HomeMy WebLinkAboutCCEDC Agenda 4-12-16.pdfAgenda
City Council
Economic Development Committee
Tuesday, April 12, 2016
12:00 p.m.
City Manager’s Conference Room
City Hall
1.Call to Order
2. Consider approval of minutes from the February 2, 2016 Economic Development
Committee meeting
3. Update from EDC, Inc.; consider request for $25,000 in funding for FY18
4. Discussion of the $50,000 CDBG FY17 Economic Development Set-Aside(Tracy Hightshoe)
5. Consider process for amending City’s Tax Increment Finance (TIF) policy
(Wendy Ford, Geoff Fruin)
6.Strategic Plan item discussion: Significantly improve the Council and staff’s abilityto engage with diverse populations
7.Staff report
8.Committee time
9. Other business
10. Adjournment
EDC 4.12.16 packet page 1
MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 4, 2016 CITY MANAGER’S CONFERENCE ROOM, CITY HALL, 12:00 P.M.
Members Present: Rockne Cole, Susan Mims, Jim Throgmorton Staff Present: Wendy Ford, Eleanor Dilkes, Tom Markus, Geoff Fruin, Tracy Hightshoe,
Others Present: Mike Frantz (Community Investors); Peggy Slaughter (Midwest Realty);
Tom Frantz (Frantz Investors)
RECOMMENDATIONS TO COUNCIL: Throgmorton nominated Mims for the position of Chair. Cole seconded the motion.
The motion carried 3-0. Cole moved to recommend the request to the full City Council for the City of Literature for
$60,000, per the discussion. Throgmorton seconded the motion. The motion carried 3-0.
Cole moved to recommend the request to the full City Council for a funding request for the Englert Theater for $70,000, per the discussion.
Throgmorton seconded the motion. The motion carried 3-0.
Cole moved to recommend the request to the full City Council for a funding request for the Mission Creek Festival for $ 20,000, per the discussion.
Throgmorton seconded the motion. The motion carried 3-0.
Throgmorton moved to adjourn the meeting at 1:50 pm. Cole seconded the motion. Motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by staff member Wendy Ford at 12:01 P.M.
ORGANIZATION OF COMMITTEE:
Ford noted the need to entertain a nomination from the Committee Members for a Chair.
Throgmorton nominated Mims for the position of Chair. Cole seconded the motion.
The motion carried 3-0. CONSIDER APPROVAL OF MINUTES:
Next the minutes of the December 15, 2015, meeting were reviewed.
Throgmorton moved to approve the minutes as presented.
EDC 4.12.16 packet page 2
Cole seconded the motion. The motion carried 3-0.
ECONOMIC DEVELOPMENT COMMITTEE ORIENTATION AND BACKGROUND:
Ford proceeded to give Members some background on the Economic Development Committee. Speaking to the history of Economic Development, Ford stated that in 2007 she became the first full-time Economic Development Coordinator. Before that time, the position was one that was
split between two or three staff members in the Community Development department. The main goal of Economic Development is to help build the tax base and to help foster a community that supports growing businesses. This means higher wages and more economic activity for both the
private sector and the public sector, which is good for everyone.
Ford noted that Economic Development used to be all about bringing new jobs into the area, but
that now the focus is more on creating a community that is attractive to prospective employees, in order to build the workforce in the area. In this vein, economic development work now
includes ensuring a physically attractive community, a community that would support
entrepreneurial business, mid-sized businesses, and also those businesses that are mature and need to continue to grow and hire new employees. Ford stated that this means economic
development work includes helping to build upon the cultural identity of Iowa City, as well. To
those ends, she has served in an ex-officio role on the boards of the Summer of the Arts, Englert Theater, City of Literature and the Iowa Downtown District. Ford described some of the day-to-
day activities including fielding calls from would-be entrepreneurs to developers and business owners. She gave some recent examples of businesses she has worked with and the range of questions staff answers. She noted that staff also works closely with groups such as ICAD, the
Chamber, the Convention and Visitors Bureau, and also with regional groups such as the Corridor Business Alliance.
