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Home My WebLink About2014-10-30 Info Packet�t VIII 41 CITY COUNCIL INFORMATION PACKET CITY OF IOWA CITY October 30, 2014 www.icgov.org IP1 Council Tentative Meeting Schedule NOVEMBER 4 WORK SESSION MEETING IP2 Work Session Agenda IP3 Memo from City Clerk: KXIC Radio IP4 Pending Work Session Topics IP5 Memo from City Clerk: Special Meetings NOVEMBER 6 SPECIAL WORK SESSION MEETING IP6 Memo from Economic Development Administrator: development of the Court / Linn site A) CA Ventures Campus Acquisition B) Court -Linn Terrace Oliveira C) Court -Linn Lofts — Charles Graves D) HUB at Iowa City Core Campus E) Linn & Court, Sherman Associates F) Millennium, Tim Fredregill MISCELLANEOUS Confirmation of finalists for the IP7 Email from Asst. City Manager: Iowa Initiative for Sustainable Communities presentation IP8 Discrimination in Places of Public Accommodation IP9 Memo from Sustainability Coordinator: Mayors Climate Protection Agreement signature submitted IP10 Civil Service Entrance Examination — Electronics Technician IP11 Joint Meeting Minutes —October 27 (attachment Affordable Housing Update) IP12 Fact Sheet from Council Member Throgmorton: Economic Development— A Livability Fact Sheet IP13 Preliminary Economic Development Committee minutes —October 13 Letter from Development Services Coordinator: Open House on in Civic District and North Clinton /Dubuque District [Distributed electronically to Council on 10/301 Email from City Manager: Pilot Policy [Late handout distributed 11/3] October 30, 2014 Information Packet (continued) 2 Invitation: Remembering Our Fallen, November 1 -8, Iowa City Public Library [Late handout distributed 11/3] DRAFT MINUTES IP14 Citizens Police Review Board: October 13, 2014 .wr■•�.' -� CITY COUNCIL INFORMATION PACKET CITY OF IOWA CITY October 30, 2014 www.icgov.org IN Council Tentative Meeting Schedule NOVEMBER 4 WORK SESSION MEETING I132 Work Session Agenda IP3 Memo from City Clerk: XIC Radio IN Pending Work Session op IPS Memo from City Clerk: Spe ial Meetings E' NOVEMBER 6 OECIAL WORKSESSION MEETING IP6 Memo from Economic Develop ent Admini development of the Court / Linn 'te A) CA Ventures Campus Ac isition B) Court-Linn Terrace Oliveira C) Court-Linn Lofts — Charles avea' D) HUB at Iowa City Core Campos E) Linn & Court, Sherman Associi°es F) Millennium, Tim Fredregill MISaELLA r: Confirmation of finalists for the EOUS IP7 Email from Asst. City Manager: to a Initiative for Sustainable Communities presentation IP8 Discrimination in Places of P lic Accommodation IP9 Memo from Sustainability Co rdinator: Mayors Climate Protection Agreement signature submitted IP10 Civil Service Entrance amination — Electronics Technician IP11 Joint Meeting Minute — October 27 (attachment Afforda4le Housing Update) IP12 Fact Sheet from Cou cil Member Throgmorton: Economic Development — A Livability Fact z Sheet IP13 Preliminary Economic Development Committee minutes — Oct�!Qer 13 DRAFT MINUTES IP14 Citizens Police Review Board: October 13, 2014 �1 City Council Tentative Meeting Schedule IN ►f'-% Subject to change October 30, 2014 i "wUls._ CITY OF IOWA CITY Date Time Meeting Location Tuesday, November 4, 2014 5:30 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Thursday, November 6, 2014 5:00 PM Spec. Work Session (Court /Linn RFP) Emma J. Harvat Hall Monday, November 17, 2014 5:00 PM Spec. Work Session Emma J. Harvat Hall (Court /Linn RFP Presentations) Tuesday, November 18, 2014 5:00 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, December 2, 2014 5:00 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Thursday, December 11, 2014 7:30 AM Spec. Work Session w/ JC Supervisors Emma J. Harvat Hall Tuesday, December 16, 2014 5:00 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, January 6, 2015 5:00 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Saturday, January 10, 2015 8AM -5PM Special Budget Work Session Emma J. Harvat Hall (Department Presentations) Monday, January 12, 2015 1:00- 7:OOPM Special Budget Work Session Emma J. Harvat Hall (CIP Presentations) Tuesday, January 13, 2015 5:00 PM Special Budget Work Session Emma J. Harvat Hall Tuesday, January 20, 2015 5:00 PM Work Session Meeting Emma J. Harvat Hall 7:00 PM Formal Meeting Monday, January 26, 2015 4:30 PM Joint Meeting / Work Session TBA Tuesday, Feburary 3, 2015 5:00 PM City Conference Board Meeting Emma J. Harvat Hall Work Session Meeting 7:00 PM Formal Meeting t CITY OF IOWA CITY UNESCO CITY OF LITERATURE M1 � r CITY OF IOWA CITY 410 East Washington Street Iowa City. Iowa 52240 -1826 (319) 356 -5000 (3 19) 356 -5009 FAX www.icgov.org City Council Work Session Agenda November 4, 2014 Emma J. Harvat Hall - City Hall 410 E. Washington Street 5:30 PM (REVISED TIME) ■ Questions from Council re Agenda Items ■ Downtown Streetscape Update ■ Information Packet Discussion [October 23, 30] ■ Council Time ■ Meeting Schedule ■ Pending Work Session Topics [IP #4 Info Packet of 10/30] - Upcoming Community Events /Council Invitations ��y CITY OF IOWA CITY IP3 ..�.. � � MEMORANDUM Date: October 30, 2014 To: Mayor and City Council From: Marian K. Karr, City Clerk Re: KXIC Radio Show KXIC offers a City show at 8:00 AM every Wednesday morning. In the past Council has volunteered for dates, and staff filled in as necessary. Please take a look at your calendars and come prepared to help fill in the schedule at your work session on November 4: November 12 — Dobyns November 19 — November 26 — December 3 — December 10 - December 17 — Future commitments: January 14 — Dobyns March 4 — Dobyns April 22 — Dobyns June 10 — Dobyns U:radioshowasking.doc I b :. . CITY Of IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS October 30, 2014 November 18th, 2014 1. Discuss Equity Report and NLC Report from the August 281h Information Packet Pending Topics to be Scheduled 1. Discuss recycling opportunities for multi - family housing (UISG letter in 10/1/2013 packet)- To be considered subsequent to Fiberight related decisions 2. Discuss city related marijuana policies and potential legislative advocacy positions 3. Discuss community business attraction and anti - piracy compact 4. Review of the Sensitive Areas ordinance 5. Discussion on Gateway Project aesthetic elements 6. Update from the Iowa City Area Development Group (December 16, 2014) 7. Discuss formation of staff /citizen climate adaptation advisory group (spring 2015) I CITY OF IOWA CITY 1P5 -- MEMORANDUM CffY Date: October 30, 2014 To: Mayor and City Council From: Marian K. Karr, City Clerk Re: Special meetings Please note that two additional meetings have been added to your tentative schedule: • Monday, November 17, 5:00 PM — Court / Linn Presentations Thursday, December 11, 7:30 AM — Meeting with Johnson County Board of Supervisors E �r CITY OF IOWA CITY 1P6 MEMORANDUM %��A �Www`ftu ft Date: October 29, 2014 To: Tom Markus, City Manager From: Jeff Davidson, Economic Development Administrator Re: Confirmation of finalists for the redevelopment of the Court/Linn site At the November 6 Special City Council Work Session the Council will be asked to confirm the 3 development proposal finalists for the Court/Linn site. We received six proposals, and wish to thank all applicants for the time and effort they put forth in developing the proposals. We appreciate the interest in our community, and the Riverfront Crossings District specifically. The 3 finalists that are selected will be asked to make presentations to the City Council at a public meeting on Monday, November 17 at 5:00 pm. On September 11 a City subcommittee met to discuss the six proposals for redevelopment of the former St. Patrick Church School site at the intersection of Court and Linn Streets. The participants were: • Susan Mims, Mayor Pro Tern • Kingsley Botchway, City Councilor • Eleanor Dilkes, City Attorney • Tom Markus, City Manager • Dennis Bockenstedt, Director of Finance • Chris O'Brien, Director of Transportation Services • Doug Boothroy, Director of Neighborhood and Development Services • John Yapp, Development Services Coordinator • Tracy Hightshoe, Associate Planner • Karen Howard, Associate Planner • Jeff Davidson, Economic Development Administrator • Wendy Ford, Economic Development Coordinator • Tom Jackson, National Development Council All six proposals met the requirements for submittal and were determined to comply with applicable statutes. Proposals were scored and ranked by each committee member according to the following evaluation criteria: 1. Developer experience and capabilities 2. Market and economic viability of the project 3. Long term fiscal benefit to the City 4. How the project furthers Iowa City's economic development and Riverfront Crossings goals There was unanimous consensus that the following 3 proposal teams should be invited in for interviews: CA Ventures, HUB at Iowa City (Core Campus), and Sherman Associates. We have provided links to each of the proposals, and a summary chart is attached. October 29, 2014 Page 2 In terms of the City Council's deliberation, the subcommittee highlighted the following points for consideration in reaching their decision: 1. A project of this scale requires an experienced developer with a proven track record who can bring the required financial capacity to the project. 2. This may be an appropriate location for high density student housing in order to take pressure off of established older neighborhoods around downtown. 3. Even though the proposal which emphasized senior housing was not selected as a finalist, there is interest in senior housing in this vicinity. 