HomeMy WebLinkAbout11.20.12 IP - Chauncey RFP Finalist Proposals BookmarkedCITY COUNCIL INFORMATION PACKET
CITY OF IOWA CITY
www.icgov.org November 20, 2012
IP1 Council Tentative Meeting Schedule
NOVEMBER 26 WORK SESSION
I132 Work Session Agenda
IP3 Memo from Transportation Planner: Presentation of development proposals (Gilbert
Street / College Street)
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City Council Tentative Meeting Schedule
November 20, 2012mL
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CITY OF IOWA CITY
Subject to change
Date Time Meeting Location
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Monday, November 26, 2012 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, November 27, 2012 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, November 27, 2012 7:OOPM Special Formal Meeting Emma J. Harvat Hall
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Tuesday, December 4, 2012 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, December 4, 2012 7:OO13M Regular Formal Meeting Emma J. Harvat Hall
Friday, December 7, 2012 1:OO13M Special Formal /Ex. Session /Evaluation Emma J. Harvat Hall
Tuesday, December 18, 2012 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, December 18, 2012 7:OO13M Regular Formal Meeting Emma J. Harvat Hall
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Thursday, January 3, 2013 7:30 AM Work Session - Area Legislators Emma J. Harvat Hall
Saturday, January 5, 2013 8:OOA -5:OOP Work Session Meeting - BUDGET Emma J. Harvat Hall
Monday, January 7, 2013 1:00- 5:OO13M Work Session Meeting - BUDGET- CIP Emma J. Harvat Hall
Tuesday, January 8, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, January 8, 2013 7:00 PM Special Formal Meeting Emma J. Harvat Hall
Tuesday, January 22, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, January 22, 2013 7:00 PM Special Formal Meeting Emma J. Harvat Hall
Monday, January 28, 2013 5:00 PM Work Session Meeting - BUDGET Emma J. Harvat Hall
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Tuesday, February 5, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, February 5, 2013 7:00 PM Formal Meeting Emma J. Harvat Hall
Tuesday, February 19, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, February 19, 2013 7:00 PM Formal Meeting Emma J. Harvat Hall
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Tuesday, March 5, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, March 5, 2013 7:00 PM Formal Meeting Emma J. Harvat Hall
Tuesday, March 19, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, March 19, 2013 7:00 PM Formal Meeting Emma J. Harvat Hall
CITY OF IOWA CITY
410 East Washington Street
Iowa City. Iowa S2240 -1826
319) 356 -5000
3 19) 3S6 -S009 FAX
www.lcgov.org
City Council Work Session Agenda
November 26, 2012
5:00 PM
Emma J. Harvat Hall - City Hall
410 E. Washington Street
Presentation of development proposals for College Street/Gilbert Street
Sherman Associates — Option # 1
Chauncey Gardens
The Chauncey
4 Zero 4
Ryan / Iceberg
111 LjAAll
CITY OF IOWA CITY
MEMORANDUM
Date: November 19, 2012
To: Tom Markus, City Manager
From: John Yapp, Transportation Planner irr'
Re: Presentation of development proposals at the Nov. 26 City Council work session
Background
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On August 31s`, the City released a Request for Proposals (RFP) for the redevelopment of the
northeast corner of College St / Gilbert St. The properties on this corner have been assembled by the
City over time, and formerly included an auto repair shop, bus depot, sporting goods store, and other
uses. MidAmerican Energy owns a portion of the property proposed for redevelopment which is
occupied by an electric substation; this substation is proposed to be relocated in all the development
proposals.
We received nine proposals in response to the RFP. A review committee consisting of representatives.
from the City Council, City Manager's Office, City Attorney's Office, Dept. of Planning and Community
Development, and Dept. of Public Works and Engineering recommended five finalist proposals to invite
to give presentations to the City Council at its Nov. 26 work session, beginning at 5:00 PM. We held a
lottery to determine the order of presentations; the five finalist proposals are in the order they will be
presented, and do not represent a ranking:
Name (in the Primary Floors First Floor - Office Resident Dwelling Commercial Building
order they will be Contact tenant Floors Floors Units G.S.F. Gross
presented Nov identified S.F.
26
Sherman George 13 New Pioneer 1 11 132 units 52,624 199,223
Associates Sherman Co -op
Option #1
Chauncey Jesse Allen 18 New Pioneer 2 14 78 units 58,972 182,301
Gardens Co -op
The Chauncey Steve 20 Movie 3 15 inc. 35 hotel 127,032 283,322
Rohrbach theaters / hotel units / 69
Bowling floors residence
alley
4 Zero 4 Jake 8 Bike Library; 2 5 57 units 69,727 138,728
Christensen New Pioneer
Tim Co -op
Dwight
Ryan / Iceberg Marc 5 New Pioneer 0 4 59 units 24,800 69,100
Gullickson Co -op
and Jim
Bergman
November 20, 2012
Page 2
Presentation of finalist proposals and opportunities for public input
We have asked each development team to give a 20- minute presentation to the City Council at the Nov
26 work session, and plan on 15 minutes of discussion with the City Council about their proposal.
These presentations will be recorded and replayed on City Channel 4. We have also placed all five
proposals on the City website for public review at www.icgov.org /cgproiect, and have designated an
email address to which public comments to the City Council may be addressed at
cg pro lectinput(aD-iowa -citLr orq.
We will schedule verbal public input for the December 4 formal Council meeting, and will also collect
input from traditional regular mail. All input will be collected as correspondence -to- Council and
forwarded to Council in formal meeting packets over the next several weeks; input received before we
set up the email link for this project is attached.
Financial Information
Each proposal is different in terms of size, scale, number of commercial and /or office floors, and
number of residential units. Similarly, each proposal has identified differing degrees of financial
participation by the City, and each proposal has different implications in terms of taxable value.
We have asked staff from the National Development Council (the City's financial consultant) to review
the proposals in terms of financial implications, and provide general reaction appropriate for this stage
of the process (attached). Once a preferred concept and developer is selected, analysis and
negotiations will begin in earnest on a development agreement including any financial arrangements
with the City. At this stage, however, the attached information from the National Development Council
provides a first -blush reaction to the financial information in the proposals.
Decision - making
Following the presentations, collection of public input and responding to any additional requests for
information from the City Council, the City Council will be asked to select a preferred development
concept/developer. Staff recommends a second - most - preferred and perhaps a third be identified in
case a mutually acceptable development agreement cannot be reached with the preferred developer.
The criteria Council should use in determining a preferred concept include the criteria outlined in the
RFP document, consideration of public comment, consideration of the merits of each proposal, and
other factors deemed to be in the best interest of the City. The criteria in the RFP, which are consistent
with general downtown goals and City economic development policies, include:
Increasing the taxable valuation of property
Redevelopment of blighted property
Encouragement of desirable projects such as downtown hotels, workforce housing, arts and
entertainment venues, downtown grocery, class A office space, and similar uses
Encouragement of projects which result in increasing downtown destination points to continue to
draw people downtown
Providing a safe and inviting downtown for residents and visitors
Encouragement of housing opportunities for residents from a variety of age groups and income
levels
November 20, 2012
Page 3
Following selection of a preferred development concept/development team by the City Council, staff will
begin negotiating a development agreement with the preferred developer. At that point, staff will be
able to delve into more detail regarding potential financial incentives /need, and present a
recommendation to Council after review by the Economic Development Committee per normal process.
After selection of a preferred developer, there will be additional stages in the development process to
address specific issues or conditions including rezoning of the property (currently the property is zoned
P, Public), and sale /conveyance of the property to the preferred development entity. We anticipate
these processes will take several months.
Recommendation
Staff recommends proceeding with the process for City Council to select a preferred development
concept/preferred developer for the northeast corner of College St / Gilbert St:
November 15: Issuance of media release identifying the five finalist proposals, placement of the
proposals on the City website, and creating an email link for public input
November 26: Presentation of finalist proposals to City Council by development teams
December 4: Agenda item on City Council formal agenda for public comment
December 18: Agenda item on formal agenda for selection of a preferred development
concept/developer
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MEMORANDUM
Date: November 19, 2012
To: Jeff Davison, Director of Planning & Community Development, City of Iowa City
From: Raquel Favela, Director, National Development Council
Tom Jackson, Director, National Development Council
CC: John Yapp, Community Development Coordinator, City of Iowa City
RE: Private Developer for the College Street/ Gilbert Street Northeast Corner Site RFP Finalists
At your request, NDC has reviewed the materials submitted by the five finalists for the College /Gilbert
request for proposals (RFP). Because the responses propose developments that have not matured past
the conceptual phase, critical information necessary for a full financial analysis and the underwriting of
City gap financing assistance is not fully available at this time.
This lack of this information, including detailed and supported construction and soft cost estimates,
verified demand and market absorption rates for the proposed units, as- complete fair market
valuations, and private debt and equity financing commitments, isn't necessarily unreasonable at this
stage of the City's selection process. It does, however, suggest that a sensible apple to apples
comparison of each project's merits, with regard to its economic impact and /or need for City tax
increment financing or other gap filing support, cannot be completed at this time.
Further complicating the comparison:
Some of the proposals contemplate for -sale residential condos (in addition to commercial
condos for the coop relocation and office space in several), some residential is all rental (even if
legally defined as condominiums for property tax assessment purposes), and two proposals, The
Chauncey and Chauncey Gardens, have not clearly specified the mix between these two very
different options. Selling significant portions of a project as opposed to holding and managing
them collectively as a rental development for the foreseeable future provides very different risk
and return scenarios.
The quality of information provided with regard to operating revenue and expense assumptions
varied widely — from fairly complete information in the Ryan /Iceberg, Sherman Associates and 4
Zero 4 proposals to much abbreviated submissions for The Chauncey and Chauncey Gardens.
For Chauncey Gardens and The Chauncey, the respondents did not provide enough information
for NDC to develop and evaluate an operating pro forma or cash flow statements.
College /Gilbert Development RFP
November 19, 2012
Page 2
Given these limitations, we can offer the following observations on the three (3) proposals that provided
adequate information to support a preliminary underwriting analysis:
4 Zero 4 — the development team has proposed senior debt that is below the project's projected
capacity, but the combination of a relatively high equity investment and TIF support in the
amount of $5.5 million keep both cash -on -cash (CoQ returns and the overall internal rate of
return (IRR) at levels that support the gap request.
Ryan /Iceberg — the proposed private debt level matches, or slightly exceeds, the project's debt
capacity given common underwriting criteria for the Iowa City market. The requested level of
TIF support and relatively low equity commitment provide CoC returns and an IRR that exceed
market returns for projects requiring City assistance.
Sherman Associates (George Sherman) — has very aggressively sized the private debt
commitment and has identified an equity investment that provides modest CoC returns and a
reasonable IRR. For their Option #1— they indicate a willingness to pursue New Markets Tax
Credits or other options to close a remaining $6.3 million gap.
Again, the underwriting for any City assistance to the selected development team is very preliminary at
this point and will be continually refined as additional details on costs, revenues and financing sources
are pinned down. Toward this end, questions that should posed to each of the development teams
during the next phase of interviews should include:
What is the market demand for the unit / tenant mix you've proposed and what level of market
analysis did you use?
What lender underwriting criteria were used to determine your construction financing and
senior debt assumptions for the project?
How was the amount of TIF subsidized financing that you estimated calculated and what
repayment terms do you envision?
What is the Cash on Cash return you seek to achieve and what Internal Rate of Return are you
using to determine your equity investment? How do you feel this IRR relates to the risks and
benefits of developing properties in the Iowa City market?
Please let us know if you would like to discuss any of the points raised in this review prior to our next
scheduled visit to Iowa City on November 26, 2012.
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John Yapp
From: Erin Fleck <e.v.fleck @gmail.com>
Sent: Saturday, October 06, 2012 8:28 AM
To: John Yapp
Subject: Corner of Gilbert & College
Hello,
I am a long time resident of Iowa City. I grew up in Solon and I have been living in Iowa City since 2001. I am
31 years old. I have to tell you that the LEED platinum building is the clear winner for Iowa City. We must start
thinking and planning and building for the future and making environmentally stewardship one of our top
priorities. The LEED building does that.
Iowa City has the potential to be a model oasis of environmental sustainability (walk - ability, bike - ability,
amazing organic food, community engagement, etc.). The LEED buliding would define Iowa City in an
incredibly positive way. It would make the statement that Iowa City cares for the future. It would be both urban
in its scale and create density rather than sprawl AND it would be in harmony with its environment. That
harmony includes the building's ability to produce so much of its own energy, the fact that the 8 story height
matches the scale of the surrounding buildings, and the way the first floor businesses walk out into the park
creating a park -like entry into commercial space. I love that this the building is integrated into our community
on so many levels.
Also, the aesthetic of the building has enough in common with the other newer buildings of downtown Iowa
City that it fits in but it also is different enough that it contrasts to create a more complex overall aesthetic. The
drawing I can see reminds me very much of a couple of some new buildings in Portland, Oregon and that is a
very good thing. I am not afraid of modern architecture and I believe with preservation of our older buildings to
contrast with the more modern buildings we will have a beautiful Iowa City (unfortunately, so many of Iowa
City's buildings are architectural throw -aways or worse - -like the building on top of the old Red Avocado site).
Finally, the LEED building is a more appropriate scale for our city. The movie theatre proposal building is 20
stories. It dwarfs its surroundings and I think it just does not fit in that location or even any location in Iowa
City. At 20 stories, I believe that would be the tallest building near central downtown. I think that will look both
goofy and looming, a terrible combination. If the new buildings are going to harmonize with our older buildings
in a pleasing way then both need to be visible. There is beauty in the interplay between these different building
styles that will be erased if all the new buildings dwarf the old. I love the Jefferson Building. I love the Old
Capital. I never want them to be entirely hidden from view by huge new buildings. That would be an incredible
loss to our city. We should build on what we have, not obliterate it. I wish we had zoning that harmonizes
building heights -like Japan or other larger cities. Now that Iowa City is building up we need to update our
building/zoning codes to keep our city in balance.
Thank you for taking the time to read this email,
Eren
John Yapp
From: Joy Bayshore
Sent: Thursday, November 01, 2012 3:48 PM
To: John Yapp
Subject: Gilbert St. /College St.
In my mind, the plans for Chauncey Gardens and Iceberg Development Group are far and away the most visually
pleasing and adaptable to the space where the new building will be sited. The varied articulation breaks up what could
be just a glass box and softens the mass of the buildings, making them more in scale with the neighboring buildings
instead of the Monster on the Block. Lopping off a floor or two on the Iceberg Project would also bring it down to a more
moderate scale and lessen its massiveness. The materials on the buildings offer some variation also, offering something
a little different for the area.
With some more elevation drawings, the Burns /MDK building may have some merit, but it's impossible to tell from the
elevations provided.
The other projects are designs that don't fit into the heart of a small, Midwestern town like Iowa City, and would be as
disappointing as another of the 'made for students' brick block buildings lining Gilbert St.
I am just truly tired of so much uninspired, and sometimes ugly, architecture in this town and would like to see this
project become a centerpiece of loveliness for the downtown area instead of another eyesore.
Joy Bayshore
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PRIVATE DEVELOPER PROPOSAL FOR THE
COLLEGE STREET i GILBEF3 f STREET NORTHEAST CORNER SITE
SUBMITTED BY
JAKE CHRISTENSEN
TIM DWIGHT
JUSTIN DOYLE
TABLE OF CONTENTS
1) Letter
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2) Primary Contact Information ................... ..............................5
3) Legal Name and Address ............................ ..............................7
4) Identification of the Legal Identity ............ ..............................7
5) Organizational Chart ................................ ..............................8
6) Development Experience ......................... .............................13
7) Description of Finances.. ................... ..... ........_........_...........17
8) Visual Description ..................................... .............................22
9) Proposed 40
10) Letter of No Litigation (Exhibit B) ......... .............................41
11) References Enclosed
12) Please Review Page 5
13) Proposal Submittal Signature Form Enclosed
FOUR i ZERO i FOUR 2
LETTER OF INTENT
LETTER OF INTENT
Jake Christensen
506 3rd Street
Suite 200
Des Moines, IA 50309
City of Iowa City
Attn. John Yapp and Jeff Davidson
410 East Washington Street
Iowa City, Iowa 52240
Dear John and Jeff,
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Please accept this letter as formal interest from Christensen Development and partners Tim Dwight and Justin
Doyle to develop a minced use building on the site located at the intersection of College Street and Gilbert Street.
We have created an entity named 4 Zero 4, LLC that memorializes our collaboration.
Respectfully,
Jake Christensen
President
Christensen Development
4 Zero 4, LLC
FOUR i ZERO i FOUR 3
LETTER OF INTENT
Tim Dwight
Integrated Power Corporation
448 Ignacio Blvd. #188
Novato, CA 94949
City of Iowa City
Attn. John Yapp and Jeff Davidson
410 East Washington Street
Iowa City, Iowa 52240
Dear John and Jeff,
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Gilbert and College are two streets in Iowa City that encompass rich heritage. Born in Iowa City, I have witnessed
development and transformation throughout the years. Iowa City has become a safe, environmentally conscious,
bike friendly community. This community is where I call home and I want to aid in its development and contin-
ued growth. Throughout our proposal you will see features that encourage walking, riding bicycles, and renting
electric vehicles. Providing the community with these options will encourage a healthier lifestyle.
We will incorporate solar power and natural air ventilation systems. Four Zero Four will offset tremendous
amounts of energy, clean our air and conserve our resources. These variables lead in the transformation to a
more active, robust and healthier community.
We are proud to have the opportunity to set the bar for future developments to bring more value to our lives. We
have created 4 Zero 4, LLC to memorialize our collaboration.
Respectfully,
Tim Dwight
Business Development
Integrated Power Corporation
FOUR i ZERO i FOUR 4
2, CONTACT INFORMATION
JaKe CHnSTensen
Founder
Christensen Development
506 3rd Street, Suite 200
Des Moines, Iowa 50309
515) 689 -3000
jake @christensendevelopment. com
Tim DWIGHT
Business Development
Integrated Power Corporation
448 Ignacio Boulevard, #188
Novato, California 94949
319) 631 -2006
tim.dwigl-tc@ipowerr-oirp.com
JusTin DOYLe
Principal
MODUS Engineering
1717 Ingersoll Avenue, Suite l 11
Des Moines, Iowa 50309
515) 251 -7280
jdoyle@modus-eng.com
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FOUR i ZERO i FOUR 5
FOUR ZERO FOUR PARTNERS
JaKe CHnsTensen
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Christensen Development was formed and founded by Jake Christensen in 2003 and has success-
fully completed over $100,000,000 worth of projects. The focus of the company has been infill
projects, redevelopment, historic renovation projects in downtown Des Moines and Omaha. The
company and its partners have successfully renovated and developed century old warehouses,
high rise historical buildings and neighborhood related commercial and residential projects. Jake
was honored as one of Des Moines' Forty Under 40 and was a member of the 2005 Greater Des
Moines Leadership Class. Currently, Jake serves as a member of the City of Des Moines Zoning
Board of Adjustment, Neighborhood Development Cooperation Board of Directors, Des Moines
Playhouse Board of Directors, YMCA -Y Camp Board of Directors, Executive Committee for the
Iowa Parks Foundation, an the Board of Directors for Operations Downtown. He also held a
4 -year term on the Urban Design and Review Board for the City of Des Moines. Jakes experience
and success is unmatched and a vital attribute in the success of 4 Zero 4
TIMOTHY J, DWIGHT Jr
As a long time native of Iowa City, Tun has grown extremely passionate about providing truly
sustainable energysources. With a degree in SHLP the collegiate All - American football and track
athlete and former NFL standout is currently the President of the Iowa Solar /Small Wind Energy
Trade Association. Tim's persistence was the driving force behind his company, Integrated Power
Corporation. iPower specializes in photovoltaic integration. With Tims expertise and experi-
ence, 4 Zero 4 will become the latest edition to the Iowa City Skyline fully capable of producing
as much energy as it consumes.
JUSTIn C. OYLe
Justin has led the Des Moines office of MODUS since 2006. He is passionate about creating long
term client relationships and works with diligence to effectively maintain the design mantra
throughout the entire staff. As one of MODUS' Principles, Justin offers a range of experience
leading electrical and mechanical engineering teams. Many projects Justin has led have been
deeply focused on providing energy efficient and sustainable solutions.
FOUR i ZERO i FOUR s
3. LEGAL NAME AND ADDRESS
4. IDENTIFICATION OF LEGAL IDENTITY
I
LEGAL NAME, ADDRESS a IDENTITY EA ?a 4
LEGAL NAME AND ADDRESS a, IDENTIFICATION OF LEGAL IDENTITY
Jane CHrisTensen
Founder
Christensen Development
506 3rd Street, Suite 200
Des Moines, Iowa 50309
515) 689 -3000
jake@christensendevelopment.com
Tim DWIGHT
Business Development
Integrated Power Corporation
448 Ignacio Boulevard, #188
Novato, California 94949
319) 631 -2006
tim.dwight@ipowercc)rp.com
JUSTin DOYLe
Principal
MODUS Engineering
1717 Ingersoll Avenue, Suite 111
Des Moines, Iowa 50309
515) 251 -7280
jdoyle0a modus- eng.com
FOUR I ZERO I FOUR 7
5. ORGANIZATIONAL CHART
PROJECT TEAM i ORGANIZATIONAL CHART E,j'!v.
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DEVELOPING CORPORATION
JAKE - TIM - JUSTIN
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DESIGN TEAM ]
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REALTOR
ANCHOR TENANT
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BUILDER
BEAL I DERKENNE CONSTRUCTION
FOUR I ZERO i FOUR 8
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PROJECT TEAM I ORGANIZATIONAL CHART El
DEVELOPING CORPORATION
4 Zero 4
P&A 506 3rd Street, Suite 200 1 Des Moines, Iowa 50309 1 (515) 689 -3000
Contact: Jake Christensen
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DESIGN TEAM
Skive- Hattery, Architecture - Engineering I www.shive- hattery.com
SHIVCI- IATTC—RY Architectural Design - Structural Engineering - Civil Engineering
2834 Northgate Drive I Iowa City Iowa, 52245 1 (319) 354 -3040
Contact: Mark Seabold, AIA, LEED AP
MODUS I www.modus- eng.com
M L.J LJ U 0 118 E. College Street I Iowa City, Iowa, 52240 1 (319) 248 -4600wAC117111QMechanicalEngineering - Electrical Engineering
Contact: Andy Bean, PE
C -1NI$E C -Wise I cwise.com
906 S. 7th Avenue I Iowa City, Iowa, 52240 1 (319) 621 -4168
LEED Consultant - LEED Management
Contact: Martha Norbeck, LEEP AP BD +C
poweredby Integrated Power Corporation I ipowercorp.comIPower448IgnacioBoulevard, #188 Novato, California 94949 (319) 631 -2006
Contact: Tim Dwight
BUILDER
BEAL I OERRENNE CONSTRUCTION * t Beal Derkenne Construction I www.bdconstruct.com
321 E. Walnut St. Suite 100 1 Des Moines, Iowa, 50309 1 (515) 288 -0345
Contact: Andy Beal
FOURIZEROIFOUR 9
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PROJECT TEAM i ORGANIZATIONAL CHART ,
MANAGEMENT AGENCY
d oy I e Doyle Properties
PO Box I Waukee, Iowa 50214 I (515) 710 -9495
properties Contact: Ryan Boyle
REALTOR
2346
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Realtors
Iowa
www.tkrinfo.com
5102346MormonTrekBlvd. Iowa City, Iowa 52245 1 (319) 351 -8811
Contact: Chris Campbell
LEGAL CONSULTATION
Stein Moore Egerton Weideman, LLC
5 518 S Clinton Street I Iowa City, Iowa 52245 I (319) 351 -5610
Contact: Leslie Moore
FOUR I ZERO I FOUR 10
I
NEW PIONEER FOOD CO -OP ,
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New Pioneer FOOD Co -OP
New Pioneer is a full service cooperative supermarket owned bythe community since 1971. New Pioneer supports foods pro-
duced without synthetic pesticides and fertilizers. Our vision of sustainable agriculture features foods free of chemical residue
and air, earth, and groundwater free of agricultural contaminants. We encourage and support organic growers while simultane-
ously educating our shoppers and the public about the health and ecological benefits of buying sustainably and locally- produced
food. We hold concerns about genetically engineered foods and the future of our food systems, and we emphasize the importance
of food safety in all of the products we choose to sell.
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Our Mission Statement
New Pioneer is a cooperatively owned business, fully serving the needs of the natu-
ral products consumer. We emphasize high quality, fair prices, and product informa-
tion. We are an environmentally and socially responsible member of the community
we serve. New Pioneer's mission is to serve the needs of its members and to stimulate
the local agricultural production of natural and organic foods by providing a market
for such foods. The Cooperative fully recognizes the value and dignity of work and
shall place a high priority on the health, welfare, and happiness of all its employees. The
Cooperative shall strive to set a community standard for the best possible working con-
ditions, training, wages, benefits, and opportunities for advancement for its employees.
Investing in the Community
As part of our mission, New Pioneer contributes to many community programs. It's
important to our members that we conduct and contribute to fundraisers for local or-
ganizations that address human needs. We've helped Hospice, Free Lunch, ICARE, Domestic Violence Intervention Project, Free
Medical Clinic, Table to Table, and dozens of other local organizations.
FOUR I ZERO I FOUR 11
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NEW PIONEER FOOD CO -OP E
New Pioneer FOOD Co -OP (conT,)
New Pioneer Information (from fiscal year 2012)
24,000,000 in annual sales volume
25,000 members
185 employees
Approximately 75% of employees are Full-Time with benefits
Benefits include health insurance, PTO, 401(k), annual bonus, premium pay for holidays worked, parental leave, staff discount
Support of Community
8,000 contributed annually to Crisis Center through the 5 cent bag fee
43,000 in direct donations and sponsorships of local non - profits
20,000 donated to Local Foods Connection by New Pioneer members through the dividend donation program (fiscal yr. 2011)
2 Full Time staff positions focused on community outreach and education
Soilmates gardening education program reached:
24 area schools
297 classes
7,900 students
New Pioneer 2 -acre Earth Source community garden
Supported 7 community garden projects
Sustainahility
1,600,000 of product purchased from local farms and producers
Direct supply relationships with dozens of local farms and producers
Composts nearly all food waste:
Diverts from landfill 10,000+ pounds monthly
Practice identified by Iowa DNR as unique among Iowa supermarkets
Nearly all waste cardboard, plastic and metal is recycled
Packaging & Poodservice
70% of deli products packaged in fully recyclable containers made of 100% recycled content
All hot foods and drinks served in compostable paper usingwater based inks
Hot food containers made of 100% recycled content
Paper grocery bags Forest Stewardship Certified, 100°% recycled content
Bicycle repair stations on site at each store
Wp R
food Cc -cp
ir
FOUR I ZERO I FOUR 12
6, DEVELOPMENT EXPERIENCE
DEVELOPMENT EXPERIENCE
CHRISTENSENCDEVELOPVENT
E,j IO
Christensen Development is a real estate development and consulting firm that specializes in historic renovation and
urban development. Their experience includes:
Historic Renovation
Urban Infill Development
Historic Tax Credits
Enterprise Zone Credits
Tax Increment Financing
Development /Construction Management
Geothermal /Energy Saving Implementation
FOURIZEROIFOUR 13
DEVELOPMENT EXPERIENCE
ESOO
DES MOINES, IA
Mixed use urban infill development
79 market rate apartments
12,000 sq. ft. of retail
Largest private geothermal project in Iowa
Roof deck, rooftop exercise room
TIF, Enterprise Zone Credits
PROJECT DESCRIPTION
The 6 -story mixed use in -fill project sits with -
in the Historic East Village district in Des
oines. Jake Christensen is the co- developer
and co -owner of this 15 million dollar project.
The building was the largest private geo -ther-
al installation at the time of completion. The
street level retail spaces created an opportunity
for Zombie Burger to be the catalyst it is. The
residences have been 100% occupied since the
opening. The project utilized the State Enter-
prise Zone Credit, Tax Increment Financing,
Federal Energy Tax Credit and tax abatement.
CURRENT STATUS
L
mPLeTeo in Zoos
E,j Ift
DL_
FOURiZEROiFOUR 14
DEVELOPMENT EXPERIENCE
P
LIBERTY BUILDING
DES MOINES, IA
Hyatt Place Hotel - 93 rooms
16 condos
35,000 square feet of retail, office
262 stall parking ramp
TIF, EZ Credits
State & Federal Historic Credits
PROJECT DESCRIPTION
The 12 -story building situated in the core
of downtown Des Moines was transformed
from an insurance headquarters building
into an active mixed use building. Jake Chris-
tensen is a co- developer and co -owner of the
32 million dollar project. The street level re-
tail houses a health club, and the lobby to the
only Hyatt in Iowa. The upper floors house
office space, hotel rooms, and high end con-
dominiums. The project utilized the State and
Federal Historic Tax Credits, the State Enter-
prise Zone Credit, Tax Increment Financing,
and tax abatement.
CURRENT STATUS
ComPLeTeD in 2010
EA '!
rA4%w4
FOUR i ZERO i FOUR 15
DEVELOPMENT EXPERIENCE
HAWKEYE TRANSFER LOFTS
DES MOINES, IA
70 market rate apts.
82,000 square feet
55 underground parking stalls
Fitness center
Rooftop terrace
Federal Historic Tax Credit
State Historic and Enterprise Zone Credits
PROJECT DESCRIPTION
The building is an adaptive reuse of a 7 -story
arehouse building. Jake Christensen is the co-
developer and co -owner of this 13.5 million dol-
lar project. The project created 70 market rate
housing units to add to the workforce housing
options in downtown Des Moines. The project
tilized the State and Federal Historic Tax Cred-
it, the State Enterprise Zone Credit, Tax Incre-
ment Financing, and tax abatement. The build-
9
re
is the tallest building south of the downtown
co and for years was unused and invisible.
The building has been 100% occupied since it
opened. www.aptransferlofts.com
CURRENT STATUS
COmPLereD In 2009
E,j
j4
I
k
i
FOURiZEROiFOUR 16
7, DESCRIPTION OF FINANCES
ABOUT FOUR ZERO FOUR
4 Zero 4
SOURCES &USES
EA '
kqvj ?
a4
Address: 404 Gilbert
4 Apartments: 57 units
Average Apartment Size: 985 sf
Residential Apartment SF: 56,168 sf
Commercial SF: 42,698 sf
Total Rentable Building SF: 98,866 sf
Total Gross Building SF: 138,728 sf
Total Site SF: 24,000 sf
Sources Total Comments
TIF 5,500,000
New Pioneer Sale 4,850,000
Upper Floor Condo Sales 4,000,000
Construction Loan 7,060,937
Cash Equity 7,630,124
Total Sources $29,041,061
Uses Total Per Unit Per SF
Land -City of Iowa City 1,100,000 19,298 7.93
Land- Alley- City of Iowa City 200,000 3,509 1.44
Land - Mid- American 400,000 7,018 2.88
Mid - American Relocation 950,000 16,667 6.85
Hard Cost Construction Shell 17,341,000 304,228 125.00
Design Fees 1,473,985 25,859 10.63
Tenant Improvement Allowance 1,067,450 25.00
Finishes 684,000 12,000 12.18
Legal 25,000 439 0.18
Carry Costs 1,300,000 22,807 9.37
Development Fee 2,229,879 39,121 16.07
Construction Management Fee 334,747 5,873 2.41
Marketing 20,000 351 0.14
Appraisal 15,000 263 0.11
Contingency -8% 1,750,000 30,702 12.61
Mortgage Orig. Fees & Closing Costs 150,000 2,632 1.08
Total Uses $29,041,061
FOUR i ZERO i FOUR 17
ABOUT FOUR ZERO FOUR E,j'!r.
A9j4
Rwl Fsmie Tae fill Bfi.
laMAsormanCtmuOmia .4isv3fmm[ -
Rcidntizl.iv nzea- 8127,411 s(
Co141,1 wuren[
ury
Tat laP iW(IWy I - Jme 30)
I,aa.r.aw
cmme dLL -Texm
Rwi,MIU1TUn
TcW Tee®
2014 2015 3016 2017 NIS Nl1 2020 2021 2033 2023 2024
3 ]H8000 $ 173,760 $ 2`.4,41$ $ 305628 $ 311 ]b $ 317,575 1 1/3]5 S )]0,921 1 33]2-8 $ 333,189 1 351070
S 2,134900 S 2.07698 S 2$21150 S 3,25573 S 1310,9$4 $ 2157.102 S 2404sq S 2,62.329 S 3501376 S 2,85.003 S 2602,431
4 12 3925 8 12,M 25 S 12 928 3 12 25 S 12 43929 S 12° 3 25 1 12263 T S 12 43925 S 1 3125 3 12^' 5,825 3 13 43825
S 14.666,725 S 14715.183 $ 14764610 S 14915.126 S 14.866.450 $ 14918903 S 14.912A04 $ 13.036.910 1 15.0$1639 S 15.139A15 $ 05973T
O.W149917 004149917 6.0409917 0.04149917 0.04149917 0.0410917 OA4149917 6.041 499 17 0.44149917 0.4149917 0.4149917
N11 (2112 20122013 261Y2014 M114•'2015 2015 I6 101N201] 20171'.018 201002019 a19]2cm 202M2021 '_04112022
S ]0.071 $ 12.313 S 12359 $ 32610 S 13,066 S 13.328 S 13594 S 13,966 S 14143
1 14%99 6 eg M3 3 9172 d 93399 S 9+.950 E 96659 S 98796 1 10o n2 1 102,]e7 S 101,843
S 14.08 S 2M0.4 S 254.04 S 2-54.054 S 14.Q4 S 254.054 1 354.054 S 254.054 S 154,054 3 24,054
3 1 306 ,529 4 35.9608 S 357,639 $ 159,]11 $ 361$26 $ %9979 S 366,178 S 369,4i0 $ 3'.0,703 $ 3T3,041
FOUR i ZERO i FOUR 18
CONSOLIDATED CASH FLOW
4 Zero 4
IOWA City
116n1 Grovnb (ApmeveRQ 100 °e L00°r 1.nn °a 100% 1.OR° /n LIJn ° LPl% 12,2 °, 1.(10°0
01ber ]swine Gmmh(Apemnem) 0.5(4 /o 0.30 °a 0,50%
Rem Growlb (COmmermul) 10.W,
CAM Reimbureemem GfoMb(Cn.dmdfl 1001114 1 2!001 I 2.0096 106% I W. I 00° 2.00% 1 2.(M% 1 103% 1 2.00%
0lher lucome OrowlL(Cn.mw 4 I I 0.50°/" I 0,50% 0.50% 0;50% 056% I 010% 1 D.50-A 0.50°s 1 0.50%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Ap2d.t Rereoe Yeesl Yem'2 Yem3 Year4 Yem5 Yeer6 Yem4 Ye6 8 Yeer9 Y.10 Ye6a tl
Grass Reu 712.165 S 712,165 1 $ 719.187 1 726,480 $ 2,13.]45 S 941,082 S 748.493 S 755.978 763.537 S n1.175 S 778,885
01her Income 22.680 2.680 I $ 22,793 1 S "907 S 23,022 S 234137 S ]3.253 S .3,369 1 S 23.446 S n,603 23521
GWAS polnll91 Rwnae 734845 I 734,845 242080 749,387 S 256,766 764219 S 771745 779.347 S 787,0,13 S 794,776 S 802,666
Vacancymd C011ecdon Lass 61.00% 1 7.00% 1 7.00 °S 1 7OMI 700% 1 7 W% 1 700 °1e 1 7.00 °a I 7.00° -6 7.00% 7.00%
477,649 1 8 (51,439) S (51,946) S (52,45 S 51.974)1 (53,495) S (54,022) S (14,514)1 S (55491 S (15,634) b (56.182)
Net Ap4lTOeol Revnue 59,196 683,406 S 6901 ?4 S 696,9 ?0 5 703,992 S 7L0,TA S 91].723 724,]93 5 731931 S 739,142 S 746,424
C081me0181 Revnue
Dmeltents 512,376 S S12.376 S 512,776 512,376 S 512,376 S 563,614 S $63.614 S 563,614 S 563.614 563,514 S 563.614
CAMR mb... S 594114 S 116,,902 S 175916 S 17.434 S 182-023 186,6,45 S 190.417 194,225 S 198.110 S 2.42,072 S M6.I13
other income S S S S S S S
Grohs POln11a1 Revnue S 570.490 629,278 688.292 S 691,610 S 695 99 S 750299 S 754,010 757, &39 S 761,723 765,666 769.727
Vscmcruud C.D j.n W, 50.00% 10,00% 10.00% 10.00% 10,00% 10.00° /a 10,00% 10.00°/ 10.00% 10,00% 10.il0" /o
S (245,245) S ffi2,92S 68,829) S (69, 18LJ S 69540 75,030 75,403) $ (75,754) $ (]6,172 76,569) & (76,993)
N Cooamemlel Reveaoe S 285,245 S 566,350 619,46? S 622,629 S 625,a5'9 S 675,267 S 676,627 S 687,015 S 685,551 S 659,117 S 692,714
TOtp113Ree11ve Grose lunwe 542,441 1,249.756 L,309.597 1,119,559 S L,329.651 IS 1.385,991 1 S L,396751 IS 1.406,847 1 $1.417.483 1 $ 1.428,259 S 1.439.178
pxpeese Fsiimstes
Reet Eswe Tucs 304428 355608 I. 357,639 S 359.711 361824 S 363,979 S 366,178 S 365.420 370,708 373,041
IRSwamce S 32,4W S 33,048 S 33,709 S 34,363 S 3%%71 S 35,77] S 36,-087 S 37,217 S 37,961 S 38,720 S 39,494
lI6E¢es I WO 15300 9 13,603 15,919 S 16.236 6561 16592 10.230 S 17,173 S 17927 18.286
R,piw & wki nmP S S,WO S 8,160 8.323 8489- $ wb 8,832 S 9.009 9,189 9.373 S 9560 S 9.751
MmieOng 5 12,000 12,240 S 12,485 S 12,735 S 12990 3 13,2-50 S 13.50 S 13,755 S 14,061 S 14.342 S 14,629
AdmiNs Ve & $ecnnty moo 570 441 S 1,714 $ 3,7$$ S 3,M4 S },941 4,020 S 4,100 S 4,192 4,166
Replacemrnt Reserves 17,10 19,412 S 17.991 S 1 8,147 S 18,510 LS,950 19,258 19643 20,036 20,437 20,846
Mawgemem S 24,410 S 50,239 58532 59,380 $ 59.834 62,370 62,536 63,308 63,782 S 64372 S 64,763
TowlExpe 112,410 450,327 S 506,095 510,405 S 514,799 S 521,319 S 521917 5 530,570 535,313 54,146 3 54776
Ne 0p ma glamme 4 }0011 799,429 1 $ 003,502 S Mq,l14 $ 814,552 864638 8704_.. 176,270 95'-,169 581111 890.102
C,ul Expemes E IO,WO S 10,000 S mono S 10,000 13 10,000 I S 10400 1 S 10,000 1 S 10400 I $ L0,000 I S 10,000
CAM Mf 419031 789.429 793 02 799,154 $ 394,Wl 1 854.638 S "A94 S 866,278 S 872169 878,111 8&4102
Remsio0 6RM#NN
S4ks. ESp. S 556,314
Ne Reverelau Valae MWgf%p o
llebl Service 63.733 01,731 622;685 622,658 $ 622;686 622,6M 632,665 S 622,688 622,688 622,658 S 622,686
Del¢ Sernae C.., Rat 0.68 127 1.29 130 1.31 139 1.0 1.41 1.42 1.43 1.44
C4,11 R1me ARer llebl IS (20L,703)j S 157.696 1 $ 170814 1 S L76MO 1 $ 182,164 231,950 IS 237746 1 $ 243.590 S 249.481 255,423 26L.414
Nate:ESrs$ysarproforma urdades12.o.As oprral7ons ( /income. Fs en+t a.dDe SeMre)as mpJnjealease u !o belrtR January201).
Rwl Fsmie Tae fill Bfi.
laMAsormanCtmuOmia .4isv3fmm[ -
Rcidntizl.iv nzea- 8127,411 s(
Co141,1 wuren[
ury
Tat laP iW(IWy I - Jme 30)
I,aa.r.aw
cmme dLL -Texm
Rwi,MIU1TUn
TcW Tee®
2014 2015 3016 2017 NIS Nl1 2020 2021 2033 2023 2024
3 ]H8000 $ 173,760 $ 2`.4,41$ $ 305628 $ 311 ]b $ 317,575 1 1/3]5 S )]0,921 1 33]2-8 $ 333,189 1 351070
S 2,134900 S 2.07698 S 2$21150 S 3,25573 S 1310,9$4 $ 2157.102 S 2404sq S 2,62.329 S 3501376 S 2,85.003 S 2602,431
4 12 3925 8 12,M 25 S 12 928 3 12 25 S 12 43929 S 12° 3 25 1 12263 T S 12 43925 S 1 3125 3 12^' 5,825 3 13 43825
S 14.666,725 S 14715.183 $ 14764610 S 14915.126 S 14.866.450 $ 14918903 S 14.912A04 $ 13.036.910 1 15.0$1639 S 15.139A15 $ 05973T
O.W149917 004149917 6.0409917 0.04149917 0.04149917 0.0410917 OA4149917 6.041 499 17 0.44149917 0.4149917 0.4149917
N11 (2112 20122013 261Y2014 M114•'2015 2015 I6 101N201] 20171'.018 201002019 a19]2cm 202M2021 '_04112022
S ]0.071 $ 12.313 S 12359 $ 32610 S 13,066 S 13.328 S 13594 S 13,966 S 14143
1 14%99 6 eg M3 3 9172 d 93399 S 9+.950 E 96659 S 98796 1 10o n2 1 102,]e7 S 101,843
S 14.08 S 2M0.4 S 254.04 S 2-54.054 S 14.Q4 S 254.054 1 354.054 S 254.054 S 154,054 3 24,054
3 1 306 ,529 4 35.9608 S 357,639 $ 159,]11 $ 361$26 $ %9979 S 366,178 S 369,4i0 $ 3'.0,703 $ 3T3,041
FOUR i ZERO i FOUR 18
ABOUT FOUR ZERO FOUR
PROPOSED APARTMENT RENT ROLL
EA !4
unit N SP Bed IBats Tenant Nante Rem Due Total Due Move In Date Leax Expiration Deposlt$
401 1048 2 m S 1,100 1.100
40z 1163261 S 1.221 5 1,221
403 1258 2 br S 11321 S 4321
404 1688 2 b, S 1,142 S 4142
405 546 studio 601 601
40ti 790 1 b, 5 830 S 830
407 1057 2 b, S 1.110 S 1,110
408 1075 26, 1,129 1,129
409 611 studio 672 672
410 687 2 b, 5 931 S 931
411 542 ato& S 596 S 596
412 738 1 b, S 775 S 773
413 725 1 bt 5 761 761
501 104826, S 1,100 S [,IN
SOz 116326, S 1,221 S 1,221
503 125826, S 1,321 S 1,321
SOS 1058 2 b, 1,142 414$
505 546 studio 601 601
506 790 1 b, S 830 S 830
507 1057 2 br 5 1.110 5 1,110
508 1075 2 br S 1,129 S 1.129
509 611 studio 672 672
510 748 studio S 823 S 823
511 1146 2br 1.203 S 1303
11 881 2 b S 931 S 931
513 738 1 M 775 S 775
514 725 1 br 761 S 761
6411 1048 2 br 11100 S 4100
64M 1163 2 bl S 1.221 S 4221
603 1.58 2 M 1,321 S 1,321
604 1088 2 br S 1.142 S 1,142
605 546 studio S 601 S 601
606 790 11, 5 830 S 830
607 1057 2 br 5 1.110 S 4110
608 10752br S 1.129 S 1,129
609 611 studio S 672 S 672
610 748 studio S 823 S 823
611 1146 2 br S 1.203 S 1,203
612 887 2 bl S 931 931
613 738 1 N S 175 S 775
614 725 1 b, S 761 761
701 1048 2 br S 1.100 S 11100
701 1163 2b, 5 1,221 5 1,221
703 125826, S 1,32t S 1,321
704 1088 21" 1,142 1,142
705 546 studxr S 601 S 601
706 790 1 br 5 S30 S 830
707 1057 2 b S 1,110 s 1,110
708 1075 2 6, L129 1,129
709 611 swdia S 672 S 672
710 748 studio S 823 S 823
711 1146 2 b, S 1,203 1.,203
712 887 2 M 931 931
713 738 1 N S 775 S 775
714 725 1 br S 76L S 761
801 3000 2 br 5 3.150 S 31150
002 30M 2 br 5 3,150 3,150
985 59.347 S 59. }47
p ofUnits Proposed Mo Vacam Unit Vacancy$ Revenue kss Vw Occupawy%
studio 12 5 155 0 $ - 8,155 Lw0
1 br 12 S 9.463 0 $ - 9,463 IW/.
1 br loft 0 S 0 $ - W.
2br 33 5 41.729 0 $ - S 41,729 0%
2 br loft 0 5 0$ S 0%
TotdReut PoteeffiI 57 $ 59,347 0 $ - S 59.347 100%
A®uvll}: S 712,165
FOUR i ZERO i FOUR 19
ABOUT FOUR ZERO FOUR
Potential Apartment Income
E,j IO
Unit Mix
Floor Plan Ave SF Units Unit Ma Total SF Ave Rent/Mo RentiSF/Mo Rent/YY
studio 618 1 12 1 21.05 %
INCOME PROJECTION
680 1 $ 1.10
Project Name: 4 Zero 4 Date: 28- Sep -12
Address: Gilbert & College Time: 10:00 AM
City /State: Iowa City File:
789 1.05 113,551
Economic Gross Potential Income
Potential Apartment Income
E,j IO
Unit Mix
Floor Plan Ave SF Units Unit Ma Total SF Ave Rent/Mo RentiSF/Mo Rent/YY
studio 618 1 12 1 21.05 % 1 7,4141 680 1 $ 1.10 97,865
1 br 751 12 21.05% 9,012 789 1.05 113,551
1 br loft i I $ 1.05
2 br 1204 33 57.89% 39,742 1.265 1.05 500,749
2 br loft I I $ 1.05
Totals orAverage 985 57 1 Iwo% 56,168 1.041 1 $1.06 712,165
Other Income (Monthly)
22,68042Parkin
22.680
UnitlMo
Total Other Income
Gross Potential Apartment Income
Stabilized Vacancy & Collection Loss
Net Apartment Revenue
Potential Commercial Income
45 22,680
22.680
UnitlMo SF /Mo
1.074 $ 1.09 1 S 734,845
683,406
Floor Plan Total SF Base ReOUSF CAM/SF Gross RendSF Base liewlYr CAMNr Gross RenUYr
Other Income (Monthly)
Total Other Income
Gross Potential Commercial Income
Stabilized Vacancy & Collection Loss ( %)
Net Commercial Revenue
Total Effective Apartment and Commercial Net Revenues
FOUR i ZERO i FOUR
PSFMo PSF/Yr
1.34 $ 16.12 1 688,292
10.00% $ (68,829)
619,463
1,302,869
20
ABOUT FOUR ZERO FOUR
4 Zero 4
Iow elty
Rrnl G.wh(Apa4mara)
201"
lA0% 1.00% L00% L009a 1510°
Otllw innometimxih(Apanmem)
1w21 SOII
0.50°6 0.50% 0.50 °m Odtl% O.SOW
14J359
2014 2015 2016 2017 2018 2019 2020
Aprlmn2 Rn Ym,I Y.,2 YIa23 Yol4 Ycac5 Ymr6 Y.,
Gmss Rcnn 1 712.165 S 112,165 5 1192 8] S 126,480 S 131 141 1 241,082 748,
Glha lucwnn 22,680 22b80 S ?2,19? S 22,907 S 23,422 S 2.M 23]
Grnu POlel11W R<vglr i34,8e5 34,865 f ]42'
5,
749.35] 56,766 126•I'219 ni,l
Vzs-mlcvad Callcctinalms 65:004 7 Q 7Q0 7,W 2,00% 7.00°,4' 7.0091
T Ne 9mN UuyI me 301
477,649) S (51.439) S (51,9161 52,4571 S (92.914) 53.495) 8 (54.(
N[I ApnNlroa Reveor I E 257196 1 6834'J6 1 f 6 ,134 1 $ 696,930 1 $ 7623792 1 E ]10]24 E 712'
ToMl ERaelb'e Gros home 1 $ 3]196 1 683496 690,114-1 696930 1 $ 7W,792 1 $ 7lq724 1 7171
E,me Est ..
9Aw 9 9,7W t Y986 i 10,186
1'.o,4en4y1 -TVa S 29 y0$4 S
Real &.. TLL
S 214U54
258.191 262 10 262.672 262]4$ T 262922 263
hcunn¢
211601
22,875 23334 25.800 24276 24161 25:
I3u89es
6 269,019
10,591 10.803 A 19 11.239 IIA64 ill
RI,Wi MnM¢quntt f 5648 5761 5 5976 5 94 6,1]4 6,:
h k6in9 Mai 12,240 12,465 S 12,735 S 12,990 13,250 13,:
AGmiuisnmive &Se ty 2,4]1 i 2,520 257t 622
S 17,442 1],]91 IS t4] S 18,510 18880 195
30.753 S 31,056 31,362 31,670 31,983 32.;
TlW Fxp¢ce 360,212 f 36fi.16o E 36908] 4 3]o,0ag 5 3rz,049 1]A(
NO 0,.Wg U.W 1]5751 1 323,194 323,974 328$43 3337"4 1 $ 338675 343)
Cwpila$Eapom is 6922 I $ E.922 I $ 0322 is 6,922 1 $ 6.922 I $ 65
Cash Fbw 115,731 S J16,272 317,052 321 t S 326,921 331,731 1 S 3364
ResmaionSalaESprnlc
NH Rn'enbn Valr
MiB"M 437,297 437.297 431,036 01A36 43!036 43IP36 S 01
bl Sari Cg,.,R a I 0.4 0.7" 1 0]5 1 0.76 I O.T 1 0.79 1 0.90
C,AH.xAnC 1 $ C261,547 121P2111 f (113,98411 ID911s f IW]19 E C99 2UJJ E 94'
Note Pirl1 ywryrolwrma inAades f2 mnrhl oyanidorca (t mme, Exprwx, and]h61 SeMre) ao nryro!<+o leirc lm re &Inx Ja
E,j Im
2022 2021 2024 2025 2026
Real HTafe iv cesS E4lmm 201" 1.11 zo-16 20o ame ml$ aom 1w21 SOII 2. N25 21N.5 1.
IpN Aszan,cm 14J359 i 201,375 S 7V,413 t 211561 k ^_IS. ?9E S RpICB s L4j10 6 a 9.001 $ nlfSl S 238257 S M.W S 71. S 625 =Tt5
Reti4enwel n...zmM t 12661,4x9 6 1az41sz5 S Izz43s9s t 6 1141FZ5 S lde(18s 6 Iz2a 8" 6 lzx AeSI22aRS6lazvazs6LL.541sz5 S uws=S 6 11 rs6,9m
TefJ AsspemeM S 162,4,4.181 162,4{].171 f 162,451338 M121.129 162.659.61'! 162,463933 S 12.K8J15 121]62.9 }6 S IRa]9AC6 1R.4].OT S IL8868@ 11.891.]05 18,119 p1
ue oLY16Y1'! 0941 17 aNla ll oMi619 DM1 17 o..1l 17 0.01149917 O.RH 17 wWlt J owl E l7 0.041 17 O.NlG 17 oLY14 l7
T Ne 9mN UuyI me 301 201ID12 1.1..0 zo13 14 m1AM1s xm SI 16 201991] zo19201a 2m R2m9 zo19¢IYSO 2% 21 zMl.=1 2o}Zm1t 1oz 1a
IBw ! , B ki" Y 356 S 8}* 9 8,6,41 S 9a6 0 9,0tl S 9$26 S Y,mo 0 9Aw 9 9,7W t Y986 i 10,186
1'.o,4en4y1 -TVa S 29 y0$4 S 25{,054 S 214U54 S 254054 S 2540$4 5 254054 S P L54 $ 6254 54 S 2$ 0$4 S 5",054 S 211665 5 211601
Td T.. 158,191 6}.410 26 }3T 26$.748 b},9}R 6 269,019 59.:80 S 2fif994 S ffiJ,558 M2b45 11091 SL490
FOUR i ZERO i FOUR 21
8. VISUAL DESCRIPTION
I
ABOUT FOUR ZERO FOUR ,
ABOUT 4 Zero 4
Iowa City's . downtown area has been evolving rapidly over the past decade. 4 Zeros 4's proposed development project located
at 404 E. College Street will continue that evolution and showcase an example of building amore sustainable community.
Targeting LEED Platinum Certification by incorporating cutting edge architecture and state of the art engineering, 4 Zero 4
will provide a sustainable living and working mixed -use project by establishing Net Zero living writs and energy efficient retail
and commercial office space. Utilizing over 1,300 photovoltaic panels, the project not only creates one of the largest building
mounted renewable systems in the Midwest but creates an identifiable icon for sustainability in Iowa City.
4 Zero 4 will activate the corner of College and Gilbert Streets by providing a modernized and energy efficient location for the
New Pioneer Co -op, by providing 42,000 square feet of Class ' °A commercial office space, and by providing both residential
condominiums and apartments that comply with Work Force housing requirements.
The building will be designed to encourage an active lifestyle by providing free retail space for the Iowa City Bike Library with
bicycle parking and repair areas on site, by creating open stairwells with dramatic views of Iowa City, and by utilizing the alley
north of the site to provide a park plaza for the benefit of building occupants and the general public.
4 Zero 4 believes this project will lead by example and create a new standard for development in Iowa City.
FOUR i ZERO i FOUR 22
VISUAL DESCRIPTION E,j Im
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VIEW FROM CORNER OF COLLEGE AND GILBERT STREETS
FOURIZEROIFOUR 23
VISUAL DESCRIPTION EA,!v,
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DOWNTOWN MAP SHOWING RELATIONSHIPS
FOUR I ZERO i FOUR 24
VISUAL DESCRIPTION EA'!
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Chauncey,
Swan Parking
Ramp
North Alley
City of Iowa_ r
Site define
in RFP
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Site Area Calculation
City of Iowa City Site - 16,500SF
Mid American Property - 7,500SF
North Alley - 3,200SF
Total area included in proposal - 27,200SF
FOUR i ZERO I FOUR 26
VISUAL DESCRIPTION
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College Street
ANk. Rm t
Proposed Site ammenities
Park buffer to provide public space on North Side and provide access to Park
Circulation Between building and Parking garage to access Park
Bicycle Parking and Benches on South Side -Active College Street traffic
FOUR I ZERO i FOUR 26
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College Street
ANk. Rm t
Proposed Site ammenities
Park buffer to provide public space on North Side and provide access to Park
Circulation Between building and Parking garage to access Park
Bicycle Parking and Benches on South Side -Active College Street traffic
FOUR I ZERO i FOUR 26
VISUAL DESCRIPTION
Ao- --
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Ch au nce Swan Park
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Iowa City
Bike Library
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Parking level - 24.000sf
43 parking spaces
Electric "zipcal" availability
Bike Library - 1,400sf
Entry lobbies -
New Pioneer Co-op compressor room
Mechanical space
Trash and Recycling compactors
Parking Ramp connection -Washington Street Level
I:on
FOUR i ZERO i FOUR 27
VISUAL DESCRIPTION EA !4
Short Term Parking
Retail level - 19,608sf
New Pioneer Co-op - 16,415sf
New Pioneer Co-op Loading Dock - 1,959sf
Entry lobbies
Bicycle parking
Exterior dining
Park plaza dining
Parking Ramp connection - College Street Level
Jew Pioneer Co-op
narking in garage on
allege Street level
4
College Street
FOUR I ZERO I FOUR 28
VISUAL DESCRIPTION EA !4
Mezzanine level - 3.160sf
New Pioneer Co-op Teaching Kitchen
New Pioneer Co -op offices
Access main elevator lobby and stair
Mechanical space
Additional internal exit stair required
r-
College Street
FOUR I ZERO I FOUR 29
VISUAL DESCRIPTION
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Commercial Office level - 22.500sf
Tenant space - 21,349sf
Interior light well
Entry lobbies
Parking Ramp connection - top level
0
College Street
FOUR I ZERO I FOUR 30
VISUAL DESCRIPTION
Y
Commercial Office level - 22.500sf
Tenant space - 21,349sf
Interior light well
Entry lobbies
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College Street
FOUR I ZERO I FOUR 31
VISUAL DESCRIPTION EA 'Plvw 4
College Street
Residential level - 16.030sf
Residential units - 11,561sf
7 - 2BR apartments
3 - 1 BR apartments
3 - Efficiency apartments
Interior light well
Mechanical
Entry lobbies
FOUR I ZERO I FOUR 32
VISUAL DESCRIPTION EA 'Plvw 4
College Street
Residential level - 16.030sf
Residential units - 12,880sf
8 - 2BR apartments
3 - 1 BR apartments
3 - Efficiency apartments
Mechanical
Entry lobbies
FOUR I ZERO I FOUR 33
VISUAL DESCRIPTION
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Residential level - 6.100SF
Residential units - 4,080SF
2 - 3BR apartments
Solar array
Rooftop Gardens/ Rooftop Plaza
Mechanical
Entry lobbies
C 4
College Street
FOUR I ZFRO I FOUR 34
0sf or
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Residential level - 6.100SF
Residential units - 4,080SF
2 - 3BR apartments
Solar array
Rooftop Gardens/ Rooftop Plaza
Mechanical
Entry lobbies
C 4
College Street
FOUR I ZFRO I FOUR 34
VISUAL DESCRIPTION E,j Im
VIEW FROM CITY HALL DURING FARMERS MARKET SATURDAY
VIEW FROM TOWER PLACE AND PARKING RAMP
FOURIZEROIFOUR 35
VISUAL DESCRIPTION E,j IO
VIEW FROM UPPER LEVEL OF CHAUNCEY SWAN RAMP DURING FARMERS
MARKET SATURDAY
FOURiZEROiFOUR 36
VISUAL DESCRIPTION E,j IO
FOURiZEROiFOUR 37
VISUAL DESCRIPTION E,j IO
FOURiZEROiFOUR CaI
I
FOUR ZERO FOUR IN REVIEW ,
RIM EW7-
WHY 4 Zero 4?
SusTanaBIUTY
Project is targeting U.S. Green Building Council LEED Platinum Certification.
The project will include both active and passive sustainable systems.
Solar panels will provide renewable energy for the building. The project will utilize 1300 photovoltaic panels, creating one
of the largest building- mounted renewable energy systems in the Midwest. The panels also reduce the solar heat and glare
radiated from typical construction.
Building will utilize quality construction and quality materials including a concrete and steel structure with energy efficient
shell and building systems.
The building incorporates roof plazas with rooftop gardening and gathering areas.
Under building parking is provided for residential units including electric "Zip Car" spaces for residents without vehicles.
An internal light well provides natural light deep into the commercial office spaces and New Pioneer Co -op ground floor
space.
CommunlTv
A combination of condominiums and apartments is envisioned for the upper stories.
Apartments sized to work force housing criteria will be provided to bring families and young couples downtown to live.
Residential units will be provided with energy monitors to live a "Net Zero" lifestyle by balancing energy usage.
Short term diagonal parking will be provided along College Street.
Bike parking and repair plazas are located on the park side as well as at the College Street building entry.
4 Zero 4 will donate space to the Iowa City Bike Library as a park side tenant with exterior bike plaza.
Open stairs encourage activity and exercise for building users and residents.
OTHer Pro.lecT BenefTs
42,000 SF of Class "A' Commercial Office Space is provided on Levels 2 and 3 connected to the upper level of the Chauncey
Swan Ramp.
A Letter of Intent is in place for New Pioneer Co -op to be 4 Zero 4's ground floor anchor tenant with direct access to the
Chauncey Swan Ramp, Chauncey Swan Park, and the corner of College and Gilbert Streets.
The project will maximize the use of land by acquiring the Mid - American Energy site and by requesting the vacation of the
adjacent North Alley for development.
A letter of intent is in place for the purchase of the Mid- American property to allow this team fast acquisition and removal
of the on site equipment.
The North Alley will be used as a stepped public plaza for residents, office workers, Co -op consumers, Farmers Market pa-
trons and the general public to activate Chauncey Swan Park.
FOUR I ZERO I FOUR 39
9, PROPOSED PLAN
PROPOSED PLAN
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FOURiZEROiFOUR 40
10 . LETTER OF NO LITIGATION
LETTER OF NO LITIGATION
To Whom It May Concern:
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This letter is to serve as written record that the partners of 4 Zero 4, an Iowa Corporation (Jake Christensen,
Timothy Dwight, and Justin Doyle) attest to having no litigation proceeding, no outstanding judgments, and are
not part of any known pending investigations.
Furthermore, the partners have been neither convicted nor indicted of any crime.
Signed,
Jake Christensen
Timothy Dwight
Justin Doyle
FOUR I ZERO I FOUR 41
11 , REFERENCES
Bankers
iust
It's oar name ... and oar promise.
September 26, 2012
Re: Christensen Development.l,LLC.
To Whom It May Concern,
TonD w. wtsaMnN
VICE PRLSID=A SEN[ORLENDING OFFICER
C() 9 RCIAL BANKING SERVICES
PHONE -315 -245 -2468
Fox- 515 - 245.5216
MODR.E— 515- 314 -4752
EMAIL— iwishma rDhankcrshust. coin
The purpose of this letter is to confirm Jake Christensen and Christensen Development 1, L.L.C. have been a
customer of Bankers Trust for more than six (6) years and have handled all obligations as agreed. Mr.
Christensen has extensive experience in the real estate development arena and has worked on a wide variety of
real estate projects. Based on our long history and knowledge of Jake Christensen and Christensen
Development 1, L.L.C., we are confident that should Christensen Development choose to accept this endeavor
that they can perform. I would not hesitate to refer Mr. Christensen to you.
Should you have any question please do not hesitate to call me (515) 245 -2468
Sincerely,
1
Todd W. Wishman
Vice President and Senior Lending Officer
Commercial Banking Services
453 7th Street • P.O. Box 897 • Des Moines, Iowa 50304 -0897 • 800 -362 -1688 • www.bankerstrust.com
Iowa City Area
Development Group
Extraordinary opportunities
in unexpected places.
September 26, 2012
City of Iowa City
Attention: Tom Markus
410 E. Washington St.
Iowa City, IA 52240
It is with great honor that we submit this letter of support for 4Zero4's application to develop a
unique and energy efficient structure on the corner or Gilbert and College St.
We have had the opportunity to share visions with Tim Dwight on the types of interstate
commerce companies ICAD is looking to bring to downtown and the innovative spaces they
require. He shares our passion for advancing the creative culture of the area through
providing the types of office spaces that will attract and advance technical firms.
With 4Zero4's commitment to green building and energy efficiency, we see this project as being
a model for future development in the area on how to merge attractive architecture with low
carbon footprints.
In closing, we are very excited that Tim has brought his passions for alternative energy and
community building back to the Iowa City Area. ICAD looks forward to working with him as he
brings his vision to fruition and helps us grow our creative economy.
Sincerely,
Mark Nolte
Interim President
Iowa City Area Development Group
mnolte@iowacityarea.com
325 E. Washington Street, Suite 101 Iowa City, IA 52240 319.354.3939
IowaCityAreaD eve IopmenI com
ISR ARk
September 11, 2012
TimDwight
Christensen Development
506 3rd Street
Suite 200
Des Moines, IA 50309
DearTun:
lowA Chy Bicyck Library
A PRojFcr of ENVIRONwwAI AdvocA ifs, tNc_
P.O. Box 1837,1owA Ciry,14 52244.1831
www.bikehhamy.oaq
On behaIfo the Iowa City B rke Library and our volunteers and leaders, I am excited to offer this letter
of support for your proposal to develop the College St f Gilbert St Northeast Corner Site. We are
particularly enthusiastic about the opportunity that you are offering the Bike Library to return to the area
that we have called home for the past eight years. We recognize that our location is a key component in
our success and ability to serve the public.
Beyond the inclusion of the Iowa City Bike Library, your proposal demonstrates a powerful commit-
ment to a livable and sustainable Iowa City. Your use of solar power along with the goal of creating a
net zero energy building perhaps the most energy efficient building in the country is most
commendable.
Furthermore, we also would like to express our deep gratitude for allowing us to use space in your
building at 700 South Dubuque Street. In light of recent discussions, news stories and social media buzz
surrounding the redevelopment of the College St /Gilbert St. site (and the imminentdenrise of our
current location) we have received an outpouring of support and concern from the corranunity regarding
our short and long -term future. Thanks to your generosity, we have been able to keep our supporters at
ease.
Thank you for your help and thank you in advance for your support in the new building. We look
forward to a long and mutually beneficial and sustainable future together. We wish you the best of luck
with your proposal.
Sincerely,
Brian Loring
Iowa City Bike Library
f --IT r OF DES MOINES
OFFICE OF THE CITY MANAGER
September 26, 2012
To Whom It May Concern:
Christensen Development has been an active real estate development company in
downtown Des Moines.
The projects that Christensen Development has been co- developer of include;
1. 12 story Historic Liberty Building Hyatt Place Hotel
2. e300 mixed use in -fill retail and residential 6 story
3. AP Transfer Lofts 70 unit historic adaptive re -use
The City of Des Moines has participated with the developer in the form of Tax
Increment Financing agreements on each of the properties; many involving creative
development and financing solutions from both sides.
Christensen Development is in good standing with the City of Des Moines and we
look forward to working with them again in the future.
Feel free contact me at (515) 283 -4055 or maandersonPdmvnv.org with any
questions.
Sincerely,
Matthew A. Anderson
Assistant City Manager
Ofta of the Oty M ... 9e • 7 515.243.4141
CRY HvR • A[CI Robert D, Rs,!iive • GC h':anCS IA SLV'A • ,dngov,wp
Letter of Intent for Mixed Use Project
This Letter of Intent pertaining to a mixed use development Project is entered into on ,
2012 by and between 4 Zero 4, LLC( "Developer ") and New Pioneer's Cooperative Society
New Pioneer').
Recitals
A. New Pioneer is a cooperative association formed under the laws of the state of Iowa
presently operating grocery stores in Iowa City and Coralville, Iowa. New Pioneer is interested
in expanding and relocating its Iowa City retail business operations to an alternate facility that
better serves New Pioneer, its members and the community. New Pioneer is aware of the City of
Iowa City's interest in seeking requests for proposals for a project to be built at the northeast
quadrant of the intersection of College and Gilbert Streets in downtown Iowa City ( "Site ").
Subject to the requisite approvals of its membership and Board of Directors, New Pioneer is
interested in pursuing the Site as a possible location for its relocated business activities.
B. Developer is a developer of real estate projects and has indicated an interest in
developing a multi -use commercial/residential project on the Site (the "Project "). Once the City
of Iowa City ( "City ") completes and publishes its Request for Proposals ( "RFP "), Developer is
contemplating submitting a proposal for the acquisition of the Site for development of the
Project.
C. New Pioneer is interested in being a part of the Developer's Project, and the Developer
desires having New Pioneer be an occupant of the Project, believing New Pioneer's participation
enhances the feasibility of the Project.
D. The parties wish to enter into a non - binding letter of intent to express the basic
parameters for their continuing discussions and negotiations for New Pioneer to be included as a
proposed occupant of the Project in connection with the Developer's proposal to be submitted to
the City, and ultimately for the parties to enter into a contract for New Pioneer's acquisition,
Construction, fixturing, occupation, use and operation of a portion of the Developer's Project.
Expression of Intentions
1. Participants. Developer intends to submit a timely Project proposal to the City in response
to the City's anticipated RFP. Developer further intends on being the principal developer and
owner of the Project, most likely through one or more development entities that Developer may
form. The parties recognize that a Project of this size may require additional investors and
financing through one or more sources. Additionally, the parties recognize that this Project will
require the involvement of multiple professional consultants and participants such as architects,
engineers and other design consultants; accountants and lawyers; financial institutions; a
contractor; and various potential investors. Developer agrees to keep New Pioneer advised of the
key participants to be involved in the design, construction and financing of the Project, as well as
principal investors therein.
2. The Project. As presently conceptualized, the Project will involve one level of underground
parking; retail on the first floor (New Pioneer) level; two to four floors of office commercial; and
three to six floors of residential. It is anticipated that the building will be appropriately separated
into condominiums to allow the entire first floor, including mezzanine if required, to be a
separate unit to be acquired by New Pioneer, with other spaces in the building to be
condominiumized as the Developer may deem appropriate for either sale or leasing. The Project
will be built on three parcels now owned by the City as well as an additional parcel presently
owned by MidAmerican Energy Company. The land is described as follows:
Lots Five and Six, Block 43, of the Original Town of Iowa City, Iowa.
The, property excludes the alleyway along its north boundary, and the property is immediately
adjacent to a City parking facility along its east property line.
3. Project Contingencies. The parties acknowledge that the following are among various
matters that constitute contingencies that must be satisfied for the Project to proceed:
a. The City's proceeding with its request for proposals for the development, anticipated to
come out August 27t ", 2012.
b. The Developer submitting a proposal that is accepted by the City, such proposal to likely
contain elements for the City's financial support, such as reduced land cost, TIF
financing and /or other City participation.
c. Acquisition of the City's portion of the site under terms and conditions (price and any
covenants and/or restrictions) acceptable to Developer and New Pioneer.
d. Acquisition of MidAmerican's portion of the site under terms and conditions (price and
any covenants and/or restrictions) acceptable to Developer and New Pioneer.
e. Rezoning of the parcel as may be required for the anticipated uses (grocery /retail; office;
and multi - family residential) within the Project.
f. City site plan and building permit approval of the Project under terms and conditions
acceptable to the Developer and New Pioneer.
In addition to the foregoing general threshold contingencies, the Developer will also have usual
and customary Project feasibility considerations before its final decision to proceed with the
Project, including requirements and conditions that may be imposed by the Project's investors
and lenders. As such, the Project will be conditioned upon feasibility based on Project costs as
well as final financing arrangements, all to be acceptable to Developer.
4. Purchase Agreement. The Developer and New Pioneer anticipate continuing their
discussions and negotiations in working towards a mutually acceptable purchase agreement and
related documents ( "Purchase Agreement ") containing final terms and conditions for New
Pioneer's purchase of a condominium unit on the ground floor of the Project, built out to a level
of finish defined in the Purchase Agreement. The Purchase Agreement will provide substantially
more details than presently contained in this Letter of Intent with regard to time frame, costs and
contract contingencies. This Letter of Intent expresses the parties' current intentions in general
terms for the purpose of providing a base for continuing discussions, negotiations, refinement of
Project details, and each party's more specific requirements.
K
Prior to entering into the Purchase Agreement it is anticipated that Developer will have waived
most if not all general and financial feasibility contingencies for proceeding with the Project, and
shall also be able to demonstrate such financial capacity as will be necessary to fully perform the
Project, whether through performance bonds, bank letters of credit or through other means
satisfactory to New Pioneer.
5. New Pioneer's Conditions and Contingencies. In order for New Pioneer to proceed with
any commitment to participate in the Project, it will have certain requirements including, but not
necessarily limited to, those in the following categories. Only preliminary specifications of these
conditions and contingencies are set forth below, which are expected to be refined and modified
as the parties get closer to implementing a Purchase Agreement:
A. Approvals. New Pioneer's proceeding with this Project requires membership and
Board approvals. New Pioneer has obtained membership approval for entering into a purchase
agreement. Additional Board approval will need to be obtained at various phases of the Project
including, but not limited to, approval of the Purchase Agreement and satisfaction and/or waiver
of contingencies that may be reserved in the Purchase Agreement.