Ford noted the two program budget lines in Economic Development are the Community Development Assistance line and the Economic Development Assistance line of the budget. The
Community Development Assistance line has typically funded organizations such as Englert
Theater, Riverside Theater, Film Scene, while the Economic Development Assistance line is for funding opportunities that arise during the year. This line has traditionally been funded with
$100,000 per year and been used for projects like the food enterprise kit, a resource kit for those
interested in using commercial kitchen facilities and growing those skills into a marketable business at the 1105 Project. It has also been used to fund such things as the Meta
Communications parking incentive.
On page 8 of the meeting packet, Ford pointed out a table showing incentives or funding
assistance that has been provided over the last seven years. She wanted this to give Members an idea of what Economic Development has done in the past, especially in light of today's financial requests. Ford noted that she also included the slides from Tracy Hightshoe's slide
program that shows the before and after pictures of the investments that were made using the 'Building Change' program over the last three years. This program has helped to leverage a
relatively large investment from the private sector downtown, according to Ford.
Cole then asked questions about the funds, specifically about the difference between these two and how they are used. Ford noted that the Community Development fund is one that has
longer standing commitments typically, whereas the Economic Development assistant line is
funded with $100,000 each year and is sometimes referred to as the 'Economic Development Opportunity Fund,' for opportunities to assist in Economic Development endeavors during the
EDC 4.12.16 packet page 3
fiscal year. Throgmorton thanked Ford for the table noting that this summary is very helpful and that he had not seen this information in this format before.
Next, Ford talked about the City’s Economic Development policies, noting that the last update was in April of 2014. She added that the changes made in 2014 were an effort to align with the
Strategic Planning priorities. She anticipates with the new City Council Strategic Priorities coming forward in the next month or so, that this will guide the Committee as they contemplate updating policies going forward. One change made in 2014, according to Ford, was the
statement that any TIF request would only be considered in a rebate form. She noted that Members can see this manifested in the table on page 8. Cole asked if they are categorically ruling out 'money up front TIFs' at this point. Mims stated that the policy states the preferred way
is rebates, and that an applicant would need to have a pretty compelling reason to receive funds upfront.
Throgmorton noted in the Council’s strategic plan update, there will be more emphasis on sustainability, social justice, racial equity, and inclusivity. He added that he believes they will
need to revisit the Economic Development policies and try to think through how they can
reasonably be modified in such a way as to more directly take these values into account. Cole agreed with Throgmorton's statement, adding that the policy needs more clarity and the need to
educate the development community about it. Regarding TIFs, Cole noted his concerns in the past with 'money up front,' but that he believes there might be circumstances under which he could support this. Throgmorton also added in considering changes to the Economic
Development policies, that how we interact with the Chamber, with ICAD, and also with regional economic development organizations should be considered. He suggested changes may be subtle, but he believes they need to be cognizant of these.
Ford continued, noting that she also included a couple of educational pieces that she uses with developers. She noted Markus' leadership in the area of engaging a financial analyst non-profit
organization called the National Development Council (NDC) to help staff analyze projects for any type of financial incentive. She noted how important this work is and with NDC's assistance,
how thorough and objective we are able to be. Markus spoke briefly about the importance of
financial analysis, and how the NDC partnership really helped develop a 'gap analysis' process for the City. He continued to explain the gap analysis to Members, noting that very few cities in
Iowa use this excellent tool. Markus also noted that the City has had to turn away developers
once this gap analysis was performed, as the project did not meet the City's criteria for TIF need. He added that what they need in a policy, therefore, is a consistent approach, and if changes are
made, there is a strong reason to do so. Ford spoke briefly about the national training program that the NDC offers. Ford and Hightshoe have completed the training, while Simon Andrew and Kris Ackerson are currently taking the training. Markus continued to tout the benefits of the gap
analysis tool and how prudent the City has been in its use of TIF.