4. It is acknowledged that there is a tradeoff between the amount of financial assistance the City is asked to provide for higher risk uses such as affordable housing, workforce housing, spec office space, and hotels and lower risk uses like student housing which may not require public subsidy. Ultimately this is a political question for the City Council. Bring any questions to the November 6 Work Session. Thanks. I U I tIRBY i `o Mn (q .0 C E "O Q O c U d C N _ o Q E 0 —O lai of U 0 0 0 U 3 E a o m N o c o d W U N LL C W V Of o o 0 C LL N 3 c0 >. 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N O t6 m 00 p j c- N M >>> p N D _ M N O 0 C > W E W O f- N � 0 J O OC U o N LL m N 30 N O 0 N C N V C N N LL NO O W C C C uj O 3 y y = /� 49 w> m N c o f c l o o) N J u a) U) O N U (n o d 0- 0 O 9 }M � O O N O)9 W U UU > I C .w-' p W G C m N C C N O N a) (D -< 0 r C4 0 2 > N9 U N C C ? 0 J U LL 'C CJ LL C 2) C (n O 2 . U If p (D 4) -° U� O O M N N S 0O C D O -p vi o� co � 0 o Cu -O U E N O. O C E O (0 to } N O m O m O �- N M y O F- N C m O O U o N •- y C U O O y O O U N Z O X N J fn C Uy 'E rn �w 0 } o Z M J N O U N N O jN N ((Q� N d m •c m U U n m m `o ¢ w o api o U L c rn? C C LL C (n O W O N @ w .0 X_ N m O f6 w O O p \/ N. W N` E Y a N E N m D t6 aL-+ N y U m y N 0 C5 U- OUI > N V 42 V C ,ON O0C O M NO 2(D O U C JU E I- O r C m m m W O. 2 +-' O d N M N O N .n p C O N 0 U 0) N C N C d V C N w E U 0 7 Vi E W@ N W C 0 O d Z O 3 Q 0 W U d N N fn iY U Cl) C G C J s U 0 e v E 0 a O O h y O kq ?� �- ;f»±0 �v5T< E2 § a - ■ &0 / \: {\ _- \ } ))(f } \§)7j} // /\)( m Mn : § -a CD f) f / ) f± §®)# e /cuff §\ /)) M a E/ ) }/ e - CO \ cc V 00 \/ z \ 0 a \ \§ \ E §\ } / \ _ - 'a E © ) ) 0 -o \k ds °KG « j8 § °3o ) }\ « \■ 0 CL §z k / kw 3 VENTURES Private Developer Proposal for the Court St. / Linn St. Redevelopment Site HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE JJ Smith, Chief Development Officer 312 994 1882 jjsmith@ca-ventures.com John Diedrich, VP of Investments 312 994 1884 jdiedrich@ca-ventures.com July 2014 1 ca- ventures.com PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT EXECUTIVE SUMMARY In response to the Court and Linn RFP, CA proposes a mixed -use development consisting of a hotel, residential apartments and retail. The project would consist of three towers: one tower devoted to 117 hotel suites and 3,500 square feet of retail and two towers devoted to 304 multi - family units. The luxurious upscale design has extensive modern amenity spaces, high -end finishes, emphasis on energy efficiency and three floors of underground parking connecting all three buildings. CA's full- service on -site staff will manage the residential apartments and CA has received multiple letters of interest from major hotel franchises to brand the hotel. A qualified third party hotel operator would be sourced, in collaboration with the selected hotel brand, to oversee the day -to -day operations. PROJECT SUMMARY Hotel Rooms: Units: Retail SF: Parking Spaces: Average SF Per Unit: PROJECT TEAM Developer: Manager: Architect: General Contractor: Lender: Hotel Franchise: Legal: FINANCIAL CAPABILITY: Since its inception in 2004, CA has developed or acquired over 9.5 million square feet of real estate totaling $2.0 billion in investment value with another $2.5 billion currently in the pipeline. As a result 117 of the company's success and growth, CA has fostered numerous financial 304 relationships and has raised over $700 million in debt and equity. 3,500 DEVELOPER EXPERIENCE & CAPABILITY: Since 2008, CA has developed 272 2,200 residential units and 256 hotel rooms. CA continually delivers projects that are on -time, on- budget and fully integrated in the market. The reason 754 for such a successful track record is due to the creative design, competitive construction costs and an experienced leasing team. Fifth Third um Polsinelli PROPOSED TIMELINE MARKET DEMAND: According to the Smith Travel Research (STR) report of upscale hotels within the greater Iowa City area, occupancy has risen 20% over the last three years and revenue per available room has increased 24 %. However, two of the five upscale hotels within STR's report are within Coralville, meaning Iowa City does not benefit from the 7% lodging tax. This project will revitalize the upscale hotel market as a more viable option to visitors through a premium location within the downtown area of Iowa City, having brand recognition and a new product premium. In addition, Iowa City will directly benefit from the lodging tax versus the lost revenue to Coralville. Entitlements Complete: FISCAL BENEFIT TO THE CITY: This project will have a significant beneficial The residential apartments will give the South Downtown Subdistrict the impact on Iowa City in the amount of revenue generated through property tax, Q1 / 2015 lodging tax and the number of employment opportunities. Upon completion, CA Ventures CA estimates Iowa City to receive $1,200,000 in property tax within the first CA Ventures year and another $330,000 in lodging tax. Based on CA's historic information, HPA the City will immediately benefit from approximately 250 jobs needed for Occupancy: construction and an additional 50 once the asset is stabilized. Beal Derkenne Fifth Third um Polsinelli PROPOSED TIMELINE MARKET DEMAND: According to the Smith Travel Research (STR) report of upscale hotels within the greater Iowa City area, occupancy has risen 20% over the last three years and revenue per available room has increased 24 %. However, two of the five upscale hotels within STR's report are within Coralville, meaning Iowa City does not benefit from the 7% lodging tax. This project will revitalize the upscale hotel market as a more viable option to visitors through a premium location within the downtown area of Iowa City, having brand recognition and a new product premium. In addition, Iowa City will directly benefit from the lodging tax versus the lost revenue to Coralville. Entitlements Complete: Q1 / 2015 The residential apartments will give the South Downtown Subdistrict the Land Closing: Q1 / 2015 necessary population increase to extend the downtown area south and fulfill the Permit Issuance: Q2 / 2015 ongoing efforts to improve the quality of residential options. Construction Start: Q2 / 2015 An alternative to the original design would consist of a "flex" office space, Occupancy: Q2 / 2016 totaling 21,000 square feet, in which a bridge would connect a portion of Levels 1 and 2, allowing pedestrians an extra ease of access between the two residential buildings. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT TABLE OF CONTENTS 01 Proposal Submittal Form .................................................... ..............................3 02 Letter of Interest ............................................................... ..............................4 03 Primary Contact ................................................................ ..............................4 04 Legal Name & Company Information .................................. ..............................6 05 Legal Entity With Whom the City Would Contract ................ ..............................7 06 Organizational Chart .......................................................... ..............................7 07 Developer Capability .......................................................... ..............................8 08 Financial Capability ............................................................ .............................12 09 Construction & Financing Plan ........................................ ............................... 14 10 Public Financing Participation & Pro Forma ....................... .............................19 11 Project Details & Design ................................................... .............................20 12 Sustainability & Master Plan Objectives ............................ .............................28 13 Listing of Lawsuits or Litigation Within the Past Five Years .............................29 14 Appendix (Team Member Profiles, Contact Info & References) ......................31 EXHIBIT "A" Proposal submittal signature form T ?,e und„ i__,Sned aNests to Ns/n a authority to subn irthis proposal and to bind the � rr, he nartect to perform 4 the Arm is _ seieueV by the C y of Iowa City. I he undersigned ru -blei cer-kn es WV he/she has read the P equesi for Proposal, ienms and cones .Ions, and any other documenkLion etas ng to this squesf has co mphed in all respects wth all _rjndRions hemot; and this proposal Is submitted Vditn r ll ,-iok,fieJga 3n,d a de )an01r6 of the requirements ano time const,atnts noted herein, The u uengned hemby fwMei a:4;nov _i.