B. Plans and Specifications. Final plans and specifications for the configuration,
construction and shell build -out of New Pioneer's space within the Project will need to be
incorporated into the Purchase Agreement likely as an exhibit describing the intended condition
of the property at the time of closing and transfer of possession. Developer, through its
contractors, will construct the building and fit out the New Pioneer space to "Shell" condition
according to such plans and specifications as may be modified fi•om time to time by agreement of
the parties and/or through a change order process. Subject to final plans and specifications, the
currently anticipated general features of the build -out of New Pioneer's space within the Project
to "Shell" condition, is as follows:
Shell Description
It is expected that the New Pioneer condominium unit will be 100% complete on
the exterior of the building less signage, and that the interior of the shell includes
the following:
18 foot clear height to the underside of the structure
Concrete Floor that is hard steel troweled
Exposed concrete columns, beams, and ceiling structure- unpainted
Provisions under -floor including rough -ins for refrigeration
Provisions for sanitary connections
The interior side of the exterior walls will include insulation and vapor
barrier only, ready for sheetrock
Rough -in provisions for a kitchen hood
Electrical service capacity for 1,200 AMPS
Mechanical, Plumbing, Electrical, and Fire Protection Systems and IT
infrastructure will be installed by New Pioneer in such a way that they are
independently metered systems
3
The entire build -out of the New Pioneer space in the Project from "Shell" to finished condition
will be completed by New Pioneer and/or its contractors.
C. Condominium Purchase Price. The final purchase price for the New Pioneer
condominium unit shall be subject to New Pioneer's and Developer's agreement.
It is anticipated that the purchase price will be determined based on the "Developer's
Cost" for the New Pioneer condominium unit built -out to "Shell" condition. The specific
mechanism and/or formula for determining the Developer's Cost will be subject to the agreement
of Developer and New Pioneer and specified in the Purchase Agreement. The Developer's Cost
will be based on design/build pricing and bidding, including a contractor's percentage acceptable
to Developer and New Pioneer. The possibility of a Developer's profit or fee is to be negotiated,
with any such amounts that might be included in the Developer's Cost to be subject to New
Pioneer's approval. The method of determining and verifying labor and material costs, and
allocating those to New Pioneer's condominium unit, will also be subject to New Pioneer's
approval. New Pioneer anticipates that Developer will allocate to the purchase price an equitable
portion of the Developer's Project costs for land acquisition, construction financing, construction
period insurance, construction period property tax, design, and construction, plus the
Developer's design and construction costs and fees of building out the New Pioneer
condominium unit "Shell" to the approved plans and specifications, but exclude from the
purchase price any marketing expense and sales commissions, and also exclude any Developer's
profit or fees except those subject to approval from New Pioneer. It is anticipated New Pioneer's
purchase price will include an equitable portion of the costs of the common elements of the
building that benefit or serve the New Pioneer unit, but will exclude any costs for common
elements that provide no benefit or are not used by the New Pioneer unit. All such costs shall be
established in a manner that is acceptable to New Pioneer, shall be within a maximum cost that
will be specified in the Purchase Agreement, and will be subject to reasonable verification by
New Pioneer (or its agent Loeffler Construction & Consulting). Payment by New Pioneer for its
completed condominium "Shell" unit shall be at the time of closing and transfer of possession,
with earnest money to be negotiated and specified in the Purchase Agreement.
New Pioneer and Developer each acknowledge that it is difficult to accurately estimate the total
Project cost and the cost of the New Pioneer space completed to "Shell" condition at the time of
responding to the City's RFP. Nevertheless, given information available as of the date of the
execution of this Letter of Intent, New Pioneer and Developer acknowledge that $120 per square
foot of useable space is a good faith estimate of the "hard construction cost' for the "Shell ", with
the actual "Developer's Cost" to be subsequently specified in the Purchase Agreement or
otherwise by written agreement of New Pioneer and Developer. The "hard construction cost"
excludes "soft costs ", such as land costs and architect fees. These additional costs, when known
with accuracy, shall be equitably allocated between New Pioneer and the Developer, in a manner
that is subsequently agreed to in writing by both parties.
D. Financing Contingency. New Pioneer's purchase is subject to receiving a
commitment for financing its condominium unit upon such terms and conditions as may be
acceptable to New Pioneer in its sole determination. This financing contingency will either be
waived before entering into the Purchase Agreement or reserved in the Purchase Agreement with
4
a requirement for satisfaction or waiver before Developer commences New Pioneer's specific
Shell" build -out.
E. Public Support. To the extent that the Developer is able to obtain TIF financing
and/or other benefits through the City as an incentive to proceed with the Project, New Pioneer
anticipates receiving an equitable allocation of such benefit to reduce the costs of the New
Pioneer portion of the Project, because the city is very interested in the development having a
occupant such as New Pioneer in the project.
F. Design and Construction. The general design and configuration of the Project will
need to be compatible with New Pioneer's intended use of the first floor, and otherwise
acceptable by New Pioneer in its determination. Such consideration will include, but not
necessarily be limited to, the following:
i. Locations of entrances and exits
ii. Arrangements for deliveries, loading zones and trash storage
iii. Specified Utilities, electrical service, gas service, Mechanical and Plumbing
iv. Exterior and interior design and materials
V. HVAC systems with separate operation from remainder of building
vi. Underfloor Refrigeration Rough -in
vii. Electrical Service separate fi•om remainder of building
viii. Separate gas, water, electricity and other meters
ix. LEED design and implementation
X. Elevator service for both first floor and mezzanine
xi. Trash, composting and recycling facilities
xii. Parking immediately adjacent to the grocery entrance; 100 stalls
G. Proiect Personnel. Key personnel on the Project will need to be acceptable to New
Pioneer, including the architect, engineer, Project manager, general contractor, key
subcontractors and possibly others.
H. Parkin . New Pioneer's going forward will be contingent upon an agreement with
the City, satisfactory to New Pioneer in its sole determination, with regard to pedestrian access
from the adjacent parking ramp as well as for 100 parking spaces to be made exclusively
available for New Pioneer's use within the adjacent parking ramp. New Pioneer will be
responsible for negotiating such arrangements with the City, with the intent to have such matters
resolved, if possible, before entering into the Purchase Agreement, but otherwise a condition of
the Purchase Agreement.
I. Condominium Matters. New Pioneer's proceeding will be conditioned upon Developer
providing a condominium declaration that is acceptable to New Pioneer in all respects. New
Pioneer anticipates that the condominium declaration will carefully define all units and all
general and limited common elements, specifically setting forth those limited common elements
that are for the exclusive use of New Pioneer's unit; the exclusive use of New Pioneer's unit and
some, but not all, of the other units; and the exclusive use of some of the other units but
excluding New Pioneer's unit. Additionally, the declaration will need to appropriately allocate
W
common element maintenance, repair and replacement expenses, as well as building operational
expenses, so that New Pioneer pays assessments only for those common elements and those
operational expenses that relate to those aspects of the building that serve or benefit New
Pioneer's unit, and that New Pioneer is not paying for the expenses associated exclusively with
one or more other units in the building. The process for assessments, building reserves, building
management, owners association, voting, insurance and other condominium matters will all need
to be acceptable to New Pioneer. The condominium declaration will either need to be approved
by New Pioneer before entering into the Purchase Agreement or its approval will become a
condition of the Purchase Agreement. Additionally, any rules in connection with the building's
operation will need to be compatible with New Pioneer's intended use, including but not limited
to those that may affect hours of operation or shipping and receiving.
J. Basic Space Requirements. It is now anticipated that New Pioneer will have the
following space requirements within the Project:
i. Not less than 19,000 useable sq.ft. (net of stairs, elevator shafts, utility shafts and
other nonusable areas) on the first floor (street level) with direct pedestrian access to
the sidewalks on Gilbert and College Streets, as well as direct pedestrian access to the
adjacent parking ramp;
ii. Not less than 3,000 useable sq.ft, on a mezzanine or 2" d floor for store operations
which will include offices, meeting rooms, employee locker rooms and the server
room, etc.
iii. Not less than 600 useable sq.ft, of mechanical/equipment room space in the lower
parking level
iv. College Street loading dock access
v. First floor climate controlled walkway and space for exterior seating of
approximately 2,000 useable sq.ft, along the north side of the building (in addition to,
not part of, the 19,000 sq. ft.)
vi. Not less than 200 useable sq.ft, in lower parking level for trash, recycling and
composting (may be combined with other building users so long as New Pioneer's
requirements are satisfactorily met)
6. Time Frame. The parties acknowledge that the Project is still in an early phase. However, if
the Developer's Project is not going to come to Tuition within a reasonable time frame, then
New Pioneer may wish to pursue other possible opportunities. As such, the parties agree that
they shall proceed with the expectation that the Project will be ready for occupancy some time
during the 0' calendar quarter of 2014 through the I" and 2nd calendar quarters of 2015, and
each party shall keep the other timely advised of any matters that might arise that could
materially affect the availability of the Project for such occupancy.
7. Cooperation and Coordination. Unless negotiations and discussions are terminated by
either party, it is anticipated that the parties will coordinate their plans and cooperate to the
extent reasonable in connection with further developing plans for the Project and specifically in
connection with responding to an RFP from the City, While Developer shall take the lead
responsibility for all such matters, New Pioneer shall cooperate to the extent of its desired space
within the Project. New Pioneer is committed to be a part of the Developer's Project as the
2
Developer proceeds with his proposal and feasibility analysis, provided the Developer continues
to demonstrate a serious interest in pursuing the Project, continues to assemble a team of
professionals, contractors and investors capable of f ilfilling the Project, and articulates a
reasonable plan for financing the Project. If at any time prior to entering into the Purchase
Agreement the Developer shall determine that this Project is no longer feasible, Developer shall
promptly notify New Pioneer of such determination. Similarly, if at any time prior to entering the
Purchase Agreement should New Pioneer determine that it no longer wishes to participate in the
Project or that Developer's progress on the Project is not satisfactory, in New Pioneer's sole
determination, New Pioneer may indicate to Developer its election to terminate negotiations and
discussions pertaining to the Project.
New Pioneer will reasonably cooperate, on a non - exclusive basis, with Developer towards the
objective of the Developer becoming the approved proposal submitted to the City for the
development of the Site and for Developer to proceed with its Project which will incorporate the
condominium space for New Pioneer's ownership and use. However, New Pioneer reserves the
option should there be, in New Pioneer's determination, other viable and timely projects, for
New Pioneer to work with any other party for a project on the Site or elsewhere that
appropriately and/or timely addresses New Pioneer's business needs.
8. Additional Office Space. Before the Developer commits to selling or leasing space on the
second floor that would leave less than 5,000 useable sq.ft. remaining, the Developer will contact
New Pioneer with regard to any interest for additional second floor office space. This option for
additional office space is independent of the 3,000 useable sq.ft. on the mezzanine or second
floor for store operations as specified in 51(ii) above.
9. Confidentiality. New Pioneer and Developer hereby each agree to hold as confidential all the
other's plans, building designs, concepts, strategies of construction, financial circumstances, cost
estimates, financing, and other matters related to a party's potential participation in the Project as
may have been or may be disclosed by one party to the other party in connection with the
discussions and negotiations related to this Letter of Intent and the Project, and that are not
otherwise generally known ( "Confidential Information "). Any disclosure of Confidential
Information of a party by the other party shall only be made after the party whose Confidential
Information is being disclosed has agreed to such disclosure in writing in advance. The parties
each acknowledge that if Developer submits a proposal to the City of Iowa City, and also if the
Developer's proposal is approved by the City, disclosure of certain Confidential Information and
the Purchase Agreement contemplated herein to specified third parties as a part of implementing
the Project will likely be necessary. In that event, the parties agree to cooperate in such
disclosures, which shall be agreed to in writing in advance. The parties further agree this
provision shall survive in the event of termination of this Letter of Intent. Nothing in this
provision is intended to limit a party from disclosing the Confidential Information of the other,
on a need to know basis, to a party's representatives, consultants, lender(s), attorneys, contractors
or other agents, in connection with its due diligence and investigations relating to the continuing
discussions and negotiations contemplated by this Letter of Intent.
10.. Non - Binding. This Letter of Intent does not constitute an agreement to negotiate, but
solely constitutes an outline of some of the terms for negotiation. The parties will in good faith
7
diligently pursue discussions and negotiations in an effort to come to and refine terms and
conditions for final documents for each party's review and approval, some of which may be
multi -party agreements. While this Letter of Intent is intended to provide the parties guidance in
pursuing negotiations and discussions, except for Paragraph 9 and the next paragraph of this
Paragraph 10, it is not binding, and the terms of any final agreement may be the same as, similar
to or different from the provisions of this Letter of Intent.
New Pioneer and Developer each acknowledges and agrees that each is proceeding with its side
of negotiations at its sole cost and expense (which may involve substantial transaction costs) and
that either party may terminate negotiations for any reason, at any time, without any liability or
obligation to the other. Further, neither party shall have any legal rights or claims against the
other party by reason of any action taken, statements made, writings delivered or other matters
undertaken by a party in reliance upon this non - binding Letter of Intent including, without
limitation, any expenditure of funds, partial performance of transactions contemplated herein, or
any other actions of a party.
This letter of intent shall be of no further effect upon either i) the parties entering into final
agreements, or ii) the termination of discussions and negotiations between the parties pertaining
to the matters contained herein, The patties anticipate that their discussions and negotiations will
be completed or terminated before the expiration of twelve months after the execution of this
Letter of Intent.
llnvnlnn nr
New Pioygopis- Vo9perative Society
N
By_
Ramji
Board
Date R 06. fz--
Date
0
LETTER OF INTENT
THIS LETTER OF INTENT (hereinafter "the Agreement"] is entered into this _ day of
2012, by and between MidAmerican Energy Company [hereinafter
MidAmerican "] and 4 Zero 4, LLC [hereinafter "Developer "].
WHEREAS. MidAmerican is the owner of a small parcel of real property on which a
MidAmerican electrical substation is situated, located near the intersection of College Street and
Gilbert Street, Iowa City, IA, and legally described on Exhibit A attached hereto [hereinafter "the
MidAmerican Property "];
WHEREAS, the City of Iowa City is the owner of real property locally known as 404 E.
College Street, Iowa City, IA, and legally described on Exhibit B attached hereto [hereinafter
the City Property "]. The City Property is adjacent to the MidAmerican Property described
herein;
WHEREAS, Developer is interested in acquiring the City Property for the development of
a mixed commercial and residential use project to be located thereon. As a part of said
development, Developer is interested in also acquiring the MidAmerican Property, and
MidAmerican is interested in selling the MidAmerican Property to Developer;
WHEREAS, the parties recognize Developer's interest in purchasing the MidAmerican
Property and MidAmerican's interest in selling the same to Developer is dependent upon the
contingencies set forth herein;
WHEREAS, in consideration of Developer's and MidAmerican's respective interests, the
parties desire to set forth certain understandings and initial agreements relating to Developer's
potential purchase and development of the MidAmerican Property.
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES CONTAINED
HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, IT IS HEREBY
AGREED AS FOLLOWS:
7, initial Evaluations. The parties recognize that certain evaluations of the
MidAmerican Property are necessary to determine the feasibility of the development project
contemplated by Developer of the City Property above - referenced and to determine the
expense of and time period necessary to remove the substation located on the MidAmerican
Property, which could affect Developer's interest in proceeding with the acquisition of the
MidAmerican Property. MidAmerican agrees to permit the following initial evaluations by
Developer at Developer's sole expense:
A. Appraisal. The parties agree that a reasonable purchase price for the
MidAmerican Property cannot be determined until an appraisal of the
property has been completed. The parties agree that appraisal of the
property shall be performed by Cook Appraisal, LLC of Iowa City, Iowa,
and Developer shall be solely responsible for the cost of said appraisal.
MidAmerican hereby agrees to grant access to the MidAmerican Property
for appraisal purposes.
B. Phase II Site Assessment: The parties agree that soil and site analysis
must be performed in order to evaluate any contamination of the soil and
C.
determine whether further testing or remediation efforts are required to
permit development of the MidAmerican Property as contemplated by
Developer. MidAmerican agrees to grant access to the MidAmerican
Property for evaluation and analysis by Developer's retained
environmental services company. Developer shall be solely responsible
for the cost of said Phase II Site Assessment, and Developer agrees to
keep the report confidential, unless disclosure to a third -party is otherwise
agreed between the parties. Developer also agrees to share the results
of the Phase 11 Site Assessment with MidAmerican; however, the parties
agree that the results of said assessment are the property of Developer,
and MidAmerican shall not disclose said results verbally or in writing to
any other party without the prior written approval of Developer, unless the
results obligate MidAmerican to disclose the results by law, Developer
and MidAmerican acknowledge that if the mixed use development of the
project proceeds, disclosure to specified third parties as a part of said
development will likely be necessary. If additional testing or remediation
is required, the parties agree to negotiate further regarding said additional
testing and /or remediation services.
Substation. If Developer proceeds with purchase of the MidAmerican
Property, Developer understands it shall be his sole expense to remove
the substation, relocate the feeders, convert Sub D feeders and Sub F 4-
F-1 feeder from 4kV to 13kV, and reimburse MidAmerican the expense
for taking the equipment out of service. The parties agree that additional
evaluation of the expense and time period to accomplish relocating and
converting feeders is necessary before a full agreement on the subject
real estate transaction can be determined. MidAmerican agrees to initiate
steps to further evaluate the process and estimate the cost of the removal
and relocation of feeders, but MidAmerican shall not incur any fees for the
same without advance written approval of the Developer. MidAmerican
reasonably expects that it should be in a position to provide a cost
estimate to Developer for the removal, relocation, and conversion of
equipment as above - referenced by October 15, 2012. Further, if a
Purchase Agreement between the parties is reached, subject to
satisfaction of required contingencies, MidAmerican reasonably expects
that it can remove the substation and relocate the feeders within 12
months of an executed Purchase Agreement, which date shall be more
clearly defined in the Purchase Agreement.
2. Negotiation of Purchase Agreement and Contingencies. Upon report of the,
appraisal, Phase II Site Assessment, and further evaluation of the expense and time period to
remove the substation, if Developer wishes to proceed with purchase of the MidAmerican
Property, MidAmerican agrees to negotiate with Developer with respect to the undertakings of
the real estate transaction contemplated herein, including but not limited to, the Purchase Price,
the. Purchase Agreement, including contingencies thereto, the removal of the substation and
relocation of feeders, and any matters ancillary to Developer's purchase of the MidAmerican
Property. The parties recognize any Purchase Agreement for Developer's purchase of the
MidAmerican Property must be subject to certain contingencies including, but not limited to, the
contingencies set forth in section 1 and as follows:
A. City's Selection of Developer's Proposal. As set forth herein, Developer's
interest in the purchase of the MidAmerican Property is pursuant to and
contingent upon Developer's ability to develop a mixed commercial and
residential use project located on the City Property described in Exhibit B
hereto. Developer intends on submitting a bid to the City's Request for
Proposal, which RFP is anticipated to be published by the City in
September, 2012. Developer's purchase of the MidAmerican Property is
thus contingent upon Developer winning the City RFP and acquiring the
City Property,
B. Financing Contingency. This offer is contingent upon Developer securing
financing and a written loan commitment under the terms of and with the
lender of its choosing for the purchase of the City Property, the purchase
of the MidAmerican Property, and for its intended mixed use development
to be located on said properties. The parties agree to negotiate the
deadline by which this financing contingency must be released as a part
of the Purchase Agreement.
C. Confidentiality. The parties agree that the terms of the Purchase
Agreement and all matters ancillary to it shall be confidential and
privileged between the parties, except as otherwise provided herein. Any
disclosure by either party to another party shall be agreed to in writing
between Developer and MidAmerican before said disclosure occurs.
Developer and MidAmerican acknowledge that if the mixed use
development of the project proceeds, and Developer purchases the
subject property, disclosure of the Purchase Agreement terms to
specified third parties as a part of said development will likely be
necessary. The parties further acknowledge said agreement may be
deemed public record by the Iowa Utilities Board and /or the Office of
Consumer Advocate, despite the parties' wishes for it to remain
confidential.
3. ermination of Agreement The Developer may terminate this Agreement upon
written notice to MidAmerican if the Phase II Site Assessment, appraisal, or evaluation /estimate
to remove the substation, relocate the feeders and reimburse MidAmerican for the expense of
taking the substation out of service, is unacceptable to Developer. Developer or MidAmerican
may terminate this Agreement upon written notice to the other party if the parties are unable to
reach an agreement on the Purchase Price, specific terms of the Purchase Agreement, or any
other necessary terms for the purchase /sale of the MidAmerican Property. This Agreement
shall be terminated if Developer's Proposal is not selected by the City for the development of
the mixed commercial and residential use project above - referenced herein, or if Developer does
not purchase said City Property for any reason.
4. Governing Law. This Agreement shall be governed by and construed In
accordance with the laws of the State of Iowa.
S. Constructlon. This Agreement shall not be construed more strongly against any
party regardless of who was more responsible for its preparation,
6. Notices. Any notices to be served for any reason herein shall be deemed
delivered if sent by certified mail, return receipt requested, to the following addresses:
For Developer: Leslie L. Moore, Attorney for Developer
Moore & Egerton, LLP
518 S. Clinton St.
PO Box 2416
Iowa City, IA 52244
For MidAmerican: Joseph F. Moore
MidAmerican Energy Company
3500 104th Street
Urbandale, IA 50322
7. Severabillty. In the event any provision of this Agreement is held invalid, illegal
or unenforceable, in whole or in part, the remaining provisions of this Agreement shall not be
affected thereby and shall continue to be valid and enforceable.
8. Entire Agreement This Agreement and all agreements, documents and
instruments contemplated herein shall constitute the entire Agreement between the parties
hereto and supersede all negotiations, preliminary agreements and all prior or
contemporaneous discussions and understandings of the parties hereto in connection with the
subject matter hereof. Any modifications of this Agreement shall be in writing, signed by the
parties, and attached by Addendum to this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on
the day and year first above written.
tuber and Vice- President
4 ZERO 4, LLC, DEVELOPER
oseph F. Moore
MIDAMERICAN ENERGY COMPANY
12, PROPOSER'S RESOURCES &ASSETS
13. PROPOSAL SUBMITTAL FORM
EXHIBIT "A"
Proposal submittal signature form
The undersigned attests to his/her authority to submit this proposal and to bind the firm
herein named to perform if the firm is selected by the City of Iowa City. The undersigned
further certifies that he/she has read the Request for Proposal, terms and conditions,
and any other documentation relating to this request; has complied in all respects with
all conditions hereof, and this proposal is submitted with full knowledge and
understanding of the requirements and time constraints noted herein.
The undersigned hereby further acknowledges that it accepts the terms of the Request
for Proposals in its entirety and by the submission of its proposal hereby waives any
claims or claims to irregularities that arise out of such RFP, the process employed by
the City to solicit and develop proposals, the RFP evaluation process described in the
RFP, and agrees to release and hold harmless the City, its employees, agents, and
consultants from any claim, loss, or damage arising therefrom.
The undersigned hereby authorizes any person, firm or corporation to furnish any credit
history and financial condition or other information required by the City to verify
information related to the Firm's submission to the City.
I hereby certify, on behalf of the undersigned firm, that the above information is true and
correct to the best of my knowledge and that the City may rely on the information
provided.
Firm name:
Home office address:
City, state, zip:
Signature:
Date:
21
ZERO
The Chauncey
One Cinema at The Chauncey
Bowling at The Chauncey
Cafe at The Chauncey
Hotel at The Chauncey
Residences at The Chauncey
5-
L
Response to Request for Proposal
for a
Private Developer for the College Street / Gilbert Street
Northeast Corner Site
submitted by
The Chauncey, L.L.C.
September 28, 2012
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
Table of Contents
1. Letter of Interest ................................................................. ...............................
2. Primary contact person and contact information ................ ...............................
3. Legal name and address of the development entity ........... ...............................
4. Identification of the legal entity ........................................... ...............................
5. Development Team's organizational chart and Firm Bio' s . ...............................
6. Description of proposer's previous experience .................. ...............................
7. A description of the proposer's financial capacity ............... ...............................
8. Avisual description of the proposed Project ...................... ...............................
a. conceptual drawing or schematic,
11
b. conceptual square footage of commercial and /or office space,
Pg.
c. conceptual square footage and size of residential units,
34
d. schematic layout of commercial and residential floors and parking,
e. schematic of the pedestrian -level fagade.
9. Proposer's plan for construction and financing of the Project ...........................
a. organization and management approach,
b. general schedule for the completion of the Project,
c. plan for including MidAmerican Energy property,
d. description of a general financing plan,
e. letters of intent from prospective purchasers and /or tenants,
f. marketing approach to secure purchasers or tenants,
g. the proposed property purchase price,
h. the proposed amount and description of gap financing assistance,
10. Completed Exhibit „ B.. ........................................................ ...............................
11. References Letters ............................................................. ...............................
12. Unique resources, capabilities or assets ............................ ...............................
13. Completed Exhibit „ A.. ........................................................ ...............................
Pg. 1
Pg. 2
70
Pg. 2
73
Pg. 2
Pg. 3 - 7
Pg. 8-10
Pg. 11 13
Pg. 14 34
Pg. 35 - 57
Pg. 58
Pg. 59 - 70
Pg. 71 - 73
Pg. 74
The Chauncey, L.L.C.
221 E. COLLEGE STREET, SUITE 300
IOWA CITY, IOWA 52240
September 28, 2012
City Clerk
City Hall
410 East Washington Street
Iowa City, IA 52240
RE: Private Developer Proposal for the College St / Gilbert St Northeast Corner Site
City Clerk,
The Chauncey, L.L.C. development team appreciates this opportunity to express its interest in being
considered as the developer for the mixed -use facility project for private development at the College St /
Gilbert St northeast corner site as requested in the City's Request for Proposal dated August 31, 2012.
Our project, The Chauncey, is a mixed -use twenty (20) story urban building featuring an arts and
entertainment theme. The project will bring two new movie theaters, 12 bowling lanes and art and sculpture
gallery space to downtown Iowa City. Up to 59,000 SF of Class A office space is proposed with Rohrbach
Associates PC moving into and owning one of the office floors. The Chauncey is designed to include 35
hotel guest rooms with residential units above. All commercial and residential units at The Chauncey will
be structured as condominiums. A minimum of 20% of the residential units will be within workforce housing
rental and purchase guidelines.
The Chauncey is a glass, metal and terra cotta urban building clad with exterior design elements that
clearly delineate the functional areas within the building. The use of warm colored terra cotta and metal
panels will allow the building to transition from the "cool" central business district on the west to the "warm"
residential areas to the east.
Our proposal also includes upgrading Chauncey Swan Park. This upgrade will make the park more visually
attractive and functional for a variety of uses including evening viewing of movies.
With the appropriate development, this site has the potential to become a landmark location. The
Chauncey maximizes use of the site which results in smart growth for this urban in -fill setting. Our team's
proposal will require FAA height approval. If necessary, the height can be adjusted to meet the ultimate FAA
height determination.
Afirst class, mixed -use, multi story urban development requires dedication by the development team to the
design, construction and marketing phases and also quality management of the project when complete.
The Chauncey development team is committed to excellence of all phases of the project and has decades
of experience in Iowa City. Our team will devote the time, expertise and resources necessary to make The
Chauncey another success for downtown Iowa City.
Environmental Sustai nabil ity is an integral part of our design philosophy and practice. In addition to
systematic approaches, likethe LEED rating system, we strive to design buildings for energy efficiency and
durability. Designing for the long -term means minimizing the use of energy throughout the life of buildings,
lessening the impact of construction on our shared environment.
We look forward to your review of our submittal and the opportunity to present our credentials to develop
this exciting project. If, in the meantime, your review committee has any questions, please feel free to
contact us.
Sincerely and with great enthusiasm!
The Chauncey, L.L.C.
Steven A. Rohrbach AIA Michael Hahn Monica B. Moen Marc B. Moen
phone: 319.430.3010 221 E. COLLEGE STREET facsimile: 319.358.6778
IOWA CITY, IOWA 52240
The Chauncey, L.L.C.
Iowa City, Iowa
44
College St. I Gilbert St Northeast Corner Project
9. Signed letter on the proposer's letterhead indicating an
interest in the Mixed -Use Facility Project.
Signed Letter Pg.1
2. Primary Contact person and Contact information.
Steven A. Rohrbach
325 E. Washington Street, Suite 400
Iowa City, Iowa 52240
Email: srohrbach @rohrbachassociates.com
Phone: 319.338.9311
Fax: 319.338.9872
3. Legal name and address of the development entity, including
all joint ventures, limited partnerships and limited liability
companies, and the percentage of interest of each. Proposers
are encouraged to include size of their firm, parent company if
applicable, and officers /principals of the firm.
The Chauncey, L.L.C.
221 E. College Street, Suite 300
Iowa City, Iowa 52240
4. Identification of the legal entity with whom the City would
contract, whether the entity exists currently orwould be created
for the purpose of this project, and the names and titles of all
parties authorized to act on behalf of proposer.
The Chauncey, L.L.C.
221 E. College Street, Suite 300
Iowa City, Iowa 52240
Members include:
Steven A. Rohrbach
Michael Hahn
Monica B. Moen
Marc B. Moen
additional investors may be added
The Chauncey, L.L.C. was organized for the purposes of
responding to the City's Request for Proposals to privately
develop the property located at the northeast corner of College
St. & Gilbert St., and developing that property if selected as the
preferred developer.
The members have been committed to excellence in design,
construction and development in Iowa City for many years,
including a number of mixed -use projects.
K
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Co m o e n g r o u p 5. An organizational chart showing all members of the proposed
development team including but not limited to developer,
management agency, legal, design professionals, and consultants.
n Contact information should be provided for each team member.
R O H R R O C H• A$$$OC161F$ HR
A R C H I T F C 1 5
LEFF LAW FIRM, L.L.P.
Developer:
ATTORNEYS AT LAW The Chauncey, L.L.C.
F IAtll.1.Y5t01n9 221 E. College Street, Suite 300
Iowa City, Iowa 52240
Email: marcomoengroup.com
319.430.3010
Design Professional:
Steven A. Rohrbach AIA
Rohrbach Associates PC
325 E. Washington Street, Suite 400
Iowa City, Iowa 52240
Email: srohrbachCDrohrbachassociates .com
319.338.9311
Management Aaencv:
moengroup
221 E. College Street, Suite 300
Iowa City, Iowa 52240
Email: marcCDmoengroup.com
319.430.3010
Consultants — TBD
MEPT Engineering
Structural Engineer
Civil Engineer
Acoustical
Elevator
General Contractor:
Mike Hahn
McComas- Lacina Construction, L.C.
1310 Highland Court
Iowa City, Iowa 52240
Email: mhalm@)mccomaslacina.com
319.338.1120
Legal:
Patrick Ford
Leff Law Firm, L.L.P.
222 South Linn Street
Iowa City, Iowa 52240
Email: ford@)IefOaw.com
319.338.7551
191
The Chauncey, L.L.C.
Iowa City, Iowa
Comoengroup
n
C]
College St. I Gilbert St Northeast Corner Project
Management Agency - moengroup - Firm Bio
moengroup has managed commercial and residential real
estate in downtown Iowa City continuously since 1988.
Properties currently managed include:
228 S. Clinton Street (Starbucks & loft)
210 S. Clinton Street (Whiteway 2000: Joseph's
Steakhouse & residential units)
103 -105 E. College St. (Savings & Loan Building: retail,
bank & offices)
115 E. College St. (Graze restaurant & lofts)
118 S. Dubuque St. (The Fieldhouse bar & residential
units)
255 Iowa Ave. (AKAR and residential units)
221 E. College St. (Plaza Towers: retail, offices, hotel,
conference center, health club & residential units)
123 N. Linn St. (Brewery Square: Linn St Cafe
Devotay restaurants, LaJames college of
cosmetology, Iowa City Press Citizen & professional
offices)
51
The Chauncey, L.L.C.
Iowa City, Iowa
ROHRRACH ASSOCIATES PC
A R C H I T E C T 5
Plaza on 5th
Plaza on 5th - Condo
Coralville Center for the Performing Arts
Area: 148,000 S
Completion Date: Summer2011
Cost $23,000,000
9'i
College St. I Gilbert St Northeast Corner Project
Design Professional - Rohrbach Associates PC - Firm Bio
Rohrbach Associates PC was founded in Iowa City, Iowa to
provide leading edge, full - service Architectural, Landscape
Architecture and Interior Design Services to Eastern Iowa and the
Midwest Region.
The firm is led by architects Steven A. Rohrbach AIA, Kenneth J.
Berzinski 11 AIA LEED AP, Kenneth A. Stirm III AIA and William T.
Downing AIA. A combined 90 years of architectural experience
enables our firm to provide a wide range of services including
Programming, Master Planning, Design and Documentation,
Construction Administration, Post Construction Services, Project
Management, Building Evaluations, Sustainable Design /LEED
Processing and Stewardship Planning.
The firm is built upon the concept of personalized service and
design. We believe that successful building design reflects
a concentrated interactive effort between the owner and
architect. This ensures that all interests are satisfied within a
functional and economic framework. This is achieved through
experienced management in all phases of the project. Successful
projects require an honest, trusting relationship between the
owner and architect.
We specialize in technical projects that require special training
and services from the architect such as University Buildings,
Educational Facilities, University Residence Halls, Research
Facilities and Laboratories, Hospital and Healthcare Centers,
Medical Office /Clinic Facilities, Financial Institutions and
Commercial Multi -use Buildings.
Design Professional - Rohrbach Associates PC - Experience
Plaza on 5th & Coralville Center for the Performing Arts
Coralville, Iowa
Located on the corner of Fifth Street and 12th Avenue in Coralville,
Iowa, the 125,000 SF Plaza on 5th features shopping and dining
experiences with local flavor on the ground floor. One floor up,
class A commercial office space is available for businesses. The
four floors above offer upscale residential units.
A connected theater is the first theater facility for the City of
Coralville. The 7,800 SF space features a proscenium style
theater and a 400 -seat auditorium and lobby.
6'1
The Chauncey, L.L.C.
Iowa City, Iowa
UI -West Campus Residence Hall
Area: 180,000 SF
Completion Date: June 2015
Cost $35,000,000
UI - College of Public Health
Area: 130,000 SF
Completion Date: January 2011
Project Budget $47,700,000
UI - Pappajohn Biomedical Discovery Building
Area: 212,000 GSF
Completion Date: 2014
Project Budget $133,300,000
L
College St. I Gilbert St Northeast Corner Project
Design Professional - Rohrbach Associates PC - Experience
The University of Iowa - West Campus Residence Hall
Iowa City, Iowa
The ten story residence hall will consist of nine residential
floors, including six floors of Living Learning Community (LLC)
room configurations, and three floors of mixed Cluster (double
loaded corridor) and LLC type room configurations. Floors
2 -7 are the Living Learning Communities. There are a total
of 12 LLC units, which are communities designed to promote
the university's living /learning programs, accommodating 324
students in double rooms and 12 Resident Assistant rooms.
The unit type will be unique to the University of Iowa's campus
and will accommodate living /learning communities of up to 28
students and 1 RA per LLC. Each LLC has a pod of 5 unisex
bathrooms, an enclosed group study room, and a lounge with
dining space.
Public amenity space is planned for the ground floor which will
accommodate the hall staff offices, student laundry, seminar
room, a large multipurpose room and lounge.
The University of Iowa - College of Public Health Academic
Bulding
Iowa City, Iowa
This building is organized as twin five -story wings which house
the program on either side of a central atrium, known as the
dialogue ". The dialogue space is the public, interactive zone of
the building, promoting collegiality and collaboration among the
users. The exteriorview of the building is designed to reflect the
building's diverse inner life.
The University of Iowa - Pappajohn Biomedical Discovery
Building
Iowa City, Iowa
The Pappajohn Institute and John and Mary Pappajohn
Biomedical Discovery Building will be the centerpieces of
Iowa's innovative discoveries in the life sciences, providing
transformative approaches to health care, unprecedented
educational opportunities and unique possibilities for economic
development.
The 200,000- square -foot, nine -story facility, located next to the
Carver Biomedical Research Building on the UI health sciences
campus, will house laboratories and office space dedicated to
leading -edge, cross - disciplinary research involving scientists
from across the entire campus.
11
The Chauncey, L.L.C.
Iowa City, Iowa
L,
w
f
College St. I Gilbert St Northeast Corner Project
General Contractor - McComas Lacina Construction L.C. - Firm Bio
McComas - Lacina Construction (MLC) has been a locally owned General
Contractor in the Iowa City area since 1977. MLC is a full service general
contractor employing 150 field workers and 20 professional staff. The
Firm completed numerous private and public projects of similar size and
complexity to The Chauncey over the last 35 years.
Headquarters:
1310 Highland Court
Iowa City, Iowa 52240
Phone: 319.338.1125
FAX: 319.338.5964
Years in Business:
35 Years
Primary Areas of Operation:
Iowa City, Coralville, Eastern Iowa
Legal - Leff Law Firm L.L.P. - Firm Bio
Leff Law Firm was founded by Arthur O. Leff in 1929 and has continued as
LEFF LAW FIRM, L.L.P. a general practice law firm in Iowa City since then.
ATTORNEYS AT LA W
es "LMED 1929
The firm represents clients with respect to a wide variety of civil matters,
including real estate, property development, business organization and
establishment, as well as estate planning and civil litigation.
Leff Law Firm holds theAVO peer- review rating from Martindale - Hubbell@,
the highest rating available.
Partners in the firm: Chuck Traw, Randy Willman, Steve Ballard, Mark
Danielson, Tim Grady, Tom Maxwell, and Patrick Ford.
Of Counsel: Phil Leff and Bruce Haupert, who practiced with the firm until
their respective retirements, remain "of counsel' to the firm but are no
longer engaged in the day -to -day practice.
7
The Chauncey, L.L.C.
Iowa City, Iowa
Whiteway 2000 Building
Plaza Towers
Plaza Towers - Penthouse
C],
College St. I Gilbert St Northeast Corner Project
6. Description of proposer's previous experience, including a
brief description of at least two mixed -use projects where the
proposer played a substantial role. The descriptions should
include the specific role of the proposer and the current status
of the projects. Sufficient reference contact information should
be provided for each project in order to permit the City to verify
the information.
Mixed Use New Development Projects:
All projects listed below were developed by members of the proposer
and constructed by McComas - Lacina Construction, Inc.
Whiteway 2000 Building: 210 -212 S. Clinton Street, Iowa City
Occupants:
Joseph's Steakhouse (main floor and lower level)
39 residential units (studio and 1 bedroom lofts)
opened August 2000
100% occupancy
Plaza Towers: 221, 231 & 241 E. College Street
201 S. Linn Street
225 S. Linn Street
opened February 2006
Occupants:
Formosa Restaurant
Bread Garden Market & Bakery
hotelVetro (55 luxury studio suites & conference center)
Eastwind Healing Center
Virtue Medicine, P.C.
Heartland Yoga
Iowa City Fitness
Neumann Monson Architects
MidAmerican Securities
moengroup
100% Occupancy
50 Residential units
5 Studios (550 SF)
26 one bedroom (1100 SF)
8 one to three bedroom (1650 SF)
4 three bedroom (2200 SF)
1 three bedroom (3300 SF)
4 two bedroom 2 story penthouse (1825 SF)
2 two bedroom 2 story penthouse (2150 SF)
100% occupancy
W
The Chauncey, L.L.C.
Iowa City, Iowa
Vogel House
Starbucks Building
College St. I Gilbert St Northeast Corner Project
Mixed Use New Development Projects: (cont)
Vogel House: 255 -259 Iowa Avenue, Iowa City
Occupants:
AKAR (main floor and lower level)
24 residential units (studio and 1 bedroom lofts)
opened August 2003
100% occupancy
Renovation Projects:
Starbucks Building: 226 -228 S. Clinton Street
Occupants:
Starbucks Coffee
Residential / Office — 2nd level
100% occupancy
Graze Building: 113 E. College Street
Occupants:
Graze Restaurant
2 lofts (2nd level)
100% occupancy
Other Properties owned and Operated:
Savings & Loan Building: 103 -105 E. College Street
Occupant:
Retail, Bank and Office Building
100% occupancy
Blackstone Building: 118 S. Dubuque Street
Occupants:
The Fieldhouse Bar
11 one bedroom apartments
100% occupancy
Brewery Square: 123 N. Linn Street
Occupants:
Linn Street Cafe & Devotay (restaurants)
LaJames International College of Cosmetology
Iowa City Press Citizen offices
Professional Offices
100% occupancy
W
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Forrner Vto's Building
I
Park @201
New Development under Construction:
Former Vito's Building: 118 E. College Street
Main Floor Retail
Second Level Offices
Park@201: 201 E. Washington Street (formerly Wells Fargo Building)
Main floor - retail
Levels 2, 3 & 4: offices
Levels 5 — 14: 26 residential units
10
The Chauncey, L.L.C.
Iowa City, Iowa
P,
College St. I Gilbert St Northeast Corner Project
7. A description of the proposer's financial capacity to obtain
acquisition, construction, and permanent financing, including
letters of interest from lenders and /or tax credit allocates. A
discussion of the financing sources and partnerships utilized for
prior projects and references from these parties are also welcome
and encouraged.
We have an excellent and long standing relationship with our lenders.
Park @201, currently under construction, recently received financing
commitments from a number of lenders. Our equity position in current
holdings, and individual investors committed to the proposed development,
place us in excellent position to obtain construction and permanent
financing. See Letters of interest from lenders below. Prior and current
projects utilized banking institutions, life companies and Tax Increment
Financing sources with success for all parties.
See Reference letters under section 11.
Letters of Interest from Lenders
1. MidWestOne Bank
2. University of Iowa Community Credit Union
pg. 12
pg. 13
11
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Lender Letter of Interest- MidWestOne Bank
MidWesf l
Bank
1kTM
September 25, 2012
Mr. Marc 3. Moen
The Chauncey, LLC
221 E. College Street
Suite 300
Iowa City, Iowa 52240
RE:The Chauncey Development
Dear Marc,
Please let this letter serve as Midwest ONE Bank (MW D) "letter of interest" to provide Construction and
permanent financing for the proposed new "The Chauncey' development. It should he noted that this is
not a commitment to lend.
We appreciated the opportunity to review your plans for the site. Upon acceptance of The Chauncey,
LCC proposal to build this project by the City of Iowa City, MWO would Ionic forward to taking next steps
in the approval process.
Please let us know It you need any additional information
Officer
tar vVtvW.n7id•vCSlone.com (SOO) 24: -4418
ibinLF Member FDIC
IS 12
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Lender Letter of Interest - University of Iowa Community Credit Union
MORMON TREK BLVD, IOWA CITY, IOWA 52246 • TELEPHONE: (319) 341 -2144
September 17, 2012
The Chauncey, L.L.C.
ATTN: Marc B. Moen
221 E. College Suite 308
Iowa City, IA 52240
Dear Marc:
This will confirm the University of Iowa Community Credit Union (UICCU) has been in discussions regarding financing'The
ChauncW which is being proposed for the comer of Glltrert Street and College Street. Aker reviewing the proposal, the
UICCU has interest in financing the project. Subject to underwriting credit approval, the UICCU would seek two or three
local institutions to participate in the construction financing as well as the permanent finari
If you have any further questions, feel free to contact me at 319- 341 -3074 or swilson @uiau.org.
Sincerely,
I 1W
Sr ice President
Commercial Services
IOWA AVENUE MORMON TREK TOWNCREST CORALVU.LE GRINNELL
319- 339 -1000 319- 339 -1002 3l9- 3341030 319- 339 - 1020 641 -236 -8822
48 13
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
wi
8. A visual description of the proposed Project, including:
a. conceptual drawing or schematic;
b. conceptual square footage of commercial and /or office
space;
c. conceptual square footage and size of residential units;
d. schematic layout of commercial and residential floors and
parking;
e. schematic of the pedestrian -level fagade.
Executive Summary
The Chauncey
The Chauncey is a dynamic twenty (20) story urban building which
will include first floor commercial /retail space, class A office space,
hotel guest rooms and residential units. A minimum of 20% of the
residential units will be leased or sold within workforce housing
guidelines and will be developed to the same quality and finishes
as all units at The Chauncey. The facility will connect to Chauncey
Swan Park and Chauncey Swan Parking Facility.
The overall theme for the project is arts and entertainment including
two movie theaters operated by FilmScene, art and sculpture
gallery areas, a twelve (12) lane boutique bowling facility and a
restaurant which opens onto Chauncey Swan Park. The mixture of
arts and entertainment will create a destination location for people
of all ages.
The commercial /retail public levels on the first and second floors
are surrounded by a transparent perimeter exterior wall system,
exposing the theaters within. Curved sculptural theater forms
contrast with the rectilinear lines of the building. Anorth -south lobby
and gallery area connect the building's main entrances.
The Site
The proposed site is the quarter block parcel located on the
northeast corner of the intersection of Gilbert and College streets.
Additionally, this proposal includes the redevelopment of Chauncey
Swan Park to reach its full potential as a city park, and to better
support the overall project theme of an arts and entertainment
complex. An existing, mid -block alley between College Street and
Washington Street, will be incorporated into the development and
will provide transition space between the park and the new building.
The interior of the park will provide daytime recreation space
and a lawn area for viewing evening movies. This proposal also
incorporates the MidAmerican site and will require the removal and
relocation of the existing MidAmerican equipment.
14
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
The Architecture
The Chauncey is clad with glass, metal and terra cotta, with exterior
design elements that clearly delineate the functional areas within the
building. The use of warm colored terra cotta and darker metal panels
will allow the building to transition from the "cool" central business
district on the west, to the "warm" residential areas to the east.
The metal rain screen, and large loft warehouse style punched
openings, identify the commercial levels. The darker metal at these
levels create a simple form in contrast with the buildings lighter
materials and colors.
The building continues vertically with the use of a curtain wall system
to create light filled hotel rooms and residential condominiums with
panoramic views. Hotel and residential levels are tied together
vertically by continuous metal screen walls which also separate the
different portions of the balconies. The warm color and texture of the
vertical circulation core tie these elements togetherwith a grid of terra
cotta that extends from grade level to the roof coping.
Patio gardens at the roof of the commercial levels, and residential
levels, soften the strong contemporary lines of the "U shaped tower.
The top of the tower terminates in a canted metal roof over the two -
story penthouse condominiums.
The Chauncey will serve as a landmark that identifies the eastern
edge of the downtown area and transitions to the east residential
area of Iowa City while adding interest and texture to the skyline.
The Parking
The Chaunceywill provide 52 on -site parking spaces which will meet
the residential required parking. This proposal requests the utilization
of the existing Chauncey Swan parking ramp to accommodate the
needs of the hotel, commercial and retail components of the project.
The Building Height
The Chauncey is planned to maximize the site for commercial, class
A office, retail, hotel and residential uses. The development team
feels strongly that a building of the size proposed is the best use of
the land for the present and future needs of Iowa City and represents
smart growth.
The Chauncey will require FAA height approval. If necessary,
the height can be adjusted to meet the ultimate FAA height
determination.
15
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Site Location Plan
Site
The building site is a quarter block area and our proposal also includes
upgrading of Chauncey Swan Park. The park will be reconfigured as
an inviting public gathering place including an amphitheater for viewing
movies.
16
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Exterior Images
View from the Southwest
Exterior
The exterior of the building will be clad with a combination of terra
cotta rain screen, metal panels and aluminum and glass curtain wall
systems. Twenty -eight foot (28') tall glass walls dramatically enclose
the FilmScene theaters.
49. 17
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Exterior
View from the Northwest
Exterior
A richly colored terra cotta will be used to clad the vertical stair and
elevator components as they run continuously up the exterior walls
of the north and south side of the building. Warm dark metal panels
surround the large windows which provide natural daylight into the
three (3) commercial office floors. The residential floors will be an
aluminum and glass curtain wall system, maximizing light and views.
49. 18
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Exterior Images
View of Pedestrian Facade from Ground Level Southwest
View of redesigned Chauncey Swan Park at Night from the Northwest
19
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
Site Plan
The Site
The south entrance on College Street incorporates a covered drop -off lane for hotel
guests. This entrance and a north entrance off the park provide convenient pedestrian
access for the public and for building occupants. An interior connection through the
building core promotes easy navigation to all building areas from the north or south
entrances.
A signature feature of The Chauncey is the integration of the site into the arts and
entertainment theme. The entertainment concept within the building will transfer to the
reconfigured parkto facilitate evening outdoor movie screenings. Agrand stairfeature
will mitigate the elevation change between the park and the main floor of the building
while providing seating along the park's edge. Terrace areas immediately adjacent
the building will provide outdoor dining space with dramaticviewsto the park. Agently
sloping lawn will be created in Chauncey Swan Park. Acurved seating wall along the
west edge of the park will provide fixed seating and new plantings on the west and
north perimeters of the park will buffer street noise and provide a sense of privacy
for park users. A removable movie screen will be hung from the west wall of the
existing parking ramp during evening screenings. Existing lighting, planters, benches
and landscaping on the east side of the park will be updated to better coordinate with
the renovated park and and facilitate unobstructed views of the movie screen.
Storage rooms and accessible restrooms to support park activities are located in the
lower level of The Chauncey. 20
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Architectural Building Sections
Sectional view through the building identifying the functional areas of
each floor.
N 21
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Architectural Building Sections
Sectional view through the FilmScene theaters and the Commercial Class
A office floors above and parking level bleow.
PA
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Basement Parking Floor Plan
ra tit
7 0 1 B IS H
Basement Level
Vehicular access is from the lowest level of the adjacent Chauncey
Swan Parking ramp. The private secured lower level garage
accommodates approximately 52 parking stalls dedicated to building
occupants.
is 23
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
woni
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First Floor Retail Floor Plan
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Level One
Level One is the main level of a two story space accommodating two
movie theaters (100 and 150 seats), a boutique style bowling center
total of 12 lanes on 2 levels), restaurant, hotel and building lobby and
hotel check in desk. There is a covered drop off entrance on College
Street to the south and a second pedestrain entrance on the north
side of the building adjacent the park. Open art and sculpture galleries
are accommodated around the theaters and the hotel lobby.
This level is approximately 24,140 GSF.
Mzl
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Mezzanine Retail Floor Plan
Storage Mechanfcal Men Wo mert O£tfce OfficeStorageMechanfcalMenWomert
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Isar Mezzanine
Level Upper levels of the theaters and bowling center are accessed
from the mezzanine level with additional gallery space around the
theaters. Large areas are open to the level below, creating a
stimulating environment. This floor is accessed by public stairs and elevators
on the north and south sides of the building, a grand staircase from
the lobby and by connection to the Chauncey Swan Parking
Ramp. This level is approximately 19,406
GSF.
25
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Third Floor Commercial Office Plan
III I I t#-I LQ
0 1 B I6 q.
Level Three
This level is class A office space. Large windows on all sides will
fill the office with natural light. This floor plan layout identifies the
opportunities for the floors to be subdivided.
This level has have approximately 18,000 NSF (19,800 GSF)
26
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Four - Fifth Commercial Office Floor Plans
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7 v a ro Fr
Levels Four through Five
These levels are class A office spaces. Large windows on all sides
will fill the offices with natural light. This floor plan layout provides the
flexibility for single tenant useage.
These levels each have approximately 18,000 NSF (19,800 GSF)
48 27
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
M
Sixth Level Hotel Floor Plan
Room Room Room Room Room Room Room
I 607 606 605 604 603 602 601 p
i 550 SF 550 SF 550 SF 550 SF 550 SF , 550 SF 550 SF
I
Room608
550 3F
Room
609
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77
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Level Six
One (1) hotel suite and eight (8) hotel studios with balconies are
located on level six. Afitness center, laundry, lounge and roof garden
are available to hotel guests and building residents on this level.
P&I
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Seventh - Eiahth Hotel Floor Plans
a
Pn ax Pmaw Pnwp
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7071807 7061806 705/805 7041804 7031803 7821802 7011801
550 SF 5505F 550 SF 5505E 5505£ 550 SF 5505F
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708/808 710/8 10 711/811 712/812 7131813
p• SSO SF 5505£ 5505E 3505E 5505E
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Levels Seven and Eight
Levels seven and eight have a total of twenty six (26) hotel suites
and studios with balconies.
29
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Ninth Residential Floor Plan
r:M
Unrt Unit Unit Unit unit Unit unit
e. 997 906 965 904 903 902 901 n1
SSO SF 5505F 5505F 550 SF 5W SF Md)SF 3303E 11jlf
flvn
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5 S50 Z divkh S SF each
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Ninth Floor
The ninth floor is the first residential floor with 13 studio and one bedroom
condominiums.
a 30
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Unit9?2 Unif943
aso Sr 6695E
Q
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FI 11..1
Ninth Floor
The ninth floor is the first residential floor with 13 studio and one bedroom
condominiums.
a 30
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Tenth - Sixteenth Residential Floor Plans
11503, Roo!
Units UnitsBelow
IWf, 1101, 0101, 1301. ]002, 5102, 1201 1301 IW1503.
u0t, 1501, 160] 1102, 1505, ]501 3
1.6505F 1,1003E
i
Units units
tOY. 1004 1155, 1205, 1505, 1Wi, 1101. 12d, 1001,
1205. 1505. 1605 164 ]502,1602
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r 1306,]104 . 15061606
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Tenth - Sixteen Floors
Levels 10 -16 are residential floors with a mixture of one and two bedroom
condominiums. These floors have six (6) units per floor as designed. The
units are set up on a 550 SF module that will allow them to reduce or
increase in size to respond to market demands.
31
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Seventeenth - Eiahteenth Residential Floor Plans
Roof
nits Vnits
Below
1101. 1001 1703.1603
1.6505F T.f005F
1
units
W $!. 1705,1505
I, 610 5F
Lobby
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urt »s
1101, f00]
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Seventeenth - Eighteenth Floors
Levels 17 & 18 have a mixture of one and two bedroom condominiums.
These floors have five (5) units per floor as designed but, as with levels 10-
16, the size may be modified. A roof garden is accessed from level 17.
32
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Nineteenth & Twentieth Residential Floor Plans
m.& a
Roof
unit unit
Below
MI 903
ZM SF 3,Y90 SF
An w
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Nineteenth Floor
Y ~ F fiR
Twentieth Floor
Nineteenth and Twentieth Floors
These floors provide four, two bedroom, two story residential
penthouse units
49 33
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Conceptual Square Footages
The conceptual building areas are as follows:
Basement Floor - Parking 24,086 SF
First Floor- Retail 24,140 SF
Second Floor /Mezzanine - Retail 19,406 SF
Floors Three thru Five -
Commercial Class A Office Space 59,400 SF
Three Floors 3 @ 18,000 NSF
Floors Six thru Eight — Hotel Units 33,750 SF
Hotel Suites 3 @ 1,100 NSF
Hotel Studios 32 @ 550 NSF
Floors Nine thru Twenty — Residential Units 122,550 SF
One Bedroom 12 @ 550 NSF
One Bedroom 35 @ 1,100 NSF
One Bedroom 18 @ 1,650 NSF
Two Bedroom with Loft 1 @ 1,500 NSF
Two Bedrooms with Loft 2 @ 2,050 NSF
Two Bedrooms with Loft 1 @ 2,600 NSF
Total Building Gross Square Feet 283,332 SF
RLI
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
9. Narrative describing the proposer's plan for construction and
financing of the Project. This should include:
a. organization and management approach to the Project;
The Developer (The Chauncey, L.L.C.) The Design Professional
Rohrbach Associates PC) and the General Contractor (McComas -
Lacina Construction, L.C.) have worked closely together to create an
urban, downtown - density building. We are committed to excellence in
design, materials, management and urban uses to create a dynamic
facility. We will utilize the same organization and management as was
used with the Plaza Towers project. The developer has been, and will
continueto be, intimately involved with decisions regarding configuration
of all areas (common areas, retail, office, hotel and residential), uses
that will be represented in the building, layout of residential units,
drafting of the horizontal property regime in a manner that maximizes
the potential of the building and synergy between the mixed uses, and
marketing of the building. moengroup will manage the building when
complete.
b. general schedule for completion of the Project following
property acquisition;
Schedule
Activity Months 112 13 4 15 16 17 18 19 110111112 13114115116117118119120121 22123124125126127128129130 31132133134135136137138139 49
Property
Acquisition
Design
GMP Pricing
Construction Docs.
Package 1 -Site Prep /Foundations
Package 2 - Structure /Shell
Package 3 - Finish
Mid America Relocation
son
Construction
Building Demolition
Site /Foundations /Structure
Shell /Residential Floor Finish
First /Mezzanine Floor Finish
97'
1911
The Chauncey, L.L.C.
Iowa City, Iowa
km'-
4 "__ -
e
College St. I Gilbert St Northeast Corner Project
c. plan for including or not including the MidAmerican Energy
property in the Project.
The development team has reviewed the proposed project site and
the potential connection to the Chauncey Swan Parking Ramp and
has concluded that the MidAmerican Energy property is a required
component to the success of the Project.
d. description of a general financing plan, preliminary pro forma
including anticipated and /or potential financing sources.
The preliminary project budget is $53,830,350.
The preliminary pro- forma, cost and potential financing sources are
set forth in the spread sheets below:
THE CHAUNCEY
20 Story mixed use development
Cost & Source of funds
Site acquisitionConstructionCost b.c,.t n.mb.1 p.,d.e by m: -1
Architectural and consultant fees
50,040,000
Survey
printingsoiltesting
construction testing
100,000
essential appliances, window treatments and furnishings 1,107,000
insurance during construction 20,000
Construction Interest 2,563,350
TOTAL 53,830,350
SOURCE OF FUNDS
equity and borrowed funds 40,380,350
gap (Tax Increment Funding requested) 13,450,000
THE CHAUNCEY
20 Story mixed use development
PRELIMINARY PRO -FORMA
INCOME
COMMERCIAL RENTS $3,751,969
RESIDENTIAL RENTS $1,992,000
TOTAL GROSS RENT $3,743,969
EXPENSEMAINTENANCE, REPAIRS,
UTILITIES, INSURANCE,
SERVICE CONTRACTS, etc (not
passed through to tenants
through to tenants) $327,871
PROPERTY TAXES (not passed
through to tenants) $654,100
TOTAL non -pass through
expenses $981,971
NOI $2,761,998
PROPERTY TAX PROJECTIONS OF COMPLETED PROJECT
Commercial Property Taxes $647,040
Residential (including hotel) Property Taxes $654,100
TOTAL PROPERTY TAXES $1,301,140
1911
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
e. copies of any letters of intent from prospective purchasers and/
or tenants.
1. FilmScene will lease theater components
Letter of Intent - FilmScene Pg. 38
Support Letter - The University of Iowa Pg. 39
2. Rohrbach Associates will purchase one floor of office space
approximately 18,000 SF) and will move its office to this office
level.
Letter of Intent - Rohrbach Associates PC Pg. 40
Financing of RAPC - Midwest One Bank Pg. 41
RONRRACM ASSOCIATES PC
A R c e i i e c. s
3. Developer will construct a functioning 12 lane, two level
bowling center
Bowling Market Survey* Pg .42
Key elements of the market study are attached. The entire 77 page
report is available upon request.
A ? 37
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Letter of Intent - FilmScene
1410 GRANT CT. IOWA CITY, IA 54440 319 - 541 -5443
WWW ICFILMSCENE ORG
September 17, 2012
Mr. Marc B. Moen
The Chauncey, LLC
221 E. College Street
Suite 300
Iowa City, Iowa 52240
RE: LETTER OF INTENT to lease space at The Chauncey
Dear Marc,
This will confirm that FilmScene has worked with the development and design team on The Chauncey
from the beginning of site selection and through the initial design process of The Chauncey. FilmScene
Board of Directors, by unanimous vote, committed to be part of The Chauncey development proposal.
Please let this letter serve as proof of our intent to lease theater, theater lobby and shared common space
in the proposed "The Chauncey" development. The space devoted exclusively to FilmScene under the
current building program is 6,886 square feet, not including building lobby and shared common areas on
both the first and mezzanine floors. Of that 3,734 square feet is devoted to the two theaters which are both
two stories in height. These square footages and configurations may be adjusted as the design is finalized
to meet our needs.
Upon acceptance of The Chauncey, L.L.C. proposal by the City of Iowa City to develop the site,
FilmScene intends to negotiate final lease terms with The Chauncey, L.L.C.
Thank you for your commitment to working with FilmScene on this exciting project in downtown
Iowa City.
Please contact the undersigned if you need any additional information.
Sincerely,
FilmScene
awi- {—-
BY. Andy Brodie
TITLE: FilmScene Co- Founder
FILMSCENE IS A NONPROFIT ORGANIZATION DEDICATED TO ENHANCING THE CULTURAL VITALITY OF
THE IOWA CITY AREA THROUGH THE PRESENTATION AND DISCUSSION OF FILM AS AN ART FORM.
Al 191.1
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Letter of Support - The University of Iowa
L,;
Ti- ll111'
UNIVERSITY
OF IOWA
MEMORANDUM
To: Marc Moen
From; Tom Rocklin and Douglas Tr],
Re: Your Development Proposal on Gilbert Street
Date: September 18, 2012
Office of the 5enier Vlee President
and Treasurer
305 esvp hall
Imva Ny, lowe 52242 -1336
3[A31z33 -aFv319- 353-1069
You have shared with us some of your thinking about a building project located neat the
downtown and UI campus that could have elements benefiting students. In particular we
discussed connections with student entertaitwiem vrd academic interests with cinema and lire
arts as a concept that could be mutually beneficial, 'Toward that end we introduced you to those
within the College of Liberal Arts and Sciences who could provide the best insight about
academic interests as well as those within the Division of Student Life that are engaged with
students outside Ike classroom. Ifyour group is selected as the developer, we can continue our
discussions on the cinema components and how UI students may be involved.
We look forward to further considerations of ideas where private development and University
interests may coincide. Thanks for your continuing interest and engagement.
cc: David Kieft
49 1«]
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Letter of Intent - Rohrbach Associates PC
r?
ROHRBACH ASSOCIATES PC
T R C H I T F C T 5
September 12, 2012
Marc B. Moen
The Chauncey, LLC
222 South Linn Street
Iowa City, Iowa 52240
RE: The Chauncey Development
Marc:
Please let this letter serve as our `letter of intent' to purchase one full floor
approximately 18,000 SF) of Class A office space in the proposed new
The Chauncey" development. Further it is our intent to move our offices
onto that floor once the project is complete and lease the balance of the
floor to a new leased tenant.
Upon acceptance of The Chauncey L.L.C. proposal to build this project by
the City of Iowa City, an L.L.C. will be created to purchase the property.
That L.L.C. will than lease the space to Rohrbach Associates PC for their
architectural practice.
We have attached a letter of intent from Midwest One bank for assistance
with the financing of our project.
Please let us know if you need additional information.
Sincerely,
h Associates PC
Sohrbach AIA
IS
Commerce Center 325 E W.,hmgtan Suite 400 P.O. Box 2238 I. City, IA 522442238 V;319.338.9011 Fox: 319.338.9872
40
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Financial of RAPC - MidWestOne Bank
tom,
September 25, 2012
Mr. Steven A. Rohrbach
Rohrbach Associates, PC
325 E. Washington Street
Suite 400
P.O. Boa 2238
Iowa City, IA 52244 -2258
RE: The Chauncey Development
Dear Steve
Please let this letter serve as Midwest ONE Bank's IMWO) "letterof intent" to finance the purchase of
one full floor of office spare in the proposed new "The Chauncey" development jprojectl. This "letter of
intent" is subject to MWO Loan Committee approval.
MWO has reviewed the project with a real interest in moving forward with a formal financing
agreement. MWO understands it is your intention to establish a LL C. to purchase the property with the
intent of Rohrbach Associates PC renting a portion of the space with the balance to be leased.
Please let me know if you
Officer
any additional information.
www.mich restone-.Cam ° (SOS)) 2=47 -4418
49
mria Member FDIC Pl7
51 l
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Bowling Survey
Bowling Center Survey
Prepared For: The Chauncey, L.L.C.
Iowa City, Iowa
Prepared By: Bill Kratzenberg
Bowling Services, Inc.
September 7, 2012
F] 514
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
OBJECTIVE
College St. I Gilbert St Northeast Corner Project
Bowling Services, Inc.
William Kratzenberg
Marc Moen of The Chauncey, L.L.C, requested a market survey and financial
forecast for the purpose of including bowling lanes within a development project in
downtown Iowa City. This proposed development is a high rise building providing
bowling, two theatres, education /conference space, retail outlets, offices, and
condominiums. The city is requesting proposals for the development of this land which
is currently unoccupied and unattractive. The project being proposed is designed to
provide the city with downtown attractions as well as meeting some needs of the
University.
A survey of the University of Iowa students indicated that bowling was the most
requested activity not offered on the campus. This project addresses the student's
request, the need of the community for theatres, plus educational and conference
space. With the sale of this property, the city will benefit by creating an ongoing income
stream from real estate taxes, improving the site and providing additional services to the
community.
The survey is to determine the feasibility for the bowling portion of the project and
to provide for the recommended number of lanes and activities to be included.
vdge
9'
L
i, Iowa
5 91
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
BUSINESS SUMMARY
The survey is positive for the construction of a Bowling Entertainment Center with
12 lanes, food service, a sports observation bar, and party /meeting rooms.
All demographics are positive to support the recommendation of this study.
There are no modern bowling centers in the defined market.
The population to lane ratio is more than adequate to support the
recommendation of this study.
The site will fully impact the market and will support a Bowling Entertainment
Center.
The location in the downtown area expands the opportunities beyond the
primary draw area because of the additional attractions offered.
This center will offer equipment features unique in the market area.
The continued population growth in the area will increase the potential for this
center.
The financial projections provide adequate cash flow to support investment in this
project.
371 Pa g
Al
Iowa City, Iowa
01
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
MARKET /SITE INFORMATION
College St. I Gilbert St Northeast Corner Project
Bowling Services, Inc.
William Kratzenberg
The primary trade area as defined by SMA is over 455,000 people, with over
1,000,000 visitors per year and is one of the strongest hotel markets in the state. The
site for this project will be in downtown Iowa City, close to the campus of Iowa
University. The major employers are the University and the Iowa Medical center, which
includes Veterans Hospital, University of Iowa Hospital, and clinics.
Iowa City is strategically located in the center of the largest population region in the
state attracting workers from a 60 mile radius. There are 66,537 employees in 4,246
businesses within the determined 10 mile draw area of the site. The list of the largest
employers reflects 10 companies employing 500 - 1,000, 7 companies employing 1,000-
2,000 and 2 with more than 2,000. The largest employers are Iowa University and
University Health Care with over 26,277 employees.
The redevelopment of the land currently owned by the city will be adding some
needed services for the city and students, as well as a tax revenue base for the city. In
addition, the development proposal being submitted will dramatically improve the
appearance to the area.
Employer Number of Employees
University of Iowa 18,486
University of Iowa Hospital and Clinics 7,791
Iowa City Community Sc 1,676
Veterans Hospital Administration 1,351
Mercy Iowa City 1,266
ACT, Inc. 1,254
Pearson Educational Measurement 1,200
Hy -Vee 1,166
City of Iowa City 1,140
Systems Unlimited 838
401 Pa g
49
Iowa City, Iowa
i:7
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
491 Page
D
DEMOGRAPHICS
The demographic data utilized in this study was
obtained from STDB, an independent company
providing statistical information.
Studies obtained from STDB are based on the
most current information available regarding the
specific sites within the market. This data source is
considered the most reliable and consistent
information available from which to make qualified
recommendations, therefore it is the primary
information used in developing the conclusions of this
report. Population, employment and other
demographic information was obtained and reviewed
from the Chamber of Commerce, Iowa City
Development Group and Community Development
department; however this information is not specific to
the site but helpful in understanding the area.
A copy of the STDB report is included in this
report.
The demographic data for this site is compared to
the demographics of other successful family
recreation centers recently constructed.
Iowa City, Iowa
Ell
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
Demographic Analysis
College St. I Gilbert St Northeast Corner Project
Bowling Services, Inc.
William Kratzenberg
H uniber ai lance
Iowa City
ITMile Radius
12
Mi hN t
10-Mile Radi us
12
Midwest
IMile Radius
16
Midwest
15-Mie Radus
24
Current Population 120,067 39.949 82798 W. 043
Change since 19% 37.2 12.3 5.6) 10.4
Projected 5 year change 9.2 12.8 2.0 3.6
Per year growth 1.85 2.6 0.4 9.8
C Househdds 48,915 15,364 35,999 38,310
Average Aqe 29.8 35.6 32.1 32.2
Average H ousehold l neon 65,755 72.490 38,384 57.5T7
llnder315,001/ 13.1 8.6 28.6 6.7
NErrplgeesin Drawarea 66,527 14,705 27,690 46,711
N Employers 4,246 1,292 2,130 2,826
Effective Population 112,059 36,513 59,117 82,144
Hunter of effective lanes 36 12 16 fi0
Population to lane ratio 3,137 3,042 3,694 1,369
All economic indicators in the defined market reflect positive comparisons. The area
has obviously experienced solid growth. Income and population to lane ratio compares
favorably to other surveys and support the construction of a bowling recreation facility.
The incomes clearly indicate the availability of disposable income for entertainment and
recreation expenditures
Attached is an analysis of the impact of the college students on the demographic
profile of the market relative to population and household income levels.
Of the demographic information from this special report two factors are most
important; one is the 11,000 students included in the general population with very low
income thus reducing the average household income levels; secondly, the estimated
student population included represents an estimated 36% of the total student population
of 30,294. These additional 20,000 students are not included in the population data but
are presently living and spending dollars in the community. This is reflected in the
higher than normal (15.1 %) of low household incomes under $15,000. For the
purposes of this report the analysis and ratios developed are conservative and
understating the actual population in the market. It is impossible to calculate the amount
of money brought into the market by the additional subsidies provided to the students
which would also escalate the level of household incomes.
501 Pa g Iowa City, Iowa
EVA
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
John Millar, who has spent part of his career assessing "university- dominated
college towns," says Iowa City's young adults represent an annual hidden economy of
more than $100 million.
A strategic assessment conducted by Virginia -based Divans Real Estate Inc. and
presented to the Iowa City Council, stated the $105 million in hidden economy could
support roughly 270,000 square feet of retail property.
The report also states about 11,000 18- to 24- year -old University of Iowa students
are counted in the U.S. Census as households with little or no income. The report states
that the result is a "corruption" of the average household income as the average student
spends about $3,500 on shopping center goods per year.
Millar mentioned a stark contrast between the average household income of in -state
University of Iowa students & families averaging about $70,000 in annual household
income and Illinois families - primarily from western Chicago suburbs - coming in at
almost $120,000 annually.
Once you consider the family household income, I was surprised by the affluence,"
Millar said.
The city commissioned the study in June to try to determine a more accurate picture
of the area's average household income as an incentive for potential business owners
who might consider locating in the downtown Iowa City area.
Iowa City Economic Planning Director Wendy Ford said the study, prepared for Iowa
City and the University of Iowa, which split the $50,000 bill, involved a community
survey of more than 3,500 respondents who were asked about what kinds of
businesses they would like to see in the downtown area.
The "tremendous sample" of respondents to the survey identified an interest in
seeing new businesses in the downtown and Riverfront Crossings District in the form of
a movie theater, bakeries or women's apparel stores. Only 25 percent of respondents
addressed an interest in national restaurants.
Millar also noted Iowa City's local business push for the Self- Supported Municipal
Improvement District as the perfect driver for encouraging new businesses to the area.
With the "huge gap" of student - reported income removed, Millar said Iowa City's
average annual household income within a 1 -mile radius of downtown is about $92,000.
511 Pa g Iowa City, Iowa
48
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
With students included, the average drops to about $44,000. The 5 -mile radius shows
an average of $93,000 annually without the students included versus $65,000 with the
students with the average maintaining a similar trend up to the 20 -mile radius.