Ford then shared a slide show that further explained what TIF is and also what it is not. Projects
meeting the City's TIF requirements are those with high quality architecture; have a level of sustainability higher than code requires; and include affordable housing if a residential project in the Riverfront Crossings area. Ford noted that there are 12 TIF districts in Iowa City.
Throgmorton noted the chronological pattern, especially along Highway 6 and wondered whether the various TIF districts cohere as a whole now, even though each district was created at
different times for particular purposes. He gave some examples, wondering if these various
districts could in some instances be thought of as a whole. Markus responded, noting that there is a fixed period of time available in each TIF district, and that as development occurs, timing
becomes a critical part of how you develop one of these districts with that fixed period in mind.
Ford and Markus responded to Member questions regarding TIFs and urban renewal districts,
EDC 4.12.16 packet page 4
and how they work within the city. Continuing, Ford explained the process used when a developer inquires about TIF for a project.
Ford referred to a list of TIF projects within the city, noting the increase in property values in City-assisted TIF projects. She responded to Member questions, further explaining the totals shown
in the table of TIF-funded projects. Cole asked if dilution of market share was part of the evaluation when assisting business. Markus and Fruin responded that TIF applications are required to include market studies to help in the evaluation. Throgmorton then spoke to the
urban renewal report the Council received last year, noting that having the table helps to clarify, for him, what exactly is taking place with these TIF projects. He added that they also need to find better ways of communicating the ideas embedded in both the table and the map. Ford shared
that she always tries to give an illustration of how the process works, as well, so that she can show the 'before' and 'after' effects of a particular project from a property value standpoint. She
gave Members several examples of this, noting that the other taxing jurisdictions are taken into
consideration in Iowa City's model. Ford continued to clarify Iowa City's TIF policy and the accompanying table and map, giving examples of projects that have been undertaken and how
well these projects have progressed per staff's expectations. Ford also spoke to other
communities within Johnson County who use TIF and the difference between their use and Iowa City's. Markus and Fruin gave Members some further history on TIF and its uses, as it was
originally meant to be used. Markus also spoke to the bond rating analysis done on cities, noting that neighboring jurisdictions do not do well in this area due to their vast use of TIF for debt service. He noted, Iowa City continues to maintain its triple-A bond rating. Wrapping up her slide
presentation, Ford showed Members the specifics of the City's tax levy, its implication in school funding and a comparison of Iowa City’s and Coralville’s impact on the state budget to backfill the school district a portion of TIF revenues diverted from schools.
Throgmorton thanked Ford for the presentation, noting that it was extremely helpful and informative. He also stated that he wanted to throw out an idea for both the Committee and staff
to think about. The idea is to schedule a one to two-hour meeting, that would be televised, in which Ford would go through the slide presentation, as she just did for the Committee, and
where the Council would invite those who have been skeptics of TIF to attend this meeting so
that they can observe and ask questions about TIF. He would like to see a dialogue on how TIF about it and hear how folks think the City is doing with its use of TIF, in an effort so that the public
can come to a better understanding of how Iowa City uses TIF. Cole spoke again to the
communication issue and how they might better facilitate this.
CONSIDER ANNUAL REPORT AND REQUEST FOR FUNDING FROM CITY OF LITERATURE (John Kenyon, Executive Director):
John Kenyon, Executive Director, and Eileen Johnson, Chair of the City of Literature Board, were
both introduced. Ford introduced the request, noting the City of Literature has requested $60,000 for FY17. This would include what has been a regular funding of $50,000 per year since
its inception, plus $10,000 for the book festival, which a few years ago was moved from the
University of Iowa Library to the City of Literature. Ford stated that Kenyon would give Members some background on the City of Literature organization and answer any questions on this year’s
funding request. Kenyon spoke to Members, thanking the Committee for hearing their request. He began by explaining that the Iowa City UNESCO City of Literature organization is an independent 501c(3) that manages the City's designation as a City of Literature. Iowa City is the
third city in the world to be given this designation and has had this designation since November of 2008. Continuing, Kenyon explained how the organization was set up and the driving force
behind it. He also explained what the organization does, and the type of programming and
advocacy that takes place throughout the year.