�,cs Mai it accepts the term of the Reruestfor P- vposals in its ent're- ty and by the suandsman of its proposal havoy waives any claims or clr rns to it.F�i la has rtat arise out of s sch RF ; Lhe process e tipoyed by he CRV to s.,Hni and devehp proposals. a The RFa e valual m p ccess described in the RFR and agree_ to rep se and hold harmless the City, its empldVeeS, ag:ect;, and co2iciulhanus Tom any Way loss, ca r damage anang Therefrom The undersigned hereby aut-Wes any person, On or corpo boy :o furnish any ecit history and Nancial con- dition o _thee info ;ration rc, dr Sri by the City try verify ( 43i latior, uslkatCcl to the nnn's submission to the City. I hereby ne tUy on oerin of the undersigned ?A a that the above niori soon is lu and coned A the n.st of ivy knowledge and Ina tae City may rely on the it mason ondided. Firm name- CAS e'enturc=_ Home office address: 151 id Clarla St. Suite- 4960 Ciy, sae; r:ip: Chicagp; IL s656i. Name ar blame, c igna k r Date. V, 4 VENTURES City of Iowa City, Iowa 410 East Washington Street Iowa City, Iowa 52240 July t5, 2014 To whom it may concern, Thank you for the opportunity to present our response to the Request for Proposals (Rt`P) for the redevelopment of the Court & Linn property in Iowa City, Iowa. We are excited about the prospect of working with the City to develop a Class A hospitality, residential and retail mixed -use project in the South Downtown Subdistrict of Riverfront Crossings. This project will have a positive impact to the South Downtown Subdistrict by satisfying the rising hotel demand, providing high- quality, urban style apartments and significantly increasing the taxable value of the property. CA has a passion for creating ideal mixed -use properties and believes that the assembled team is the best choice to successfully redevelop the site. We believe that the combination of residential apartments, hospitality and retail is the highest and best use for this development opportunity. As mentioned above, our proposed plan would bring visitors and residents to the South Downtown Subdistrict thereby helping create the desired pulse of activity needed to extend the downtown area. The added downtown population, tourism, amenities and retail will help the area achieve the objectives listed in the South Downtown Subdistrict Summary. CA Ventures consists of experienced and creative commercial design, development and operations professionals that have been successful in providing new, high - quality housing and hospitality communities on a national scale. If selected, CA brings "Best In Class" design and operational experience from lessons learned on developments in more than 20 key U.S. markets. CA understands that, in each case, tourism and in -city residents are the core constituency and driving force behind a successful community and city. Enclosed is our full response to the RFP We paid careful attention to addressing each parameter outlined in the RFP. We encourage you to ask us questions in order to fully understand our capabilities to work closely with the City to plan, design, construct and open a successful, high - quality project in the South Downtown Subdistrict of River Crossings, We look forward to meeting you and to begin an ongoing dialogue to address all of your concerns while sharing our mutual ideas. Respectfully, dqFr1Medrich (Primary Contact) Vice President of Investmants 161 N Clark St Suite 4900, Chicago IL 60601 jcjiedrich@ca-ventures.com 312 -994 -1884 PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT LEGAL NAME & COMPANY INFORMATION 1. The proposal submittal signature form (copy attached as Exhibit "A "). Signed Proposal on page 4. 2. A signed letter on the proposer's letterhead indicating an interest in the Project. Signed Letter of Interest on page 5. 3. Primary contact person and contact information. Primary Contact on page 5. 4. The 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. Development Entity: CA Residential Holdings, LLC 161 N Clark St. Suite 4900 Chicago IL 60601 Parent Company: CA Ventures Officers / Principals:' Tom Scott John Dempsey John Diedrich John Druffel Company Information: Founder: Year Founded: Headquarters: # of Employees: Investment Value: $ Raised: # of Investments: SF of Development / Acquisitions: Brian Morrissey A Smith Dan Hrankowsky Michael Yeagle Tom Scott 2004 Chicago, IL 80+ $2.0+ billion $700 million in debt & equity 70+ properties 9.5 million SF "Executive bios and contact information can be found in the appendix. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT LEGAL ENTITY & ORGANIZATIONAL CHART 5. 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: CA Residential Holdings, LLC 161 N Clark St. Suite 4900 Chicago IL 60601 Authorized Parties: Tom Scott (Chief Executive Officer) & J.J. Smith (Chief Development Officer) 6. 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. Lma CA Ventures Investor, Oevelopet & Manager ITom Scott Chief Exewtive 0 /liter 0 0 0 Brian Morrissey A Smith John Dempsey Chief. m! ... alodicer Chist Develo men. oBicsr Chief operet: othcer John Diedrich Dan Hrankowsky John Druffel Vice P'evde"t t Director of N"gn Lxe,,b.VSe Presftlent lr'.t -. n" I I Project Manager F.YECII[N6 VIf2 Beal Derkenne HPA Genets' Ca,t.ro, Architect of Recom Note: Contact information can be found in the reference section of the Appendix. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT DEVELOPMENT CAPABILITY 7. A 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. ,PP :r: IN Ed. CA Ventures, formerly known as Campus Acquisitions, has successfully developed more than 2,200 multi - family units and 256 hotel keys across the country since 2008. CA continues to deliver projects that are on time, on budget and fully leased. A direct reflection of our successful track record is due to the design of our buildings, competitive construction costs and an experienced leasing team. CA's strength in construction materializes from competitive construction costs to provide high - quality goods at a low cost. CA's typical building materials include recycled metal, concrete, self - healing concrete and other regionally sourced materials, where available. Also, CA purchases manufactured goods from local vendors to minimize transportation costs and impacts. CA's design team builds communities that specifically cater to the needs of the market. Every CA community has had specifically designed floor plans, amenities and interiors inspired by the local environment, city district goals and desires of the residents. This careful consideration makes each project purposeful and highly sought after. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT RECENT PROJECTS - DEVELOPED & MANAGED MIXED -USE AT UNIVERSITY OF MICHIGAN LANDMARK I ANN ARBOR, MI Project Statistics: Land Size: 34,583 SF Residential: 197,422 SF Total SF: 301,394 SF Units: 173 Parking Spaces: 135 Site Condition: New Construction Construction Type: High Rise Rental Range (Per Unit): $1,699 to $6,000 Occupancy At Opening: 100% Contact:* Bill Suekens Cost Statistics Construction Proiect Total Total $42,757,828 $72,157,994 Per Unit $247,155 $417,098 Per SF $141.87 $239.41 Amenities Spa -life Fitness Center Modern Cardio Equipment Landscaped Elevated Courtyard Members Only Club Room Business Center BBQ Station Retail Tenants: 7- Eleven Tim Horton's No Thai World of Beer Wellness Center Yoga Hot Tub Cyber Cafe Wi -Fi Lounges Fire Pit Partner Information: Architect: Hartshorne Plunkard Architecture Developer: CA Ventures Manager: CA Ventures Equity: Harrison Street Real Estate Lender: RBS Project Schedule Entitlements Complete: 09/2010 Land Closing: 0112011 Permit Issuance: 02/2011 Construction Start: 02/2011 Occupancy: 08/2012 *Contact Information Provided in Reference Section of Appendix. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT RECENT PROJECTS - DEVELOPED & MANAGED HYATT PLACE I CHAMPAIGN - URBANA, IL HOTEL & RESTAURANT MIXED -USE Project Statistics: Land Size: 26,000 SF Hospitality: 75,085 SF Restaurant: 8,557 SF Total SF: 83,642 SF Suites: 145 Parking Spaces: 146 Site Condition: New Construction Construction Type: Midrise Avg Daily Room Rate: $145 Contact:* Craig Przygoda Cost Statistics: Partner Information: Architect: DLR Group Developer: CA Ventures Hotel Operator: Hyatt Equity: Associated Lender: CA Family & Friends Project Schedule: Construction Proiect Total Total $25,547,723 $34,645,336 Per Key $176,191 $2,389,933 Per SF $305.44 $414.21 Amenities: Fitness Center Conference Space Indoor Swimming Pool Hotelwide Wi -Fi Cocktail Bar Bakery Cafe Partner Information: Architect: DLR Group Developer: CA Ventures Hotel Operator: Hyatt Equity: Associated Lender: CA Family & Friends Project Schedule: Entitlements Complete: 04/2013 Land Closing: 08/2013 Permit Issuance: 09/2013 Construction Start: 09/2013 Occupancy: 05/2014 *Contact Information Provided in Reference Section of Appendix PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT RECENT PROJECTS - DEVELOPED & MANAGED MIXED -USE AT TEXAS A &M RISE AT NORTHGATE I COLLEGE STATION, TX I WWW.RISEATNORTHGATE.COM Project Statistics Land Size: 42,962 SF Residential SF: 173,684 SF Total SF: 390,114 SF Units: 173 Parking Spaces: 355 Site Condition: New Construction Construction Type: High Rise Rental Range (per unit): $1,129 to $5,025 Occupancy At Opening: 96% Contact:* Katie Janik Cost Statistics Retail Tenants: CVS Great Wraps Partner Information: Architect: Hill & Frank, Inc Developer: CA Ventures Manager: CA Ventures Equity: Diamond Realty Investment Lender: Private Bank Project Schedule Entitlements Complete Construction Proiect Total Total $34,067,991 $44,169,375 Per Unit $195,793 $253,847 Per Bed $71,873 $93,184 Per SF $87.33 $113.22 Amenities: State -of- the -Art Fitness Center Fire Pit Study Rooms Library Recreation Room Yoga Studio Rooftop Pool Hot Tub Laundry Service Grilling Area Swim -Up Movie Projector Retail Tenants: CVS Great Wraps Partner Information: Architect: Hill & Frank, Inc Developer: CA Ventures Manager: CA Ventures Equity: Diamond Realty Investment Lender: Private Bank Project Schedule Entitlements Complete 0212012 Land Closing 05/2012 Permit Issuance 05/2012 Construction Start 05/2012 Occupancy 08/2013 *Contact Information Provided in Reference Section of Appendix PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT FINANCIAL CAPABILITY 8. 