered more acceptable for City participation in financing a project. Reducing costs and/or increasing equity are the primary ways to effect change in this number. Cash on cash measures a
developer’s cash flow as a percent of their equity investment. Internal Rate of Return (IRR)
The all-important IRR measure combines all benefits, of owning real estate, after taxes,
and converts them to a single rate of return. IRR is the discount rate at which the
present value (PV) of a stream of income equals the equity investment. Specifically it measures the owner’s return on equity invested and provides City staff one of the
standards for evaluating whether a developer’s return is fair when City financing is
included among funding sources.
An IRR in the teens is great for privately owned investments but is too high to justify City
participation unless there are extenuating circumstances. A more modest 7% - 8% IRR might be considered.
Further explanation of IRR:
Perhaps a good way to illustrate IRR is to show an illustration of 2 ten-year equity investments of $1,000 – each with different returns in annual cash flows, yet each resulting in a 10% IRR:
Year
Present
Value (PV) of
$1.00 @
10% return
Returns on
Scenario A
Present Value of
Scenario A
returns
Returns on
Scenario B
Present Value of
Scenario B
returns
1 $0.9091 $10 $9.09 $500 $454.55
2 $0.8264 20 $16.53 500 $413.20
3 $0.7513 30 $22.54 300 $225.39
4 $0.6830 100 $68.30 300 $204.90
5 $0.6209 200 $124.18 200 $124.18
6 $0.5645 300 $169.35 200 $112.90
7 $0.5132 400 $205.28 250 $128.30
8 $0.4665 600 $279.90 247 $115.23
9 $0.4241 600 $254.46 200 $84.82
10 $0.3855 2,250 $867.38 400 $154.20
$2,017.00 $2,017.67
Note that that the present value of Scenario A and Scenario B returns are nearly equal due to the time value of money, even though the returns to the investor are so vastly
different in the initial years.
33
DATE: December, 2015
TO: File
RE: Alpla Developer’s Agreement Status (Alpla #1)
(Heinz Rd. Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Development Agreement: approved by resolution 03-89, 3/19/2003 Certification of Completion: recorded 10/22/2004, book 3808 page 230-232 Amendments: none Performance Measures: Make improvements to existing 56,000 square foot plant through construction of additional manufacturing, warehousing or distribution space totaling approximately 86,000 square feet. Increase the assessed value by 15% over 1/1/2003. From 3/1/2004 until termination, maintain a minimum of 35 FTEs. Pay all property taxes due. Rebate Schedule: 5 Year – 100%, Maximum $510,000 including a $35,000 Grant; final rebate will be 6/1/2010. Results: The January 1, 2009 assessment is an approximate $3.24 million increase over the January 1, 2003 assessment – a 90% increase in taxable value. As of Nov. 2009, Alpla employed of 251 FTEs with an average hourly wage of $16.55. Their total Iowa City payroll exceeds $8.6 million per year. Valuations, Taxes Paid and Incentives: The following table provides a review of the Alpla TIF project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year’s assessed value. The January 1, 2003 assessment is the base year for the Heinz Road Urban Renewal Area and this specific redevelopment agreement.
Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid Jan-02 2003-04 $6,966 $150 Jan-03a 2004-05 $3,594,340b $39,242 Jan-04 2005-06 $6,358,420 $166,110 $87,049 6-1-06 1 $79,061 Jan-05 2006-07 $6,760,750 $199,652 $92,247 6-1-07 2 $107,405 Jan-06 2007-08 $6,760,750 $222,714 $94,815 6-1-08 3 $127,889 Jan-07 2008-09 $6,842,210 $222,714 $81,557 6-1-09 4 $141,156 Jan-08 2009-10 $6,842,210 $277,764 $98,342c 6-1-10 5 $179,422
Sub total $454,010 $634,944 + grant in fy04 $35,000
Total $489,010
Jan-15 2016-17 $7,308,610
Property Taxes Paid Include the City, County and School District.
Parcel #: 10-24-151-002
a Base year. b Each year the base value was modified to remove value included in partial property tax exemption (to
avoid giving tax rebate on already exempted value) and to remove increased value over proportion of
the original investment. The original investment accounts for 56.53% of the full assessed value. c Final rebate, payable 6/1/2010, Reached time limit before dollar limit; $20,990 short of maximum. 61
DATE: December, 2015
TO: File
RE: Alpla Developer’s Agreement Status (Alpla #2)
(Heinz Rd. Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Development Agreement: approved by resolution 07-250, 8/21/2007
Certification of Completion: recorded 10/02/2009, book 4511 page 765-766
Amendments: none
Performance Measures: Improvements to existing 100,255 square foot freestanding Alpla plant through construction of additional manufacturing, warehousing or distribution space totaling approximately 82,200 square feet. Increase the assessed value by 15% over 1/1/07. Employment: From 9/1/07 until 11/1/09 maintain a minimum of 180 FTEs. Commencing with the first certification on 11/1/09, employ on average, 25 new full time positions at an average hourly wage of $14.00 per hour plus competitive benefit package until at least the termination date. Pay all property taxes due.
Rebate Schedule: 4 Year – 100%, Maximum $600,000; If all performance measures met, first rebate made 6/1/11 and final rebate 6/1/14.
Results: Rebates completed in June, 2014. At that time, there were 261 total employees averaging more than $17.21 per hour. New construction and improvements have added $4.55 million in new taxable value over the base year of Jan. 2007, a 99.4% increase.
Valuations, Taxes Paid, Incentives: The following table provides a review of the Alpla TIF project #2, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year’s assessed value.
Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates
yr Net Taxes Paid
Jan-07a 2008-09 $4,585,250 $222,714 Jan-08 2009-10 $6,842,210 $277,764 Jan-09 2010-11 $8,427,350 $344,807 $127,937 6-1-11 1 $216,870 Jan-10 2011-12 $8,427,350 $343,446 $126,834 6-1-12 2 $216,612 Jan-11 2012-13 $9,040,020 $375,153 $141,932 6-1-13 3 $233,220 Jan-12 2013-14 $9,042,430 $367,472 $135,361 6-1-14 4 $232,111
Total $532,065 $898,812
Jan-15 2016-17 $9,367,860
Property Taxes Paid to all jurisdictions: City, County and School District.
Parcel #: 1024130001
a Base year. 62
DATE: January, 2016
TO: File
RE: Hilton Garden Inn
(City-University Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Development Agreement: approved by resolution 15-87. TIF and hotel/motel tax rebates derived from the tax
increment from the Hilton Garden Inn property, 50% of the total hotel/motel tax collected from the Hilton Garden Inn (only), and when the developer’s property known as 314 S. Clinton St. is completed and has reached an
assessed value of at least $18,600,000 and property taxes are paid on this value, the City shall also make an economic development grant to the developer of $250,000 per fiscal year of those tax increments deposited into
the 314 S. Clinton St. account.
Certification of Completion:
Performance Measures: Deemed a strategic location adjacent to the new UI School of Music, and the selected
site for the new UI Museum of Art, the hotel is a $33 million project with a demonstrated $8.8 million financial gap. Property taxes paid on the site will increase from approximately $11,000 to $582,500 per year. In exchange for
the recommended $8.8 assistance, the owner has indicated they agree to complete the Minimum Improvements generally consisting of construction of a 12-story Hilton Garden Inn hotel with 144 bedrooms, a meeting/event
center, a roof top food and beverage venue, a restaurant, and a pool/spa/fitness area, all as described more fully on Exhibit B ("Minimum Improvements") in the Development Agreement. The Redeveloper hereby commits to a
Project that includes a minimum total of $33,205,936 in project costs. By January 1, 2018, the construction of the Minimum Improvements must increase the actual assessed value of the Development Property to at least
$15,120,000.
Rebate Schedule: up to 21 annual rebates not to exceed $8,800,000.
Results: Groundbreaking ceremony, December 22, 2015.
Chronological Overview:
Valuation
Year
Fiscal
Year
Assessed
Value
Property
Taxes Paid
Taxes
Rebated
Rebate
Pay dates
yr Net Taxes
Paid Jan-13 2014-15 $1,004,480 Jan-14 2015-16 $1,004,480 Jan-15 2016-17 $1,364,880 Jan-16 2017-18 6/1/2018 1 Jan-17 2018-19 6/1/2019 2 Jan-18 2019-20 6/1/2020 3 Jan-19 2020-21 6/1/2021 4 Jan-20 2021-22 6/1/2022 5 Jan-21 2022-23 6/1/2023 6 Jan-22 2023-24 6/1/2024 7
63
DATE: January, 2016
TO: File
RE: Iowa City Marketplace Agreement Status
(Sycamore and First Avenue URA)
FROM: Wendy Ford, Economic Development Coordinator
Development Agreement: resolution 14-327 on 11-18-14, recorded 1/12/15 book 5322, page 266-302;
amendments (none).
Certification of Completion:
Performance Measures: Minimum improvements include interior remodeling, exterior façade renovations, and
related parking lot, signage, landscaping and streetscape elements. The assessed value must increase by 15% over January 1, 2014 base value of $10,015,520, so the January 1, 2016 valuation must be at least $11,517,848.
Developer’s investment must be $4.4 million including architectural, design and engineering fees, costs of building permits, inspection fees, developer fees (not to exceed 5%) construction management fees, demolition costs, and
reasonable contingency, including all costs and expenses relation to the exterior landscape, building façade, and parking lot improvements. Costs must be documented in engineer’s certificate on or before November 1, 2017.
New signage must comply with Exhibit C, in the agreement. Any exterior changes must be approved by City Staff Design Review Committee, prior to obtaining building permit. Developer to certify that by November l, 2015, at
least 65% of the gross leasable floor space of the Development Property is occupied by an Active Tenant (155,496 square feet). On November 1, 2016, the Developer will certify that 75% of the gross leasable floor space
of the Development Property is occupied by an Active Tenant {179,418 square feet). Beginning on November 1, 2017, and until the Termination Date, the Developer will certify that during ten of the twelve previous months, 80%
of the gross leasable floor space of the Development Property has been occupied by an Active Tenant (191,380 square feet).
Rebate Schedule: Up to seven (7) consecutive annual payments of $250,000 to the Developer beginning June 1,
2018 and ending on June 1, 2024. The payment is comprised of 100% of the tax increments plus the difference between 100% of the tax increments and $250,000. For example, if the tax increment was $200,000, the
Developer would receive that amount plus $50,000 (to equal $250,000 total). The total aggregate amount of all economic development grants in this agreement shall not exceed $1,750,000.
Results: Lucky Markets, anchor tenant opened in July 2015.
Chronological Overview:
Valuation
Year
Fiscal
Year
Assessed
Value
Property
Taxes Paid
Taxes
Rebated
Rebate
Pay dates
yr Net Taxes
Paid
Jan-13 2014-15 $ 11,479,070 $ 420,148 Jan-14 2015-16 $ 10,015,520 $ 349,842 Jan-15 2016-17 $ 10,514,000 $ - Jan-16 2017-18 6/1/2018 1 Jan-17 2018-19 6/1/2019 2 Jan-18 2019-20 6/1/2020 3 Jan-19 2020-21 6/1/2021 4 Jan-20 2021-22 6/1/2022 5 Jan-21 2022-23 6/1/2023 6 Jan-22 2023-24 6/1/2024 7
Property Taxes Paid Include the City, County and School District. Parcel #:1014457007
64
DATE: December, 2015
TO: File
RE: MDK Medical Office Building Agreement Status
(Towncrest Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: By resolution 12-314, June 19, 2012; no amendments Description: This was the first private redevelopment project in the Towncrest Urban Renewal Area, established in 2010. Also in 2010, the City had engaged a design firm to create a set of Towncrest Design Guidelines to encourage and guide a transition from the 1950s and 60s Colonial aesthetic to a fresh, more updated look. The design guidelines can be applicable to new construction and the rehabilitation of existing construction. The City had also reserved funding for early (catalyst) projects that would use the new design standards while meeting other goals of the urban renewal area. This project involved the redevelopment of a former gas station property at 2611 Muscatine and an office building at 1020 William Street, a property directly behind, which had a shared wall and property line with 1030 William Street. The building at 1020 William Street was demolished along with the gas station for the property assembly. Developers built two one-story medical office buildings with a drive between them to access the parking area in back. Performance Measures: Minimum improvements were to acquire and demolish existing structures to construct a one-story building approximately 14,850 SF for commercial and medical offices using the Towncrest Design Plan Standards. No less than 2/3 of the square footage could be built for and occupied by medical offices with the remainder available for any allowable use. Developer must also provide, at a minimum, at least 50 parking spaces on site and dedicate right of way (at no cost to the City) for the creation of 22 additional on-street perpendicular parking spaces (at the City’s cost). Amount of Assistance: For the $5,069,344 construction costs of the project, the City granted a $625,000 construction grant payable as construction occurred. The City also made a forgivable loan of $300,000 through the Gap Financing for Towncrest Catalyst Projects fund. Finally, the City provided a $25,000 matching grant for predevelopment expenses, which also came from Towncrest redevelopment funds. Results: Eye Associates and Towncrest Dental moved in to the new medical office spaces immediately; a labor union office moved in to the remaining office space in 2015. Valuations, Taxes Paid and Incentives: Valuation Year Fiscal Year Assessed Value Property Taxes Paid Economic Development Grants Jan-13 2014-15 $882,300a $32,293 $950,000
Jan-14 2015-16 $2,420,350 $84,543
Jan-15 2016-17 $2,453,970
Property Taxes Paid Include the City, County and School District.