Other large economic drivers in the community addressed by the study included the
University of Iowa Hospitals and Clinics and college sporting events with 51,000 visitors
to Johnson County per Hawkeye football game and roughly $100 million added to the
economy for a seven home game season.
521 Pa g Iowa City, Iowa
CG]
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
Impact on Draw Area
College St. I Gilbert St Northeast Corner Project
Bowling Sendces, Inc.
William Kratzenberg
Center Lanes Dstanee from Site Rating (1 -1g) % Impact Effedwe lanes
New Site 12 0.0 10.0 100 12
Colonial 24 40 50 100 24
Total 36 36
When measuring the impact existing bowling centers have on a new center site,
consideration is given to the distance between the new center site and the existing
centers, the services offered, location within the draw area, condition of the equipment,
convenience of parking, and location.
531 Pa ge
49
19.99 io i co..oa B-11
IIA l0 6 pen4i.' u
a Ica 1
Fig 23
KIU'5 GAME
7
Brwrswkk . ; I 8rurtawick ..
MOM
cosw cmwerr wn
O
COSMIC OR
cosmic OR
NON- COSMIC BOWLING'
YVom •o.'I. NON - COSMIC 60WLING
Bnnuwkll Bmnswick Brunswick Brunswkk
Iowa City, Iowa
6161
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
Population to Lane Ratio
College St. I Gilbert St Northeast Corner Project
Bowling Services, Inc.
William Kratzenberg
When measuring the impact existing bowling centers have on a new center site,
consideration is given to the distance between the new center site and the existing
centers, the services offered, condition of the equipment, convenience of parking, and
location.
One of the most important measurable factors in determining the feasibility for a
Bowling Recreation Center is the ratio of the effective population to the number of
effective lanes within the defined market of the proposed site.
The 2010 population in the 10 -mile radius of the proposed site is 120,067, which will
grow to 128,952 by 2014, based on a projected growth rate of 1.85% per year. The
effective population is reduced by the population with incomes of less than $15,000,
which is 15.1 %. The effective population will be 112,059 after making the adjustment
for low incomes.
With 36 effective lanes, which include the recommended 12 lanes, the population to
lane ratio is 3,137 to one. A ratio of 2,000 to one is recommended for this market. If the
student population of 20,000 that is not included in the population, the ratio would
elevate to 3,668 to one. This is a market that is clearly under - serving the bowling
community. If this project was built to meet the bowling potential of the market it could
be 32 lanes rather than the recommended 12 lanes. The addition of this center will have
no impact on the existing center based on its location and business plan to attract group
business, company outings, student activities and birthday party programs.
541 Pa g
i
1 11I
s
Iowa City, Iowa
51
The Chauncey, L.L.C.
Iowa City, Iowa
Prepared for The Chauncey, L.L.C.
September 7, 2012
William M. Kratzenberg
5442 Gallery Court
Atlanta, Georgia 30338
Experience
College St. I Gilbert St Northeast Corner Project
Bowling Services, Inc.
William Kratzenberg
Phone: 770.394.0285
Cell: 770.329.8233
4197 — Present Consultant
Consultant to Bowling Industry. Clients include Brunswick
Corporation and various bowling proprietors most listed on
web site www.bowlingservicesinc.com. Proprietor of 24 lane
center, active participant in MUBIG (organization of chain
operators), served four years on Board of Directors of
Bowling Proprietors Association and remain on committees
for member benefits and education and training.
12192 -4197 Managing Partner, American Recreation Centers,
Sacramento, California
13 bowling centers acquired and operated for joint venture
partnership with American Recreation Centers, a publicly
traded company.
11191 —12/92 President, Louisiana Recreation, Inc.
Purchased and operated three bowling centers.
2190-10192 Senior Vice - President, AMF Bowling Centers, Atlanta,
Georgia
Responsible for $53,000,000 sales, 2,500 employees.
Operating Cash Flow 32.7 %. Responsible for Marketing,
Personnel, Service and Construction Departments and Food
and Beverage operations.
3182-1190 Vice - President / Director of Operations, All American
Bowling Corporation, Atlanta, Georgia
Responsible for bowling and food service business. Annual
sales: $25,000,000. Profit improvement on existing business
41.2% in three years. Total Company profits grown 138.2 %.
Responsible for Operations, Marketing, Personnel and
Service departments.
681 Pa g Iowa City, Iowa
6%
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
2179-2182 Director of Operations, Brunswick Corporation,
Skokie, Illinois
Responsible for marketing and the operation of 250
company -owned bowling centers with 6,000 employees.
Annual sales exceeded $120,000,000. Direct responsibility
of Regional Managers, Director of Marketing Services and
National Food and Beverage Manager. Reported to Division
President.
3175-1178 International Regional Manager, Brunswick Corporation,
Skokie, Illinois
Supervision of six District Managers with responsibility for 52
bowling center operations in the U.S., Canada and Europe.
Annual sales: $19,000,000. 1,800 employees. Achieved best
R.O.S. of four regions.
2173 to 2175 District Manager, Brunswick Corporation,
Charlotte, North Carolina
Supervision of 11 bowling center managers. Annual sales:
4,000,000. 275 employees. Won the Divisions President's
Award for the greatest profit improvement of 25 districts in
the company.
1171 to 1173 National Merchandise Manager, Brunswick Corporation
Development of marketing programs for product sales in
bowling centers. Responsible for sales promotion,
advertising programs, point of sale materials, product
selection, production scheduling and inventory control.
Supervised in -plant vending operations. Annual sales:
1,200,000. R.O.S. 14%
1168 to 12170 Management Contract Representative, Brunswick
Corporation
Developed the program structure and marketing concept to
sell contract management services to investors.
9165 to 12167 Project Manager, Brunswick Corporation
Acquired bowling centers for company operation, negotiated
leases and performed market and site evaluations to
determine profit potential.
10164 to 8165 Market Development Manager, Brunswick Corporation
Developed marketing programs for bowling proprietors to
improve the profitability of their business.
691 Iowa City, Iowa
F-14 69
The Chauncey, L.L.C.
Iowa City, Iowa
College St. I Gilbert St Northeast Corner Project
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
8160 to 9164 Sales Representative — Bowling Division, Brunswick
Corporation
Annual sales $700,000 to $1,000,000
6154 to 7160 Route Salesman, Jays Foods, Chicago, Illinois
Sale of snack products to retail outlets; servicing accounts
and new market sales responsibilities.
701 Pa g
Education
University of Cincinnati
Graduated in 1960, Marketing, BBA
University of Wisconsin
Product Manager Seminar
International Marketing Seminar
Sales Management Seminar
Brunswick Advanced Management Programs
Role of the General Manager
Utilization of Human Resources
World -Wide Marketing
Harvard Graduate School
Strategic Marketing Management
Iowa City, Iowa
I
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Prepared for The Chauncey, L.L.C. Bowling Services, Inc.
September 7, 2012 William Kratzenberg
Bowling Industry Activities
Bowling Proprietors' Association 2002 — Current
Board of Directors
Member National Bowling Council 1986-1992
Marketing Committee
Education Training Committee
Senior Bowling Committee
Bowling Proprietors Association 1982-2001
Chain Committee
Senior Bowling Committee Chairman
Long Range Planning Committee
Strategic Committee
Standards Committee Chairman
Single Membership
Multi -Unit Bowling Information Group 1978 —2002
President
Vice President
Treasurer
Director Chicago land BPAA 1978-1980
Brunswick Corporation 1960-1982
All American Bowling Corporation 1982-1990
AMF Bowling 1990-1992
MidAmerica /Red Carpet 1994-1997
Industry Consultant 1997 — Present
Competitive Surveys
Pricing Review
Operation Overview
Financial Analysis
Market Studies
Marketing Planning
Business Plans
711 Pa g
49
Centers Supervised
256
47
70
13
Iowa City, Iowa
6'1•.'1
The Chauncey, L.L.C.
Iowa City, Iowa
Val
Al
r
I
I
I
College St. I Gilbert St Northeast Corner Project
f. description of the marketing approach to secure purchasers or
tenants.
The commericial uses at The Chauncey will be attractive to potential
office users and residents.
Marketing has already begun:
RETAIL /COMMERCIAL LEVELS:
2 screen Cinema: commitment received from
FilmScene (http: / /www.icfilmscene.org /)
2 story 12 lane bowling center: The Chauncey,
L.L.C. has committed to building a bowling
center. Market survey objective and business
survey is attached. (Entire 77 page document is
available.
Movie theater and bowling alleys rank very high on what
consumers want downtown as determined by the Downtown
Iowa City Strategic Assessment completed by Divaris Retail
Estate in 2011. This is true of all consumer groups surveyed
University of Iowa Students; University of Iowa Faculty and
Staff,- and Iowa City /Johnson County Residents.
OFFICE LEVELS:
Office Space: 54,000 NSF of class "A" of office
space is proposed.
Commitment received for one third (1/3) of the total
office space.
The Downtown Iowa City Market Niche Analysis commissioned
by the City of Iowa City and completed by Marketek in 2007
concluded that downtown Iowa City has the potential to capture
50,457 SF of new office space per year from 2004 to 2014. The
Marketek report also concluded that a passive approach to
downtown office development, however, would likely result in
the achievement of only a fraction of its estimated potential."
No Class A office space has been added downtown since the
Marketek report was completed. To capture new office users
office space must be developed proactively
HOTEL LEVELS:
Developer is consulting with Davidson Hotels and
Resorts (http: / /www.davidsonhotels.com) regarding
guest room layout and operation of the hotel.Davidson
manages Sheraton Iowa City Hotel and hotelVetro,
both of which are successful. Davidson Hotels and
Resorts is the preferred operator of the hotel at The
Chauncey.
6%
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
t
There is demand for well located, well managed, quality
properties downtown evidenced by:
Consistent 100% occupancy and continued strong
sales at Plaza Towers
Long term lease of second level class A office
space at 118 E College Street (currently under
construction)
Strong pre - construction commercial andresidential
sales at Park@201 (currently under construction)
Serious requests from numerous prospective
tenants and buyers (commercial and residential)
requesting detailed information on pre -sales and
pre- leasing on downtown projects.
g. The proposed purchase price and the explanation of the
purchase price for the Project property.
Fair Market Value should be determined by an appraisal which
factors in the restrictions on the uses within the new development.
h. The proposed amount and description of gap financing
assistance for the Project.
Gap financing in the form of Tax Increment Financing JIF) will be
requested. Based on preliminary cost and proformas, the amount
requested will be $13,450,000. The projected increase in property
taxes of the completed project is over $1.3M annually. See spread
sheet below.
THE CHAUNCEY
20 Story mixed use development
Cost & Source of funds
Site acquisitionConstructionCost c1d91111,11P wdmw 91mm r11 11 50,040,000
Architectural and consultant fees
Survey
printing
100,000
soil testing
construction testing
essential appliances, window treatments and furnishings 1,107,000
insurance during construction 20,000
Construction interest 2,563,350
TOTAL 53,830,350
SOURCE OF FUNDS
equity and borrowed funds 40,380,350
gap (Tax Increment Funding requested) 13,450,000
WA
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
90. A statement relative to whether any of the principals,
development entities, or members of the development team
have ever been indicted for or convicted of a felony, and a
description of any and all litigation involving the principals,
development entities, or members of the development team
during the past five years (Complete Exhibit "B ").
None of the principals, development entities, or members of the
development team have ever been indicted for or convicted of a
felony. The only litigation involving the principals, development
entities, or members of the development team during the past five
years is set forth in Exhibit "B" below.
EXHIBIT "B"
LISTING OF LAWSUITS OR LITIGATION WITHIN
THE PAST FIVE YEARS
Lawsuit or Litigation
1. McComas - Lacina Construction, L.C. v. TLD -WT, L.L.C., et al. — Johnson
County No. EQCV073009 and TLD -WT, L.L.C. v. McComas - Lacina
Construction, L.C., Johnson County No. LACV072976.
Status or Outcome
1. This litigation was filed after a mechanic's lien was filed by McComas -
Lacina Construction, L.C. in the amount of $160,906.24, plus interest, by
virtue of the failure of TLD -WT, L.L.C. to make payment on the
construction obligation for construction of the building at 2225 Mormon
Trek Blvd., Iowa City, Iowa. Both of these lawsuits, which have been
combined for trial purposes, are still pending.
Comments
1. An exhibit attached to the petition in the action in which TLD -WT, L.L.C. is
the Plaintiff, a letter from Neumann Monson Architects dated March 4,
2010, indicated that "maybe $7,500" would be a sufficient amount for the
owner of that project to withhold from McComas - Lacina Construction, L.C.
It is felt that the position of TLD -WT, L.L.C. in both of these lawsuits is
without merit.
49 58
The Chauncey, L.L.C.
Iowa City, Iowa
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THE UNIVERSITY
OF IOWA
Hills Bank
and Trust Company
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College St. I Gilbert St Northeast Corner Project
11. References from financial institutions, city governments, and
community organizations that will permit the City to verify
the capabilities of the proposer.
1. Reference Letter - Iowa City Chamber of Commerce pg, 60
2. Reference Letter- Iowa City Area Development Group pg. 61
3. Reference Letter - The University of Iowa
4. Reference Letter- BBSSI
5. Reference Letter - U of I Community Credit Union
6. Reference Letter - Hills Bank and Trust
7. Reference Letter - Evergreen Capital
8. Reference Letter - Iowa City Coralville Area CVB
9. Reference Letter - Cedar Rapids Bank & Trust
10. Reference Letter - Mercy Hospital - Iowa City
11. Reference Letter - The City of Coralville
pg 62
pg. 63
pg. 64
pg. 65
pg. 66
pg 67
pg 68
pg 69
pg 70
We
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Iowa City Chamber of Commerce
September 25, 2012
City of Iowa City
ATTN[ Tom Markus, City Manager
410 E, Washington Street
Iowa City, IA 52240
Dear Mr. Markus,
TAAREA CHAMBER
OF COMMh:RCF.
On behalf of the Iowa City Area Chamber of Commerce, please accept this reference for
moengroup.
Marc Moen and his partners have significantly improved Iowa city's financial standing. The
Vogel House, Winteway Building, and Plaza Towers projects have increased the Iowa City tax
base and attracted non - student residents and office workers who support downtown retailers.
moengroup projects have enhanced the city's dynamism. Their contemporary architecture,
interlaced with our beautiful historical structures, creates an urban environment that appeals to
the knowledge workers who are critical to our economy.
Moan's buildings also include more subtle notable attributes They represent a vision that
demonstrates our potential_ Change is uncomfortable for some people, but initial resistance to
moengroup projects is frequently followed by not only acceptance, but appreciation. Some of the
largest detractors of a moengroup plan have subsequently become joyful inhabitants of the
building!
A stunning example of moengroup's work, Plaza Towers, is more than a building; it's a
community center. The partners in moengroup deliberately included the accoutrements sought
by downtown residents: a grocery store, fitness center, fine restaurant, and yoga studio. The
moengroup is committed to establishing buildings with 'third spaces," where the community can
congregate. These structures provide a place for public discourse that fosters community
conversations.
The moengroup partners are generous philanthropists who regularly host fundraisers, and
contribute liberally to community non - profits, such as Riverside Theatre, the Engled Theatre, the
Community Foundation of Johnson County, Iowa City Public Library, Habitat for Humanity, and
the United Way of Johnson County.
moengroup projects are the envy of many communities. We are grateful that Marc Moen and his
partners choose Iowa City as the home for their stunning architecture, and we hope you will
continue to support their endeavors .
WI warm regards,
Nancy Quell t
President ED
is
325E VVaaingwn
Suite 1m
lain Ciiy, IA 54240
Telephone. 13191317-9537
Fnc 131913389956
tivww iowacilvalca W In
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The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Iowa City Area Development Group
c, Iowa City Area
Development Group
Extraordinary opportunities
in unexpected places.
September 12, 2012
City of Iowa City
Attention: Tom Markus
410 E. Washington St.
Iowa City, IA 52240
It is with great honor that we submit this letter of reference for Rohrbach Associates PC
Architects.
As one of the prominent Iowa City architects whose work has demonstrably benefitted the
landscape of this community and region, the principals of this firm have long supported the
views and mission of the Iowa City Area Development Group.
Their modern vision for creating unique, inviting spaces with distinctive eye for detail in the
structures they have designed has created significant benefit to the area as we work to attract
investment, businesses and talent.
ICAD is eager to work with the Rohrbach team in marketing the needed office space this project
will bring to the city. With the size, location and concept of this project it would be an ideal fit
to be featured nationally as part of the Shovel Ready Certification network of site selection
consultants and national real estate firms.
In closing, we are grateful for the ongoing support Rohrbach Associates has provided to ICAD
and the Iowa City Area and trust they would be a valuable partner to the city for this project.
Sincerely,
Mark Nolte
Interim President
Iowa City Area Development Group
mnolte@iowacityarea.com
325 E. Washington Sheet, Suite 101 Iowa City, IA 52240 319.354.3939
IowaCityArea Development.com
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The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Lj
THE LIJL'
UNIVERSITY
OF IOWA
September 4, 2012
Rohrbach & Associates
325 E Washington Street
Iowa City, Iowa 52240
To whom it may concern,
Reference Letter - The University of Iowa
FACILITIES MANAGEMENT
Planning, Design & Construction
This letter is written in reference to Rohrbach & Associates and the design - re[ated work they have
provided for the University of Iowa during my 19 years of serving the campus, as a project manager, and
now as Director of Planning, Design & Construction.
The University of Iowa completes roughly $150M of construction work on an annual basis, in
maintaining and improving the campus. All of the design work associated with this construction is
managed by University staff, but provided through contracts to State- of-lowa consultants. Rohrbach &
Associates have, through their consistent and positive performance, become one of a small group of
architecture] firms typically called upon by the University for design services.
1 have come to respect the expertise and input provided by Steve Rohrbach and his staff and they have
Consistently answered every difficult challenge we have placed before them- The level of Care by which
Rohrbach completes construction documents results in fair and competitive bidding by contractors in the
region and issues or errors and omissions are seldom if ever a problem of project delivered by Rohrbach
Associates.
The firm is very dedicated to this community and University and their commitment is evident in the hard
work they do on behalf of our objectives.
I fully endorse Rohrbach & Associates as a turn worthy of consideration for any range of project types,
though they have excelled on projects at the University in projects that include research, housing and
student services.
Regards,
Rod Lehne
Director
Planning, Design & Construction
48
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The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - BBSSI
September 11, 2012
Mr. Marc Moen
The Moen Group
221 E. College Street
Iowa City, IA 52240
Dear Marc:
It is with sincere pleasure that I write you in regard to our experience in working with
your team on the Plaza Towers construction financing. At that time, I was the
Managing DirectortSVP of BB Syndication Services and negotiated the financing
parameters with you on behalf of BBSSI and worked closely with you throughout the
whole process.
As we both know, this was a complex pmject due to the many moving parts involved
between the residential, commercial, and hotel units as well as working with Iowa
City staff on their portion of the funding. When we became involved in the project it
was relatively late in the game and all the pre -sale and pre -lease requirements had
been met. What hadn't boon received was final approval from the City Council as I
remember but that was quickly taken care of While the Moen Group and BESS] did
a lot of work on this project, d wouldn't have happened without great help from the
City of Iowa City, (especially Karen Franklin 8, Eleanor Dilkes). In financing over
256 of projects throughout the U.S. over the years, this one project stands out as a
truly collaborative effort that was organized and "shepherded" by the Moen Group to
its ultimate success. Perhaps the best part of it all was to be part of making a
landmark project possible that undoubtedly will be around for many years
complementing all the improvements done to the College Street neighborhood.
Please feel free to have anyone who may have questions relative to the working
relationship enjoyed by all to call me directly and I will expound further in detail if
needed. It admittedly has been a few years since this financing took place but the
memory of the cuality of the project and the Moen Group team hasn't faded one bit.
Devi W. Dahli
Madison, WI
668) 516 -9179
48 f:B1
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - University of Iowa Community Credit Union
319 - 339 -1000 or 500- 397 -3790 • www.uiccu.org
Commercial Services
P9 Bo. 2246, Iowa City, Iowa 52244
September 14, 2012
City of Iowa City
410 E. Washington Street
Iowa City, 1A 52240 -1826
RE: Letter of reference for Marc Moen
Dear City of Iowa City,
more Mom is a valued member of the University of Iowa Community Credit Union ( UICCU). UICCU has
been fortunate to have had the opportunity to finance several commercial real estate loans with Marc, including
the plaza Towers and the former Vito's building in downtown Iowa City -
Through the real estate projects that he has taken on in downtown Iowa City with the UICCU, Marc has
demonstrated his ability to develop premium quality buildings unequaled in the vicinity.
My interactions with Marc find him to he prepared, organized and well grounded in his approach to developing
new projects. Please do not hesitate to contact me if I can provide further information.
Yours truly,
Wilson
Senior Vice President, Commercial Services
49 BSI
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Hills Bank
Hills Bank
and Trost Company
9/07/12
City of Iowa City
Attn: Tom Markus, City Manager
410 E. Washington Street
Iowa City, IA 52240
Re: Marc Moen Reference
Dear Tom,
1009 2nd Street
Coralville, IA 52241
319- 351 -8000
I am writing to support and recommend Marc as a project partner with the City of Iowa
City- Marc is a responsible, resourceful and energetic individual. I have known Marc
since he established personal and family fmancial relationships. with Hills Bank and Trust
Company over a decade ago- His experience and record of success, in the real estate and
development industry, are proven and he continues to look for opportunities that will
enhance our downtown area.
Marc has maintained his accounts in an excellent status and is deliberate in making
decisions that will be beneficial for the long term. We have worked with him and his
partners on a variety of projects and they have all become successful. If an issue
happened to arise that challenged his original plan, he has been able to creatively work
toward solutions that ultimately deliver success.
Based on my experience with him, I would encourage your support for future projects.
Sincerely,
Brad Langgut
Senior Vice. President
Hills • Iowa City • Coralville • North Liberty • Ketone • Cedar Rapids • Lisbon • Mount Vernon • Marion • Wellman
hillsbank.com 1 -800 -445 -5725
1-1.7
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Evergreen Capital
b
evergreen
1 capital
September 23, 2012
To whom it may concern:
It is with great pleasure that I submit this recommendation for Marc Moen and his dedicated team at
the maengroup.
You are undoubtedly aware of Marc's successes in the Iowa City area as a commercial developer. During
the more than six years that I've worked with Marc I have had the opportunity to work closely with him
on one such success — Plaza Towers.
was charged with assisting Marc in obtaining a long term financing solution for Plaza Towers. This
proved to be a difficult task due to the uniqueness of the property. with Marc's valuable insight and
assistance, we were able to correctly identify a loan structure that would meet his needs while allowing
his group the flexibility required to manage the project appropriately. Marrs knowledge of the industry
and his professionalism helped to make our working relationship a positive one.
Mares projects are always carefully done. He pays particular attention to detail and maintains
architectural appeal. Not only are his projects aesthetically pleasing they have a tremendous positive
impact on Iowa City's central business district.
Thank you for your time and should you have any further question please do not hesitate to contact me.
Regards,
7Y,a
l
President
Evergreen Capital Group, Inc.
I VERGRfiL'N (:;119'1': \l. GROUP, INC.
32H ('resccnr St. SC. ('War Rapids, lows 52403
r1=ron[yk vcr- csp.cnm
49 11
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Iowa City Coralville Area Convention & Visitors Bureau
September 18, 2012
Tom Markus, City Manager
City of Iowa City
410 E Washington St
Iowa City, IA 52240
Dear Mr. Markus,
The Iowa City /Coralvllle Area CVO is excited and very suppo rrive of redevelopment plans for the
former bus depot site at the comer or College Street and Gilbert Street NE.
We understand that a team assembled by longtime Iowa City resident and enthusiast, Marc
Moen, Is submitting a proposal for this site and want to express both our appreciation and
confidence in their abilities to deliver on a shared vision. Marc and his development team of
Rohrback and McComas- Lacina have proven time and time again that they have the expertise
and resources to deliver on a project the entire community can be proud. They have repeatedly
demonstrated their commitment to the Iowa City community by walking most any square block
in downtown Iowa City. Each and every project I have seen them take on over the past 12 years
has been completed with a new quality standard.
This redevelopment site will continue to enhance local quality of life while providing yet another
great mixed -use "toy' in the CVB's promotional toy box. Please call me directly at 319.337.6592
If I ran speak further to the Moen Groups qualifications or commitment to our community.
Warmre"
l
r
d
hamberger
resident
Cc: Marc Moen, Maen Group
Wendy Ford, City of Iowa City
908 FirSL Avenue /Hayden Fry Nay, reral, 111,. lova 52241 1 1FLEPMBNE ° 119 337 6592 - 800 283 6592 FACSIMILE - 319 331 9953
MMX.loMa Cltycoralvlllearea.or9
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The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - Cedar Rapids Bank & Trust
CEDAR
RAPIDS
BANK &r
TRUST
People you can bank on'"^
September 12, 2012
City of Iowa City
ATTN: Tom Markus, City Manager
410 E. Washington Street
Iowa City, IA 52240
RE: Marc Moen, Moen Group
Mr. Markus:
5001 st Ave NE, Ste 100 .
Cedar Rapids, IP.5.4u1
Phone, 310 6622728
5400 Council Street NE
Ced. r Rapkls, IA 51407
Phone: 110.743 3555
www.crbt.com
Cedar Rapids Bank and Trust financed the Plaza Towers building between September 2006 and
January 2010.
In 2006, the building was in the process of achieving stabilized occupancy. We found the
stabilization process to be in line with our expectations in terms of timing end terms of new
leases. Once the project was stabilized, the property had sufficient cash flows to pay operating
expenses and service our debt. Marc Moen was responsible for the stabilization process, and the
stabilized property operation was consistent with projection we reviewed prior to making the
loan.
All loan terms and conditions were handled as agreed during the time Cedar Rapids Bank &
Trust financed Plaza Towers. Cedar Rapids Bank & Trust is pleased to offer a positive reference
for Marc Moen and his group for future development projects. If you have questions, please call
me a t (319) 743 — 7159,
Member FDIC
IS
Sincerely,
7ahn Hall
Assistant Vice President
Commercial Banking
1Y:1
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
ir MERCY
September 17, 2012
Rohrbach Associates PC
325 E. Washington Street
Iowa City, IA 522
To Whom It May Concern:
Reference Letter - Mercy Hospital - Iowa City
Mercy Hosptlnl
wro.0 ul.:.nim
r rcxY, vxas3l.s
E.mejnamal M.di...
Ernaardinam Care.
3193MM.M
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We are happy to provide a reference for Rohrbach Associates, a group that we have had a
relationship with for over nineteen years. During our leadership over the last twelve
years, Steve Rohrbach and his staff members have been involved in programming,
planning, design and construction services related to Mercy Hospital, Iowa City capital
improvement and new building construction projects.
Steve Rohrbach and his team have provided architectural services on over $75 million
worth of projects to Mercy Iowa City. The Rohrbach Associates team has proven to be
dependable, straightforward and honest. They have served as a positive steward for
Mercy, communicating with the City of Iowa City and other surrounding community
planning and building committees. Overall, we are trusting in their recommendations and
follow - through on our capital projects,
One project in particular illustrates their attention to detail and concern for quality. The
capital project was to renovate the long- standing convent that represented Mercy's
identity for a long time and convert it to an in- patient Hospice Unit. This unit has
received very positive patient feedback and has been successful in providing the level of
patient care we strive for. We believe that their creativity, hard work, and sensitivity was
paramount in making this capital improvement a positive addition to our campus and
community.
We are pleased to recommend Rohrbach Associates to anyone looking for a very capable
architectural fim3 that has, in our opinion, exceeded our expectations.
Regards,
Glen Winekauf
V.P. orproressional mid Support Services
48
lr132MiIlcr
Director of Environmental Services
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The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
Reference Letter - City of Coralville
Jam_
NVOM
C®RALVILI
September 18, 2012
Tom Marcus, City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Dear Mr. Marcus,
I've had the pleasure of recently working with the architectural and design team at
Rohrbach Associates on a public /private partnership construction project. Coralville
Center for the Performing Arts and Plaza on 5jh was designed by the Rohrbach team and
we have been pleased with the results forthe City. The City owns the Coralville Center
for the Performing Arts and has a condominium Interest in the common spaces of the
facility.
We worked within a very tight space at the comer of 5's Street and 120 Avenue in
Coralville which was designated as the footprint for Coratvllle Center for the Performing
Arts and Plaza on 5 "'. The design team was creative and responsive in usingthe space to
its best maximum ability. The spare is the right mix of elegance and function for our
community needs. The team was responsive to staffs review and made suggestions
back on how ourspaces could function even better. We made use of every square inch
of the building thanks to the design team's efforts.
What I was most impressed with in working with Rohrbach Associates was their
willingness and responsiveness to provide additional specific plan breakouts and
conceptual images to allow me to develop plans for operations and management of the
space, areas that could be sponsored by donors, and/or to help tell the story of our new
theater as I traveled to many outreach events.
If you have any specific questions I can answer, I would be happy to do so. I can be
reached at 319.248.1750 or sproudCiecLmralville.la.us.
Sincerel
Sherri P
Director of Parks and Recreation
IS
Parks and Recreation
Department
15DB 8th Street
Coralville, IA 52241
PHONE 319.24 0.1750
FAX 319 - 248 -1899
www.coralville.org
rcu
The Chauncey, L.L.C.
Iowa City, Iowa
it
College St. I Gilbert St Northeast Corner Project
92. Identify any unique resources, capabilities or assets which
the proposer would bring to the Project.
Sustainable Design
Sustainable design practices will be implemented to the greatest
extent possible within the parameters of the project. This will be
achieved by the careful selection of materials, an effort to reduce
the carbon footprint, and maximizing the efficiency of mechanical
and lighting systems.
The design approach will be measured and evaluated by the use of
tools like the MidAmerican Energy Commercial New Construction
Program. Implementation of the LEED rating system may be
considered to further demonstrate the commitment to a sustainable
design and construction approach.
The Developer
We are committed to downtown Iowa City and have had a vested
interest in Iowa City for over 30 years. During that time, we have
preserved and restored several historic properties, some of which
were at risk of demolition. This commitment to save and restore
historic properties continues. Properties include Starbucks, Graze,
Blackstone, Savings & Loan, Brewery Square, and Vito's (under
renovation). All of these buildings enjoy 100% occupancy. Formerly
owned historic properties include 412 N. Dubuque Street, 318 E.
Jefferson Street, and Woodlawn Apartments.
We are also committed to new projects that enhance and diversify
downtown Iowa City. In 2000, we completed the Whiteway 2000
Building that houses Joseph's Steakhouse and 39 studio and
1 bedroom loft residential units. Whiteway 2000 has been 100%
occupied since its construction 12 years ago.
In 2003, we completed the Vogel House Building that housesAKAR
and 24 studio and 1 bedroom loft residential units. Vogel House is
now in its 10th yearof operation and has been 100% occupied since
opening.
In 2004, we were selected to develop the Citys last urban renewal
parcel directly south of the Iowa City Public Library. We developed
Plaza Towers, on that site, which opened in February 2006. The
building is occupied by nine successful commercial uses (grocery
store, restaurant, hotel and conference center, holistic healing
center, yoga studio, medical offices, architectural firm, investment
firm, and health club). In addition there are 50 residential units on
the upper levels. Plaza Towers operates at 100% occupancy.
71
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
911
Park @201, currently under construction, is a 14 story, mixed -use
buildingwith retail, office and residential uses. Although construction
will not be complete until the end of 2013, sales are very strong.
We have made a financial, personal and emotional commitment to
downtown Iowa City and strive to enhance the Citys diverse urban
core.
Proposers are committed to maximizing the synergy that exists
between commercial, entertainment, office and residential uses in
downtown Iowa City. Commercial and office growth in the City's core
must be balanced with continued housing opportunities downtown.
We always use a team approach in the development of projects.
At the outset of each project, a "development team" is assembled
consisting of design professionals, general contractorand developer.
Absolute commitments from the design professionals, contractor
and developer to the project, and to one another, are required and
regarded critical. A high level of trust is essential.
The development team works closely together to create the best
possible proposal for the site. Having a committed and trusted
team in place at the outset assures a high level of communication
and understanding, avoids mistakes and surprises, and results in
excellence in design, construction technique, budget and schedule.
It is also important thatthe members of the team have a commitment
to, and an understanding of, Iowa City's unique downtown.
We stand out as being uniquely connected to, and knowledgeable
about downtown Iowa City. Our expertise regarding the downtown
commercial real estate and permanent housing market is
unmatched.
Our marketing strategy has been, and continues to be:
1. DELIVER MORE THAN PROMISED: Excellence in location,
design, construction and management are paramount to our
success. We will not place a product on the market that we would
not personally be proud to live or work in. We are intimately
involved in site selection, design decisions, marketing and
management.
VA
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
2. RESPOND TO DEMAND: We have a track record of listening
to what Iowa City residents want and responding to those
demands. Market studies commissioned by the City of Iowa
City and University of Iowa have been strongly considered and
have significantly factored into this proposal. Proposers have
spent considerable time with the principals who prepared these
studies. We have also commissioned our own market analyses
of various commercial uses for downtown Iowa City. We have
been successful in attracting a diverse permanent population to
live downtown, in bringing an urban grocery store downtown, in
developing an independent luxury hotel and conference center
downtown, and in developing class A office space downtown.
3. EXCEL IN MANAGEMENT: For over 30 years we have
managed our properties with excellence, always demanding
more of ourselves than is asked of us. Our philosophy is to
treat tenants and condominium owners with the respect that we
would give our own family members. We will not commit to any
project that we cannot manage "hands on" and personally know
every tenant and every condominium owner as well as many of
their family members.
4. BE PASSIONATE: We are passionate about what we do.
This passion stems from a love for our community and is fueled
by the positive response to high quality creative development
projects.
These four (4) key elements have resulted in consistently
high demand for our properties.
49 73
The Chauncey, L.L.C. College St. I Gilbert St Northeast Corner Project
Iowa City, Iowa
13. Proposal submittal signature form (copy attached as Exhibit "A")
EXHIBIT "A"
Proposal submittal signature form
The undersigned attests to his /her authority to submit this proposal and to bind the firm
herein named to perform if the firm is selected by the City of Iowa City. The undersigned
further certifies that he /she has read the Request for Proposal, terms and conditions,
and any other documentation relating to this request; has complied in all respects with
all conditions hereof, and this proposal is submitted with full knowledge and
understanding of the requirements and time constraints noted herein.
The undersigned hereby further acknowledges that it accepts the terms of the Request
for Proposals in its entirety and by the submission of its proposal hereby waives any
claims or claims to irregularities that arise out of such RFP, the process employed by
the City to solicit and develop proposals, the RFP evaluation process described in the
RFP, and agrees to release and hold harmless the City, its employees, agents, and
consultants from any claim, loss, or damage arising therefrom.
The undersigned hereby authorizes any person, firm or corporation to furnish any cred it
history and financial condition or other information required by the City to verify
information related to the Firm's submission to the City.
I hereby certify, on behalf of the undersigned firm, that the above information is true and
correct to the best of my knowledge and that the City may rely on the information
provided.
Firm name: The Chauncey, L.L.C.
Home office address: 221 E. College Street, Suite 300
City, state, zip: Iowa City, Iowa 52240
Signature:
Date: September 28, 2012
74
m._4, CITY OF IOWA CITY
MEMORANDUM
Date: November 14, 2012
To: Interested parties U
From: John Yapp, Transportation Planner
J
Re: Chauncey Gardens proposal for redevelopment of the College St / Gilbert St comer
The Chauncey Gardens proposal has been recommended as a fina#st proposal for presentation
to the City Council at its November 26 work session. In their initial proposal, the Chauncey
Gardens team proposed building on the Chauncey Swan Park site, north of the
redevelopment site at the north east corner of College St / Gilbert St.
The development proposal review committee recommended the Chauncey Gardena proposal
be forwarded as a finalist, but for construction on the ident flled redevelopment site, not the
Chauncey Swan Park site. The review committee included representatives from the City
Council, City Manager's Offke, Department of Planning and Community Development,
Department of Public Works and Engineering and City Attorney's Office.
The proposal on the City's webske as of November 15 is the Initial Chauncey Gardens proposal.
It will be amended to reflect construction on the identified redevelopment site at the north east
comer of College St / Gilbert St.
1116
CITY OF IOWA CITY
MEMORANDUM
Date: November 26, 2012
To: Mayor and City Council
From: Marian K. Karr, City Clerk
Re: `Amended' proposal for Chauncey Gardens, submitted on Nov 21, 2012
This proposal replaces the Chauncey Gardens proposal distributed in your November 20
information packet.
000040
CHAUNCEY GARDENS, LLC
College St. /Gilbert St. Northeast Corner
City of Iowa City
November 13, 2012
Revised:
November 21, 2012
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0000
CHAUNCEY GARDENS, LLC
Our development proposal is
not only a multi -use building
for downtown, but a vision to
integrate community and place
into the type of destination that
only Iowa City can provide.
CHAUNCEY GARDENS, LLC- 3
OMMOV OO
CHAUNCEY GARDENS, LLC
The reinvented park terrace and amphitheater link multiple building levels and create a variety of public spaces. The
park becomes an accessible stage for a variety of community events and activities. With community gardens on level
5, shared residential gardens on levels 6 -14, and a public wine garden on floor 17 the building becomes a natural
extension of the verdant green space.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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CHAUNCEY GARDENS, LLC
The project creates a prominent, multifunctional park on the corner of Washington and Gilbert streets, which becomes
a natural extension of the pedestrian mall located to the west. Pedestrians gain access to many different accessible
spaces throughout the building to enjoy an array of community venues.
CHAUNCEY GARDENS, LLC- 5
OMMOV O
CHAUNCEY GARDENS, LLC
A
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View from the City Hall. This enhanced Chauncey Park provides green space on many levels to accommodate a
variety of potential civic opportunities such as a sculpture park, an outdoor amphitheater, and a community bike rental
program.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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CHAUNCEY GARDENS, LLC
Located at the south end of the site, the building provides many opportunities for an array of commercial and office
settings, including a new home for New Pioneer Food Coop.
CHAUNCEY GARDENS, LLC- 7
OMMOV OO
CHAUNCEY GARDENS, LLC
A terraced amphitheater gently pulls park green space up and into the building. Public and private garden terraces
within the building provide views over Chauncey Swan Park.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
0000
CHAUNCEY GARDENS, LLC
The building reinvigorates Gilbert street by providing prominent storefrontage and multiple retail entry points at ground
level. A thoughtfully massed "street wall' presents a comfortable urban experience for pedestrians passing by.
CHAUNCEY GARDENS, LLC- 9
OMMOV OO
CHAUNCEY GARDENS, LLC
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Check out the project on YouTube:
hftp://wv,rw.youtube.com/watch?v=hCuTMKQJYw4&feature=youtu.be
Search for: Chauncey Gardens
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Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Table of Contents
1. Cover Letter
2. Contact Information
3. Legal Name of Development Entity
4. Contracting Entity
5. Organizational Chart & Team Members
6. Previous Experience
7. Financial Capacity
8. Visual Description
9. Construction & Financing
10. Exhibit B
11. References
12. Unique Resources & Capabilities
13. Exhibit
13
15
15
15
16
23
29
39
67
89
91
97
99
F-Lk-E" S- FIEkS. LL:. - 11
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
CHAUNCEY GARDENS, LLC
September 28, 2012
John Yapp
Jeff Davidson
City Clerk, City Hall
410 E. Washington St.
Iowa City, IA 52240
RE: College St. /Gilbert St. Northeast Corner site
Dear John, Jeff, and the Selection Committee,
On behalf of Chauncey Gardens, LLC I am pleased to submit the enclosed proposal for the College St. /
Gilbert St. Northeast Corner site.
Chauncey Gardens, LLC appreciates the opportunity to be a part of this exciting project, and if selected
as the Developer, looks forward to working with the City of Iowa City on our innovative solution that
envisions an urban neighborhood that will become a destination point for community exchange.
We are all personally vested and committed to the successful fruition of this exciting project.
Enclosed are the original and 10 copies of the proposal including all submissions as outlined in the
request for proposal. If you have any questions regarding the proposal you can contact me at:
Chauncey Gardens, LLC
P.O. Box 3474
Iowa City, IA 52244
allenhomesinc @gmail.com
319.530.8238
Sincerely,
l(/!v—
Jessee Allen
President, Chauncey Gardens, LLC
PO Box 3473 • Iowa City, IA 52240 • 319.530.8238
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
2. Contact Information
3. Legal Name of Development Entity
4. Contracting Entity
a x4000
CHAUNCEY GARDENS, LLC
Chauncey Gardens, LLC
PO Box 3474
Iowa City, Iowa 52244
319.530.8238
Contact:
Jesse Allen
allenhomesinc@gmaii.com
Principals:
Jesse Allen, President
Tom Kaut, Vice President
John Rummelhart, Managing Member
George Wagner, Managing Member
Legal Entity:
Chauncey Gardens, LLC
This entity does not currently exist and will be created at the
time the project is awarded.
CHAUNCEY GARDENS, LLC- 15
5. Organizational Chart
I.]
IU:61 cc] QK9L`611:11jy Ile] 0W -11J1
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
6Y11 1] :irl alt'd
NEUMANN MONSON
A R C H I T E C T S
Neumann Monson Architects
221 East College Street, Suite 303
Iowa City, Iowa 52240
319.338.7878
Dwight Dobberstein
ddobberstein@neumannmonson.com
Re!EmimnmmmW Sprcidi W
MMS Consultants
1917 South Gilbert Street
Iowa City, Iowa 52240
319.351.8282
Duane Musser
dmusser@mmsconsultants.net
6ergan paulsen
Bergan Paulsen
2530 Corridor Way, Suite 301
Coralville, Iowa 52241
Dennis Craven
dcraven@berganpaulsen.com
5. Team Members
1"knutson
consiroc[ian
Knutson Construction
2351 Scott Boulevard SE
Iowa City, Iowa 52240
319.351.2040
Brad Johnson
bjohnson@knutsonconstruction.com
PC
CeaAR Rmi' -lowA Cm
Bradley & Riley PC
1 South Gilbert Street
Iowa City, Iowa 52240
319.466.1151
Michael Pugh
mpugh@bradleyriley.com
Pro m Management
Heritage Property Management
220 East Market Street
Iowa City, Iowa 52245
319.351.8404
Tony Vespa
hpmanagement@qwestoffice.net
CHAUNCEY GARDENS, LLC- 17
Overview
Jesse Allen
Chauncey Gardens, LLC
President
With over 12 years of
experience in developing
and constructing
residential and mixed -
use facilities, Jesse will
apply his knowledge to
the budget and schedule
control of this project. As
president of Chauncey
Gardens LLC he will
serve as the main point of
contact for the project. He
is a fourth generation Iowa
City -an and is familiar
with many community
members. He views this
project as an opportunity
to weave together public
and private spaces and to
celebrate the uniqueness
of downtown Iowa City
and is dedicated to the
project's success.
Tom Kaut
Chauncey Gardens, LLC
Vice President
Tom has been providing
professional real estate
services in Iowa City
for nearly 20 years.
He is well -known with
both commercial and
residential markets and
is consistently in the Top
10 for real estate sales
volume in Iowa City. He
specializes in residential
investment property,
new construction sales
and the development
of multi - family and
residential real estate. In
addition to investing in the
project, Tom will lead the
marketing efforts for the
sale of both commercial
and residential units.
IfydSI69fll.iu
John R. Rummelhart
Chauncey Gardens, LLC
Member Manager
In addition to being an
investor in the project,
John brings a strong
desire for and knowledge
of sustainable initiatives.
He will work closely with
Matt Krieger (Neumann
Monson) and client entities
to create a sustainable
plan for the project that
will be on track to achieve
LEED certification.
John's experience in
past commercial and
residential developments
will be valuable to the
team. John is an Iowa
City native, having lived
and worked in Iowa City all
of his life.
Private Developer for College SL/Gilbert St. Northeast Corner> City of Iowa City> November 21, 2012
George C. Wagner
Chauncey Gardens, LLC
Member Manager
George brings a wealth
of research, planning and
engineering-management
expertise to the project.
An Iowa City native, he's
managed and delivered
on multi - million dollar
municipal projects for
international engineering
software companies.
His graduate studies
in geography - which
emphasized urban
economic development
and GIS applications -
coupled with extensive
experience acquiring and
managing investment
properties, make him
well - positioned to deliver
on this multi - dimensional
endeavor.
Overview
Dwight Dobberstein Khalid Khan Parker Dobberstein Matt Krieger
Neumann Monson Architects
Principal -In- Charge /
Project Manager
As Project Manager
Dwight will ultimately
be responsible for the
project's success. All
activities and team
members, including
consultants, are directed
through him. Asa
Principal with Neumann
Monson he has the ability
to adjust the project team
as needed to meet just
schedule demands. He
has worked extensively
on mixed -use facilities
including Hieronymus
Square in downtown Iowa
City. Dwight is a LEED
Accredited Professional
and will be an important
resource in this regard.
Neumann Monson Architects
Project Designer
Khalid has acted as
Project Designer on many
projects, including work
that has been honored
with state, regional, and
national design awards.
As Project Designer,
Khalid will be responsible
for the building design,
conformance to program,
and adherence to cost
parameters. He will work
closely with all team
members, including
consultants and Knutson.
Khalid brings over 21
years of experience on a
variety of projects.
Neumann Monson Architects
Project Architect
Parker brings significant
experience with a variety
project types including
recent mixed -use
experience with Jesse
Allen and Tom Kaut.
He will be responsible
for coordinating all
disciplines and consultants
associated with the
project. Assuring that the
project job performance,
objectives, budgets,
and schedules are
on target are primary
responsibilities. Parker is
also a LEED Accredited
Professional and will
contribute to these
decisions.
Neumann Monson Architects
Sustainability Leader
Matt serves as the firm's
Green Team" leader
and will act as the
Sustainability Leader for
this project. Matt is an
important resource for all
of Neumann Monson's
sustainable initiatives and
has a tremendous amount
of experience in this
regard. Matt stays current
on the latest available
products, techniques,
and funding sources
where sustainability is
concerned. Matt is a
registered architect with a
wide variety of experience,
including 7 LEED projects
to his credit. He will
work closely with John
Rummelhart to test and
implement sustainable
initiatives for the project.
CHAUNCEY GARDENS, LLC- 19
Overview
David Tillotson
Neumann Monson Architects
Quality Control
David serves an important
role of assuring the
quality of the project by
coordinating drawings
and specifications. He
brings many years of
valuable experience to
the team and is also
responsible for producing
solid specifications.
David's role will be to
partner with Knutson and
other members of the
design team throughout
design development and
production of construction
documents.
Brad Johnson
Knutson Construction
Project Executive
As Project Executive,
Brad's responsibility is
to ensure that Knutson's
construction personnel
have the necessary
knowledge, experience,
and resources available
to guarantee they
can complete their
responsibilities in a
successful manner. Brad
will maintain close and
continuous contact with
Knutson's management
team throughout the
course of the project.
Brad's experience with
leading complex projects
on constrained urban sites
and working with every
member of the team is
invaluable.
Steve Wilson
Knutson Construction
Project Manager
As Project Manager,
Steve is responsible for
the overall coordination
of the project and
construction process.
These responsibilities
include: communication
with the project team;
scheduling and cost
control; subcontract
negotiations, award, and
management; material
buyout and procurement,
and project administration.
As an Iowa City native,
he enjoys strong local
relationships with area
subcontractors and
suppliers. Steve's project
background includes
both new construction
and renovation in the
institutional, residential,
and retail markets.
Private Developer for College SL/Gilbert St. Northeast Corner> City of Iowa City> November 21, 2012
Nic Plecker
Knutson Construction
Estimator
Nic's responsibilities
include preparation of
budget estimates, value
engineering, systems cost
analysis, scheduling of
design and construction
activities, subcontract
negotiations and award,
project administration,
and cost control. He
has prepared bids and
conceptual estimates
for a variety of sizes and
types of construction
projects. His experience
and knowledge of
construction costs allows
Knutson to competitively
price estimates. Nic
actively researches
new technologies and
communicates with
subcontractors to
remain on top of latest
construction practices
industry-wide.
Duane Musser
MMS Consultants
Landscape Architect
Duane has 20 years
of experience as a
Landscape Designer
and Land Planner. He
is responsible for the
layout, design and
development planning of
commercial and residential
developments and multi-
family subdivisions. For
this project Duane and
his civil engineering team
will be responsible for
demolition plan, site plan,
site grading plan, utility
plan, landscape plan as
well as assisting in any
electrical plan and erosion
control plans.
Michael Pugh
Bradley & Riley PC
Attorney
Michael is a shareholder
with Bradley & Riley PC,
where he practices in real
estate, business, zoning
and land use. He received
his B.A. degree from the
University of Iowa and
J.D. degree from Indiana
University. Michaelis AV
Preeminent Peer Review
rated by Martindale -
Hubbell and is listed in
The Best Lawyers in
America for Real Estate
Law and Land Use and
Zoning Law. He is also
accredited by the U.S.
Green Building Council
as a LEED (Leadership in
Energy and Environmental
Design) Green Associate.
Dennis Craven
Bergan Paulsen
Tax Director
Dennis is tax director and
has been in the accounting
industry since 1979. He
joined Bergan Paulsen in
2010, focusing primarily on
tax preparation /planning
and business consulting.
He specializes in the
real estate, construction
and land development
industries. Dennis is a
native of Stanhope, Iowa.
He received his B.S. in
Business Administration
from Drake University.
Overview
Tony Vespa
Heritage Property Management
Property Manager
Founded in 1985, Heritage
Property Management
opened has been an
active force in the Corridor
area for over 25 years.
We manage approximately
900 rental units, ten condo
associations, and a small
amount of commercial
property. Heritage
handles all aspects
of the rental process
including: pre- screening
tenants, collecting all
income and depositing
into the owners' accounts,
handling all maintenance
calls, supervising
the preparation and
presentation of available
units, and sending monthly
reports to our owners.
CHAUNCEY GARDENS, LLC- 21
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
6. Previous Experience
CHAUNCEY GARDENS, LLC- 23
Featured Projects
Washington Plaza, Iowa City, Iowa
Developer: Jesse Allen + Tom Kaut
A $7.5 million project consisting of 30 condominium units and 3,865 square feet of
commercial space. Because the project is located within the flood plain, the design
incorporates a flood proof first floor. Two levels of parking are provided one of which is
below grade. The project is designed to give a pedestrian - friendly experience. Natural
materials and sunshades are used on the experience. The project was developed in
coordination with Neumann Monson Architects and will be completed in Summer 2013
Northside Commons, Iowa City, Iowa
Developer: Jesse Allen +Tom Kaut
This $3 million mixed -use project is located in Iowa City's historic North Side
neighborhood. The project provides 10 condominiums and 2,100 square feet of
commercial space. The design process has involved hosting multiple "good neighbor"
meetings to allow citizens voice feedback or concerns. This has given the project a very
community- minded spirit. The project provides a sustainable housing solution, which
targets long -term tenants /home buyers to help stabilize the North Side marketplace.
It is designed to blend with adjacent historic mixed -use structures. Window patterns,
scale, materials, help to achieve this. The project is in the schematic design phase and
is being designed in coordination with Neumann Monson Architects.
Burlington Commons, Iowa City, Iowa
Developer: Jesse Allen
Formerly Hansen Auto Body and an eyesore along Burlington Street, this project is
now home to 10 condominiums. The $3.2 million project incorporates parking below
grade and on ground level; with ground level parking screened from view. The project
incorporates higher level finishes and details to attract high quality tenants. The project
was completed in fall of 2012.
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Featured Projects
Rochester Ridge, Iowa City, Iowa
Developer: Jesse Allen
This highly marketable single - family subdivision is valued at $4.4 million. The
development is located near Lemme Elementary and Regina High School. The
area's gentle rolling hills surrounded by mature trees were carefully maintained during
construction. Work also included wetland restoration and provides centrally located
park land. The project's popularity is evident in that 68% of the first two phases have
sold out in the first year.
KW Realty Group / KW Custom Homes, Inc.
Developer: Tom Kaut
This investment company was created to develop and build single family residential
home lots. This entity is well known for purchasing and building Country Club Estates
Parts 2 & 3, a $3.6 million Iowa City residential housing development of over 53 lots.
KW Custom Homes, Inc. has built over 60 homes in the Iowa City area since 2004.
Westgate Villas
Developer: Tom Kaut
This $4.5 million, 37 -unit luxury condo development located on the west side of Iowa
City. Tom Kaut was able to sell out this development within one year. The project was
done in coordination with Steve Kohli.
TC Investments
Developer: Tom Kaut
Tom Kaut is the President of TC Investments, LC. Based on a strong work ethic and the
purpose of building a portfolio of income producing properties. Created for acquiring
investment property for long term holding periods and investing in residential & multi-
family developments. TC Investments has a portfolio of 52 rental units.
CHAUNCEY GARDENS, LLC- 25
Featured Projects
1720 Waterfront Drive, Hy -Vee Food Store Redevelopment, Iowa City
Developer: Blackhawk Partners, John Rummelhart Principal, Member Manager
A large, 4 -acre redevelopment and rezoning project. The scope encompasses
successful land acquisition, zoning changes and large scale negotiations with clients
and the City.
1419 -1423 Waterfront Drive, Iowa City (formerly Contractors Tool & Supply)
Developer: Blackhawk Partners, John Rummelhart Principal, Member Manager
current site of Bochner Chocolates. John oversaw the acquisition of the site, and the
planning and construction of this 39,000 sf building. Energy efficient features include
specialty block construction and in -floor heating. The natural gas usage for the entire
building for first complete year of occupation was under $1,200. (1997 -1998)
425 Highway 6 East, Office Depot +Advance Auto, Iowa City
Developer: Blackhawk Partners, John Rummelhart Principal, Member Manager
Redevelopment of Office Depot and Advance Auto Parts, who were current tenants.
Work included planning, build -out and construction supervision with multiple - national
tenants.
John Rummelhart Properties
Developer: John Rummelhart
A multi - family real estate holding company. Properties include a mix of single family,
multi - family, and historic multi - family houses and apartments.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Featured Projects
Wagner Management, LLC
Developer: George Wagner, Principal, Member Manager
A property management company formed and operated to acquire, improve and provide
quality, desirable housing units for the Iowa City CBD rental unit market. Portfolio
maintains over 25 -year history of long -term holding and successful operations. Mix of
single - family homes and duplex units.
Goosetown Rentals, LLC
Developer: George Wagner, Principal, Member Manager
A property management company formed and operated to acquire, improve and provide
quality, desirable housing for the Iowa City NODO (North Dodge) rental unit market.
Portfolio goal is long -term holding and progressive reputation for fair, quality operations.
Mix of single - family homes and duplex units.
Wagner FLIP
Developer: George Wagner, Principal
A farming operations partnership enterprise formed to professionally manage and
acquire agricultural land in Iowa. The partnership pursues a personal and professional
hands -on approach, with proven results of meeting goals and objectives in terms of land
stewardship, profitable production, accurate accounting and quality communications
with tenant farmers.
CHAUNCEY GARDENS, LLC- 27
Featured Projects
Plaza Towers, Iowa City, Iowa
Developer: The Moen Group
Neumann Monson Architects designed this 210,000 sf mixed -use facility to take
advantage of the city's maximum allowable height limit to provide dramatic views from
the living quarters. The project include with generous balconies and roof terraces
for outdoor living. Commercial space includes a grocery/restaurant, a hotel and
conference center, and office space. Residential options range from rentable loft
spaces, to condominiums, to multi -level penthouses. Private parking is available below
the building and a surface lot to the south provides parking for grocery customers. A
climate - controlled arcade space is located directly off of the grocery and lobby and
engages with the adjacent pedestrian mall. The project was built for $24,000,000.
Contact: Marc Moen, 319.351.3900
Whiteway 2000 Building, Iowa City, Iowa
Developer: The Moen Group
With a limited budget and construction period, Neumann Monson was commissioned to
create an alternative to the typical student apartment building in Iowa City. The seven -
story structure, consisting of 39 single occupant apartment units with a restaurant at
street level, replaces a historic three -story building that burned down in the spring of
1999. The $2,859,064 bulding was completed in 2000.
Contact: Marc Moen, 319.351.3900
Riverbend, Coralville, Iowa
Developer: Hodge Construction
Neumann Monson Architects designed this project located in Coralville's Iowa River
Landing District. The overall River Bend portion will eventually be comprised of three
separate and similar stand -alone sub - projects. The project is a mixed -use development
consisting of partial residential, commercial and below grade parking for residents. The
Iowa River is to the east of the development and offers extraordinary views of the River
and Peninsula. There are a total of 44 residential units ranging from 500 sf studios
to 1500 sf three - bedroom units. Each unit is unique. Commercial spaces below are
intended for office, retail and restaurant use. The 78,000 sf structure was completed in
2007 for $12,000,000.
Contact: Kevin Digmann, 319.631.0548
Private Developer for College St. /Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
7. Financial Capacity
CHAUNCEY GARDENS, LLC- 29
Pro Forma
We anticipate the following sources and uses of funds in connection with this project:
Uses of Funds /Cost of Project
Purchase of land from the City $ 1,000,000
Design, engineering and other up -front costs 3,000,000
Direct construction costs 38,000,000
Other indirect costs of the project 5,000,000
Total $47,000,000
Anticipated Financing Sources
Conventional lender financing $29,250,000
City Gap financing 12,000,000
Owner equity 5,750,000
Total anticipated sources $ 47,000,000
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Hills Bank
and Trust Company
September 19, 2012
Thomas Kant & Jesse Allen
3551 Donegal Court
Iowa City, IA 52246
Dear Tom and Jesse:
1009 2nd Street
Coralville, IA 52241
319 -351 -8000
This letter shall serve as a letter of credit reference to confirm years of satisfactory
performance that Hills Bank and Trust Company has experienced with each of you in
providing both construction and development financing.
We understand that you are looking at a project within the city limits of Iowa City and
that a letter of credit reference has been requested. Should this project proceed, we
would be happy to review the project and related loan requests. While we are not yet in a
position to grant a binding loan commitment, we appreciate your giving us this
opportunity.
Please consider this as our non - binding Letter of Interest to work with you on this project.
Thank you for your ongoing relationship and the opportunity to providing you additional
services in the future.
Sincerely,
Tim D. Finer
Senior Vice President
Hills • Iowa City • Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion • Wellman
hillsbank.com 1- 800 - 445 -5725
Hills Bank
and Trust Company
Septetnber 28, 2412
Jesse Allen
Allen Homes, Inc.
3744 Lower West Branch Rd
Iowa City, IA 52244 -3474
Dear Jesse:
1401 S. Gilbert Street
Iowa City, Iowa 52240
319-338 -1277
This letter shall serve as a letter of credit reference to confirm years of satisfactory
performance that Hills Bank and Trust Company has experienced with you in providing
both construction and development financing.
We understand that you are looking at a project within the city limits of Iowa City and
that a letter of credit reference has been requested. Should this project proceed, we
would be happy to review the project and related loan requests. While we are not yet in a
position to grant a binding loan commitment, we appreciate your giving us this
opportunity.
Please consider this as our non- binding Letter of interest to work with you on this project.
Thank you for your ongoing relationship and the opportunity to providing you additional
service in the future.
Sincerely, }
rv hY1L 7[ tiouc^t
eremy M. Provin
Commercial Banking Officer
IMP/ay
Hills • Iowa COY • Coralvi Ile • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion
www.hillsbank.com 14500-445 -5725
e
Bank
September 18, 2012
Tom Kaut
c/o Lepic- Kroeger, Realtors
2346 Mormon Trek Blvd
Iowa City, IA 52246
Re: Letter of Interest and Recommendation for City of Iowa City project RPP
Dear Tom:
I'm glad to provide this letter of interest to work with you and potential partner(s) on the
City of Iowa City request for formal proposal at the northeast corner of College and
Gilbert Streets. I believe you will be able to offer a very nice final project that will add to
the attractiveness of the greater downtown Iowa City.
Mule this is not meant to serve as a financing commitment to lend on the proposed
project, we'd gladly work with you and potential pariner(s) on it.
MidWestOne Bank has enjoyed a great working relationship with you on personal
banking as well as construction and development projects since 2008. Just as one of our
bank's operating principles notes, you have always conducted yourself with the utmost
integrity. You and your companies are valued, creditworthy, and respected clients of this
bank.
Please let me know if you or anyone else related to this request has any other questions-
I'd be glad to help you with them.
Sineere y, r ,,
Jerry Waddilove
Vice President. Regional Credit Officer
MidWestOne Bank
UNIVERSITY OF IOWA COMMUNITY CREDIT UNION
825 MORMON TREK BLVD, IOWA CITY, IOWA 52246 • TELEPHONE: (319) 341 -2144
September 27, 2012
Thomas Kaut & Jesse Allen
3551 Donegal Court
Iowa City, IA 52246
Dear Tom and Jesse:
This will confirm the University of Iowa Community Credit Union (UICCU) has been in discussions regarding
financing for your proposal located at the corner of Gilbert Street and College Street. Subject to underwriting and
credit approval, the UICCU would be interested in working with you further on this project should the project
proceed. Thank you for the opportunity and we look forward to working with you in the near future.
If you have any further questions, feel free to contact me at 319- 341 -3074 or swilson @uiccu.org.
Sincerely, /
tt Wilson
S . Vice President
ommercial Services
IOWA AVENUE MORMON TREK TOWNCREST CORALVILLF GRINNELL
319 - 339 - 1000 319 -339 -1002 319 -339 -1030 319- 339 -1020 641 - 236 -8822
Great Western Bank -
Making Life Great' Aiurnhe1o1
September 25, 2012
City of Iowa City
Attn: Jahn Yapp
Iowa City, IA 52240
RE: Chauncey Gardens
Dear Mr. Yapp,
Great Western Bank has been in conversation with John Rummelhart, Jr in regards to the re-
development of the corner of College and Gilbert Street. John intends to partner with Jesse Allen, Tom
Kaut and George Wagner. Based on our original conversation Great Western Bank would have an
interest in working with this group to finance a new building. They bring together a good group of skills
that would complete the project successfuily.
We understand that the Iowa City is in the early planning stages forthis corner of Iowa City. We hope to
be a part of the solution for any anticipated projects.
Sincere] ,
f
r'
Melissa D. Schooley
Sr. Vice President, Commercial Banking
GreatWesternBank.com
Farm Credit Services (if America
AGRICULTURE WORKS HERE.
SEPTEMBER 26, 2012
TO: WHOM IT MAY CONCERN
RE: JOHN R. RUMMELHART, JR,
1112 E. COURT ST.
IOWA CITY, IOWA 52240
JOHN HAS BEEN DOING BUSINESS WITH FARM CREDIT SERVICES OF AMERICA FOR OVER 12 YEARS.
DURING THIS TIME HIS REPAYMENT HISTORY HAS BEEN "EXCELLENT
SINCERELY,
FARM CREDIT SERVICES OF AMERICA
DAN TAMER
FINANCIAL OFFICER
TM
CORRIDOR
ANK
A Division of Central State ,bank
Sept 27, 2012
Tom Kaut
c/o Lepic- Kraeger Realtors
2346 Mormon Trek Blvd
Iowa City, IA 52246
RE: Letter of Interest for City of Iowa City Project
Dear Tom:
This letter serves as an interest to work with you and your business partner(s) on the City of Iowa city
request for proposal atthe NE corner of College and Gilbert Streets.
This is not a formal commitment letter as we would need to underwrite and perform due diligence on
the proposed project. With that being said, we are familiar with your recent construction projects and
would be supportive of meeting with you and reviewing the projections and financials on the subject
project.
I can be reached at 319- 525 -2050 to discuss further.
SSii(injcerelly,,
el---j
Steve Crane
Corridor State Bank - Market President
www- conidorstatebank.eom
FDIC 2530 Corridor Way • Coralvrlle, Iowa 52241 0CPhone: (319) 6252050 • TUf Fme: (866) 625 -2050 • Fax: (319) 625 -2058 mmR
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
8. Visual Description
CHAUNCEY GARDENS, LLC- 39
Project Concept
Iowa City has a strong tradition of creating special places for the entire community to
live, work, and play. We believe in the power of public spaces to enhance the fabric of
the city by creating a sense of ownership and emotional investment in our town. Our
parks, gardens, and street level amenities are among those things that make Iowa City
such a diverse and pedestrian- oriented city. Our development goal is to focus on these
community aspects to create a destination for the whole community to experience.
With close proximity to our very active downtown, and recognizing the project site's
immediate context with City Hall and the community recreation center, we have the
unique opportunity to create new communal intersections. By weaving this street
level activity in and around the site, and up through the building, we can create a truly
community -based development. Amenities such as park space, community gardens,
amphitheaters and market space will serve as a backdrop throughout the landscape
and building to activate the commercial and residential tenant environments. This
project recognizes its role in preserving a place for the community, and incorporates
design strategies that are communal and community- oriented. For those who inhabit
the building, this is both their home and their neighborhood.
Community thrives on connectivity, inclusiveness, and diversity. Chauncey Gardens
will interweave these tenants into all aspects of its design. Our development proposal
is not only a multi -use building for downtown, but a vision to integrate community and
place into the type of destination that only Iowa City can provide.
This project will provide a variety of housing options that meet the needs of varying
income group in which lower and high priced homes blend seamlessly. This helps
create a vibrant, authentic, and sustainable community, which is consistent with the
City's Economic Development Policies and the Downtown Strategic Plan. Residential
Development is the catalyst for retail expansion in downtown Iowa City. Housing is
an important development mix that will contribute to demand for local neighborhood
commercial services.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Conceptual Drawings
A continuation of the pedestrian mall
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With the park at one end of the pedestrian corridor, the site becomes a "collector" point for people moving
to and from the Pedestrian Mall.
CHAUNCEY GARDENS, LLC- 41
Conceptual Drawings
Project site serves as an activator for public amenities
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Recreation Center
The proposed site at College and Gilbert is nestled between three public buildings for civic and community
use. This proximity presents numerous opportunities to link this mixed -use development to city and
community functions.
Private Developer for College SL/Gilbert St. Northeast Corner> City of Iowa City> November 21, 2012
Conceptual Drawings
Community circulation and park space woven into building
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Enhanced 14
Chauncey Swan Park —
Community Gardens
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Sculpting the park based on pedestrian flow creates a more accessible and active public space. Providing
community gardens and park terraces within the building encourages better connections between public and
private functions. A public rooftop garden and event space provides a truly unique experience in Iowa City
for all to enjoy.
CHAUNCEY GARDENS, LLC- 43
Conceptual Drawings
Pedestrian friendly building massing
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Office / Commercial
The residential tower maintains appropriate street setbacks to provide a comfortable "street wall' condition
for pedestrians and park users at ground level.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Added pubilc green space
Chouncoy Swan Park
19,900 SF
Public Green Space (Existing)
19,000 Total SF
VS.
Conceptual Drawings
Rooftop Terrace
3000 SF
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800 SF
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Chauncey Sward Park
24,000 SF
Community Gardens
5000 SF
Park Terraces
4500 SF
Public Green Space (Now)
37,300 Total SF
CHAUNCEY GARDENS, LLC- 45
Conceptual Drawings
Transportation connectivity
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The use of the site encourages sustainable transportation connectivity. Paths through the park give parking
ramp users easy access to a Gilbert Street bus stop. Bike parking located in and around the site will enhance
our already bike friendly city.
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Building and park integration
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Conceptual Drawings
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This solution provides anew and enlarged community green space with many civic amenities. The reinvented
park's gently folded planes interlink multiple levels and create a variety of spaces. With community gardens
on level 5, shared residential gardens on floors 6 -14, and a public wine garden on floor 17 the building
becomes a natural extension of the verdant green space.
CHAUNCEY GARDENS, LLC- 47
Site Plan
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Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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Retail, Park Plan
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Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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Project Area Summary
LEVEL 0 LEVELS 6 - 10
CIRCULATION 895 CIRCULATION 953
PARKING (62 SPACES) 17,135 RESIDENTIAL 5,441
STORAGE 1,375 BALCONY/TERRACE 1,064
TOTAL 19,405
TOTAL/ FLOOR 7,458
TOTAL (5 FLOORS) 37,290
LEVEL1
CIRCULATION 1,088
LEVELS 11 - 14
GROCERY 21,000
CIRCULATION 953
TOTAL 22,088
RESIDENTIAL 5,236
BALCONY/TERRACE 1,269
LEVEL 2
CIRCULATION 448 TOTAL/ FLOOR 7,458
RETAIL 7,580 TOTAL (4 FLOORS) 29,832
TOTAL 8,028
LEVELS 15 -16
CIRCULATION 953
LEVELS 3 - 4 RESIDENTIAL 5,126
CIRCULATION 393 BALCONY/TERRACE 1,376
OFFICE / COMMERCIAL 14,035
TOTAL/ FLOOR 7,458
TOTAL/ FLOOR 14,428 TOTAL (2 FLOORS) 14,916
TOTAL (2 FLOORS) 28,856
LEVELS 17 -18
LEVEL 5 CIRCULATION 471
CIRCULATION 390 RESIDENTIAL 1,581
RESIDENT AMENITIES 5,348 BALCONY/TERRACE 3,309
BALCONY/TERRACE 8,690 WINE GARDEN/ RETAIL 2,097
TOTAL 14,428 TOTAL 7,458
GRAND TOTAL 182,301
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Building Section - East /West
CHAUNCEY GARDENS, LLC- 61
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
CHAUNCEY GARDENS, LLC- 63
Pedestrian Level Facade
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View from the corner of Washington and Gilbert
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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Pedestrian Level Facade
View from corner of College and Gilbert
CHAUNCEY GARDENS, LLC- 65
Facade
View from Southwest
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
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9. Construction & Financing
CHAUNCEY GARDENS, LLC- 67
Organization & Management Approach
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Once the City of Iowa City has concluded the developer selection process and
a Development Agreement has been executed, we will meet with City of Iowa City,
New Pioneer Coop and associated community groups to receive feedback on the
project design and listen to concerns regarding any potential disruption during building
construction. The feedback provided during design development will be considered by
the Design Team while completing the overall building design and development of the
documents. In developing our site logistics, our construction team will meet with local
business owners, the City of Iowa City and other neighborhood groups to develop a
plan to minimize the impact of construction to them and the neighborhood. Particular
consideration will be focused on maintaining the availability of Washington Street for the
Iowa City Farmer's Market and minimizing disruption to their operations.
Concurrentwith the design work, the construction team will be reviewing constructability
of the building components, develop a procurement plan to identify long lead and
locally produced items, source potential sustainable products to be incorporated and
develop and finalize the site logistics. Further, to maximize the opportunities for local
subcontractors and utilization of local labor, the construction team will meet with local
and corridor construction companies to alert them of upcoming bid opportunities and
the current construction schedule.
Construction of the project is anticipated to commence in October 2013 based on
Development Team selection this Fall and overall design development. Placement of
the residential /office tower on the Chauncey Swan Park site will minimize disruption of
pedestrian and vehicular traffic on College Street and Gilbert Street during construction.
The location of the building footprint set back from Washington Street will provide for
construction phasing and material storage within the project site and not within the
public streets. Our plan anticipates placement of a tower crane on east edge of the
existing park site between the new residential /office tower and the existing Chauncey
Swan Parking Ramp. A temporary construction man /material elevator will be placed
within the project site off Washington Street on the north side of the residential /office
tower with a temporary construction loading dock. Construction deliveries will enter
and exit the construction site via a gate onto Washington Street. An overhead canopy
will be provided where required to protection pedestrian traffic adjacent to the project
site. Safety of both the public and construction employees will be stressed during
construction and we will enter an agreement with OSHA for a safety consultation
program on the project.