EDC 4.12.16 packet page 5
Cole moved to recommend the request to the full City Council for the City of Literature for $60,000, per the discussion.
Throgmorton seconded the motion. The motion carried 3-0.
CONSIDER ANNUAL REPORT AND REQUEST FOR FUNDING FOR ENGLERT THEATER (Andre Perry, Executive Director):
Andre Perry, Executive Director and Bill Thomason, finance director, from the Englert Theater
were introduced. Ford noted that the Englert has submitted their request for funding for FY17, with a request to also keep a placeholder for them in FY18 and FY19 budgeting process. Ford
noted that a few years ago the Englert increased their request from $50,000 to $70,000, with the
idea that $20,000 of this amount would be used for capital improvements. She noted the capital improvements over the last couple of budget cycles have included significant roof repairs, the
renovation of the second floor gallery/lounge and the addition of a concession station on first
floor. Ford pointed out how the Englert has grown, with a current budget of just over $1.5 million per year. Ford turned the floor over to Perry. He began by explaining the mission of the Englert
and how they bring in entertainment for the community, but also perform outreach in terms of
supporting other non-profits and partner with them in programming. The Englert sees approximately 65,000 patrons a year, and are selling around 35,000 tickets each year, as well.
Working with other non-profits, the Englert is able to give away approximately 5,400 tickets each
year. Perry noted that they are also working on various revenue streams, such as increased rental of space, in order to off-set the withdrawal of the University uses. Lastly, Perry noted that
a new festival was started last fall – the Witching Hour. He stated that it was well received and they hope to grow festivals such as this. Cole suggested considering the use of matching funds in future fundraising efforts.
Cole moved to recommend the request to the full City Council for a funding request for
the Englert Theater for $70,000, per the discussion. Throgmorton seconded the motion. The motion carried 3-0.
CONSIDER ANNUAL REPORT AND REQUEST FOR FUNDING FOR MISSION CREEK (Andre Perry, Co-Founder and Producer):
Ford noted that Perry is also present for the Mission Creek Festival request for funding. Perry spoke to this request, noting that the City has been very supportive with this festival in the past.
He gave new Members a brief history of the festival, noting that it is a six-day festival that takes
place in downtown Iowa City, using both traditional and non-traditional performing spaces, and offers programming across a range of mediums – music, literature, comedy, art, food culture,
tech – to name a few. This will be the 11th year of the festival. The past three years Mission
Creek has worked with the Englert in providing administrative support and helping to keep things running smoothly. Perry then spoke to some of the emerging areas of their festival and how they
hope to make their mark. He also spoke briefly to the outreach that takes place, such as with The Dream Center. Perry noted that this request is for $20,000, which is an increase. They will be seeing some shifts in their funding in 2017 and this is planning ahead for that and the
collaboration with the Englert Theater.
Cole moved to recommend the request to the full City Council for a funding request for the Mission Creek Festival for $ 20,000, per the discussion. Throgmorton seconded the motion.
The motion carried 3-0.
EDC 4.12.16 packet page 6
STAFF REPORT:
Ford noted she brought along a list of financial resources that staff uses when helping local businesses. Markus stated that the reason Mike and Tom Frantz and Peggy Slaughter are
present is because he wanted them to observe the EDC in process, as they will most likely be the new owners of the Moss property development. He noted that they will be meeting with staff after the EDC meeting. Throgmorton then asked Ford if she would provide him with a hard copy
of today's slide presentation. At this point Mike Frantz spoke to the Committee, touching briefly on TIFs, gap analysis, and
types of investment that take place in the community. He agreed that these are very important topics for the community to understand. He stated that he hopes they can come to an
agreement with the City, something that may be outside of the normal development perspective.