Parcels: 101337001 Union office, 101337002 dental office, 101337003 eye associates. a base value
65
DATE: January, 2016
TO: File
RE: Mercer (formerly Seabury & Smith) Developer’s Agreement Status
(Northgate Corporate Park Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator Development Agreement: approved by resolution 01-236, 7/31/2001, recorded 9/18/2002 Performance Measures: Construction of a new office building of at least 46,000 square feet at a $4,825,000 construction cost. Beginning 7/31/03, maintain a monthly average of at least 202 full time equivalents (FTEs) and 25 part time employment units. FTE hourly wage will be no less than $11.30 and average no less than $15.70/hour and have competitive benefits. Part time employees’ average wage will be at least $8.00. Rebate Schedule: 10 Year declining rate rebate (see below for schedule); maximum $781,200. Results: The January 1, 2009 assessment resulted in an approximately $5.8 million increase from the
January 1, 2002 assessment; a 2000% increase in taxable value. For their final certification, on Nov. 1,
2009, Mercer certified 275 full time employees with an average wage of $18.68 per hour, indicating Mercer’s payroll is over $10.6 million annually. The January, 2015 assessment was $7,314,220. Chronological Overview: The following table provides a review of the Mercer (originally Seabury and Smith) TIF project, associated property values, taxes collected and taxes rebated. The agreement rebated the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year’s assessed value on a declining scale each year. The January 1, 2002 assessment is the base year for the Northgate Corporate Park Urban Renewal Area and this redevelopment agreement.
Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated TIF declining scale Rebate Pay dates yr Net Taxes Paid
Jan-01 2002-03 $208,250 $9,248 NA NA
Jan-02 a 2003-04 $264,520 $9,852 NA NA
Jan-03 2004-05 $4,722,360 $173,554 $134,109 100% 6/1/05 1 $39,445
Jan-04 2005-06 $5,205,680 $199,666 $140,050 90% 6/1/06 2 $59,616
Jan-05 2006-07 $5,881,350 $222,910 $141,042 80% 6/1/07 3 $81,869
Jan-06 2007-08 $5,922,890 $229,988 $127,785 70% 6/1/08 4 $102,203
Jan-07 2008-09 $6,040,690 $244,397 $115,224 60% 6/1/09 5 $129,173
Jan-08 2009-10 $6,040,690 $245,226 $95,491 50% 6/1/10 6 $149,735
Jan-09 2010-11 $6,040,690 $ 247,146 $27,499b 40% 6/1/11 7 $219,657
30% 8
20% 9
10% 10
Total $781,200 $781,698
Jan-15 2016-17 $7,314,220
Property Taxes Paid Include the City, County and School District. Parcel #: 07-36-303-005
a Base year. b Final rebate. This amount meets the $781,200 maximum before the 10 year maximum. 66
DATE: January, 2016 TO: File RE: Owens-Brockway (formerly Graham Packaging) Developer’s Agreement Status (Scott Six Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: approved by resolution 01-237 on 10/08/2001; recorded 9/18/02 book 3381, pg 576 Certification of Completion: not on file Performance Measures: Owens Brockway agreed to maintain 22 full time equivalent positions at an average of at least $13.43/hour plus competitive benefits.
Rebate Schedule: 5 Yrs – 100% with a $695,550 maximum
Results: The January 1, 2008 assessment is a $5.79 million increase over the January 1, 2001 assessment. At their final certification, in Nov. 2007, they employed 56 full time equivalents and the average hourly wage was $16.75. Owens Brockway’s annual payroll in Iowa City for the
preceding twelve months was more than $1.9 million. Owens Brockway elected to forego the rebate for the January 1, 2002 assessment, as they had
not completed all proposed improvements. They requested that the 5-year 100% rebate apply to the full value of the proposed Minimum Improvements. The contract specifies that the City
will make five consecutive annual payments commencing June 1, 2005.
Overview:
The following table provides a review of the Owens-Brockway (formerly Graham Packaging) TIF
project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year’s assessed value. The January 1,
2001 assessment is the base year for the Scott Six Urban Renewal area and this
redevelopment agreement. Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates Net Taxes Paid Jan-01 a 2002-03 $30,010 $858 NA NA Jan-02 2003-04 $2,398,650 $89,342 NA NA Jan-03 2004-05 $5,037,870 $186,536 $150,656 6/1/05 $35,880 Jan-04 2005-06 $5,346,840 $205,080 $167,442 6/1/06 $37,638 Jan-05 2006-07 $5,471,100 $209,137 $170,786 6/1/07 $38,351 Jan-06 2007-08 $5,510,030 $210,625 $176,796 6/1/08 $33,830 Jan-07 2008-09 $5,816,790 $222,351 $29,871 b 6/1/09 $206,101 Jan-08 2009-10 $5,826,050 $236,348 $0 N/A $236,348 Total $695,550 $588,148 Jan-15 2016-17 $6,176,830
Property Taxes Paid Include the City, County and School District.
Parcel # 0919327016
a Base Year. b Final Rebate Estimate – the maximum rebate allowable without surpassing the cap of $695,550.
67
DATE: December, 2015
TO: File
RE: Park at 201 Developer’s Agreement Status
(City University Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: By resolution 12-154, April 3, 2012. Description: Redevelopment of lot at 114 S. Dubuque St. from 1-story commercial building valued at $550,390 to 14 story mixed use building with a minimum assessment required of $5,750,000 on Park at 201 and $1,273,430 on 225 S. Linn St (Bread Garden commercial condo). Construction costs were estimated at $10,737,598. Amendments: none Performance Measures: Retail on street level, and mezzanine levels; Office space on
levels 2, 3 and 4; Residential and/or office on levels 5-14. 16 one-bedroom units of 662
SF to be sold at workforce housing priced level of up to 150% area median income, 8 one bedroom units of 1,039 each and 2 luxury units of 2,000 SF.
Amount of Assistance: $2,500,000 up front tax increment financing (reimbursable as portion of construction bills are paid). Results: Retail user on first and mezzanine floors (Buzz Salon); MetaCommunications purchased and moved into offices on floors 2-4; Digital Artefacts purchased one of two penthouses and converts to office space. Remainder is residential. Valuations, Taxes Paid, Incentives Valuation Year Fiscal Year Assessed Value Property Taxes Paid
Economic Development Grant Jan-12* 2013-14 $550,390 $22,367 $2,500,000
Jan-13 2014-15 $2,879,730 $74,699
Jan-14 2015-16 $ 9,863,808 $246,570
Jan-15 2016-17 $10,160,280
*base value year
(Property Taxes Paid Include the City, County and School District.)
68
DATE: January, 2016
TO: File
RE: Southgate Development Company (Pepperwood) Developer’s Agreement Status
(Hwy 6 Commercial URA)
FROM: Wendy Ford, Economic Development Coordinator
Development Agreement: resolution 03-276 on 8-19-03; recorded 8-29-03 book 3627, page 537-574
Certification of Completion: 5-9-2007; recorded book 4161, page 760-763 Amendments: One, in November, 2008 changing process for exterior design changes to go through Economic
Development Committee.
Performance Measures: Increase assessed value of property beginning with the Jan. 1, 2005 assessment by at least 15% over that of Jan. 1, 2003. Occupancy rate of gross leasable square feet HAD TO BE be at least 65% on
11-1-04, 75% on 11-1-05, and 80% on 11-1-06 for at lease 10 of the previous 12 months. The 1st amendment details expectations for pedestrian walkways to be separated from vehicle traffic through landscaping, etc; that
parking islands be curbed and landscaped; that the presence of the building should be strengthened for visibility from Hwy 6; that the use of color, materials, mass, signage, etc. should enhance the commercial environment;
that awnings and signage should be integrated in the design concepts, that vertical roof extension and sign panels should have a finished appearance and the that material used within 5 feet of the finished grade be
durable and resistant to damage.
Rebate Schedule: 7 Years – 100%, $1,725,000 maximum.
Results: With the Jan. 1, 2010 valuation there was an increase of $3.8 million in new taxable value since the base year of 2003; a 44.7% increase in taxable value. The total amount of rebates fell short of the $1,725,000
maximum approved due to lower-than-projected valuations; the time limit was reached before the dollar limit was reached. The Jan. 2015 valuations were $13,115,210.
Chronological Overview: The following table provides a review of the Southgate Development Company’s
Pepperwood Plaza TIF project, associated property values, taxes collected and taxes rebated. The agreement
rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base
year’s assessed value. The January 1, 2003 assessment is the base year for the Hwy 6 Commercial Urban
Renewal Area. The agreement states the City will rebate the taxes only on the Minimum Improvements listed in
the Developer’s Agreement. Base value was adjusted in 2008, as the property parcels were reconfigured. New
base valuation became $8,745,932.
Valuation
Year
Fiscal
Year
Assessed
Value
Property
Taxes Paid
Taxes
Rebated
Rebate
Pay dates
yr Net Taxes
Paid Jan-03a 2004-05 $8,677,520 $318,912 NA Jan-04 2005-06 $8,677,520 $332,830 NA Jan-05 2006-07 $10,896,530 $412,992 $69,637 6/1/07 1 $343,355 Jan-06 2007-08 $11,773,880 $457,185 $99,895 6/1/08 2 $357,290 Jan-07 2008-09 $11,917,390 $482,159 $105,442 6/1/09 3 $376,717 Jan-08 2009-10 $11,925,100 $484,108 $105,115 6/1/10 4 $378,992 Jan-09 2010-11 $12,675,590 $518,624 $130,853 6/1/11 5 $387,771 Jan-10 2011-12 $12,675,590 $516,577 $129,725 6/1/12 6 $386,852 Jan-11 2012-13 $12,610,980 $123,143 6/1/13 7 $374,980
Total $763,810 $2,605,807 Jan-15 2016-17 $13,115,210
Property Taxes Paid Include the City, County and School District.
Property includes 10 parcels.
a Base year 69
DATE: January, 2016
TO: File
RE: Plamor property Developer’s Agreement Status
(Sycamore & First Avenue Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: By resolution 02-318 on 9-10-2002; recorded 9-24-02 book 3385, page 418 Certification of Completion: 11/7/2003; recorded 11/10/2003 book 3665, pages 132-134 Performance Measures: Improvements to existing 23,000 square foot structure and
construction of a new approximate 4,600 square foot building for commercial use. Project had
to increase actual assessed value of the development property by at lease 15% over assessed value on Jan. 1, 2002, beginning Jan. 1, 2004. On Nov. 1, 2003 at least 65% of the
gross leasable space had to be occupied. On Nov. 1, 2004, 75% had to be occupied, and
beginning Nov. 1, 2005 and each Nov. 1 until termination date, the property had to be at least 80% occupied for 10 of previous 12 months.
Rebate Schedule: 7 Years – 100%, $400,000 maximum
Results: The January 2010 assessment was an approximate $1.06 million increase over the base year 2002 assessment, a 107% increase in taxable valuation. The January, 2015 assessment is a 147% increase over the base year. The taxes rebates over the 7 years totaled $231,506. The maximum amount of $400,000 was not achieved because valuations proved lower than developer had estimated.