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 investors. A discussion of the financing sources and partnerships utilized for prior projects and references from these parties are also welcomed and encouraged. CA Ventures has operated and developed in over 20 markets nationwide, having raised more than $700 Million in debt and equity in multiple real estate sectors. CA's financial investment has topped $2.0 Billion to -date resulting in the continued ability to work with best -in -class investment and financing firms to provide efficient equity and debt. Since our start in 2004, CA has developed and maintained a number of successful relationships with financial sources. Below is a sample of our top capi' sources and completed business through 2014. Facility Contributors 1. RBS Citizens: $141,201,000 2. Private Bank: $124,052,000 3. Fifth Third Bank: $ 91,725,000 Capital Contributors 1. Harrison Street Real Estate: $88,277,000 2. Diamond Realty Investment: $50,006,000 3. Prudential: $30,150,000 ►q 1 ilk PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT FINANCIAL LETTER OF INTEREST FIFTH THIRD Rill sneakers Senior Vice President Commercial Real Estate Fifth Third Bank 222 S. Riverside Plaza, 33rd Floor Mail Drop GRVR38 Chicago, it 60606 TO, 3a 2.704.4104 .flfia...X.nSC@53com July 14.2014 Thomas M. Scott Chief Executive Officer CA Ventures, LLC 161 N Clark Street Suite 4900 Chicago, IL 60601 Re: Letter of Reference for the Private Developer Proposal for Court Street and Linn Street Redevelopment Site Dear Tom We understand that CA Ventures and CA Residential Holdings, LLC is in the process of submitting an RFP response to The City of Iowa City in connection with the above noted redevelopment project in Iowa City, Iowa. We understand that this letter has been requested to provide a reference for CA Ventures' proposed participation in construction of the project and financial capacity to undertake a project of this scale. CA Ventures has advised us that they will require construction debt financing for their participation in project. The project at the intersection of Court St and Linn St in Iowa City is anticipated to contain approximately 117 hotel rooms, 304 apartments, 3,500 SF of retail space and 272 parking spaces. The estimated total project costs for the development are $87,700,000. CA Ventures has requested a 65% lean-to -cost construction loan, totaling $57,010,000. We are pleased to confirm that CA Ventures has been a client of Fifth Third Bank on numerous real estate development In of similar scope and size and the bank and relationship manager has a continued active lending relationship with CA Ventures that dates back to 2007. Based un the understanding of the proposed project, the experience of the CA Ventures team members, and the CA Ventures track record we believe that CA Ventures is financially capable of undertaking the above noted project. Although we do look forward to learning more about this opportunity, this letter does not constitute a commitment by the Rank and does not create any obligation on part of the Bank We look forward to discussing this opportunity further with CA Ventures Sincerely, William C. Suenkens Relationship Manager, SVP Fifth Third Bank PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT CONSTRUCTION & FINANCING PLAN 9. A narrative describing the proposer's plan for construction and financing of the Project. This should include: A. Organization and management approach to the Project: As shown on the organization chart on page 6, CA Ventures will oversee the development, finance and management of the project. This project has received interest from Fifth Third Bank, who has provided nearly $92 million in financing on past CA projects. Beal Derkenne Construction, the proposed general contractor, is currently overseeing the con- struction of 532 CA units in three different markets nationwide and has worked on seven different projects in Iowa since 2010. HPA has worked with CA on three different projects totaling 305 units residential units. As a result of the assembled teams' previous experience, CA is more than confident that this project would deliver on time at the highest of quality. B. General schedule for completion of the Project following property acquisition: • Entitlements Complete: Q1 / 2015 • Land Closing: Q1 / 2015 • Permit Issuance: Q2 / 2015 • Construction Start: Q2 / 2015 • Occupancy: Q2 / 2016 C. Description of a general plan for construction loan and permanent financing, copies of any letters of intent from prospective purchasers and/or tenants: CA has already received multiple letters of interest from hotel franchises as well as financial institutions with regard to this project. CA will also reach out to alternate financial institutions to ensure the success of funding the project. D. Description of the marketing approach to secure purchasers or tenants: As mentioned above, CA Ventures has received three letters of interest from Hyatt, Hilton and Aloft to franchise the hotel. These recognized franchises will help Iowa City revitalize the upscale hotel market, making this project a more viable option for visitors than the hotels located in Coralville. CA Ventures' fully integrated management team collaboratively delivers a management system that targets resident satisfaction, operating efficiencies and the property's long -term physical well- being. CA managed buildings serve as an extension of the community. Between our on -site staff, corporate management and accounting departments, CA Ventures' assets are supported by individuals dedicated to making each building a success. CA engages an established broker that has local, regional and national relationships with retailers. CA identifies and targets a mix of retailers that we believe will be an amenity for our residents and the surrounding community. While rent and credit are important factors, the right retail mix and fit with the community is critical and something equally as important as rent and credit. Through a developed marketing campaign and thoughtful design, CA is confident in achieving a retail tenant that compliments both the project and the City. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT HOTEL'S LETTERS OF INTEREST n HILTON WORLDWIDE July 8, 2014 Beth Hollenbeck Hospitality Development Coordinator CA Ventures, LLC 161 N Clark St., Suite 4900 Chicago, IL 60601 Susan Mmil n Hilton Nadi Sc Drectoq IleMelopment 755 C ossove, late NatMMest R,,on Memphis, IN 38117 USA (Iowa, Kansas, Mlssom, PH: 981 -374 -5958 MlnnaMa, Neb.ska, FX: W1- 374£388 Nat & South Dakop) suszn.batliman@bllton.com VIA E -MAIL RE: Hilton Garden Inn Franchise Availability in Iowa City, IA Dear Beth: It was good talking to you last week; I am thrilled to hear you are working on the possibility developing a Hilton Garden Inn Iowa City, IA. I believe a Hilton Garden Inn would be a good ft in the market. As of this date, please be advised that the Iowa City Downtown market is available for a Hilton Garden Inn. As you know, it is the policy and practice of the company to enter into license agreements for specific locations only after formal application for the franchise has been received, processed and duly considered by our Development Committee. Once you are in a position to file the formal application, we will be happy to process those documents and should be able to give you a decision within approximately 120 days. If you have any questions concerning any aspect of our franchising procedure, please feel free to call me at 901 - 374 -5958. Thankyou for your continued interest in Hilton Worldwide. Sincerely, cASIRA— Susan Bachman Sr. Director - Development Northwest Region PVC ,� , � GON RAD Hilton ®i UCUmn' i "Ofi swim® ... xlno� ssrom� �s, l%S.9LEIl16F. . -..... +j•. -. -.. ..... _.. .. c.ewvrenaes PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT HOTEL'S LETTER OF INTEREST H �T VIA EMAIL July 6, 2014 Beth Hollenbeck CA Ventures, LLC 161 N Clark St.. Suite 4900 Chicago, IL 60601 Email: bhollenbeck(oca- ventures.com RE: proposed Hyatt Place —Iowa City, IA Dear Beth, Mark Younadam Director of Development 71 S. Wacker Drive Chicago, IL 60606 Tel: 312 - 780 -6093 Thank you for your interest in proposing a new build Hyatt Place hotel located at Court Street and Linn Street in Iowa City, Iowa. Given the project's mixed -use component, including residential along with its location proximate to University of Iowa, University of Iowa Hospitals and Clinics and area business, we would be excited to see you develop a right sized Hyatt Place in this lodging market. We at Hyatt Hotels Corporation would also look forward to working with you on your third Hyatt branded hotel. As you know, Hyatt Place is a unique product that appeals to a variety of hotel guests needs. Our larger rooms, contemporary design and 24 -hour food service appeal to a variety of travelers, from those on more traditional leisure or corporate trips, to those who may be visiting area for social meeting functions. Although I strongly support this project, formal approval would be subject to your submittal of a complete franchise application and our subsequent internal review and approval process. I look forward to exploring this exciting opportunity further with you. Best Regards, Mark Younadam PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT HOTEL'S LETTER OF INTEREST 61IDft A VISION OF W HOTELS VIA EMAIL July 7, 2014 Beth Hollenbeck CA Ventures, LLC 161 N Clark St., Suite 4900 Chicago, IL 60601 Re: Aloft, Iowa City, IA Dear Beth: starwood tiolE�sar� Resorts Jamey Cua SENIOR DI RECTOR, DEVELOPMENT T6148953118 F6148951462 C 614 499 5051 E jamey cualssarmo4 hotels corn 5240 Spikerush court Westerville, OH 43082 unnea sates Thank you for your interest regarding the Aloft brand in Iowa City, IA (the "Hotel'), and your interest