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Organization & Management Approach
Construction of the project is anticipated to begin in October 2013 and require 24 months
to complete. We intend to mobilize and begin construction on both the New Pioneer
Food Co -op site and the existing Chauncey Swan Park simultaneously. Construction of
the newly located Chauncey Swan Park at the corner of College and Gilbert and below
grade parking is anticipated to take 8 months and be ready for public use in the summer
of 2014. Construction of the New Pioneer store and residential /office tower will proceed
concurrent to the new park construction, a phased occupancy of the tower is anticipated
by building use including the New Pioneer store, the office /restaurant areas and then
the residential tower.
The construction management team will be located on site and be responsible for the
daily management of the construction activities including internal project safety audits.
Our team will lead regular status meetings with the City of Iowa City representatives as
well as monthly meetings with adjacent user groups and neighborhood residents. We
will provide and maintain site security during community events particularly during the
Farmer's Market and public events at the new Chauncey Swan Park once it is open. We
will also install and maintain a public access webcam to monitor construction progress.
CHAUNCEY GARDENS, LLC- 69
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Schedule for Completion
Chauncey Gardens, LLC is ready to begin the architectural design process immediately
upon selection as the developer. The schematic design process will begin with a
collaborative "kick -off' meeting with the City of Iowa City and neighbors to receive
feedback on the proposal, project goals, program, and timeline. The developers are
open to all ideas and public input to ensure a successful project. This is expected to
be a two month process culminating with a schematic design presentation to the City.
Over the next eight months the project will progress through design and construction
documents with periodic submissions to the City of Iowa City for review and comments.
Final plans, specifications will be submitted for review on September 17, 2013.
Construction will focus on completing the underground parking and new Chauncey
Swan Park during the first 8 months. Parking can be used by the developer and the
new Chauncey Swan Park can be turned over to the City and opened to the public.
Building construction of the shell and tenant fit -out is expected to take 2 years with
occupancy of condominium units beginning fall of 2015.
A proposed project schedule appears on the next page.
CHAUNCEY GARDENS, LLC- 71
Chauncey Gardens
Proposed Project Schedule
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Property Acquisition
Schematic Design
IIIIII'll''llllll' Cost Estimate - Knutson Construction
Design Development
Cost Estimate - Knutson Construction
50% Construction Documents
GIMP Cost Estimate - Knutson ConstructiormiIIIIIIIIIIIII IIIIIIIIIIIIIIIII III
Complete Construction Documents
City Review / Building Permit
Bidding and Procurement
Construction - Underground Parking and
Chauncey Swan Park
Construction - Building Shell
Construction -Tenant Sapces IIII' Commissioning and Turnover
Purchase and relocation of Midamerican
Energy Substation
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
MidAmerican Energy Property
Chauncey Gardens, LLC intends to purchase the MidAmerican Energy Substation,
located on the southeast corner of the site, subject to acceptable terms for both parties.
The substation occupies an important corner of the proposed new Chauncey Swan
Park. From and aesthetic, functional and safety point of view the substation should
be removed. The property will be used for parking below with park space above;
completing the vision shown in the proposal.
The decision to locate the proposed building on the north side of the block allows
the design and construction to begin independent of the purchase of the substation
property. This removes the 9 -12 month lead time for removal and relocation of the
substation from the critical path of the overall project schedule.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
General Financing Plan
This project is designed to fit within the financial capacity of the Chauncey Gardens,
LLC with personal commitments from the officers /principals to the equity required by
the lenders. The scale of the project is reduced to a level that is financially achievable
by the Developer by marketing the commercial spaces and Class A office space to
local businesses, and partnering with the Community Development Planners & Iowa
City Housing Fellowship for the sale & rental of the residential units. These residential
units increase the likelihood of success for both the Developer and the City of Iowa City.
Discussion with lenders has already begun for permanent financing as indicated with
the following letters of interest.
CHAUNCEY GARDENS, LLC- 75
Letter of Intent for Mixed Use Project
This Letter of Intent pertaining to a mixed use development Project is entered into on
2012 by and betweenC/Iavwv :g ( "Developer") and New Pioneer's Cooperative Society
New Pioneer").
Recitals
A. New Pioneer is a cooperative association formed under the laws of the state of Iowa
presently operating grocery stores in Iowa City and Coralville, Iowa. New Pioneer is interested
in expanding and relocating its Iowa City retail business operations to an alternate facility that
better serves New Pioneer, its members and the community. New Pioneer is aware of the City of
Iowa City's interest in seeking requests for proposals for a project to be built at the northeast
quadrant of the intersection of College and Gilbert Streets in downtown Iowa City ( "Site" ).
Subject to the requisite approvals of its membership acrd Board of Directors, New Pioneer is
interested in pursuing the Site as a possible location for its relocated business activities.
B. Developer is a 'developer of real estate projects and has indicated an interest in
developing a multi -use commercialiresidential project on the Site (the "Project"). Once the City
of Iowa City ("City") completes and publishes its Request for Proposals ("RFP" ), Developer is
contemplating submitting a proposal for the acquisition of the Site for development of the
Project.
C. New Pioneer is interested in being a part of the Developer's Project, and the Developer
desires having New Pioneer be an occupant of the Project, believing New Pioneer's participation
enhances the feasibility of the Project.
D.. The parties wish to enter into a non - binding letter of intent to express the basic
parameters for their continuing discussions and negotiations for New Pioneer to be included as a
proposed occupant of the Project in connection with the Developer's proposal to be, submitted to
the City, and ultimately for the parties to enter into a contract for New Pioneer's acquisition,
construction, fixturing, occupation, use and operation of a portion of the Developer's Project.
Expression of Intentions
1. Participants. Developer intends to submit a timely Project proposal to the City in response
to the City's anticipated REP. Developer further intends on being the principal developer and
owner of the Project, most likely through one or more development entities that Developer may
form. The parties recognize that a Project of this size may require additional investors and
financing through one or more sources. Additionally, the parties recognize that this Project will
require the involvement of multiple professional consultants and participants such as architects,
engineers and other design consultants; accountants and lawyers; financial institutions; a
contractor; and various potential investors. Developer agrees to keep New Pioneer advised of the
key participants to be involved in the design, construction and financing of the Project, as well as
principal investors therein.
2. The Project. As presently conceptualized, the Project will involve one level of underground
parking; retail (New Pioneer) on the first floor level; two to four floors of office commercial; and
three to six floors of residential. It is anticipated that the building will be appropriately separated
into condominiums to allow the entire `first floor, including mezzanine if required, to be a
separate unit to be acquired by New Pioneer, with other spaces in the building to be
condomiuiumized as the Developer may deem appropriate for either sale or leasing. The Project
will be built on three parcels now owned by the City as well as an additional parcel presently
owned by MidAmerican Energy Company. The land is described as follows:
Lots Five and Six, Bloch 43, of the Original Town of Iowa City, Iowa.
The property excludes the alleyway along its north boundary, and the property is immediately
adjacent to a City parking facility along its east property line.
3. Project Contingencies. The parties acknowledge that the following are among various
matters that constitute contingencies that most be satisfied for the Project to proceed:
a. The Developer submitting a proposal that is accepted by the City, such proposal to likely
contain elements for the City's financial support, such as reduced land cost, TIF
financing and/or other City participation.
b. Acquisition of the City's portion of the site under terns and conditions (price and any
covenants and/or restrictions) acceptable to Developer and New Pioneer.
c. Acquisition of M1dAmerican'S portion of the site under terms and conditions (price and
any covenants and/or restrictions) acceptable to Developer and New Pioneer.
d. Rezoning of the parcel as may be required for the anticipated uses (grocery/retail; office;
and multi - family residential) within the Project.
e. City site plan and building permit approval of the Project under terms and conditions
acceptable to the Developer and New Pioneer.
In addition to the foregoing general threshold contingencies, the Developer will also have usual
and customary Project feasibility considerations before its final decision to proceed with the
Project, including requirements and conditions that may be imposed by the Project's investors
and lenders. As such, the Project will be conditioned upon feasibility based on Project costs as
well as final financing arrangements, all to be acceptable to Developer.
4. Purchase Agreement. The Developer and New Pioneer anticipate continuing their
discussions and negotiations in working towards a mutually acceptable purchase agreement and
related documents ("Purchase Agreement ") containing final terms and conditions for New
Pioneer's purchase of a condominium unit on the ground floor of the Project, built out to a level
of finish defined in the Purchase Agreement. The Purchase Agreement will provide substantially
more details than presently contained in this Letter of Intent with regard to time frame, costs and
contract contingencies. This Letter of Intent expresses the parties' current intentions in general
terms for the purpose of providing a base for continuing discussions, negotiations, refinement of
Project details, and each party's more specific requirements.
CHAUNCEY GARDENS, LLC- 77
Prior to entering into the Purchase Agreement it is anticipated that Developer will have waived
most if not all general and financial feasibility contingencies for proceeding with the Project, and
shall also be able to demonstrate such financial capacity as will be necessary to fully perform the
Project, whether through performance bonds, bank letters of credit or through other means
satisfactory to New Pioneer.
5. New Pioneer's Conditions and Contingencies. in order for New Pioneer to proceed with
any commitment to participate in the Project, it will have certain requirements including, but not
necessarily limited to, those in the following categories. Only preliminary specifications of these
conditions and contingencies are set forth below, which are expected to be refined and modified
as the parties get closer to implementing a Purchase Agreement:
A. Approvals. New Pioneer's proceeding with this Project requires membership and
Board approvals. New Pioneer has obtained membership approval for entering into a purchase
agreement. Additional Board approval will need to be obtained at various phases of the Project
including, but not limited to, approval of the Purchase Agreement and satisfaction and /or waiver
of contingencies that may be reserved in the Purchase Agreement.
B. Plans and Specifications. Final plans and specifications for the configuration,
construction and shell build -out of New Pioneer's space within the Project will need to be
incorporated into the Purchase Agreement likely as an exhibit describing the intended condition
of the property at the time of closing and transfer of possession. Developer, through its
contractors, will construct the building and fit out the New Pioneer space to "Shell" condition
according to such plans and specifications as may be modified from time to time by agreement of
the parties and /or through a change order process. Subject to final plans and specifications, the
currently anticipated general features of the build -out of New Pioneer's space within the Project
to "Shell" condition, are as follows:
Shell Description
It is expected that the New Pioneer condominium unit will be 100% complete oil
the exterior of the building less signage, and that the interior of the shell includes
the following:
18 foot clear height to the underside of the structure
Concrete Floor that is hard steel troweled
Exposed concrete columns, beams, and ceiling structure - unpainted
Provisions under -floor including rough -ins for refrigeration
Provisions for sanitary connections
The interior side of the exterior walls will include insulation and vapor
barrier only, ready for sheetrock
Rough -in provisions for a kitchen hood
Electrical service capacity for 1,200 AMPS
Mechanical, Plumbing, Electrical, and Fire Protection Systems and IT
infiastructure will be installed by New Pioneer in such a way that they are
independently metered systems
The entire build -out of the New Pioneer space in the Project from "Shell" to finished condition
will be completed by New Pioneer and/or its contractors.
C. Condominium Purchase Price. The final purchase price for the New Pioneer
condominium unit shall be subject to New Pioneer's and Developer's agreement.
It is anticipated that the purchase price will be determined based on the "Developer's
Cost" for the New Pioneer condominium unit built -out to "Shell" condition. The specific
mechanism and/or formula for determining the Developer's Cost will be subject to the agreement
of Developer and New Pioneer and specified in the Purchase Agreement. The Developer's Cost
will be based on design/build pricing and bidding, including a contractor's percentage acceptable
to Developer and New Pioneer. The possibility of a Developer's profit or fee is to be negotiated,
with any such amounts that might be included in the Developer's Cost to be subject to New
Pioneer's approval. The method of determining and verifying labor and material costs, and
allocating those to New Pioneer's condominium unit, will also be subject to New Pioneer's
approval. New Pioneer anticipates that Developer will allocate to the purchase price an equitable
portion of the Developer's Project costs for land acquisition, construction financing, construction
period insurance, construction period property tax, design, and construction, plus the
Developer's design and construction costs and fees of building out the New Pioneer
condominium unit "Shell" to the approved plans and specifications, but exclude from the
purchase price any marketing expense and sales commissions, and also exclude any Developer's
profit or fees except those subject to approval from New Pioneer. It is anticipated New Pioneer's
purchase price will include an equitable portion of the costs of the common elements of the
building that benefit or serve the New Pioneer unit, but will exclude any costs for common
elements that provide no benefit or are not used by the New Pioneer unit. All such costs shall be
established in a manner that is acceptable to New Pioneer, shall be within a maximum cost that
will be specified in the Purchase Agreement, and will be subject to reasonable verification by
New Pioneer (or its agent Loeffler Construction & Consulting). Payment by New Pioneer for its
completed condominium "Shell" unit shall be at the time of closing and transfer of possession,
with earnest money to be negotiated and specified in the Purchase Agreement.
New Pioneer and Developer each acknowledge that it is diffidult to accurately estimate the total
Project cost and the cost of the New Pioneer space completed to "Shell" condition at the time of
responding to the City's RFP. Nevertheless, given information available as of the date of the
execution of this Letter of Intent, New Pioneer and Developer acknowledge that $120 per square
foot of useable space is a good faith estimate of the "hard construction cost" for the "Shell ", with
the actual "Developer's Cost" to be subsequently specified in the Purchase Agreement or
othertivise by written agreement of New Pioneer and Developer. The "hard construction cost"
excludes "soft costs ", such as land costs and architect fees, These additional costs, when known
with accuracy, shall be equitably allocated between New Pioneer and the Developer, in a manner
that is subsequently agreed to in writing by both parties.
D. Financing Contingency. New Pioneer's purchase is subject to receiving a
commitment for financing its condominium unit upon such terms and conditions as may be
acceptable to New Pioneer in its sole determination. This financing contingency will either be
4
CHAUNCEY GARDENS, LLC- 79
waived before entering into the Purchase Agreement or reserved in the Purchase Agreement with
a requirement for satisfaction or waiver before Developer commences New Pioneer's specific
Shell" build -out.
E. Public Support. To the extent that the Developer is able to obtain TIP financing
and/or other benefits through the City as an incentive to proceed with the Project, New Pioneer
anticipates receiving an equitable allocation of such benefit to reduce the costs of the New
Pioneer portion of the Project, because the city is very interested in the development having a
occupant such as New Pioneer in the project.
F. Design and Construction. The general design and configuration of the Project will
need to be compatible with New Pioneer's intended use of the first floor, and otherwise
acceptable by New Pioneer in its determination. Such consideration will include, but not
necessarily be limited to, the following:
L Locations of entrances and exits
ii. Arrangements for deliveries, loading zones and trash storage
iii. Specified Utilities, electrical service, gas service, mechanical and plumbing
iv. Exterior and interior design and materials
V. IIVAC systems with separate operation from remainder of building
vi. Underfloor Refrigeration Rough-in
vii. Electrical Service separate from remainder of building
viii. Separate gas, water, electricity and other motors
ix. LEED design and implementation
X. Elevator service for both first floor and mezzanine
xi. Trash, composting and recycling facilities
xii. Parking immediately adjacent to the grocery entrance; 100 stalls
G. Project Personnel. Key personnel on the Project will need to be acceptable to New
Pioneer, including the architect, engineer, Project manager, general contractor, key
subcontractors and possibly others.
H. Parkin . New Pioneer's going forward will be contingent upon an agreement with
the City, satisfactory to New Pioneer in its sole determination, with regard to pedestrian access
from the adjacent parking ramp as well as for 100 parking spaces to be made exclusively
available for New Pioneer's use within the adjacent parking ramp. New Pioneer will be
responsible for negotiating such arrangements with the City, with the intent to have such matters
resolved, if possible, before entering into the Purchase Agreement, but otherwise a condition of
the Purchase Agreement.
I. Condominium Matters. New Pioneer's proceeding will be conditioned upon Developer
providing a condominium declaration that is acceptable to New Pioneer in all respects. New
Pioneer anticipates that the condomnium declaration will carefully define all units and all
general and limited common elements, specifically setting forth those limited common elements
that are for the exclusive use of New Pioneer's unit; the exclusive use of New Pioneer's unit and
some, but not all, of the other units; and the exclusive use of some of the other units but
excluding New Pioneer's unit. Additionally, the declaration will need to appropriately allocate
common element maintenance, repair and replacement expenses, as well as building operational
expenses, so that New Pioneer pays assessments only for those common elements and those
operational expenses that relate to those aspects of the building that serve or benefit New
Pioneer's unit, and that New Pioneer is not paying for the expenses associated exclusively with
one or more other units in the building. The process for assessments, building reserves, building
management, owners association, voting, insurance and other condominium matters will all need
to be acceptable to New Pioneer. The condominium declaration will either need to be approved
by New Pioneer before entering into the Purchase Agreement or its approval will become a
condition of the Purchase Agreement. Additionally, any rules in connection with the building's
operation will need to be compatible with New Pioneer's intended use, including but not limited
to those that may affect hours of operation or shipping and receiving.
J. Basic Space Requirements. It is now anticipated that New Pioneer will have the
following space requirements within the Project:
i. Not less than 19,000 useable sq.ft. (net of stairs, elevator shafts, utility shafts and
other nonusable areas) on the first floor (street level) with direct pedestrian access to
the sidewalks on Gilbert and College Streets, as well as direct pedestrian access to the
adjacent parking ramp;
ii. Not less than 3,000 useable sq.ft, on a mezzanine or 2"4 floor for store operations
which will include offices, meeting rooms, employee locker rooms and the server
room, etc.
iii. Not less than 600 useable sq.11, -of mechanical/equipment room space in the lower
parking level
iv. Loading clock access from College Street
v. First floor climate controlled walkway and space for exterior seating of
approximately 2,000 useable sq.ft, along the north side of the building (in addition to,
not part of, the 19,000 sq. ft.)
vi. Not less than 200 useable Sq.% in lower parking level for trash, recycling and
composting (may be combined with other building users so long as New Pioneer's
requirements are satisfactorily met)
6. Time Frame. The parties acknowledge that the Project is still in an early phase. However, if
the Developer's Project is not going to come to fruition within a reasonable time frame, then
New Pioneer may wish to pursue other possible opportunities. As such, the parties agree that
they shall proceed with the expectation that the Project will be ready for occupancy some time
during the 4 °i calendar quarter of 2014 through the 1st and 2 n calendar quarters of 2015, and
each party shall keep the other timely advised of any matters that might arise that could
materially affect the availability of the Project for such occupancy.
7. Cooperation and Coordination. Unless negotiations and discussions are terminated by
either party, it is anticipated that the parties will coordinate their plans and cooperate to the
extent reasonable in connection with further developing plans for the Project and specifically in
connection with responding to an RFP from the City. While Developer shall take the lead
responsibility for all such matters, New Pioneer shall cooperate to the extent of its desired space
l3
CHAUNCEY GARDENS, LLC- 81
within the Project. New Pioneer is committed to be a part of the Developer's Project as the
Developer proceeds with his proposal and feasibility analysis, provided the Developer continues
to demonstrate a serious interest in pursuing the Project, continues to assemble a team of
professionals, contractors and investors capable of fulfilling the Project, and articulates a
reasonable plan for financing the Project. If at any time prior to entering into the Purchase
Agreement the Developer shall determine that this Project is no longer feasible, Developer shall
promptly notify New Pioneer of such determination. Similarly, if at any time prior to entering the
Purchase Agreement should New Pioneer determine that it no longer wishes to participate in the
Project or that Developer's progress on the Project is not satisfactory, in New Pioneer's sole
determination, New Pioneer may indicate to Developer its election to terminate negotiations and
discussions pertaining to the Project.
New Pioneer will reasonably cooperate, on a non - exclusive basis, with Developer towards the
objective of the Developer's proposal becoming the approved proposal submitted to the City for
the development of the Site and for Developer to proceed with its Project which will incorporate
the condominium space for New Pioneer's ownership and use. I3owever, New Pioneer reserves
the option should there be, in New Pioneer's determination, other viable and timely projects, for
New Pioneer to work with any other party for a project on the Site or elsewhere that
appropriately and/or timely addresses New Pioneer's business needs.
8. Additional Office Space. Before the Developer commits to selling or leasing space on the
second floor that would leave less than 5,000 useable sq.ft. remaining, the Developer will contact
New Pioneer with regard to any interest for additional second floor office space. Tlris option for
additional office space is independent of the 3,000 useable sq.ft. on the mezzanine or second
floor for store operations as specified in S.J.(ii) above.
9. Confidentiality. New Pioneer and Developer hereby each agree to hold as confidential all the
other's plans, building designs, concepts, strategies of construction, financial circumstances, cost
estimates, financing, and other matters related to a party's potential participation in the Project as
may have been or may be disclosed by one party to the other party in connection with the
discussions and negotiations related to this Letter of Intent and the Project, and that are not
otherwise generally known ( "Confidential Information!). Any disclosure of Confidential
Information of a party by the other party shall only be made after the party whose Confidential
Information is being disclosed has agreed to such disclosure in writing in advance. The parties
each acknowledge that if Developer submits a proposal to the City of Iowa City, and also if the
Developer's proposal is approved by the City, disclosure of certain Confidential Information and
the Purchase Agreement contemplated herein to specified third parties as a part of implementing
the Project will likely be necessary. In that event, the parties agree to cooperate in such
disclosures, which shall be agreed to in writing in advance. The parties further agree this
provision shall survive in the event of termination of this Letter of Intent. Nothing in this
provision is intended to limit a party firom disclosing the Confidential hiformation of the other,
on a need to know basis, to a party's representatives, consultants, lender(s), attorneys, contractors
or other agents, in connection with its due diligence and investigations relating to the continuing
discussions and negotiations contemplated by this Letter of Intent.
10. Non - Binding. This Letter of Intent does not constitute an agreement to negotiate, but solely
constitutes an outline of some of the terms for negotiation. The parties will in good faith
diligently pursue discussions and negotiations in an effort to come to and refine terms and
conditions for final documents for each party's review and approval, some of which may be
multi -party agreements. While this Letter of Intent is intended to provide the parties guidance in
pursuing negotiations and discussions, except for Paragraph 9 and the next paragraph of this
Paragraph 10, it is not binding, and the terms of any final agreement may be the same as, similar
to or different from the provisions of this Letter of Intent.
New Pioneer and Developer each acknowledges and agrees that each is proceeding with its side
of negotiations at its sole cost and expense (which may involve substantial transaction costs) and
that either party may terminate negotiations for any reason, at any time, without any liability or
obligation to the other. Further, neither party shall have any legal rights or claims against the
other party by reason of any action taken, statements made, writings delivered or other matters
undertaken by a party in reliance upon this non - binding Letter of Intent - including, without
limitation, any expenditure of funds, partial performance of transactions contemplated herein, or
any other actions of party.
This letter of intent shall be of no finther effect upon either i) the parties entering into final
agreements, or ii) the termination of discussions and negotiations between the parties pertaining
to the matters contained herein. The parties anticipate that their discussions and negotiations will
be completed or terminated before the expiration of twelve months after the execution of this
Letter of Intent.
Developer
New Pitmgw;!operative Society
title
Date 9 Z %2J
Date
tiu 1i
M
CHAUNCEY GARDENS, LLC- 83
Letters of Intent
In addition to the previous letter of intent, we are in serious discussions with three other
clients that have expressed interest in over 20,000 sf of Class A office space. At this
time they wish to remain unnamed.
Private Developer for College SL/Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Marketing Approach
Tom Kaut and Chauncey Gardens, LLC will utilize local contacts and the latest technologies to provide excellent
information, communication, and service for clients. This project will be syndicated on several different websites
including www.tomkaut.com, www.lepickroeger.com, www.realtor.com, and www.trulia.com. Tom has been providing
professional real estate services for 20 years with over $125 million in real estate sales in the last 10 years. He
specializes in residential, investment property, new construction sales and development of multi - family and residential
real estate. In addition, Neumann Monson Architects will support marketing efforts by supplying print and digital
graphics. This will also include 3D physical models and 3D digital renderings and animations. The following avenues
will be used to market the project:
The Advantage:
Aweekly 24 page publication in the Press - Citizen on Saturday
New Listings with photos and property detailsNewLi
Open houses with photos and property details
Specific agent listings
Local Websites:
The Lepic - Kroegerwebsite: www.lepickroeger.com
YOUR WEEK {ru BUTI Cu1EM
tEPICKROEGER.COM
Iowa City Area Association of REALTORS& www.icaar.org/
Cedar Rapids Area Association of Realtors: www.crrealtors.org /
The Iowa City Press - Citizen: www.press-citizen.com
IDX Member r ...`...
The Lepic Kroeger blog: http : / /gettheadvantage.blogspot.com
Social Media including Facebook, Twitter and Linkedln
National Websites:
We will also utilize the intenet to spread the word about all of our homes that are being marketed via over 50 websites.
With real time data feeds, the properties will always be up -to -date. Website traffic statistics are also available for these
national websites:
AOLRealEstate.com
Buerhomesite.com
Classifies.org
CLRsearch.com
CommercialFinder.com
CondoQuickFind.com
CyberHomes.com
ELookyLoo.com
Fizber.com
Foreclosure.com
FrontDoor.com
Google.com
HomeFinder.com
Homegain.com
HomeOnTheTube.com
Homes.com
HomesAndLand.com
Homeseekers.com
Hotpads.com
Housel-ocator.com
Justsnooping.com
Kazork.com
Land FarmAndRanch.com
LandQuickFind.com
ListingMania.com
MyRealty.com
Oodle.com
PropertyPursuit.com
Real - Estate.com
RealEstateBook.com
Realtor.com
RealtyTrac.com
Relohomesearch.com
Trovit.com
Trulia.com
Vast.com
Vlshomes.com
Yahoo! Classifieds
Yahoo! Real Estate
Zillow.com
CHAUNCEY GARDENS, LLC- 85
Proposed Purchase Prices
We propose to acquire in fee title that portion of Lots 3 and 4 in Block 43 and the City's
alley necessary to construct our planned mixed use building for a total purchase price of
1,000,000. We request that the City grant us easement rights over the City's property
at the northeast corner of Gilbert and College for the purpose of relocating the park.
In order to complete the project, we will require the City's grant of subterranean rights
under this property, as well as under the existing Chauncey Swan parking ramp, for the
purpose of constructing underground parking and use for geothermal wells.
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
Gap Financing
We request that the City make a loan from its General Fund balance with a 20 year
repayment schedule to fund a construction grant to provide gap financing forthe Project
in the total amount of $12,000,000 as more particularly set out below. We propose that
the loan will be made when we have submitted evidence satisfactory to the City that the
Developer has received equity capital and mortgage financing.
First, as a part of this gap financing, we request that the City provide us with a matching
grant of up to $250,000 for predevelopment expenses such as architectural, engineering
and environmental assessment. The City would pay 50% of all documented invoices up
to the matching grant amount.
Second, we request a forgivable loan of $3,000,000 for acquisition, demolition and
clean up of the entire site, to be secured by a mortgage on the property subordinate to
our construction lender. This Mortgage will be released upon the City's insurance of a
Certificate of Occupancy for the Project.
Third, we further request that the City make a grant for direct construction costs. Based
on total project construction costs of $45,000,000, the requested grant is $8,750,000.
If ourtotal Project costs are less than anticipated by 10 %, the final grant payments will
be reduced on a prorata basis. We propose that construction grant funds be released
on a prorata basis with the proceeds of our construction loan for progress payments to
the general contractor.
CHAUNCEY GARDENS, LLC- 87
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
10. Exhibit B
Tom Kaut, a member of the development team, pleaded guilty to conspiracy to distribute cocaine. This is a regrettable
circumstance in Tom's life but he has paid his debt to society and has been a proud and productive member of our
community since that time. He has no other criminal history.
EXHIBIT "B"
LISTING OF LAWSUITS OR LITIGATION WITHIN
THE PAST FIVE YEARS
Lawsuit or Litigation None
Status or Outcome None
Comments None
CHAUNCEY GARDENS, LLC- 89
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
11. References
CHAUNCEY GARDENS, LLC- 91
Ago '*'
CORALVILLE
NWSVY
RE: Jesse Allen and Tam Kaut OBA Chauncey Gardens LLC
TO Whom It May Concem:
The City of Coralville has worked with Jesse Allen on various projects within the city
ranging from individual single family homes to development of an entire subdivision.
We have found Mr. Allen his partners and employees to be very professional to
work with and his projects to be of a high caliber of workmanship. He has been very
cooperative in working with city staff to assure that his projects adhere to city codes
and ordinances. We had not had customer complaints voiced about Mr. Allen's work
or delay in completion of jobs.
We would welcome the opportunity to work with Allen Construction in the future.
Tim Kessler
Building and Zoning Official
Ph: 319.248.1720
Fax: 319.298.1894
jkessler @d. Coralvi Ile. ia.u5
City Administration
15127" Street
Coraluille, Iowa 52241.1701
Ph: 374248.1700
Fax 31$241884
Iowa City Area
Developmem Group
FXftwrdinary uppartum:
in unex Peysr ii pl OCr
September 24, 2012
City of Iowa City
Attention: Tom Markus
410 E. Washington St.
Iowa City, IA 52240
It is with great honor that we submit this letter of reference for Neumann Monson Architects.
As one of the prominent Iowa City architects whose work has demonstrably benefitted the
landscape of this community and region, the principals of this firm have long supported the
views and mission of the Iowa City Area Development Group. Kevin Monson has served on the
ICAD board of directors and has been instrumental in leading the organization to where it is
today. He and his staff have provided invaluable assistance in the conceptual development of
the CoLab space.
Their modern vision for creating unique, inviting spaces with distinctive eye for detail in the
structures they have designed has created significant benefit to the area as we work to attract
investment, businesses and talent.
ICAD is eager to work with the Neumann Monson team in marketing the needed office space
this project will bring to the city. With the size, location and concept of this project it would be
an ideal fit to be featured nationally as part of the Shovel Ready Certification network of site
selection consultants and national real estate firms.
In closing, we are grateful for the ongoing support Neumann Monson has provided to ICAD and
the Iowa City Area and trust they would be a valuable partner to the city for this project.
Sincerely,
Mark Nolte
Interim President
Iowa City Area Development Group
m nolteP iowacitya rea.com
325 E. Washington Street, Suite 101 Iowa City, IA 52240 319.354.3939
IowaCityAreaDevelopment.com
Hills Bank
and Trust Company
September 19, 2012
Thomas Kaut & Jesse Allen
3551 Donegal Court
Iowa City, IA 52246
Dear Tom and Jesse:
1009 2nd Street
Coralville, IA 52241
319 -351 -8000
This letter shall serve as a letter of credit reference to confirm years of satisfactory
performance that Hills Sank and Trust Company has experienced with each of you in
providing both construction and development financing.
We understand that you are looking at a project within the city limits of Iowa City and
that a letter of credit reference has been requested. Should this project proceed, we
would be happy to review the project and related loan requests. While we are not yet in a
position to grant a binding loan commitment, we appreciate your giving us this
opportunity.
Please consider this as our non - binding Letter of Interest to work with you on this project.
Thank you for your ongoing relationship and the opportunity to providing you additional
services in the future.
Sincerely,
Tim D. Finer
Senior Vice President
Hills • Iowa City • Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon - Marion • Wellman
hillsbank.com 1- 800 - 445 -5725
e
Bank
September 18, 2012
Tom Kaut
c/o Lepic- Kroeger, Realtors
2346 Mormon Trek Blvd
Iowa City, IA 52246
Re: Letter of Interest and Recommendation for City of Iowa City project RPP
Dear Tom:
I'm glad to provide this letter of interest to work with you and potential partner(s) on the
City of Iowa City request for formal proposal at the northeast corner of College and
Gilbert Streets. I believe you will be able to offer a very nice final project that will add to
the attractiveness of the greater downtown Iowa City.
Mule this is not meant to serve as a financing commitment to lend on the proposed
project, we'd gladly work with you and potential pariner(s) on it.
MidWestOne Bank has enjoyed a great working relationship with you on personal
banking as well as construction and development projects since 2008. Just as one of our
bank's operating principles notes, you have always conducted yourself with the utmost
integrity. You and your companies are valued, creditworthy, and respected clients of this
bank.
Please let me know if you or anyone else related to this request has any other questions-
I'd be glad to help you with them.
Sineere y, r ,,
Jerry Waddilove
Vice President. Regional Credit Officer
MidWestOne Bank
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
12. Unique Resources & Capabilities
Our team is committed to the success of Iowa City.
Our team has long -term Iowa City roots, past and present.
We are truly local. All dollars are filtered directly back into the local community
to support a healthy economy for Iowa City's future.
Our team has an impressive depth of experience in coordinating all facets
of the project.
We propose innovative, foward- thinking design solutions.
We will respond quickly to challenges that may arise.
We are willing to listen to all parties at the table.
We are committed to a community- minded approach.
We are committed to using cost effective, renewable energy resources.
We are committed to energy efficiency and sustainability.
Our team brings extensive experience in the local commercial business
market.
Our team brings experience in the local housing market.
Our team brings years of experience with mixed -use experience.
CHAUNCEY GARDENS, LLC- 97
Private Developer for College St./Gilbert St. Northeast Comer> City of Iowa City> November 21, 2012
13. Exhibit A
EXHIBIT "A"
Proposal submittal signature form
The undersigned attests to his /her authority to submit this proposal and to bind the firm
herein named to perform if the firm is selected by the City of Iowa City. The undersigned
further certifies that he /she has read the Request for Proposal, terms and conditions,
and any other documentation relating to this request; has complied in all respects with
all conditions hereof, and this proposal is submitted with full knowledge and
understanding of the requirements and time constraints noted herein.
The undersigned hereby further acknowledges that it accepts the terms of the Request
for Proposals in its entirety and by the submission of its proposal hereby waives any
claims or claims to irregularities that arise out of such RFP, the process employed by
the City to solicit and develop proposals, the RFP evaluation process described in the
RFP, and agrees to release and hold harmless the City, its employees, agents, and
consultants from any claim, loss, or damage arising therefrom.
The undersigned hereby authorizes any person, firm or corporation to furnish any credit
history and financial condition or other information required by the City to verify
information related to the Firm's submission to the City.
hereby certify, on behalf of the undersigned firm, that the above information is true and
correct to the best of my knowledge and that the City may rely on the information
provided.
Firm name: Chauncey Gardens, LLC
Home office address: PO Box 3473
City, state, zip: Awa City ly wa X240
Signature: Y, U
Date: fSeptembo 28, 2012
CHAUNCEY GARDENS, LLC- 99
40400000
CHAUNCEY GARDENS, LLC
Chauncey Gardens, LLC
PO Box 3473
Iowa City, Iowa 52240
319.530.8238
r
h® CITY OF IOWA CITY
MEMORANDUM
Date: November 14, 2012
To: Inter ted parties
From: John Yapo, Transportation Planner
Re: Chauncey Gardens proposal for redevelopment of the College St / Gilbert St corner
The Chauncey Gardens ' posal has been recommended as a finalist proposal for presentation
to the City Council at its November 26 work session. In their initial proposal, the Chauncey
Gardens team proposed wilding on the Chauncey Swan Park site, just north of the
redevelopment site at the northeast corner of College St / Gilbert St.
The development proposal revie committee recommended the Chauncey Gardens proposal
be forwarded as a finalist, but fo construction on the identified redevelopment site, not the
Chauncey Swan Park site. The view committee included representatives from the City
Council, City Managers Office, D artment of Planning and Community Development,
Department of Public Works and Engine 'ng and City Attorney's Office.
The proposal on the City's website as of No mber 15 is the initial Chauncey Gardens proposal.
It will be amended to reflect construction on t e identified redevelopment site at the north east
corner of College St / Gilbert St.
04
A
CHAUNCEY GARDENS, LLC
Coll e St./Gilbert St. Northeast )Corner
Xcityoflowcity City
November 13, x 12 1
im
W
Chauncey Gardens
Located on the former site of 9hauncey Park, this solution provides a ne and enlarged community green space
with many civic amenities. Th reinvented park's gently folded planes interlin multiple levels and create a variety of
spaces. The park becomes sun - filled stage for a variety of community even®
r7the
ith community gardens on level
5, shared residential gard s on floors 6 -14, and a public wine garden on flo building becomes a natural
extension of the verdant en space.
Private Developer for College SUG 11tert St. Northeast Corner > City of Iowa City > September 28, 2012
The project creates a pi
natural extension of the f
on many different levels.
elevated park on the comer of College and
in mall located to the west on College Street. P
public venues can be found on multiple levels
odli
P #
WP`
A
streets; the park becomes a
ns gain access to the building
e building.
CHAUNCEY GARDENS, LLC - 3
View from the former site of the bike library.
accommodate a variety of potential civic oppol
community bike rental program. j
ga;rku„ —
to
ME
r
i
new Chauncey Park provides gre space on many levels to
ies such as a sculpture park, an ou oor amphitheater, and a
Pmle Developer for College SUGilbert St. Nobeast Comer> Gq of Iowa City> September 28, 2012
Located at the north end of the site the balding provides many opportunities for an army of commercial and office
settings, including the new home for NeP. /Pioneer Food Coop. \
CHAUNCEY GARDENS, LLC- f
Chaundev Gardens
You ,, Ch k out the project on YouTube:
hltp:/ youtube.corn/watch?v =hCL
Search fo Chauncey Gardens
St. Northeast Comer> City of Iowa City> September 28, 2012
Table of ontents
tter 11
nfor ation 13
a of Development Entity 13
ctingng Entity 13
tional Chart t£ Team Members 14
Experience 21
7. Financial Capacity 27
scription 37
tion &Financing 75
B
Unique
97
as 99
Re ources $ Capabilities 105
107
CHAUNCEY GARDENS, LLC- 7
Private Developer for College SUGlihert St. Northeast Corner > City or Iowa City> SeOtemtur 28.2012
Al i
CHAUNCEY GARDENS, LLC
September 28, 2012
John Yapp
Jeff Davidson
City Clerk, City Hall
410 E. Washington St.
Iowa City, IA 52240
RE: College St. /Gilbert St. Northeast
Dear John, Jeff, and the Selection
On behalf of Chauncey Gardens, LLC I am
Gilbert St. Northeast Corner site.
site
Chauncey Gardens, LLC appreciates the opportdl
as the Developer, looks forward to working with th(
envisions an urban neighborhood that will become
We are all personally vested and committed to the
Enclosed are the original and 10 copies of the
request for proposal. If you have any questior
Chauncey Gardens, LLC
P.O. Box 3474
Iowa City, IA 52244 /
alienhomesinc@gmail.com
319.530.8238
Sincerely,
P— ) d`—"
Jesse Allen
President, Chauncey Gardens,
to su4it the enclosed proposal for the College St. /
be a part of this exciting project, and if selected
of Iowa City on our innovative solution that
tination point for community exchange.
fruition of this exciting project.
ng all submissions as outlined in the
proposal you can contact me at:
PO Banc 3473 • Iowa Cky, IA 52240 • 3195309398
Private Developer for College St (Gilbert St. Northeast Comer> City of Iowa City> September 28. 2012
2. Contact 1 formation
3. L al Name of Develo ment Entity
4. Contracting Entity
CHAUNCEY GARDENS, LLC
Chauncey GardensN
PO Box 3474
Iowa City, Iowa 52244
319.530.8238
Contact:
Jesse Allen
allenhomesirvc@gmail.com
Principals/
not
Jesse Allennt
Tom Kaut, id nt
John Rum naging Member
George Wanaging Member
Legal Enti
Chauncey LLC
This ent ty currently exist and will be ated at the
time the pr warded.
CHAUNCEY GARDENS, LLC- 11
5.
pnvf
5. Team Mem
NEUMANN MONSON knut On
ARCHITECTS , cons crlan
Neumann Monson Architects Knutson C struction
21 East College Street, Suite 303 2351 Scot oulevard SE
I a City, Iowa 52240 Iowa Ci ,Iowa 52240
319. 38.7878 319.3 .2040
Dwight 134berstein BrAd Johnson
MGn E pnvc s
Plenren BRADLEY & RILEY PCCiMrxfuv Y
i,nara Md,rm
AtT<fP. \flS AA9 C(1l@9nnR4
ER.1lM„pM9'' Epaci d, W CEOAR RAPI61 -IQN'A Cfn'
MMS Consultants Bradley $ Riley PC
1917 South Gilbert Street 1 South Gilbert Street
Iowa City, Iowa 52240 Iowa City, Iowa 52240
319.351.8282 319.466.1151
Duane Musser / \ Michael Pugh
dmusser @mmsconsulta s. net mpugh @bradleyriley.com
bergan aulsen?
eoyenr Mana;emrnt
Berg an Pa sen Heritage roperty Management
2530 Co or Way, Suite 301 220 East rket Street
Coralvill ,Iowa 52241 Iowa City, to 52245
319.351.8404
Craven Tony Vespa
CHAUNCEY GARDENS, LLC- 13
r=
Y
Jesse Allen
Chauncey Gardens, LLC
President
With over 12 years of
experience in developing
and constructing
residential and mixed -
use facilities, Jesse will
apply his knowledge to
the budget and schedule
control of this project. As
president of Chauncey
Gardens LLC he will
serve as the main point of
contact for the project. He
is a fourth generation Iowa
City -an and is familiar
with many community
members. He views this
project as an opportunity
to weave together public
and private spaces and to
celebrate the uniqueness
of downtown Iowa City
and is dedicated to the
project's success.
2
Tom Kau\t John R. Run
Chauncey Ga LLC Chauncey m, LLC
Vice Presiden Member ananer
Tom has been prov, ing
professional real esta
services in Iowa City
for nearly 20 years.
He is well -known with
both commercial and
residential markets and
is consistently in the Zip
10 for real estate sale
volume in Iowa City.
specializes in resid tial
investment prope
new constructi, sales
and the de/,,
ar'
ent
of multi -famd
residentiI l state. In
addition t investing in the
Tom will lead the
ng efforts for the
both commercial
idential units.
In add' Ion to being an
inve or in the project,
Jo brings a strong
d ire for and knowledge
sustainable initiatives.
e will work closely with
Krieger (Neumann
Mo on) and client entities
to cre e a sustainable
plan for a project that
will be on ack to achieve
LEEDcerti tion.
John's experi ce in
past commerci and
residential devel ments
will be valuable to
team. John is an to
City native, having live
and worked in Iowa City II
of his life.
Private Developer for Colleg6 SUGilbert St. Northeast Cmer> City of Iowa City> September 28, 2012
i
t.
t t -
George C. Wagner
Chauncey Gardens, LLC
Member Manager
George brings a wealth
of research, planning and
engineering-management
expertise to the project.
An Iowa City native, he's
managed and delivered
on multi - million dollar
municipal projects for
international engineering
software companies.
His graduate studies
in geography - which
emphasized urban
economic development
and GIS applications -
coupled with extensive
experience acquiring and
managing investment
properties, make him
well - positioned to deliver
on this multi - dimensional
Dwight Dobberstein
Neumann Monson Architects
Principal-In- Charge /
Project Manager
As Project Manager
Dwight will ultimately
be responsible for the
project's success. All
activities and team
members, including
consultants, are directed
through him. Asa
Principal with Neumann
Monson he has the ability
to adjust the project team
as needed to meet just
schedule demands. He
has worked extensively
on mixed -use facilities
including Hieronymus
Square in downtown Iowa
City. Dwight is a LEED
Accredited Professional
and will be an important
resource in this regard.
4
i>
Neumann Monson AT
Project Designer
Khalid has acted as
Project Designer on ma
projects, including work
that has been honored
with state, regional, and
national design awards.
As Project Designer,
Khalid will be responsible
for the building design,
conformance to program,
and adherence to cost
parameters. He will work
closely with all team
members, including
consultants and Knut n.
Khalid brings over 2
years of experien on a
variety of projec .
Parker Dobberatel
Neumann Monson rctm ctr
ProjectArchl ct
Parker brin significant
experien with a variety
project ty es including
recent axed -use
At
nce with Jesse
le nd Tom Kaut.
H ill be responsible
For inating all
ci 'nes and consultants
oci tad with the
project. ssuring that the
projectjo performance,
objectives, udgets,
and schedu s are
on target are rimary
responsibilities. Parker is
also a LEED A edited
Professional and ill
contribute to these
decisions.
rview
Matt Krieger
Neumann Monson Architects
SustainabNity Leader
Matt serves as the firm's
Green Team" leader
and will act as the
Sustainability Leader for
this project. Mattis an
important resource for all
of Neumann Monson's
sustainable initiatives and
has a tremendous amount
of experience in this
regard. Matt stays current
on the latest available
products, techniques,
and funding sources
where sustainability is
concerned. Matt is a
registered architect with a
wide variety of experience,
including 7 LEED projects
to his credit. He will
work closely with John
Rummelhart to test and
implement sustainable
initiatives for the project.
CHAUNCEY GARDENS, LLC- IS
Overy
David Tillotson
Neumann Monson Architects
Quality Control
David serves an important
role of assuring the
quality of the project by
coordinating drawings
and specifications. He
brings many years of
valuable experience to
the team and is also
responsible for producing
solid specifications.
David's role will be to
partner with Knutson and
other members of the
design team throughout
design development and
production of construction
documents.
Brad
Knutson
Project
As Project Executiv
Brad's responsibility i
to ensure that Knutson'..
construction personnel
have the necessary
knowledge, experience,
and resources available
to guarantee t/
ent
can complete
responsibilitie
successful m
will maintain
continuous co
Knutson's mateamthrough
course of th project.
Brad's exp fence with
leading cc plex projects
on cons ined urban sites
and wg with every
memb the team is
Steve
Manager
As roject Manager,
S ve is responsible for
Pfie overall coordination
of the project and
construction process.
These responsibilities
I clude: communication
wl the project team;
sch dulino and cost
negoti ions, award, and
manage ent; material
buyout a procurement,
and project dministration.
As an Iowa ' native,
he enjoys stro local
relationships wit area
subcontractors an
suppliers. Steve's p ject
background includes
both new construction
and renovation in the
institutional, residential,
and retail markets.
Pdvale Developer for College StlGilbert St. Northeast Corner > City of Iowa City> September 28, 2012
Nic Plecker
Knutson Construction
Estimator
Nic's responsibilities
include preparation of
budget estimates, value
engineering, systems cost
analysis, scheduling of
design and construction
activities, subcontract
negotiations and award,
project administration,
and cost control. He
has prepared bids and
conceptual estimates
for a variety of sizes and
types of construction
projects. His experience
and knowledge of
construction costs allows
Knutson to competitively
price estimates. Nic
actively researches
new technologies and
communicates with
subcontractors to
remain on top of latest
construction practices
i d'ustry-wide.
Overview
MMS consultants
Landscape Architect
Duane has 20 years
of experience as a
Landscape Designer
and Land Planner. He
is responsible for the
layout, design and
development planning of
commercial and residential
developments and multi-
family subdivisions. For
this project Duane and
his civil engineering team
will be responsible for
demolition plan, site plan,
site grading plan, utility
plan, landscape plan as
well as assisting in any
electrical plan and erosion
control plans.
Bradley & Riley
Attorney
Michael is a shareho er
with Bradley & Riley P
where he practices i i re
estate, business, zoning
and land use. He received
his B.A. degree from the
University of Iowa and
J.D. degree from Indi a
University. Michael i AV
Preeminent Peer view
rated by Martind e-
Hubbell and is sted in
The Best La ers in
America fo eat Estate
Law and and Use and
Zoning -aw. He is also
accre ited by the U.S.
Gr n Building Council
a a LEED (Leadership in
nergy and Environmental
Design) Green Associate.
Bergan
Tax Di
Denni is tax director and
has een in the accounting
ino6stry since 1979. He
ned Bergen Paulsen in
2010, focusing primarily on
Nx preparati on/p Ian ni ng
a business consulting.
H in the
real tate, construction
and la development
ndustrie Dennis is a
native of anhope, Iowa.
He receive is B.S. in
Business Ad 'nistration
from Drake Un ersity.
Heritage Property Management
Property Manager
Founded in 1985, Heritage
Property Management
opened has been an
active force in the Corridor
area for over 25 years.
We manage approximately
900 rental units, ten condo
associations, and a small
amount of commercial
property. Heritage
handles all aspects
of the rental process
including: pre- screening
tenants, collecting all
income and depositing
into the owners' accounts,
handling all maintenance
calls, supervising
the preparation and
presentation of available
units, and sending monthly
reports to our owners.
CHAUNCEY GARDENS, LLC- 17
Private Daveloper for College SUGilbert St. NorfheaSt Cormir > City of Iowa City> September 28, 2012
rience
CHAUNCEY GARDENS, LLC- 19
Featured Projects
shington Plaza, Iowa City, Iowa
De toper: Jesse Allen + Tom Kaut
A $7. million project consisting of 3
comme ial space. Because the proj
incorpora s a flood proof first floor. T
below gra The project is designed t
materials unshades are used 0
coordinat Neumann Monso Ar
0 co ominium units and 3,865 square feet of
ect s located within the flood plain, the design
w evels of parking are provided one of which is
give a pedestrian - friendly experience. Natural
the experience. The project was developed in
chilects and will be completed in Sunmer 2013
Northside Commons, N*a City, Iowa
Developer: Jesse Alle Tom Kaut
This $3 million mix e u__ project is located in Iowa City's historic Norlh Side
neighborhood. The rojec\'
ect
s 10 condominiums and 2,100 square feet of
commercial space. a desss has involved hosting multiple "good neighbor"
meetingstoallowc'izensvoackorconcems . This has given the project avery
community -minde spirit. Tt provides a sustainable housing solution, which
targets long-ter tenants/hors to help stabilize the North Side marketplace.
It is designed blend with istoric mixed -use structures. Window patterns,
scale, materi s, help to achia project is in the schematic design phase and
is being des' ned in coordinh N mann Monson Architects.
Burin on Commons, Iowa City, Iowa
Devel per: Jesse Allen
Forryt rly Hansen Auto Body and an eyesor\
parkiscreened
ington Street, this project is
no home to 10 condominiums. The $3.2 mt incorporates parking below
de and on ground level; with ground level from view. The project
ncorporates higher level fnishes and details th quality tenants. The project
was completed in fall of 2012.
St. Nariheast Caner > Cry of Iowa City> September 28, 2012
Rochester Ridge, Iowa City, Iowa
Developer: Jesse Allen
This highly marketable single - family sul
development is located near Lemme Ic
area's gentle rolling hills surrounded by m
construction. Work also included wetland
park land. The project's popularity is evide
sold out in the first year.
FgAtured Projects
vision is valued at PA million. The
entary and Regina igh School. The
re trees were caret ly maintained during
storation and pr ides centrally located
that 68% of Pie first two phases have
KW Realty Group / KW Custom Homes, Inc.
Developer: Tom Kaut
This investment company was created to develop and uild single family residential
home lots. This entity is well known for purchasi and b 'Iding Country Club Estates
Parts 2 & 3, a $3.6 million Iowa City residential ousing de elopment of over 53 lots.
KW Custom Homes, Inc. has built over 60 he s in the Iowa iiy area since 2004.
Westgate Villas
Developer: Tom Kaut
This $4.5 million, 37 -unit luxury cond development located on the st side of Iowa
City. Tom Kaut was able to sellout is development within one ye ar. a project was
done in coordination with Steve K Ii.
TC Investments
Developer: Tom /Kaut
Tom Kaut is the P TC Investmen ts, LC. Based on a strong work ethic a d the
purpose of buildilio of income producing properties. Created for acq 'ring
investment prope term holding periods and investing in residential & m Iti-
family developme estments has a portfolio of 52 rental units.
CRAUNCEY GARDENS, LLC- 21
Featured`Projects
172 Waterfront Drive, Hy -Vee Food Store Re evelopment, Iowa City
Deve er: Blackhawk Partners, John Rum elhart Principal, Member Manager
A large, 4 -acre redevelopment and rezoni project. The scope encompasses
successfu and acquisition, zoning changes nd large scale negotiations with clients
and the City.
1419.1423 Wate ont Drive, Iowa C' (formerly Contractors Tool & Supply)
Developer: Black wk Partners, J n Rummelhart Principal, Member Manager
current site of Bochn Chocolates John oversaw the acquisition of the site, and the
planning and constructi n of this 9,000 sf building. Energy efficient features include
specialty block constructi and n -floor heating. The natural gas usage for the entire
building for first complete y r f occupation was under $1,200. (1997 -1998)
425 Highway 6 East, Office o, f +Aohdvance Auto, Iowa City
Developer: Blackhawk P rtne John Rummelhart Principal, Member Manager
Redevelopment of Office epot a \
aconstruction
vance Auto Parts, who were current tenants.
Work included planning build -out supervision with multiple - national
tenants.
John Rummelha roperties
Developer: Joh Rummelhart
A multi - family r I estate holding company. Pr ernes include a mix of single family,
multi - family, a d historic multi - family houses and artments.
Pnvate Developer for Grollege SUGilbert St. Northeast Corner > City of Iowa City > September 28, 2012
y;
Featured Projects
Wagner Management, LLC
Developer: George Wagner, Principal, Mem Manager
Aproperty management company formed and ope led to acquire, improve a provide
quality, desirable housing units for the Iowa City BD rental unit mark . Portfolio
maintains over 25 -year history of long -term holding a successful oper ions. Mix of
single - family homes and duplex units.
Goosetown Rentals, LLC
Developer: George Wagner, Principal, Member Manag\
r-qeApropertymanagementcompanyformedandoperatedtoaprove and provide
quality, desirable housing for the Iowa City NODO (North rental unit market.
Portfolio goal is long -term holding and progressive reputati quality operations.
Mix of single - family homes and duplex units.
Wagner FLP
Developer: George Wagner, Principal
A farming operations partnership enterprise forme to nally anage and
acquire agricultural land in Iowa. The partnership p rsues al and fessional
hands -on approach, with proven results of meetin goals aves in to s of land
stewardship, profitable production, accurate a unting ty commu ' tions
with tenant farmers.
CHAUNCEY GARDENS, LLC- 22
Featured Projects
1
Plaza Towers, Iowa City, Iowa
Developer: The Moen Group
Neumann Monson Architects designed this 210,000 s/
ovide -
use facility to take
advantage of the city's maximum allowable height limit to dramatic views from
tha,living quarters. The project include with generou balconies and roof terraces
for utdoor living. Commercial space includes a oceryJrestaurant, a hotel and
confer nce center, and office space. Residential ptions range from rentable loft
spaces, condominiums, to multi -level penthouse . Private parking is available below
the building and a surface lot to the south provi es parking for grocery customers. A
climate -cont Iled arcade space is located di ctly off of the grocery and lobby and
engages with t adjacent pedestrian mall. he project was built for $24,000,000.
Contact: Marc en, 319.351.3900
Whiteway 2000 Bull 'ng, Iowa
Developer: The Moen roup
With a limited budget and nstrl
create an alternative to the t
story structure, consisting o
street level, replaces a h' oric
1999. The $2,859,064 ulding
Contact: Marc Mo , 319.351.:
IGrtion period, Neumann Monson was commissioned to
il student apartment building in Iowa City. The seven -
single occupant apartment units with a restaurant at
ree -story building that burned down in the spring of
vv4 completed in 2000.
VDeoper: nd, Coralville, Iowa
Hodge Construction
n Monson Architects designed this proje t located in Coralville's Iowa River
District. The overall River Bend portion wi eventually be comprised of three
separate and similar stand -alone sub - projects. The pr 'ect is a mixed -use development
consisting of partial residential, commercial and below g de parking for residents. The
Iowa River is to the east of the development and offers a aordinary views of the River
and Peninsula. There area total of 44 residential units r Bing from 500 at studios
to 1500 sf three - bedroom units. Each unit is unique. Com rdal spaces below are
intended for office, retail and restaurant use. The 78,000 sf stru ure was completed in
2007 for $12,000,000.
Contact: Kevin Digmann, 319.631.0548
Private D per for College SUGilbed St. Northeast Caner > Oty of ]me Clty> September 28, 2012
i
city
ENS, LLC - 25
Pro
We anticip;
Uses of F
Purchase
Design, ei
Direct cor
Other indi
Total
Anticipat
Conventic
City Gap i
Owner eq
Total anti
P6vate Develo;
HlTj Bank
an T st Company
19, 2012
Thomas Kaut Jesse Allen
3551 Donegal C urt
Iowa City, IA 52N6
Dear Tom and Jesse:
1009 2nd Street
Coralville, IA 52241
319- 351 -8000
This letter shall serve as a 1 ter cf credit ref ence to confirm years of satisfactory
performance that Hills Rank d Trust Co pany has experienced with each of you in
providing both construction an
Xh&srequested.
nt financing.
We understand that you are looject within the city limits of Iowa City and
that a letter of credit reference Should this project proceed, we
would be happy to review the lated loan requests. While we are not yet in a
position to grant a binding loan t, we appreciate your giving us this
opportunity.
Please consider this as our n
Thank you for your ongoing
services in the future.
Sincerely,
Tim D. Finer
Senior Vice I
ette f Interest to work with you on this project.
and thX opportunity to providing you additional
Hills • Iowa City • Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion • Wellman
hillsbank -corn 1. 800445 -5725
Hills Bank
and Trust Company
September 28,
Jesse Allen
Allen Homes. Inc.
3704 Lower West Branch
Iowa City, IA 52244 -3474
Dear Jesse:
This letter shall serve as a letter ofA
performance that Hills Bank and Ti
both construction and development
We understand that you are looking at a
that a letter of credit reference has been
would be happy to review the project
position to grant a binding loan com ti
opportunity.
Please consider this as our n
Thank you for your ongoing
service in the future.
Sincerely,
eremy M. Provin
Commercial Banking
JMPfay
1401 S. Gilbert Street
Iowa City, Iowa 52240
319 -338 -1277
e to confirm years of satisfactory
has experienced with you in providing
within the city limits of Iowa City and
xi. Should this project proceed, we
J loan requests. While we are not yet in a
appreciate your giving us this
Letter of lm rest to work with you on this project.
p and the opportunity to providing you additional
Hills - 14a Coy • Coralville • North Liberty - Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion
www.hillsbank.com 1-800- 445-5725
MidWest is
Bank
September 182012
Tom Kaut
do Lepic- Kroeger, F
2346 Mormon Trek:
Iowa City, IA 52246
Re: Letter of Interest and
Dear Tom:
I'm glad to provide this letter of ii
City of Iowa City request for form
Gilbert Streets. I believe you will
the attractiveness of the greater do
While this is not meant to serve as a fin
project, we'd gladly work with you and
on for City of Iowa Cifi project RFP
to work with yoy and potential partner(s) on the
x)sal at the no east corner of College and
e to offer a v y nice final project that will add to
at Iowa City
to lend on the proposed
on it.
MidWestOne Bank has enjoyed a great worki4v relationship with you on personal
banking as well as construction and developn#N projects since 2008. Just as one of our
bank's operating principles notes, you have alWaXs conducted yourself with the utmost
integrity. You and your companies are valu d, cr itworthy, and respected clients of this
bank.
Please let roe know if you or anyone else irlated to this1equest has any other questions.
I'd be glad to help you with them. / \
Sincere 47
64V )/
Jerr, Waddilove
Vice President, RegiontCred'Officcr
MidWestOne Bank
MORMON TREK BLVD, IOWA CITY, IOWA 52246 • TELEPHONE: (319) 341 -2144
September 27, 2012
Thomas Kaut R Jesse Allen
3551 Donegal Court
Iowa City, IA 52246
Dear Tom and Jesse:
This will confirm the University of Iowa Community CredkUnion (UICCU) has been in discussions regarding
financing for your proposal located at the comer of Gilbert Street and College Street. Subject to underwriting and
credit approval, the UICCU would be interested in working %' nth you further on this project should the project
proceed. Thank you for the opportunity and we look forward to vyorking with you in the near future.
If you have any further questions, feel free to contact me at 319 - 343074 or swilson @uiiccu.org.
Sincerely,
Z
tt ikon
S . Vice President
ommercial Services
IOWA AVENUE MORMON TREK TOWNCREST CORALVILLF GRINNELL
319. 339 -1000 319-339 -1002 319- 339 -1030 319- 339 -1020 641- 236 -8822
Great Western Bank*
making Life Great`
September 25, 2012
City of Iowa City
Attn: John Yapp
Iowa City, IA 52240
RE: Chauncey Gardens
Dear Mr. Yapp,
Great Western Bank has been in conversation with'.
development of the corner of College and Gilbert St
Kaut and George Wagner. Based on our original cor
interest in working with this group to finance a new
that would complete the project successfully.
We understand that the Iowa City is in the early
be a part of the solution for any anticipated pro,
Sinceerr1 /el
Melissa D. Schooley
Sr. Vice President, Commercial Bank
m
nelhart, Jr in regards to the re-
i intends to partner with Jesse Allen, Tom
Great Western Bank would have an
They bring together a good group of skills
for this corner of Iowa City. We hope to
GreatWesternBank.com
A7Croft
Services ofAmd6a
1CULTURE WORKS HERE._
SEPTEMBER 26, 2012
TO: WHOM IT MAY
RE: JOHN R, RUMMELHART, JR.
1112 E. COURT ST.
IOWA CITY, IOWA 52240
JOHN HAS BEEN DOING BUSINESS WITH FARM
DURING TH15 TIME HIS REPAYMENT HISTORY
SINCERELY,
FARM CREDIT SERVICES OF
DAN TAIBER
FINANCIAL OFFICER
SERVICES OF AMERICA FOR OVER 12 YEARS.
EXCELLENT".
TM
A Division
Sept 27, 2012
Tom Kaut
c/o Lepic- Kroeger Realtors
2346 Mormon Trek Blvd
Iowa City, IA 52246
State Bank
RE: Letter of Interest for City of Iowa City
Dear Tom:
This letter serves as an interest to work with you a your business partner(s) on the City of Iowa City
request for proposal at the NE corner of College Od kilbert Streets.
This is not a formal commitment letter as we #ould nee to underwrite and perform due diligence on
the proposed project. With that being said, # are famiha with your recent construction projects and
would be supportive of meeting with you d reviewing the rejections and financials on the subject
project.
I can be reached at 319 -625 -2050 to djoicuss further.
Sincerely,
Steve Crane
Corridor State Bank -Mark President
www.corridorstatebank.com
2530 Corridor Wray • Comlville, Iowa 52241
Phone: (319) 625 -2050 • Toll Free: (866) 625 -2050 • Fax: (319) 625 -2058 LENDER
Private Developer for
scription
CHAUNCEY GARDENS, LLC- 35
Project oncept
owa City has a strong tradition of creating sl
work, and play. We believe in the power
the ity by creating a sense of ownership ant
parks, ardens, and street level amenities ar
such a 'verse and pedestrian- oriented citycommunitasoectstocreateadestinationor
e al places for the entire community to
o public spaces to enhance the fabric of
motional investment in ourtown. Our
among those things that make Iowa City
ur development goal is to focus on these
the whole community to experience.
With close pr 'mity to our very acliv downtown, and recognizing the project site's
immediate conl with City Hall an he community recreation center, we have the
unique opportunit to create new mmunal intersections. By weaving this street
level activity in and ound the sit ,and up through the building, we can create a truly
community -based dev opment Amenities such as park space, community gardens,
amphitheaters and mar t sp ce will serve as a backdrop throughout the landscape
and building to activate t commercial and residential tenant environments. This
project recognizes its role preserving a place for the community, and incorporates
design strategies that a co unal and community- oriented. For those who inhabit
the building, this is bot their ho a and their neighborhood.
Community thrives n connectivity,N
will interweave thq&e tenants into all
is not only a mu i -use building for do
place into the Vpe of destination that
ness, and diversity. Chauncey Gardens
of its design. Our development proposal
but a vision to integrate community and
ra City can provide.
This projec will provide a variety of housing ptions
income g up in which lower and high priced ome
create vibrant, authentic, and sustainable com ur
City s conomic Development Policies and the Do
Dev opment is the catalyst for retail expansion in c
an mportant development mix that w ll contr bute to
mmercial services .
Pmate Developer for 4ege SUGilbert St. Northeast Comer> City of Iowa City> September 28, 2012
that meet the needs of varying
blend seamlessly. This helps
ty, which is consistent with the
own Strategic Plan. Residential
wntown Iowa City. Housing is
gmand for local neighborhood
A Continuation of the
Conceptual Drawings
uuncaySwanFark
With the park at one d of the pedestrian corridor, the site becomes a "collector" oint for people moving
to and from the Ped trian Mall.
CHAUNCEY GARDENS, LLC- 37
PeileStriaiiMall INga 9daat
O
ca
Butlmprow 5batl
With the park at one d of the pedestrian corridor, the site becomes a "collector" oint for people moving
to and from the Ped trian Mall.
CHAUNCEY GARDENS, LLC- 37
Conceptual Drawings
Public Space serves as
The proposed site at College and
use. This proximity presents n
community functions.
QoRs ry4
c titer. < a
nestled between three public buildin s for civic and community
opportunities to link this mixed -use 4velopment to city and
Northeast Comer> City of Iowa City> September 28, 2012
She Design and Building
Conce
Site Concerns
Chauncey Swan
Deliveries off Co
Grocery is align
Grocery has on y
al Drawings
Residential
Commercial
Service/Deli"ties
ii
Grocery
Paiking (Below Grade)
k will be in shadow most of the year
ge Street are directly adjacent to Parking Ramp Entry
i one block away from competing downtown grocery store
two street - facing storefronts
CHAUNCEY GARDENS, LLC- 39
Con ptual Drawings
Constructlon and Staal In Park
Construction crews will requ
significantly damage the exi;
staging area in Chauncey Swan Park.
park space.
St. Northeast Caner > City of Iowa City> September 28. 2012
Residential
yy.VIIIpIM'O a.
Wnoery
Pwkiny 16Now tirade)
has the potential to
Shift Building lo North
Flipping the building
relocated park creat
Center.
CoJnceptual Drawings
Residential
Commercial
SenAcetDelivery
Grocery
Parking (Below Grade)
i 17l
c "New" Chauncey Swan Park
the park allows ample sunlight to reach the pubic green space year- round. The
convenient adjacency between the public park an the Robert A. Lee Recreation
U-C - 41
Concep ual Drawings
Park extends through the
Residential
Commercial
Gr
Pedest an Bridges to
Porki Ramp
i
Parking up om of
rloodplam
Below G, ado)
By raising the ground plane upward
j
i
i i
rrd the building, the park meets the
Private Developer for College St.lGilbe/St. Northeast Corner> City of Iowa City > September 28, 2012
lobby level on grade.
FEV
k
CHAUNCEY GARDENS, U-C - 43
D
Park embrac
Sculpting tl
Private Developer for College SUGilbert St. Northeast Comer> City of Iowa City > September 28, 2012
space.
Cc
awings
errace can be
re comfortable
for the rooftop
VCEY GARDENS, LLC- "
C
I'vl.l v_<<een Spin e 1Ex„I m;i
Private Developer for College er> City of [me City > September 28, 2012
Public C?racn SPacc)NC' )
I IA F
Transportation
The use of the site er
ramp users easy ac
enhance our already
Conceptual
Public Parking
Parking
Bus Stop / ••
sustainable transportation
Ito a Gilbert Street bus stop. Bike parking
friendly city.
Drawings
Bicycle Parking
through the park give parking
d in and around the site will
CHAUNCEY GARDENS, U.C- 47
Conceptoal Drawings
Sustainability Principles
PPPP-P
0
I Pavers ..
Geothermal
The building and site are w
Passive Solar Heating
Photovoltaic Panels to c
Maximized Green Space
Geothermal Wells for re
Pervious Pavers arouni
Underground Rainwat r
r
to utilize multiple sustainability
re a green energy
reduce Heat Island Effect
ced heating loads
building to reduce runoff
Collection for irrigation.
Pnvate Developer for College SUGiiXert St. Northeast Comer> City of Iowa City> September 2$ 2012
Panels
Pack n Amphhhestm
Con
a
ptual Drawings
The park slopes in ry(ultiple directions, creating amphitheaters of scales and intimacy.
CKAUNCEY GARDENS, LLC - 48
Conceptol Drawings
Park for Farmer's MarketfC{ty
y
r
The park can serve as an ext sion of Iowa City's vibrant Farmer's Market. Th site also provides space
for Summer of the Arts event .
Private Developer for Coll LfGilberlSt. Northeast Corner >City of Iowa City >September28, 2012
Construction Phasing
1
t i
1 1
1 t
1 i
t 1
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Tower
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The park would be phased
being constructed. The city
of the tower. /
Conceptual Drawings
1
New" Chauncey SW an Park
Complete Fall 3713
early completion in order to be turned
uld be able to utilize the park and unde
to the city while the tower is
rking during the construction
CHAUNCEY GARDENS, LLC- 91
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Retail,
Nvale Developer for College SUGilbert St, Northeast Corner> City of Ima City > September 28, 2012
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Private Developer for College St.(Gilbert StJSatheast Comer> City of Iowa City > September 28, 2012
Raciriantini Ampnitip . Level 5
CHAUNCEY GARDENS, LLC- $1
Residen
Private Developer for College
hvI 11 -14
JCEY GARDENS, LLC - 93
Plan -
EY GARDENS, LLC - "
Project Areo Summary
LEVEL O LEV S 6 - 10
CIRCULATION 895 CIRCULATION 953
PARKING (62 SPACES) 17,135 RESIDENTIAL 5,441
STORAGE 1,375 BALCONY/TERRACE 1,064
TOTAL 19,405
TOTAL/ FLOOR 7,458
TOTAL (5 FLOORS) 37,290
LEVEL 1
CIRCULATION 1, 88 LEVELS 11 — 14
GROCERY 21, CIRCULATION 953
TOTAL 22.0 RESIDENTIAL 5,236
BALCONY/TERRACE 1,269
LEVEL2
CIRCULATION 448 TOTAL/ FLOOR 7,458
RETAIL 7,580 TOTAL (4 FLOORS) 29,832
TOTAL 8,028
LEVELS 15 -16
CIRCULATION 953
LEVELS 3 - 4 RESIDENTIAL 5,126
CIRCULATION 393 BALCONY/TERRACE 1,376
OFFICE / COMMERCIAL 14,035
TOTAL/ FLOOR 7,458
TOTAU FLOOR 14,428 TOTAL (2 FLOORS) 14,916
TOTAL (2 FLOORS) 28,856
LEVELS 17 -18
LEVEL 5 CIRCULATION 471
CIRCULATION 39 RESIDENTIAL 1,581
RESIDENT AMENITIES 5,34 BALCONY /TERRACE 3,309
BALCONYITERRACE 8,6 0 VNNE GARDEN/ RETAIL 2,097
TOTAL 14, 28 TOTAL 7,458
RAND TOTAL 182,301
St. Nwtheest Comer> City of love Clty> September 28, 2012
GROCERY20
m
a 16, sr 9
CHAUNCEY GARDENS, U-C- 71
in & Financing
CHAUNCEY GARDENS, LLC- 73
Organization'4 Management /Approach
Once the ity of Iowa City has con luded the developer selection process and
a Develop nt Agreement has been xecuted, we will meet with City of Iowa City,
New Pioneer Coop and associated mmunity groups to receive feedback on the
project design nd listen to concern regarding any potential disruption during building
construction. Th feedback provide during design development will be considered by
the Design Team hile completin the overall building design and development of the
documents. In dev oping our sit logistics, our construction team will meet with local
business owners, th City of to a City and other neighborhood groups to develop a
plan to minimize the i pact of construction to them and the neighborhood. Particular
consideration will be foc ed maintaining the availability of Washington Street forthe
Iowa City Farmer's Mark a d minimizing disruption to their operations.
Concurrent with the desig rk, the construction team will be reviewing constructability
of the building compon ts, evelop a procurement plan to identify long lead and
locally produced items, urce otential sustainable products to be incorporated and
develop and finalize t e site logi tics. Further, to maximize the opportunities for local
subcontractors and Ilization of to I labor, the construction team will meet with local
and corridor const ction companie to alert them of upcoming bid opportunities and
the current constr lion schedule.
Construction of he project is anticipat to commence in October 2013 based on
Development eam selection this Fall an overall design development. Placement of
the residenti / offce tower on the Chaunce Swan Park site will minimize disruption of
pedestrian d vehicular traffic on College St at and Gilbert Street during construction.