Chronological Overview: The following table provides a review of the Plamor property TIF
project, associated property values, taxes collected and taxes rebated. The agreement
rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year’s assessed value. Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid Jan-02 a 2003-04 $972,150 $36,210 NA NA Jan-03 2004-05 $966,070 $35,504 NA NA Jan-04 2005-06 $1,847,110 $70,848 $27,555 6/1/06 1 $43,293 Jan-05 2006-07 $2,008,020 $76,106 $32,514 6/1/07 2 $43,592 Jan-06 2007-08 $2,008,020 $77,972 $33,419 6/1/08 3 $44,553 Jan-07 2008-09 $2,012,840 $81,436 $34,600 6/1/09 4 $46,837 Jan-08 2009-10 $2,012,840 $81,713 $34,309 6/1/10 5 $47,304 Jan-09 2010-11 $2,012,840 $82,356 $34,654 6/1/11 6 $47,702 Jan-10 2011-12 $2,012,840 $82,031 $34,355 6/1/12 7 $47,676 Total $231,506 $320,957 Jan-15 2016-17 $2,403,220
Property Taxes Paid Include the City, County and School District.
Beginning 2003– 2 new parcels created - 10-14-486-007 and 10-14-486-008
a Base year
70
DATE: December, 2015
TO: File
RE: Plaza Towers TIF Project Status
(City-University District)
FROM: Wendy Ford, Economic Development Coordinator
Improvement and Sale of Land for Private Redevelopment: approved by resolution 02-253, July
16, 2002.
Performance Measures: Construct a multi-use building with minimum construction cost of
$22,265,000. Include commercial space including a 10,000 square foot full service grocery store, at
least 18,000 square feet of new conference space, a boutique hotel and high end offices and residential units with a maximum of two bedrooms each for sale and for lease in the upper floors, a
skywalk from the parking ramp through the building for easy access to the Pedestrian Mall and exterior entrance to the library.
Minimum Assessment agreement: A minimum assessment agreement was used in this case to ensure that enough taxable value through improvements of two of the developer’s projects would create the increase in property tax revenues necessary to pay off the bonds and reduce the risk to
the City. The developer agreed to enter into a Minimum Assessment Agreement to establish a Minimum Actual Value for the land and Improvements for this project and the land and improvement of the Vogel property.
Bond Sale Instead of providing rebates to the developer. The City sold $7.3 million in bonds and
funded a $6 million construction grant to the developer to assist in financing the initial part of the
project. When amortized over a 20 year period at rates varying between 4% and 5.4% a debt repayment schedule totaling $11,975,104 was created.
Bond Repayment: After the several years of scheduled interest and principal payments on the bonds, the City had the option to pay off the remaining debt early. This was possible because the
City collected the incremental tax revenues from the entire TIF district as opposed to just those associated with the project. All TIF revenue exceeding the scheduled debt repayment also collected interest in the Plaza Towers TIF repayment account and was used to retire the debt early.
Overview: The City sold the land to the developer for $250,000 cash. The City issued bonds to pay
for its $6 million part of the project. Results: The January 1, 2015 assessment showed an approximate $37 million increase over the
January 1, 2004 assessment. The new taxable value, or the increment, of the Plaza Towers project
is $28 million. The increment (difference between the taxable valuation in the base year and the current taxable valuations) in the entire district exceeds $85,000,000. Using the district’s tax
increment will have allowed the City to save upwards of $1.75 million dollars in interest by paying
off the TIF debt early. Upon retiring the debt, the City directed the entire increment to be released back to all taxing entities, which was 12 years sooner than anticipated. The property tax revenues
on Plaza Towers now generates upwards of $950,000 per year. Beginning in FY 2011, 100% of it
began to flow to all taxing entities.
71
Valuation year Fiscal Year Valuation of commercial property
Valuation of residential property
Total valuation Property Taxes Paid
Economic Development Grant Jan-03a 2004-05 Jan-04 2005-06 $6,000,000 Jan-05 2006-07 $7,107,740 $7,128,780 $14,236,520 $394,733 Jan-06 2007-08 $15,323,780 $15,373,810 $30,697,590 $867,007 Jan-07 2008-09 $14,296,350 $21,449,350 $35,745,700 $961,790 Jan-08 2009-10 $13,732,270 $21,656,310 $35,388,580 $958,271 Jan-09 2010-11 $13,905,130 $21,464,150 $35,369,280 $980,894 Jan-10 2011-12 $13,905,130 $21,480,800 $35,385,930 $991,527 Jan-11 2012-13b $11,279,720 $22,103,780 $33,383,500 $888,646 Jan-12 2013-14 $11,279,720 $22,087,550 $33,367,270 $886,589 Jan-13 2014-15 $11,536,400 $22,940,390 $34,476,790 $903,057 Jan-14 2015-16 $11,536,400 $23,278,330 $34,814,730 $906,498 Jan-15 2016-17 $12,774,970 $24,244,590 $37,019,560
Total Property taxes paid to date $8,739,011
a Base year b SSMID collection begins: additional $2/$1000, continues through FY25
72
DATE: January, 2016
TO: file
RE: Sycamore Mall (MGD L.C.) Developer’s Agreement Status
(Sycamore & First Avenue Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: approved by resolution 00-322, 9/19/2000, recorded 9/24/02 book 3385, page 385
Amendments: #1 by resolution 04-87, #2 in May 2004, #3 by resolution 08-243 – each having to do with transfer of ownership. The first amendment was executed in March, 2004 which allowed for the dissolution of the owners’ development entity, comprised of multiple parties, to divide into individually owned L.C.s as tenants in common. The second amendment followed in May, 2004 when the group of individually owned L.C.s bought out Gerry Ambrose’s interest. The third amendment allows the individually owned L.C.s to transfer their interests as tenants in common to three CORE Investment entities in order to reinvest in other local development projects. Hodge Commercial Management continues to operate the mall and will receive the TIF rebates if the performance terms of the agreement are met. Performance Measures: Make improvements to existing mall to increase assessed value by at least 15% over assessed value on Jan. 1. 2000. Must have one anchor retail store of at least 40,000 square feet and be 65% occupied by 11/1/2002. Must be 75% leased by 11/1/2003 and by 11/1/2004, 80%
occupied for 10 of 12 previous months for the duration of the agreement
Rebate Schedule: 7 Years – 100%, $2,000,000 maximum. Results: After the adoption of the Sycamore and First Avenue Urban Renewal Area, over $7.1 million in building permits were issued for the Sycamore Mall. The January 1, 2008 assessment was an
approximate $10.3 million, or 222% increase over the January 1, 2000 assessment. Chronological Overview: The following table provides a review of the Sycamore Mall TIF project, property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year’s assessed value. The January 1, 2000 assessment is the base year for this agreement. Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid
Jan-00 a 2001-02 $4,662,900 $152,958 NA NA Jan-01 2002-03 $4,662,900 $163,000 NA NA Jan-02 2003-04 $10,168,280 $378,736 $167,957 6/1/04 1 $210,779 Jan-03 2004-05 $11,073,730 $406,796 $192,862 6/1/05 2 $213,934 Jan-04 2005-06 $11,457,180 $439,444 $213,971 6/1/06 3 $225,473 Jan-05 2006-07 $12,696,150 $481,200 $252,149 6/1/07 4 $229,050 Jan-06 2007-08 $14,610,400 $567,328 $320,926 6/1/08 5 $246,402 Jan-07 2008-09 $15,051,730 $608,969 $345,399 6/1/09 6 $263,571 Jan-08 2009-10 $15,051,730 $610,035 $343,494 b 6/1/10 7 $267,542 Total $1,836,758 $1,656,751
Jan. 15 2016-17 $10,514,000
Property Taxes Paid Include the City, County and School District. Parcel #: 1014457007
a Base year. b Final rebate. This project reached the time limit of 7 years of rebates before the dollar maximum of $2 million.
73
DATE: January, 2016
TO: File
RE: United Natural Foods Developer’s Agreement Status
(Heinz Rd. Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: approved by resolution 03-205, 7/1/2003; amendments: one, by resolution 06-105, 4/4/06
Certification of Completion: recorded 10/25/2004, book 3809 page 233-235
Performance Measures: Improvements to existing 120,500 s.f. warehouse through construction of
additional warehousing and/or distribution space, totaling 140,000 s.f. Increase the assessed value by 15%
over 1/1/2003. Maintain minimum monthly average of 300 FTEs, with a minimum average hourly wage of
$11.75 and no less than $10.00 per hour, or be subject to reduction in rebate by $1667 per shortfall in
employment units. Pay all property taxes due.
Rebate Schedule: 6 Year – 100% tax increment rebate; maximum $1,000,000. The original United
Natural Foods TIF agreement was to reach employment of 300 full time equivalents with an average wage
of at least $11.75/hour. Prior to the development project, they employed 218 full-time equivalents. The
agreement was amended on April 4, 2006, to a) extend the time frame to reach employment levels and b)
to institute a clawback provision if employment levels fell short of 300. The clawback allowed the City to
deduct $1,667 from the TIF rebate for every FTE UNFI fell short of 300 at the time of certification.
Results: The January 1, 2009 assessment is an approximate $8.4 million increase from the January 1,
2003 assessment. In Nov. 2009, UNFI certified 306 full time equivalents with an average $17.36 hourly
wage, exceeding $11 million per year in total payroll.
Chronological Overview: The following table provides a review of the United Natural Foods Inc. TIF
project, property values, taxes collected and taxes rebated. The agreement rebates the value of property
taxes paid (less protected school, city and county debt levy) in excess of the base year’s assessed value.
The January 1, 2003 assessment is the base year for this agreement.
Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid
Jan-02 2003-04 $4,351,170 $142,426
Jan-03 a 2004-05 $4,653,740 b $155,308
Jan-04 2005-06 $6,203,550 $227,272
Jan-05 2006-07 $12,947,600 $486,067 $169,784 c 6/1/07 1 $316,283
Jan-06 2007-08 $12,947,600 $494,932 $240,905 d 6/1/08 2 $261,856
Jan-07 2008-09 $13,094,510 $529,783 $278,876 e 6/1/09 3 $250,908
Jan-08 2009-10 $13,094,510 $531,581 $277,338 f 6/1/10 4 $254,243
Jan-09 2010-11 $13,094,510 $531,581 $33,098 g 6/1/11 5 $502,666
Total $1,000,000 $1,585,956
Jan-15 2016-17 $11,466,490
Property Taxes Paid Include the City, County and School District. Parcel # as of 2004: 10-24-178-012
a Base year.
b Each year the base value was modified to reflect 35.94% of the full assessed value.
c At the time of the first rebate in June, 2007, 100% of the rebate would have been $256,468, but actual employment was at 248. Clawback was instituted as per agreement: 300-248 = 52 x $1667 = reduction of 100% rebate by $86,684, for $169,784.
d At the time of the second rebate in June, 2008, 100% of the rebate would have been $267,576, but actual employment was at 284. Clawback was instituted as per agreement: 300-284 =16 x $1667 = reduction of 100% rebate by $26,668, for $240,905.
e Full amount rebated; employment threshold met.
f Full amount rebated up to the total maximum amount of $1 million; employment threshold met.
g Final rebate. This amount completes the $1 million maximum per the agreement, before the 6 year maximum.
74
DATE: January, 2016
TO: File
RE: Packaging and Provisions Building (former Vito’s building, 118 E. College)
Developer’s Agreement Status (City University Urban Renewal Area)
FROM: Wendy Ford, Economic Development Coordinator
Agreement: By resolution 11-163. Minimum Assessment Agreement recorded in book 4844, pages 865-873. Certification of Completion: expected in 2012. Amendments: none Performance Measures: Make improvements to existing building including new roof, elevator
and HVAC systems. No part of the project may be used for an eating and drinking establishment,
restaurant, or residential use. For each full year, November 1 to November 1 after the filing of the Certificate of Completion, and provided redeveloper operates the improvements in accordance
with the terms and conditions of the agreement, the City will forgive 1/8 or $31,250 of the
economic development grant.