COMMITTEE TIME:
None.
OTHER BUSINESS: None.
ADJOURNMENT:
Throgmorton moved to adjourn the meeting at 1:50 pm. Cole seconded the motion.
Motion carried 3-0.
EDC 4.12.16 packet page 7
Council Economic Development Committee
ATTENDANCE RECORD 2016
NAME
TERM EXP.
0
2
/
0
4
/
1
6
Rockne Cole 01/02/18 X
Susan Mims 01/02/18 X
Jim Throgmorton
01/02/18 X
Key: X = Present
O = Absent O/E = Absent/Excused
EDC 4.12.16 packet page 8
Date: April 5, 2016
To: City Council Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Re: Request from EDC for annual funding
Introduction:
The Entrepreneurial Development Center, Inc., more familiarly known as EDC, Inc. was founded
12 years ago with a mission to improve the economic vitality of the region through the creation
and growth of high-impact, scalable entrepreneurial businesses. While they are based in Cedar
Rapids, they serve businesses on both ends of the Creative Corridor and meet clients at the IC
CoLab whenever requested.
A year ago EDC requested annual support from the City of Iowa City in the amount of $25,000.
At a meeting on March 30, 2015 the City Council Economic Development Committee voted to
recommend three years of funding to the full City Council, prorating year one (FY15) to 25%, or
$6,250, FY16 at $25,000 and intent to budget $25,000 in FY17. City Council approved this with
Resolution 15-143 on May 5, 2015, and the FY17 request was ultimately approved in the
budgeting process. EDC, Inc. returns to you at the April 12, 2016 meeting with an annual update
and request that funding be budgeted for FY18.
History/Background:
The EDC’s function is to connect entrepreneurs with the full range of business expertise to
enable high potential businesses to grow and thrive. Curt Nelson, President and CEO, has
developed a “recipe for business success” which EDC uses in guiding business growth. In the
recipe, there are six ingredients: marketing, development, sales, operations, information
technology and finance. EDC’s approach is to ensure that clients have the right amount of each
ingredient. EDC gains an understanding of the client’s needs and provides the expertise by
building strategic networks for their clients. They are also well connected to financial resources
for their clients.
Discussion:
The City of Cedar Rapids has maintained funding of $100,000 annually, the City of Coralville
just began funding at the $20,000 level, the City of North Liberty is investing $5,000 per year,
Hiawatha is providing $11,500 annually, and the U of I and the John Pappajohn Entrepreneurial
Center are committed to $20,000 each, per year. Additionally, the UI Vice President for
Research Office engages EDC on a case by case basis for specific work
Entrepreneurship continues to grow in the U.S. and cities that welcome entrepreneurs stand to
gain new employers, new employees and the economic benefits they bring. Iowa City has spent
the last several years building a community that fosters entrepreneurs. We assisted in getting
the CoLab off the ground which has proven critical to early stage support to some very
EDC 4.12.16 packet page 9
successful, highly scalable companies. We have provided a number of small entrepreneurs low-
to-no interest loans; we were substantial sponsors of Entrefest when it was in Iowa City, and we
are providing substantial support to ICAD as they move their offices and the CoLab and
combine forces with the University of Iowa to operate MERGE, a one-of-a-kind innovation
center in the heart of downtown.
It is clear that fostering a culture of entrepreneurship takes a lot of effort from a lot of
organizations -- ICAD, the UI Small Business Development Center, the City, the Chamber – and
organizations such as EDC, Inc. to provide the support necessary to a burgeoning
entrepreneurial community.
Recommendation:
Staff makes the following recommendations:
• Budget the requested $25,000 from the Economic Development Assistance line for
FY18.
• Include a budget “placeholder” for $25,000 in FY19.
• Request an annual update in a year.