The locati of the building footprint set back om Washington Street will provide for
existin '
n phasing and material storage wit ' the project site and not within the
eels. Our plan anticipates placement o a tower crane on east edge of the
ark site between the new residential /offs tower and the existing Chauncey
rking Ramp. A temporary construction me material elevator will be placed
project site off Washington Street on the n rth side of the residential /office
h a temporary construction loading dock. C struction deliveries will enter
he construction site via a gate onto Washingto Street. An overhead canopy
vided where required to protection pedestrian ffic adjacent to the project
site. Safety of both the public and construction employ es will be stressed during
construction and we will enter an agreement with OSH for a safety consultation
program on the project.
Private Developer for College SUGilbert St. Northeast Comer> City of Ifta City > September 28, 2012
Organization & Management Approach
Construction of the project is a ticip
to complete. We intend to mo ili'2
Food Co -op site and the existing
the newly located Chauncey Swa
grade parking is anticipated to take
of 2014. Construction of the New P
concurrent to the new park constru
by building use including the New
the residential tower.
ed to begin in Octobi
and begin construct
uncey Swan Park si
ark at the comer of t
months and be read
er store and rest
a phased occuD
r store, the kff
The construction management team will be
daily management of the construction activitie
Our team will lead regular status meetings with
well as monthly meetings with adjacent user g
will provide and maintain site security during c
Farmer's Market and public events at the new C
will also install and maintain a public access w)
2 113 and require 24 months
on both the New Pioneer
Itaneously. Construction of
Alege and Gilbert and below
for public use in the summer
itial/office tower will proceed
cy of the tower is anticipated
elrestaurant areas and then
r on site and be responsible for the
uding internal project safety audits.
City of Iowa City representatives as
is and neighborhood residents. We
i`unity events particularly during the
tcey Swan Park once it is open. We
to monitor construction progress.
CHAUNCEY GARDENS, LLC- 75
Pmete Developer W C
Scheduye for Completion
Chauncey Gardens, LLC is ready to gin the architectural design p cess immediately
upon selection as the developer. T schematic design proce s will begin with a
collaborative "kick -off" meeting with th City of Iowa City and eighbors to receive
feedback on the proposal, project goals, rogram, and timeline The developers are
open to all ideas and public input to ensu a successful proj t. This is expected to
be a two month process culminating with a hematic design esentation to the City.
Over the next eight months the project will p re throng design and construction
documents with periodic submissions to the City f Iowa Cit for review and comments.
Final plans, specifications will be submitted for re 'ew on ptember 17, 2013.
Construction will focus on completing the undergr n parking and new Chauncey
Swan Park during the first 8 months. Parking can b sect by the developer and the
new Chauncey Swan Park can be turned over to the 11h and opened to the public.
Building construction of the shell and tenant fit -out i petted to lake 2 years with
occupancy of condominium units beginning fall of 20 5.
A proposed project schedule appears on the next
CHAUNCEY GARDENS, LLC - 77
MidAmerica Energy Prope
Chaunce Gardens, l-C intends to p
located on a southeast corner of the s
The substali occupies an important
Park. From a aesthetic, functional
be removed. T properly will be u
completing the visl n shown in the pr
ase the MidAmerican Energy Substation,
subject to acceptable terms for both parties.
ner of the proposed new Chauncey Swan
safety point of view the substation should
for parking below with park space above,
The decision to loca the propos d building on the north side of the block allows
the design and constr ti on to be in independent of the purchase of the substation
property. This removes he 9 -1 month lead time for removal and relocation of the
substation from the critical ath the overall project schedule.
Prrvale Developer for College SUGilbert St. Northeast Corner > Cily of Iowa City > September 28, 2012
Geoeral Financing Plan
This project is designed to fit wit ' the financial capacity o the Chauncey Gardens,
LLC with personal commitments f the officers /principals to the equity required by
the lenders. The scale of the project \
thCommunity
to a level t t is financially achievable
by the Developer by marketing the spaces a d Class A office space to
local businesses, and partnering witunity De elopment Planners & Iowa
City Housing Fellowship for the sale he reside tial units. These residential
units increase the likelihood of succee Devel per and the City of Iowa City.
Discussion with lenders has already erman t financing as indicated with
the following letters of interest.
CHAUNCEY GARDENS, LLC- 81
Letter of Intent for Mixed Use Project
This Letter of Intent pertaining to a mixed use development Project is
2012 by an behveenG'ay.H r NS( "Developer ") and New Pio:
Pion ).
Recitals
I into on q`'LS ,
Cooperative Society
A. New Pionee is a cooperative association formed under a laws of the state of Iowa
presently operating cery stores in Iowa City and Coralville, wa. New Pioneer is interested
in expanding and relo g its Iowa City retail business ope 'ons to an alternate facility that
better serves New Pionee its members and the community. ow Pioneer is aware of the City of
Iowa City's interest in se 'ng requests for proposals fora roject to be built at the northeast
quadrant of the intersectio of College and Gilbert Stree in downtown Iowa City ( "Site ").
Subject to the requisite appr vals of its membership apt Board of Directors, New Pioneer is
interested in pursuing the Site a a possible location for i relocated business activities.
B. Developer is a ' develope .of real estate pr
developing a multi -use commercia eshdentiai project
of Iowa City ("City") completes rm ublishes its R
contemplating submitting a proposal or the acqu
Project. /
C. New Pioneer is interested in being
desires having New Pioneer be an occupant
enhances the feasibility of the Project.
D. , The parties wish to enter into
parameters for their continuing discussie
proposed occupant of the Project in com
the City, and ultimately for the parties
construction, fixturing, occupation, use#
ts and has indicated an interest in
the Site (tho `Project "). Once the City
st for Proposals ("RFP" ); Developer is
r of the Site for development of the
part of the Developer's Project, and the Developer
e Project, believing New Pioneer's participation
on- inding letter of intent to express the basic
d no otiations for New Pioneer to be included as a
lion wi the Developer's proposal to be submitted to
enter int a contract for New Pioneer's acquisition,
operation a portion of the Developer's Project.
1. Participants. Developer into s to submit a timely Pu eet proposal to the City in response
to the City's anticipated RFP. D veloper further intends o being the principal developer and
owner of the Project, most likel through one or more develo meat entities that Developer may
form. The parties recognize t at a Project of this size may require additional investors and
financing through one or mor sources. Additionally, the parties fecognize that thus Project will
require the involvement of ultiple professional consultants and participants such as architects,
engineers and other desi i consultants; accountants and lawyers; financial institutions; a
contractor; and various p ential investors. Developer agrees to keep New Pioneer advised of the
key participants to be in olved in the design, construction and financing of the Project, as well as
principal investors ther in. \
2. The Project. As presently conceptualized, the Project 'll involve one level of underground
parking; retail (New Pioneer) on the first floor level; two to four floors of office commercial; and
three to six floors of residential. It is anticipated that the bu ]ding will be appropriately separated
into condominiums to allow the entire'first floor, inclu ing mezzanine if required, to be a
separate unit to be acquired by New Pioneer, with then spaces in the building to be
condominiumized as the Developer may deem appropriat for either sale or leasing. The Project
will be built on three parcels now owned by the City ay well as an additional parcel presently
owned by M1dAmerican Energy Company. The land is docribed as follows:
Lots Five and Six, Block 43, of the
The property exci des the alleyway along its north
adjacent to a City plit-king facility along its east props
3. Project Conting6peies. Tlie parties acknc
matters that constitute donlingencies that must be
a. The Developer sut
contain elements
financing and/or of
b. Acquisition of the
covenants and/or n
c. Acquisition of Mi(
Town of Iowa City, Iowa.
and the property is immediately
line,
that the following tie among various
I for the Project to proceed:
ing a proposal thaf is accepted by tine City, such proposal to likely
the City's fins ial support, such as reduced land cost, TIF
portion of a site under terms and conditions (mice and any
any covenants and/or restri t
d. Rezoning of the parcel as to
and multi - family residential)
e. City site plan and buildnng
acceptable to the Developer i
tlnle to Developer and New Pioneer.
on of the site under terms and conditions (price and
ceptable to Developer and New Pioneer.
quired for the anticipated uses (grocery/retail; office;
the Project.
approval of the Project under terms and conditions
v pioneer.
In addition to the foregoing gener thresh ld contingencies, the Developer will also have usual
and customary Project feasibility consider ions before its final decision to proceed with the
Project, including requirements d conditio that may be imposed by the Project's hnvestors
and lenders. As such, the Prole t will be conditioned upon feasibility based on Project costs as
well as feral financing arrange ents, all to be acceptablc to Developer.
4. Purchase Agreement- The Developer atri New Pioneer anticipate continuing their
discussions and negotiation in working to a uto lily acceptable purchase agreement and
related documen/
theurchase
ase Agreement's contai 'ng final terms and conditions for New
Pioneer's purchasdominium unit on the gro d floor of the Project, built out to a level
of finish defined ihase Agreement. The Purch e Agreement will provide substa ntially
more details than contained in this Letter of Int t with regard to time frame, costs and
contract continges Letter of hrtent expresses the arties' current intentions in general
terms for the purpviding a base for continuing dis ssions, negotiations, refinement of
Project details, an y's more specific requirements.
2
CHAUNCEY GARDENS, LLC- 83
Prior to entering into the Purchase Agreement it is anticipated th t Developer will have waived
most if not all general and financial feasibility contingencies for oceeding with the Project, and
shall also be able to demonstrate such financial capacity as will b necessary to fully perform the
Project, wheiher through performance bonds, bank letters of credit or through other means
satisfactory to*ew Pioneer.
5. New Pionee 's Conditions and Contingencies. In order for New Pionecr to proceed with
any commitment participate in the Project, it will have tort ' requirements including, but not
necessarily limited o, those in fire following categories. Onl preliminary specifications o£ these
conditions and contt gencies are set forth below, wIuch are xpected to be refined and modified
as the parties get clos r to implementing a Purchase Agree nt.
A. Approvals.\ New Pioneer's proceeding with s Project requires membership and
Board approvals. New pioneer has obtained membershi approval for entering into a purchase
agreement. Additional Bo approval will need to be tained at various phases of the Project
including, but not limited t approval of the Purchase greement and satisfaction and/or waiver
of contingencies that may be •eserved in the Purchase greemeut.
B. Plans and S ecifieati ns. Final pla and specifications for the configuration,
construction and shell build -oti of New Pioneer s space within the Project will need to be
incorporated into the Purchase A-eement likely s an exhibit describing the intended condition
of the property at the time of osing and ansfer of possession. Developer, through its
contractors, will construct the build g and fit ut the New Pioneer space to "Shell" condition
according to such plans and specificattt ns as ay be modified from time to time by agreement of
the parties and /or through a change or r p cess. Subject to final plans and specifications, the
currently anticipated general features of uild -out of New Pioneer's space within the Project
to "Shell" condition, are as follows:
Shell Description
eh
ted that the ew Pion condouunuan unit will be 100% complete on
r of the b ding less si age, and that the interior of the shell includes
ing:
foot cle height to the and ide of the structure
crete oor that is hard steel oweled
osed oncrete columns, beams and ceiling structure - unpainted
visi ns underfloor including ro -ins for refrigeration
vi ons for sanitary connections
nterior side of the exterior walls ill include insulation and vapor
er only, ready for sheetrock
gh -in provisions for a kitchen hood
ctrical service capacity for 1,200 AMPS
chanical, Plumbing, Electrical, and Fire Protection Systems and IT
astructure will be installed by New Pioneer in such a way tbat they are
ependently metered systems
The entire build -out of the New Pioneer space in the Project from "Shell" to finished condition
will be completed by New Pioneer and/or its contractors.
i
C. dominium Purchase Price. The final purchase price for the New Pioneer
condominium nit shall be subject to New Pioneer's and Developer's/agreement.
It is anti 'pated that the purchase price will be
leloper's
d based on the "Developer's
Cost" for the N Pioneer condominium unit built -o In condition. The specific
mechanism and/or rmula for determining the Developerill be subject to the agreement
of Developer and N Pioneer and specified in the Purchement. T he Developer's Cost
will be based on design uild pricing and bidding, includiactor's percentage acceptable
to Developer and New ' neer. The possibility of a Develofit or fee is to be negotiated,
with any such an t t miglrt be included in the Ds Cost to be subject to New
Pioneer's approval. The m tho d of detennhting and v abor and material costs, and
allocating Urose to New Pfo eer's condominium unit, vill also be subject to New Pioneer's
approval. New Pioneer antieip es drat Developer will locate to the purchase price an equitable
portion of the Developer's Prcj t costs for land acqui ition, construction financing, construction
period insurance, constroction enod property ax, design, and construction, plus the
Developer's design and constru ion costs an fees of building out die New Pioneer
condominium unit "Shell" to the proved pla s and specifications, but exclude from the
purchase price any marketing expense nd sales otnmissions, and also exclude any Developer's
profit or fees except those subject to apl#val in New Pioneer. It is anticipated New Pioneer's
purchase price will include an equitabl o on of the costs of the common elements of the
building that benefit or serve the New eer unit, but will exclude any costs for common
elements that provide no benefit or are not ed by the New Pioneer unit. All such costs shall be
established in a manner that is accel bl to ew Pioneer, shall be within a maximum cost that
will be specified in the Pmchase Agr cot, nd will be subject to reasonable verification by
New Pioneer (or its agent Loeffler Co struction Consulting). Payment by New Pioneer for its
completed condorinium "Shell" un' shall be at ne time of closing and transfer of possession,
with eamest money to be negotiat and specified the Purchase Agreement.
New Pioneer and Developer ea acknowledge drat it's diffidult to accurately estimate the total
Project cost and the cost of th ow Pioneer space com leted to "Shell" condition at the time of
responding to the City's RFP Nevertheless, given in ation available as of the date of the
execution of this Letter of tent, New Pioneer and Devel er acknowledge that $120 per square
foot of useable space is a bed faith estimate of the "hard nstruction cost" for the "Shell", with
the actual "Developer's osC' to be subsequently specified' the Purchase Agreement or
otherwise by written a -cement of New Pioneer and Develop . The "hard construction cost"
excludes "soft costs" uch as land costs and architect fees, Thee additional costs, when known
with accuracy, sha a equitably allocated between New Pionceh and the Developer, in a manner
that is subsequen agreed to in writing by both parties.
D. nancing Contingency. New Pioneer's purebase subject to receiving a
commitment for financing its condominium unit upon such termsitd conditions as may be
acceptable Now Pioneer in its sole determination. This financing colntingency will either be
4
CHAUNCEY GARDENS, LLC- 85
waived before entering into the Purchase Agreement or resorved in the Purchase Agreement with
a requirement for satisfaction or waiver before Developcf commences New Pioneer's specific
E. Public' Support. To the extent that the De eloper is able to obtain TCP financing
and/or oth benefits through the City as an incentive t proceed with the Project, New Pioneer
anticipates riving an equitable allocation of such enefit to reduce the costs of the New
Pioneer portio of the Project, because the city is very interested in the development having a
occupant such a New Pioneer in the project.
N. De i nd Construction. The general d ign and configuration of the Project will
need to be compa le with New Pioneer's inte ded use of the first floor, and otherwise
acceptable by New ioneer in its detenninatioT. Such consideration will include, but not
necessarily be limited t , the following:
ii.
iv.
V.
vi.
vii.
viii.
ix.
X.
xi.
xii.
Locations 6f entrances and exits
Arrangemed s for deliveries, loa
Specified U i 'ties, electrical ser
Exterior and interior design an '
UVAC systems ith separate p
Electrical Service steps
Separate gas, water, 61
LEED design and imp
Elevator service for be
crash, composting and
Parking innnediately a
G. Project Personnel, Key
Pioneer, including the arehitec
subcontractors and possibly others
11. Parkin . New P'
the City, satisfactory to New
from the adjacent parking i
available for New Pioneer'
responsible for negotiating
resolved, if possible, befo
the Purchase Agreement.
providing a condor
Pioneer anticipates
general and limited
that are for the ex
some, but not a ,
s and trash storage
service, mccharucal and plumbing
from remainder of building
t remainder of building
and other meters
floor and mezzanine
ing facilities
to the grocery entrance; 100 stalls
on the Project will need to be acceptable to New
Project manager, general contractor, key
ier's going fora
loner in its sole c
np as well as for
use within the a,
uch arrangements with the
entering into the Purchase
be contingent upon an agreement with
ration, with regard to pedestrian access
azking spaces to be made exclusively
arking ramp. New Pioneer will be
i>, with the intent to have such matters
erdement, but otherwise a condition of
ri Matters. New Pioneer's proceeding willIbc conditioned upon Developer
ii ium declaration that is acceptable to New'Pioneer in all respects. New
tat the condomiiritun declaration will carefi4y define all units and all
common elements, specifically setting forth those mited common elements
isive use of New Pioneer's unit; the exclusive use o New Pioneer's unit and
of the other rills; and the exclusive use of some f the other units but
excluding New Pioneer's unit. Additionally, the declaration will nei
common element maintenance, repair and replacement expenses, as
expenses, so that New Pioneer pays assessments only for those cc
operational expenses that relate to those aspects of the building
Pioneer's unit, and that New Pioneer is not paying for the expenses
one or moi' other units in the building. The process for assessments,
managenten owners association, voting, insurance and other condorr
to be accepts le to New Pioneer. The condominium declaration will
by New Pion r before entering into the Purchase Agreement or i
condition of th Purchase Agreement. Additionally, any rules in con
operation will ne to be compatible with New Pioneer's intended
to those that may a feet hours of operation or shipping and receiving
J. Basic Sna a Requirements. It is now anticipated
following space tequir ents within the Project:
i. Not less than
Nrothernonusabl
the sidewalks o
adjacent parkin
ii. Not less than 3,000
which will include
useable sq.ft. (net of stairs,
on the fast floor (street low
rt and College Streets, as we,
sq.fl, on a mes
meeting rooms,
room, etc.
iii. Not less than 600 useab sq.fi, 'of
parking level
iv. Loading clock access fiom llr
v. First floor climate contro e
approximately 2,000 useable able
part of, the 19,000 sq. ft.)
vi. Not less than 200 useable sq.
composting (may be combined
requirements are satisfactorily n
Street
to appropriately allocate
1 as building operational
ton elements and those
aj serve or benefit New
s ciated exclusively with
tAlding reserves, building
Own matters will all need
liter need to be approved
approval will become a
ction with the building's
including but not limited
New Pioneer will have the
1'evator shafts, utility shafts and
with direct pedestrian access to
as direct pedestrian access to the
or 2'"t floor for store operations
iee locker rooms and the server
room space in the lower
ay and space for exterior seating of
the north side of the building (in addition to,
lower parking level for trash, recycling and
other building users so long as New Pioneer's
6. Time Frame. The parties acknowl a that the roj
the Developer's Project is not going come to fr 'lie
New Pioneer may wish to pursue o er possible opp i
they shall proceed with the expect ion that the Project
during the 4rh calendar quarter o 014 through the 1$'
each party shall keep the oth timely advised of ai
materially affect the availabilit of the Project for such o
xt is still in an early phase. However, if
a within a reasonable time frame, then
unities. As such, the parties agree that
will be ready for occupancy some time
2id calendar quarters of 2015, and
y afters that might arise that could
7. Cooperation and Co ,dlnation. Unless negotiations discussions are terminated by
either party, it is anticip ed that the parties will coordinate eir plans and cooperate to the
extent reasonable in co ection with further developing plans fo the Project and specifically in
connection with resp ding to an RPP from the City. While veloper shall take the lead
responsibility for all uch matters, New Pioneer shall cooperate to fl extent of its desired space
6
CHAUNCEY GARDENS, LLC- 87
within the Project. New Pioneer is committed to be a part of the Developer's Project as the
Developer proceeds with his proposal and feasibility analysis, provided the Developer continues
to demonstrate a serious interest in pursuing the Project, continue , to assemble a team of
profession s, contractors and investors capable of fulfilling the roject, and articulates a
reasonable an for financing the Project. If at any time prior to uttering into the Purchase
Agreement lh Developer shall determine that this Project is no Ion r feasible, Developer shall
promptly notify ow Pioneer of such determination. Similarly, if at y time prior to entering the
Purchase Agee nt should New Pioneer determine that it no lon wishes to participate in the
Project or that De loper's progress on the Project is not satisf ctory, in New Pioneer's sole
determination, New 'oneer may indicate to Developer its election to tenrrinate negotiations and
discussions pertaining the Project.
New Pioneer will reason ly cooperate, on a non - exclusive basis, with Developer towards the
objective of the Developer proposal becoming the approver] proposal submitted to the City for
the development of the Site d for Developer to proceed -%vIth its Project which will incorporate
the condominium space for w Pioneer's ownership and.use. However, New Pioneer reserves
the option should there be, in w Pioneer's determination, other viable and timely projects, for
New Pioneer to work with a other party for a project on the Site or elsewhere that
appropriately and/or timely addres es New Pioneer's business needs.
8. Additional Office Space. Defor the Developer gbmrnits to selling or leasing space on the
second floor that would leave less than ,000 useable q.8. remaining, the Developer will contact
New Pioneer with regard to any interest or addition pl second floor office space. Tlus option for
additional office space is independent the 3,00 . useable sq.ft. on the mezzanine or second
floor for store operations as specified nr 5. (ii) aboie.
9. Confidentiality. New Pioneer and Develoj
other's plans, building designs, concepts, stral
estimates, financing, and other matters related
may have been or may be disclosed by o
discussions and negotiations related to thi
otherwise generally known (" Confiden al
Information of a party by di e
Information is being disclos
each acknowledge that if De
Developer's proposal is appr
the Purchase Agreement con
the Project Nvill likely be
disclosures, which shall be
provision shall survive in t
provision is intended to limi t
on a need to know basis, to
or other agents, in connec
discussions and negotiatiohs
ereby each agree to bold as confidential all the
of construction, financial circumstances, cost
party's potential participation in the Project as
ty to the other party in connection with the
of Intent and the Project, and that are not
r atiorf'). Any disclosure of Confidential
r the party whose Confidential
writing in advance. The parties
ty of Iowa City, and also if the
am Confidential Information and
arties as a part of implementing
es agree to cooperate in such
The parties further agree this
tter of Intent. Nothing in this
tial Information of the other,
I e der(s), attorneys, contractors
atio s relating to the continuing
other part shall only b made afte
ed has agr to such disc sure in
Do, nits a proposal the Ci
oved by he City, disclosure o cert '
tempi ed herein to specified th' d p
needs ary. In that event, the p
a ed to in writing in advanc
ire event of termination of this
party from disclosing the Confid
party's representatives, consultants,
n with its due diligence and invesdg
contemplated by this letter of Intent.
7
10. Non- Bfuding. This Letter of Intent does not constitute an agreement to negotiate, but solely
constitutes an outline of some of the terns for negotiation. The parties will in good faith
diligently pursue discussions and negotiations in an effort to come to and refine terms and
condition for final documents for each party's review and apprqh'al, some of which may be
multi -parij agreements. While this Letter of Intent is intended to pfovide the parties guidance in
pursuing n otiations and discussions, except for Paragraph
e9id
the next paragraph of this
Paragraph 1 it is not binding, and the terns of any final agr nt may be the same as, similar
to or different m the provisions of this Letter of Intent.
Arew Pioneer and eveloper each acknowledges and agrees at each is proceeding with its side
of negotiations at i sole cost and expense (which may inv ve substantial transaction costs) and
that either party ma terminate negotiations for any reaso , at any time, without any liability or
obligation to the oth . Further, neither party shall hav any legal rights or claims against the
other party by reason any action taken, statements Made, writings delivered or other matters
undertaken by a party r reliance upon this non -bi
d
ing Letter of Intent 'including, without
limitation, any expenditmr of funds, partial performiuice of transactions contemplated herein, or
any other actions of a party. /
This letter of intent shall be f no fiuther effect pon either i) the parties entering into final
agreements, or H) the terminati of discussions d negotiations between the parties pertaining
to the matters contained herein. a parties antic• ate that their discussions and negotiations will
be completed or terminated befo the expirati n of twelve months after the execution of this
Letter of Intent.
Develeper
New
Date
1tib11t
Ii
CHAUNCEY GARDENS, LLC- 89
sions with three other
office space. At this
Marketing Approach
Tom Kaut and Chaunce Gardens, LLC will utilize local contacts and the latest technologies to provide excellent
information, communicatio , and service for clients. This project will/be syndicated on several different websites
including www.tomkaut.com, .Iepickroeger.corn, www.realtor.co and www.trulia.com. Tom has been providing
professional real estate servi s for 20 years with over $,125 millio in real estate sales in the last 10 years. He
specializes in residential, invest ent property, new construction sal and development of multi - family and residential
real estate. In addition, Neuman Monson Architects will suppo marketing efforts by supplying print and digital
graphics. This will also include 3D p ysical models and 3D digital enderings and animations. The following avenues
will be used to market the project:
The Advantage:
A weekly 24 page publication in the P\
de
izen on
New Listings with photos and propert
Open houses with photos and propes
Specific agent listings
Local Wabsites:
The Lepic- Kroegerwebsite: www.lepickroeg
Iowa City Area Association of REALTORS&
Cedar Rapids Area Association of Realtors:
The Iowa City Press - Citizen: www.presscit,
IDX Member
The Lepic Kroeger blog, hftp,//gettheadvantaAe.blogspot .
Social Media including Facebook, Twitter lillrid Linkedln
National Websites:
We will also utilize the intenet to spread
With real time data feeds, the properties
national websites:
AOLRealEstate.com Fro tD
Buerhomesite.com G ogle
Classlfies.org omeF
CLRsearch.com ome<
word about all of our h
always be up -to -date.
Kazork.com
it are being marketed via over 50 websites.
traffic statistics are also available for these
CommercialFindeccom Hor eOnTheTube.com ListingMania.00m \
CondoQuickF!nd.com Homes.com MyRealty.com
CyberHomes.com HomesAndLand.com Oodle.com
ELookyLoo.com Homeseekers.com PropertyPursuit.com
Fizber.com Hotpads.com Real- Estate.com
Foreclosure.com HouseLoptor.com RealEstateBook.com
Realtor.com
RealtyTrac.com
Relohomesearch.com
Trovit.com
Trulia.com
Vast.com
Vishomes.com
Yahoo! Classifieds
Yahoo! Real Estate
Zillowcom
CHAUNCEY GARDENS, LLC- 91
Proposed Puroase Prices
We propose to cquire in fee title that porli n of Lots 3 and 4 in Block 43 and the City's
alley necessary t construct our planned xed use building for a total purchase price of
1,000,000. War uest that the City gra t us easement rights over the City's property
at the northeast co er of Gilbert and liege for the purpose of relocating the park.
In orderto complete a project, we wil require the City's grant of subterranean rights
under this property, as ell as under th existing Chauncey Swan parking ramp, for the
purpose of constructing nderground arking and use for geothermal wells.
Private Developer for College StrGibert St. Northeast COmer> City of Iowa City> September 28, 2012
Gap Financing
We request that the City make a loan from its General Fund b lance with a 20 year
repayment schedule to fund a co truction grant to provide gap nancing for the Project
in the total amount of $12,000,000 s more particularly /out elow. We propose that
the loan will be made when we have ubmitted evidence dory to the City that the
Developer has received equity capita nd mortgage f
nFirst, as a part of this gap financing, we quest that the vide us with a matching
grant of upto$250,OOOforpredevelopme expensessuchitectural,engineering
and environmental assessment. The City uld pay 50ocumented invoices up
to the matching grant amount.
Second, we request a forgivable loan of $3, 1\00.00P for acquisition, demolition and
clean up of the entire site, to be secured by a m rt a on the property subordinate to
our construction lender. This Mortgage will be re l sed upon the Cil}rs insurance of a
Certificate of Occupancy for the Project.
Third, we further request that the City make a nt for irect construction costs. Based
on total project construction costs of $38,02 ,889, the quested grant is $8,750,000.
If our total Project costs are less than antici ted by 10 %, the final grant payments will
be reduced on a prorata basis. We propo that construct n grant funds be released
on a prorate basis with the proceeds of o construction loan or progress payments to
the general contractor.
CHAUNCEY GARDENS, LLC- 93
Private Developer for College SUGilbert St, Northeast Comer> CHy of Iowa City > September 28, 2012
Tom Kaut, a member of! development team, pleaded
circumstance in Tom's Iii has paid his debt to
community since that time. has no other criminal hi
EXW
Status or Outcome
Comments None
10. Exhibit B
to conspiracy to distribute cocaine. This is a regrettable
and has been a proud and productive member of our
W
CHAUNCEY GARDENS, LLC - 95
Nvate Developer for College St,/Gilbert St. Northeast Corner > City of Iowa City> September 28, 2012
eferences
CHAUNCEY GARDENS, LLC- 97
9 -26 -12
RE: Jesse Allen and To Kaut DBA Chauncey Gai
TO Whom It May Concern:
The City of Coralville has work with Jesse Alien on
ranging from individual single fa ily homes to develo
We have found Mr. Allen his partn s
work with and his projects to be of a
cooperative in working with city staff t
and ordinances. We had not had cust
or delay in completion of jobs.
We would welcome the opportunity to
m Kessler
Building and Zoning Official
Ph: 319.248.1720
Fax: 319.248.1894
jkessler@cLcoralville.ia.us
CORALVILLE
LLC
s projects within the city
of an entire subdivision,
and emplo to be very professional to
igh caliber or orkmanship. He has been very
assure tha his projects adhere to city codes
o er comp ints voiced about Mr. Allen's work
wor wit Alien Construction in the future.
City Administration
1512 P Street
Coralville. lovra 52241.1701
Ph: 319-248-1700
Fax: 319.248-1894
i..'
Iowa City Area
Development Group
Fe,4o,dmary opobdunaies
In unez{n' led plarev-
September'$4, 2012
City of Iowa Cit
Attention: Tom
410 E. Washington
Iowa City, IA 52240
It is with great honor that v) submit this letter of reference for Neumann Monson Architects.
As one of the prominent Iowa 0
landscape of this community an
views and mission of the Iowa C
ICAD board of directors and has
today. He and his staff have prc
the CoLab space.
architects whose Work has demonstrably benefitted the
egion, the princi is of this firm have long supported the
Y rea Developm nt Group. Kevin Monson has served on the
e\ instrument in leading the organization to where it is
ledtpvaluable ssistance in the conceptual development of
Their modern vision for creating unique, in
structures they have designed has created
investment, businesses and talent.
spaces with distinctive eye for detail in the
cant benefit to the a rea as we work to attract
ICAD is eager to work with the Neumann Monson Nam in marketing the needed office space
this project will bring to the city. With t e size, Iota 'on and concept of this project it would be
an ideal fit to be featured nationally as Oart of the Shoi el Ready Certification network of site
selection consultants and national real /estate firms.
In closing, we are grateful for the ooing support Neu
the Iowa City Area and trust they w uld be a valuable I
Sincerely,
L Z / G
Mark Nolte
Interim President
Iowa City Area De Group
nson has provided to ICAD and
the city for this project.
Washington Street, Suite 101 Iowa City, IA 52240 319.354.3939
IowaCityAreaDevelopment.com
Hi11S
and Treat
September 19,
Thomas Kaut & Jesk Allen
3551 Donegal Court
Iowa City, IA 52246
Dear Tom and Jesse:
This letter shall serve as a letter <
performance that Hills Bank and
providing both construction and
1009 2nd Street
Coralville, IA 52241
319 -351 -8000
reference to confirm years of satisfactory
rmpany hq§ experienced with each of you in
We understand that you are looking at a oject vfifthim the city limits of Iowa City and
that a letter of credit reference has been r est .Should this project proceed, we
would be happy to review the project and re t loan requests. While we are not yet in a
position to grant a binding loan commitment, a appreciate your giving us this
opportunity.
Please consider this as our non - binding L c er of In rest to work with you on this project.
Thank you for your ongoing relationship d the op rtunity to providing you additional
services in the future.
Sincerely,
Tim D. Finer
Senior Vice President
Hills • Iowa City • Coralville • No h Liberty • Kalona • Cedar Rapids • Lisbon + Mount Vernon • Marion • Wellman
hillsbank.com 1.800. 445 -5725
MidWest
Bank
18. 2012
Tom Ka t
c% Lepic- oeger, Realtors
2346 Mo n Trek Blvd
Iowa City, I 52246
Re: Letter of Int rest and Recommendation foCity of Iowa City project RPP
Dear Tom:
I'm glad to provide tht letter of interest to ork with you and potential partner(s) on the
City of Iowa City reque. for formal pro al at the northeast comer of College and
Gilbert Streets. I believe 51yukvill be able to offer a very nice final project that will add to
the attractiveness of the gr er downto Iowa City.
While this is not meant to scrvi
project, we'd gladly work with
MidW'estOne Bank has enjoyed a
banking as well as construction at
bank's operating principles notes
integrity. You and your comps I
bank_
Please let me know if you or
I'd be glad to help you with)
a fi ancing commitment to lend on the proposed
i • d potential partner(s) on it.
f t working relationship with you on personal
delk,elopment projects since 2008. Just as one of our
ou h e always conducted yourself with the utmost
are vahled, creditworthy, and respected clients of this
else relatekto this request has any other questimrs.
Sincere)
Jert Waddilove
Vice President, Rcgi nal Credit Officer
MidWes0ne Bank
Pnvate Developer (c
12. Unique Resources & Capabilities
Our team is com fitted to the success of Iowa City.
Ourteam has long arm Iowa City roots, past and resent.
We are truly local. All ollarsarefiltereddirectlyba k into the local Community
to support a healthy e nomy for Iowa City's fut re.
Our team has an impres ive depth of experie ce in coordinating all facets
of the project.
We propose innovative, fowa - thinking desi n solutions.
We will respond quickly to chat nges that ay arise.
We are willing to listen to all parti at the 61e.
We are committed to a community- inde approach.
We are committed to using cost effect renewable energy resources.
We are committed to energy efficiency d sustainability.
Our team brings extensive experien a in the local commercial business
market.
Our team brings experience in the cal housin market.
Our team brings years of experie ce with mixed- se experience.
CHAUNCEY GARDENS, LLC -NT
Pn"Ie Developer for
The undersigned at!
herein named to per for
further certifies that he
and any other docume
all conditions hereof,
understanding of the re
EXHIBIT "A'
Proposal submittal scar
to his /her authority to
if the firm is selected b
e has read the Requ
3 ion relating to this re
an this proposal is
nre ents and time con
13. Exhibit A
form
nit this proposal and to bind the firm
e City of Iowa City. The undersigned
for Proposal, terms and conditions,
st; has complied in all respects with
bmitted with full knowledge and
nts noted herein.
The undersigned hereby furthe acknowledge /that it accepts the terms of the Request
for Proposals in its entirety and y the subn}ssion of its proposal hereby waives anyclaimsorclaimstoirregularitiest \=
at
less
se odt of such RFP, the process employed bytheCitytosolicitanddevelopproRFPevaluationprocessdescribedintheRFP, and agrees to release and the City, its employees, agents, and
consultants from any claim, loss, oag¢ arising therefrom.
The undersigned hereby authorizes any rson, firm or corporation to furnish any credithistoryandfinancialconditionorotheformationrequiredbytheCitytoverifyinformationrelatedtotheFirm's submis on ti the City.
I hereby certify, on behalf of the under igned fir that the above information is true and
correct to the best of my knowledg and that e City may rely on the informationprovided.
Firm name: Chauncey G rdens, LLC
Home office address: PO Box 347
City, state, zip: wa CItY I a r 240
Signature:
Date: iantamh R ni
CHAUNCEY GARDENS, LLC -105
OFOOF
CHAUN
Chauncey
PO Box X
Iowa City, li
319.530.8238
IN ui MMI a a
September 26, 2012
Jeff Davidson
Planning and Community Development
City of Iowa City
410 Bast Washington Street
Iowa City, IA 52240
Dear Mr, Davidson:
This document serves as our official "letter of interest' in the College St / Gilbert St Northeast Corner
Project. This relates to the RFP distributed by the City of Iowa City on August 31, 2012.
I have had a long -term interest in the Iowa City area and am a graduate of the University of Iowa.
Individually or with partners my company has developed a series of successful residential projects. I have
partnered with Ryan Companies US, Inc. on several of these projects and am working with them as a
development partner on this effort. They bring a wealth of mixed use development project experience to
our team. OPN Architects is on our team as our project designers.
We have had extensive conversations with New Pioneer Coop regarding their potential participation in
this project. We understand that they are not exclusively aligned with our team but are, none - the -less,
keenly interested in our project. Should we be selected, we would immediately re- engage with New
Pioneer to ensure that their space and business needs are adequately met.
Our submittal follows the requirements of the RFP and is self- explanatory. While we have spent
significant time and resources pursuing the project to date, we realize there is much work left to do. If
selected, we commit to work fairly and diligently with the City to develop a project that meets the many
goals outlined in the RFP.
Our team is very excited about this project. We look forward to meeting with you personally and
introducing our project team. In the interim, please feel free to contact me with any questions.
Sincerely,
r
tun ergman
Presi ent
CONTENTS
COVER LETTER
SECTION 1 RFP RESPONSE
SECTION COMPANY INFORMATION
MISSION
ABOUT RYAN
INDUSTRY RANKING
SAFETY LEADERSHIP
LEED APPROACH
COMMUNITY SUPPORT
AWARDS
WHAT OTHERS SAY ABOUT RYAN
SECTION 3 PREVIOUS EXPERIENCE
222 HENNEPIN
BROADWAY PLAZA
CANYON VILLAGE
THE GROVE
UPPER LANDING
NICOLLET MALL
JIM BERGMAN PROJECT EXPERIENCE
PIONEER PROPERTY MANAGEMENT EXPERIENCE
SECTION VISUAL DESCRIPTION
AERIAL VIEW
FLOOR PLANS
BUILDING SECTION
ELEVATIONS
RENDERINGS
SECTION 5 FINANCIAL LETTERS OF INTEREST
VALLEY BANK
FREEDOM BANK
CREDIT CAPITAL
SECTION REFERENCES
CITY OF CEDAR RAPIDS
VILLAGE OF FOX LAKE
VILLAGE OF GURNEE
BANK OF AMERICA
CENTENNIAL MORTGAGE
CITI COMMUNITY CAPITAL
SECTION 7 NEW PIONEER LETTER OF INTENT
SECTIONS PROFORMA
SECTION 9 EXHIBITS
A- PROPOSAL SUBMITTAL SIGNATURE FORM
B - LITIGATION
SECTION 1
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
OverlieW
1. SIGNED LETTER ...................... ............................... Cover sheet
2. PRIMARYCONTACT ................................... ..............................2
3. DEVELOPMENT ENTITY ............................. ..............................2
4. CONTRACTING ENTITY .............................. ..............................2
5. ORGANIZATION CHART ............................. ..............................3
6. PREVIOUS EXPERIENCE ............................ ..............................4
7. FINANCIAL CAPACITY ................................ ..............................4
8. VISUAL DESCRIPTION ................................ ..............................4
9. CONSTRUCITON & FINANCING PLAN ...... ..............................7
10. LITIGATION ............................................... ............................... 12
11. REFERENCES ........................................... ............................... 12
12. UNIQUE CAPABILITIES .............................. ............................. 12
13. SIGNATURE FORM .............................. ........................Section 9
1Tl4NkTjIMAdl
We have reviewed the Request for Proposals for a private developer for the College
St /Gilbert St Northeast Corner Site, dated August 31, 2012. We appreciate the
opportunity to present our qualifications and proposed project for this crucial
development site in downtown Iowa City. We have worked with New Pioneer Food
Co -op to develop a facility to meet their evolving needs. This facility will be combined
with a new sixty -unit condo development, the John Gilbert Lofts. We felt that John
Gilbert, who in 1826 becatne the first person of European descent to settle in Johnson
County, is a fitting natnesake for this new residential facility.
Our signed letter of interest can be found at the front of this booklet. In this section,
we address each remaining item in the RFP in order, with reference to supplementary
materials in subsequent sections as needed.
One additional point of clarification is required. This team seriously considered
alternative approaches to this project. We recognize the City's desire to include class A
office space as well as the potential of additional or expanded residential components.
As will be further explained in the financing section, we eventually opted for a simpler
approach.
Our goal in taking a simpler approach relates to timing. First, we want to be able to
proceed without undue delay — to take advantage of the current financing market at
predictable and achievable rates. Adding other project components complicates design
and leasing and, as a result, delays start.
The second timing issue relates to the current competitive construction market. This is
something we sec continuing for the short term, but cost of construction will increase
as inflation inevitably returns. We would like to pursue this project while a better
buying market exists.
Page 11
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Contacts &Legal Hntities
1. SIGNED LETTER ON THE PROPOSER'S LETTERHEAD INDICATING AN INTEREST IN THE MIXED -USE
FACILITY PROJECT.
Sec front of booklet.
2. PRIMARY CONTACT PERSON AND CONTACT INFORMATION.
Developer. Owner:
Marc G ullickson _Jim Bergman
Ryan Companics US, Inc. Iceberg Dcvclopmcnt Group
President — Ryan Iowa 20 Sandstone Ct.
625 1,1 St SE, Stc 175 Bcttcndorf, IA 52722
Ccdar Rapids, IA 52401 (563) 441 -6123
319) 731 -2800 jbcrgman @vallcyb.com
marc.gullicks on @ryancompanics. com
3. LEGAL NAME AND ADDRESS OF THE DEVELOPMENT ENTITY, INCLUDING ALL JOINT VENTURES,
LIMITED PARTNERSHIPS AND LIMITED LIABILITY COMPANIES, AND THE PERCENTAGE OF
INTEREST OF EACH. PROPOSERS ARE ENCOURAGED TO INCLUDE SIZE OF THEIR FIRM, PARENT
COMPANY IF APPLICABLE, AND OFFICERS /PRINCIPALS OF THE FIRM.
Iceberg Dcvclopmcnt Group will be the General Partner of a to- be- formed LLC for
the purpose of this development. The Dcvclopmcnt team is _Jim Bergman and Ryan
Companics, which has approximately 700 crnployces. Jim Bergman will be the project's
sole owner. More information about the scope and scale of Ryan Companics can be
found under Scction 2, Company Information.
4. IDENTIFICATION OF THE LEGAL ENTITY WITH WHOM THE CITY WOULD CONTRACT, WHETHER THE
ENTITY EXISTS CURRENTLY OR WOULD BE CREATED FOR THE PURPOSE OF THIS PROJECT, AND
THE NAMES AND TITLES OF ALL PARTIES AUTHORIZED TO ACT ON BEHALF OF PROPOSER.
This legal entity is to be formed. Jim Bergman is authorized to act on its behalf.
Page 12
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Or ahonal Chart
5. AN ORGANIZATIONAL CHART SHOWING ALL MEMBERS OF THE PROPOSED DEVELOPMENT TEAM
INCLUDING BUT NOT LIMITED TO DEVELOPER, MANAGEMENT AGENCY, LEGAL, DESIGN
PROFESSIONALS, AND CONSULTANTS. CONTACT INFORMATION SHOULD BE PROVIDED FOR
EACH TEAM MEMBER
Page 13
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Previous F'xperience, Financial Capacity and Visual Description
6. DESCRIPTION OF PROPOSER'S PREVIOUS EXPERIENCE, INCLUDING A BRIEF DESCRIPTION OF AT
LEAST TWO MIXED -USE PROJECTS WHERE THE PROPOSER PLAYED A SUBSTANTIAL ROLE. THE
DESCRIPTIONS SHOULD INCLUDE THE SPECIFIC ROLE OF THE PROPOSER AND THE CURRENT
STATUS OF THE PROJECTS. SUFFICIENT REFERENCE CONTACT INFORMATION SHOULD BE
PROVIDED FOR EACH PROJECT IN ORDER TO PERMIT THE CITY TO VERIFY THE INFORMATION.
Ryan Companies and Iccbcxg Dcvclopmcnt havc a wcalth of mixcd -usc pxojcct
experience. Examples of pxojccts completed by both firms individually as well as in
partnership arc included in Section 3. The section begins with summary sheets
highlighting some of Ryan's mixed usc pxojccts. With the exception of 222 Hennepin,
currcndy in process, these arc all complctcd.
Following the Ryan pxojccts, you will find a list of Jim Bergman's many successful
housing pxojccts. Ryan has worked with Jim in a variety of roles on multiple of these
pxojccts. Ryan was general contractor for Thomas Placc Glenview and was part owner
as well as general contractor on Thomas Place Fox Lake, Gurnec, and Orland Park.
Finally, Ryan assisted with prc- development and design on Thomas Placc Waukcc and
Bcttcndorf.
The last part of Section 3 contains a resume and list of managed properties for Pionecr
Property Management, which currcndy manages ninety -throe housing properties
nationwide.
7. A DESCRIPTION OF THE PROPOSER'S FINANCIAL CAPACITY TO OBTAIN ACQUISITION,
CONSTRUCTION, AND PERMANENT FINANCING, INCLUDING LETTERS OF INTEREST FROM
LENDERS AND /OR TAX CREDIT ALLOCATEES. A DISCUSSION OF THE FINANCING SOURCES AND
PARTNERSHIPS UTILIZED FOR PRIOR PROJECTS AND REFERENCES FROM THESE PARTIES ARE
ALSO WELCOME AND ENCOURAGED.
Iccbcxg Development has a long history of financing complicated, mixed usc pxojccts.
Sufficient initial investigation has taken place to convince us that this pxojcct is
financcablc and can proceed once land has been acquired.
Plcasc scc Scction 5 for letters of interest from Frccdom Bank and Vallcy Bank.
6. AVISUAL DESCRIPTION OF THE PROPOSED PROJECT. INCLUDING:
A. ACONCEPTUAL DRAWING OR SCHEMATIC;
B. CONCEPTUAL SQUARE FOOTAGE OF COMMERCIAL AND /OR OFFICE SPACE;
C. CONCEPTUAL SQUARE FOOTAGE AND SIZE OF RESIDENTIAL UNITS;
D. SCHEMATIC LAYOUT OF COMMERCIAL AND RESIDENTIAL FLOORS AND PARKING;
E. SCHEMATIC OF THE PEDESTRIAN -LEVEL FACADE.
Plcasc scc Section 4 for renderings and plans of the proposed pxojcct, including the
information requested.
Page 14
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Visual Description Continued
The design team approached preliminary concepts for a mixed -use, residential building
at the comer of College and Gilbert Streets with the goal of creating a building in
keeping with Iowa City's dense and vibrant downtown landscape. These initial designs
for a modern, clean -lined structure on the comer of College and Gilbert Street respond
to the city's desire to enhance the quality of life in the city center by providing space for
an expanded New Pioneer Food Co -op while creating desirable residential options. The
conceptual design creates a strong urban edge on College and Gilbert defining the
block while reinforcing openness and community connections by embracing the
verdant green space of Chauncey Swan Park to the north.
On the first floor, designers carved out a functional and light -filled space for the New
Pioneer Co -op. Per the store's request, the main entrance is located on College Street
and features a large bank of windows providing bright, welcoming views to the interior.
A strong sense of presence is essential for the entrance, helping to orient passers -by
while differentiating the commercial entrance from the residential entrances. On the
mezzanine level, designers have allocated generous space for offices and administrative
functions for the Co -op. On the north side of the Co -op, a large glass wall opens onto
a spacious patio. This space could provide cafe stating and if outfitted with heaters,
comfortable year -round gathering space. The patio is elevated slightly above the park,
offering views and connection to the urban plaza. For people approaching the Co -op
from the north, the patio and wall of glass will be a visually engaging invitation to
participate in the bustling life of the Co -op.
Rising above the first -floor grocery, the residential tower provides dynamic views of the
downtown while offering potential residents a choice of elegant studio, one- and two -
bedroom apartments. Fifty percent of the apartments feature outside balconies, and all
residents will enjoy the green roof located over the first floor and overlooking the park.
A range of design options gives potential renters an optimal mix of layout and
atnenitics. Generously sized one and two bedrooms will attract young, creative couples.
Elegantly arranged studio apartments on the top floor have vaulted ceilings with
eastern facing clerestory windows in keeping with the goal to provide an abundance of
natural light. Below ground, 30+ dedicated parking spaces will be available for
residents. It is assumed that the remainder of the required parking with come from the
adjacent parking deck and will be immediately accessible via direct connection.
Elevators provide universal access to all levels of the facility.
Because the building is situated in the urban core, the design team wanted to create a
sophisticated, modern look. A mix of materials on the exterior, including metal panels
and pre- cast or masonry stone, provide a strong visual base for the building. Wood, or
wood toned material, warm and complement the darker materials. The possibility of
using reclaimed wood panels is an intriguing sustainable design option. Large expanses
of glass provide balance and open views, into the building and from the inside out to
Iowa City's energetic urban hub.
Page 15
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Visual Description Continued
The design tcam recognizes that Iowa City and the New Pionecr Co -op stakeholders
will expect this pxojcct to incorporate responsible, sustainable building strategics. As a
team that has delivered a range of LEED buildings, including a LEED platinum
targeted public library in Cedar Rapids, we arc cxcitcd to discuss these options. We
believe that this pxojcct could be at the highest lcvcl of LEED, as desired by the Co -Op
and the City, and we're prepared to outline and discuss the opportunities to maximize
this project's green profile. Our preliminary design idcas include a green roof which
could feature native grasses and raised beds for vegetable and herb gardens. An
optional cistern collection system located on the roof could provide water for
maintaining the roof as well as storm water management. Above the loading dock and
entrance to New Pi, an angled roof could be covered in a photovoltaic array, helping
offset the building's energy use. All of these idcas would of course need to be carefully
assessed for viability.
This pxojcct has the potential to significantly enhance Iowa City's tort. The design
team is very cxcitcd by the opportunity to help create a larger, more flexible space for
New Pi while adding much needed workforce housing to the downtown.
Page 16
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Construction and Financing Plan
9. NARRATIVE DESCRIBING THE PROPOSER'S PLAN FOR CONSTRUCTION AND FINANCING OF THE
PROJECT. THIS SHOULD INCLUDE:
A. ORGANIZATION AND MANAGEMENT APPROACH TO THE PROJECT;
Iccbcxg Development Group will be the owner of the project. Ryan Companies US,
Inc. will serve as Developer and Contractor. OPN Architects will be the project
designer. New Pioneer's Cooperative Society and Iceberg Development have signed a
non - exclusive agreement to work together to accomplish this project, should our
proposal be chosen by the City. A copy of that agreement is included in Section 7.
It will be our responsibility to provide a shell facility for the New Pioneer operation.
They will then be responsible for their own tenant finish. This tenant finish may or may
not be completed by our team. We have made every effort to incorporate New Pioneer
project shell facility needs into our design. We have priced those improvements and
include those costs and reimbursement from New Pioneer in our projections.
Please note that it is early in the design process. We have endeavored to create a design
that accomplishes the purposes of both New Pioneer and the _John Gilbert Lofts. We
have also been cognizant of the expectations of the City. Obviously, it may be
necessary to adjust our design as we learn more and receive feedback regarding our
Plans.
B. GENERAL SCHEDULE FOR COMPLETION OF THE PROJECT FOLLOWING PROPERTY
ACQUISITION;
This project will require approximately 12 months for construction. Our plan would be
to aggressively pursue design while the site is acquired and Mid Am substation
relocated. We then could begin construction immediately. Ideally, the Mid Am schedule
of one year for relocation could be shortened. We would also expect the demolition of
existing buildings be completed prior to the Mid Am move. As part of this demolition,
we would expect delivery of a clean site including removal of basements and relocation
of area power poles.
Financing is available so that we could proceed with the project immediately after the
Mid Am relocation and be open and operational in 12 months. Our goal will be to
advance the Mid Am move, resolve other issues such we could start construction in
summer 2013, and be open in summer 2014.
C. PLAN FOR INCLUDING OR NOT INCLUDING THE MIDAMERICAN ENERGY PROPERTY IN THE
PROJECT;
Current plans incorporate the Mid Am space.
Page 17
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Construction and Financing Plan Continued
D. DESCRIPTION OF AGENERAL FINANCING PLAN, PRELIMINARY PRO FORMA INCLUDING
ANTICIPATED AND /OR POTENTIAL FINANCING SOURCES;
The pxojcct tcam lookcd at the financing qucstion from two perspcctivcs. First, it was
ncccssary to considcr a pxojcct scopc /dcfinition that was within the rcquircmcnts of
the City RFP. This suggcsts rctail, officc and residcntial componcnts typical of an urban
mixcd use pxojcct. Whilc the City did not dcmand that all of thcsc componcnts be
prescm, it strongly cncouragcd thcir inclusion. The sccond perspcctivc also rclatcd to
the rcquircmcnts of the RFP. Clcarly the City was intcrestcd in a pxojcct that would
lcvcragc funding sourccs, limit City invcstmcnt, incrcasc the tax basc, and ultimatcly be
ablc to be cffcctivcly financcd such that the pxojcct could be complctcd within a
rcasonablc timc period.
We discusscd various approachcs to the pxojcct and cvcntually dctcrtnmcd the bcst
plan was to offcr a pxojcct that had a high dcgrcc of ccrtainty of cost cffcctivc financing
and a morc prcdictablc timclinc for complction. This suggcstcd to us that the pxojcct be
residcntial and rctail only and that it not includc an officc componcnt. Including an
officc componcnt complicatcd dcsign, incrcascd construction cost, compromiscd
financing and potcntially dclaycd construction start. This incrcascd cost would be fclt
by all facility uscrs.
Pcrhaps most bothcrsomc is the timing qucstion. We arc currcndy cxpericncing
unprcccdcntcd low ratcs for long tcrm financing and a vcry aggressivc construction
pricing. Thcsc ratcs and low costs will not be with us forcvcr. It is csscntial that we
havc a plan that can "go to markct" as quickly as possiblc to takc advantagc of the
currcnt ratc /pricing cnvironmcnt. We bclicvc that our pxojcct will comc to fruition
quickly.
We will obtain our short tcrm construction financing from local or rcgional banks
whcrc we havc solid, ongoing rclationships. We cxpcct aggressivc ratcs to be availablc
to us for 12 -24 months. Lcttcrs of rcfcrcncc from banks /financial institutions willing to
be part of the financing solution arc includcd in our responsc. Spccific bank
commitmcnts for intcrim and permancnt financing arc also includcd.
Longcr tcrm fixcd financing should be availablc to us through the 221D HUD
program. We havc acccsscd funds from thcsc programs for othcr projccts and havc
prcliminary indications thcy will be availablc for this pxojcct. Again, Icttcrs of support
arc includcd. We pxojcct 3.6% financing ovcr a fixcd 35 -ycar tcrm.
Whilc the financing discussion may sccm rcicvant only to the residcntial portion of the
pxojcct, it should be notcd that New Pionccr will also fccl the bcncfit of a schcdulc that
advanccs quickly and contains a simplcr pxojcct scopc. Thcy too should scc the
advantagcs of lowcr financing costs and an aggressivc bidding cnviromncnt. Thcy too
will bcncfit from not having thcir pxojcct burdcncd by the additional dcsign and
construction costs that accruc as a result of attcmpting to accommodatc a third (officc)
use in the pxojcct.
Page 18
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Construction and Financing Plan Continued
A copy of the project pxofoxma is included in Section 8. Our approach in creating this
pxofoxma was straightforward. We priced the improvements as designed, along with the
related soft costs. We idenfificd timing and potential value of revenue and funding
sources for the project. We determined that an 8% return on equity would be
reasonable and then "backed in" to a TIP and land value amount to make the pxofoxma
balance.
Total project cost is estimated at $16,518,406. This does not include build out of the
New Pioneer space. Other important clarifications arc included in Section 9H below.
This outlines proposed City support for the project.
While we have an LOI with New Pioneer, they reserve the right to negotiate final
purchase price, including their portion of project soft costs and fees. Estimates for
these amounts arc included in the pxofoxma.
Please note: the RFP states that we can identify portions of our project as
confidential. Please treat the proforma as confidential. We are comfortable
releasing this information if this project is selected by the City for further
consideration.
D. COPIES OF ANY LETTERS OF INTENT FROM PROSPECTIVE PURCHASERS AND /OR
TENANTS;
A copy of the New Pioneer LOI is included in Section 7
F. DESCRIPTION OF THE MARKETING APPROACH TO SECURE PURCHASERS OR TENANTS;
Pioneer Property Management, Inc. (PPM) will be in charge of leasing out the
residenfial units of the _John Gilbert Lofts. PPM is a leading property management
company serving a broad real estate development community. We feel it will be very
important to strategically position the property early during the conceptuafizafion
process. For this location and product type, we will target a clientele of young area
professionals aged 25 -34. This Crealive Class is known as a progressive group and will be
attracted to the location because it offers an urban living environment close to local
transit, cultural activities, arnmitics, and services offered by the growing Iowa City
downtown submarkct.
Per the marketing study completed, there arc over 53,000 daytime professionals
working within a two -mile radius of the site. We will strive to focus their attenfion on
building arnmitics and a price point that appeals to this targeted clientele. There is
currently a fimited supply of non - student housing in the area, as well as an extremely
low rental vacancy rate of 2 %. The marketng study also points to a potential demand
for 22,043 additional units in the market area by 2017. We feel that with the economic
health of the University of Iowa, this area will continue to thrive in the future, and that
Page 19
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Construction and Financing Plan Continued
there will be a strong nccd for high quality, price- conscious rental housing for the
Creative Class.
To market the property, we will takc a multi - faceted approach. If and when the project
is awarded, we will run introductory ads to gain interest. We will focus a large portion
of our outreach on social media in an attcmpt to reach the targeted demographic. To
do this, we will create a Paccbook presence, create a Twittcr account, and advertise
through Craigslist. We will givc contact information and create a wcbsitc where pcoplc
will be able to register for future updates and information on the project.
We will also mcct with local businesses to discuss our project and givc them
information to share with new and existing staff We may choose to utilize a television
commercial, highlighting the area and arnenitics of the project. In addition, we will offer
presentations to graduating students looking to stay in the area once their working
careers start.
Approximately six months before completion, we will begin to advertise in local
publications both print and online, as well as in university publications, beginning the
application process and collecting information on future tenants. This will generate
strong interest in the building and will ensure early Icase -up activity when the building
opens, which will Icad to a full, financially stable project.
G. THE PROPOSED PURCHASE PRICE AND THE EXPLANATION OF THE PURCHASE PRICE FOR
THE PROJECT PROPERTY.
A total of $1,100,000 is programmed for acquisition of the Mid Am substation. This is
not an agreed upon negotiated amount. We will enter into a good -faith negotiation with
Mid Am to confirm the price for this property. We would like to have a better
understanding of the cost and benefits to Mid Am for this relocation before agreeing to
a final price.
We havc assumed that the City property will be delivered to the project as a clean site at
no cost. This assumes removal of the buildings and basements, environmental
remediation if required, and relocation of power poles along the street.
As a reminder, the TIP request for this project was based on an 8% return on equity. If
it is more appropriate to include some purchase price for the City site, the TIP could be
increased to accommodate that change.
Page 110
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Construction and Financing Plan Continued
H. THE PROPOSED AMOUNT AND DESCRIPTION OF GAP FINANCING ASSISTANCE FORTH E
PROJECT.
Gap financing to achicvc an 8% xctuxn on cquity is $3,914,129. This docs not includc
rcimburscmcnt for the City sitc.
It is assumcd that Ncw Pionccx may wcll xcquixc TIP support to complctc thcir
planncd purchasc and tcnant improvcmcnts. Calculating the TIP rcqucst notcd abovc
for the _John Gilbcrt Lofts portion of the projcct on a squarc footagc basis, and
applying that to the Ncw Pionccx portion of the projcct, thcy could xcquixc
1,350,000 in TIF support. This statcmcnt is madc without any firsthand
undcrstanding of the financial nccds of that projcct.
In addition to TIP, our proposal rcqucsts that the City portion of the sitc be dclivcrcd
at no cost and rcady for construction.
We notc that with additional work, the amount of the TIP rcqucst can be dccrcascd.
Kccping in mind our goal of driving to an 8% xctuxn, dccrcascs in cost or altcrnativc or
improvcd rcvcnuc sourccs could offsct a portion of the TIP rcqucst Stratcgics bcing
cmploycd to scck that outcomc includc:
Achicving 221D HUD ratcs lowcr than the 3.6% in the proforma.
Obtaining Ncw Markcts Tax Crcdits for a portion of the projcct. We arc
optimistic on this point. Plcasc notc the Icttcr from Crcdit Capital's Mirko
Jakonovic in Scction 5.
Ncgotiating an improvcd pricc with Mid Am for the sitc.
Dcsign /cnginccring changcs that dccrcasc cost without compromising
acsthctics or function.
Rcmoval of parking in the lowcr Icvcl with additional assigncd parking from
the dcck. This is a small sitc with drastic topography. We havc discusscd the
possibility of rctnoving the lowcr Icvcl. This would havc a significant impact on
cost.
Page 111
COLLEGE ST /GILBERT ST NORTHEST CORNER SITE
September 28, 2012
Litigation, References, and Unique Capabilities
10. ASTATEMENT RELATIVE TO WHETHER ANY OF THE PRINCIPALS, DEVELOPMENT ENTITIES, OR
MEMBERS OF THE DEVELOPMENT TEAM HAVE EVER BEEN INDICTED FOR OR CONVICTED OF A
FELONY, AND A DESCRIPTION OF ANY AND ALL LITIGATION INVOLVING THE PRINCIPALS,
DEVELOPMENT ENTITIES, OR MEMBERS OF THE DEVELOPMENT TEAM DURING THE PAST FIVE
YEARS (COMPLETE EXHIBIT "B ").
Nonc of the partics involvcd havc bccn inclictcd or convictcd of a fclony. Plcasc scc
Scction 9 for Exhibit B listing litigation during the past Svc ycars.
11. REFERENCES FROM FINANCIAL INSTITUTIONS, CITY GOVERNMENTS, AND COMMUNITY
ORGANIZATIONS THAT WILL PERMIT THE CITY TO VERIFY THE CAPABILITIES OF THE PROPOSER.
Plcasc scc Scction 6 for Icttcrs from the citics of Fox Lake, G umcc, and Ccdar Rapids.
Additional Icttcrs of support from various financial organizations arc also includcd in
this scction.
12. IDENTIFY ANY UNIQUE RESOURCES, CAPABILITIES OR ASSETS WHICH THE PROPOSER WOULD
BRING TO THE PROJECT.
Ryan Companics US, Inc. is a national dcvcloper with spccial cxpertisc in muhiplc
arcas, including rctail dcvclopmcnt. We arc currcndy constructing a projcct callcd 222
Hennepin in downtown Minncapolis that is similar in many ways to the proposcd
projcct. It has a Wholc Foods Storc on the first floor and 286 work forcc apartmcnts,
and it also incorporatcs an cxisting parking dcck. We can ccrtainly Icarn important
Icssons from that cxpericncc that will be applicablc to the proposcd projcct.
Ryan's cxpertisc as both a dcvcloper and a dcsign- buildcr allows us to providc a
complctc tcam to this complcx projcct. Having a singlc point of contact and
responsibility is vital to kccping such a dcvclopmcnt moving ahcad succcssfully.
Jim Bcrgman is a nationally -known cxpert in financing projccts of this scalc and
complcxity. This will hclp grcady in simplifying and advancing the dcvclopmmt cffort
Finally, this is an opportunity to introducc the Ryan - Bcrgman tcam to the Iowa City
markct. With the succcssful complction of the John Gilbcrt Lofts, we will be familiar
with the local landscapc and can be a resourcc on futurc projccts.
13. PROPOSAL SUBMITTAL SIGNATURE FORM (COPY ATTACHED AS EXHIBIT "A ").
Plcasc scc Scction 9 for the signcd Proposal Submittal Signaturc Form
Page 112
SECTION 2
MISSION
We are committed to maintaining our culture of honesty, integrity and family values. Our
collective abilities make us competent, our culture and values make us great."
Pat Ryan, President, Ryan Companies US, Inc.
RYAN'S MISSION IS TO BUILD LASTING RELATIONSHIPS
WITH OUR CUSTOMERS, EMPLOYEES, BROKERS, SUPPLIERS
AND COMMUNITIES THROUGH A COMMITMENT TO THE
FOLLOWING VALUES:
Honesty and integrity.
Qualities that have guided us from our beginnings in 1938.
Exceeding customer expectations.
Going above and beyond to ensure our customers are absolutely delighted
with the end result.
Continuous improvement through our quality process.
Our dedication to the highest standards differentiates us.
Clear and open communication.
Collaboration and understanding are the keys to success.
Promoting the growth of our employees, their families and our company.
People are our most important asset.
Providing a safe workplace.
A model for the industry.
Respecting the environment.
Taking care to protect our natural resources.
ABOUT RYAN
It was nice to see the caring that everyone at Ryan had for our team and our project. It was almost as if it
A CLEAR POINT -OF -VIEW.
Since 1938 our goal has been to
build lasting relationships.
A more than 73% rate of repeat
business makes our vision o reality.
was their building."
Terry Thompson, President, PCT Engineered Systems, LLC
RYAN 15 COMMITTED TO BUILDING LASTING RELATIONSHIPS For three generations, Ryans have
led the family business guided by this commitment, based on the highest standards of
quality and service in the industry. While remaining true to the principles the company
was founded on — integrity, honesty, civic pride and a sincere regard for people — we are
meeting today's challenges, delivering value and exceeding
RYAN TIMELINE HIGHLIGHTS
1938, HIBBING MINNESOTA
At the turn of the 20th century,
Hibbing was o hub for the mining
and lumber industries. It was here
that James Henry Ryon, with his sons,
began what is now known as Ryon
Companies US, Inc.
1949, RYAN REALTY COMPANY
Brothers Russ and Fran Ryon
formed this compony, along with
Ryon Lumber and Cool, based in
Hibbing, Minnesota.
1963, RYAN CONSTRUCTION
This name was created to
describe the business accurately.
Later Ryon Properties operated
as successor to Ryon Roult,
1989, RYAN COMPANIES US, INC.
Current ownership is held by
Pot Ryan and Tim Gary. Both ore
active owner - managers of
Ryan Companies US, Inc.
2010/2011, RYAN TODAY
The company enjoys o 98% project
delivery customer satisfaction rote,
and a .75 workers compensation mod
rate. For fiscal year 2009 -2010 (ended
March 31, 2010), Ryon had revenue
of $425,383,000 and managed
13,682,000 SF in assets.
customers' expectations time and time again.
A NATIONAL SINGLE - SOURCE PROVIDER Ryan is a leading
national commercial real estate firm offering integrated
design - build, development and real estate management
services to customers. We specialize in office, industrial,
retail, health care, alternative energy, hospitality, higher
education, mission critical, public sector and mixed -use
projects across the United States. From its early roots
in northern Minnesota, the company has expanded its
Minneapolis, Minnesota, base of operations to include
offices in Chicago, Phoenix, San Diego and Tampa as well as
Cedar Rapids, Davenport and Des Moines, Iowa.
THE EXPERTISE OF RYAN'S PEOPLE Over the past 70 years, Ryan's talented and hard - working
professionals have collaborated with customers and communities. Using a single- source
approach, we offer flexibility in defining the scope of a project, and strength in providing
effective, timely solutions resulting in a higher certainty of success. We are not satisfied
unless our customers are satisfied — 100%. We embrace our customer's vision, working
with them in every aspect of the design, development and construction process to deliver a
solution that is sure to delight them.
IN ALL WE DO, RYAN DELIVERS VALUE There is a reason why so many of our customers
come back to work with us. It is our dedication to solving their problems, to serving them
better, no matter how big or small their project. That is why our quality of construction
is unmatched and our professionalism sets the standard for the industry. We measure our
success in terms of our
customer's satisfaction and
our ability to build lasting
relationships.
RYAN RANKED ONE OF THE TOP INDUSTRY CONTRACTORS
The whole experience with Ryan was fantastic. They designed exactly what we needed and they built exactly what was designed.
When we made a request, they evaluated it and developed options. I was extremely satisfied with the process and I am
equally as satisfied with the outcome."
TASER Intemotimml, Scottsdale, AZ Isle of Capri, Waterloo, IA
Two MorketPointe, Bloomington, MN RiverView at Santee Office Condos, CA
The Grose Retail Village, Mark, Gme, MN The Westin Edina Gallon , MN
Target Import Warehouse, Savannah, GA Target Technology Center, Elk River, MN
Mark Evenstod, Wce Chairman, Upsher -Smith Laboratories
ENGINEERING NEWS - RECORD (ENR)* HAS RELEASED ITS
2010 TOP 400 CONTRACTORS REPORT, which ranks the top
contractors nationwide by revenue. Ryan ranked in the
following categories:
37: Top 100 Design -Build Firms
41: Top 50 in General Building
72: Top 400 National Contractors
Ryan Companies US Inc., a nationally recognized
developer, design - builder and real estate manager, has
specialized in fully integrated solutions for more than 70
years. Ryan builds lasting relationships with a project
delivery model based on full- service customized solutions
and total collaboration — pairing the customer's needs
and expectations with the talents of a team of developers,
financiers, architects, engineers, constructors and property
managers.
Ryan has offices in Chicago, Minneapolis, Phoenix, San
Diego, Tampa, Cedar Rapids, Davenport and Des Moines,
Iowa.
In 2007, Ryan was named the National Developer of the
Year by the National Association of Office and Industrial
Properties (NAIOP).
Engineering News - Record provides news, analysis,
commentary and data for the construction industry. The
weekly magazine has more than 70,000 paid subscribers.
SAFETY LEADERSHIP AT RYAN
Ryan walks the talk and their job safety program is no exception. When Ryan talks about on site job safety,
they mean business."
Ron Von-Bank, Safety Director, Muska Electric, Past Recipient Subcontractor SafetyA ward
This is an excellent Project Safety Manual."
John A Nudo, OSHA Team Leader, Fire Protection & Safety Branch,
SAFETY IS A SERIOUS TOTAL MANAGEMENT EFFORT Ryan views people as our most
important asset. Keeping everyone safe at the jobsite is a responsibility we take very
Ryan's dedication to safety shows at seriously. We believe that through leadership, partnership, engineering, preventative
everyjob site. Building a partnership maintenance, training, innovation and employee motivation, accidents can be minimized,
with OSHA makes the best resources
and expertise available to Ryan. if not entirely prevented.
SAFETY EDUCATION AND TRAINING IS AN ONGOING PROCESS
The Ryan Safety Program trains all employees in proper
conduct and adherence. Additionally, all project sites
require the use of project specific safety manuals along
with individual safety orientation for everyone working
on -site. Safety procedures at Ryan are dearly
documented and continually reviewed and improved.
RYAN'S SAFETY RECORD BEATS INDUSTRY AVERAGES
In 2009 Ryan employees worked over 1.9 million hours
with only one injury that involved days away from work.
What this means, according to the National Bureau of
Statistics, is that Ryan's lost -time injury rate is 1 /10 of
the industry average! Over the past three years, Ryan's
safety ratings have surpassed industry averages, and our
workers' compensation insurance ratings represent
excellent performance for the past decade.
RYAN AND OSHA PARTNER TO IMPROVE SAFETY
OSI IA Consultation, the department's group dedicated
to education and technical assistance, has partnered
with Ryan to form a job safety committee. Ryan and
OSI IA visit job sites together looking for areas where
safety can be improved.1'he committee gathers monthly
in a conference setting to discuss their findings and to
formulate steps to improve safety. Ryan views OSI IA's
expertise as an unmatched resource for improving safety.
RYAN AND ITS SUBCONTRACTORS WORK TOGETHER TO IMPROVE SAFETY AT THE JOB SITE All
subcontractors supply Ryan with a copy of their safety programs and sign a contract
committing them to various Ryan and OSI IA directed initiatives. Subcontractors participate
in weekly safety committee meetings and toolbox talks where they discuss specific job site
safety issues.