Amount of Assistance: $250,000 forgivable loan to be repaid to the City through TIF revenues. Results: Building renovation well underway; on-time completion expected. Chronological Overview: Valuation Year Fiscal Year Assessed Value Property Taxes Paid
Forgivable Loan yr Cumulative Amount of Loan forgiven Jan-10 2011-12 $797,760 $32,512 $250,000
Jan-11 2012-13 $813,350 $33,754
Jan-12 2013-14 $813,350 $33,054 1 $31,250
Jan-13 2014-15 $1,560,000 $59,082 2 $62,500
Jan-14 2015-16 $1,605,790 $56,410 3 $93,750
Jan-15 2016-17 $1,817,390 4 $125,000
Jan-16 2017-18 $1,817,390 5 $156,250
Jan-17 2018-19 6 $187,500
Jan-18 2019-20 7 $218,750
Jan-19 2020-21 8 $250,000
Property Taxes Paid Include the City, County and School District.
75
Tax Increment
Financing
A method of reallocating property taxes resulting from
an increase in taxable valuation
The increment is the change between the former value
and the new value
The only source of funds for cities to use for Economic
Development incentives
Can be founded on basis of slum, blight or economic
development or combination
What is Tax Increment
Financing?
High quality architectural and site design
Energy efficiency and sustainability above required
building code standards
Affordable housing: provision of units or contribution to
fund
Creation of high quality jobs
Developer equity equal to or greater than request
Redevelopment of underutilized or blighted property
Other public benefits as detailed in comprehensive
plan, urban renewal planning documents or City
Council adopted Strategic Plan
Tax Increment Financing Policies
TIF Districts in Iowa City
Considering TIF
Public Goals
& Objectives
Developers
Risk
Build
the
Tax
Base
Attract
Certain
Business
Type
Attract
New Jobs
TIF
Affordable
Housing
Considering TIF
Iowa City’s TIF projects add value
District (Bold)
projects indented (not bold) Start date End Date Base Value of
Project
2015
Assessed
Value
New Value
Created in TIF
projects TIF Financing
to developer
Add'l cost of
financing if
up front Total TIF cost
Sycamore & First Avenue URA 2000 2020
Sycamore Mall 2004 2010 $4,662,900 $10,015,520 $5,352,620 $1,836,758 $0 $1,836,758
Plamor Redevelopment 2006 2011 $972,150 $2,403,220 $1,431,070 $231,506 $0 $231,506
Scott Six Industrial Park 2001 2021
Owens Brockway 2005 2009 $30,010 $6,176,830 $6,146,820 $695,551 $0 $695,551
City-University Project I 2001 n/a*
Plaza Towers 2004 2010 $0 $37,019,560 $37,019,560 $6,000,000 $5,975,104 $11,975,104
Vito's building rehab 2011 $813,350 $1,817,390 $1,004,040 $250,000 $0 $250,000
Park at 201 2012 $569,520 $10,160,280 $9,590,760 $2,500,000 $766,790 $3,266,790
Riverside Drive 2013 2025
Northgate Corporate Park 2002 2022
Seabury & Smith 2005 2011 $264,520 $7,314,220 $7,049,700 $781,200 $0 $781,200
Heinz Road 2002 2022
Alpla of Iowa #1 2003 2010 $3,594,340 $16,676,470 $13,082,130 $489,010 $0 $489,010
Alpla of Iowa #2 2007 2014 $532,065 $0 $532,065
Alpla of Iowa #3 2016 2019 $170,000 $0 $170,000
United Natural Foods Inc. 2003 2011 $4,653,740 $11,715,050 $7,061,310 $1,000,000 $0 $1,000,000
Hwy 6 Commercial URA 2003 2023
Southgate Development
(Pepperwood) 2003 2013 $8,677,520 $13,115,210 $4,437,690 $763,810 $0 $763,810
Towncrest URA 2010 n/a*
MDK Medical Office Building 2012 $885,880 $2,454,570 $1,568,690 $625,000 $228,224 $853,224
$25,123,930 $118,868,320 $93,744,390 $15,874,900 $22,845,018
approximate tax difference $ 967,774 $ 4,578,808
473%
percent increase
Owner Pays
100% Property
taxes:
$39,000
Owner ALWAYS Pays
100% of the Property taxes: $194,000
Including $122,000 TIF
Increment FROM NEW
VALUE created all or part of which
may be captured to assist in projects
with public benefit…
for a limited time
PLUS the original
$39,000 goes
to all Taxing
Jurisdictions
$33,000 of the Increment
(Protected Debt Levy)
$4M INCREMENT
$39,000 goes
to all Taxing
Jurisdictions
$1 M $5 M
base value
new value How
TIF
works
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
TIF captured or
rebated
Net Prop Tax onNew Valuation,"After"Taxes "Before"TIF assistance
period:
5 years of
$133,000 each
Total $665,000
Property Tax Collections on a TIF project
Year
Pr
o
p
e
r
t
y
T
a
x
C
o
l
l
e
c
t
i
o
n
s
Base/Before
Example: $4 Million redevelopment
Capturing TIF from PROJECT
New/After
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
1 2 3 4 5 5 6 7 8 9 10 11 12 13 14 15 16 17
TIF captured orrebated
Net Prop Tax on NewValuation, "After"
Taxes "Before"
Property Tax Collections on a TIF project
Year
Pr
o
p
e
r
t
y
T
a
x
C
o
l
l
e
c
t
i
o
n
s
TIF pay back period:
4 years of $758,000
Total
$2.27 M
Base Before
Example: $22 Million Industrial Development
Capturing TIF from PROJECT
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
Net Prop Tax onNew Valuation,
"After"TIF captured orrebated
Taxes on a typicaldevelopment
Cumulative Property Taxes on a 4 – 5 story
building over 20 year period = $4 Million
TIF payback
Period
ends early due to
higher values and
capture from
district vs project
only
$11.7 M
Cumulative new Property Taxes over
20 year period = $18 Million
Property Tax Collections on a TIF project
Year
Pr
o
p
e
r
t
y
T
a
x
C
o
l
l
e
c
t
i
o
n
s
Protected debt levy
Example: $35 Million redevelopment
Capturing TIF from project + AREA
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Protected DebtLevyTIF captured
TIF Area TotalTax Revenues
On $390 Million
Increment;
city captures entire
amount allowable
for duration of 20
years
Property Tax Collections on a TIF AREA
Year
Pr
o
p
e
r
t
y
T
a
x
C
o
l
l
e
c
t
i
o
n
s
Protected debt levy
Capturing all TIF from AREA, 20 years
TIF Project examples
Base value: $ 569,520
2015 value: $ 10,160,280
New value: $ 9,590,760
MetaCommunications
Number of Jobs: 50+
Park @ 201
Base value: $ 885,880
2015 value: $ 2,454,570
New value: $ 1,568,690
Medical Office Building, Towncrest
Base value: $ 3,594,340
2015 value: $ 16,676,470
New value: $ 13,082,130
Number of Jobs: 200+
Payroll : $6 million+ (est.)
Alpla of Iowa, Inc.
Base value: $ 4,653,740
2015 value: $ 11,715,050
New value: $ 7,061,310
Number of Jobs: 249
Payroll : $ 8 million (est.)
United Natural Foods, Inc.
…and others
Tax Increment
Financing
in Johnson County
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1.04% 19.18% 20.73% 26.65% 27.65% 32.79% 33.22% 43.23% 44.76%
Percent of Each Town’s Valuation Captured in TIF
PORTION NOT capturing TIF
PORTION CAPTURING INCREMENT for TIF
Jan. 1, 2014 valuation year; FY 2015/2016
$9,610
$25,656
$9,784
$9,538
$11,598
$9,045
$10,449
$34,620
$453
$0 $1 $2 $3 $4
Oxford
Shueyville
Swisher
Lone Tree
Tiffin
Solon
North Liberty
Coralville
Iowa City
Total Value of Community in Billions
Total Town Value, TIF Increment, TIF per capita
TIF Valuation
Per Capita
NOT CAPTURING TIF INCREMENT
CAPTURING TIF
Jan. 1, 2014 valuation year; FY2015/2016
70.7%
16.1%
3.3%
2.8%
2.2%
1.7%
1.3%
0.9%
0.8%
26.5%
14.1%
53.5%
1.8%
1.8%
0.7%
0.7%
0.6%
0.4%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%
Coralville
North Liberty
Iowa City
Tiffin
Solon
Shueyville
Lone Tree
Swisher
Oxford
Town Value / County Value Town TIF / County TIF
As a portion of
Johnson County…
Town size
TIF size
Johnson County’s TIF Pie – who has how much?
Jan. 1, 2014 valuation year; FY15/16
Oxford , 0.80%
Swisher, 0.92%
Lone Tree,
1.35%
Shueyville,
1.74%
Solon, 2.18%
Tiffin , 2.84%
Iowa City,
3.34% North Liberty,
16.14%
Coralville,
70.71%
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
Coralville
Lone Tree
Oxford
Shueyville
Solon
Swisher
North Liberty
Tiffin
Iowa City
FY 2016
Ta
x
I
n
c
r
e
m
e
n
t
C
a
p
t
u
r
e
d
Trend in
valuation
captured for
TIF revenue
Other, $1.39 Other, $1.12 Other, $1.12 $37,298
Iowa City, 16.65
Iowa City, 12.72 Iowa City, 12.72 $424,059
County, $6.90
County, $5.13 County, $5.13 $170,876
Schools, $13.87
Schools, $11.52 Schools, $6.12 $204,043
State backfill to
schools, $5.40 $179,988
consolidated levy
$38.53/$1000
TIF levy
$30.49001/$1000
tif levy after state
backfill
dollar amount totals
$1,016,266
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
FY 2016
$33,331,128 Increment value/1000 x TIF levy of $30.49 =
$1,016,266 diverted
Taxes on TIF projects in Iowa City
Developers Pay
these taxes
Which are then
used for projects
Other, $1.50 Other, $1.23 Other, $1.12 $786,426
Coralville, 13.53 Coralville, 11.40 Coralville, 11.40 $8,011,685
County, $6.90
County, $5.13 County, $5.13 $3,602,840
Schools, $13.87
Schools, $11.52 Schools, $6.12 $4,302,137
State backfill to
schools, $5.40 $3,794,949
consolidated levy
$35.79953/$1000
TIF levy
$30.49001/$1000
tif levy after state
backfill
dollar amount totals
$20,498,036
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
FY 2016
$700,088,908 Increment value/1000 x TIF levy of $29.79 =
$20,498,036 diverted
Taxes on TIF projects in Coralville
Developers Pay
these taxes
Which are then
used for projects
$786,426 $37,299
$8,011,685 $424,059
$3,602,840 $170,877
$4,302,137 125,652
$3,794,949 $179,988
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Coralville Iowa City
State backfill to schools
Schools
County
City
Other
Compare amount of TIF dollars diverted
FY 2016
Affordable HousingProjects in Iowa City
Highlights of recent private development projects in which the City has participated. Between January 1 and September
1, 2015, the City has leveraged 57 new affordable or workforce housing units in projects that have been granted City
financial assistance.
Riverside West
639 Riverside Drive, project approved 12/2/14
Project budget (private investment): $16.1 million
City assistance: $1.8 million max, TIF rebates over 9
years
Housing unit details: 96 total, all for rent, includes 12
workforce housing units
Management: The Housing Fellowship to manage
affordable rental units; developer manages balance
Sabin Townhomes
Dubuque and Harrison Street, project approved 1/20/15
Project budget (private investment): $6.9 million
City assistance: $976,277 max, TIF rebates over 13 years
Housing unit details: 28 total units; 3 to be purchased for
affordable rental to income qualified households
Management: The Housing Fellowship to manage the 3
affordable rental units
The Chauncey
College and Gilbert Street, project approved 6/8/15
Project budget (private investment): $49 million
City assistance: $14.18 million TIF
Housing unit details: City to purchase 5 - 1 BR units for
$200,000 each for rent to income eligible tenants; 66
total units; some for sale, some rental
Management: Iowa City Housing Authority to manage
affordable rental units; balance by developer
TOTAL NEW UNITS: 664, including 12 workforce housing, and 45 affordable (80% or below Area Median Income)
ADDITIONAL DEVELOPER FEES: $1,000,000 (fees in lieu of providing affordable housing)
The Rise
Court and Linn Street, project approved 7/27/15
Project budget (private investment): $74 million
City assistance: $0, developer to pay City $5.5 million for land
acquisition; Developer to pay $1,000,000 to affordable housing fund,
in addition to providing 32 units of affordable rental housing
Housing unit details: 320 total units; all rental; 32 meet Area Median
Income guideline requirements
Management: All housing units to be privately managed
76
Economic development policies state including affordable housing options in private development projects seeking public
assistance as one of many desired public benefits. Leveraging affordable housing in City-assisted development projects adds to the affordable housing stock in projects that would not otherwise include it and ensuring affordable housing stock throughout
the community – not just where it is affordable to build. Policies governing the definition of affordability and the number of required affordable units are currently under review by staff and will be considered by City Council in late 2015.