in the possibility of having Starwood franchise the Hotel as an Aloft Hotel. Based on our understanding of the market and your descripti on of the Hotel project, we are pleased to express our interest in further evaluating this opportunity. Please note that this letter is only an expression of our interest to further evaluate this opportunity and does not create any legally binding obligation on Starwood. You should not rely on this letter, or any further discussions regarding this potential transaction as an agreement, offer or commitment by Starwood to enter into any transaction with respect to the Hotel. We look forward to continuing our discussions with you. Sincerely, Jamey Cua Senior Director, Development Starwood Hotels & Resorts Worldwide cc: Allison Reid MERIDIEN �hFt Inl lif Lllti COI LN I'INN W[SFIN FOVRXG�NT$ C' I.6rn,I Is W PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PURCHASE PRICE & BENEFIT FOR THE CITY E. Proposed purchase price and the explanation of the purchase price for the Project property. CA is willing to offer $5,000,000 ($83.33 per square foot) for the Court and Linn Street redevelopment. This resem- bles 5.7% of the total project cost. While this may not be the highest purchase price offered, CA will be funding the project without any financial assistance from the City, meaning Iowa City will receive the full tax increment and lodging tax associated with the project. CA tax projections for the year one are displayed below: i ILExisting Tax Value $0.00 Lrojected Tax Value $1,592,341 Tax Increment $1,592,341 Combined Property Tax Portion Allocated to City $0.00 $663,108 $663,108 Portion Allocated to Schools $0.00 $543,948 $543,948 Sales Tax $0.00 $8,192 $8,192 Lodging Tax $0.00 $573,955 $573,955 Portion Allocated to City $0.00 $334,807 $334,807 Total: $0.00 $2,111,488 $2,111,488 Portion Allocated to City & School $0.00 $1,541,864 $1,541,864 In addition to the tax generated, the construction is expected to directly generate 250 jobs based on CA's previous job sites and the projected timeline. As a result of the completed redevelopment, the stabilized facilities onsite would gen- erate approximately 50 permanent jobs ranging from hotel staff to residential building engineers. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PUBLIC FINANCING PARTICIPATION & PRO FORMA 10. Public financial participation is contemplated / requested, a narrative and information requested: As previously mentioned, CA will not be seeking any financial assistance from the city. The below exhibit presents a preliminary project building cost, preliminary pro forma and sources and uses of funds. CA can provide additional items upon request. rtal Departmental Expenses 970,983 1,007,874 1,046,183 1,085,963 1,127,273 1perating Expenses Management Fee (4.0 %) Year 1 2016 -17 Year 2 2017 -18 Year 3 2018 -19 Year 4 2019 -20 Year 5 2020 -21 perating Revenue 1,529,341 1,575,221 1,622,478 1,671,152 1,721,286 Residential Rental Revenue 6,606,452 6,804,646 7,008,785 7,219,048 7,435,620 Hotel Revenue 5,284,159 5,442,684 5,605,964 5,774,143 5,947,367 Retail Revenue ($25/SF) 90,819 93,544 96,350 99,241 102,218 rtal Operating Revenue 11,981,430 12,340,873 12,711,099 13,092,432 13,485,205 rtal Departmental Expenses 970,983 1,007,874 1,046,183 1,085,963 1,127,273 1perating Expenses Management Fee (4.0 %) 479,257 493,635 508,444 523,697 539,408 Property Taxes 1,529,341 1,575,221 1,622,478 1,671,152 1,721,286 Capital Reserve 287,366 287,366 287,366 287,366 287,366 Other Operating Expenses 2,318,194 2,387,740 2,510,115 2,637,683 2,716,813 otal Operating Expenses 4,614,158 4,743,962 4,928,403 5,119,898 5,264,874 )p Expense as % of Total Revenue 46.61% 46.61% 47.00% 47.40% 47.40% Income Sources & Uses % Residential SF Common Equity 35.0% 30,694,513 Preferred Equity 0.0% - Senior Debt 65.0% 57,010,000 Total Sources 100.0% 87,704,513 Land Costs 5.7% 5,000,000 Hard Costs 75.3% 66,060,403 Soft Costs 19.0% 16,644,110 Total Uses 100.0% 87,704,513 SF Summary: Residential SF 229,332 Commercial SF 3,500 Common Area SF 75,878 Hotel SF 42,300 Parking SF 126,925 Total SF 477,935 PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN 11. A visual description of the proposed Project. The Iowa City Downtown & Riverfront Crossings Master Plan offers the best local example of modern urban develop- ment guidelines. All aspects of the suggested pedestrian- oriented elements, park -like open / green space, streetscape- and careful management of public and private spaces apply directly to the proposed RFP site at Court and Linn. Immediately adjacent to the subject property, Linn Street Place is a modern, quality mixed -use development that pro- vides necessary community uses. The buildings activate the streetscape with retail and landscape elements; however, by occupying full blocks, they inherently limit the physical connection between downtown and the Court/Linn site. The proposed design consists of a mixed -use program, which includes three independent high -rise structures above a concealed 3 -story podium parking structure. Hotel, retail, residential and (flex) office space are included among these uses. Our redevelopment proposal aims to respond to all immediate and intermediate contextual conditions in conjunc- tion with meeting Iowa City's following goals for the project. Aerial Perspective PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Site Plan ::11 _RETAIL EXTERIOR fAFE t- •LANO'SCAPEdAAEA I 2 F7AGRADE b4 PAAKAMENITY j 3 F y AUTO C�UAi GARAGE ENTRY HOTEL F > BELOW 6,770 SEIROOR b Q I I i RESIDENTIAL ENTRY T j' _ + - -- w�. z RESIDENTIAL a ` RESIDENTIAL + L 8,800 SFIFLOOA i' 11 +1.12,200 SFIFLOOA 1 �r POOL I AMENITY DECK �! 1507 -8 P L. — — E. COURT ST NJ " 0 WAAYTRAIIIC E. HARRISON ST. TEND WAY TRAFFIC GARAGE ENTRY BELOW PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Typical Floor Plan with Unit Sizes 1 ROOM 141 ROOM 01 OBE OOEEN II -1 KING 1 N AB MO o2 KING X ELEC 1 ROOM 03 KING X ICE ROOM 04 KING ROOM 13 1 1 AOOM 05 OBE GREEN I 1 KING ROOM 1211 11 ROOM Ofi OBE GREEN I KING 1 11 ROOM 07 AOOM111 KING DBLOOEENI h - -- 08 - - A KIN - -� 11 KING ROOM 101 OBE GREEN I 11 ROOM 09 o 1 IDUE GREEN n, UNIT 01 2BED 8505E UNIT 10 1 UNIT 02 2 -BED 1 1 1 -BED 8505E 11 1 5505E I � UNIT 09 11 1 UNIT 03 1 BED 1 1 2BED 5505E 11 8505E ONIT 08 1 r- 1 BED 1 5505E 11 ONIT 04 � 2BED UNIT 07 1 11 8505E 1 BED 1 5505E 11 1 ONIT 05 UNIT 06 1 11 2BED 1 BED `I' 9555E 670 BE I 150.57' P.L. F Z ' ? o N 3 11 11111 . fLf`• UNIT 01 UNIT 14 1" '1 2 -BED 2 -BED 1 1 9355E 2 -BED I ON IT 02 11 900 BE 8505F 1 2BED 11 X m UNIT 13 ' n 1 BED I 5505E 1 11 11111 . fLf`• ONIT 11 1 2 -BED I ON IT 02 11 8505F 1 2BED 8505E UNIT 11 11 11 UNIT 03 2 -BED 1 -BED 8505E 1 1 5505E - - - ONli 04 BED UNIT 11 1 550 SF 2 -BED 850 SF 1 1 UNIT 05 - - _I 1 2 -BED UNIT 12 1 1 850 SE 1 BED 1 5505E 1 FX UNIT07 1 1 2 -BED 11 ONIT 06 955 5E 1 2BED a l925 BE Im � PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Typical Parking Level Plan E. COURT ST NJ 0 WAAVTRAIIIO �150.57 'P.L � BNE%CAVATEB m d FrDTEE TYPICAL GARAGE FLOOR o- 1100 PARKING SPACES [' I �EA Ls. CORE TE I I I I I I 15078'P.L. 3 N I,3 60 GARAGE ENTRY �B 03 GARAGE ENTRY IBELBVVI E. COURT ST NJOWAVTRAIIIO E. HARRISON ST. MO WAVTRAIIIL PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Plan Perspective Illustrating Open Space Encourage an urban, walkable neighborhood: +The adjacent buildings to the north crowd the north end of the Court/Linn site. In response, our proposed hotel structure extends to reach the north setback and define the streetscape, while the remainder of the site density recesses to invite pedestrian activity and the creation of park -like open /green space. + A small retail zone is planned at the front of the hotel building, enhancing this pedestrian open space and drawing the public realm into the site. + The public realm dissolves as it extends south, transitioning to a semi - public landscape plaza that extends the notion of streetscape into the neighborhood, despite the adjacent S Linn Street grade level dropping in elevation. + Although proposed as a fully developed site, the central landscape plaza provides pedestrian access across its full length and width. + The contrast of streetscape vs. central park space allows for a duality in the fapade design of the buildings. The urban street grid will be maintained at the exterior side, while elevations facing the courtyard will soften in comparison with subtle fapade relief and material /color changes. Visually, the treatment at the courtyard side will flow toward and wrap the Court Street fapade, accentuating the site design concepts and establishing pedestrian scale within the streetscape. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Consider a variety of uses for the Project: + The mixed -use nature of the program enhances the urban characteristics of the site and proposed design. +The site is in an optimal location for hotel and residential development, given the edge condition to the downtown and Riverfront Crossings neighborhood, and proximity to the University of Iowa campus. + Portions of Levels 1 & 2 of the East and West residential buildings are proposed as alternate "flex" office spaces, proposed to be connected by a transparent pedestrian bridge. Beneath this connector, a transparent security screen separates the semi - public landscape court from the private residential amenity deck to the south. Programmatic Section Diagram 15 12 RESIDE NTIALTONER BEYOND RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL HOTEL BEYOND RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL m RESIDENTIAL 12 RESIDENTIAL RESIDENTIAL HOTEL AM ENl1Y RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL RESIDENTIAL HOTEL LOBBY R[34ILi HOTELI➢B -- RmPARKING 30100 EST, . 