EDC 4.12.16 packet page 10
EDC 4.12.16 packet page 11
EDC 4.12.16 packet page 12
EDC 4.12.16 packet page 13
EDC 4.12.16 packet page 14
EDC 4.12.16 packet page 15
EDC 4.12.16 packet page 16
EDC 4.12.16 packet page 17
EDC 4.12.16 packet page 18
EDC 4.12.16 packet page 19
Date: April 6, 2016
To: City Council Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Re: Economic Development Policies Update
Introduction
You have stated a desire to review and revise the Iowa City Economic Development (TIF)
Policies so I would like to begin that discussion at your meeting on April 12, 2016 and plan for
completing the review and revision in the coming weeks. For your reference, the latest version
of the policies, updated in April, 2014, follows this memo.
Background
Economic Development in Iowa City has access to several local incentive tools to achieve the
stated goals of Increasing the property tax base, fostering a good environment for
entrepreneurs, increasing economic activity, and attracting high quality jobs if aligned with
Council’s Strategic Planning Priorities, Urban Renewal Plans and/or Comprehensive plans.
Below is a brief overview of those financial incentive tools.
Economic Development Assistance Funds (aka ED Opportunity funds)
• $100,000 per year budgeted with general operating funds
• Examples: Little Village façade, Telepharm Parking incentive, Entrefest sponsorship
• Process: Written request to staff
• Approval: City Manager has spending authority for grants up to $50,000 (resolution 11-66);
common practice has been to forward the City Manager’s recommendation to EDC, which
may approve or recommend to City Council for approval. Staff would like to discuss the
EDC’s preferred approval process going forward.
Community Development Assistance Funds
• Funded amount varies per year; budgeted with general operating funds
• Examples: Englert Theater, City of Literature, Film Scene, Mission Creek
• Process: Written request to staff
• Approval: EDC Committee forwards recommendation to City Council for inclusion in
upcoming budget
CDBG Economic Development funds
• $50,000 of annual CDBG entitlement; HCDC approves amount each year in May, prior to
new fiscal year; EDC approves the use of the funds
• Examples: Building Change program, Title Boxing, Molly’s Cupcakes, Baroncini
• Process: Application required; projects must meet CDBG national objectives, and be an
eligible activity
• Approval: City Manager has spending authority
EDC 4.12.16 packet page 20
• Micro Loan Program
• Up to $5,000 loan; 3 years, 9% interest (or if <$2,000, 12 month term)
• Example: Community Serving Community Childcare
• MidwestOne funds the program, services loans, provides collection services, Iowa City’s
funds guarantee the loan/s
• Process: application, plus $25 application fee to City
• Approval: City staff; reports back to EDC
Tax Increment Financing (TIF)
• Amount: based on financial gap
• Examples: Towncrest Medical Office Building, Packaging & Provisions Building Rehab
(formerly Vito’s), Hilton Garden Inn
• Process: Application required; guided by Economic Development policies; full financial
analysis; public benefits required
• Approval: EDC forwards recommendation to full City Council
Next Steps
Our current Economic Development policies (see following document) have served mainly to
guide the use of TIF on private development projects.
While the policies cite City expectations in exchange for public financing, they lack the clarity
that developers often seek. The measure of specificity you consider for policy revisions should
be considered with the need for flexibility that is often required to respond to unique project
characteristics.
As an example of better clarity, staff is presenting proposed language for one element of a
revised Economic Development/TIF policy: Affordable Housing Goals in Economic Development
Policy (see memo following current Economic Development Policies). In part the result of a
months-long ad-hoc community committee discussion of inclusionary housing in Riverfront
Crossings, Doug Boothroy and John Yapp submit this to you for consideration of adoption into
your revised TIF policies.
At your meeting, let’s discuss the process for review and revision, the policy elements to be
reviewed and discussed, and a schedule for completion. Please feel free to contact me with any
questions.
EDC 4.12.16 packet page 21
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.
EDC 4.12.16 packet page 22
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
EDC 4.12.16 packet page 23
EDC 4.12.16 packet page 24
EDC 4.12.16 packet page 25