Other programs ensuring a range of affordable housing needs are addressed:
UniverCity program The UniverCity program was established to preserve and enhance the unique character of neighborhoods adjacent to the downtown and University of Iowa. This initiative started to ensure that the campus and its surrounding neighborhoods remain vital, safe and attractive places to live and work, and to encourage investment in these neighborhoods. The City has purchased 56 primarily rental homes in University impacted neighborhoods. The City provides up to $50,000 in rehabilitation funds and sells the home to income eligible homeowners at the cost the City paid to acquire the home, plus “carrying” costs such as insurance, taxes, and loan interest. When possible, the City sells the home to homeowners below 80% of area median income. To date, the City has sold 49 homes with a pending purchase agreement for the 50th. The program will have invested approximately $2,800,000 in renovations to homes in the University impacted area (various sources of funding include: State I-Jobs, Iowa City Housing Authority, HOME, CDBG, and City general funds). The City anticipates purchasing 2-5 homes annually for this program.
Single Family New Construction (SFNC) –
source CDBG Disaster RecoveryIn the SNFC program, the City invested no funds in the homes that
were built, but rather, administered the program for the Iowa Economic Development Authority (IEDA). Program administration funds were also
provided by IEDA. To implement the program, the City would issue a Request for Proposals for builders to construct homes on selected lots
with selected home designs. The City provided a 25-30% down payment to the income-eligible homeowner to purchase the property. The down payment amount varied per round. The City took applications, verified income, and matched homes to
buyers based on their interest, using a lottery to determine who got first pick of the available homes. The contractors financed
the construction of the homes, just as they would a spec home. Contractors were virtually assured buyers because of the City’s
down payment assistance. The homeowner had to find their own mortgage through approved banks which had to meet lending
requirements. The loan had to be at least a 15-year fixed interest rate or better. The total purchase price for each of the homes
could not exceed $180,000. If the homeowner sells within five years, they must pay a prorated amount back to IEDA.
Iowa Workforce Housing Tax Credit ProgramThe City provided resolutions of support and committed at least $1,000 per assisted unit for two recent Iowa Workforce
Housing Tax Credits applications. Housing developers are eligible to receive a refund of state sales, service or use taxes paid during construction and an investment tax credit up to a maximum of 10% of the investment directly related to the
construction or rehabilitation of housing. There are no rental restrictions or income limitations on the program, but the average dwelling unit cost for the assisted units may not exceed $200,000 per unit for new construction. Van Patten LLC will
construct a 12 story mixed use building at 9 S. Linn Street and will apply to the IEDA for up to 16 units of workforce housing. Iowa City Cohousing LLC will construct up to 15 units of workforce housing as part of their 33 owner-occupied housing
development on the 900 block of Miller Ave.
More Affordable Housing Opportunities At its September 1 Work Session, the City Council authorized staff to prepare an ordinance which would require that 10-15%
affordable housing units be included in new projects in the Riverfront Crossings District, for projects of 10 units or more. This would be the State of Iowa’s first Inclusionary Zoning ordinance, and would apply only in the Riverfront Crossings
District. Staff will be drafting this ordinance for Planning and Zoning Commission and City Council review in the coming months.
The City Council also authorized staff to prepare an ordinance which would include standards and criteria for ‘cottage cluster’ developments, in order to encourage groupings of smaller lots and smaller dwellings to be constructed as a part of
new subdivisions. This option would add to the diversity of housing types in Iowa City, particularly for new development.
# of
Homes
Total Down
Payment
Assistance
Purchase
Price
House
Completed
Round 1 40 $2,119,872 $7,066,240 11-09 to 5-10
Round 2 37 $1,497,400 $5,989,600 11-10 to 12-11
Round 3 31 $1,260,000 $5,040,000 7-11 to 9-14
Round 4 33 $1,222,500 $4,950,000 1-13 to 9-14
Total 141 $6,099,772 $23,045,840
Sept. 201577
To: City Council Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Date: January 28, 2016
Re: EDC Agenda item #5: City of Literature Funding request
The Iowa City UNESCO City of Literature has submitted a request for continued funding
of $60,000 for FY 17. The $60,000 includes the continuation of $10,000 restricted for
the Iowa City Book Festival.
Since its founding in 2008, the City has committed $50,000 per year to 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. When the
University of Iowa Libraries handed off the production and programming of the Iowa City
Book Festival to the City of Literature the City continued a $10,000 commitment to that
event, also. Today’s request encompasses the $50,000 for City of Literature operations
and $10,000 for the Iowa City Book Festival.
Historically, the EDC has reviewed the past year’s work and approved the coming fiscal
year’s request with a recommendation to City Council including a statement of intent to
budget funding in the next two fiscal years (FY18 and 19). Last year, the Economic
Development Committee approved the FY 16 funding and a recommendation to
continue budgeting the same amount in FY 17 and 18.
The City of Literature presents two unique events and several other significant
programs every year. The Iowa City Book Festival attracted more than 4,000 people to
downtown Iowa City for four days and dozens of events in October, 2015. The festival
has gained notoriety and now authors and publishers seek out the festival because of
its quality.
The five year old One Book Two Book Children’s Literature Festival is geared to families
and building children’s interest in reading and writing. The winter event is great for
getting families out together to go to writing workshops for kids, book fairs and attending
children’s readings and writing awards. Last year’s festival drew more than 2,500
people downtown.
While these events are by far the largest programming pieces of the City of Literature
work, there are numerous others with big impacts. This year, the City of Literature will
be programming and presenting Music IC, a Chamber Music and Literature celebration
in multiple locations in Iowa City in June. This, along with the Hawkeye Readers
78
programs in schools, a high school essay contest with a year’s tuition at the U of Iowa
as a prize, a $10,000 Paul Engle prize and others, help build on the Iowa City
UNESCO City of Literature designation and the reason that Iowa City is a literary
destination.
The attached report highlights the activities of the City of Literature’s past year and
gives an overview of the budget highlights. City of Literature Executive Director, John
Kenyon will be attending your meeting to provide answers to any questions you may
have about the organization.
Funding for this request has come from the Community Development Assistance line in
the Economic Development budget in the past. Staff recommends continued funding for
the City of Literature for FY 2017 and continuing to reserve a “budget placeholder” for
consideration in FY 2018 and 2019.
Please feel free to contact me with any questions.
79
President
Eileen Johnson
Vice President
Jim Conard
Treasurer
Janelle Rettig
Secretary
Linda Schreiber
Past President
Wendy Ford
Board
Alison Ames Galstad
Susan Craig
John Culshaw
McKenzie DeRoo
Hugh Ferrer
Jennie Garner
Laurie Haman
Jim Hayes
Kelly Hayworth
Ana Merino
Andre Perry
Elizabeth Schott
Tim Terry
James Throgmorton
Amanda West
Rachel Yoder
Iowa City UNESCO City of Literature
123 S. Linn St.
Iowa City, IA 5240
(319) 887-6100
www.iowacityofliterature.org
info@iowacityofliterature.org
Jan. 27, 2016
City Council Economic Development Committee
c/o Wendy Ford
City of Iowa City
410 E. Washington St. Iowa City, IA 52240
To the committee:
On behalf of the Iowa City UNESCO City of Literature, I would like to
thank the City of Iowa City for its continued support of our organization.
The city’s commitment to supporting a vibrant literary culture in our community is sincerely appreciated.
I would like to request that you continue this funding at the same $60,000
level in FY17. This includes the annual partnership support of $50,000
and $10,000 that we will earmark as support for the Book Festival. Our
other institutional partners have agreed to maintain their levels in FY17. We are then able to leverage this support to bring other funding to our organization and the community.
The City of Literature works to advance its mission of celebrating and
supporting literature on a local, regional, national, and international level,
connecting readers and writers through the power of story. Through programs like the One Book Two Book Children’s Literature Festival
and the Iowa City Book Festival, we have encouraged families,
businesses and community organizations to discover Iowa as a place that
invites citizens – both locally and globally – to discover and share our
many literary resources and opportunities.
The goal of our UNESCO City of Literature is to support and create the
highest quality literary programming and to engage youth and families in
reading and writing. With the help of the financial support from partners
like the city, we will continue to bring the finest literary events and
offerings into the community.
Sincerely,
John Kenyon
Executive Director
80
City of Literature FY16 Recap
Iowa City is the third UENSCO-designated City of Literature, earning the designation in 2008. Today we are
one of 20 Cities of Literature— the only city to hold the designation in North America and one of two in the
Western Hemisphere—and one of 116 member cities in UNESCO’s Creative Cities Network.
The Iowa City UNESCO City of Literature organization is a 501(c)3 nonprofit that manages the designation
on behalf of the city. It is a collaborative organization that enjoys the support of other area municipalities and
organizations, including the cities of Coralville and North Liberty, Johnson County, the Iowa City-Coralville
Area Convention & Visitors Bureau, and the Iowa City Area Chamber of Commerce.
Our mission: To celebrate and support literature on a local, regional, national, and international level,
connecting readers and writers through the power of story.
Our vision: To establish America’s City of Literature as a place that invites citizens – both locally and
globally – to discover and share our vibrant literary culture.
Programming highlights
Iowa City Book Festival: In its sixth year, this October event drew more than 4,000 people to downtown
Iowa City for four days of events. The festival featured more than 100 authors and presenters appearing at
more than 50 events. Collaborations included those with the University of Iowa Center for Human Rights,
the Geneva Ministries, the University of Iowa College of Public Health, the Iowa City Foreign Relations
Council, The Englert Theatre, the Iowa Writers House, Riverside Theatre and others. Funding from the City
($10,000) was leveraged bring in grants, sponsorships and donations totaling an additional $30,000.
One Book Two Book Children’s Literature Festival: This children’s literature event, now in its fifth year,
will again feature a mix of events designed to celebrate writing for and by children. The three-day event
(coming at the end of February) will find us recognizing nearly 100 writers in grades 1-8 for the excellence
of their work. The festival also features visiting authors, writing workshops, a book fair and much more, and
draws about 2,500 people to downtown Iowa City.
Hawkeye Readers: This program is a partnership with the University of Iowa football team. We work with
the team and three area schools with the greatest socio-economic disparities (Twain, Wood and Kirkwood) to
place football players in classrooms for six weeks to help students work on their reading. The program
reaches nearly 180 students each spring.
Other Programs: The annual Paul Engle Prize (presented this year to Sara Paretsky), the Paul Engle Glory fo
the Senses high school essay contest for Iowa sophomores (prizes are scholarships, including a year of free
tuition to Iowa), celebration of UNESCO’s International Jazz Day, the Writers on the Fly video interview
series with authors (www.writersonthefly.org), and collaborations with other Cities of Literature, including
Krakow, Dunedin, Edinburgh, and Norwich.