72 SPACES B 0 PARKING 45,370 EST,, 100 SPACES RDS PARKINS 43 , 355 DOE ,.L 100 SPACES 5 PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Aerial Perspective Looking Northwest Aerial Perspective Looking Southwest PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PROJECT DETAILS & DESIGN Street Level Perspective Looking South From Court Street Aerial Perspective at South End of residential Amenity Deck PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT SUSTAINABILITY 12. A description of the energy efficiency of the building, including anticipated efficiency above the base standard, and a description of sustainability features proposed to be included. CA has also taken careful consideration into constructing an environmentally friendly project. The project will utilize cer- tain LEED practices featuring Energy Star appliances and energy saving fixtures. The use of both sustainable and locally produced material reduces the carbon footprint associated with the project while boosting the City's economy. Lastly, the residential parking ratio meets the zoning requirements (0.5 space per 1 bedroom unit and 1 space per 2 bedroom unit) with an additional 25 spaces designated for the hotel and retail. This low parking ratio count encourages pedestrian mobil- ity and public corporation. MASTER PLAN OBJECTIVES CA has planned the project with careful consideration to both the Riverfront Crossings District and the South Downtown Subdistrict's master plan objectives. The construction of CA's project fulfills these objectives of the District: to improve the quality of residential options and serve as an extension of the downtown area. The combination of hospitality, residential and retail use presents a diverse mix as proposed by the South Downtown Subdistrict master plan objectives. The retail space, located at a key corner within the district, will serve as an additional amenity for residential tenants with the poten- tial to provide everyday necessities without the inconvenience of using a vehicle. EXHIBIT "B" LISTING OF LAWSUITS OR LITIGATION WITHIN Lawsuit or Litigation: CA Ventures' principals, development entities or members of the development team have never been charged with or convicted of a felony nor have any of these members been involved in a litigation within the last five years. Status or Outcome: N/A Comments: None. APPENDIX PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT CA VENTURES INFRASTRUCTURE CA's robust infrastructure marries centralized systems and management expertise with localized operational expertise. CA has a dedicated and skilled management team with significant experience in financing, acquiring, developing and manag- ing real estate properties. The management team combines comprehensive real estate knowledge with local experience anc a proven track record. CA is committed to providing high - quality projects that exceed expectations of residents, community and other project stakeholders. The ability to target the right opportunities and maximize stakeholder investment through a comprehensive property management and leasing plan distinguishes CA from other owners, operators and developers. CA INVESTMENT MANAGEMENT • Investment management • Asset management • Acquisitions and developments sourcing • Debt and equity structuring CA Ventures CA DEVELOPMENT MANAGEMENT • Entitlement process management +A/E qualification and selection • Design development and permitting +Construction management • Interior design and finish selections • Project scheduling and budgeting CA PROPERTY MANAGEMENT +Operations management • Marketing and leasing • Accounting services • Human resources and staff training +Tenant management 2004 CA Ventures Growth Present PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT TEAM BIOS Thomas Scoff I CA Ventures I Chief Executive Officer 1 312 994 0874 1 tscott@ca- ventures.com Thomas Scoff, founder and Chief Executive Officer of CA Ventures. A business strategist at heart, Mr. Scott applies his uncanny ability to spot accretive opportunities and to translate them into results for investors. Mr. Scott is recognized for his astute financial acumen, market insight, and extensive understanding of real estate investment, development and management. Brian Morrissey I CA Ventures I Chief Financial Officer 1 312 994 0872 1 bmorrissey@ca- ventures.com Brian Morrissey, Chief Financial Officer for CA Ventures, oversees CA's financial operations focusing on all analysis, reporting, and operating reporting. He also works with CA's property and development teams to maximize each projects' operating and financial returns to the investor community. John Dempsey I CA Ventures I Chief Operating Officer 1 312 239 1899 1 jdempsey@ca- ventures.com John Dempsey, Chief Operating Officer of CA Ventures and Principal of CA Office, is responsible for overseeing CA Ventures' daily operations and resource management, driving performance measurements, and ensuring maximum investor return through select development endeavors and /or strategically repositioning non - traditional and /or under - utilized assets. J.J. Smith I CA Ventures I Chief Development Officer 1 312 994 1882 1 jjsmith@ca- ventures.com J.J. Smith, Principal of CA Ventures, oversees all development and acquisition activities. He creates and maintains project budgets and schedules; performs site acquisition land assemblage; performs deal creation, entitlement, financial feasibility, due diligence, building design, construction contract procurement, lease negotiations, and program implementation. John Diedrich I CA Ventures I Vice President of Investments 1 312 994 1884 1 jdiedrich @ca- ventures.com John Diedrich, Vice President of Investments of CA Ventures, is in charge of investment oversight as well as the analyst and research groups. He is responsible for the oversight of CA's acquisition and development analytic process related to new deals as well as valuations and mark -to- market of CA's existing portfolio and providing our investors with regular updates on their investments. Dan Hrankowsky I CA Student Living I Director of Design 1 312 994 1874 1 dhrankowsky @ca- ventures.com Dan Hrankowsky, Director of Design, oversees CA Ventures' development management group, guiding construction projects from concept through completion. John Druffel I CA Student Living I Executive Vice President 1 312 239 1898 1 jdruffel @ca- ventures.com John Druffel, Executive Vice President, oversees development, acquisition and management of high - quality student housing assets in select U.S. markets. He also specializes in energy, with specific expertise in MEP design, energy efficiency, building operation and automation systems, and integrated controls. "lichael Yeagle I CA Student Living I Executive Vice President 1 312 994 1866 1 myeagle @ca- ventures.com . hael Yeagle, Executive Vice President of Leasing and Marketing of CA Student Living, works closely with v the development team to conceive a competitive product through unit mix, amenity offerings, building features, and leasing promotions. He develops and implements comprehensive strategic property marketing programs through market analysis, brand management, leasing, marketing, and staffing oversight. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT HARTSHORNE PLUNKARD ARCHITECTURE Founded in 1987, Hartshorne Plunkard Architecture is an award winning, full service architecture, interior and planning design firm located in Chicago's Fulton Market District. Leaders in new construction, historic preservation, green /sustainable, mixed -use and renovation projects, HPA design interpretations transform the way we live, work and interact with each other. The Hartshorne Plunkard design team is comprised of talent- ed, experienced and progressive architects and designers who thrive on each challenge presented. They utilize a single- studio approach that fosters creativity and cumulative, effective design strategies. They are like- minded problem solvers, innovators and partners throughout the building process. HPA's design approach involves a creative response to the unique attributes of each project. They have a proven track record of successfully meeting their client's budgetary and schedule requirements, as well as effective administration of the process. The result of their approach is a seamless delivery of beauti- ful, sustainable and creative design solutions. As part of their practice and mission, they consider not only the aesthetics of a project but also how they designs impact the environment, and they utilize renewable resources whenever possible. PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT BEAL DERKENNE B10 Beal Derkenne Construction (BDC) was established in 2010 and has quickly emerged as a preferred Con- tracting partner across numerous product types and marketplaces. Lean in size, heavy in experience - their skillsets, drive and passion for what they do are the essentials that set them apart in the market. Headquartered in Des Moines, Iowa, BDC's operations extend to Arizo- na. Nebraska and Missouri. In a short period, the company has successfully executed close to 1,000,000 SF in projects, with another 650,000 SF currently under construction. BDC's position in the market is unique, having the size, structure and experience to be competitive on projects of all sizes. BDC is redefining the traditional roles and expecta- tions of project execution. They talk a different talk and actively steer