SAFETY LEADERSHIP AT RYAN
SAFETY HIGHLIGHTS
Across the country in 2009, over more than 5.1 million hours were worked on Ryan
jobsite without a single OSI IA citation
Ryan was the first contractor to receive 3M Company's Safety Award
0.75 experience modification factor for workers' compensation for 2010
Our safety manual is used by OSI IA Consultation as an example for others to follow
Consistent high marks from insurance loss control consultants touring Ryan job sites
Ryan attained the highest level from the Safety Partnership Program in Illinois between
OSI IA and BAGC
RYAN SAFETY PROGRAM OVERVIEW
The Ryan Safety Program consists of the following categories:
PROGRAMS, PROCEDURES AND REGULATIONS
Construction and Property Safety Manuals provide employees with safety information
Fall protection required at and above six feet for all trades
Site Specific Safety Manuals describe safety issues and requirements for each site
Subcontractor Pre construction Safety Meetings are held to review the contract
and the Site Specific Safety Manual. Individual safety orientations are held by each
subcontractor for their employees with documentation provided to Ryan
OSI IA Outreach Program is a partnership with OSI IA Consultation involving monthly
walkthroughs of selected job sites and site safety committee meetings
Job site safety inspections occur on a weekly basis
Corporate and job site safety committee meetings are held monthly
Non- monetary safety incentive program
I ligh visibility apparel required for all workers on all jobs when exposed to moving
equipment
Drug screening program for all post - accident, post - injury and Ryan new hires
In 2005, random drug screening was added for all Ryan employees deemed to be in a
safety sensitive position
LEED APPROACH
Ryan delivered a pre- engineered LEED building in 11 months. That is really unique. We are now true
believers! Anyone at any price point can build a LEED building."
Mike Driscoll, Manager of Facilities Engineering, Rockwell Collins
LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED) is a voluntary,
consensus -based standard for developing high performance, sustainable
buildings. In addition to reduced environmental impacts, benefits can
include improved occupant health and productivity, better integration of
the project into the community, a reflection of organizational values, and a
dramatic reduction in building operating costs.
LEED IS A NATURAL EXTENSION OF RYAN'S DESIGN -BUILD PROCESS.
Understanding that every design option has a cost and a benefit is at the
foundation of both LEED analysis and Ryan's preconstmcdon process.
DESIGN AND BUDGET ALIGNMENT IS
ESSENTIAL DURING THE DESIGN PHASE.
Considerations of energy and
atmosphere (building skin
performance, equipment efficiency),
materials and resources (recycled
content, rapid growth and regionally
sourced materials), and indoor
environmental quality (ventilation,
filtration, materials emissions) offer
the most LEED points but also have
sustainable options are weighed for life -
lesign -build experience, your Ryan
r budged schedule and other goals with
cation initiatives. Our expertise can help
on any project, from one incorporating
3ursuing LEED, to a facility aiming for
LEED Platinum certification.
Your LEED- accredited Ryan project manager and project team are trained
NORTHERN ARIZONA UNIVERSITY to assist you In defining your LEED Objectives and identifying your project's targetedCOLLEGEOFBUSINESS
ADMINISTRATION LEED level: Certified, Silver, Gold or Platinum. Project objectives and constraints are then
NAU wanted a sustainable, energy-
efficient building with low analyzed in the context of the six major LEED categories: sustainable sites, water
maintenance costs, as well as a
building that would serve as a efficiency, energy & atmosphere, materials & resources, indoor environmental quality, and
landmark for the South Campus. innovation In design.
AN ESTABLISHED COLLABORATIVE PROCESS IS VITAL TO A LEED PROJECT. Architects,
engineers and project managers working together early in the process can have a great
impact on environmental stewardship and energy use in the selection and development of a
sustainable site. Synergies among credit categories can offer increased benefits at reduced
upfront costs when a palette of credits is selected by an experienced, well- integrated team.
DESIGN AND BUDGET ALIGNMENT IS
ESSENTIAL DURING THE DESIGN PHASE.
Considerations of energy and
atmosphere (building skin
performance, equipment efficiency),
materials and resources (recycled
content, rapid growth and regionally
sourced materials), and indoor
environmental quality (ventilation,
filtration, materials emissions) offer
the most LEED points but also have
sustainable options are weighed for life -
lesign -build experience, your Ryan
r budged schedule and other goals with
cation initiatives. Our expertise can help
on any project, from one incorporating
3ursuing LEED, to a facility aiming for
LEED Platinum certification.
RYAN EXPERIENCE WITH LEED
Ryan executed flawlessly. They were a true partner. We cannot say enough about their ability to
track the LEED criteria and educate subcontractors about LEED."
CT Ling, Senior Mechanical Engineer, Facilities Engineering, Rockwell Collins
HNI CORPORATION /GUNLOCKE FACILITY, MUSCATINE, IA
TWO MARKETPOINTE, BLOOMINGTON, MN
EDWARD AND LESLYE PHILLIPS FAMILY FOUNDATION, MINNEAPOLIS, MN
POLARIS INDUSTRIES, INC., WYOMING, MN
SUSTAINABLE BUILDING PRACTICES ARE BUILT UPON THE
CONCEPT OF INTEGRATED DESIGN, and integrated design
is the heart of Ryan's integrated project delivery. Our
expertise can inform the LEED process and help you
balance your design priorities — energy efficiency,
utility, aesthetics, lifecycle costs, indoor air quality and
operations — with your budget and schedule goals in
the earliest stages of the design and building process. The
result will be your LEED building delivered on -time, on
budget and with exceptional service.
Ryan has a strong track record of constructing LEED
buildings. As a part of our own sustainability policy,
Ryan evaluates all projects against the LEED criteria,
and helps customers identify opportunities to maximize
energy efficiency, obtain LEED certification or pursue
other sustainability opportunities depending on their
organization's goals.
RYAN'S LEED- CERTIFIED PROJECTS:
Rockwell Collins Building 130, Cedar Rapids, IA
LEED -NC GOLD LEVEL
CB Richard Ellis Offices, Bloomington, MN
LEED -CI GOLD LEVEL
The W.A. Franke College of Business at Northern
Arizona University, Flagstaff, AZ
LEED -NC GOLD LEVEL
North Central Association, Tempe, AZ
LEED -NC GOLD LEVEL
HNI Corporation /Cunlocke Facility, Muscatine, IA
LEED -NC SILVER LEVEL
Polaris Industries, Inc., Wyoming, MN
LEED -NC CERTIFIED LEVEL
Towers at Bressi Ranch, Carlsbad, CA
LEED -NC CERTIFIED LEVEL
Rosemont Corporate Center, Rosemont, IL
LEED -NC GOLD LEVEL
NATIONWIDE OPERATION CENTER, DES MOINES, IA
GANDER MOUNTAIN, PALM BEACH GARDENS, FL
THE TOWERS AT BRESSI RANCH, CARLSBAD, CA
THE MOSAIC COMPANY, LITHIA, FL
RYAN EXPERIENCE WITH LEED
Warren E. Burger Federal Building and U.S.
Courthouse, St. Paul, MN
LEED -CI SILVER LEVEL
Gander Mountain, Palm Beach Gardens, FL
LEED -NC CERTIFIED LEVEL
KJWW Engineering, Davenport, IA
LEED -CI SILVER LEVEL
Edward and Leslye Phillips Family Foundation,
Minneapolis, MN
LEED -CI GOLD LEVEL
Nationwide Operation Center, Des Moines, IA
LEED -NC CERTIFIED LEVEL
Rockwell Collins Building 131, Cedar Rapids, IA
LEED -NC SILVER LEVEL
Two MarketPointe, Bloomington, MN
LEED -CS GOLD LEVEL
The Mosaic Company, Lithia, FL
LEED -NC GOLD LEVEL
123 Mission (Lobby), San Francisco, CA
LEED -CI GOLD LEVEL
Crescent Chase, Building 2, Johnston, IA
LEED -NC CERTIFIED LEVEL
LEED REGISTERED PROJECTS (PENDING CERTIFICATION):
John Deere Credit, Phase II, Johnston, IA
LEED -CI GOLD LEVEL
3900 Camelback, Phoenix, AZ
LEED -NC SILVER LEVEL
Deere & Company Corporate Headquarters,
Moline, IL
LEED -CI SILVER LEVEL
DELTA DENTAL, NAPERVILLE, It
WARREN E. BURGER FEDERAL BUILDING AND U.S. COURTHOUSE, ST. PAUL, MN
r,....III I'
a7 7• E O ..aril
BISHOP HENRY WHIPPLE FEDERAL BUILDING, FORT SNELLING, MN
ROCKWELL COLONS BUILDING 131, CEDAR RAPIDS, IA
RYAN EXPERIENCE WITH LEED
Alliant Marshalltown IPO Training Center,
Marshalltown, IA
LEED -NC GOLD LEVEL
Alliant Osceola Operations Center, Osceola, IA
LEED -NC CERTIFIED LEVEL
Delta Dental of Illinois, Naperville, Illinois
LEED -NC SILVER LEVEL
United States Courthouse, Cedar Rapids, IA
LEED -NC SILVER LEVEL
Whispering Willow, Wind Farm Operations and
Maintenance Building, Iowa Falls, IA
LEED -NC GOLD LEVEL
Ryan Companies US, Inc. Corporate Office,
Naperville, IL
LEED -CI SILVER LEVEL
Century Trails Senior Housing, Maplewood, MN
LEED -NC PLATINUM LEVEL
Maricopa County Courthouse, Phoenix, AZ
LEED -NC SILVER LEVEL
Sheraton Desert Cove Resort & Spa,
Cathedral City, CA
LEED -NC SILVER LEVEL
Federal Bureau of Investigation (FBI) Southwest,
Phoenix, AZ
LEED -NC SILVER LEVEL
Bishop Henry Whipple Federal Building,
Minneapolis, MN
LEED -NC SILVER LEVEL
Lexington Commons, St. Paul, MN
LEED -CI SILVER LEVEL
Above) Rebuilding Together —
Valley of the Sun
Right) Ronald McDonald House
Groundbreaking
Ryan/Target Golf Event— Benefitting
Sharing And Caring Hands
COMMUNITY SUPPORT
Partial List
It was extremely generous of Ryan to donate their profit. We couldn't have done it without you."
William Galbraith, Chairman of the Board, Community Health Free Clinic
ADOPT -A- FAMILY
ADOPT -A- HIGHWAY – STATE OF MN
AIDS
ALZHEIMER'S ASSOCIATION
AMERICAN CANCER SOCIETY
AMERICAN DIABETES ASSOCIATION
AMERICAN GI FORUM VETERANS
AMERICAN HEART FOUNDATION
AMERICAN LEGION
AMERICAN RED CROSS
AMERICAN REFUGEE COMMITTEE
ANIMALADOPTION CENTER
ANIMAL HUMANE SOCIETY
ANNUAL CATHOLICAPPEAL
ARIZONA SCIENCE CENTER
BETH MENSING KIDNEY
FOUNDATION
BETHESDA LUTHERAN HOMES &
SERVICES
BIG BROTHERS /BIG SISTERS
BOUNDARY WATERS FOUNDATION
BOYS & GIRLS CLUB OF AMERICA
BROKERS FOR KIDS
CAMPHILL VILLAGE MINNESOTA
CAMPUS MISSIONS INTERNATIONAL
CANCER KIDS FUND
CANINE COMPANIONS FOR
INDEPENDENCE
CATHERINE McAULEY CENTER
CATHOLIC CHARITIES
CEDAR RAPIDS SYMPHONY
CEDAR VALLEY HABITAT FOR
HUMANITY
CHILDHELP USA
CHILDREN'S CANCER RESEARCH
FUND
CHILDREN'S DIABETES
FOUNDATION
CHILDREN'S HOME SOCIETY
CLEAN WATER ACTION
CONFIDENCE LEARNING CENTER
CORNERHOUSE FUNDRAISER
COURAGE CENTER
DISABLED AMERICAN VETERANS
EMERGENCY FOODSHELF
NETWORK
ESPECIALLY FOR YOU –WOMEN'S
BREAST CANCER WALK
EVERCARE OF MINNESOTA
FAITH HOUSE
FAMILY SERVICESAGENCY
FANTASY FLIGHT
FEED MY PEOPLE
FESTIVAL OF LIGHTS
FESTIVAL OF TREES
FOOD FOR THE HUNGRY
FREEDOM FESTIVAL
GIFT OF MARY CHILDREN'S HOME
GIRL SCOUT COUNCIL OF GREATER
MINNEAPOLIS
HABITAT FOR HUMANITY
HARRIET TUBMAN CENTER
HOMES FOR HOPE
HORIZON HOUSE
HOSPITALITY HOUSE
HOUSE OF CHARITY
J.N. "DING" DARLING FOUNDATION
JUNIOR ACHIEVEMENT
JUVENILE DIABETES FOUNDATION
LEUKEMIA FOUNDATION
LISLE TOWNSHIP FOOD PANTRY
MAKE -A -WISH FOUNDATION
MARCH OF DIMES
MARCY- HOLMES NEIGHBORHOOD
ASSOC.
MAYO FOUNDATION
MEDICAL AMBASSADORS
INTERNATIONAL
MEMORIAL BLOOD CENTER
MERCY COMMUNITY HEALTH
FOUNDATION
MERCY MEDICAL CENTER
Top) Annual Tree Planting
Above) A Day For Downtown
Right) Juyenlle Dlabetes Foundation
Walk To Cure
MINNEAPOLIS CHILDREN'S
HOSPITAL
MINNESOTA CENTER FOR
ENVIRONMENTAL ADVOCACY
MINNESOTA FOOD SHELF
ASSOCIATION
MINNESOTA LANDSCAPE
ARBORETUM FOUNDATION
MINNESOTA ORCHESTRAL
ASSOCIATION
MINNESOTA PUBLIC RADIO
MINNESOTA SPECIAL OLYMPICS
MINNESOTATEEN CHALLENGE
MINNESOTA WWII VETERAN'S
MEMORIAL
MISSIONARIES OF AFRICA
e
f
COMMUNITY SUPPORT
Partial List
MOTHERS AGAINST DRUNK
DRIVING
MS SOCIETY
MUSCULAR DYSTROPHY
ASSOCIATION
NATIONAL PARKS & CONSERVATION
ASSOC.
NATURE CONSERVANCY
NOTRE DAME /ST. MARY'S CHILDREN
PAGE EDUCATION FOUNDATION
PARTNERS IN MISSION
PEOPLE TO PEOPLE
PHOENIX DOWNTOWN
COMMUNITY DEVELOPMENT CORP
PHOENIX DOWNTOWN YMCA
PHOENIX SYMPHONY
RAPTOR CENTER
REBUILDING TOGETHER VALLEY OF
THESUN
RESTART
RONALD MCDONALD HOUSE
SALVATION ARMY
SANTAANONYMOUS
SHARING AND CARING HANDS
SISTER KENNY INSTITUTE
SPECIAL OLYMPICS
ST JOSEPH'S HOME FOR CHILDREN
ST. LUKE'S HOSPITAL
Sr. VINCENT DE PAUL
SUSAN KILEY MEMORIAL
SCHOLARSHIP FUND
TEMPE PREPARATORY ACADEMY
THE LIVING BANK
TINY TIM CHILDREN'S FUND
TOYS FOR TOTS
UNITED CEREBRAL PALSY
UNITED NEGRO COLLEGE FUND
UNITED WAY
VALLEY PARTNERSHIP
VERITAS PREPARATORY ACADEMY
VISION LOSS RESOURCES
WILDLIFE REHABILITATION CENTER
OF MINNESOTA
WILLIS DADY HOMELESS SHELTER
WORLD VISION
YOUTH EMERGING SERVICE
OUTREACH NETWORK
YMCA
2011 REAL ESTATE AND
DEVELOPMENT (RED) AWARD
Best Public Project
Presented by Arizona Commercial
Real Estate Magazine (AZRE)
THE OUTSTANDING BUILDING OF
THE YEAR (TOBY) AWARD 2010
500,000 - 1,000,000 SF
Presented by Building Owners
and Managers Association (BOMA) Miami -Dade
NAIOP MINNESOTA
2010 AWARD OF EXCELLENCE
SINGLE STORY OFFICE /OFFICE FLEX
Presented by NAIOP Minnesota
Rasmussen College, Blaine, MN
BEST OF THE BEST
NATIONAL ARCHITECTURE AWARD
BEST CULTURAL PROJECT
Presented by Engineering News - Record
Musical Instrument MuseumPhoenix, AZ
NAIOP TAMPA BAY
2010 OUTSTANDING
DEVELOPER OF THE YEAR
NAIOP TAMPA BAY
2010 NAIOP OUTSTANDING OFFICE
BUILDING OF THE YEAR
Presented by NAIOP Tampa Boy
The Mosaic Company, Lithia, FL
2010 FAB AWARD
GOVERNMENT /INSTITUTIONAL
Presented by International Interior
Design Association Northland Chapter
Twin Cities Cristo Rey Jesuit High
School and Colin Powell Youth
Leadership Center
Minneapolis, MN
TEMPORARYCOURTS
DEDICATION AWARD
Presented by U.S. General Services
Adminstration, U.S. Courthouse,
Cedar Rapids, IA
2009 RECONSTRUCTION AWARDPLATINUM
Presented by Building Design +
Construction, W Minneapolis — The
Foshoy, Minneapolis, MN
2009 PRESERVATION AWARD
Presented by the Preservation Alliance
of Minnesota, Warren E. Burger
Federal Building — U.S. Courthouse
St. Paul, MN
2009 GOLD NUGGET AWARD
FOR OUTSTANDING REHAB
COMMERCIAL OR INDUSTRIALPROJECT
Presented by Pacific Coast
Builders Conference
Comelbock Village Racquet &
Health Club, Phoenix, AZ
P.R.I.D.E MERIT AWARD, PUBLICFACILITY
Presented by International Interior
Design Association
Comelbock Village Racquet &
Health Club, Phoenix, AZ
FIRST PLACE, PUBLIC FACILITY
Presented by American Society of
Interior Designers Arizona
North Chapter
Comelback Village Racquet &
Health Club, Phoenix, AZ
FIRST PLACE P.R.I.D.E., HOSPITALITYRESTAURANT
Presented by International Interior
Design Association
The Spa at Comelbock Village Racquet
Health Club, Phoenix, AZ
SECOND PLACE, HOSPITALITY
Presented by American Society of
Interior Designers
The Spa at Comelbock Village Racquet
Health Club, Phoenix, AZ
2009 OUTSTANDING DESIGN +
ARCHITECTURE IN EDUCATION,
HONORABLE MENTION
Presented by Education Design
Showcase, High Country Conference
Center at Northern Arizona University
Flagstaff, AZ
2009 DESIGN -BUILD EXCELLENCE
AWARD, BEST PROJECT
REHABILITATION/RENOVATION/ RESTORATION
Presented by the Design -Build Institute
of Americo, Upper - Midwest Chapter
W Minneapolis - The Foshoy
Minneapolis, MN
2008 MINNEAPOLIS MERIT AWARD
Presented by American Institute of
Architects (AIA), Twin Cities Cristo Rey
Jesuit High School /Colin Powell Youth
Leadership Center, Minneapolis, MN
BEST OF 2008: ARIZONA FIRST
PLACE AWARD, RENOVATION/
RESTORATION CATEGORY
Presented by Southwest
Contractor Magazine
Comelbock Village Racquet &
Health Club, Phoenix, AZ
2008 TOP PROJECT
Presented by Finance and Commerce
W Minneapolis - The Foshoy
Minneapolis, MN
2008 TOP PROJECT
Presented by Finance and Commerce
Two MorketPointe, Bloomington, MN
2008 TOP PROJECT
Presented by Finance and Commerce
Tronsomo Medical, Inc.
New Brighton, MN
2008 PROJECT TEAM
OF THE YEAR AWARD
Presented by Target Corporation
Food Distribution Center, Lake City, FL
2008 MINNESOTA PRESERVATION
AWARD, ADAPTIVE REUSE
Presented by Preservation Alliance
of Minnesota, W Minneapolis - The
Foshoy, Minneapolis, MN
2008 MINNESOTA PRESERVATION
AWARD, ADAPTIVE REUSE
Presented by Preservation Alliance of
Minnesota, The Phillips Foundation
Office, Minneapolis, MN
2008 MINNESOTA PRESERVATION
AWARD, CHARLES NELSON AWARD
FOR EXCELLENCE
Presented by Preservation Alliance
of Minnesota, W Minneapolis - The
Foshoy, Minneapolis, MN
2008 #1 COMMERCIAL DEVELOPER
The Best of Arizona Business 2008
Ranking Arizona, Presented by Arizona
Business Magazine
2008 MINNESOTA PRESERVATION
AWARD, EXCELLENCE IN
SUSTAINABLE DESIGN
Presented by Preservation Alliance of
Minnesota, The Phillips Foundation
Office, Minneapolis, MN
2008 CAE CITATION AWARD, GREAT
EDUCATIONAL PLANNING
Presented by American Institute
of Architects' (AIA) Committee on
Education, Twin Cities Cristo Rey
Jesuit High School /Colin Powell Youth
Leadership Center, Minneapolis, MN
2008 AWARDS OF EXCELLENCE
SPECIAL RECOGNITION AWARD
Presented by Minnesota Construction
Association, Twin Cities Cristo Rey
Jesuit High School /Colin Powell Youth
Leadership Center, Minneapolis, MN
2008 GREEN INITIATIVE AWARD
Presented by Rockwell Collins, For
Rockwell Collins' Building 130
Cedar Rapids, IA
2007 NAIOP NATIONAL DEVELOPER
OF THE YEAR
2007 TOP PROJECT
Presented by Finance and Commerce
The Westin Minneapolis Hotel
Minneapolis, MN
2007 TOP PROJECT
Presented by Finance and Commerce
Twin Cities Cristo Rey Jesuit High
School /Colin Powell Youth Leadership
Center, Minneapolis, MN
2007 BEST IN REAL ESTATE
Best Hospitality Development/
Redevelopment and Best Overall
Presented by Minneapolis -St. Paul
Business Journal, W Minneapolis - The
Foshoy, Minneapolis, MN
2007 BEST IN REAL ESTATE
Best Office Development — Multi-
tenant and Best Green Project
Presented by Minneapolis -St. Paul
Business Journal, Two MorketPointeBloomington, MN
2007 BEST IN REAL ESTATE
Best Office Development — Build -to
Suit, Presented by Minneapolis -St.
Paul Business Journal, Tmnsomo
Medical, Inc., New Brighton, MN
AWARDS
Partial 2006 - 2011
2007 READERS' CHOICE AWARD
BEST HISTORIC REHABILITATION
Presented by Affordable Housing
Finance Magazine's
Midtown Exchange, Minneapolis, MN
2007 MINNEAPOLIS MERIT AWARD
Presented by American Institute of
Architects (AIA), Midtown Exchange
Minneapolis, MN
2007 NATIONAL MERIT AWARD FOR
BEST RENOVATION/REHABILITATION
Presented by Design -Build Institute of
Americo (DBIA), Midtown Exchange
Minneapolis, MN
2007 EXCELLENCE IN MASONRY
AND CONCRETE DESIGN AND
CONSTRUCTION AWARD
Presented by The Minnesota Concrete
and Masonry Contractors Association
QLogic Corporation, Shakopee, MN
2007 PRESERVATION AWARD FOR
ADAPTIVE RE -USE
Presented by the Preservation Alliance
of Minnesota, The Westin Minneapolis
Hotel, Minneapolis, MN
2007 RECONSTRUCTION AWARD
BRONZE LEVEL
Presented by Building Design &
Construction, The Westin Minneapolis
Hotel, Minneapolis, MN
2007 #1 COMMERCIAL DEVELOPER
The Best of Arizona Business, 2007
Ranking Arizona, Presented by
Arizona Business Magazine
2007 PREFERRED SUPPLIER AWARD
Presented by Rockwell Collins
Cedar Rapids, IA
2007 HERITAGE PRESERVATION
AWARD — ADAPTIVE REUSE
Presented by Minneapolis Heritage
Preservation Commission
The Westin Minneapolis Hotel
Minneapolis, MN
2007 AWARD OF EXCELLENCE
Presented by Notional Association of
Women in Construction (NAWIC) Quad
Cities Chapter
Lujack Lexus of Quad Cities
Davenport, lA
2007 AWARD OF MERIT
Presented by Notional Association of
Women in Construction (NAWIC) Quad
Cities Chopter, Lujack's Fitness Center
Davenport, lA
2007 AWARD OF MERIT
Presented by Notional Association of
Women in Construction (NAWIC) Quad
Cities Chopter, PCT, Inc.
Davenport, lA
20062007 OUTSTANDING PROJECT
Presented by Association of
Subcontractors and Affiliates (ASA)
of Chicago
Sears Centre Arena
Hoffman Estates, IL
WHAT OTHERS SAY ABOUT RYAN
We were very impressed with the work performed by our Ryan project team. Our building was turned
over to us a month earlier than promised. Our superintendent guided us in many decisions with his
experience —we welcomed his good knowledge. Our project manager was on top of everything and did a
fantastic job as well. Thank you very much!"
Hue Van Lien, Owner/President, Modern Manufacturing & Engineering, Inc.
Ryan was always professional, responsive, flexible with no headaches!"
Ed Faulstick, General Manager, GE Capital
Ryan has disciplined processes in place and managed the project schedule and cost very well. Thank
you for a job well done."
Mike Neleman, Director of Facilities, Rockwell Collins
All of our general contractors are good and each new project is better than the previous, which is, of
course, the expectation of us all. At this point our other contractors will have to raise their performance
levels to match those of Ryan based on the T -3810 project"
Tony Mills, Owners Site Representative, Target Corporation
It was a great experience done by true professionals. I would highly recommend Ryan in the future."
Sean Shannon, Managing Director, Illinois Hospitality
Ryan has a great team that brings the following things to the table that are good for us: prompt action
to problems; reasonable pricing to solve those problems; very timely response to changes and very
personable staff members."
Terry Jones, Director of Facilities, Chandler Regional Hospital
Outstanding group to work with!"
William E. Wilson, Construction Manager, Best Buy Co., Inc.
They were very responsive and the caliber of the project was super. The project manager's
professionalism was unmatched... top notch on all counts!"
Adria Renke, Vice President, Brophy College Preparatory
WHAT OTHERS SAY ABOUT RYAN
Ryan's personnel did an outstanding job based on all of the issues and procedures they were involved
in. In my 25 years in development and construction, the South Seas Resort reconstruction was the most
challenging job for any general contractor. Ryan's personnel performed professionally the entire
process. I personally want to thank of the individuals involved in this project"
Bob Offi, Senior Project Manager, Mariner Properties Development, Inc.
I always felt that the project managers had the market's best interest at heart and really marshaled the
forces to make sure we would open on time and on budget"
JoAnna Hicks, Assistant Executive Director, Neighborhood Development Center
The work authorization process was excellent, particularly considering the complexity of dealing with
insurance adjusters. All Ryan personnel were very professional, knowledgeable and extremely
responsive. We would use Ryan Companies again and highly recommend them to others."
Elaine Hawkins, President, Specialty Risk Management Services, Inc.
The project team was far superior to others I have worked with. Everyone I encountered at Ryan was a
professional' and behaved that way. It was a pleasure working with the members of Ryan's team."
John Wicks, Senior Project Managerof Design and Construction, Hennepin County Property
Services Department
Ryan very openly commits to being a team player with the owner. Their open style of communicating
and project management gives the owner confidence that there are no hidden agendas."
Paul Couture, Project Manager, University of Nebraska Lincoln
I haven't had the opportunity to work with a design -build company —Ryan is an excellent company with
quality personnel!"
Fred Greiner, Executive Vice President, Faraway Stores, Inc.
They were a cohesive team that communicated very well and kept us informed and on track to meet our
opening date goal. Best of the best!"
Jerry James, Regional Manager, Workplace Solutions
The space turned out exactly how I envisioned it! Your subcontractors were fabulous to work with."
Diane Dohrman, Business Process Leader, Cargill Industrial Starch
WHAT OTHERS SAY ABOUT RYAN
They were a pleasure to work with. They brought a project with a short timetable, inflexible budget and
complex dynamics to a very successful completion!"
Peter Beck, Liaison, Gabbert & Beck
We had no problems and they were 100% responsive!"
Jean Cooper, Nurse Manager, Orthopedics/Ophthalmology & Skilled Orthopedics Unit, Mercy
Medical Center
We had a great group of leadership staff on the project. They were fun to work with."
Kaye Englin, Vice President of Advancement & Church Relations, Beloit Residential Treatment
Facility
We were very pleased working with the staff on this project. They went above and beyond to make the
transition comfortable, easy and a pleasure."
Rose Krask, Regional Manager, RMK Management
As usual, the Ryan 'adapt and overcome' philosophy kicked in when problem cropped up ... I have done
so many projects with Ryan that I almost feel like part of the team."
Jon Smith, Facilities Manager, Lujack's Northpark Auto Plaza
The Ryan team has continued to exceed expectations at many stages of this important redevelopment.
Thank you for proving our selection of Ryan was the right one. I look forward to future celebrations of
successful work by Ryan."
Gary Schiff, Minneapolis City Council Ward 9
The depth and experience of Ryan's internal support staff has helped to maintain the overall design
developments, maintain schedules and cost control."
Dennis Crowe, Owner /Developer, Oppidan, Inc.
Ryan takes the time to think past the bid documents and includes what others turn into change
orders."
Ernie Vitucci, Director of Building Services, Metro Commercial Properties
To come in at or below budget is tough to do on any project, but to come in under budget and one
month ahead of schedule is excellent"
Antioch Relocation Team
SECTION 3
222 HENNEPIN
222 HENNEPIN AVENUE
MINNEAPOLIS, MN 55401
TYPE OF PROJECT
Mixed -Use, Retail,
Multi - family Residential
Anticipate LEED Silver Certification
for Mid -rise Residential
REFERENCE
Chris Culp
The Excelsior Group
11455 Viking Drive, Suite 350
Eden Prairie, MN 55344
612- 353 -3304
Mark Schoening
Tony Borrenco
Ryon Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN 55403
612- 492 -4000
ARCHITECT
Ryon Companies US, Inc.
Architect-of- Record
Humphreys 8 Partners Architects, LP.
Design Architect
RYAN'S RESPONSIBILITYDevelopment
Architecture 8 Engineering
Design -Build Construction
Capitol Markets
SIZE
579,706 SF; 286 units
CONSTRUCTION PERIOD
18 Months
DATE TO BE COMPLETED
Summer 2013
222 HENNEPIN
We're extremely excited to expand our offering of natural and organic products to an
even greater customer base."
Michael Basha ,, President, Midwest Region, Whole Foods Market
A SIGNATURE DEVELOPMENT FOR DOWNTOWN MINNEAPOLIS Ryan Companies and The
Excelsior Group collaborated to bring this 579,706- square -foot mixed -use project
to downtown Minneapolis. The project – called 222 Hennepin – will contain 286
luxury apartments and will be anchored by the first Whole Foods Market in downtown
Minneapolis.
Ryan Companies co- developed the project with The Excelsior Group, specialists in multi-
family real estate. Ryan is also the architect -of- record and builder for the project, which
will occupy a full city block at the corner of Hennepin and Washington Avenues. The
corner is one of the most prominent downtown, and development challenges had kept it
vacant for more than five years.
A 40,000 - square -foot Whole Foods Market will occupy the ground floor of the project.
Luxury apartments, featuring dramatic views of the downtown skyline and Mississippi
River, will occupy the second through sixth floors. Ryan Design worked with Humphreys
Partners Architects on the conceptual design of the project, which focused on
balancing the housing needs of sophisticated, discerning apartment residents with the
commercial needs of a top -tier urban grocery store.
Project amenities include a fourth -floor terrace with an outdoor pool, bocce ball area,
fire pit, dog walk, enclosed party room, cyber cafe and state -of- the -art fitness center.
The terrace itself affords spectacular views of the downtown Minneapolis skyline. The
construction of the project prioritizes sustainable building practices by incorporating
an existing 300 -stall parking structure, effectively wrapping the new project around the
existing improvements and re -using them.
This project is targeting Leadership in Energy and Environmental Design (LEED) Silver
certification for mid -rise residential.
BUILDING LASTING RELATIONSHIPS RYAN'
BROADWAYPLAZAREDEVELOPMENT
800 WEST BROADWAY
MINNEAPOLIS, MINNESOTA
TYPE OF PROJECTRetail
OfficeYWCA
Parking Romp
REFERENCETheresaCon
Great Neighborhoods Development
Corporation
1113 East Franklin Avenue, Suite 202
Minneapolis, MN 55404
ARCHITECT
Ryon Companies US, Inc.
RYAN'S RESPONSIBILITY
Development Assistance
Architecture 8 Engineering
Design -Build Construction
SIZE
121,000 SF — YWCA
40,000 SF — Retail and Office
327 -stall Parking Romp
CONSTRUCTION PERIOD
12 Months
DATE TO BE COMPLETED
June 2011
BROADWAY PLAZA
Ryan has brought its full design - build /development capabilities to support the efforts of the Great
Neighborhoods! Development Corporation to redevelop a key intersection of West Broadway in
North Minneapolis.
iocatea in JNortn rvimneapons,
and has long been on the
City's and several neighborhood organizations' wish lists for redevelopment. A variety
of different developers have considered the site, but were unable to create a viable plan
for the economically challenged neighborhood. Great Neighborhoods! Development
Corporation (GNDC) has partnered with Ryan to masterplan the redevelopment of
a key intersection for a mix of uses including: the largest YWCA in the nation, office
and neighborhood retail as well as a parking ramp. The project goals are to catalyze
community development, reduce crime, create jobs and promote community ownership.
In addition, Ryan is working with GNDC to incorporate high levels of minority- and
women -owned business participation on the project.
A SENSE OF PLACE Ryan's architects and engineers are working with community leaders
to ensure the project is vibrant, joyous and transformative with a strong sense of place.
The facility will feature a waterpark, pools, gym and fitness facilities, attracting up to
2,000 visitors daily. The YWCA will be LEED certified with a variety of energy efficient
strategies incorporated into the design as well as a green roof complete with running
track. It will also be a 24 -hour use facility. To ensure security and safety, GNDC will
partner with the Minneapolis Police Department to locate a safety center within the
project.
CANYON VILLAGE
UNION HILLS AND THOMPSONPARKWAY
SCOTTSDALE, AZ
TYPE OF PROJECTMixedUse
Office and Retail
REFERENCE
Ron Henry
Director of Development CommercialProperties
DMB Associates
7600 East Doubletree Ranch Road300
Scottsdale, AZ 85258
480 - 367 -7000
ARCHITECT
H &S International
RYAN'S RESPONSIBILITY
Contractor
Design -Build
SIZE
102,745 SF
CONSTRUCTION PERIOD
15 Months
DATE TO BE COMPLETED
January 2008
CANYON VILLAGE
DMB Associates and Ryan partner again to develop and build a chic urban gathering spot in
Northern Scottsdale, Arizona.
2' • sp
RYAN AND DMB & ASSOCIATES TEAM -UP AGAIN AT CANYON VILLAGE Canyon Village is a new
mixed -use development in Silverleaf, a luxury community within DMB & Associates'
DC Ranch development in north Scottsdale. Canyon Village will be home to luxury
offices, boutique retail and urban restaurants and it will be located just north of the
DC Ranch Village Health Club and Spa, which was also built by Ryan. Ryan and DMB
have partnered on other developments including DMB's Power Ranch and Verrado
communities.
A LUXURIOUS URBAN ENVIRONMENT The formal Mediterranean architecture, brought
to life by Bing Hu of H &S International, will take full advantage of the project's desert
surroundings. Innovative, fresh and contemporary, Canyon Village will feature an
appealing atmosphere with lush courtyards and fountains that will contribute to the
al fresco gathering spaces available to office and retail tenants. Fine furnishings and
luxurious finishes assist in fulfilling the overall ambiance of this new urban development.
Made up of four distinct buildings, Canyon Village will span 4.5 acres and include
100,000 square -feet of office, retail and restaurant space. Its first tenants will be Silverleaf
Realty and DMB Realty, two real estate entities owned by DMB. Silverleaf eventually will
have 700 homes on 2,000 acres. Its Tom Weiskopf- designed golf course opened in April
2002 and the private Silverleaf Club & Spa has been ranked among the Country's finest.
THE GROVE
North Memorial Health Care is extremely excited to be part of The Grove. This development,
containing retail, office, medical and hospitality uses, is an ideal mix of products and services
in a superb location."
David Cress, President & CEO, North Memorial Health Care
THE GROVE
INTERSTATE 94 AND HIGHWAY 610
MAPLE GROVE, MINNESOTA 55369
TYPE OF PROJECT
Mixed -use Development
REFERENCE
Bill McHale, Executive Vice President
Ryon Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN 55403
612- 492 -4000
RYAN'S RESPONSIBILITYDevelopment
Architecture 8 EngineeringConstruction
Real Estate Management
Legal and Environmental Services
ARCHITECT
Ryon Companies US, Inc.
RSP Architects
SIZE
200 Acres
CONSTRUCTION PERIOD
12 Months
DATE COMPLETE
Summer 2007
H A GATEWAY TO THE CITY OF MAPLE GROVE Blending the best of
retail, office, medical and hospitality, The Grove is a vital, master -
planned development which serves the expanding population of
the Twin Cities' northwest suburbs. Working closely with the City
of Maple Grove, the 200 -acre Ryan -owned development features
high - quality architecture utilizing traditional and contemporary
design elements. The overall design maintains some of the site's
native features and complements the city's existing amenities.
AN INTERCONNECTED MIX OF USES The Grove's retail component is anchored by
a 400,000- square -foot power center including Target and Home Depot. These
big -box retailers creatively mix with a 138,000- square -foot pedestrian- friendly
village featuring small shop storefronts of local, regional and national retailers
and restaurants, as well as a 600,000- square -foot medical campus featuring North
Memorial Hospital. The Grove incorporates walking paths throughout the site that
connect to adjacent park trails, in addition to several locations to gather and relax,
giving the development a cohesive, community feel.
UPPER LANDING
ST. PAUL, MINNESOTA
TYPE OF PROJECT
Luxury Villa Apartments
Mixed -use Retail
Office Areas
Parking Romps
REFERENCE
Collin Barr
President, Minnesota Region
Ryon Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN 55403
612- 492 -4000
ARCHITECT
KKE Architects
Pope Architects
RYAN'S RESPONSIBILITY
Development Management
Design -Build
SIZE
400 Apartment Units
21 Acres
CONSTRUCTION PERIOD
2002 -2005
UPPER LANDING
Upper Landing is the next phase of Saint Paul's riverfront development. I applaud the Centex and
Ryan commitment to a project that creates new homes that supports the community's
overall vision."
Patrick Seek Executive Director, Saint Paul Riverfront Corporation
BLOCK 1 BLOCK 2
BLOCK 3
BLOCKS 5 & 6
A NEW URBAN VILLAGE ON THE MISSISSIPPI RIVER. Upper Landing is a 600 -home
residential development that follows along 21 acres of St. Paul, Minnesota's prime
Mississippi riverfront. Just a few short steps away from the Science Museum of
Minnesota and across the river from a newly renovated Harriet Island Regional Park,
Upper Landing is a prime location for urban living and river views.
The overall development is predominately housing. Eight city blocks create an exciting
urban village with connections between the community, the river and a newly energized
downtown. This new neighborhood on the riverfront boasts market rate apartments,
affordable housing, high -end townhomes, condominiums and some commercial space.
The grounds are extensively landscaped, including two parks and a regional trail that
runs along the Mississippi River with an expansive open green space for public use.
THREE BLOCK NICOLLET MALL
800 - 1000 NICOLLET MALL
MINNEAPOLIS, MINNESOTA 55403
TYPE OF PROJECT
Class "A' Office BuildingRetail
Parking Romp
REFERENCE
Collin Barr
President, Minnesota Region
Ryon Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN 55403
612- 492 -4000
ARCHITECT
Ellerbe Becket
RYAN'S RESPONSIBILITYDevelopment
Legal and Environmental Services
Financing
Design -Build
Property Management
SIZE
3.5 Million SF
CONSTRUCTION PERIOD
48 Months
DATE COMPLETED
February 2002
THREE BLOCK NICOLLET MALL DEVELOPMENT
These projects bring over 3 million square feet of office space and over 15,000 people per day to
the south Nicollet Mall area. Ryan Companies US, Inc. has achieved a trifecto in the development
of this strategic downtown area in just four years. Only Ryan could have made this happen."
Sharon Sayles Belton, Former Mayor of Minneapolis
THREE CITY BLOCKS, 3.5 MILLION SQUARE FEET, 75 BUILDING STORIES COMPLETED IN FOUR
YEARS The Nicollet Mall, in the heart of Downtown Minneapolis, is a unique pedestrian
mall that combines a retail environment with a business community.
ANCHORING THE SOUTHERN END OF MINNEAPOLIS' DOWNTOWN Working with the City of
Minneapolis, the neighboring community, corporate users and the architectural firm of
Ellerbe Becket was critical to the success of this downtown revitalization effort. From
unique landscaping and sculptures, to the retail amenities, each phase of this project was
developed to meet the needs of this diverse community of end - users.
Major tenants whose headquarters occupy this three block area include: Target
Corporation, US Bancorp Piper JafFray, Xcel Energy and Oracle. Ryan's Minneapolis
office is also located in the 900 Nicollet building.
Target Corporation has chosen the 900 Nicollet location for its first two-story retail store
in a downtown setting. Next door is the corporate headquarters for Target Corporation
in Target Plaza. Target Plaza comprises 1.8 million square feet of office space in two, class
A' office towers to support Target operations across the country.
BUILDING LASTING RELATIONSHIPS IRYAN'
PROJECT EXPERIENCE FOR JIM BERGMAN
Senior Housing
Established in March 2006, Hometown Harbor Assisted Living is a 110 -unit living facility.
Senior Housing
Established in August 2006, Thomas Place Glenview is 143 -unit independent senior living facility.
Senior Housing
Established in October 2008, Acorn Hill Senior Assisted Living is a 29 -unit facility.
CROWN •
Family Housing
Established in 2008, Crown Road Estates is a community of 335 single - family homes with four bedrooms and 2.5 bathrooms.
THOMAS •
Senior Housing
Established in August 2010, Thomas Place Fox Lake is a 100 -unit independent senior living community.
THOMAS D•'
Senior Housing
Established in November 2010, Thomas Place Bettendorf is a 116 -unit independent senior living community.
BUILDING LASTING RELATIONSHIPS
f1YAN'
PROJECT EXPERIENCE FOR JIM BERGMAN
Senior Housing
Established in March 2011, Thomas Place Waukee is a 116 -unit independent senior living community.
SENIORGREENGABLES LIVING
EW
Senior Housing
Established in June 2011, Green Gables is a 48 -unit independent senior living community.
TOWN H OM ES
Family Housing
Established in August 2011, Waukee Family Townhomes is a communty of 45 duplexes for a total of 90 units.
HOMETOWN HARBOR EAST MOLINE
East Moline, IL
Senior Housing
Established in September 2011, Hometown Harbor East Moline is a 80 -unit independent senior living community.
WESTPORT
Family Housing
Anticipated to be completed in December 2011, Westport Terrace is 72 -unit family housing development.
Senior Housing
Established in March 2012, Thomas Place Gurnee is a 100 -unit independent senior living community.
BUILDING LASTING RELATIONSHIPS
f1YAN'
PROJECT EXPERIENCE FOR JIM BERGMAN
Senior Housing
Anticipated for February 2012, the East Dundee project consists of a 82 -unit independent senior living community and a family development of
38 single - family homes and 15 duplexes.
Senior Housing
Aniticipated for October 2012, Kade Courtyard Senior Living is a 82 -unit independent senior living community.
Senior Housing
Anticipated to be completed in March 2013, Thomas Place Orland Park is a 80 -unit independent senior living community.
BUILDING LASTING RELATIONSHIPS
f1YAN'
Updated 925112
PIONEER PROPERTYMANAGEMENT, INC.
65 Elm St., A O. Box 703
Platteville, Wisconsin 5381 8 -0 703
Pioneer Management was established in the fall of 1985 to provide effective management and
oversight for federally subsidized housing complexes financed through the U.S. Department of
Agriculture. In 1990 it changed from a sole proprietorship and became incorporated as Pioneer
Property Management, Inc. Management consists of Gary W. Fritz, Owner/President; Cynthia
E. Fritz, Owner /Compliance Manager, and Brian J. Fritz, Owner/New Business Development
Manager.
The main office is located at 65 Ehn Street, Platteville, Wisconsin. The business is staffed by the
following twenty -three full- time /part -time employees:
Gary W. Fritz, President
Cynthia E. Fritz, Compliance Manager
Brian J Fritz, New Business Development Manager
Karen Kisting, Accountant
Sandy Carey, Accounts Receivable
Gayle De Haan, Accounts Receivable
Julie Jentz, Accounting
Joely Saidykhan, Accounting /Bookkeeping/Financial Reporting
Christine Richardson, Accounting /Bookkeeping/Financial Reporting
Theresa McCarthy, Accounts Payable
Marcia Nelson, Accounts Payable
Jessica Fritz, Legal Administration
Chris McCall, Occupancy Specialist
LuAnn Wetter, Receptionist/Occupancy Specialist
Renee Geyer, Occupancy Specialist, Compliance Specialist
Barbara Larson, Occupancy Specialist
Linda Trickel, Project Oversite (3 -4 days per month)
Warren Reiser, Project Oversite (2 -3 days per month)
Willard Adams, Project Oversite (3 -4 days per month)
Sherri Von Glahn, Clerk (part-time)
Joanne Schlicher, Receptionist/Clerical
Anna Blair, District Manager, Illinois
Andrew Berlingeri, District Manager, Iowa
The address for the Illinois branch office is PPMI, P.O. Box 515, Sterling, Illinois 61081:
Jennifer Castillo, Property Manager /Occupancy Specialist
Martha Hunt, Real Estate Broker/Property Manager
Pioneer Property Management, Inc., currently manages ninety -three elderly and family housing
properties with a total of 3,832 units located in the states of Wisconsin, Illinois, Mississippi,
Indiana, Missouri, Arkansas and Iowa as follows:
12 Wisconsin properties, family housing, 286 units
26 Wisconsin properties, elderly housing, 511 units
15 Illinois properties, family housing, 683 units
15 Illinois properties, elderly housing, 893 units
3 Iowa properties, family housing, 212 units
15 Iowa properties, elderly housing, 722 units
1 Indiana property, family housing, 38 units
2 1 P a g e
1 Arkansas property, elderly housing, 64 units
1 Missouri property, family housing, 40 units
1 Missouri property, elderly housing, 48 units
3 Mississippi properties, family housing, 335 homes
Project records (i.e., financial and copies of tenant records) are kept in the office of Pioneer
Property Management, Inc., at 65 Elm Street, Platteville, Wisconsin. All compliance reporting is
prepared and submitted by the Pioneer Property Office. Pioneer Property Management, Inc. uses
cash accounting methods and keeps a set of books for each project it manages. All rent
payments are processed by the Pioneer Property Management, Inc. office. Fidelity bonding is
required for all complexes, therefore bonds are provided.
There is a professional business relationship between this management firm and the owners as
evidenced by the management agreement. The owners of the project are naturally committed to
the provision of clean, well - maintained housing as is this management firm. The owners' direct
involvement in the successful operations of projects is anticipated.
The majority of projects have USDA and/or tax credit fending involved and the accounting
procedures are set up to respond to their reporting requirements.
Rent -up begins 90 days prior to projected completion date. This includes a prior conference
between the owner and management personnel. Decisions are then made concerning
advertisement, affirmative marketing practices, tenant eligibility and tenant selection criteria.
Pioneer Property Management, Inc., personnel refer to the Affordable Housing Tax Credit,
HUD, IRS Section 42 and Rural Development program data for understanding of the
requirements for determining eligibility, tenant certifications and recertification's. Management
personnel will continue to attend workshops which provide updated information as it becomes
available at the state and federal levels. If the data in the office does not cover specific questions
or problems that the Management Agent might encounter, then the question is addressed to the
specific state office to ensure compliance with the tax credit program.
Pioneer Property Management manages five certified RCAC assisted living facilities (three in
Racine, WI, one in Mosinee, WI, and one in Davenport, IA) and complies with the
Administrative code HFS 89 of The State of Wisconsin licensing and The State of Iowa
licensing. The assisted living trained staff works in conjunction with occupancy specialists and
management to assure proper care of residents and tax credit compliance.
All occupancy specialists and upper level management staff attend training in regard to
requirements under Section 42, ADA, Fair Housing, and 504 regulations. All Pioneer Property
Management, Inc., staff is trained as noted below in reference to all applicants and tenants in
complexes managed by our firm.
Training for Fair Housing Compliance
With regard to rental data, in order to comply with all Fair Housing legislation in dealing with
all applicants and potential tenants' basic steps must be followed. All applicants for housing
must have the following completed in order to be considered for any unit: (1) a completed and
signed application form; (2) a signed general release of information authorization form; (3) a
signed income verification(s) form; (4) a signed asset verification form.
31Page
It is the policy of Pioneer Property Management, Inc. that all requests for application materials
be promptly and courteously handled. In the event that the request is made of a site manager
or caretaker at an apartment complex, it is required that even if a unit of the size needed by the
applicant is not currently available that the applicant is given all needed application materials.
Materials completed in application for an apartment are to be mailed or delivered to the address
noted on the application form.
In order that all staff are aware of the serious ramifications of failure to comply with Fair
Housing Laws in the rental of all our properties, the following are guidelines which must be
adhered to when dealing with every applicant for housing in complexes which we manage:
1) Housing in our complexes must be made available to all applicants eligible for
this affordable and/or market rate housing. We may not refuse to rent to or to
make available or deny a rental unit to any person because of race, color, religion,
sex, national origin, handicap or familial status.
2) If a unit is available, you may not tell a potential tenant /applicant one is not
available. Likewise, if no unit is available, you may not promise one to an
applicant/potential applicant. Until we know a tenant is vacating or has vacated,
we cannot promise that unit to anyone.
3) All information given to all prospective tenants must be offered regardless of
race, sex, religion, color, national origin, handicap or familial status. The same
courtesy in response and timeliness in response must be accorded to all applicants.
4) All applications from minorities will be processed according to the same
procedures used for all prospective tenants.
5) We may not induce any person or rent a rental unit by representations regarding
the entry or prospective entry into the project or neighborhood of persons of a
particular color, race, sex, religion, national origin, handicap or familial status.
6) Applicants and tenants must be considered for every unit for which they are
eligible. No one may be restricted to specific sections of the complex because
of race, sex, color, religion, national origin, handicap or familial status.
7) We may not discriminate against any person in the rental terms, conditions of
the rental of a dwelling unit or in the services of facilities because of race, sex,
religion, color, national origin, handicap or familial status.
8) In elderly housing, all residents must be elderly, handicapped and/or disabled
and/or age and income eligible to reside in the complex. In family housing, all
tenants /co- tenants must be legally of age to sign a lease in the state where the
complex is located.
Family housing may include elderly, handicapped, disabled, families, single
individuals, all of whom must meet income and eligibility guidelines to reside in
the complex.
9) Affirmative Fair Housing Marketing is our policy. A Plan is developed for each
and every complex. All Pioneer Property Management, Inc., employees must
comply to ensure we follow this Plan. We must abide by the Affirmative Fair
Housing Marketing Plan and federal and state fair housing laws. Failure to do
so can result in legal action against us in the form of a civil rights violation.
10) Any employee who willfully discriminates against any prospective applicant or
tenant in housing on the basis of race, color, sex, religion, handicap, or national
origin or familial status will be faced with disciplinary action and/or dismissal.
Any employee who fails to follow all required fair housing, waiting list and rental
procedures will be faced with disciplinary action and/or dismissal.
It is intended that there will be a site caretaker or manager for each complex. Site caretakers
41Page
are responsible for showing apartments, providing site maintenance and caring for the inside
and outside of the building. The site caretaker also issues keys to tenants and acts as liaison with
the tenants so that any maintenance work needed beyond the caretaker's capability is arranged for
and completed (i.e., plumber, electrician, drywall contractor, etc.). Cleaning of common areas is
performed by the caretaker so that the complex is kept in a clean and orderly manner. Site
managers actually manage individual properties, rentals, maintenance oversite, rent collections
and required paperwork (after completing tax credit compliance training). Supervisory personnel
of this firm will perform necessary inspections to ensure that all items are being properly
performed by the on -site manager and to direct necessary maintenance items. Care-
takers and managers are expected to have frequent phone contact with management personnel
in between inspections.
Resource information to better facilitate complex residents remaining in their apartments or to
facilitate their being able to maintain independent living will be provided by the management
firm to the tenants and posted in a prominent place at the complex. Management occupancy
specialists work with current and incoming tenants to provide them with availability of services
to better allow the tenant to maintain self - sufficiency. This includes providing information on
such items as meals -on- wheels, home healthcare, and independent living services available in
the community and area.
Tenants are informed in their lease of the procedure of filing a grievance against the owner. In
the event of an owner grievance against a tenant, a certified letter is sent out by Pioneer Property
Management, Inc., stating the grievance, what action is necessary to correct it and what action
will be taken if not corrected.
Pioneer Property Management, Inc., strives to provide efficient, accurate and up -to -date
management services to the properties under its management. Management and staff personnel
are committed to this end.
Properties Managed by Pioneer Property Management
WISCONSIN
FAMILY APTS.
Belmont Family Housing, LP 10 Bloomer Housing, LP 28
Prairie Street Housing, LP
Boscobel)
12 Ashland County Housing II, LP
Butternut)
8
Camp Douglas Housing, LP 12 Fox Lake Enterprises, LP 18
Genoa Plaza, LP 47 Grant -Ko Enterprises, LP 40
Hurley Housing, LP 18 Juneau Enterprises, LP 18
Laona Housing, LP 12 Merrill Family Housing, LP 32
New Auburn/Cornell Housing, LP 20 Niagara Family Housing, LP 10
Oconto Falls Enterprises, LP 16 Peshtigo Enterprises, LP 16
Platteville Family Housing, LP 16 Prairie du Chien Enterprises, LP 32
Prairie du Chien Housing, LP 18 Randolph Family Housing, LP 12
Rhinelander Family Housing, LP 32 St. Croix Falls Family Housing, LP 12
Solon Springs Housing, LP 12 Spooner Family Housing, LP 20
Waupaca Housing, LP 24 Wonewoc Housing, LP 16
Total: 26 Properties 511 Units
51Page
WISCONSIN
ELDERLY APTS.
Colby Housing, LP 12 Fifield Housing, LP 10
Hancock Housing, LP 12 House of Peace (Platteville) 24
Jackson Bay A Wisconsin LP 25 KAB Mosinee Properties I, LP
Assisted Living)
29
Badgerland Affordable Housing, LP 24 Platteville Enterprises, LP 24
KAB Racine Properties I, LP
Assisted Living)
14 KAB Racine Properties II, LP
Assisted Living)
72
KAB Racine Properties III, LP
Assisted Living)
24 Sturgeon Bay Housing, LP 16
Total: 12 Properties 286 Units
ILLINOIS
FAMILY APTS.
East Bank Pointe, LP 50 Mansur Wood Living Center, LP 115
Elizabeth Housing, LP 12 Yellow Creek Glen Family Housing, LP 27
Crowne Hill Estates, LP (Rock Falls) 42 Voss Brothers Lofts, LP (Rock Island) 35
Rock Falls Family, LP 15 Finlay Interest 3, LP (Roosevelt
School -- Decatur)
75
Partnership 18, LP (Centreville
Courts Apartments -Rock Island)
101 Sterling Family Housing, LP (Sterling
Townhomes- Sterling)
22
Jackson Square Lofts, LP (Rock
Island)
30 Brown Shoe Litchfield, LP (Brown
Shoe Factory Lofts- Litchfield)
47
LeRoy Properties Land Trust #1997 35 RHDC -1, LP
Hershey Manor - Rockford)
37
RHDC -2, LP
Kemper Manor- Rockford)
40
Total: 15 Properties 683 Units
ELDERLY APTS.
Ashton Housing, LP 24 Thomas Place, LP (Glenview) 144
Heartland Towers, LP (Silvis) 99 Keithsburg Housing, LP 12
Lacon Housing, LP 18 TPA Fox Lake Enterprises, LP 100
LaMoille Housing, LP 12 Milledgeville Properties LP 12
Heartland Park Elderly Living
Center, LP (Moline)
100 Morrison Elderly, LP (Morrison) 28
Rock Falls Elderly Living Center 72 Cotton Mill Estates, LP (Rock Island) 31
Hometown Harbor East Moline, LP 84 TPA Gurnee, LP 101
Timberline Terrace, LP (Quincy) 56 Total: 15 Properties 893 Units
INDIANA
FAMILY APTS.
Indiana Daffy, LLC (Ft. Wayne) 38 Total: 1 Property 38 Units
IOWA
FAMILY APTS.
Westport Terrace Apartments, LP
Keokuk)
72 JNB Waukee Family, LP (Waukee
Family Townhomes)
90
Dovetail Family Hsg, LP (Grimes) 50 Total: 3 Properties 212 Units
61Page
IOWA- CONTINUED
FAMILY ELDERLY
WISCONSIN
ELDERLY APTS.
ILLINOIS 15 Properties, 683 Units
Davenport Housing, LP (St.
Katherine's)
38 Davenport Housing II, LP (Lawlor &
Rohhnan)
50
Marycrest Housing, LLC (Petersen
Commons)
51 Davenport Housing N, LP (Walsh
Hall)
31
Marycrest MR, LLC (Upham West
Mansion)
28 Davenport V GP, LLC (Meadow
Crest II)
48
Meadow Crest GP, LLC (Meadow
Crest Gardens)
36 Davenport Housing. VII, LP
Henderson -Kone Library)
20
Maquoketa Housing, LP (Hurst
Cottage Apts.)
18 Maquoketa Housing. II, LP (Hurst
Hotel)
22
Muscatine Housing, LP (Cottage
Grove Apts.)
48 Welch Hotel, LP (Muscatine) 20
JNB Hometown Harbor - Waukee, LP 116 RCA North Liberty Living Center, LP 80
JNB Hometown Harbor- Bettendorf,
LP
116 Total: 15 Properties 722 Units
MISSOURI
FAMILY APTS.
Falcon's Way Townhomes, LP
Hidden Terrace Townhomes -St.
Charles)
40
Total: 1 Pro pert}, 40 Units
ELDERLY APTS.
Green Gables II Senior Living, LP
Wentzville)
48
Total: 1 Property 48 Units
ARKANSAS
ELDERLY APTS.
Home Harbor Hot Springs, LP 64
Total: 1 Property 64 Units
MISSISSIPPI
FAMILY HOMES
DD DEL THORTON HH L, LP 118 GG CROWN HILL 1, LP 118
GG CROWN HILL II, LP 99 Total: 3 Properties 1335H
GRAND TOTALS
PROPERTY FAMILY ELDERLY
WISCONSIN 26 Properties, 511 Units 12 Properties, 286 Units
ILLINOIS 15 Properties, 683 Units 15 Properties, 893 Units
INDIANA 1 Property, 38 Units
IOWA 3 Properties, 212 Units 15 Properties, 722 Units
ARKANSAS 1 Property, 64 Units
MISSOURI 1 Property, 40 Units 1 Property, 48 Units
MISSISSIPPI 3 Properties, 335 Homes
GRAND TOTAL 93 Properties 3,832 Units /Homes
SECTION 4
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SECTION 5
Fader
awwpwwmmmmo-
Bank
September 26, 2012
Mr. Jim Bergman
20 Sandstone Court
LeClaire, IA 52753
RE: Firm Commitment to Provide Construction Financing
College /Gilbert St Mixed Use Development, 60 UNITS (NEW CONSTRUCTION)
located in (Iowa City, IA)
This is a firm commitment for construction financing of the captioned development. Valley Bank,
Eldridge, Iowa is pleased to commit to the following construction financing on the captioned
proposed multifamily project based on the following terms:
CONSTRUCTION FINANCING FIRM COMMITMENT:
BORROWER: Jim Bergman
GUARANTORS: Jim Bergman
LOAN AMOUNT: $16,500,000 or 80% of appraised value, whichever is less (value to include
valuation for the tax credits valued at the time of the loan closing).
DISBURSEMENT: Funded in monthly construction draws
PURPOSE: Construction Financing for 60 UNITS (NEW CONSTRUCTION) located
in Iowa City, IA.
LOAN TERM: 24 Months
INTEREST RATE: Wall Street Journal Prime variable plus .50% adjusted daily
REPAYMENT: Monthly Interest Only Payments
SECURITY: First Real Estate Mortgage, Security Agreement, UCC
FEE: One percent (I%) of loan amount
Page -1-
m_ en,i3Or wwwhankatvailey<com ToJi freer (666)4152-5625 f2t
Ankeny • Bettendort • 8urlington • Clinton • Davenport • Donahue • Eldridge, Molinei • Peru • West Des Moines C
FEE: One percent (1 %) of loan amount
BORROWING
AUTHORIZATION:
LOAN
DOCUMENTS:
OTHER TERMS
and CONDPIIONS:
The Borrower is to furnish satisfactory evidence that the Borrower is duly
organized, in existence, and is in good standing and all documents required
to meet the terms of this commitment have been duly authorized and
submitted to the Bank. The Borrower(s) shall not be the subject of any
Bankruptcy, reorganization, or insolvency procedures, nor shall there be
any material change in their financial status at the time the loan is made
and there are no suits, actions or procedures pending or to their knowledge
threatened against them or any of their properties in any Court of any
Federal, state, Municipal or other governmental agency.
All loan documents will be of a form and substance satisfactory to Bank
with such provisions, as Bank customarily requires protecting its interest.
The loan documents may include but not be limited to:
1. A note evidencing the amount of the loan and terms of repayment.
2. Security Agreement
3. Real Estate Mortgage
Appraisal - An appraisal will be required, at Borrower's expense, prior to
closing. The appraisal will be performed by a
certified, Bank approved appraiser.
Fees — All credit report fees, attorney fees, EPA inspection fees, and
recording fees will be the Borrower's responsibility.
Title Opinion - A title insurance policy from a title company acceptable to
the Bank, based on an abstract of title brought up to date to within twenty
20) days of closing will be provided to the Bank at least forty -eight (48)
hours prior to the closing.
Page -2-
Environmental Audit - A Phase I Environmental will be required, at the
Borrower's expense, showing the property to be free of any environmental
contamination. The Phase I Audit must be performed by a firm on the
Bank's approved list.
Insurance - Liability and other appropriate insurance shall be maintained
during the note term in amounts, terms and with companies acceptable to
Bank.
This fum commitment is intended to provide a basis for concluding the transaction described
herein and is not necessarily inclusive of every term or condition to be met; the loan documents
will detail the entire transactional terms.
This firm commitment shall remain in effect until October 1, 2014. In the event that all of the
conditions precedent to the opening of the loan hereunder, including, but not limited to, those
specified herein shall not have been performed on or before October 1, 2014, the Bank may, at
its option, at any time thereafter terminate this firm commitment and all obligations hereunder.
In the event of such termination you shall nevertheless pay our loan fees, attorney fees, appraisal
fees, environmental audit fees and other related fees and expenses to the extent theretofore
incurred by the Bank.
The terms of this firm commitment may not be waived nor modified unless such waiver or
modification is expressly state and specifically agreed to by the parties in writing, and shall be
enforceable by the Bank and its successors and assigns.
Sincerely,
ys;Bunn
K
J
Executive Vice President
The foregoing proposal is hereby accepted this day- of { , 2012.
C
Page -3-
Freedom
0%%k,_J BANK
September 26, 2012
Mr. Jim Bergman
20 Sandstone Court
LeClaire, TA 52753
RE: Firm Commitment to Provide Permanent Financing
College /Gilbert St Mixed Use Development, 60 UNITS (NEW CONSTRUCTION)
located in (Iowa City, IA)
This is a firm commitment for permanent financing of the captioned development. Freedom
Bank, Sterling, Illinois is pleased to commit to the following permanent financing on the
captioned proposed multifamily project based on the following terms:
PERMANENT FINANCING FIRM COMMITMENT:
ICS "t
GUARANTORS:
Jim Bergman
Non - Recourse
LOAN AMOUNT: $7,500,000 or 60% of appraised value, whichever is less (value to include
valuation for the tax credits valued at the time of the loan closing).
DISBURSEMENT: Funded on when project is 90% occupied for 90 consecutive days and
project is cash flowing at a 1.15 debt coverage ratio.
PURPOSE: Permanent Financing for a new 60 -unit apartment complex in Iowa City,
IA.
LOAN TERM: 35 years
AMORTIZATION: 35 years
INTEREST RATE: 3.6%
REPAYMENT: Monthly Principal and Interest Payment
SECURITY: First Real Estate Mortgage, Security Agreement, UCC
FEE: One percent (I%) of loan amount
member
www.6ankatfreedom.comf
LENDER
BORROWING
AUTHORIZATION:
LOAN
DOCUMENTS:
OTHER TERMS
and CONDITIONS:
The Borrower is to furnish satisfactory evidence that the Borrower is duly
organized, in existence, and is in good standing and all documents required
to meet the terms of this commitment have been duly authorized and
submitted to the Bank. The Borrower(s) shall not be the subject of any
Bankruptcy, reorganization, or insolvency procedures, nor shall there be
any material change in their financial status at the time the loan is made
and there are no suits, actions or procedures pending or to their knowledge
threatened against them or any of their properties in any Court of any
Federal, state, Municipal or other governmental agency.
All loan documents will be of a form and substance satisfactory to Bank
with such provisions, as Bank customarily requires protecting its interest.
The loan documents may include but not be limited to:
1. A note evidencing the amount of the loan and terms of repayment.
2. Security Agreement
3. Real Estate Mortgage
Appraisal - An appraisal will be required, at Borrower's expense, prior to
closing. The appraisal will be performed by a certified, Bank approved
appraiser.
Fees — All credit report fees, attorney fees, EPA inspection fees, and
recording fees will be the Borrower's responsibility.
Title Opinion - A title insurance policy from a title company acceptable to
the Bank, based on an abstract of title brought up to date to within twenty
20) days of closing will be provided to the Bank at least forty-eight (48)
hours prior to the closing.
Environmental Audit - A Phase I Environmental will be required, at the
Borrower's expense, showing the property to be free of any environmental
contamination. The Phase 1 Audit must be performed by a firm on the
Bank's approved list.
Page -2-
Insurance - Liability and other appropriate insurance shall be maintained
during the note term in amounts, terms and with companies acceptable to
Bank.
This firm commitment is intended to provide a basis for concluding the transaction described
herein and is not necessarily inclusive of every term or condition to be met; the loan documents
will detail the entire transactional terms.
This fu7n commitment shall remain in effect until October I, 2014. In the event that all of the
conditions precedent to the opening of the loan hereunder, including, but not limited to, those
specified herein shall not have been performed on or before October 1, 2014, the Bank may, at
its option, at any time thereafter terminate this firm commitment and all obligations hereunder.
In the event of such termination you shall nevertheless pay our loan fees, attorney fees, appraisal
fees, environmental audit fees and other related fees and expenses to the extent theretofore
incurred by the Bank.
The terms of this firm commitment may not be waived nor modified unless such waiver or
modification is expressly stale and specifically agreed to by the parties in writing, and shall be
enforceable by the Bank and its successors and assigns.
Sincerely
FREE MB K
7
Kent Kennedy
Senior Vice Presi ent
The foregoing proposal is hereby accepted this _, day of 2012.
0
Jim Bergman
Page -3-
Insurance - Liability and other appropriate insurance shall be maintai ied
during the note term in amounts, terms and with companies acceptable to
Bank.
This firm commitment is intended to provide a basis for concluding the transaction described
herein and is not necessarily inclusive of every tern or condition to be met; the loan documents
will detail the entire transactional terms.
This firm commitment shall remain in effect until October 1, 2014. In the event that all of the
conditions precedent to the opening of the loan hereunder, including, but not limited to, those
specified herein shall not have been performed on or before October 1, 2014, the Bank may, at
its option, at any time thereafter terminate this firm commitment and all obligations hereunder.
In the event of such termination you shall nevertheless pay our loan fees, attorney fees, appraisal
fees, environmental audit fees and other related fees and expenses to the extent theretofore
incurred by the Bank.
The terms of this firm commitment may not be waived nor modified unless such waiver or
modification is expressly state and specifically agreed to by the parties in writing, and shall be
enforceable by the Bank and its successors and assigns.
Sincerely,
FREEDOM BANK
Kent Kennedy
Senior Vice President
The foregoing proposal is hereby accepted this D day of 2012.
Page -3-
64hm,' Credit Capital
Tax Credits-Real Estate Investments -Financing
September 25, 2012
Jeff Davidson, Director
Planning & Community Development
City of Iowa City, Iowa
410 East Washington Street
Iowa City, IA 52240
501 Santa Monica Blvd., Suite 702
Santa Monica, CA 90401
Main: (310) 393 -1514 Fax: (310) 393 -1504
www.creditcapitaMe.com
RE: DEVELOPER RECOMMENDATION
CITY OF IOWA CITY /COLLEGE & GILBERT STREETS NORTHEAST CORNER
PROJECT
Dear Mr. Davidson:
Our firm is a national syndicator of multifamily communities throughout the United States with a portfolio
of nearly $1 billion in tax advantaged rental communities. Mr. Bergman has been a client since 1999 and his
developments by financial size rank in out top ten client concentrations. His communities are inspected
annually by our asset managers for physical condition as well as financial performance. They are routinely
rated as "excellent" in appearance and maintenance and "superior" in terms of financial metrics.
We understand that Mr. Bergman together with the Ryau Companies US, Inc. ("Ryan"), another valued
client of our firm, is considering investing in Iowa City by developing a residential community over a ground
floor retail (grocery) outlet. The construction is expected to be financed in part by the federal New Markets
Tax Credit, an investment tax credit that our firm syndicates (in addition to other types of tax credits
including affordable housing, historic preservation, and renewable energy). As a team we have the track
record and financial capacity to successfully execute on this development plan.
We recognize that letters of recommendation sometimes came from authors whose bona fides have not
been established. In this case, we invite you to visit North Liberty Senior Living, 80 independent living
senior units at 410 Ashley Court in North Liberty. IA. Constructed in the midst of the recession with $15
million in equity raised by our firm, this $19.3 million dollar residential development, this project illustrates
the development standard that we seek for our institutional investor clients from developers like Mr.
Bergman and the Ryan Companies.
If you should have any questions regarding this unqualified recommendation, I am available at your
convenience at 310- 460 -4205.
Sincerely,
7
o D. Jokanovic
aging Member
SECTION 6
CEDAR RAPIDS
City of Five Seasons
September 27, 2012
Mr. Jeff Davidson
Planning and Community Development
City of Iowa City
410 East Washington Street
Iowa City, IA 52240
Dear Mr. Davidson:
I have been asked to provide a reference for Ryan Companies. This relates to their
pursuit of a project being developed at the corner of College and Gilbert Streets in
Iowa City.
I have had the privilege of seeing Ryan perform in two communities. As City
Manager of West Des Moines, Iowa I witnessed Ryan's work on several projects in
the greater Des Moines area. They count Principal, Pioneer and Deere Corporation
as key clients in that market. These three corporations are all extremely competent
purchasers of services. I know they have been pleased with Ryan's work based both
on the finished projects and the fact that Ryan has been invited back for other work.
While I am relatively new to Cedar Rapids, I am well aware of the impact Ryan has
had in the community. They have been an integral part of our downtown
redevelopment and most recently a partner with the City on several flood control
projects. In addition, one of the most significant projects in the City's history, the
new Federal Courthouse, is being completed by Ryan.
While I lack intimate knowledge of your project, I can verify that Ryan Companies,
US is a competent and respected mixed use developer. You can feel comfortable in
giving them serious consjejeration on this project.