81
Jul '14 - Jun 15
Ordinary Income/ExpenseIncome
400 · Direct Public Support 134,372.24430 · Investments 10.80
440 · Other Types of Income 1,400.00450 · Program Income 86,534.39
Total Income 222,317.43
Expense20 · Personnel 118,161.66
50 · Contract Services 3,195.0060 · Operations 3,229.4370 · Insurance & Bonding 3,110.00
80 · Facilities and Equipment 0.0090 · Business Expenses 2,571.99120 · Organization Promotion 11,481.94150 · Program Administration 82,919.74
Total Expense 224,669.76
Net Ordinary Income -2,352.33
Net Income -2,352.33
11:14 AM Iowa City UNESCO City of Literature
01/29/16 Statement of Financial Income and Expense
Accrual Basis July 2014 through June 2015
Page 182
Jun 30, 15
ASSETSCurrent Assets
Checking/Savings 147,930.51Other Current Assets 691.12
Total Current Assets 148,621.63
TOTAL ASSETS 148,621.63
LIABILITIES & EQUITYLiabilities
Current LiabilitiesOther Current Liabilities 4,463.98
Total Current Liabilities 4,463.98
Total Liabilities 4,463.98
Equity 144,157.65
TOTAL LIABILITIES & EQUITY 148,621.63
11:03 AM Iowa City UNESCO City of Literature
01/29/16 Summary Balance Sheet
Accrual Basis As of June 30, 2015
Page 183
2015-16 Board of directors
President
Eileen Johnson
Agate Publishing
Vice President
Jim Conard
WestBank
Treasurer
Janelle Rettig
Johnson County Supervisors
Secretary
Linda Schreiber
Community volunteer
Alison Ames Galstad
Coralville Public Library
Susan Craig
Iowa City Public Library
John Culshaw
University of Iowa Libraries
Mackenzie DeRoo
Iowa City Area Chamber of Commerce
Hugh Ferrer
University of Iowa International Writing
Program
Wendy Ford
City of Iowa City
Jennie Garner
North Liberty Community Library
Laurie Haman
Iowa City-Coralville Area Convention & Visitors
Bureau
Jim Hayes
Hayes Lorenzen PC
Kelly Hayworth
City of Coralville
Ana Merino
University of Iowa MFA in Spanish
Creative Writing
Andre Perry
Englert Theatre
Elizabeth Schott
Gazette Companies
Tim Terry
Terry, Lockridge & Dunn/World Trend Financial
James Throgmorton
City of Iowa City
Amanda West
SeedHere Studios
Rachel Yoder
Iowa Youth Writing Project
84
www.cityofl iteratureusa.org
A CITY OF…
WRITERS
READERS
TEACHERS
LIBRARIANS
BOOKSELLERS
STUDENTS
EDITORS
STORYTELLERS
PRINTMAKERS
PUBLISHERS
The Creative Cities Network,
launched in 2004, seeks to develop
international cooperation among cities
that have identifi ed creativity as a strategic factor for
sustainable development, in the framework of partnerships
including the public and private sectors, professional
organizations, communities, civil society, and cultural
institutions in all regions of the world.
The Creative Cities Network facilitates the sharing of
experience, knowledge and resources among the member
cities as a means to promote the development of local
creative industries and to foster worldwide cooperation for
sustainable urban development.
123 S. LINN ST.
IOWA CITY, IA 52240(319) 887-6100
INFO@CITYOFLITERATUREUSA.ORG
WHY IS IOWA CITY A CITY OF LITERATURE?
Cultural Capital: The city has a network of university,
grassroots and civic institutions that teach, celebrate,
nurture and study great writing.
Writer’s Workshop: The highly acclaimed Iowa Writers’
Workshop is the world’s fi rst Master of Fine Arts degree
program in creative writing. Iowa City and the University of
Iowa have played a substantial role in how literature, fi rst
in America and then around the world, has come to be
written.
The Writing University: Other important UI programs
include the Translation Workshop; the Playwrights
Workshop; the Nonfi ction Writing Program; the Summer
Writing Festival; Spanish Creative Writing MFA; and the
Young Writers’ Studio, a summer program for high-school
students.
Famous Authors: Since 1955 graduates and faculty of the
University of Iowa have won more than 25 Pulitzer Prizes in
literature. Authors who have lived, taught and studied here
include Kurt Vonnegut Jr., Robert Penn Warren, Robert
Lowell, Flannery O’Connor, Rita Dove, Jane Smiley, Robert
Hass, John Irving, Marilynne Robinson, Mark Strand, and
Raymond Carver.
International Authors: More than 1,200 writers from
more than 120 countries have been in residence at the UI’s
International Writing Program, including such luminaries as
Bessie Head, John Banville and Nobel Prize-winners Mo Yan
and Orhan Pamuk.
Literary Events: Iowa City’s literary institutions sponsor
more than 250 literary events a year,
Publishing: Iowa City is home to several literary presses,
and a range of print and online journals. The highly
respected Center for the Book preserves and extends the
art of bookmaking.
Iowa loves its libraries: The Iowa City Public Library is the
busiest in the state, while the UI’s research library is the
18th largest of its kind in the country; its holdings include
special literary collections and hundreds of thousands of
rare books.
The UNESCO Creative Cities Network covers seven
creative fi elds: Crafts and Folk Arts, Design, Film,
Gastronomy, Literature, Media Arts, and Music.
Iowa City joined the network in 2008 as the third
City of Literature in the world, and remains one
of only 11: Edinburgh, Scotland; Melbourne,
Australia; Dublin, Ireland; Reykjavik, Iceland;
Norwich, England; Krakow, Poland; Granada, Spain;
Dunedin, New Zealand; Prague, Czech Republic; and
Heidelberg, Germany. All are members of the 69-City
Creative Cities Network.
United Nations
Educational, Scientifi c and
Cultural Organization
Member of the UNESCO
Creative Cities Network
since 2008
85
THE IOWA CITY UNESCO CITY OF
LITERATURE organization is an independent
501(c)3 that manages the UNESCO designation on
behalf of the city. Our offi ces are housed in the
Iowa City Public Library on the second fl oor
administrative area.
We receive support from the City of Iowa City,
the University of Iowa, North Liberty, Coralville,
Johnson County and other entities, as well as from
the businesses and organizations that sponsor our
events and the many individual contributors who
help to sustain our programming.
Our vision: To establish America’s city of
Literature as a place that invites citizens—both
locally and globally—to discover and share our
vibrant literary culture.
Our mission: To celebrate and support literature
on a local, regional, national and international
level, connecting readers and writers through the
power of story.
We meet these goals through a mixture of
advocacy, networking and programming.
OUR KEY PROGRAMS INCLUDE:
The Paul Engle Prize
2015: Sara Paretsky
2014: Luis Alberto Urrea
(pictured at left)
2013: Kwame Dawes
2011: James Alan
McPherson
Glory of the Senses
High school essay contest
Writers on the Fly video interview series,
Hawkeye Readers, Little Free Library advocacy,
Community Book Talks, collaborations with other
Cities of Literature, and much more.
TO CONTRIBUTE, PLEASE DETACH
AND RETURN TO:
Iowa City UNESCO City of Literature123 S. Linn St.Iowa City, IA 52240
I have enclosed a check
Please charge my gift to the following credit card:
Card #
Exp Date CVV Code
Name(s)
Billing Address
Phone
Email
Signature
Amount
You may also donate securely online at: www.cityofl iteratureusa.org/support
Or by phone: 319.887.6100
OTHER PROGRAMS INCLUDE:
86
To: City Council Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Date: January 28, 2016
Re: Agenda item #6, Englert Theater annual report and request for funding
The Englert staff and Board of Directors are requesting a recommendation to the City Council
for $70,000 in the FY17 budget, and that you also recommend intent to continue funding the
Englert at that level in FY18 and FY19.
In December of 2008, the City Council Economic Development Committee approved a proposal
from the Englert Theatre for a three year annual funding request of $50,000 for fiscal years
2009, 2010, and 2011 to be reviewed annually. Prior to or during budget season each year
since, the Englert has presented an annual report and requested consideration for continued
inclusion in the budget for three more years.
For the last two years, the City’s support of the Englert has included $50,000 for operations
funding and an additional $20,000 for capital improvements. In 2014, the capital improvement
was the construction of a lounge in the second floor gallery space which has allowed the Englert
to help offset the loss of revenue from Hancher and the Division of Performing Arts as they
transition to new facilities. In 2015, a concession service station was constructed on the main
level. Both projects improve the experience for patrons and allow the Englert greater revenue
potential. The addition of the gallery lounge and concession station also adds to the appeal for
private rental functions.
Since FY09, when the City began providing financial support -
• The annual budget has gone from $843,000 with a $118,000 deficit (2008) to a
$1.5 million budget.
• Event attendance has grown from 30,297 in 2009 to 66,558+ in 2015.
• Increased programming to include summer months and a growing diversity of events.
• Repaired nagging roof leaks and the plaster ceilings under them.
• Added a lounge space on second floor and new concessions service station on first floor
• Celebrated the 100 year anniversary of the theater.
• Increased Englert “Friends” donors from 200 in 2011 to 1,473 as of May, 2015.
Recommendation
Staff recommends supporting the Englert’s request, and forwarding a recommendation to the
full City Council to fund the request through the Economic Development Division budget in FY17
and retain a placeholder in the FY18 and 19 budgets.
This is justified by the following factors:
87
• Addresses Strategic Plan goal of Continued Development of the Downtown and Near
Downtown Areas with the specific action of facilitating private investment through
partnerships on strategic properties.
• The theater has nearly doubled the size of its annual operations budget since the City
started financial assistance in 2009. It strives to offer more diverse programming every
year.
• The Englert continues to provide entertainment alternatives for the entire community,
including those under 21.
• A strong theater generates downtown visitors who frequent restaurants, shops and other
entertainment venues.
• The Englert attracts visitors and residents to downtown. Of credit card ticket purchasers,
60% are from Johnson County, 30% are from inside Iowa but outside of Johnson County
and 10% are from out of state. It is estimated that of the 66,500 theater goers this past
year, the number from outside the county topped 26,000 people.
Please be prepared to discuss the Englert’s request for a renewed funding commitment. If you
have any questions, feel free to contact me.
88
January 29th, 2016
To the Economic Development Committee:
Thank you for your continued support of the Englert Theatre. Through our diverse, wide-reaching
programming and outreach efforts, the theater continues to excel as a cultural landmark in Downtown
Iowa City. This Annual Report outlines our organization’s progress through FY2015. The report
includes our current financial statement, 3-year operational targets, ticket sales data, donor relations
data, and future strategic plans for the theater.
The Englert Theatre is currently experiencing a transition period as we adjust to shifting economic
conditions. We experienced sharp declines in rental revenue from the University of Iowa’s performing
arts departments as those entities move to their own venues. As a result of these changes and other
factors, FY2014 – 15 registered operational losses. Acknowledging our new revenue landscape, The
Englert staff and board designed a 3-Year Plan that charts a course towards renewed sustainability as
experienced in FY2011 – 13. Our sustainability rests on continued strong programming and
fundraising initiatives as well as an investment in creating new rental opportunities. Additionally, we
have made difficult adjustments to our ongoing expenses that will help ensure sustainability. As part
of our programming effort we have become the producing agent of the local Mission Creek Festival
and a new festival, Witching Hour, which launched in November 2015. Special events such as these
will be key contributors to the operation and help us meet the mission and vision of our organization
in serving as a key community builder through the arts.
As we look to the future of our partnership with the City of Iowa City we request approval of
continued financial support – $50,000 contribution towards operations and $20,000 reimbursement for
continued capital improvements – for fiscal year 2017 and the following two years (2018 - 2019). We
greatly appreciate the city’s approval in these past two years of $20,000 reimbursement for capital
improvements at the theater. This support contributed to the Phase I renovation of our Douglas and
Linda Paul Gallery in 2014 and a currently-in-the-works improvement to our orchestra-level
concessions area in 2015. In 2016, we would allocate these capital funds towards further development
of our gallery space. All of these capital improvements expand our opportunities to generate new
revenue as well as make our building a place where all members of our community feel warm and
welcome.
We encourage the City to consider its support of the Englert as an investment in Iowa City’s overall
cultural and economic vitality. The Englert’s ongoing programming brings vibrancy to downtown
Iowa City and encourages considerable consumer spending with over 60,000 attendees each year.
Furthermore, we are working to bring the various parts of our community together to share in
transformative artistic experiences that will bridge our differences towards a positive future. We are
very appreciative of the City of Iowa City’s support and attention to Englert-related issues.
Sincerely,
Andre Perry
Executive Director
The Englert Theatre
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Table of Contents
I. Current Financial Report
II. Debt/Cash Flow Projection
III. Three Year Financial Report
IV. Attendance Report & Ticket Purchase Demographics
V. Englert Theatre in the Greater Marketplace
VI. Donor Relations
VII. Future Strategic Plans
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((((((Financial Section to Insert into Economic Development Committee Report))))
I. Current Financial Report
Below, please find the Englert Civic Theatre, Inc. profit and loss statement ending
December, 2015 reflecting twelve months of financial performance.
December YTD financial performance was slightly unfavorable to budget by $1,183;
however, favorable to prior year by $30,672.
December YTD financial performance reflects a reduction in rentals from prior year with
the 2014 completion of the 5 year FEMA financed UofI Division of Performing Arts
contract. Improved programming margins added by a strong Mission Creek contribution
in its second year with the Englert have more than offset the rental reduction.