Jdffrey A. Poll
City Manager
Office of the City Manager
City Hall • 101 First Street SE . Cedar Rapids, Iowa 52401 • (319) 206 -5000 • FAX (319) 206 -5144
a1 t of vi-)'V
vfir.
tiAblitii eci
September 24, 2012
66 Thillen Drive Mr. Jeff Davidson
Fox Lake, Illinois 60020
Planning & Community Development
Phone: 847- 587 -2151 City of Iowa City, Iowa
Fax: 847 - 587 -2237 410 East Washington Street
Iowa City, Iowa 52240
www.tnxldlee.n(g
Re: College Street/Gilbert Street Northwest Corner Site Proposal
Mayor
Edward Bender Dear Mr. Davidson
Village Clerk I am writing to you as a reference for the development team of Jim Bergman and Ryan
Kimberly Mate Companies. As Mayor of the Village of Fox Lake, I am pleased to recommend this team
Trustees
for a mixed -use development in your city.
Keuin Burt
Valerie Griseta Ryan Companies and Mr. Bergman have completed a $23.5 million, 100 -unit apartment
Nancy E. Koske building in our community that is dedicated to seniors who have limited financial
Jon Mumford resources. The property is 100% rented with a 2 year waiting list, and so have
Greg Murrey demonstrated their ability to understand special local market demand and provide a
Donny Schmit product that is very appealing. The design and construction quality have turned out as
they promised: full of attention to details, durable materials, stylish exterior architecture
and timeless interior design and finishes.
Maybe more impressive, was that this team was able to attract financing for this project
during the depths of a recession. They used thew experience and relationship with the
Illinois Housing Development Authority to obtain Section 42 tax credits, and then
leveraged their strong balance sheets to secure construction and permanent financing. At
a time when every community government is straining to maintain fiscal stability, the
Ryan - Bergman team came through for our Village with a project that contributed to our
revenues, as well as most needed housing type that contributes to the stability of our most
vulnerable population.
Please feel free to contact me if you would like to discuss our experience with Ryan
Companies and Jim Bergman. You can reach me at 847 -587 -3943.
Sincerely,
2 d r, Mayor
Village of Fox Lake
Kristina M. Kovarik, Mayor
September 24, 2012
The
1pmof
i - 325 North O'Plaine Road, Gurnee, Illinois 60031 -2636
Adnunistration 847 -599 -7500
VIII Building & Engineering 847 -599 -7550
Fax 847- 623 -9475
Mr. Jeff Davidson
Planning & Community Development
City of Iowa City, Iowa
410 East Washington Street
Iowa City, Iowa 52240
RE: College Street /Gilbert Street Northwest Corner Site Proposal
Dear Mr. Davidson:
www.gumee.il.us
I am pleased to serve as a reference for the development team of Jim Bergman and Ryan Companies. As Mayor of
The Village of Gurnee, I can attest to the design and development capabilities of these two entities because we
could not be more impressed with their performance in our Village.
Ryan Companies and Mr. Bergman have recently completed a $24 million, 100 -unit apartment building in our
community that is dedicated to seniors who have limited financial resources, The property was just opened in
April and is already 90% leased. They delivered on their promises of collaboration with our staff, high -end design,
and top - quality construction. Further, they proposed a residential community that limits the rents to "affordable
levels" without sacrificing on quality, and that is exactly what they delivered.
Executing on a development of this scale during these economic times is very difficult, Even though we researched
their financial capacity and found It to be strong, the capital markets were not friendly during the inception of this
project. They demonstrated their financial expertise when they secured low- income tax credits and favorable
financing from Citibank, and delivered the entire project earlier than we all expected.
Please feel free to contact me if you would like to discuss our experience with Ryan Companies and Jim Bergman.
You can reach me at 847 -599 -7510.
Sincer ly,
cl_ ytiKrina M. Kovarik
r
of Gurnee
BankofAmerica I
Merrill Lynch
September 27, 2012
Jeff Davidson, Director
Planning & Community Development
City of Iowa City, Iowa
410 East Washington Street
Iowa City, IA 52240
Re: Letter of Recommendation
City of Iowa City, Iowa — College & Gilbert Streets, Northeast Corner, Project
Dear Mr. Davidson:
It is my pleasure to provide this letter of support for James Bergman proposal to redevelop the College
Gilbert Streets Project site, in Iowa City, Iowa.
Bank of America, N.A. recently worked with Mr. Bergman on two low income housing transactions
located in the greater Chicago metropolitan area. On both transactions Bank of America funded the
construction loans and participated in the projects as an equity investor by purchasing low income
housing tax credits. In the aggregate, Bank of America has provided approximately $39,000,000 of debt
or equity investment to Mr. Bergman. Both projects closed in 2012 and are currently under construction.
Construction is progressing as planned.
The projects are an important affordable housing contribution to the local community and Bank of
America is proud to be a participant in the development efforts led by Mr. Bergman.
I highly recommend your consideration of Mr. Bergman proposal to successfully construct this
important housing and redevelopment in Iowa City. Please do not hesitate to contact me if you have
any questions.
Sincerely,
Bank of America, N.A.
Kristine L. Jurmu
Senior Vice President
eir(er t,lY tyar e, .) u.
September 26, 2012
Mr. Jeff Davidson
Planning & Commission Development
City of Iowa City, Iowa
410 East Washington Street
Iowa City, IA 52240
Re: College Street /Gilbert Street Northwest Corner Site Proposal
Dear Mr. Davidson:
I am happy to be a reference for Jim Bergman and am pleased to recommend his team for
a mixed -use development in Iowa City. Based on experience, financial strength and his
ability to obtain tax credits, Mr. Bergman has the ability to secure construction and
permanent financing and make this project a reality. Centennial Mortgage, Inc., for one,
would love to be involved in the financing.
Centennial Mortgage, Inc. is a national FHA Multifamily Lender with a servicing
portfolio exceeding $1 billion. In 2011, we were the 10th largest FHA Lender in the
country and provide both construction and permanent financing to the multifamily
industry. In the last 24 months, Centennial Mortgage, Inc. has financed four (4)
multifamily tax credit projects for Mr. Bergman, including a 90 unit project in Waukee,
Iowa. These projects serve seniors and families who have limited financial resources and
all four are completely leased and stabilized. I have personally toured Mr. Bergman's
projects and spoken with management and residents. I have been financing multifamily
projects for over 20 years and have seen a lot of both Section 42 and market rate projects.
I can honestly say that Mr. Bergman's projects offer world class design, materials and
finishes that would be an amenity to your beautiful city.
Please feel free to contact me if you would like to discuss our experience with Jim
Bergman in more detail.
Best regards,
J)D
Matthew Kane
President
218 W Washington Street, Suite 900 - South Bend, IN 46601 - (574) 233 -6773 - Far (574) 233 -6855
Citi Community Capital
C Iti
September 26, 2012
Jeff Davidson, Director
Planning & Community Development
City of Iowa City, Iowa
410 East Washington Street
Iowa City, IA 52240
Re: Letter of Recommendation
City of Iowa City, Iowa — College & Gilbert Streets Project, Northeast Corner
Dear Mr. Davidson:
It is my pleasure to provide this letter of support for James Bergman and the Ryan Companies
US, Inc. ( "Ryan Companies ") proposal to redevelop the College & Gilbert Streets project site, in
Iowa City, Iowa.
Citibank, N.A. (CITI) recently worked with Mr. Bergman and Ryan Companies on three senior
housing transactions located in the greater Chicago metropolitan area. On all three transactions
CITI funded the construction and permanent loans. On two of the transactions, CITI also
participated in the deals as an equity investor by purchasing low income housing tax credits
LIHTCs). In the aggregate, CITI has provided roughly $85,000,000 of debt and equity
investment to Mr. Bergman and Ryan Companies since 2009.
Construction and lease -up has been completed on two of the facilities funded by CITI. Both
properties have been a tremendous success and enjoyed significant demand from seniors
seeking affordable independent living. The third transaction is under construction and will be
completed ahead of initial projections.
Mr. Bergman and Ryan Companies have a proven track - record of developing vibrant senior living
communities and successfully working with public and private parties to bring multifaceted
development projects from design to occupancy. Mr. Bergman and Ryan Companies have
expertise in project planning, permitting, development, financing, construction, marketing and
management.
Citi Community Capital
1801 California St., Suite 3700, Denver, CO 80202
303) 308 -7401
I highly recommend your consideration of Mr. Bergman and the Ryan Companies' proposal to
successfully construct this important housing and redevelopment in lows City. Please do not
hesitate to contact me with more detailed questions.
Sincerely,
Citibank
c --
f
Mark Risch
Vice President
C}H Communtty Capital
1861 Calftmia St, SWts 3700, Denver, 00 66292
303) 306 -7401
SECTION 7
Letter of lament for Mixed Use Project
This Letter of Intent pertaining to a mixed use development Project is entered into on Seotember
27 2012 by and between dames Bergman ("Developer") and New Pioneer's Cooperative Society
New Pioneer ").
Recitals
A. New Pioneer is a cooperative association formed under the laws of the state of Iowa
presently operating grocery stores in Iowa City and Coralville, Iowa. New Pioneer is interested
in expanding and relocating its Iowa City retail business operations to an alternate facility that
better serves New Pioneer, its members and the comtatmity. New Pioneer is aware of the City of
Iowa City's interest in seeking requests for proposals for a project to be built at the northeast
quadrant of the intersection of College and Gilbert Streets in downtown Iowa City ( "Site's.
Subject to the requisite approvals of its membership and Board of Directors, New Pioneer is
interested in pursuing the Site as a possible location for its relocated business activities.
B. Developer is a developer of real estate projects and has indicated an interest in
developing a multi -use commercial/residential project on the Site (the "Project"). Once the City
of Iowa City ("City") completes and publishes its Request for Proposals f RFF% Developer is
contemplating submitting a proposal for the acquisition of the Site for development of the
Project.
C. New Pioneer is interested in being a part of the Developer's Project, and the Developer
desires having New Pioneer be an occupant of the Project, believing New Pioneer's participation
enhances the feasibility of the Project.
D. The parties wish to enter into a non - binding letter of intent to express the basic
parameters for their continuing discussions and negotiations for New Pioneer to be included as a
proposed occupant of the Project in connection with the Developer's proposal to be submitted to
the City, and ultimately for the parties to enter into a contract for New Pioneer's acquisition,
construction, fixturing, occupation, use and operation of a portion of the Developer's Project
Expression of Intentions
1. Participants. Developer intends to submit a timely Project proposal to the City in response
to the City's anticipated RFP. Developer further intends on being the principal developer and
owner of the Project, most likely through one or more development entities that Developer may
form. The parties recognize that a Project of this size may require additional investors and
financing through one or more sources. Additionally, the parties recognize that this Project will
require the involvement of multiple professional consultants and participants such as architects,
engineers and other design consultants; accountants and lawyers; financial institutions; a
contractor; and various potential investors. Developer agrees to keep New Pioneer advised of the
key participants to be involved in the design, construction and financing of the Project, as well as
principal investors therein.
2. The Project. As presently conceptualized, the Project will involve one level of underground
parking; retail (New Pioneer) on the first floor level; and three to six floors of residential. It is
anticipated that the building will be appropriately separated into condominiums to allow the
entire first floor, including mezzanine if required, to he a separate unit to be acquired by New
Pioneer, with other spaces in the building to be condominiumized as the Developer may deem
appropriate for either sale or leasing. The Project will be built on three parcels now owned by the
City as well as an additional parcel presently owned by MidAmerican Energy Company. The
land is described as follows:
Lots We and Six, Block 43, of the Original Town of Iowa City, Iowa.
The property, excludes the alleyway along its north boundary, and the property is immediately
adjacent to a City parking facility along its east property line.
3. Project Contingencies. The parties acknowledge that the following are among various
matters that constitute contingencies that must be satisfied for the Project to proceed:
a. The Developer submitting a proposal that is accepted by the City, such proposal to likely
contain elements for the City's financial support, such as reduced land cost, TIF
financing and /or other City participation.
b. Acquisition of the City's portion of the site under terms and conditions (price and any
covenants and/or restrictions) acceptable to Developer and New Pioneer.
c. Acquisition of MidAraerican's portion of the site under terms and conditions (price and
any covenants and /or restrictions) acceptable to Developer and New Pioneer.
d. Rezoning of the parcel as may be required for the anticipated uses (grocery/retail; office;
and multi- family residential) within the Project.
e. City site plan and building permit approval of the Project under terms and conditions
acceptable to the Developer and New Pioneer.
In addition to the foregoing general threshold contingencies, the Developer will also have usual
and customary Project feasibility considerations before its final decision to proceed with the
Project, including requirements and conditions that may be imposed by the Project's investors
and lenders. As such, the Project will be conditioned upon feasibility based on Project costs as
well as final financing arrangements, all to be acceptable to Developer.
4. Purchase Agreement. The Developer and New Pioneer anticipate continuing their
discussions and negotiations in working towards a mutually acceptable purchase agreement and
related documents ("Purchase Agreement") containing final terms and conditions for New
Pioneer's purchase of a condominium unit on the ground floor of the Project, built out to a level
of finish defined in the Purchase Agreement. The Purchase Agreement will provide substantially
more details tbnn presently contained in this Letter of Intent with regard to time frame, costs and
contract contingencies. This Letter of Intent expresses the parties' current intentions in general
terms for the purpose of providing a base for continuing discussions, negotiations, refinement of
Project details, and each party's more specific requirements.
Prior to entering into the Purchase Agreement it is anticipated that Developer will have waived
most if not all general and financial feasibility contingencies for proceeding with the Project, and
shall also be able to demonstrate such financial capacity as will be necessary to fully perform the
Project, whether through performance bonds, bank letters of credit or through other means
satisfactory to New Pioneer.
S. New Pioneer's Conditions and Contingencies. In order for New Pioneer to proceed with
any commitment to participate in the Project, it will have certain requirements including, but not
necessarily limited to, those in the following categories. Only preliminary specifications of these
conditions and contingencies are set forth below, which are expected to be refined and modified
as the parties get closer to implementing a Purchase Agreement:
A. A Xovals. New Pioneer's proceeding with this Project requires membership and
Board approvals. New Pioneer has obtained membership approval for entering into a purchase
agreement. Additional Board approval will need to be obtained at various phases of the Project
including, but not limited to, approval of the Purchase Agreement and satisfaction and/or waiver
of contingencies that may be reserved in the Purchase Agreement.
B. Plans and Specifications. Final plans and specifications for the configuration,
construction and shell build -out of New Pioneer's space within the Project will need to be
incorporated into the Purchase Agreement likely as an exhibit describing the intended condition
of the property at the time of closing and transfer of possession, Developer, through its
contractors, will construct the building and fit out the New Pioneer space to "Shell" condition
according to such plans and specifications as may be modified from time to time by agreement of
the parties and/or through a change order process. Subject to final plans and specifications, the
currently anticipated general features of the build -out of New Pioneer's space within the Project
to "Shell" condition, are as follows:
Shell Description
It is expected that the New Pioneer condominium writ will be 100% complete on
the exterior ofthe building less signage, and that the interior of the shell includes
the following:
18 foot clear height to the underside of the structure
Concrete Floor that is hard steel troweled
Exposed concrete columns, beams, and ceiling structure - unpainted
Provisions under -floor including rough -ins for refrigeration
Provisions for sanitary connections
The interior side of the exterior walls will include insulation and vapor
barrier only, ready for sheetrock
Rough -in provisions for a kitchen hood
Electrical service capacity for 1,200 AMPS
Mechanical, Plumbing, Electrical, and Fire Protection Systems and IT
infrastructure will be installed by New Pioneer in such a way that they are
independently metered systems
The entire build -out of the New Pioneer space in the Project from "Shell" to finished condition
will be completed by New Pioneer and/or its contractors.
C. Condominium Purchase Price, The final purchase price for the New Pioneer
condominium unit shall be subject to New Pioneer's and Developer's agreement.
It is anticipated that the purchase price will be determined based on the "Developer's
Cost' for the New Pioneer condominium unit built -out to "Shell" condition. The specific
mechanism and/or formula for determining the Developer's Cost will be subject to the agreement
of Developer and New Pioneer and specified in the Purchase Agreement. The Developer's Cost
will be based on design/build pricing and bidding, including a contractor's percentage acceptable
to Developer and New Pioneer, The possibility of a Developer's profit or fee is to be negotiated,
with any such amounts that might be included in the Developer's Cost to be subject to New
Pioneer's approval. The method of determining and verifying labor and material costs, and
allocating those to New Pioneer's condominium unit, will also be subject to New Pioneer's
approval. New Pioneer anticipates that Developer will allocate to the purchase price an equitable
portion of the Developer's Project costs for land acquisition, construction financing, construction
period insurance, construction period property tax, design, and construction, plus the
Developer's design and construction costs and fees of building out the New Pioneer
condominium unit "Shell" to the approved plans and specifications, but exclude from the
purchase price any marketing expense and sales commissions, and also exclude any Developer's
profit or fees except those subject to approval from New Pioneer. It is anticipated New Pioneer's
purchase price will include an equitable portion of the costs of the common elements of the
building that benefit or serve the New Pioneer unit, but will exclude any costs for common
elements that provide no benefit or are not used by the New Pioneer unit. All such costs shall be
established in a manner that is acceptable to New Pioneer, shall be within a maximum cost that
will be specified in the Purchase Agreement, and will be subject to reasonable verification by
New Pioneer (or its agent Loeffler Construction & Consulting). Payment by New Pioneer for its
completed condominium "Shell" unit shall be at the time of closing and transfer of possession,
with eamest money to be negotiated and specified in the Purchase Agreement,
New Pioneer and Developer each acknowledge that it is difficult to accurately estimate the total
Project cost and the cost of the New Pioneer space completed to "Shell" condition at the time of
responding to the City's RFP. Nevertheless, given information available as of the date of the
execution of this Letter of Intent, New Pioneer and Developer acknowledge that $1217 per square
foot of useable space is a good faith estimate of the "hard construction cost" for the "Shell ", with
the actual "Developer's Cost" to be subsequently specified in the Purchase Agreement or
otherwise by written agreement of New Pioneer and Developer. The "hard construction cost"
excludes "soft costs ", such as land costs and architect fees. These additional costs, when known
with accuracy, shall be equitably allocated between New Pioneer and the Developer, in a manner
that is subsequently agreed to in writing by both parties.
D. Financing_ Contingency. New Pioneer's purchase is subject to receiving a
commitment for financing its condominium unit upon such terms and conditions as may be
acceptable to New Pioneer in its sole determination. This finarcing contingency will either be
waived before entering into the Purchase Agreement or reserved in the Purchase Agreement with
a requirement for satisfaction or waiver before Developer commences New Pioneer's specific
Shell" build -out.
E. Public Support. To the extent that the Developer is able to obtain TIF financing
and/or other benefits through the City as an incentive to proceed with the Project, New Pioneer
anticipates receiving an equitable allocation of such benefit to reduce the costs of the New
Pioneer portion of the Project, because the city is very interested in the development having a
occupant such as New Pioneer in the project
F. DesigLa and Construction. The general design and configuration of the Project will
need to be compatible with New Pioneer's intended use of the first floor, and otherwise
acceptable by New Pioneer in its determination. Such consideration will include, but not
necessarily be limited to, the following:
i. Locations of entrances and exits
ii. Arrangements for deliveries, loading zones and trash storage
iii. Specified utilities, electrical service, gas service, mechanical and plumbing
iv. Exterior and interior design and materials
V. HVAC systems with separate operation from remainder of building
vi. Underfloor Refrigeration Rough -in
vii. Electrical Service separate from remainder of building
viii. Separate gas, water, electricity and other meters
ix. LEED design and implementation
X. Elevator service for both first floor and mezzanine
xi. Trash, composting and recycling facilities
xii. Parking immediately adjacent to the grocery entrance; 100 stalls
G. Project Personnel. Key personnel on the Project will need to be acceptable to New
Pioneer, including the architect, engineer, Project manager,. general contractor, key
subcontractors and possibly others.
H. Parking. New Pioneer's going forward will be contingent upon an agreement with
the City, satisfactory to New Pioneer in its sole determination, with regard to pedestrian access
from the adjacent parking ramp as well as for 100 parking spaces to be made exclusively
available for New Pioneer's use within the adjacent parking ramp. New Pioneer will be
responsible for negotiating such arrangements with the City, with the intent to have such matters
resolved, if possible, before entering into the Purchase Agreement, but otherwise a condition of
the Purchase Agreement.
I. Condominium Matters. New Pioneer's proceeding will be conditioned upon Developer
providing a condominium declaration that is acceptable to New Pioneer in al] respects. New
Pioneer anticipates that the condominium declaration will carefully define all units and all
general and limited common elements, specifically setting forth those limited common elements
that are for the exclusive use of New Pioneer's unit; the exclusive use of New Pioneer's unit and
some, but not all, of the other units; and the exclusive use of some of the other units but
excluding New Pioneer's unit. Additionally, the declaration will need to appropriately allocate
common element maintenance, repair and replacement expenses, as well as building operational
expenses, so that New Pioneer pays assessments only for those common elements and those
operational expenses that relate to those aspects of the building that serve or benefit New
Pioneer's unit, and that New Pioneer is not paying for the expenses associated exclusively with
one or more other units in the building. The process for assessments, building reserves, building
management, owners association, voting, insurance and other condominium matters will all need
to be acceptable to New Pioneer. The condominium declaration will either need to be approved
by New Pioneer before entering into the Purchase Agreement or its approval will become a
condition of the Purchase Agreement. Additionally, any rules in connection with the building's
operation will need to be compatible with New Pioneer's intended use, including but not limited
to those that may affect hours of operation or shipping and receiving.
I Basic Space Requirements. It is now anticipated that New Pioneer will have the
following space requirements within the Project:
i. Not less than 19,000 useable sq.ft. (net of stairs, elevator shafts, utility shafts and
other nonusable areas) on the first floor (street level) with direct pedestrian access to
the sidewalks on Gilbert and College Streets, as well as direct pedestrian access to the
adjacent parking ramp;
ii. Not less than 3,000 useable sq.ft, on a mezzanine or 2nd floor for store operations
which will include offices, meeting rooms, employee locker rooms and the server
room, etc.
iii. Not less than 600 useable sq.ft, of mechanical/equipment room space in the lower
parking level
iv. Loading dock access from College Street
v. First floor climate controlled walkway and space for exterior seating of
approximately 2,000 useable sq.ft, along the north side of the building (in addition to,
not part of, the 19,000 sq. ft.)
A. Not less than 200 useable sq.ft, in lower parking level for trash, recycling and
composting (may be combined with other building users so long as New Pioneer's
requirements are satisfactorily met)
6. Time Frame. The parties acknowledge that the Project is still in an early phase. However, if
the Developer's Project is not going to come to fruition within a reasonable time frame, then
New Pioneer may wish to pursue other possible opportunities. As such, the parties agree that
they shall proceed with the expectation that the Project will be ready for occupancy some time
during the 41s calendar quarter of 2014 through the 151 and 2nd calendar quarters of 2015, and
each party shall keep the other timely advised of any matters that might arise that could
materially affect the availability of the Project for such occupancy.
7. Cooperation and Coordination. Unless negotiations and discussions are terminated by
either party, it is anticipated that the parties will coordinate their plans and cooperate to the
extent reasonable in connection with further developing plans for the Project and specifically in
connection with responding to an RFP from the City. While Developer shall take the lead
responsibility for all such matters, New Pioneer shall cooperate to the extent of its desired space
within the Project. New Pioneer is committed to be a part of the Developer's Project as the
Developer proceeds with his proposal and feasibility analysis, provided the Developer continues
to demonstrate a serious interest in pursuing the Project, continues to assemble a team of
professionals, contractors and investors capable of fulfilling the Project, and articulates a
reasonable plan for financing the Project. If at any time prior to entering into the Purchase
Agreement the Developer shall determine that this Project is no longer feasible, Developer shall
promptly notify New Pioneer of such determination. Similarly, if at any time prior to entering the
Purchase Agreement should New Pioneer determine that it no longer wishes to participate in the
Project or that Developer's progress on the Project is not satisfactory, in New Pioneer's sole
determination, New Pioneer may indicate to Developer its election to terminate negotiations and
discussions pertaining to the Project.
New Pioneer will reasonably cooperate, on a non - exclusive basis, with Developer towards the
objective of the Developer's proposal becoming the approved proposal submitted to the City for
the development of the Site and for Developer to proceed with its Project which will incorporate
the condominium space for New Pioneer's ownership and use. However, New Pioneer reserves
the option should there be, in New Pioneer's determination, other viable and timely projects, for
New Pioneer to work with any other party for a project on the Site or elsewhere that
appropriately and/or timely addresses New Pioneer's business needs.
8. Additional Office Space. Should current plans be altered to include office space, before the
Developer commits to selling or leasing space on the second floor that would leave less than
5,000 useable sq.ft. remaining, the Developer will contact New Pioneer with regard to any
interest for additional second floor office space. This option for additional office space is
independent of the 3,000 useable sq.ft. on the mezzanine or second floor for store operations as
specified in 5.7.(ii) above.
9. Confidentiality. New Pioneer and Developer hereby each agree to hold as confidential all the
other's plans, building designs, concepts, strategies of construction, financial circumstances, cost
estimates, financing, and other matters related to a party's potential participation in the Project as
may have been or may be disclosed by one party to the other party in connection with the
discussions and negotiations related to this Letter of Intent and the Project, and that are not
otherwise generally known ( "Confidential Information'. Any disclosure of Confidential
Information of a party by the other party shall only be made after the party whose Confidential
Information is being disclosed has agreed to such disclosure in writing in advance. The parties
each acknowledge that if Developer submits a proposal to the City of Iowa City, and also if the
Developer's proposal is approved by the City, disclosure of certain Confidential Information and
the Purchase Agreement contemplated herein to specified third parties as a part of implementing
the Project will likely be necessary. In that event, the parties agree to cooperate in such
disclosures, which shall be agreed to in writing in advance. The parties further agree this
provision shall survive in the event of termination of this Letter of Intent. Nothing in this
provision is intended to limit a party from disclosing the Confidential Information of the other,
on a need to know basis, to a party's representatives, consultants, lender(s), attorneys, contractors
or other agents, in connection with its due diligence and investigations relating to the continuing
discussions and negotiations contemplated by this Letter of Intent.
VA
10. Nan - Binding. This Letter of Intent does not constitute an agreement to negotiate, but solely
constitutes an outline of some of the terms for negotiation. The parties will in good faith
diligently pursue discussions and negotiations in an effort to come to and refine terms and
conditions for final documents for each party's review and approval, some of which may be
multi -party agreements. While this Letter of Intent is intended to provide the parties guidance in
pursuing negotiations and discussions, except for Paragraph 9 and the next paragraph of this
Paragraph 10, it is not binding, and the terms of any final agreement may be the same as, similar
to or different from the provisions of this Letter of Intent.
New Pioneer and Developer each acknowledges and agrees that each is proceeding with its side
of negotiations at its sole cost and expense (which may involve substantial transaction costs) and
that either party may terminate negotiations for any reason, at any time, without any liability or
obligation to the other. Further, neither party shall have any legal rights or claims against the
other party by reason of any action taken, statements made, writings delivered or other matters
undertaken by a party in reliance upon this non - binding Letter of Intent including, without
limitation, any expenditure of funds, partial performance of transactions contemplated herein, or
any other actions of a party.
This letter of intent shall be of no further effect upon either i) the parties entering into final
agreements, or ii) the termination of discussions and negotiations between the parties pertaining
to the matters contained herein. The parties anticipate that their discussions and negotiations will
be completed or terminated before the expiration of twelve months after the execution of this
Letter of Intent.
Developer
By
Piero Pioneer's Society
f1m s I3A4A' SH:e ,tit le1(z-siVc'
Date I•ZQ Ze i-O
Date ,2"q 1'"
SECTION 8
Income Analysis
College St / Gilbert St Northeast Corner Site - Mixed Use Redevelopment
Iowa City, IA
9/26/2012
ANNUAL INCOME ASSUMPTIONS
RESIDENTIAL
Unit Description
Unit Count
Unit Count Unit Size (RSF) Monthly Rent/ Monthly Rent/ Annual Rent /
Unit RSF
Unit RSF Unit Type
Studio 24 40.0% 500 875 1.75 252,000
1 BD /1 BTH 24 40.0% 650 1,140 1.75 328,320
2 BD /2 BTH 12 20.0% 900 1,575 1.75 226,800
60
800
38,400 807,120
Total Residemal RSF: 38,400
Total GSF:
Residential Building Efficiency: 80%
Residential Amenity Space 4,000
Total Residential GSF: 52,000
COMMERCIAL/RETAIL
Unit Description Unit Count Unit Size (RSF) Monthly Rent/ Monthly Rent/ Annual Rent /
Unit RSF Unit Type
New Pioneer 1 - 24,800 0 0.00 0
1 24,800 0
1st Floor Usable: 19,000
Mezzanine: 3,000
Lower Level: 800
Walkway & Seating: 2,000
Total GSF: 24,800
PARKING
Gross Rents (Residential)
Less Vacancy (Residential)
Net Rent (Residential)
Base Rent (Commercial /Retail)
Parking Revenue
Laundry Revenue
Other Revenue ($35 /unit/month)
TOTAL EFF. GROSS INCOME
Total SF: 17.100
Total Annual $ Avg Monthly $ / Monthly $ / Annual $ / Annual $ / Annual $ /
Unit RSF Unit RSF GSF
807,120 1,121 1.75 13,452 21.02 15.52
7.0% (56,498) (78) (0.12) (942) (1.47) (1.09)
750,622 1,043 1.63 12,510 19.55 14.44
0
0
0
25,200 35 0.05 420 0.66 0.48
775,822 1,078 1.68 12,930 20.20 14.92
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SECTION 9
EXHIBIT "A"
Proposal submittal signature form
The undersigned attests to his/her authority to submit this proposal and to bind the firm
herein named to perform if the firm is selected by the City of Iowa City. The undersigned
further certifies that he /she has read the Request for Proposal, terms and conditions,
and any other documentation relating to this request; has complied in all respects with
all conditions hereof, and this proposal Is submitted with full knowledge and
understanding of the requirements and time constraints noted herein.
The undersigned hereby further acknowledges that it accepts the terms of the Request
for Proposals in its entirety and by the submission of its proposal hereby waives any
claims or claims to irregularities that arise out of such RFP, the process employed by
the City to solicit and develop proposals, the RFP evaluation process described in the
RFP, and agrees to release and hold harmless the City, its employees, agents, and
consultants from any claim, loss, or damage arising therefrom.
The undersigned hereby authorizes any person, firm or corporation to furnish any credit
history and financial condition or other information required by the City to verify
information related to the Firm's submission to the City.
I hereby certify, on behalf of the undersigned firm, that the above information is true and
correct to the best of my knowledge and that the City may rely on the information
provided.
Firm name: Iceberg Development Group
Home office address: 20 sandstone Ct .
City, state, zip: Bettendorf, IA 52722
Signature: C=\JX LL: .wr-A, Date: 9/2712012
21
LISTING OF LAWSUIT OR LITIGATION WITHIN
THE PAST FIVE YEARS
1. Lawsuit or Litigation:
Medina Motor Inn v. Ryan Companies US, Inc., Alleged breach of contract.
Status or Outcome:
Served, but not filed. Inactive.
Comments:
None
2. Lawsuit or Litigation:
Sherman Associates, Inc.; Chicago Lofts, LLC; and SA Midtown Exchange Apartments
Limited Partnership v. Ryan Companies US, Inc., Hennepin County District Court, Fourth
Judicial District, Court File No. 27 -CV -12 -5964.
Alleged misrepresentation and breach of contract claims arising out of operating budget
dispute.
Status or Outcome:
Currently pending.
Comments:
None
3. Lawsuit or Litigation:
The Aberdeen Condominium Association of St. Paul, Inc. v. Cathedral Hill Neighborhood
Redevelopment LLC and Ryan Companies US, Inc., and Ryan Companies US, Inc. vs.
Northland Concrete & Masonry, Kremer & Davis, Inc., Jeld -Wen, Inc. and Horwitz
Mechanical Contractors, Ramsey County District Court, Minnesota, Court File No. 62 -CV-
11- 10351.
Alleged construction defect claim.
Status or Outcome:
Currently pending.
Comments:
None
4. Lawsuit or Litigation:
Ryan Companies US, Inc. v. Ellerbe Becket, Inc., an AECOM company, and Parsons
Electric, LLC, Hennepin County District Court, Minnesota, Court File No. 27 -CV -12 -3319.
Contribution and indemnification claim; counterclaim by Ellerbe Becket, Inc. against Ryan
Companies US, Inc. for negligence
Status or Outcome:
Currently pending.
Comments:
None
5. Lawsuit or Litigation:
Levy Premium Foodservice Limited Partnership v.
Entertainment, LLC, Ryan Companies US, Inc., et
Chancery Division, No. 09 -CH 34392.
Breach of contract claims against MadKatStep and
Status or Outcome:
Settled.
Comments:
None
MadKatStep Entertainment, LLC, CCO
al., Circuit Court of Cook County, Illinois,
CCO.
6. Lawsuit or Litigation:
CCO Entertainment, LLC v. CCO Arenas, LLC and Stephen Hyman v. Ryan Companies
US, Inc. et al., United States District Court, Northern District of Illinois Eastern Division, No.
07C 5033.
Trademark infringement and breach of contract by former employee.
Status or Outcome:
Settled.
Comments:
None
7. Lawsuit or Litigation:
World Waste Services, Inc. v. Ryan Companies US, Inc., Circuit Court of 15th Judicial
Circuit, Palm Beach County, Florida, Case No. 50 2008 CA 010746 XXXX MB.
Breach of contract claim by terminated subcontractor.
Status or Outcome:
Walk -away settlement.
Comments:
None
8. Lawsuit or Litigation:
Kennedy Funding, Inc. v. Wight River Crossings, LLC, George, Wight, Jr., Wight Family
Investment Trust, Wight Holdings International II, LLC, Ryan Companies US, Inc. and Rote
Oil, Ltd., Walworth County Circuit Court, Case No. 08CV00968.
Mechanic's lien priority dispute.
Status or Outcome:
Summary judgment granted in Ryan's favor. Ryan received payment.
Comments:
None
1 Ryan Companies as of July 2012
Excluded from this list are (i) mere claims and threats that have not resulted in litigation; (ii) workman's compensation claims; (iii)
personal injury claims, defense of which has been tendered to insurers; (iv) employment claims; (v) condemnations; and (vi) claims
initiated by Ryan.
9. Lawsuit or Litigation:
Ward, Murray, Pace & Johnson, P.C. serves as counsel for James N. Bergman and a
variety of other named Defendants in Case No. 05 CH 17539, presently pending in the
Circuit Court of Cook County, Illinois. The case was originally brought by the unsuccessful
bidder /contractor, Joseph J. Duffy Construction Company, for the contract to construct
Thomas Place, a housing development located in Glenview, Illinois. The named Plaintiff is
now James Mann, retired president of Duffy and purported assignee of all of Duffy's claims.
The case has a substantial procedural history. The Plaintiff's original complaint, first
amended complaint, and second amended complaint were all dismissed by the Circuit
Court of Cook County in their entirety, for failure to state a claim upon which relief could be
granted, despite what could appropriately be described as encyclopedic efforts to do so.
Dismissal of the second amended complaint was appealed by the Plaintiff to the First
District Appellate Court, and by opinion dated February 29, 2008, the First District Appellate
Court affirmed as to dismissal of Ryan Companies USA, Inc., the successful bidder on the
project, but reversed and remanded as to the remaining Defendants, including Mr.
Bergman, as to two counts of the second amended complaint, one based on quantum merit
and one based on unjust enrichment, ruling that these claims, as set forth in the second
amended complaint, stated a cause of action. The First District Appellate Court affirmed
dismissal of the remaining counts of the second amended complaint, which included
contract -based counts, fraud, estoppel, and other theories.
Mr. Bergman is a named individual defendant, along with other named individuals. From
the inception of the case, we have believed and continue to believe that Mr. Bergman is
inappropriately named and not individually liable. All of his activities with respect to the
Thomas Place project were in a representative capacity as an officer of certain corporate
entities involved in the project.
Plaintiff attempted to add Thomas Place, LP and Thomas Place, LLC as defendants after
the expiration of the applicable statute of limitations. The circuit court dismissed the
Thomas Place defendants. Plaintiff appealed to the First District Appellate Court pursuant
to a Rule 304(a) finding as to dismissal of the Thomas Place defendants, Plaintiff
contending that there was a mistake made as to the existence and /or role of the Thomas
Place defendants in the project prior to expiration of the statute of limitations, despite
attachments to Plaintiff's complaints disclosing the existence and role of Thomas Place
defendants as early as 2003, and despite our turnover of documents and interrogatory
responses during discovery, well prior to expiration of the limitations period, repeatedly
documenting the existence and roles of the Thomas Place defendants in this project.
Status or Outcome:
The circuit court's ruling as to the Thomas Place defendants was affirmed by the First
District Appellate Court, and the case has now been remanded to the circuit court for further
proceedings. A motion to withdraw by the plaintiff's attorneys was granted in early August.
A status is scheduled for October 29, at which point Plaintiff is to appear with new counsel.
Comments:
None
Content Section
Signed Letter of Interest .................................................................... 1
ContactInformation ........................................................................... 2
DevelopmentEntity ............................................................................ 3
ContractEntity ................................................................................... 4
OrganizationalChart ........................................................................... 5
Development Team Profile & Experience ........................................... 6
FinancialCapacity ............................................................................... 7
Visual Description of Proposed Project .............................................. 8
Project Narrative & Financial Estimates ............................................. 9
Litigation........................................................................................... 10
References........................................................................................ 11
OrganizationalAptitude ..................................................................... 12
Proposal Submittal Form ................................................................... 13
Attachments
Signed Letter of Interest ................................................................. Al
FloorPlans: Option # 1 .................................................................... A2
FloorPlans: Option # 2 .................................................................... A3
Proforma: Option # 1 ...................................................................... A4
Proforma: Option # 2 ...................................................................... AS
NewPioneer LOI ............................................................................. A6
Proposal Submittal Form ................................................................ A7
Section 1- Signed Letter of Interest
Roped LQ M LI (KD Ma LI a lS
Please see Attachment Al: Signed Letter of Interest.
Section 2 - Contact Information
Sherman Associates, Inc.
233 Park Avenue South, Suite 201
Minneapolis, Minnesota 55415
Phone: 612.332.3000
Fax: 612.332.8119
George Sherman, President /Owner (PRIMARY CONTACT)
612.332.3000 1 fisherman @sherman - associates.com
George Sherman will oversee the development process and will be involved in all critical decisions.
Mr. Sherman has been involved in multi - family and single - family housing for 25 years. He has been the
principal involved in the completion of over $2 billion in real estate development. Presently, Mr. Sherman is
the President and Principal Developer of Sherman Associates, Inc. Sherman Associates, Inc. has developed
approximately 8,500 multifamily, townhouse and single - family homes, 600,000 square feet of commercial
space and two hotel properties. Mr. Sherman is a graduate of the University of Minnesota where he earned
a BS in Biochemistry in 1976 and completed MBA studies in 1977.
Jackie Nickolaus, Vice President /Project Manager
515.491.5103 1 inickolaus @sherman - associates.com
Jackie Nickolaus is Sherman - Associates Iowa -based project manager. Her main focus will be working with
local development authorities and coordinating local team members.
Jackie Nickolaus has a 10 -year history of downtown redevelopment practice, including long -term planning
and project implementation. Before joining Sherman Associates in 2005, she was an Economic
Development Coordinator for the City of Des Moines. Jackie earned a University of Iowa Bachelor of Arts
Degree and a Master of Arts from the University of Minnesota's Humphrey Institute of Public Affairs.
Rich Kiemen, Senior Vice President of Construction
612.604.0865 1 rkiemen @sherman - associates.com
Rich Kiemen will oversee and help coordinate all construction activities on behalf of Sherman Associates,
from initial project design and cost estimations through completion of construction.
Richard Kiemen has more than 25 years' experience in general contracting and project management.
Working with Sherman Associates since 2005, he has been involved with multi - family, residential, public
and private construction projects throughout the Midwest. Richard received a bachelor's degree in
Architectural Engineering from Milwaukee School of Engineering and holds a Minnesota residential
contractor's license.
Tony Kuechle, Project Manager
612.604.0852 1 tkuechle @sherman - associates.com
Anthony Kuechle is an accomplished real estate professional with over 17 years of experience in real estate
development, acquisitions and asset management. Prior to joining Sherman Associates in 2010, Anthony
worked as a Vice President of Development and Acquisitions for Hempel Properties and a Project Manager
for United Properties. He has a Bachelor of Science in Real Estate and Finance from St. Cloud State
University.
Section 3 - Development Entity
DQW(AKDP (SM ER202W
Sherman Associates, Inc.
233 Park Avenue South, Suite 201
Minneapolis, Minnesota 55415
Fed ID (E IN): 41-1709024
Ownership:
George Sherman, President /Owner— 100%
612.332.3000 1 Qsherman @sherman - associates.com
Sherman Associates Development LLC
233 Park Avenue South, Suite 201
Minneapolis, Minnesota 55415
Fed ID (E IN): 41-1994348
Ownership:
George Sherman, President /Owner— 100%
612.332.3000 1 Qsherman @sherman - associates.com
Craftsman Construction, Inc.
233 Park Avenue South, Suite 201
Minneapolis, Minnesota 55415
Fed ID (E IN): 41-1708777
Ownership:
George Sherman, President /Owner — 100%
612.332.3000 1 Qsherman @sherman - associates.com
Section 4 - Contract Entity
C (KDMT= EMORW
The development of the site will be undertaken by a to -be- formed single purpose entity. This entity will be
associated with and controlled by Sherman Associates, Inc.
Section 5 - Organizational Chart
Organizational Chart
DAVID GRAHAM, FAIA, LEED AP
Principal
AARON ROSETH
Project Manager
PONG KHOW, AIA
Senior Project Designer
BURTON COFFIN, AIA
Project Designer
r
CITY OF IOWA CITY
arsherman
A 5 5 O C I A T E 5
LANDSCAPE ARCHITECT
STEVE FORD
Senior Landscape Architect
GEORGE SHERMAN
President and Principal Developer
JACKI NICKOLAUS
Vice President /Project Manager
TONY KUECHLE
Project Manager
RICH KIEMEN
Senior Vice President of Construction
RICH KIEMEN
Senior Vice President
RON WAGNER
Vice President
ENERGY DESIGN
JIM DOUGLAS, PE, LEED AP
Project Manager
Section 6 - Development Team
Profile & Experience
DQ Q opc Q Us am PT(Aoh M EKP(S) Uhfl (E
Sherman Associates, Inc.
233 Park Avenue South, Ste. 201
Minneapolis, Minnesota 55415
Phone: 612.332.3000
www.sherman-associates.com
1. Sherman
ASSOCIATES
Sherman Associates, Inc. is an award - winning developer specializing in design, construction and financing of
quality housing and commercial properties in Minnesota, Wisconsin, Iowa, Missouri and Colorado. Having
earned a strong reputation for quality and follow- through, cities around the country have turned to Sherman
Associates to pioneer redevelopment in their downtowns and highest priority neighborhoods.
Sherman Associates' experience includes new construction and rehabilitation of historic structures. With over 30
years of development and construction experience, Sherman Associates is able to offer a diverse range of
services in the commercial, single - family and multifamily markets. These services include:
Development Services • Construction
Design -Build Services • Site Analysis
Financial Analysis /Feasibility • Marketing Programs /Feasibility
Federal, State and Local Housing Programs • Equity and Debt Funding
Property Management Services
Sherman Associates has established an impressive and prolific track record, completing over $2 billion in real
estate development. Sherman Associates has developed approximately 8,500 multifamily, townhouse and
single - family homes, 600,000 square feet of commercial space and two hotel properties. Our current pipeline
consists of $200 million to $250 million a year in new developments, both commercial and residential. This
experience allows our firm to bring about the following outcomes:
Assemble financing from a variety of public and private sources
Create strong public - private partnerships
Complete mixed -use and mixed - income projects
Ensure thoughtful design and quality construction
Create tangible community impact
Primary Contact
George Sherman, President /Owner
612.332.3000 1 fisherman @sherman - associates.com
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Recent Project: Zenith Condominiums
901 2nd St S
Minneapolis, MN 55415
Project Type
Mixed use: Structured parking, 1" floor commercial,
housing above
Development Team
Developer: Sherman Associates
Architect: ESG Architects
GC: BOR -SON Construction
Development Pro -forma
Uses
Land 1,955,000
Hard Costs 24,200,625
Architecture 990,416
Developer Fee: 11.6% 3,981,927
Financing Costs /Soft Costs 3,084,113
Total Development Cost. 34,212,081
Success
Construction was complete 11/18/2008. Sales at the
Zenith have continued to occur during the down economy.
The contemporary design, dramatic views of the riverfront
and downtown Minneapolis, and the proximity to
amenities have made it a prime location for young buyers.
The first floor commercial space is occupied by a medical
user, with a longterm lease.
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Recent Project: Midtown Exchange /Chicago Lofts
Minneapolis, MN
Project Type
Mixed use: Structured parking, commercial, rental
housing and condominiums
Development Team
Developer: Sherman Associates
Architect: ESG Architects
GC: Ryan Companies
Development Pro -forma (Sherman
Associates' Portion)
Uses
Land N/A
Hard Costs $55,492,922
Financing Costs /Soft Costs $7,494,600
Contingencies $ 2,100,000
Developer Fee: 9.0% $ 6,400,000
Total Development Cost. $71,487,522
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Success
In 2004, a collaboration between housing developer Sherman Associates and commercial developer Ryan
Companies transformed the 1.2 million square -foot historic Sears, Roebuck building in South Minneapolis into a
mixed -use masterpiece featuring 88 loft and penthouse condo units, 219 rental units (including some affordable
units), the headquarters of Allina Health Systems and a global food market. The food market features small
businesses started by local entrepreneurs.
The project has won several awards, including "Best of the Decade" by Minneapolis /St. Paul Business Journal
and "Best in American Living" by Professional Builder Magazine.
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Recent Project: Heritage Park
Minneapolis, MN 55405
Project Type
Mixed use: 48 -unit memory care facility and
Neighborhood Community Center
Development Team
Developer: Sherman Associates
Architect: ESG Architects
GC: Knutson Construction
Development Pro -forma
Uses
Land $ 25,001
Hard Costs $18,320,387
Architecture $ 760,000
Developer Fee: 8.6% $ 2,345,275
Financing Costs /Soft Costs $ 5,738,407
Total Development Cost. $27,164,069
Success
The Minneapolis Public Housing Authority (MPHA) had a vision for Heritage Park. In the beginning of 2010,
they began the search for a development group with the necessary skills to make their vision a reality. After an
intensive bidding process, Sherman Associates, along with its construction and architecture partners, was
selected from multiple applicants and awarded the project.
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Acting as a fee contractor for the Minneapolis Public Housing Authority, Sherman Associates developed and
planned this 12 -month construction project. The team was faced with multiple challenges such as the collapse
of the construction company selected as the general contractor; but with its development prowess and strong
industry relationships, Sherman Associates was able to bring in a replacement contractor and begin
construction on time. Tenants of the Community Center include a YMCA and a community clinic.
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Recent Projects: Rumely Lofts /Metro Lofts
Court Avenue Neighborhood
Des Moines, IA 50309
Project Type
Mixed use: Structured parking, 1" floor commercial,
housing above
Development Team
Developer: Sherman Associates
Architect: ESG Architects
GC: Frana Companies
Development Pro -forma
Land $ 3,710,000
Hard Costs $25,871,856
Architecture $ 850,000
Developer Fee: 9.8% $ 3,750,000
Financing Costs /Soft Costs $ 4,189,334
Total Development Cost. $38,371,190
Success
Rumely Lofts, a historic rehabilitation project,
completely renovated the last under - utilized existing
building this highly popular neighborhood into chic
desirable loft -style apartments. With amenities such
as concerete floors, 14 -foot ceilings and exposed brick,
this property has proven to be highly successful,
leasing up in just over six months.
Sherman Associates was awarded the initial tax credit
allocation for Metro Lofts in 2008, just before one of
the greatest economic downturns since The Great
Depression. Sherman Associates held on to its credits
until banks started lending again and was able to close
on the project financing in April of 2010. With the tax
credits ready to expire, Sherman began an
impressively short seven -month construction period.
Construction was completed and residents began to
occupy the building in December 2010.
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Recent Project: Harrison Lofts
1420 Harrison Street
Davenport, IA
Project Type
Mixed use: retail and rental housing.
Development Team
Developer: Sherman Associates
Architect: ESG Architects
GC: Black I Dew
Development Pro -forma (Sherman
Associates' Portion)
Uses
Acquisition
Hard Costs
Financing Costs /Soft Costs
Contingencies
Developer Fee: 8.0%
Total Development Cost.
25,001
6,234,764
1,596,028
180,000
650,000
8,085,793
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Summary
Harrison Lofts is a new construction development of mixed -use housing and retail located in Davenport, Iowa. The
street level includes two retail spaces for a total of 3,500 W, and tenant amenities. Tenant amenities include a
workout room, laundry room and community room, equipped with computers and meeting space. Retail spaces
are positioned along each of the 14`h and 15`h street corners of the building. The 60 apartment units consist of
efficiency, one - bedroom, and two - bedroom layouts. As a mixed - income building, 12 units are allocated as
affordable at 40% AMI; 42 units are restricted at 60 %AMI. The remaining 4 units will be designated as market rate
units. The project targets both single individuals and families. The units feature high quality interior finishes and
amenities. Its prime location along one of Davenport's main streets, its one -level living space, and its affordability
make Harrison Lofts the ideal place to live for a broad range of residents.
Development Site
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SHERMAN ASSOCIATES
Completed & Stabilized Residential & Mixed -Use Projects in Portfolio
Protect Name Location YearBuilt YearAcquired Total NumberofUnits
Unit Mi.
Tvve of ConstructionAffordableMarkel
1 3100 Clinton Minneapolis, MN 1989 1989 12 12 0 Rehab
2 3100 Fourth Minneapolis, MN 1997 1997 10 10 0 Rehab
3 Autumn Ridge Apartments Brooklyn Park, MN 1978 2007 366 338 28 Rehab
4 Bell Building Minneapolis, MN 1970 1985 25 0 25 Rehab
5 Blaine Town Square Blaine, MN 2005 2005 87 3 84 New Construction
6 Bollineau Commons Minneapolis, MN 2003 2003 119 94 25 New Construction
Bollineau Lofts Minneapolis, MN 2003 2003 37 37 0 Rehab
8 Boulevard Milwaukee, WI 1965 2007 235 235 0 Rehab
9 Browns Mead. Coon Rapids, MN 1991 1991 148 20 128 Acquislion
10 Castle Apls Minneapolis, MN 1990 1990 11 11 0 Rehab
11 Central Avenue Lofts Minneapolis, MN 2007 2006 66 53 13 New Construction
12 Community Plaza SL Paul, MN 1985 2000 40 40 0 Rehab
13 East Phillips Square Minneapolis, MN 2004 2004 34 34 0 New Construction
14 Falcon Heights Apls Falcon Heights, MN 2005 2005 119 57 62 New Construction
15 IFalcon Heights Senior Falcon Heights, MN 2005 1 2005 56 1 31 25 1 New Construction
16 Farmington Twhms Farmington, MN 2000 2000 16 16 0 Rehab
17 Gateway Terrace Grand Forks, ND 1985 1985 Mobile HomeCourt NA
milor Park - LandTNA
Development
18 Grounds Market Place Burns mile, MN 2003 2003 113 60 53 New Construction
19 Greysolon Apartments Duluth, MN 1921 2005 150 144 6 Rehab
20 Guardian Angels Hastings, MN 2002 2002 30 27 3 Rehab
21 Highland Chateau Duluth, MN 1973 1998 60 0 60 Rehab
22 Highland Park Apartments Milwaukee, Wl 1977 2007 150 150 0 Rehab
23 Jefferson Square Apls Duluth, MN 1993 2000 25 4 21 Rehab
24 Le Sueur Meadows LeSuer, MN 2002 2002 40 40 0 New Construction
25 Lexington Shores Shoretiew, MN 2002 2002 68 29 39 New Construction
26 Lodge of Little Canada Little Canada, MN 2003 2003 79 4 75 92.41
27 Lyons Court SL Paul, MN 2005 2005 60 60 0 New Construction
28 Martin Gardens (Cromwell Commons) Minneapolis, MN 1997 1997 18 17 1 Rehab
29 Memll School Duluth, MN 2003 2003 19 0 19 Rehab
30 Midtown Exchange Apartments Minneapolis, MN 1928 1 2006 1 219 181 1 38 Rehab
31 Mount Royal Manor Duluth, MN 1984 2002 114 0 114 New Construction
32 New Paris Apls. Benson, MN 1985 1985 40 0 40 Rehab
33 Photon Senior Lofts SL Paul, MN 2006 2006 73 73 0 New Construction
34 River Run Apartments Minneapolis, MN 2006 2006 74 74 0 New Construction
35 Riverside Plaza Minneapolis, MN 1971 1989 1303 1174 129 Rehab
36 Rumely Lofts Des Moines, IA 1903 2009 66 66 0 Rehab
37 Seward Flats (2) Minneapolis, MN 1964 1997 123 0 123 Rehab
38 Sibley Court SL Paul, MN 2003 1 2003 122 1 51 71 1 New Construction
39 Sibley Park SL Paul, MN 2003 2003 114 51 63 New Construction
40 Slmtlfortl Flats Apls. Minneapolis, MN 1911 1997 62 62 0 Rehab
41 Slmus Apartments SL Paul, MN 1878 2001 49 34 15 Rehab
42 Syndicate Apartments LLC SL Louis, MO 2006 2006 28 28 0 Rehab
43 Syndicate Retail LLC SL Louis, MO 2006 2006 42 0 42 Rehab
44 The Cr ings of Valley View Bloomington, MN 2008 2008 50 50 0 New Construction
45 Vine Street Apls Des Moines, IA 200,1 2004 110 46 64 New Conslmclion
46 Westgate Townhomes Duluth, MN 2001 2001 28 25 3 New Conslmclion
SUB - TOTALS 1985 2001 4810 3941 1369
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SHERMAN ASSOCIATES
Completed & Stabilized Commercial Projects in Portfolio
SHERMAN ASSOCIATES
Projects Under Development or Completed Within 12 Months
Project Name Location PropertyType YearBuilt YearAcquired SquareFeel
1 233 Park Minneapolis, MN Retail /Office 1908 2001 46,980
2 Camden Center Minneapolis, MN Retail 1997 1997 14,432
3 Canal Park Square Duluth, MN Retail /Office 1900 1998 59,466
4 Hawlhom Crossings Minneapolis, MN Retail 1993 1993 51,866
5 Brookdale Crossings Brooklyn Park, MN Retail 1991 1994 60,795
6 Guardian Angels Transitional Housing Hastings, MN Retail 2002 2002 7,102
Guartlian Angels Community Center Hastings, MN Retail 2002 2002 12,883
8 16th Avonue South Minneapolis, MN Retail 2002 2002 17,216
9 Village of Little Canada Little Canada, MN Retail /Office 2004 2004 24,814
10 Garfield Business Park Duluth, MN Industrial 2004 2004 48,960
11 Wentworth Commons SL Paul, MN Retail 2007 2007 12,787
12 Zenith Commercial Minneapolis, MN Retail 2009 2009 7,821
SUB - TOTALS 365,122
SHERMAN ASSOCIATES
Projects Under Development or Completed Within 12 Months
SHERMAN ASSOCIATES
Projects in Pipeline Expected to Commence in the Near Future
Project Name Location LIHTC ?Y /N YearBuilt YearAcquired Total NumberofUnits
Unit Mix
Affordable Markel
1 The Chateaus (3 Buildings) Duluth, MN N 1973 1998 141 0 141
2 Grand Boulevard Lofts Kansas City, MO Y 1909 2009 134 134 0
3 Ining School Duluth, MN N 1910 2011 44 0 44
4 Met. Lofts Des Moines, IA Y 2010 2010 111 103 8
5 Phoenix on the Fax Dormer, CO Y 2011 2011 50 50 0
6 Russell Lamson Waterloo, IA Y 1914 2011 90 90 0
The ROOselelt Cedar Rapids, IA Y 1927 2008 96 92 4
SUB - TOTALS 1951 2008 666
SHERMAN ASSOCIATES
Projects in Pipeline Expected to Commence in the Near Future
Project Name on
LIHTC?
Y/N
Number of
Units Ci
1 Longfellow Station New Construction Y ISO Minneapolis MN
2 Weslside Flats New Construction N 178 SL Paul MN
3 Slradfoid Flats Rehab Y 62 Minneapolis MN
4 Hanson Lofts New Construction Y 60 Dmenort IA
5 Payette Lofts Hislorlc Adapliw: Reuse N SS SL Paul MN
6 New Paris Apartments Rehab Y 40 Benson MN
Mount Washington Senior Hislorlc Adapliw: Reuse Y 45 Independence MO
8 324N 1s1 New Conslmclion N 140 Minneapolis MN
Totals 793
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Elness Swenson Graham Architects
500 Washington Avenue South
Minneapolis, MN 55415
Phone: 612.339.5508
www.esgarch.com
architects
ESG is a 52- person architectural firm with a national practice in urban residential,
student housing, hospitality, workplace environments, higher education, and
urban design. ESG is headquartered in Minneapolis where the firm enjoys a
leadership position in urban residential and mixed use redevelopment. ESG won
the American Institute of Architects Firm Award for "innovation in urban
residential mixed use design."
ESG has won 26 Twin Cities "Best in Real Estate" awards for residential and mixed
use design.
ESG Believes housing is a forceful driver of new development and will remain so
as long as our population continues to grow. But our lifestyles evolve and our
sensibilities toward land development change. This creates new demands for new residential paradigms. Many
people now wish to live in walkable communitieis. They are moving back to the city in large numbers. They
seek vital, 24 hour neighborhoods where they can find the amenitites and conveniences of more urban
lifestyles. This evolution in lifestyles and household structure is driving the next wave of residential
development. ESG is at the forefront of planning and design for new and emerging urban lifestyles in the
residential marketplace.
For three decades, ESG has been a leader in designing residential communities. By advocating for New Urban
principles, our Residential Studio has propelled ESG to regional and national prominence. Our portfolio of
completed work illustrates these principles and highlights the value tha thigh quality design brings to reshaping
our neighborhoods and cities. We encourage you to visit the company website to learn more about the
company and see examples of work completed by ESG.
David Graham, FAIA, LEED AP
Principal, ESG Architects
Project Role: Principal -in- Charge
Experience: 30+ Years
As principal in charge, David Graham will oversee all phases of design and deliver with emphasis on
programming and design. David brings over 30 years of design experience in urban, residential and mixed -use
architecture. David Graham is recognized as a Fellow with the American Institute of Architects for his design
leadership in urban residential and mixed use design.
Aaron Roseth
Vice President, ESG Architects
Project Role: Project Manager
Experience: 8+ Years
As project manager, Aaron Roseth will oversee the coordination of all phases of work. Aaron brings strong
experience in large complex urban mixed use projects and has uniquely strong communications skills to help
guide the project through each phase including design, entitlement and delivery.
Pong Khow
Vice President, ESG Architects
Project Role: Senior Project Designer
Experience: 25+ Years
As senior project designer, Pon Khow will be responsible for all major design services and documentation under
the direction of David Graham and Aaron Roseth. Pong has been a senior designer at ESG for 25 years and is
responsible for most of the firm's award winning urban residential project designs.
Burton Coffin
Associate, ESG Architects
Project Role: Project Designer
Experience: 16 Years
As project designer, Burt Coffin will focus on the design of dwelling units and project amenity, communal spaces
and overall space planning. Burt has led the ESG residential dwelling unit design deparment. He is a gifted
residential designer who is very familiar with current urban residential unit design.
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Market -Rate Residential Experience
many of which are part of urban mixed -use developments)
Elan Uptown I 1& II Cinnamon Ridge Lowry Building
Minneapolis, MN Keystone, CO St. Paul, MN
Mill & Main I Phases & 11 Coachman Trails Millplace Mixed Use Masterplan
Minneapolis, MN Plymouth, MN Minneapolis, MN
Dock Street Apartments I Phases I & 11 Multi -Use Redevelopment Masterplan
Minneapolis, MN College Hill I & 11 Columbia Heights, MN
St. Paul, MN
430 Oak Grove Oakland Square
Minneapolis, MN Cornelia Place Apartments Minneapolis, MN
Edina, MN
Andrew Riverside
Minneapolis, MN DeForestat Laurel Village Promenade Oaks
Minneapolis, MN Eagan, MN
Velo City
Minneapolis, MN Devonshire Gates Riverside Plaza
Bloomington, MN Minneapolis, MN
Genesee
Bloomington, MN Excelsior & Grand Riverwalk Residential
St. Louis Park, MN Minneapolis, MN
Nicol let Residences
Minneapolis, MN Farnam 1600 Rochester HRA
Omaha, NE Rochester, MN
Stadium Village Flats
Minneapolis, MN Gates of Carlson Park Saint Anthony Mills Apartments
Minnetonka, MN Minneapolis, MN
412 Ridgewood
Minneapolis, MN Greenhaven Southwind
Burnsville, MN Burnsville, MN
Austin Courtyard I & 11
Austin, MN Hampshire Hills St. Anthony Place
Bloomington, MN Minneapolis, MN
Calhoun Beach Club
Minneapolis, MN Illinois Center Masterplan Stone Arch Apartments
Chicago, It Minneapolis, MN
Chasewood Village
Minnetonka, MN LeMay Lake Stratford Oaks Design
Eagan, MN Eagan, MN
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Confluence - Landscape Architects
401 South Gilbert Street
Iowa City, IA 52240
Phone: 319.337.6634
www.thinkconfluence.com
Confluence is the place where everything comes together — connecting people, places, and ideas — a
phenomenon that produces energy, momentum, and depth. Our name pays homage to the notion that nothing
great is accomplished in isolation. Just as great rivers are the product of a thousand streams, great outcomes are
the product of a thousand ideas. Confluence brings everything together — naturally.
Confluence is a professional consulting firm comprised of landscape architects and planners. We have a strong
network of offices located throughout the Midwest, including:
Des Moines, Iowa
Kansas City, Missouri
Sioux Falls, South Dakota
Iowa City, Iowa
We combine proven design excellence with extensive practical experience. Each of Confluence's Principals has
over 19 years of experience in the design and planning of complex projects, and all are actively involved in civic
and community affairs in their respective communities.
Park & Open Space Design
A community's pride is readily evident in the character of its parks system. At Confluence, we believe there are
opportunities in each community's collection of park facilities, open spaces, and trail systems to further
reinforce their unique identity. These spaces have an opportunity to connect the community, and they should
reflect the collective values, activities, and quality of life aspired to by its residents.
Our landscape architects and planners are skilled in all aspects of park design and planning — ranging from
engaging the community with informative surveys and interactive design exercises to analyzing regional park
needs and implementing specific improvement projects. Our work is also technically grounded to integrate the
need for efficient and cost - effective maintenance and operations into the overall design framework. These
factors continually impact the ability to provide the wide range of services and facilities each community needs
and desires. And while we take the responsibility associated with this work very seriously, we truly enjoy what
we do and trust that our creative passion shows through in our built work. We strive to provide a fun and
fulfilling atmosphere for your constituents, and trust that your community will become an even better place to
live and play as a result.
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Steve Ford
Principal /Senior Landscape Architect
Project Role: Creating project green spaces and
improving the nearby College Green Park.
Experience: 20+ Years
Steve earned his Bachelor of Science in Landscape
Architecture from Iowa State University in 1979. Steve
has had a broad range of work experience from the
planning department in Watertown, South Dakota to
residential design /build firms in the Twin Cities to the
nationally recognized A/E firms — the DLR Group and
HLM Design. For the past two decades Steve has been
working in the Iowa City, Iowa area leading design on
trail and park work for the Iowa City School System and
numerous residential designs. Many of his projects
have earned industry awards and accolades including
the Iowa Firefighters Memorial, the Devonian Fossil
Gorge and the Mississippi River Trail segment on the
bluffs of the river in Muscatine, Iowa.
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The Weidt Group — Energy Services
5800 Baker Road, Suite 100
Minnetonka, MN 55345
Phone: 952.938.1588
www.twgi.com
The Weidt Group is an international energy and software consulting firm, working with architects, engineers,
building owners, and utilities to achieve high - performance buildings. We provide Energy Design Assistance and
Measurement & Verification services for commercial new construction, as well as engineering benchmarks for
improving the ongoing performance of existing buildings.
Based on our knowledge of how buildings work, we began simulating future building performance in 1988.
Today, Energy Design Assistance is a comparative analysis service we provide on over 200 projects each year,
using industry standard and DOE - supported simulation tools. Our consistent Energy Design Assistance
methodology supports equipment and system innovations on a project level through accurate contextual
analysis to provide operational guidance to owners and information back to the design teams. Because of our
founding interests and values, our staff field- verifies and measures the performance of roughly 150 buildings a
year. Extending these methodologies, we enable building owners to tune -up their buildings as uses change over
time.
Our staff consists of architects, mechanical engineers, software designers, and green building educators. These
individuals include members of the Clinton Climate Initiative Technical Resources Group, the IESNA Daylighting
Metrics Subcommittee, the LEED® IEQ and EA Technical Advisory Groups, as well as LEED and ASHRAE Faculty.
The firm's staff certifications include ASHRAE certified Building Energy Modeling Professionals and Building
Energy Assessment Professionals and 27 LEED
By the Numbers:
From small to large numbers, in 35 years of business, The Weidt Group's work has resulted in: 1 net -zero energy
building in operation for over eight years; 3 net -zero buildings in design; 27 million users of our software product
solutions; 116 collaborations on LEED Certified projects; 150+ collaborations on LEED Registered projects; 176
million square feet of construction projects; 226 thousand DOE -2 computer simulation models; 270 peak
megawatts of power reduced annually; 956 completed projects with field- verified results; and over 1200 Energy
Design Assistance projects with designers, owners, builders, manufacturers and utilities.
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James S. Douglas, PE, LEED AP
Principal at The Weidt Group
Project Role: Energy Efficiency Consultant
Experience: 20+ Years
Jim Douglas directs program and project -level work for regional and national clients. He is a Professional
Engineer with over 20 years of experience in building sciences and energy conservation study, implementation
and evaluation. Mr. Douglas has managed daylighting performance studies, and he managed The Weidt Group's
energy modeling services, in collaboration with Johnson Controls, for the first LEED® Certified project in the
State of Minnesota. Cumulatively, his experience at The Weidt Group since joining the firm in 1998 encompasses
over 350 projects totaling more than 42 million square feet.
Mr. Douglas is the former Program Manager for MidAmerican Energy Company's Commercial New Construction
program in Iowa. For nine years, he was responsible for program consistency and marketing, project
management of analysis and verification work, and long -range program planning. As a result, The Weidt Group's
efforts alongside owners, architects, engineers and contractors resulted in nearly $7,800,000 of annual energy
savings in 167 verified projects.
Weidt Group Mixed -Use Experience
Plaza Towers, Iowa City, IA
Plaza on 5th Multi -use Development, Coralville, IA
River Crossings Mixed Use Facility, Iowa City, IA
Iowa City Multi -use Facility, Iowa City, IA
East College Mixed Use, Iowa City, IA
Portside Plaza, Dubuque, IA
Village Place /Oxford Row, Des Moines, IA
Charles E. Lakin Campus, Council Bluffs, IA
Trolley Place, Oskaloosa, IA
NDC - 1938 SE 6th Street Mixed Use, Des Moines, IA
Brewery Renovation, Des Moines, IA
PARK @ 201, Iowa City, IA
Elliot Furniture Building, Des Moines, IA
KONE Centre, Moline, IL
Penfield, St. Paul, MN
Genesee at Penn & American, Bloomington, MN
Westin Galleria, Edina, MN
Wayzata Bay Center Superior Block, Wayzata, MN
Schmidt Rathskeller, St. Paul, MN
Lunds on 12th & Hennepin, Minneapolis, MN
Section 7 - Financial Capacity
Fuh andM c apad2w
Background
Sherman Associates' experience includes construction of new and rehabilitation of historic retail, office, hotel,
and office /warehouse buildings. During 30+ years of development and construction experience, Sherman
Associates has completed over $2 billion in real estate development. Sherman Associates has experience in
developing strong public - private partnerships, and brings expertise in assembling complex financing from a
variety of public and private sources.
Below are several projects recently completed by Sherman Associates that highlight the complexity and variety
of the firm's financing experience.
Recent Proiects
Metro Lofts & Rumely Lofts
Des Moines, IA
Financing: HUD - Guaranteed First Mortgage, Iowa Finance Authority Mortgage, IFA 1602 Funds, City of Des
Moines Funds, Federal Low Income Housing Tax Credits, Federal and State Historic Tax Credits, IDED
EZ Tax Credits, Deferred Developer Fee.
Riverside Plaza
Minneapolis, MN
Financing: Federal 4% LIHTC Equity, State Historic Tax Credits, Federal Historic Tax Credits, Tax Exempt Bonds,
HUD Insured Mortgage, MN Housing Fund's (MHFA) Economic Development and Housing Challenge,
MHFA's Preservation Affordable Rental Investment Fund, Metropolitan Council's Local Housing
Incentive Account, Family Housing Fund, Greater Metropolitan Housing Corporation, and multiple
Brownfield sources.
Midtown Exchange Apartments & The Chicago Lofts
Minneapolis, MN
Financing: 4% LIH Tax Credits, Federal Historic Tax Credits, US Bank first mortgage (Housing Revenue Bonds),
Minnesota Housing Finance Agency, City of Minneapolis, Hennepin County, Tax Increment,
Metropolitan Council.
Vine Street Lofts & Water Street Brownstones
Des Moines, IA
Financing: HUD, Fannie Mae, City of Des Moines, Polk County Housing Trust Fund, Neighborhood Finance
Corporation, Tax Credit, Tax Abatement.
Harrison Lofts
Davenport, IA
Financing: Iowa Finance Agency First Mortgage Loan, State and Federal Tax Credits, EZ Sales Tax Rebate &
Equity, Neighborhood Stabilization Plan Funds, and Land Contribution by City of Davenport.
Section 8 - Visual Description of
Proposed Project
8a) Conceptual Drawings
Visual Description of Proposed Project
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View from College St — Green space above 2nd floor for tenants+ Swan Parking Facility to the East
Street -Level View from Intersection of College St & Gilbert St
Aerial View Looking Northwest Aerial View Looking Southeast
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Option #2: Mixed Use — grocery store and 100 workforce rental housing units
Although exact renderings of this option have not yet been completed, below are renderings of some mixed -use
designed by ESG Architects that are similar in scope and size to what Sherman Associates is proposing at College
St & Gilbert St.
8b) Conceptual Square Footage
Office /Commercial)
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Square Footage: Office /Commercial
Option #1: Mixed Use - grocery store, Class A office space, and 132 workforce rental housing units
Mixed Use Project- Post Tension Concrete
Iowa City, Iowa
G ilbert a nd College Streets
Level Use Total GSF Parking GSF Commercial GSF' Office Apt GSF I NRSF I Units Parking
Level P1 parking 24,695 24,595
69
Leven
69
Leven commercial* 24,570
1,562
21,175 168 1,562
Mezz commercial
Mezz office 3,484
Level residential 18,954
Level office 24,570
20
24,397 1,151
18,954
Level residential 12,156
Level residential
12,156 10,614 11
19,954
Level residential 12,156
Level5 residential 18,954
12,156 10,614 13
16,111
Level S residential 12,156
residential 18,954
12,156 10,614 13
20
Level residential 12,156
144,0.35 24,695 24,659
12,156 10,614 13
69
Level residential 12,156 12,156 10,614 13
Level residential 12,156 12,156 10,614 13
Level residential 12,156 122,156 10,614 13
Level 10 residential 12,156 12,156 10,614 13
Level 11 residential 12,156 12,156 10,614 13
Level 12 residential 12,156 12,156 10,614 17
Level 13 residential 3,828 3,828 3,802
Total 199,223 24,695 11 24,659 1 24,565 1 128,101 1 109,942 1 32 1 69
Includes 1, 665 SF Loading Dock ESG Architects Inc September 26, 2612
Option #2: Mixed Use - grocery store and 100 workforce rental housing units
Mixed Use Project - Wood Frame
Iowa City, Iowa
Gilbert and College Streets
Level Use Total GSF Parking GSF Commercial GSF' Apt GSF NRSF Units Parking
Level P1 parking 24,695 24,695 69
Leven commercial` 24,570 21,175 1,562
Mezz commercial 3,484
Level residential 18,954 18,954 15,111 20
Level 3 residential 18,954 18,954 16,111 20
Level residential 18954 19,954 16,111 20
Level5 residential 18,954 18,954 16,111 20
Level residential 18,954 18,954 16,111 20
Total 144,0.35 24,695 24,659 11 96,332 80,555 100 69
includes 1,565.51F Loading Dock ESC Architects Inc September 26, 2012
8c) Conceptual Square Footage
Residential /Parking)
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Square Footage: Residential / Parking
Option #1: Mixed Use - grocery store, Class A office space, and 132 workforce rental housing units
Mixed Use Project -Post Tension Concrete
Iowa City, Iowa
Gilbert and College Streets
Level Use Total GSF Parking GSF Commercial GSF- Nfice Apt GSF NRSF Units Parking
Level P1 parking 24,695 24,695
69
Level
69
Level commercial" 24,570
1,562
21,175 168 1,562
Mezz commercial
Mezz office 3,484
Level residential 18,954
Level office 24,570
20
24,397 1,151
18,954
Level residential 12,156
Level residential
12,156 10,614 11
18,954
Level residential 12,156
Levels residential 18,954
12,156 10,614 13
16,111
Level s residential 12,156
residential 18,954
12,156 10,614 13
20
Level residential 12,156
1 144,035 11 24,695 24,659 11
12,156 10,614 1 13
69
Level residential 12,156 12,156 10,614 13
Level residential 12,156 12,156 10,614 13
Level residential 12,156 12,156 10,614 13
Level 10 residential 12,156 12,156 10,614 13
Level 11 residential 12,156 12,156 10,614 13
Level 12 residential 12,156 12,156 10,614 17
Level l3 residential 3,828 3,828 3,802
Total 1 1 199,223 1 24,695 1 24,659 24,565 128,101 109,942 132 69
Includes 1,6655f Loading Dock FSG Architects Inc September 26, 2012
Option #2: Mixed Use - grocery store and 100 workforce rental housing units
Mined [Asp Project - Wood Frame
Iowa City, Iowa
Gilbert and College Streets
Level cse Tu Cd GSF Parking GSF Commercial 65F* Apt GSF I NRSF Units Parking
Level PI parking 24,695 24,695 69
Level commercial" 24,570 21,175 1,562
Mezz commercial 3,484
Level residential 18,954 18,954 16,111 20
Level residential 18,954 18,954 16,111 20
Level residential 18,954 18,954 16,111 20
Levels residential 18,954 18,954 16,111 20
Level6 residential 18,954 18,954 16,111 20
Total 1 1 144,035 11 24,695 24,659 11 96,332 1 80,555 100 69
Includes 1, 665 5F Loading Dock ESC Architects Inc September 25, 2012
8d) Schematic Layout
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Schematic Layout
Option #1: Mixed Use — grocery store, Class A office space, and 132 workforce rental housing units
Please see Attachment A2 - Floor Plans: Option # 1.
Option #2: Mixed Use — grocery store and 100 workforce rental housing units
Please see Attachment A3 - Floor Plans: Option # 2.
8e) Schematic of Pedestrian -Level
Facade
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Pedestrian Level Facade
View from Intersection of College St & Gilbert St
Western side of building facing Gilbert St
Section 9 - Project Narrative &
Financial Estimates
pToDQC l a r a o Q
Development Proposal
Sherman Associates is proposing two development options for the northeast corner of College Street and Gilbert
Street Northeast. Each option capitalizes upon the site's prominent urban location and achieves the City's goal
of transforming the underutilized property into an urban mixed -use project that will contribute to the vibrant
and walkable downtown area. The developments are consistent with the City's Economic Development Policy
and Downtown Strategic Plans, and are being presented to stimulate dialogue regarding potential public /private
partnership terms.
Under both development proposals, Sherman Associates would acquire the MidAmerican Energy parcel and
develop the entire 24,000 square foot site as one project. Both scenarios also include underground parking, a
street -level grocery store, and renovation of the city park bordering the site's northern side with the help of a
local landscape architect. The residential component will include a mix of efficiency, one bedroom and two
bedroom units. Apartments will be larger than what is currently the norm in downtown Iowa City's core, and
pricing will be established to foster a professional atmosphere at a fair price for the local workforce.
As part of Sherman Associates' development, New Pioneer Food Co -Op has agreed to purchase and occupy a
space on the project's first floor. A Letter of Intent has been secured and is attached as Attachment A2. New
Pioneer has access to financing, and is prepared to execute a Purchase Agreement upon the City's selection of
Sherman Associates as Developer of the site. Including New Pioneer in the development will provide
neighborhood residents with affordable groceries in a location that can be easily accessed by foot, car, or public
transportation. Their inclusion will satisfy neighborhood grocery demand and also increase pedestrian traffic
between the site and downtown core.
Option #1: Mixed Use - grocery store, Class A office space, and 132 workforce rental housing units.
y
A
Option #1 would include one level of underground parking accessible from the adjacent Swan Parking Facility,
New Pioneer Food Co -Op on the street level, Class A office space on the second level, and 136 units of workforce
rental housing on levels 3 -13. Floor plans for the first two levels would almost equal the site's gross area, and
the apartments would be set back to provide a community green space on top of the offices as an amenity for
tenants. Rental apartments would consist of 20 efficiency units, 96 one - bedroom units, and 20 two - bedroom
units. Lofts will be constructed on the top few floors, and will provide additional building step backs at the top
of the building to provide additional architectural interest. Sherman Associates would also construct 24,570
square feet of Class A office space on the building's second floor to address the City's desire to have additional
office space near the community and recreation center across College Street. In order to include the office
space as part of this development plan, Sherman Associates would require the City to sign a Purchase
Agreement for the full second floor and pay the associated pro -rata share of project development costs.
Combined, expenses associated with the office shell construction are estimated to be $5,600,000. It should also
be noted that New Pioneer has expressed interest subleasing a portion of the second level office space if it is
included in the development.
Although the high- density project described in Option 1 may be the site's optimal urban /downtown
development, total costs of the necessary post- tension concrete construction are estimated to be over $50
million, or $252 per square foot. We have identified $35.15 million in hard funding sources toward this
development, leaving almost $14.97 million that must be filled by soft sources. TIF, EZ Credits and Land
Contributions have been estimated at $8.57 million; after which, a financing gap of $6.39 million still remains to
be identified to make the project viable. Potential sources to fill this gap include New Market Tax Credits,
Community Development Block Grants and HOME Funds; all of which Sherman Associates has experience
working with. More detailed numbers are provided in Section 9 and Attachment A4.
Option #2: Mixed Use — grocery store & 100 workforce rental housing units.
Similar project recently designed by team. Not an actual rendering of this proposal.
Option #2 would include one level of underground parking accessible from the adjacent Swan Parking Facility,
New Pioneer Food Co -Op at street - level, and 100 units of workforce rental housing on floors 2 -6. All floors
would have the same floor plate, roughly equal to the parcel size. The benefit of this option is the reduced cost
of constructing a wood -frame structure instead of the post- tension concrete necessary for high -rise
construction. Sherman Associates estimates the cost of this development proposal to be approximately $25.5
million, or $177 per square foot. We have identified $19.01 million in private hard funding sources; which leaves
a gap of $6.47 million that must be filled by soft sources. TIF, EZ Credits and Land Contributions are estimated to
fill the gap and make the project financially viable. A more detailed breakdown of financing sources and
amounts is provided In Section 9 and Attachment A4.
Conclusion:
Both of the development scenarios proposed by Sherman Associates are of mixed -use nature and will contribute
to the City's goal of drawing people downtown. The workforce housing, New Pioneer co -op, renovation of the
adjacent park, and potential office space are mutually- supporting and provide synergies for users of the site and
the neighborhood. These uses also have varying peak traffic hours and will generate constant activity at and
around the site throughout the day. Both versions of the proposed urban density development achieve the
City's goal of converting this underutilized property into an economically productive extension of Iowa City's
busy downtown area.
9a) Organization and Management
Approach
PT ENUOMME2
aA
Organization and Management Approach
Sherman Associates and the development team have a track record of successfully bringing mixed use
development projects to market. Our achievement is driven by three key competencies, identified below:
Effective Public- Private Partnerships: The development team recognizes local governments as critical partners in
the development process. Through coupling the expertise of the development team with the local knowledge of
government entities we create measurable impact within communities. This impact is clearly illustrated in our
Heritage Park project. Sherman Associates, ESG Architects and the Minneapolis Public Housing Authority
partnered to create a mixed use development that incorporates housing, a memory care facility and public
space. The development has a contemporary design and brings and brings a needed service to the community.
See section 6 for a brief project summary. Effective communication and partnership between the development
team and a local government entity enabled a successful project. The knowledge and experiences gained from
this partnership, as well as others, will be brought to the College I Gilbert Street project.
Complex Financing: Sherman Associates has the ability to secure and manage a variety of complex funding
sources. We have extensive experience in TIF, LIHTC, Historic TC, New Market Tax Credits, HUD Mortgages,
Energy Rebates, and Enterprise Zone Credits. Our Riverside Plaza rehabilitation project has 17 sources that must
be managed. Sherman Associates brings this experience, as well as strong relationships with financial
institutions, to the College I Gilbert Street project.
Thoughtful Design and Quality Construction: The development team has been recognized for their innovative
and functional designs. In 2010 the development team won a 'Best of the Decade" award from the
Minneapolis /St. Paul Business Journal for the Midtown Exchange /Chicago Lofts project. This mixed use
development is highlighted in section 6. We have experienced construction professionals on staff to ensure
quality and timely delivery. Effective communication with stakeholders allows us to implement cost saving
mechanisms while ensuring the aesthetic and functional appeal of the project.
The development team has demonstrated the ability to deliver mixed use products similar to what is proposed
at the CollegelGilbert Street site. This is a result of an organizational /management approach that values
communication and places a premium on accountability and delivery.
mob
ni
9b) Project Schedule for Completion
PmDO(EN HOTTOVOWQ M FOURS HCOM EMUOMBUO
Proiect Schedule for Completion
It is anticipated that that the project will be completed within 18 -24 months following the property acquisition
A detailed construction schedule will provided at a later date.
9c) Mid - American Energy Property
pmDO(E N HOTTOVOWQ M FOURS HCOM EMUOMBUO
MidAmerican Energy Property
This proposal includes the MidAmerican Energy Property in the development.
9d) Financing Plan
Financing Plan
Option #1: Mixed Use — grocery store, Class A office space, and 132 workforce rental housing units
Please see Attachment A4 - Proforma: Option # 1
Option #2: Mixed Use — grocery store and 100 workforce rental housing units
Please see Attachment A5 - Proforma: Option # 2
9e) Prospective Purchasers or Tenants
Prospective Purchasers or Tenants
Grocery Store
ti
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produced foods.
Sherman Associates has executed an LOI (Attachment A6: New Pioneer LOI) with the
local New Pioneer Food Co -Op to anchor the project's entire first floor. New
Pioneer is a business cooperatively owned by its customers with the mission to
serve the needs of its members and to stimulate the local agricultural production of
natural and organic foods. They do so by providing a market for such foods in a full -
line grocery setting. New Pioneer emphasizes quality, fair prices, and product
information. As an environmentally and socially responsible member of the Iowa
communities they serve, New Pioneer's goal is to provide consumers with healthy
food and educate the public on the benefits of buying organically and locally-
If Sherman Associates is selected as the site Developer, New Pioneer is prepared to finalize terms of Purchase
Agreement. They indicate having the financial capacity to move forward, and have stressed their desire to
relocate into this bigger space closer to the downtown core.
More information on New Pioneer Food Co -Op can be found on their website at: www.newpi.coop.
Potential Office Space
As part of the 12 -story mixed -use development proposal, Sherman Associates would construct 24,750 square
feet of Class A office space on the building's second floor. This space is a direct response to indications that City
departments are looking for nearby expansion space. If office space is to be included in the development,
Sherman Associates would require the City to purchase the second floor as a condominium unit and participate
in development costs on a pro -rata basis. On a preliminary basis, we anticipate that the cost to the City would
be approximately $5,600,000 related to this space.
9f) Marketing Approach
Marketing Approach
Sherman Associates' approach to marketing new construction properties in lease up involves an extensive
review of the surrounding neighborhood and the potential competition in conjunction with staffing and external
advertising review. Prepared marketing budgets include but are not limited to:
Brochures and other Marketing Materials
Internet Listing Services
Office Setup and Staffing Costs
Open House Events
Referral Services
Site Signage
A full marketing plan and expected schedule of lease up with standard goals is created to all state and local
requirements for lease up completion. Sherman Associates' marketing staff works closely with compliance,
regional management and executive management to assure that this plan is executed and all deadlines are
delivered by their expected dates.
Specific to 1 :t Floor Retail:
New Pioneer and Sherman Associates have executed an LOI for the entire first floor of the project.
Specific to Potential 2nd Floor Office:
If the 13 -story mixed -use proposal is selected, the City would be responsible for securing a user to purchase the
2 "d floor condominium unit before Sherman Associates begins construction of the project.
9g) Purchase Price
Proposed Purchase Price
Option #1: Mixed Use — grocery store, Class A office space, and 132 workforce rental housing units.
City Land Acquisition Cost: 1,000,000
Mid - American Land Acquisition Cost: 500,000 approximate appraised value
City land Contribution: 1,000,000)
Total Land Costs: 500,000
Utility Relocation: 950,000
Total Purchase Price: 1,450,000
Option #2: Mixed Use — grocery store and 100 workforce rental housing units.
City Land Acquisition Cost: 1,000,000
Mid - American Land Acquisition Cost: 500,000 approximate appraised value
City land Contribution: 500,000)
Total Land Costs: 1,000,000
Utility Relocation: 950,000
Total Purchase Price: 1,950,000
9h) Gap Financing
p *EN
Gap Financing
Option #1: Mixed Use — grocery store, Class A office space, and 132 workforce rental housing units.
Total development cost: $50,115,746
Name of Source Type Amortization Rate Amount
First Mortgage Loan 40 4% $ 19,000,000.00
TIF Other 5,600,000.00
Owner Equity Owner Equity 6,050,000.00
Grocery Store Source 4,500,000.00
City Office Source 5,600,000.00
EZ Tax Credit Equity 1,607,760.00
EZ Sales Tax Rebate 366,759.90
City Land Contribution 1,000,000.00
Gap 6,391,225.82
50,115,746.00
We have identified $35,150,000 in hard funding sources toward this development, leaving $14,965,746 that
must be filled by soft sources. TIF, EZ Credits and Land Contributions have been estimated at $8,574,519.90;
after which, a financing gap of $6,391,225.82 remains to be identified. Potential sources to fill this gap include
New Market Tax Credits, Community Development Block Grants and HOME Funds; all of which Sherman
Associates has experience working with.
Option #2: Mixed Use — grocery store and 100 workforce rental housing units.
Total development cost: $25,487,809
Name of Source Type Amortization Rate Amount
First Mortgage Loan 40 4% $ 13,250,000.00
TIF Other 4,600,000.00
Owner Equity Owner Equity 1,492,473.82
Grocery Store Source 4,270,964.84
EZ Tax Credit Equity 1,218,000.00
EZ Sales Tax Equity 156,370.50
City Land Contribution 500,000.00
25,487,809
We have identified $19,013,438.66 in private hard funding sources and $6,474,370.50 of soft funding sources. It
is estimated that TIF, EZ Credits and Land Contributions are estimated to provide the $6,474,370.50 of funds
necessary for the project.
Section 10 - Litigation
Logo a 82ooR
Sherman Associates, Inc. & Affiliates
1. Sherman Associates, Inc. (the "Company') and its affiliate, River Point West LLC, were named as a defendant
in a lawsuit by Hubbell Terminal Corporation ( "Hubbell "). The lawsuit claimed that the Company breached its
obligations under a purchase agreement. The parties settled the matter and the Company will pay Hubbell
690,000.00 over three (3) payments.
2. Midtown Lofts LLC ( "Midtown "), an affiliate of the Company, filed an Amended Demand for Arbitration dated
January 12, 2011, in connection with the failure of sprinkler pipes and a domestic water line at the Midtown
Lofts Project, Minneapolis, Minnesota. Midtown alleged that Kraus - Anderson Construction Co. and its
subcontractors ( "KA ") negligently designed and constructed the Project. KA counterclaimed that Midtown and
other Company affiliates, Printers Row LLC, 9`h Street Lofts LLC, Sibley Court Limited Partnership and Sibley Park
Limited Partnership withheld payments due to KA under contracts relating to projects owned by such affiliates
because of the alleged defects at the Project. The matters settled and Midtown received a payment of
390,000. The Company and the affiliates agreed to make a payment of $100,000 in equal installments of
10,000 commencing December 1, 2011 and continuing on the 1" day of each month until paid.
3. The Company and its affiliates, Chicago Lofts, LLC ( "Chicago ") and SA Midtown Exchange Apartments Limited
Partnership ( "Midtown Limited Partnership ") filed a lawsuit against Ryan Companies US, Inc. (`Ryan ") on March
13, 2012, to seek recovery of damages in connection with certain operating budgets provided by Ryan for the
Chicago and Midtown Limited Partnership Projects located in Minneapolis, Minnesota. The suit alleges that
after development was complete, Ryan provided operating budgets that were substantially higher than those
delivered during acquisition and development of the Projects. The parties are currently in discussions to
mediate a settlement of the dispute.
4. The Company and its affiliates are parties to property tax challenges on an annual basis.
5. The Company and its affiliates are also involved in unlawful detainer actions on a regular basis for residential
and commercial tenants.
Section 11- References
Mike Raarup
US Bankcorp
800 Nicollet Mall, 3rd Floor
Minneapolis, MN 55402
michael.raarup@usbank.com
612 - 303 -3586
Ken Dayton
Oak Grove Capital — Executive Vice President
2177 Youngman Avenue - Suite 100
St. Paul, MN 55116
ken.dayton@oakgrovecap.com
763 - 656 -4565
Matthew A. Anderson
City of Des Moines — Assistant City Manager
400 Robert D. Ray Drive
Des Moines, IA 50309
515- 283 -4141
Noel Anderson
Community Planning & Development Director
City of Waterloo
715 Mulberry Street
Waterloo, IA 50703
319 - 291 -4366
Bruce Berger
Senior Manager, Development
Community Planning & Economic Development
City of Davenport
226 W. 4th Street
Davenport, IA 52801
563- 325 -6706
Section 12 - Organizational Aptitude
10'T anh.Vom a0 AP202uda
Many of the development team's experience and competencies have been discussed throughout this proposal.
Below are a few of the unique capabilities, resources, and assets Sherman Associates will bring to this project:
Unique Aspects of Our Team:
Successful track record of creating public /private partnerships to revitalize high priority neighborhoods.
Substantial mixed -use development experience.
In -house Construction Management team (Craftsman Construction) to oversee project planning and the
entire construction process; including hiring of a General Contractor and Subcontractors.
Confluence, a local Iowa City landscape architectural firm, is part of the development team and would
renovate the adjacent city park as an amenity for the entire neighborhood.
The project energy consultant served as Project Manager for the Iowa Utilities Board /Office of
Consumer Affairs Office Building, which was named a 2012 AIA COTE Top Ten project.
A member of Sherman Associates' Project Management team was part of a group that won the National
Developer of the Year award from NAIOP.
Select Awards
2012 Best in Real Estate: Multifamily Development or Redevelopment — Riverside Plaza
Minneapolis /St. Paul Business Journal
2011 Capstone Award: Multifamily — Grand Boulevard Lofts
Kansas City Business Journal
2011 Lifetime Achievement Award — George Sherman
Minneapolis /St. Paul Business Journal
2010 Property Excellence Award: Affordable Housing 101+ Units — Midtown Exchange
Minnesota Multi Housing Association
2009 Best of the Decade — Midtown Exchange
Minneapolis /St. Paul Business Journal
2008 Development of the Year — Syndicate Trust
City of St. Louis
2008 Top Projects — Zenith Condominiums / aloft Hotel
Finance & Commerce
2007 Best Historic Rehabilitation & Readers Choice Award — Midtown Exchange & Chicago Lofts
Affordable Housing Finance Magazine
2006 Project of the Year: Adaptive Reuse — Midtown Exchange Apartments & Chicago Lofts
Multifamily Executive Awards
2005 Best Smart Growth Community Up to 150 Units — Waterstreet Brownstones
Professional Builder Magazine
Section 13 - Submittal Signature Form
pry pm a zubm'ffla0 RDTM
Please see Attachment A7: Proposal Submittal Form.
Al - Signed Letter of Interest
sherman
ASSOCIATES
September 27, 2012
City Cleric, City Hall
410 East Washington Street
Iowa City, Iowa 52240
Re: Private Developer Proposal for the College St / Gilbert St Northeast Corner Site
Dear Iowa City Staff,
Sherman Associates Inc., ESG Architects, Craftsman Construction, Confluence Landscape Architects and the
Weidt Group are pleased to submit the enclosed proposal in response to Iowa City's College St / Gilbert St
Northeast Corner Site RFP. The enclosed material demonstrates our team's experience and ability to deliver a
product that is in line with the City's goal of an urban, downtown - density development.
We offer two options; a thirteen -story mixed -use grocery / office / apartment building, or a six story mixed -use
grocery / apartment building. Both options result in a more vibrant streetscape and quality housing for Iowa City
residents. Our team possesses three key competencies that will enable us to deliver this product on time and on
budget:
Effective Public- Private Partnership: The development team recognizes local governments as critical
partners in the development process. Through the coupling of expertise and through effective
communication we create measurable impact within communities.
Thozl&h l Design and Quality Construction: The development team has experienced design and
construction professionals on board to ensure quality and timely delivery. Effective communication with
stakeholders allows us to create innovative and aesthetically appealing buildings while ensuring that
budgets are held.
a Complex Financing: Sherman Associates has the ability to secure and manage a variety of complex
funding sources. We bring our experience, as well as strong relationships with financial institutions, to the
College / Gilbert Street project.
Our development team is excited about the possibility of partnering with Iowa City to develop this underutilized
parcel into a building that demonstrates the vibrancy of the downtown district. Thank you for the opportunity to
submit this proposal. We look forward to answering any questions you may have through the selection process.
Sincerely,
A
George Sherman
President/Owner
Sherman Associates, Inc.
233 Park Avenue South. Suite 201, Minneapolis, MN 55415
flTel612- 332 -3000 Fax: 612- 332 -81 19 • v .sherman- associates.com
Sherman Associates is an Equal Opportunity Employer
A2 - Floor Plans: Option # 1
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A4 - Proforma: Option # 1
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
A. Project Description
Project Name: College I Gilbert Street Site - Post Tension Concrete
Address: College & Gilbert Street
City, State: Iowa City, Iowa
B. Site & Structure Information
1. SITE INFORMATION
a. Total Site Area SF:
b. Legal Description:
2. BUILDING INFORMATION
Existing Buildings:
Year Built:
Zipcode
County
Acres: Density: unitslacre
Bldg Square Feet:
Type of Construction:
Types of Structures
Housing Space:
Type of
Building
1)
Number of
Buildings
2)
Number of
Stories
Number of
Units
Gross
Sq. Feet
New Construction E 1 13 132 199,223.00
Rehabilitation
20 550 825 16,500
Total Housing: 1 13 132 1 199,223
Non-Housing Space:
Administration
850 1,275 117,300
Community Space
322.0
MR
Common Area
20 1,150 1,725 34,500
Total Hon - Housin r 0 0 0
90.0
Total Space: 1 13 132 199,223
1). Week up (WU), Townhomes (TH), Elevator (E), Single Family (SF), Duplex(DF).
2). Total number of residential structures, excluding detached garages and detached accessory buildings.
II. Development Information
A. Rent Matrix
Unit Type
MR TC Beds
Number of
Units
Unit Size
S Ft Monthly Rent
Gross Monthly
Rent Potential Tenant Utilities
Monthly
TenantRent
Rent
Restriction
AMI )
Income
Restriction
AMI)
Total Rental
Rooms
MR OBR 20 550 825 16,500 16,500 70.0
MR 1BR 92 850 1,275 117,300 117,300 322.0
MR 2BR 20 1,150 1,725 34,500 34,500 90.0
Units: 132 112,200 $ 168,300 Total Rental Income (mo):
per tea floor 12 10200 $ 2,019,600 Total Rental Income (yr):
Total Rooms: 482.0
averave sf 850.00 $1.50 PSF
B. Commercial & Parking
1. Commercial Space sf $ /psf /yr $ - Total Commercial Revenue
2. Parking Spaces
Surface quantity $0.00 $ rent/mo
Underground Garages 69 quantity 1 70.00 $ rent/mo
Garage (individual) quantity $0.00 $ renf/mo
57,960
57,960 Total Parking Revenue
Proforma Page 1 of 8
A. Annual Income
1. RENTAL INCOME
a. Rental Income Potential
b. Commercial Income Potential
c. Parking Rent Potential
Total Rental Income
2. OTHER INCOME
a. Tenant Fees (specify)
b. Laundry Income
c. Forfeited Security Deposits
d. TIF Income
e. Misc. Income
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
per unit
per unit
per unit
1a. 2,019,600
16. -
1 c. 57,960
Total Rental Income Potential $ 2,077,560
2a.
26.
2c.
2d.
2e.
Total Other Income $
3. RENTAL LOSS
a. Rental Vacancy 5% 3a. 100,980
b. Commercial Vacancy 5% 3b.
c. Parking Vacancy 5% 3c. 2,898
d. Other Income Vacancy 5% 3d.
e.RentConcessions 3e.
f. Bad Debt 3f .
g. Other Loss: (specify) 3g.
Total Rental Loss 103,878
4. TOTAL REVENUE
1. Rental Income 2,077,560
2. plus: Other Income
3. less: Rental Loss 103,878
Total Revenue $ 1,973,682
B.Expenses
1. ADMINISTRATIVE EXPENSES
a. Advertising / Marketing 150 $ /per unit 1 a. 19,800
b. Management Fee 16. 104,264
Per Unit Per Month Fee: $66
Total Revenue: 5.28%
c. Legal
d. Auditing
e. Bookkeeping/ Accounting
f. On -Site Management Salary
g. Telephone
h. Other: (s
2. MAINTENANCE EXPENSES
a. Elevator Maintenance / Contract
b. Exterminating
c. HVAC Repair Services
d. Other Contract Services
e. Maintenance & Janitorial Supplies
f. Grounds Maintenance
g. Snow Removal
h. General Repair Services
i. Paint / Decorating Materials
j. Maintenance & Janitorial Payroll
k. Other: (specify)
I. Other: (specify)
3. UTILITIES
a. Water
b. Sewer
c. Trash
d. Gas & Oil
e. Electricity
1 c. 12,000
Id. 10,000
le. 6,000
1f. 75,000
1 g. 3,000
1 h.
Total Administrative Expenses $ 230,064
2a. 8,000
2b.
2c. 8,000
2d.
2e. 12,500
2f. 5,000
2g. 5,000
2h. 50,000
2i. 35,000
2j. 55,000
2k.
21.
Total Maintenance Expenses $ 178,500
3a. 7,000
36. 12,000
3c. 10,000
3d. 18,000
3e. 25,000
Total Utilities $ 82,000
Proforma Page 2 of 8
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
4. TAXES, RESERVES & ESCROWS
a. Insurance 4a. 20,000
b. Real Estate Taxes $ Per Unit $ 2,310.61 46. 305,000
c. Replacement Reserves $ Per Unit $ 200.00 4c. 26,400
d. Miscellaneous Reserves $ Per Unit 4d.
Total Taxes, Reserves, & Escrows $ 351,400
5. OTHER EXPENSES
a. Security Expense 5a. 5,000
b. Support Services (specify) 5b.
c. Tax Credit Monitoring Fees 5c.
d. Mortgage Insurance Premium (MIP) 5d.
e. Other (specify) 5e.
Other (specify) 5f.
Total Other Expenses
6. TOTAL EXPENSES
1. Administrative Expenses 1. 230,064
2. Maintenance Expenses 2. 178,500
3. Utilities 3. 82,000
4. Taxes, Reserves & Escrows 4. 351,400
5. Other Expenses 5.1 5,000
Total Operating Expenses $ 846,964
6,416 Expense Per Unit
C. Net Operating Income
A. Annual Income A. 1,973,682
B. Operating Expenses B.1 846,964
Net Operating Income $ 1,126,718
Per Month; $ 93,893
Per Unit (yr)r $ 8,536
Per Unit (me): $ 711
Proforma Page 3 of 8
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
A. Income Available for Debt Service
1. Supportable Mortgage Based on Stabilized NOI
NOI $ 1,126,718
Debt Coverage Ratio 1.15
NOIAVailable for Debt Service $ 979,754
2. Other Amortized Subordinated Debt
Annual Debt
Lender Principal Rate Term Amortization Term Service
Total Subordinated Debt Service $
3. Total Net Operating Income Available for Debt Service less Total Subordinated Debt $ 979,754
B. Maximum Mortgage Calculations
1. Mortgage Based on Income Approach
a. First Mortgage Terms
Rate: 3.50 % Term: 40 Amortization: 40 Mile. 0.50
b. Debt Service Factor
Debt Constant; 0.04649 Debt Constant with MIP 0.05149
c. Annual Fee Fee Type:
Maximum Supportable Mortgaged Based on NOI. $ 19,029,180 Per Unit. $ 144,160
2. Mortgage Based on Loan to Value
a. Cap Rate 6.00
b. Capped NOI $ 18,778,627
c. Loan to Value 80
Maximum Supportable Mortgaged Based on LTV.' $ 15,022,900 Per Unit. $ 113,810
3. Mortgage Based on Loan to Cost
a. Total Development Cost 50,115,746
b. less: Commercial Construction 8,103,550
42,012,196
c. 86% of Housing Development Cost 36,130,488
4. Negotiated Mortgage
Maximum mortgage based on LTC. $ 36,130,488 Per Unit. $ 273,716
Selected Mortgage Amount. $ 19,000,000 Per Unit. $ 143,939
Proforma Page 4 of 8
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
A. Development Costs
Eligible Basis
1. Acquisition /Refinance
a. Acquisition Cost
b. Legal Fees
c. Existing Structures
d. Other:
2. Site Work
a. On -site Work
b. Off -Site Work for Utility /Paving Extension
c. Demolition
d. Garages (not included in rent)
e. Parking (not included in rent)
f. Landscaping
g. Other: Utility Relocation
3. Construction
a. New Building Residential
b. New Building Grocery
c. New Building City Office
d. New Buiding Parking Garage
e. Other:
Total Cost 30% 70% Historic
1,500,000
Total AcquisitionlRefinance 1,500,000 - - -
P, w¢ $
Gross Construction
f. Community Service Facility
g. General Requirements /Conditions idyross
h. Builder Overhead idyross
i. Builder Profit d grass
j. Builder Bond Fee
200,000
k. Construction Supervision
Net Construction
I. Construction Contingency 4.00%
m. Design Contingency
50,000
n. Other:
Less EZ Sales Tax Rebate
100,000
Less Energy Rebate
Less Builders Eligible Basis Reduction
Subtotal Site Work & Construction
Per Unit
Exclude Commercial) Per Unit
Total Site Work
185,232.27 24,450,660
4,909,450
3,194,100
1,975,600
39,674,77257
300,566.46 Per sf $199.15
239,175.93
4. Professional Fees
a. Architect Fees - Design
b. Architect Fees - Supervision
Total Amhdect. $800,000 /d 'k 2 02%
c. Engineer Fees
d. Attorney Fees (Real Estate)
e. Accountant Fees
f. Other:
g. Other:
Total Professional Fees
5. Interim Costs
a. Construction Interest
b. Construction Loan Origination Fee
c. Construction Loan Inspection
d. Taxes During Construction
e. Water, Sewer and Impact Fees
f. Other: Hazard and Liability Insurance
Total Interim Costs
600,000
200,000
50,000
100,000
950,000
1,000,000
75,000
1,075,000
Proforma Page 5 of 8
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
6. Financing Fees & Expenses
a. Bond Premium
h. Bond Costs
c. Credit Report
d. Cost of Issuance
e. Permanent Loan Origination Fee
f. Permanent Loan Credit Enhancement
g. Attorney's Fees
h. TIF Fee
i. Title and Recording
j. Mortgage Insurance Premium
k. Other: HUD Application /Exam Fees
I. Other: HUD Inspection Fees
7. Soft Costs
a. Property Appraisal
h. Market Study
c. Environmental Report
d. Survey
e. Rent -Up Marketing
f. Tax Credit Application Fees
g. Tax Credit Compliance Fee
h. Tax Credit Reservation Fee
i. 8609 Fee
j. Cost Certification /Accounting Fees
k. Permanent Relocation Expenses
I. Temporary Relocation Expenses
m. Furnishings and Equipment
n. Capital Needs Assessment Report
o. Legal
p. Other:
q. Other:
8. Syndication Costs
a. Bridge Loan Fees and Expenses
h. Organizational (Partnership)
c. Tax Opinion
d. Other:
9. Developers Fees
a. Developer Fee
h. Developer Overhead
c. Consultant Fee
d. Other:
10. Project Reserves
a. Working Capital
h. Operating Deficit Reserve
c. Escrows
d. Other:
Total Financing Fees & Expenses
Total Soft Costs
Total Syndication Fees
d TnC 9 99%1 4,550,000
Total Developer's Fees 1 4,550,000
984,000
479,973
Total Project Reserve 1 1,463,973
Total Development Gosts $ 50,115,746
per unit, $ 379,665 persgft: $ 252
exclude commercial) per unit: $ 247,589
C. Total Basis for Tax Credits
Total Basis for Tax Credits $
per unit. $
persgft. $
Total Development Costs
less: Project Reserves
50,115,746
1,463,973
48,651,773
Proforma Page 6 of 8
30% 70% Historic
Total.
per unit.,
persgft:
Proforma Page 6 of 8
College I Gilbert Street Site -Post Tension Concrete
Development Proforma
A. Sources of Funding
1. Negotiated Mortgage Amount: $ 19,000,000
Name of Source Type Amortization Rate Amount Per Unit Notes
First Mortgage Loan 40 4% 19,000,000.00 143,939
TIF Other 5,600,000.00 42,424
Owner Equity Owner Equity 6,050,000.00 45,833
Grocery Store Source 4,500,000.00 34,091
City Office Source 5,600,000.00 42,424
EZ Tax Credit Equity 1,607,760.00 12,180
EZ Sales Tax Rebate 366,759.90 2,778
City Land Contribution 1,000,000.00 7,576
Gap 6,391,225.82 48,418
50,115,746 I $ 379,665
Gap: positive I (negative) $
Proforma Page 7 of 8
TIF Analysis
Residential Value Per Unit
Residential Class Rollback
Commercial Value
Commercial Class Rollback
Tax Rate
Current Tax Capacity
Residential Value
15,180,000 $
115,000
50.75%
90% of sale
0.03949917
0
Roll Back Taxes Generated
7,704,123 $ 304,306.47
Commercial Value Roll Back Taxes Generated
4,050,000 $ 4,050,000 $ 159,971.64
Total Taxes Generated $ 464,278.11
Value Added $ 464,278
less 10% Admin $ 417,850.30
DCR 1.15 $ 363,348.09
5,676,252.87
Max Payment
Max TIF Mortgage
A5 - Proforma: Option # 2
College I Gilbert Street Site - Wood Frame
Development Proforrna
Project Name: College I Gilbert Street Site - Wood Frame
Address: College & Gilbert Street Zipcode 52240
City, State: Iowa City, Iowa County
B. Site & Structure Information
1. SITE INFORMATION
a. Total Site Area SF: Acres: Density: mitslacre
b. Legal Description:
2. BUILDING INFORMATION
Existing Buildings:
Year Built:
Bldg Square Feet:
Type of Construction:
Types of Structures
Housing Space:
Type of
Building
1)
Number of
Buildings
2)
Number of
Stones
Number of
Units
Gross
Sq. Feet
New Construction E 1 6 100 144,035
Rehabilitation
15 550 825 12,375
Total Housin 1 6 100 144,035
Non-Housing Space:
Administration
850 1,275 89,250
Community Space
245.0
MR
Common Area
15 1,150 1,725 25,875
Total Non- Housin 0 0 1 0
67.5
Total Space: 1 6 1 100 144,035
1). Walk-up (WU), Townhomes (TH), Elevator (E), Single Family (SF), Duplex (DF).
2). Total number of residential structures, excluding detached garages and detached accessory buildings.
11. Development Information
A. Rent Matrix
Unit Type
MR TC Beds
Number of
Units
Unit Size
S Ft Monthly Rent
Gross Monthly
Rent Potential Tenant Utilities
Monthly
Tenant Rent
Rent
Restriction
AMI
Income
Restriction
A 1)
Total Rental
Rooms
MR OBR 15 550 825 12,375 12,375 52.5
MR 1BR 70 850 1,275 89,250 89,250 245.0
MR 2BR 15 1,150 1,725 25,875 25,875 67.5
Unitscl 100 1 85,000 1 $ 127,220J Total Rental Income (mot:
per res floor 20 21250 1 $ 1,530,000 Total Rental Income (yr):
Total Rooms: 1 365.0
averave sf 850.00 $1.50 PSF
B. Commercial & Parking
1. Commercial Space at $ /psf/yr $ - Total Commercial Revenue
2. Parking Spaces
Surface
Underground Garages
Garage (individual)
quantity $0.00 $ rent/mo
56 quantity $70.00 $ rent/mo
quantity $0.00 $ rent/mo
47,040
47,040 Total Parking Revenue
Proforma Page 1 of 8
1. RENTAL INCOME
a. Rental Income Potential
b. Commercial Income Potential
c. Parking Rent Potential
Total Rental Income
2. OTHER INCOME
a. Tenant Fees (specify)
b. Laundry Income
c. Forfeited Security Deposits
d. TIF Income
e. Misc. Income
College I Gilbert Street Site - Wood Frame
Development Proforrna
per unit
per unit
per unit
1 a. 1,530,000
1 b.
1 c. 47,040
Total Rental Income Potential $ 1,577,040
2a.
2b.
2c.
2d.
2e.
Total Other Income $
3. RENTAL LOSS
a. Advertising / Marketing 150 $ /per unit
a. Rental Vacancy 5%
b. Management Fee 1b.
3a. 76,500
b. Commercial Vacancy 5%
Total Revenue: 5.01
3b.
c. Parking Vacancy 5%
d. Auditing 1 d.
3c. 2,352
d. Other Income Vacancy 5%
F On -Site Management Salary 1f.
3d.
g. Telephone
e. Rent Concessions
h. Other: (specify) 1h.
3e.
F Bad Debt
2. MAINTENANCE EXPENSES
3f.
a. Elevator Maintenance /Contract
g. Other Loss: (specify)
b. Exterminating 2b.
3g.
c. HVAC Repair Services 2c.
Total Rental LOSS 78,852
4. TOTAL REVENUE
e. Maintenance & Janitorial Supplies 2e.
1. Rental Income 1,577,040
5,000
2. plus: Other Income
h. General Repair Services
3. less: Rental Loss 78,852
2i. 25,000
Total Revenue $ 1,498,188
40,000
1. ADMINISTRATIVE EXPENSES
a. Advertising / Marketing 150 $ /per unit 1 a. 15,000
b. Management Fee 1b. 75,000
Per Unit Per Month Fee: $63
Total Revenue: 5.01
c. Legal 1c. 10,000
d. Auditing 1 d. 8,000
e. Bookkeeping /Accounting 1 e. 5,000
F On -Site Management Salary 1f. 60,000
g. Telephone 1 g. 3,000
h. Other: (specify) 1h.
TotalAtlminisfrafive Expenses 176,000
2. MAINTENANCE EXPENSES
a. Elevator Maintenance /Contract 2a. 5,000
b. Exterminating 2b.
c. HVAC Repair Services 2c. 5,000
d. Other Contract Services 2d.
e. Maintenance & Janitorial Supplies 2e. 10,000
F Grounds Maintenance 2f. 5,000
g. Snow Removal 2g. 5,000
h. General Repair Services 2h. 35,000
i. Paint / Decorating Materials 2i. 25,000
j. Maintenance & Janitorial Payroll 2j. 40,000
k. Other: (specify) 2k.
I. Other: (specify) 21.
Total Maintenance Expenses 130,000
3. UTILITIES
a. Water 3a. 12,000
b. Sewer 3b. 8,000
c. Trash 3c. 7,000
d. Gas & Oil 3d. 12,000
e. Electricity 3e. 20,000
Total Utilities 59,000
Proforma Page 2 of 8
A. Annual Income A. 1,498,188
B. Operating Expenses B. 640,000
Net Operating Income $ 858,188
Per Month: $ 71,516
Per Unit (yr): $ 8,582
Per Unit (me): $ 715
Proforma Page 3 of 8
College Gilbert Street Site - Wood Frame
Development Proforrna
4. TAXES, RESERVES & ESCROWS
a. Insurance 4a. 20,000
b. Real Estate Taxes Per Unit 2,300.00 4b. 230,000
c. Replacement Reserves Per Unit 200.00 4c. 20,000
d. Miscellaneous Reserves Per Unit 4d.
Total Taxes, Reserves, & Escrows $ 270,000
5. OTHER EXPENSES
a. Security Expense 5a. 5,000
b. Support Services (specify) 5b.
c. Tax Credit Monitoring Fees 5c.
d. Mortgage Insurance Premium (MIP) 5d.
e. Other (specify) 5e.
f. Other (specify) 5f.
Total Other Expenses
6. TOTAL EXPENSES
1. Administrative Expenses 1. 176,000
2. Maintenance Expenses 2. 130,000
3. Utilities 3. 59,000
4. Taxes, Reserves & Escrows 4. 270,000
5. Other Expenses 5. 5,000
Total Operating Expenses 640,000
6,400 Expense Per Und
C. Net Onemtina Income
A. Annual Income A. 1,498,188
B. Operating Expenses B. 640,000
Net Operating Income $ 858,188
Per Month: $ 71,516
Per Unit (yr): $ 8,582
Per Unit (me): $ 715
Proforma Page 3 of 8
1. Supportable Mortgage Based on Stabilized NOI
NOI
Debt Coverage Ratio
2. Other Amortized Subordinated Debt
College I Gilbert Street Site - Wood Frame
Development Proforrna
858,188
1.15
NOI Available for Debt Service $ 746,250
Annual Debt
Lender Krincipal Kate term Amortization Is" Sorvfc&
Total Subordinated Debt Service $
3. Total Net Operating Income Available for Debt Service less Total Subordinated Debt $ 746,250
B. Maximum Mortgage Calculations
1. Mortgage Based on Income Approach
a. First Mortgage Terms
Rate: 3.50% Term: 40 Amortization: 40 MIP: 0.50%
b. Debt Service Factor
Debt Constant: 0.04649 Debt Constant With MIP 0.05149
c. Annual Fee Fee Type:
Maximum Supportable Mortgaged Based on NOlr $ 14,493,970 Per Unit: $ 144,940
2. Mortgage Based on Loan to Value
a. Cap Rate 6.00%
b. Capped NOI $ 14,303,133
c. Loan to Value 80%
Maximum Supportable Mortgaged Based on LTV.. $ 11,442,510 Per Unit: $ 114,425
3. Mortgage Based on Loan to Cost
a. Total Development Cost $ 25,487,809
b. less: Commercial Construction $ 2,805,400
22,682,409
a 86% of Housing Development Cost $ 19,506,872
4. Negotiated Mortgage
Maximum mortgage based on LTC: $ 19,506,872 Per Unit: $ 195,069
Selected Mortgage Amount. $ 13,250,000 Per Unit: $ 132,500
Proforma Page 4 of 8
1. Acquisition /Refinance
a. Acquisition Cost
b. Legal Fees
c. Existing Structures
d. Other:
2. Site Work
College I Gilbert Street Site - Wood Frame
Development Proforrna
a. On -site Work
b. Off -Site Work for Utility /Paving Extension
c. Demolition
d. Garages (not included in rent)
e. Parking (not included in rent)
F Landscaping
g. Other: Utility Relocation
3. Construction
a. New Building Residential
b. New Building Grocery
c. New Building Office
d. New Buiding Parking Garage
e. Other:
F Community Service Facility
g. General Requirements /Conditions
h. Builder Overhead
i. Builder Profit
j. Builder Bond Fee
k. Construction Supervision
Total Cost 30% 70% Historic
1,500,000
Total Acquisition/Refinance 1,500,000 - - -
Total Site
peranm $104,247.00
M
Construction
dgrass
aigrass
aigrass
Net Construction
I. Construction Contingency 4.00%
m. Design Contingency
n. Other:
Less EZ Sales Tax Rebate
Less Energy Rebate
Less Builder's Eligible Basis Reduction
Subtotal Site Work & Construction
Per Unit
exclude commercial) Per Unit
Professional Fees
a. Architect Fees - Design
b. Architect Fees - Supervision
Total Architect $400,000
c. Engineer Fees
d. Attorney Fees (Real Estate)
e. Accountant Fees
F Other:
g. Other:
5. Interim Costs
a. Construction Interest
b. Construction Loan Origination Fee
c. Construction Loan Inspection
d. Taxes During Construction
e. Water, Sewer and Impact Fees
F Other: Hazard and Liability Insurance
17,781,291
177,812.91 Per SF $123.45
149,758.91
300,000
100,000
d L nst225%
50,000
80,000
Total Professional Fees 530,000
600,000
75,000
Total Interim Costs 675,000
Proforma Page 5 of 8
College I Gilbert Street Site - Wood Frame
Development Proforrna
Financing Fees & Expenses
a. Bond Premium
b. Bond Costs
c. Credit Report
d. Cost of Issuance
e. Permanent Loan Origination Fee
F Permanent Loan Credit Enhancement
g. Attorneys Fees
h. TIF Fee
i. Title and Recording
j. Mortgage Insurance Premium
k. Other: HUD Application /Exam Fees
I. Other: HUD Inspection Fees
7. Soft Costs
a. Property Appraisal
b. Market Study
c. Environmental Report
d. Survey
e. Rent -Up Marketing
F Tax Credit Application Fees
g. Tax Credit Compliance Fee
h. Tax Credit Reservation Fee
i. 8609 Fee
j. Cost Certification /Accounting Fees
k. Permanent Relocation Expenses
I. Temporary Relocation Expenses
m. Furnishings and Equipment
n. Capital Needs Assessment Report
o. Legal
p. Other:
q. Other:
Syndication Costs
a. Bridge Loan Fees and Expenses
b. Organizational (Partnership)
c. Tax Opinion
d. Other:
9. Developer's Fees
a. Developer Fee
b. Developer Overhead
c. Consultant Fee
d. Other:
10. Project Reserves
a. Working Capital
b. Operating Deficit Reserve
c. Escrows
d. Other:
Total Financing Fees & Expenses
Total Soft Costs
Total Syndication Fees
dToo 1201% 3,060,000
Total Developer's Fees 3,060,000
714,000
334,718
Total project Reserve 1 1,048,718
Total Development Costs $ 25,487,809
per unit. $ 254,878 persgH: $177
exclude commercial) per unit. $ 212,168
C. Total Basis for Tax Credits
Total Basis for Tax Credits $
perunit. $
persgft. $
D. Total Mortgageable Costs
Total Development Costs
less: Project Reserves
25,487,809
1,048,718
24,439,091
30% 70% Historic
Total. $ $ $
perunit: $ - $ - $ -
persgH: $ - $ - $ -
Proforma Page 6 of 8
College I Gilbert Street Site - Wood Frame
Development Proforrna
1. Negotiated Mortgage Amount: $ 13,250,000
Name of Source Type Amortization Rate Amount Per Unit Notes
First Mortgage Loan 40 4% 13,250,000.00 132,500
TIF Other 4,600,000.00 46,000
Owner Equity Owner Equity 1,492,473.82 14,925
Grocery Store Source 4,270,964.84 42,710
EZ Tax Credit Equity 1,218,000.00 12,180
EZ Sales Tax Equity 156,370.50 1,564
City Land Contribution" 500,000.00 5,000
Haaaakted with perk Improvements 25,487,809 I $ 254,878
Gap: positive I (negative) $
Proforma Page 7 of 8
TIF Analysis
Residential Value Per Unit
Residential Class Rollback
Commercial Value
Commercial Class Rollback
Tax Rate
Current Tax Capacity
Residential Value
11,500,000 $
115,000
50.75%
90% of sale
0.03949917
0
Roll Back Taxes Generated
5,836,457 $ 230,535.21
Commercial Value Roll Back Taxes Generated
3,843,868 $ 3,843,868 $ 151,829.61
Total Taxes Generated $ 382,364.82
Value Added $ 382,364.82
less 10 %Admin $ 344,128.34
DCR 1.15 $ 299,242.03
4,674,782.92
Max Payment
Max TIF Mortgage
A6 - New Pioneer LOI
Letter of Intent for Mixed Use Project
This Letter of Intent pertaining to a mixed use development Project is entered into on q, 2' l - I?_
2012 by and between Sherman Associates, Inc ( "Developer ") and New Pioneer's Cooperative
Society ( "New Pioneer ").
Recitals
A. New Pioneer is a cooperative association formed under the laws of the state of Iowa
presently operating grocery stores in Iowa City and Coralville, Iowa. New Pioneer is interested
in expanding and relocating its Iowa City retail business operations to an alternate facility that
better serves New Pioneer, its members and the community. New Pioneer is aware of the City of
Iowa City's interest in seeking requests for proposals for a project to be built at the northeast
quadrant of the intersection of College and Gilbert Streets in downtown Iowa City ( "Site ").
Subject to the requisite approvals of its membership and Board of Directors, New Pioneer is
interested in pursuing the Site as a possible location for its relocated business activities.
B. Developer is a developer of real estate projects and has indicated an interest in
developing a multi -use commercial /residential project on the Site (the "Project "). Once the City
of Iowa City ( "City ") completes and publishes its Request for Proposals ( "UP "), Developer is
contemplating submitting a proposal for the acquisition of the Site for development of the
Project.
C. New Pioneer is interested in being a part of the Developer's Project, and the Developer
desires having New Pioneer be an occupant of the Project, believing New Pioneer's participation
enhances the feasibility of the Project.
D. The parties wish to enter into a non - binding letter of intent to express the basic
parameters for their continuing discussions and negotiations for New Pioneer to be included as a
proposed occupant of the Project in connection with the Developer's proposal to be submitted to
the City, and ultimately for the parties to enter into a contract for New Pioneer's acquisition,
construction, fixturing, occupation, use and operation of a portion of the Developer's Project.
Expression of Intentions
1. Participants. Developer intends to submit a timely Project proposal to the City in response
to the City's anticipated RFP. Developer Rather intends on being the principal developer and
owner of the Project, most likely through one or more development entities that Developer may
form. The parties recognize that a Project of this size may require additional investors and
financing through one or more sources, Additionally, the parties recognize that this Project will
require the involvement of multiple professional consultants and participants such as architects,
engineers and other design consultants; accountants and lawyers; financial institutions; a
contractor; and various potential investors, Developer agrees to keep New Pioneer advised of the
key participants to be involved in the design, construction and financing of the Project, as well as
principal investors therein,
2. The Project. As presently conceptualized, the Project will involve one or two levels
of underground parking; retail (New Pioneer) on the fast floor level; zero to four floors
of office commercial; and five to ten floors of residential. It is anticipated that the
building will be appropriately separated into condominiums to allow the entire first floor,
including mezzanine if required, to be a separate unit to be acquired by New Pioneer,
with other spaces in the building to be condominiumized as the Developer may deem
appropriate for either sale or leasing. The Project will be built on three parcels now
owned by the City, a public alley to be vacated, as well as an additional parcel presently
owned by MidAmerican Energy Company. The land is described as follows:
Lots Five and Six, Block 43, of the Original Town of Iowa City, Iowa,
The property includes the alleyway along its north boundary, and the property is immediately
adjacent to a City parking facility along its east property line.
3. Project Contingencies. The parties acknowledge that the following are among various
matters that constitute contingencies that must be satisfied for the Project to proceed:
a. The Developer submitting a proposal that is accepted by the City, such proposal to likely
contain elements for the City's financial support, such as reduced land cost, TIF
financing and /or other City participation.
b. Acquisition of the City's portion of the site under terms and conditions (price and any
covenants and/or restrictions) acceptable to Developer and New Pioneer.
c. Acquisition of MidArnerican's portion of the site under terms and conditions (price and
any covenants and/or restrictions) acceptable to Developer and New Pioneer.
d, Rezoning of the parcel as may be required for the anticipated uses (grocery /retail; office;
and multi - family residential) within the Project.
e. City site plan and building permit approval of the Project under terms and conditions
acceptable to the Developer and New Pioneer.
In addition to the foregoing general threshold contingencies, the Developer will also have usual
and customary Project feasibility considerations before its final decision to proceed with the
Project, including requirements and conditions that may be imposed by the Project's investors
and lenders. As such, the Project will be conditioned upon feasibility based on Project costs as
well as final financing arrangements, all to be acceptable to Developer.
4. Purchase Agreement. The Developer and New Pioneer anticipate continuing their
discussions and negotiations in working towards a mutually acceptable purchase agreement and
related documents ("Purchase Agreement ") containing final terms and conditions for New
Pioneer's purchase of a condominium unit on the ground floor of the Project, built out to a level
of finish defined in the Purchase Agreement. The Purchase Agreement will provide substantially
more details than presently contained in this Letter of Intent with regard to time frame, costs and
contract contingencies. This Letter of Intent expresses the parties' current intentions in general
terms for the purpose of providing a base for continuing discussions, negotiations, refinement of
Project details, and each party's more specific requirements.
Prior to entering into the Purchase Agreement it is anticipated that Developer and New Pioneer
will have waived most if not all general mid financial feasibility contingencies for proceeding
with the Project, and shall also be able to demonstrate such financial capacity as will be
necessary to frilly perform the Project, whether through performance bonds, bank letters of credit
or through other means satisfactory to New Pioneer.
5. New Pioneer's Conditions and Contingencies. In order for New Pioneer to proceed with
any commitment to participate in the Project, it will have certain requirements including, but not
necessarily limited to, those in the following categories. Only preliminary specifications of these
conditions and contingencies are set forth below, which are expected to be refined and modified
as the parties get closer to implementing a Purchase Agreement:
A. Ayurovals. New Pioneer's proceeding with this Project requires membership and
Board approvals. New Pioneer has obtained membership approval for entering into a purchase
agreement. Additional Board approval will need to be obtained at various phases of the Project
including, but not limited to, approval of the Purchase Agreement and satisfaction and/or waiver
of contingencies that may be reserved in the Purchase Agreement.
B. Plans and Specifications, Final plans and specifications for the configuration,
construction and shell build -out of New Pioneer's space within the Project will need to be
incorporated into the Purchase Agreement likely as an exhibit describing the intended condition
of the property at the time of closing and transfer of possession. Developer, through its
contractors, will construct the building and fit out the New Pioneer space to "Shell" condition
according to such plans and specifications as may be modified from time to time by agreement of
the parties and/or through a change order process. Subject to final plans and specifications, the
currently anticipated general features of the build -out of New Pioneer's space within the Project
to "Shell" condition, are as follows:
Shell Description
It is expected that the New Pioneer condominium unit will be 100% complete on
the exterior of the building less signage, and that the interior of the shell includes
the following:
18 foot clear height to the underside of the structure
Concrete Floor that is hard steel troweled
Exposed concrete columns, beams, and ceiling structure-unpainted
Provisions under -floor including rough -ins for refrigeration
Provisions for sanitary connections
The interior side of the exterior walls will include insulation and vapor
barrier only, ready for sheetrock
Rough -in provisions for a kitchen hood
Electrical service capacity for 1,200 AMPS
Mechanical, Plumbing, Electrical, and Fire Protection Systems and IT
infrastructure will be installed by New Pioneer in such a way that they are
independently metered systems
The entire build -out of the New Pioneer space in the Project from "Shell" to finished condition
will be completed by New Pioneer and/or its contractors.
C. Condominium Purchase Price. The final purchase price for the New Pioneer
condominium unit shall be subject to New Pioneer's and Developer's agreement,
It is anticipated that the purchase price will be determined based on the "Developer's
Cost" for the New Pioneer condominium unit built -out to "Shell" condition. The specific
mechanism and /or formula for determining the Developer's Cost will be subject to the agreement
of Developer and New Pioneer and specified in the Purchase Agreement. The Developer's Cost
will be based on design/build pricing and bidding, including a contractor's percentage acceptable
to Developer and New Pioneer, A Developer's profit or fee will be included in the Developer's
Cost to be subject to New Pioneer's approval, The method of determining and verifying labor
and material costs, and allocating those to New Pioneer's condominium unit, will also be subject
to New Pioneer's approval. New Pioneer anticipates that Developer will allocate to the purchase
price an equitable portion of the Developer's Project costs for land acquisition, construction
financing, construction period insurance, legal, title and other settlement costs, construction
period property tax, design, and construction, plus the Developer's design and construction costs
and fees of building out the New Pioneer condominium unit "Shell" and the specific building
components dedicated to New Pioneer's use such as the loading dock and walkway, to the
approved plans and specifications, but exclude from the purchase price any marketing expense
and sales connuissions. It is anticipated New Pioneer's purchase price will include an equitable
portion of the costs of the common elements of the building that benefit or serve the New
Pioneer unit, including but not limited to the foundation, sidewalks, roof and landscaping, or are
required by the existence of the first floor or benefit the whole building, but will exclude any
costs for common elements that provide no benefit or are not used by the New Pioneer unit (e.g.,
the garage unit). New Pioneer shall also pay for developmental costs predominantly used or
needed by New Pioneer (e.g., loading dock, pedestrian bridge). Developer shall pay for
developmental costs predominantly used or needed by the housing units (e.g., items above the
first floor). All such costs shall be established in a manner that is acceptable to New Pioneer,
shall be within a maximum cost that will be specified in the Purchase Agreement, and will be
subject to reasonable verification by New Pioneer (or its agent Loeffler Construction &
Consulting). Payment by New Pioneer for its completed condominium "Shell" unit shall be at
the time of closing and transfer of possession,
New Pioneer and Developer each acknowledge that it is difficult to accurately estimate the total
Project cost and the cost of the New Pioneer space completed to "Shell" condition at the time of
responding to the City's RPP. Nevertheless, given information available as of the date of the
execution of this Letter of Intent, New Pioneer and Developer acknowledge that New Pioneer
desires the "hard construction cost" for the "Shell" to be $120 per square foot of useable space
but the actual "Developer's Cost" will be subsequently specified in the Purchase Agreement or
otherwise by written agreement of New Pioneer and Developer. The Developer believes that the
hard construction cost" will exceed $120 per useable square foot but the parties agree to get
updated numbers as soon as reasonably possible to determine the actual cost. The "hard
construction cost" excludes "soft costs ", such as land costs and architect fees. These additional
costs, when known with accuracy, shall be equitably allocated between New Pioneer and the
Developer, in a manner that is subsequently agreed to in writing by both parties,
New Pioneer shall make the following deposits in accordance with the terms and schedule set
forth below:
i) Good Faith Deposit: Upon the award of the Project, New Pioneer shall make a non-
refundable good faith deposit in the amount of $10,000. The parties agree that they
will enter into a pre - development agreement, and further agree that additional
deposits will be required as part of this agreement.
ii) Earnest Money Deposit: Upon the execution of the Purchase Agreement, New
Pioneer shall make a earnest money deposit in the amount of 10% of the aggregate
cost of the design and other pre- development soft costs for the Project (the "Earnest
Money Deposit ").
iii) Purchase Price Escrow: Prior to the date of the closing of the financing and
commencement of construction for the Project, New Pioneer shall deposit additional
cash or letters of credit, or progress payments in escrow, the terms of which escrow
shall be satisfactory to the Developer's Lender to assure payment of the Purchase
Price.
D. Financing Contingency. New Pioneer's purchase is subject to receiving a
commitment for financing its condominimn unit upon such terms and conditions as may be
acceptable to New Pioneer in its sole determination. This financing contingency must be waived
before entering into the Purchase Agreement.
E. Public Support, To the extent that the Developer is able to obtain TIF financing
and/or other benefits that are presented by and available for use through the New Pioneer space
through the City as an incentive to proceed with the Project, New Pioneer anticipates receiving
an equitable allocation of such benefit to reduce the costs of the New Pioneer portion of the
Project, because the city is very interested in the development having a occupant such as New
Pioneer in the project. Such benefits will exclude the benefits targeted solely for housing. Parties
understand that significant assistance will be needed to construct the housing and parking or the
project will not be viable.
F. Design and Construction. The general design and configuration of the Project will
need to be compatible with New Pioneer's intended use of the fast floor, and otherwise
acceptable by New Pioneer in its determination. Such consideration will include, but not
necessarily be limited to, the following:
i. Locations of entrances and exits
ii. Arrangements for deliveries, loading zones and trash storage
iii. Specified Utilities, electrical service, gas service, mechanical and plumbing
iv. Exterior and interior design and materials
V. 13VAC systems with separate operation from remainder of building
vi. Underfloor Refrigeration Rough -in
vii. Electrical Service separate from remainder of building
viii. Separate gas, water, electricity and other meters
ix. LEED design and implementation
X. Elevator service for both first floor and mezzanine
xi. Trash, composting and recycling facilities
xii. Parking immediately adjacent to the grocery entrance; 100 stalls
G. Project Personnel. Key personnel on the Project will need to be acceptable to New
Pioneer, including the architect, engineer, Project manager, general contractor, key
subcontractors and possibly others.
H. Parking. New Pioneer's going forward will be contingent upon an agreement with
the City, satisfactory to New Pioneer in its sole determination, with regard to pedestrian access
from the adjacent parking ramp as well as for 100 parking spaces to be made exclusively
available for New Pioneer's use within the adjacent parking ramp. New Pioneer will be
responsible for negotiating such arrangements with the City, with the intent to have such matters
resolved, if possible, before entering into the Purchase Agreement, but otherwise a condition of
the Purchase Agreement.
I. Condominium Matters. New Pioneer's proceeding will be conditioned upon Developer
providing a condominium declaration that is reasonably acceptable to New Pioneer in all
respects. Condominium declaration is binding on the entire building (roof, walkway etc). New
Pioneer anticipates that the condominium declaration will carefully define all units and all
general and limited common elements, specifically setting forth those limited common elements
that are for the exclusive use of New Pioneer's unit; the exclusive use of New Pioneer's unit and
some, but not all, of the other units; and the exclusive use of some of the other units but
excluding New Pioneer's unit. Additionally, the declaration will need to appropriately allocate
common element maintenance, repair and replacement expenses, as well as building operational
expenses, so that New Pioneer pays assessments only for those common elements and those
operational expenses that relate to those aspects of the building that serve or benefit New
Pioneer's unit, and that New Pioneer is not paying for the expenses associated exclusively with
one or more other units in the building. The process for assessments, building reserves, building
management, owners association, voting, insurance and other condominium matters will all need
to be acceptable to New Pioneer. The condominium declaration, in substantially completed forth,
will need to be approved by New Pioneer prior to into the Purchase Agreement. The parties
understand that some terms of the condominium declaration will not be able to be completed
until construction of the Project is complete. Additionally, any rules in connection with the
building's operation will need to be compatible with New Pioneer's intended use, including but
not limited to those that may affect hours of operation or shipping and receiving. Lenders also
might be required to approve the declaration. Finally, the condominium declaration will include
i) use restrictions acceptable to the Developer and the Developer's lenders that prohibit the
reuse of New Pioneer's unit for uses that could negatively impact housing or office use (i.e. adult
store, pawn shop, bar); (ii) a purchase option in favor of the Developer in the event New Pioneer
goes dark or desires to sell the unit to a non- grocery user.
6
J. Basic Space Requirements. It is now anticipated that New Pioneer will have the
following space requirements within the Project:
i. Not less than 19,000 useable sq.ft. (net of stairs, elevator shafts, utility shafts and
other nonusable areas) on the fast floor (street level) with direct pedestrian access to
the sidewalks on Gilbert and/or College Streets, as well as direct pedestrian access to
the adjacent parking ramp; (see drawings attached)
ii. Not less than 3,000 useable sq.ft, on a mezzanine or 2 "d floor for store operations
which will include offices, meeting rooms, employee locker rooms and the server
room, etc.
iii. Not less than 600 useable sq.ft, of mechanical/equipment room space in the lower
parking level
iv. Loading dock access from College Street
v. First floor climate controlled walkway and space for exterior seating of
approximately 2,000 useable sq.ft, along the north side of the building (in addition to,
not part of, the 19,000 sq. ft.)
vi. Not less than 200 useable sq.ft, in lower parking level for trash, recycling and
composting (may be combined with other building users so long as New Pioneer's
requirements are satisfactorily met)
6. Time Frame. The parties acknowledge that the Project is still in an early phase. However, if
the Developer's Project is not going to come to fruition within a reasonable time frame, then
New Pioneer may wish to pursue other possible opportunities. As such, the parties agree that
they shall proceed with the expectation that the Project will be ready for occupancy some time
during the 40' calendar quarter of 2014 through the I" and 2 "d calendar quarters of 2015, and
each party shall keep the other timely advised of any matters that might arise that could
materially affect the availability of the Project for such occupancy.
7. Cooperation and Coordination. Unless negotiations and discussions are terminated by
either party, it is anticipated that the parties will coordinate their plans and cooperate to the
extent reasonable in connection with further developing plans for the Project and specifically in
connection with responding to an RFP from the City. Wlrile Developer shall take the lead
responsibility for all such matters, New Pioneer shall cooperate to the extent of its desired space
within the Project. New Pioneer is committed to be a part of the Developer's Project as the
Developer proceeds with his proposal and feasibility analysis, provided the Developer continues
to demonstrate a serious interest in pursuing the Project, continues to assemble a team of
professionals, contractors and investors capable of fulfilling the Project, and articulates a
reasonable plan for financing the Project. If at any time prior to entering into the Purchase
Agreement the Developer shall determine that this Project is no longer feasible, Developer shall
promptly notify New Pioneer of such determination. Similarly, if at any time prior to entering the
Purchase Agreement should New Pioneer determine that it no longer wishes to participate in the
Project or that Developer's progress on the Project is not satisfactory, in New Pioneer's sole
determination, New Pioneer may indicate to Developer its election to terminate negotiations and
discussions pertaining to the Project.
7
New Pioneer will reasonably cooperate, on a non - exclusive basis, with Developer towards the
objective of the Developer's proposal becoming the approved proposal submitted to the City for
the development of the Site and for Developer to proceed with its Project which will incorporate
the condominium space for New Pioneer's ownership and use. However, New Pioneer reserves
the option should there be, in New Pioneer's determination, other viable and timely projects, for
New Pioneer to work with any other party for a project on the Site or elsewhere that
appropriately and/or timely addresses New Pioneer's business needs.
8. Additional Office Space. Before the Developer commits to selling or leasing space (other
than to the City) on the second floor that would leave less than 5,000 useable scift remaining,
the Developer will contact New Pioneer with regard to any interest for additional second floor
office space. This option for additional office space is independent of the 3,000 useable sq.ft. on
the mezzanine or second floor for store operations as specified in 5.1(ii) above.
9, Confidentiality. New Pioneer and Developer hereby each agree to hold as confidential all the
other's plans, building designs, concepts, strategies of construction, financial circumstances, cost
estimates, financing, and other matters related to a party's potential participation in the Project as
may have been or may be disclosed by one party to the other party in connection with the
discussions and negotiations related to this Letter of Intent and the Project, and that are not
otherwise generally known ( "Confidential Information "). Any disclosure of Confidential
Information of a party by the other party shall only be made after the party whose Confidential
Information is being disclosed has agreed to such disclosure in writing in advance. The parties
each acknowledge that if Developer submits a proposal to the City of Iowa City, and also if the
Developer's proposal is approved by the City, disclosure of certain Confidential Information and
the Purchase Agreement contemplated herein to specified third parties as a part of implementing
the Project will likely be necessary, In that event, the parties agree to cooperate in such
disclosures, which shall be agreed to in writing in advance. The parties frther agree this
provision shall survive in the event of termination of this Letter of Intent. Nothing in this
provision is intended to limit a party from disclosing the Confidential Information of the other,
on a need to know basis, to a party's representatives, consultants, lender(s), attorneys, contractors
or other agents, in connection with its due diligence and investigations relating to the continuing
discussions and negotiations contemplated by this Letter of Intent.
10. Non - Binding. This Letter of Intent does not constitute an agreement to negotiate, but solely
constitutes an outline of some of the terms for negotiation. The parties will in good faith
diligently pursue discussions and negotiations in an effort to come to and refine terms and
conditions for final documents for each party's review and approval, some of which may be
multi -party agreements. While this Letter of Intent is intended to provide the parties guidance in
pursuing negotiations and discussions, except for Paragraph 9 and the next paragraph of this
Paragraph 10, it is not binding, and the terms of any final agreement may be the same as, similar
to or different from the provisions of this Letter of Intent.
New Pioneer and Developer each acknowledges and agrees that each is proceed ng with its side
of negotiations at its sole cost and expense (which may involve substantial transaction costs) and
that either party may terminate negotiations for any reason, at any time, without any liability or
obligation to the other. Further, neither party shall have any legal rights or claims against the
0
other party by reason of any action taken, statements made, writings delivered or other matters
undertaken by a party in reliance upon this non - binding Letter of Intent including, without
limitation, any expenditure of funds, partial performance of transactions contemplated herein, or
any other actions of a party.
This letter of intent shall be of no fin-ther effect upon either i) the parties entering into final
agreements, or ii) the termination of discussions and negotiations between the parties pertaining
to the matters contained herein. The parties anticipate that their discussions and negotiations will
be completed or terminated before the expiration of twelve months after the execution of this
Letter of Intent.
Sherman Associates, Inc
By A- 7,
New Pioneer's Cooperative Society
Date--710 i
By A "N 2 C "*-'u/
Date /
r — /2—
title
A7 — Proposal Submittal Form
EXHIBIT "A"
Proposal submittal signature form
The undersigned attests to his /her authority to submit this proposal and to bind the firm
herein named to perform if the firm is selected by the City of Iowa City. The undersigned
further certifies that he /she has read the Request for Proposal, terms and conditions,
and any other documentation relating to this request; has complied in all respects with
all conditions hereof, and this proposal is submitted with full knowledge and
understanding of the requirements and time constraints noted herein.
The undersigned hereby further acknowledges that it accepts the terms of the Request
for Proposals in its entirety and by the submission of its proposal hereby waives any
claims or claims to irregularities that arise out of such RFP, the process employed by
the City to solicit and develop proposals, the RFP evaluation process described in the
RFP, and agrees to release and hold harmless the City, its employees, agents, and
consultants from any claim, loss, or damage arising therefrom.
The undersigned hereby authorizes any person, firm or corporation to furnish any credit
history and financial condition or other information required by the City to verify
information related to the Firm's submission to the City.
I hereby certify, on behalf of the undersigned firm, that the above information is true and
correct to the best of my knowledge and that the City may rely on the information
provided.
Firm name: Sherman
Home office address:
City, s
Signat
Date:
Inc.
21