PROFIT/LOSS STATEMENT
Income Dec Actual Dec Budget Last Dec Dec YTD Actual Dec YTD Budget Last Dec YTD
Fundraising/Grants $52,158 $59,500 $49,851 $242,446 $231,000 $234,749
Englert Events 97,729 106,453 119,862 773,791 754,171 737,081
Artist & Audience Outreach 0 0 0 36,044 39,700 20,686
Playbill Advertisting 280 0 0 39,498 32,600 56,578
Rental Events 3,098 5,680 559 150,318 148,184 163,583
Mission Creek 0 0 0 221,300 198,000 206,732
Witching Hour 0 0 0 38,735 0 0
Other 3,164 5,474 2,458 70,314 73,959 45,458
Total Income $156,430 $177,107 $172,730 $1,572,445 $1,477,614 $1,464,867
Expenses
Administration $3,498 $5,221 $2,788 $57,499 $55,072 $58,494
Marketing 3,552 3,583 7,990 43,614 42,996 54,207
Building 7,439 6,575 3,937 70,261 87,865 77,501
Fundraising Expenses 328 200 8,752 27,331 18,000 33,097
Personnel 45,989 44,970 46,138 552,781 513,435 509,029
Englert Events 55,349 83,947 74,432 567,971 570,395 588,865
Artist & Audience Outreach 0 0 0 49,734 52,700 48,499
Playbill Advertisting -30 3,000 9,311 21,589 25,000 19,013
Rental Events 2 249 -108 3,354 7,011 5,872
Mission Creek 0 0 -190 204,649 176,800 179,195
Witching Hour 0 0 0 42,510 0 0
Non-Operating (Interest) 1,498 1,333 1,362 16,444 16,000 16,810
Total Expenses $117,626 $149,078 $154,412 $1,657,738 $1,565,274 $1,590,582
Operating Profit/(Loss)$38,804 $28,029 $18,318 ($85,293) ($87,660) ($125,715)
2011 Capital Campaign $10,450 $14,000 $15,200 $16,450 $20,000 $26,200
Profit/(Loss)$49,254 $42,029 $33,518 ($68,843) ($67,660) ($99,515)
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II. 2015 Debt/Cash Flow Projection
Subsequent to the July, 2011, Cityscape equity buy-out and legal entity consolidation to a
single non-profit organization January, 2012, the Englert has maintained a positive cash
flow with manageable debt position until 2015. The below chart reflects 2015 Englert
Dec YTD debt and cash positions.
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Jan Act Feb Act Mar Act Apr Act May Act Jun Act Jul Act Aug Act Sep Act Oct Act Nov Act Dec Act
Cash Debt
$331,297 twenty year mortgage,
$22,000 five year note, ending Jul, 2016
$30,000 used of $100,000 available operating line
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III. Three Year Financial Report with 2015 Budget
2013 recognized the highest ever level of Operational Profit of $64,379. 2014 recognized
a challenging financial year with losses covered by positive cash generation from the
previous three years. 2014 Programming margins were reduced, UofI DPA FEMA
financed rental contract was concluded, and personnel costs were increased to support
increased programming and Mission Creek. 2015 anticipated continued revenue growth
with investment in personnel to support Mission Creek and Witching Hour festivals.
2016 will focus on closing the cash deficit gap with improved programming margins
including pricing adjustments and increased development income. Further, cost
containment strategies to reduce labor will be initiated.
2013 ACTUAL 2014 ACTUAL 2015 ACTUAL 2016 Budget
Income
Total Development Income 249,319$ 234,750$ 242,446$ 277,650$
Other Income 42,332 45,459 70,314 112,573
Rentals 174,033 163,583 150,318 128,998
Englert Series 920,484 814,343 888,067 827,455
Mission Creek - 206,732 221,300 227,500
Total Income 1,386,168$ 1,464,867$ 1,572,445$ 1,574,176$
Expenses
Administration 109,312$ 112,703$ 122,702$ 123,116$
Building 86,895 77,502 70,261 87,800
Fundraising 19,737 33,097 27,331 26,000
Non-Operating 22,114 16,810 16,444 18,000
Personnel 413,277 508,999 552,781 473,336
Rentals 7,643 5,872 3,354 3,308
Englert Series 662,812 656,404 660,216 580,681
Mission Creek - 179,195 204,649 197,600
Total Expenses 1,321,790$ 1,590,582$ 1,657,738$ 1,509,841$
Operational Profit/(Loss)64,379$ (125,715)$ (85,293)$ 64,335$
2011 Capital Campaign 32,100$ 26,200$ 16,450$ - $
Profit/(Loss)96,479$ (99,515)$ (68,843)$ 64,335$
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IV. Three Year Projection
Below is a table reflecting a three year forward projection the theater has reviewed to
close the financial operating loss gap to financial stability. Improved programming,
development income, mission creek and witching hour festivals with personnel cost
containment are primary drivers.
2016 Budget 2017 Fcst 2018 Fcst
Income
Total Development Income 277,650$ 279,650 $ 281,650 $
Other Income 112,573 128,073 143,573
Rentals 128,998 128,998 128,998
Englert Series 827,455 824,455 826,455
Mission Creek 227,500 230,500 233,500
Total Income 1,574,176$ 1,591,676$ 1,614,176$
Expenses
Administration 123,116$ 125,644 $ 128,447 $
Building 87,800 89,800 91,800
Fundraising 26,000 28,000 30,000
Non-Operating 18,000 17,000 16,000
Personnel 473,336 492,943 510,711
Rentals 3,308 3,308 3,308
Englert Series 580,681 570,681 570,681
Mission Creek 197,600 197,600 197,600
Total Expenses 1,509,841$ 1,524,976$ 1,548,547$
Operational Profit/(Loss)64,335$ 66,700$ 65,629$
2011 Capital Campaign - $ - $ -$
Profit/(Loss)64,335$ 66,700$ 65,629$
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V. Attendance Report—Current Statistics and Recent History
These numbers come from our ticket sales as well as our “drop count” at every event. We use the
drop count numbers when the event is free. We use ticket sales numbers for all events sold
through the Englert box office.
2015 Attendance Total: 66,558 (~77,000 including festival programming)
Englert Presents – Tickets Sold: 39,404
Englert Presents – Free/Non-Ticketed Events: 5,713
Rental Attendees (both ticketed and free events): 22,441
2014 Attendance Total: 63,189
Englert Presents – Tickets Sold: 26,481
Englert Presents – Free/Non-Ticketed Events: 3,103
Rental Events: 33,605
2013 Attendance Total: 57,641
Englert Presents – Tickets Sold: 30,756
Englert Presents – Free/Non-Ticketed Events: 4432
Rental Events: 22,453
2012 Attendance Total: 52,781
Englert Presents – Tickets Sold: 26,322
Englert Presents – Free/Non-Ticketed Events: 3,652
Rental Events: 22,807
2011 Attendance Total: 51,617
Englert Presents – Tickets Sold: 20,792
Englert Presents – Free/Non-Ticketed Events: 3,748
Rental Events: 27,077
2010 Attendance Total: 45,913
Englert Presents – Tickets Sold: 17,622
Englert Presents – Free/Non-Ticketed Events: 1,478
Rental Events: 26,813
2009 Attendance Total: 30,297
Tickets Sold: 9,877
Non-ticketed attendees (lectures and other rentals): 20,420
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Ticket Purchase Demographics 2013-2015:
These figures are gathered from online credit card sales and phone order sales. They only tell part
of the story of customers who have come to the Englert. Other methods of purchasing tickets are
not accounted for in this review. These figures show a strong base of support for Englert events
from the immediate community as well as steadily increasing support from other areas.
Englert Theatre Customers 2015 (through May 2015)
Total Johnson County: 60%
-Iowa City: 48%
-Coralville: 6%
-North Liberty: 4%
-Other Johnson County: 2%
Total Non-Johnson County: 30%
-Cedar Rapids/Marion: 8%
-Other Iowa: 22%
Out-of-State: 10%
Englert Theatre Customers 2014
Total Johnson County: 63%
-Iowa City: 49%
-Coralville: 8%
-North Liberty: 4%
-Other Johnson County: 2%
Total Non-Johnson County: 30%
-Cedar Rapids/Marion: 9%
-Other Iowa: 21%
Out-of-State: 7%
Englert Theatre Customers 2013
Total Johnson County: 66%
-Iowa City: 51%
-Coralville: 8%
-North Liberty: 4%
-Other Johnson County: 3%
Total Non-Johnson County: 27%
-Cedar Rapids/Marion: 8%
-Other Iowa: 19%
Out-of-State: 7%
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VI. Donor Relations
2011 Capital Campaign Sponsors: ACT, Benchmark, Inc., Hills Bank and Trust Company, Integrated
DNA Technologies, MidWestOne Bank, Rockwell Collins, University of Iowa Community Credit Union,
West Music
Annual Partners & Sponsors
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Arts Midwest
Applicance Barn
Arts Mission, Inc.
Basta Pizzeria Ristorante
Best Case Wines
Blick Art Materials
The Bywater Family Fund
Cedar Ridge Vineyards
City of Iowa City
Chait Galleries Downtown
Clinton Street Social Club
Country Stonemasons
Devotay
Deluxe Bakery
Fresh Food Concepts
Gannet Foundation
Gay & Chia
Hands Jewelers
HyVee
Iowa City Coralville Area Convention and Visitors Bureau
Iowa City Downtown District
Iowa Department of Cultural Affairs
Iowa Public Radio
MC Ginsberg
McDonough Structures
Mediacom
Moen Group
Motley Cow Cafe
New Pioneer Co-op
Nolte Academy
Oasis
Pediatric Associates of Iowa City and Coralville
Press-Citizen Media
Share/Sherton/Hotel Vetro
Takanami
Total Tree Care Iowa City
Trumpet Blossom Café
University of Iowa Community Credit Union
Washington Country Riverboat Foundation
Yotopia Frozen Yogurt
Zephyr
Friends of the Englert (Individual Donors): 1473 households as of May 31, 2015 (May 2014:
1308; May 2013: 855; May 2012: 485; May 2011: 200)
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VII. Englert Theatre in the Greater Marketplace
Englert programming and development in recent years has positioned the theater on
relatively equal ground to other theaters, performing art spaces, and concert venues in the
Midwest. In some instances, the Englert’s event schedule exceeds the quality of events of
other theaters in competitor markets. It is important to note that the theaters, performing
arts spaces, and other venues we compete with often have larger capacities (1000+) or
exist in cities with populations larger than Iowa City (70,000 pop.) Despite these possible
limitations the Englert has the potential to further rival the programming found in other
markets, thus making Iowa City a more desirable location for current residents, potential
new residents, and other Iowans seeking a venue for cultural events.
Competitor Markets for Arts Programming in the Midwest
City Population
Chicago, IL 2,800,000
(Sample venues: The Metro, Goodman Theatre, Vic Theatre)
Minneapolis / St. Paul (Twin Cities), MN 2,800,000
(Sample venues: The Orpheum, First Avenue / 7th St. Entry)
Omaha, NE 400,000
(Sample venues: Orpheum Theatre, the Slowdown)
Champaign-Urbana, IL 200,000
(Sample venues: Krannert Center, Canopy Club)
Des Moines, IA 200,000
(Sample venues: Hoyt-Sherman, People’s)
Madison, WI 200,000
(Sample venues: Majestic Theatre, Overture Center)
Sioux Falls, SD 150,000
(Sample venues: Washington Pavillion)
Lawrence, KS 100,000
(Sample venues: Granada, Bottleneck, Lawrence Arts)
Columbia, MO 100,000
(Sample venues: Blue Note, Missouri Theatre)
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VIII. Future Strategic Plans
Operational Review
The Englert is in a transitional phase. We are closely assessing our capacity for future
growth and sustainable operations. This involves staff and board review of our key
revenue sources: fundraising, programming, and rentals. Over the course of 2015 – 17,
we will continue to develop a plan for an Englert operation that allows the organization to
meet the promise of its mission and vision as well as remain financially viable. From staff
level to the board, we are engaging this challenge very seriously and we are aware that
the systems we set in place now will have an important effect on the health of our
organization and the cultural landscape of downtown Iowa City for years to come.
Iowa City’s arts ecosystem is experiencing acute change driven by the reintroduction of
two University of Iowa venues – Hancher, School of Music – and the eventual expansion
of FilmScene and other initiatives. Furthermore, ongoing development in neighboring
communities like Coralville, Cedar Rapids, and North Liberty will increase the field of
options for consumer spending and community engagement. The Englert is continually
assessing and preparing for this changing landscape through both the clarification and
diversification of our brand. In both our short- and long-term plans, we predict that there
will be a need for non-University associated, downtown Iowa City arts initiatives to unite
in an effort to enliven fundraising opportunities, enrich cultural offerings, and bolster
community awareness of and access to our various programs.
Capital Campaign
Looking beyond our year-to-year operation, we are also developing plans for a capital
campaign which will address a series of exciting improvements for our space – installing
next generation sound + light equipment to enhance all performance experiences,
potentially developing our rooftop space for public and private use, redesigning various
aspects of our exterior façade and interior space to strengthen both the consumer and
visiting artist experience – as well as meet structural needs that have not been addressed
since the early 2000s renovation.
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Date: January 27, 2016
To: Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Re: Agenda Item #7: Consider a request for Funding from Mission Creek
Iowa City’s Mission Creek Festival is requesting $20,000 in funding assistance from
Community Development Assistance funds for FY17 and a request to budget the same
amount in FY18. This is a 60% increase over last year’s $12,500 level, due entirely to
the planned expansion of the festival. The 2016 Festival, April 5-10, will be the 11th
annual Mission Creek Festival and will continue a tradition of featuring fine music,
literary, film and culinary culture in more than 20 venues downtown Iowa City, including
the Blue Moose Taphouse, the Englert Theater, FilmScene, Gabe’s, Prairie Lights and
this year, Hancher and the School of Music. Recent additions to the festival include a
series of events for youth and a mini-tech + innovation conference. It is designed to
appeal to audiences of all ages and cultural backgrounds.
The event provides a venue for Iowa artists to be exposed to national attention and for
nationally recognized artists to gain an Iowa audience. The resulting coverage
increases Iowa’s presence in the national scene and Iowa City as the cultural center of
the upper Midwest.
In 2015, the festival again hosted approximately 10,300 people, featured 295 musicians,
90 writers and 6 chefs. Of those, 130 musicians, 57 writers and all of the chefs were
Iowa-based.
There is broad support from businesses and our non-profit community, local radio
stations, media and several facets of the University of Iowa. Notably, local restaurants
are very strong contributors, an indicator that Mission Creek is good for their bottom
lines. With such broad community support, a growing program and increasing notoriety
the festival’s influence reaches far beyond the Creative Corridor.
Staff is recommending support of this request. Mission Creek Festival helps to
strengthen our core urban area and offers increasingly diverse programming while
building upon the Creative Corridor brand.
Please feel free to contact me with questions. Andre Perry, Mission Creek festival
director, will also be in attendance at your meeting.
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January 29, 2016
To the Economic Development Committee:
I am writing to submit a report on the continued progress and growth of Mission Creek Festival in the past
year as well as to request funding in the amount of $20,000 for Mission Creek Festival 2017 as well as
the 2018 festival. Our festival continues to grow in positive ways from year to year and the 2017 – 2018
festivals will be milestone years as we grow the scope and capacity of our programming and attendance
with the additions of Hancher and the School of Music as core performance venues. We anticipate our
operational budget will grow by approximately 60% from 2016 to 2017 and we plan to increase annual
festival attendance to 15,000/year by 2018. Our increased request of funding directly reflects our
anticipated growth in FY2017 – 18.
With a focus on music, literature, film, art, youth outreach, and food culture, Mission Creek Festival
provides the greatest opportunities for Iowa-based artists to perform their work as well as for Iowa-based
patrons to see nationally and internationally-regarded artists. Our literary arm is the longest-running
literary festival in Iowa City. Our music programming consistently brings notable acts to Iowa City for the
first time, thus increasing our stature amongst prominent artist booking agents. This past year’s festival
featured legendary filmmaker Jim Jarmusch, acclaimed author Kiese Laymon, NPR radio host Jad
Abumrad, and indie-rock band Father John Misty. Mission Creek Festival continues to garner positive and
strong regional coverage as well as national coverage from publications in the music and literary worlds,
thus increasing the spotlight on Iowa City as a cultural center. We believe Mission Creek does important
work in putting Iowa City on the map as a place to be, a place to live.
We continue to expand our programmatic offerings and have increasingly included comedy, food culture,
visual arts, film, tech and innovation, local crafts, and youth outreach as part of our festival experience.
Our partnership with the Englert Theatre as our producing agent has been successful and will us expand
in these important upcoming years. We are extremely thankful for the ongoing support from the City of
Iowa City. This document includes some of the basic information about the organization including past
year data, future budgets, and staff bios. We encourage you to engage us with feedback and questions
about the future of the festival.
Thank You,
Andre Perry
Mission Creek Festival, Director
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I. Organizational Information
Organization: Mission Creek Festival
Event: Mission Creek Festival / http://missionfreak.com
Dates: Every April / Attendance: ~10,000/year
Contact: Andre Perry / 221 E. Washington Street, Iowa City, IA 52240
319-688-2653 x108 / andre@englert.org
About
Founded in 2005, Mission Creek Festival is an annual week-long festival that takes place every spring in
Downtown Iowa City. The festival is dedicated to inspiring and building the Iowa City area’s artistic
communities through the exposure of local, regional, national, and international artists. The programming
focuses on literary readings, music performances, public lectures, film screenings, local food culture,
educational outreach, and a tech + innovation mini-conference. The festival serves audiences of all ages
and cultural backgrounds. The festival also utilizes the existing cultural geography of our town –
bookstores, clothing stores, cafes, and performance spaces – turning the downtown area into an easily-
navigated nexus of music, art, and transformative experiences. In 2017 -18, the festival will experience
significant growth as we work with Hancher to add it as a premier performance venue for the festival.
The primary objective of the Mission Creek Festival is to enhance the quality of life in the community
through diverse arts programming that caters to young and creative individuals, traditional patrons of the
arts, and general members of the community. It is our belief that students, professionals, new transplants,
young families, and lifelong residents can work together to infuse a community with vitality. In our
continuing dedication to new and progressive art forms, as well as broadening the scope of the festival to
include initiatives like local food culture and educational outreach, we present festival artists and
attendees with programming experiences uncommon in the Southeastern Iowa cultural landscape.
Consequently, our festival increasingly draws comparisons to nationally recognized events like South By
Southwest in Austin, Texas and Litquake Festival in San Francisco, California.
This festival has literally grown from “the ground up,” with the support of local and regional businesses
that continues to sustain us. Many of our sponsors have noted how our event not only deepens the
cultural fabric of the Cedar Rapids/Iowa City “Corridor,” but also drives residents and revenue toward
locally-owned shops and restaurants. We work closely with our local business partners and sponsors to
assess needs, measure outcomes, and arrange in-kind and promotional donations that highlight the
area’s resources and services.
2015 Festival – Quick Facts
Attendance: 10,300 (3-year average: 10,000)
Number of featured musicians: 295 / Number of featured writers: 90
Number of Iowa-based musicians: 130 / Number of Iowa-based writers: 57
Number of Iowa-based chefs: 6
Venues in 2015 (23 venues): The Englert Theatre, Blue Moose, The Mill, Gabe’s, Prairie Lights,
FilmScene, RSVP, Clinton Street Social Club, Revival, Yacht Club, Deadwood, Nodo, Beadology, Motley
Cow, Dublin Underground, White Rabbit, Hotel Vetro, Steven Vail Gallery, Trumpet Blossom Café,
Pullman Diner, The Dream Center, Devotay, Leaf Kitchen
Sponsors in 2015 (22 sponsors / 79.5K in sponsorship funds): University of Iowa Community Credit
Union – TITLE SPONSOR, City of Iowa City, West Music, Iowa City Sheraton, Iowa City/Coralville
Convention and Visitors Bureau, Iowa City Area Development Group, New Belgium Brewing, Jim Beam
Global, Little Village, The Iowa Review, Meta Communications, Digital Artefacts, Motley Cow, Devotay,
Deluxe Bakery, Iowa Public Radio, Iowa City Downtown District, Tuesday Agency, and University of Iowa:
Hancher, SCOPE, KRUI, Lecture Committee
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Selected Past Festival Performers/Writers/Lecturers (2006 – 2014): Jad Abumrad, Father John Misty,
Cameron Esposito, Kiese Laymon, Real Estate, Philip Glass, Laurie Anderson, Rachel Kushner, Jason
Isbell, The Head and the Heart, Hannibal Buress, Grizzly Bear, David Cross, Tig Notaro, Bon Iver, Beach
House, the Magnetic Fields, Guided By Voices, Thurston Moore & Kim Gordon of Sonic Youth, John
Waters, Patty Griffin, Greg Brown, Pieta Brown, Bowerbirds, GZA/Genius, Public Enemy, Divine Fits,
Thao & The Get Dow Stay Down, the Mountain Goats, Dan Deacon, Fruit Bats, Zola Jesus, No Age, the
Antlers, Camera Obscura, Tilly and the Wall, Sharon Van Etten, Colson Whitehead, Aleksander Hemon,
Charles D’Ambrosio, Edmund White, Eula Biss, Tim Hecker, Rhys Chatham, The Meat Puppets, William
Elliott Whitmore, D.A. Powell, Booker T., Kiki Petrosino, and hundreds more…
Future Goals:
-Expansion of festival by providing high-quality programming for niche interest groups – tech, literature
music – as well as hybrid programming to create connections between these different groups. Looking
towards the 2017 expansion with the addition of Hancher as a new venue.
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II. Mission Creek Festival Budget Overview FY2016
Revenue 2017 (budget) 2016 (budget) 2015 (actual)
Festival pass sales: 27,500 17,500 17,340
Individual tickets sales: 220,000 100,000 91,928
Sponsorships – cash: 90,000 75,000 79,500
Annual Giving 15,000 15,000 12,315
NEA Grant 10,000
Concessions: 10,000 10,000 16,636
Total revenue: 362,500 227,500 217,719
Expenses
Staffing: 42,000 30,000 27,350
Programming & Outreach: 249,500 149,500 154,094
Marketing: 5,500 5,000 4,600
Administration, Production: 14,500 8,500 9,892
Concessions: 3,000 3,000 4,990
Total costs: 314,500 196,000 200,926
Net/(Balance): 48,000 31,500 16,793
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III. Staff Bios
Andre Perry, Festival Director
Andre Perry lives in Iowa City where he serves as the Executive Director of the Englert Theatre, a 101-
year-old performing arts space in the heart of downtown. He is also the co-founder and director of the
Mission Creek Festival, a weeklong exploration of music, literature, and food culture that inhabits
established venues as well as non-traditional performance spaces in Iowa City. Perry received his MFA
from the Nonfiction Writing Program at the University of Iowa (2008) and his BA in English from Princeton
University (2000). He continues to write and publish in the field.
Joseph Tiefenthaler, Associate Programming Director
Joseph M. Tiefenthaler is a native Iowan and serves as the Executive Director of FilmScene, an
independent non-profit movie theater in downtown Iowa City. He received his BA in English from the
University of Iowa in 2005 and worked at the University of Iowa’s International Writing Program for seven
years where he coordinated the annual Fall Residency Program – effectively serving as the cultural
ambassador from Iowa City for roughly 30 writers from around the world. He is also the Editor-at-Large for
acclaimed literary journal, Wag’s Revue.
Christopher Wiersema, Associate Programming Director
Leaving a position at Chicago’s Newcity magazine, where he covered arts and culture, Chris relocated to
Iowa City in 2001 and found a fertile arts community that offered encouragement, collaboration, and
enthusiasm. Noticing a deficit in avant-garde music programming, Chris began a music promotion
company, Outsound Productions, with little more than his email, a clutch of extension cords, the promise
of a home-cooked meal, and tacit permission to use a closed downtown business as a venue. Since then
his productions have occupied traditional and non-traditional venues alike. The scope of his musical focus
now includes myriad genres and he has hosted artists, composers, and musicians from around the world.
Chris previously served as manager of local music venue, the Picador. He has studied at Columbia
College and the School of the Art Institute of Chicago.
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