the focus of all parties towards timely fruition. Their existing relationships, experi- ence and entrepreneurial skill sets continue to trans- late into project opportunities and successes. BDC's primary focus is to offer an unparalleled build- ing and development experience for our clients. A wealth of construction knowledge and a proven track record of project delivery success, complements their mission to create an experience for their clients that is above and beyond the standard. !I 11 � ■ �1- 1 !!IT 11 11■ �� 11 11 ■ mill ■� 11 n ■ o 4E — -'C'.1 1 F". �Y PRIVATE DEVELOPER PROPOSAL FOR COURT /LINN REDEVELOPMENT SITE HOSPITALITY. RESIDENTIAL & RETAIL MIXED -USE DEVELOPMENT PARTNER CONTACT INFO & REFERENCES HPA Contact: James M. Plunkard, Hartshorne Plunkard Architecture, 323 N Carpenter St., Chicago, IL 60607 jplunkard@hparchitecture.com, 312 - 226 -4488 BDC Contact: Andrew Beal, Beal Derkenne Construction, LLC, 506 3rd St., Suite 300, Des Moines, IA 50309, 515 - 650 -7807 Fifth Third Bank Contact: Bill Suenkens, Fifth Third Bank, Commercial Real Estate, 222 S. Riverside Plaza 33rd Floor, Mail Drop GRVR3B, Chicago, IL 60606, william.suenkens@53.com, 312 - 704 -4104 References: 1. Bill Suenkens, Fifth Third Bank, Commercial Real Estate, 222 S. Riverside Plaza 33rd Floor, Mail Drop GRVR3B, Chicago, IL 60606, william.suenkens @53.com, 312 - 704 -4104 2. Katie Janik, Private Bank, 120 LaSalle St., Chicago, IL 60603, kjanik@theprivatebank.com, 312 - 564 -1284 3. Elizabeth Hozian, BMO Harris Bank, 111 W. Monroe St. / 115 S. LaSalle St., 5th Floor East, Chicago, IL 60603, Elizabeth.Hozian@bmo.com, 312 - 461 -7984 4. Robert P. Mathias, Harrison Street Real Estate Capital, 71 S. Wacker Drive Suite 3575, Chicago, IL 60606, RMathias @harrisonst.com, 312 - 920 -1852 5. Craig Przygoda, Associated Bank, 525 W. Monroe St. Suite 2400, Chicago, IL 60661, Craig .Przygoda@AssociatedBank.com, 312 - 544 -4637 STUDENT 4 A LIVING Private Developer Proposal for the Court St. / Linn St. Redevelopment Site HOSPITALITY, RESIDENTIAL & RETAIL MIXED -USE JJ Smith, Chief Development Officer 312 994 1882 jjsmith@ca-ventures.com John Diedrich, VP of Investments 312 994 1882 jdiedrich@ca-ventures.com CA Ventures 1 161 N Clark I Suite 4900 1 Chicago, IL 60601 ± t kE y\ m \ �, F mE §! 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U LL N "' N 0 O O N N o_ x a) a)�6 a)� o a) a) 3 s va U C -0 O N O) 'N tll a) C N O) Q C C .� C N N O .� m $ E _ a) s U E a) (U ) a) a) Q" c> a) O x x 0 w= LL o m m m o Z o 0 6� W4 5 v QI s E +� v a� o V \) § 7\ \=��`k& f\ m CL ®® e- _ o e 0 ! = o \222/j a . §�� °$� { \k\ ! /- /) CL m 2L /\;[§�)m /&\ \ \y ®\\ k f + _± > { § / / R _ \ k U & k } - 2 k \ _ j \ { {) § {) .5 \Nm o § e _ ) \\ 3 \§/ o: - 3 » ° I _) o o E 0 3 ]�) - =; / _- 3yr �� §2pC$CL [)oak - C \\ ƒm Imo\ - ) �> E%/ _ §a -} \ƒ/ 0 L < k()§ CL - ±] ]¢e \kt\ \00 3 /) 00M]� � _ 00 (u o a 0+ = f» « 5 0 m 5 0 /o� 0 0 RR 0 0 of k E 0 J \ { U) &/ / G9 ]6E/ \ \ \ \) »� 7\ \=��`k& ' ®® _ o e 0 0 = o \222/j §�� °$� { \k\ /- 2L /\;[§�)m /&\ \ \y ®\\ 3 f + _± > _ § / / \ k 7 & k } §) 2 k \ j \ { {) § {) o § e _ o. z° § o: - 3 » ° I _) o o E �- 0) - _- §2pC$CL C / ƒm �E� /®j -t�222 CL {3e2g \kt\ f 3 ® ® _ � _ _ (u o a C = « 0 m of k E 0 % ± { U) [ / E \ \ \ CL \ // f co: o_ Ex, f \ >o 0 k»7 a =- /gym /$Fu0=.— -t2\ EwooU) =m /« -f0 - /& ®\ ® /o3 _ \ oe2Jp# [% ® )o(u z£u °R .2 L6 E & e\#0 CL m rf \ \_C)\ e p§ § 2= 2 §/£ e&_- ® o e i o _ § Eo »&a�EEa « ® ®\) {k $ /(�° !&>��£�a� ) k) / \ ( [ f [ £ / 2 3 e 2 2 ƒ f E \�\ �u CL ( 2 ±� \J®�%0 § \ /2E \f\]3§:\ / /[+2»S \ % UA BSC July 16, 2014 G R O U P Tom Gourguechon Prestige Properties, LLC Re: Court St./Linn St. Redevelopment Site, Iowa City, IA Tom, The purpose of this letter is to inform you that we have reviewed the preliminary information you have submitted in regards to the proposed Court/Linn Redevelopment project in Iowa City, IA. Based on our expansive knowledge of the capital markets and preliminary research conducted to date, it is our opinion that the contemplated capital stack proposed for this development is reasonable, and as such we believe the deal to be eminently financeable once you have received all of the necessary approvals. We have had preliminary discussions with several joint venture capital sources and lending institutions that have expressed interest in the project; this includes Regional Banks, Private Lenders, and Private Equity Funds. Obviously, as you can appreciate, it will not be possible to obtain actual term sheets for financing until such time as the deal becomes more formalized. As such, this letter is not a commitment, undertaking or offer by The BSC Group to provide the financing on this proj ect. We look forward to working with you to secure financing for the proposed development once you have achieved all of the necessary approvals from the municipality. In the meantime, please let us know if there is anything further we can do to assist you in the endeavor. Sincerely, Stephen Lee Vice President The BSC Group, LLC THE BSC GROUP 600 W. Van Buren Street htip: / /thebscgroup.com Suite 204 Fax: 312277.6777 Chicago, IL 60607 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, or 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: 3v l 6-- ceo[ r-)7 7:�T - � -s City, state, zip: lc)l,(4&GXT-yT4A, 5Z2-4-0 Name and Title of Representative: Date: 4 -1 Co- L0 I+ 19 EXHIBIT "B" LISTING OF LAWSUITS OR LITIGATION WITHIN THE PAST FIVE YEARS Lawsuit or Litigation � O N Status or Outcome N r,A Comments R/ry 20 Linn I Court Lofts Response to Request for Proposal for the Submittal for a Private Developer Proposal for the Court and Linn Street Redevelopment submitted by July 16, 2014 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Table of Contents: Items: Table of Contents ..................... ............................... ...........................Page 1 1. The proposal submittal signature form - Exhibit W ........ ............................... Page 2 2. Letter of Interest on the proposer's letterhead .............. ............................... Page 3 3. Primary contact person and contact information ........... ............................... Page 4 4. Legal name and address of the development entity ...... ............................... Page 4 5. Identification of the legal entity with whom the City would contract .................. Page 4 6. Development Team organizational chart/Team Bios .......... ...........................Page 5 - 7 7. A description of Proposer's Previous Experience ......... ............................... Page 8 - 10 8. Proposer's financial capacity to obtain permanent financing, including letters of interest from lenders and /or tax credit investors .............................. Page 11 - 13 9. Proposer's plan for construction and financing of the Project including ............. Page 14,15 a. Organization and management approach to the Project; b. General schedule for completion of the Project acquisition; c. Description of a general plan for construction loan and permanent financing, copies of any letters of intent from prospective purchasers and /or tenants; d. Description of the marketing approach to secure purchasers or tenants; e. Property purchase price and the explanation of the purchase price 10. Public financial participation including ........................ ............................... Page 16 - 20 a. Preliminary project building costs, preliminary pro forma and sources and uses of funds, illustrating anticipated and /or potential financing sources; b. Proposed amount and description of gap financing assistance for the project. Section 4 provides a link with more information; c. Description of how public financial participation will further the City's economic development goals; d. Description of how the Project addresses and corresponds to market demands and conditions. A market study may be required as a condition of financial assistance. 11. A visual description of the proposed Project .................... ...........................Page 21 - 29 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. Conceptual layout of commercial and residential floors and parking; e. Conceptual visualization of the pedestrian -level fagade. 12. A description of the energy efficiency of the building ..... ............................... Page 30 13. Exhibit „ B•• ............................................................ ............................... Page 31 14. References from financial institutions, city governments, and Community organizations that will permit the City to verify the capabilities of the proposer... Page 32 - 38 15. The identity of any unique resources, capabilities or assets which the proposer would bring to the Project ........................................ ............................... Page 39,40 1 . Linn I Court Lofts Court Street / Linn Street Redevelopment Project 1. The 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, or 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 N e ands Q that the City may rely on the information provided. V Firm name: V . V►5 K D , =-%G . Home office address: 13 WyogJCtGS4 Lt.. NE City, state, zip: = e w e. Co; 4.v _ MA S Z-LWO Name and Title of Representative: Name: Signatt Date: Z4,414 14i. 7.014 2. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 2. A signed letter on the proposer's letterhead indicating an interest in the Project. July 15, 2014 t4hanson.c City Clerk City Hall 410 East Washington St. Iowa City, IA 52240 RE: Private Developer Proposal for the Court St. / Linn St. Redevelopment Site, Iowa City, IA City Clerk, The CG Hanson, Inc. development team is excited to express our interest in being considered as the developer for the mixed -use project to redevelop the east half of Block 1, County Seat Addition, bounded by Court St. on the north, Linn St. on the east, Harrison St. ( vacated ) on the south and a north -south alley on the west. Our project is a mixed -use twelve (12) story urban building featuring residential units with an emphasis on providing housing for active seniors who desire to remain connected to a University campus, providing a healthier, more stimulating lifestyle for older adults. Linn I Court Lofts is designed to include commercial spaces that encourage learning and living a healthy lifestyle. Commercial space has also been allocated to offer companies a place that will create more employment opportunities and help to retain a skilled workforce in the downtown area. This proposal also contains residential units that will be within workforce housing rental and purchase guidelines. We believe this project has the potential to re- vitalize the area and bring a multi - generational community adjacent to a student population to encourage interaction with residents that results in a positive experience for all. Every element of design has been done with a focus on Environmental Sustainability. We've designed to maximize the energy efficiency as well as providing a vibrant, high quality place to live and work. Open space has also been provided as flex space in the event there is interest in having an amenity such as a fitness center, lecture room, computer room, etc. The marketing team will work diligently to attract high quality retailers and food purveyors which will further the city's goal to have an active frontage. I want to personally thank you for the opportunity and look forward to present this for review. Please don't hesitate to contact us should you have any questions. Sincerely, CG Hanson, Inc. Charlie President 13 Woodcrest Lane NE, Iowa City, Iowa 52240 cghanson.com Iowa 319.333.8979 fax 319.333.1761 3 ■ 4.5 ■ Linn I Court Lofts Court Street / Linn Street Redevelopment Project 3. Primary contact person and contact information. Charlie Graves 13 Woodcrest Lane NE Iowa City, Iowa 52240 Email: charlie(a)cghanson.com Phone: 808.281.7771 4. The 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. CG Hanson, Inc. 13 Woodcrest Lane NE Ohmson,ill: Iowa City, Iowa 52240 (Charlie Graves, President) 5. 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. Linn I Court Lofts, LLC" 13 Woodcrest Lane NE Iowa City, Iowa 52240 Members Include ": Charlie Graves George Hollins "additional investors may be added "Linn I Court Lofts, L.L.C. is to organized for the purposes of responding to the City's Request for Proposals: Private Developer for the Court St / Linn St Redevelopment Site, Iowa City, IA and developing that property if selected as the preferred developer. Its members are committed to excellence in the design, construction and redevelopment in Downtown Iowa City. ! 4 6. Linn I Court Lofts hms o1 1:NC R O H R 6 A C H A S S O C I A T 1 S PC A R C H I T E C T S •c • CAAVU CONf1NUCIIVN CUWANY, INC. Court Street / Linn Street Redevelopment Project 6. 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. Developer: CG Hanson Inc. Charlie Graves 13 Woodcrest Lane NE Iowa City, Iowa 52240 Email: charliegcghanson.com Phone: 318.333.8979 Design Professional: Steven A. Rohrbach AIA Rohrbach Associates PC 325 E. Washington Street Suite 400 Iowa City, Iowa 52240 Email: srohrbachorohrbachassociates .com 319.338.9311 Management Agency To be determined Consultants General Contractor: John Calacci Calacci Construction Company 207 Scott Court, Iowa City, Iowa Email: John.Calaccigcalacci- construction.com 319 - 354 -7000 Legal: To be determined Design Engineers - MEPT Engineering M213 -Structural Engineer HBK - Civil Engineer 5 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Developer — CG Hanson, Inc. — Firm Bio CG Hanson, Inc. established in 2009, is an Iowa City real estate development firm offering community and economic planning, land acquisition and real estate development services in commercial real estate. CG Hanson is managed by Charlie Graves and George Hollins, both long term residents of the area. Originally from Peoria, Illinois, Charlie attended Illinois Central College and University of Texas at Arlington. During and after college he worked for Dean Witter, Reynolds as a stock broker before opening Kalona Furniture Co. from 1998 -2003 as well as owning the Kalona Locker from 1998 -2004. He joined Miron Construction in 2006 as VP Project Development until forming CG Hanson in 2009. 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 II 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. General Contractor — Calacci Construction Company, Inc - Firm Bio Calacci Construction Company, Inc. is a full service general contractor based in Iowa City, IA. Founded in 2008 we offer a full range of construction related services including new construction, remodeling, maintenance, machinery moving, rigging, millwright and design -build services. We primarily serve the commercial, institutional and industrial construction markets in eastern Iowa but we have completed projects nationwide for a variety of customers. Consultants —Firm Bio's Design Engineers PC — Mechanical Electrical Plumbing and Telecommunications At Design Engineers we provide proactive engineering excellence in Mechanical and Electrical Engineering design. We are collaborative designers of efficient, sustainable, and durable building systems. We are tenacious problem solvers, energized by complex engineering challenges. Insightful Engineers: We are proactive in serving our clients in a way that identifies clear solutions to complex challenges. We do this by listening carefully, researching comprehensively, anticipating effectively, designing creatively, recommending thoughtfully and executing beyond expectations. 6 iii: Linn I Court Lofts Court Street / Linn Street Redevelopment Project Sustainable Partners: We are committed to collaborative, sustainable design. The key to sustainable design, in all its meanings, is collaboration and integration among all members of the project team and with the environment at large. Our responsibilities for projects are shared, as are our successes. Problem Solvers: We are tenacious problem solvers. We do this by working in a culture of accountability where we accept responsibility and take ownership in our projects. We think innovatively to improve existing systems to perform beyond expectation and to make new systems that work better than old ones. We are committed to remaining actively involved in our projects until these goals are realized. A Bold Vision for the Future: We aspire to nothing short of becoming your top choice for the most challenging engineering projects. We have a talented and professional staff of 42 individuals, including 14 Mechanical Engineers and 12 Electrical Engineers. Our team's credentials include 15 PEs, 10 LEED APs, an RCDD, 2 LCs and a CMVP. Design Engineers has been doing exceptional work for over thirty years. We hire only the best and are committed to working with owners, architects and contractors to create sustainable design solutions. M213 Structural Engineers: Providing services from their Cedar Rapids office, as a team, Lynn Boettcher, Michael Brenneman, David Rasmussen and Joshua Pearce have tackled structural design problems on mixed use commercial, medical, residential, and industrial buildings both new and renovated. Their principle clients are design offices located in Iowa, but projects have been built from Florida to Oregon, Minnesota to Missouri. The staff maintains Professional Engineering Registrations in numerous states- M213 has provided structural design services for the following mixed use commercial projects: Park at 201, Plaza Towers and Whiteway 2000 in downtown Iowa City, Iowa Plaza on 6" and Ward Commercial Building in Coralville, Iowa HBK —Civil Engineering HBK Engineering, LLC is a licensed, professional design firm with offices located in Iowa City, Iowa, downtown Chicago, Oakbrook, IL, and the Philadelphia suburb of Norristown. HBK provides Civil, Structural, Electrical and Subsurface Utility Engineering, as well as Construction Project Management, Stormwater Design & Management, GIS, Licensed Surveying, and Permitting services. Their Iowa City staff includes qualified, experienced and licensed Professional Engineers, assisted by highly competent Project Managers and Designers to provide you with reliable, professional results in many facets of engineering services. They offer a combination of experience in engineering design, construction management, and innovative problem solving that is unique in the industry. The scope of their projects range from small municipal projects to major infrastructure improvements for commercial developments, large universities, and major corporations. 7. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 7. A 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. 210 and 211 51" Street, Kalona, Iowa — redeveloped by CG Hanson, Inc. 210 5`" St . is a mixed use building located in Kalona, IA which contains retail, office and warehouse / storage space. It was purchased by Charlie Graves in 1997 and required a complete tear out and re- construct. 211 5`" St . is a mixed use building located in Kalona, IA which was originally purchased in 1998 and operated by Charlie Graves as a meat processing facility and later remodeled and contains over 8,000 sq. ft. of retail space and 2,000 sq. ft. of warehouse / storage space. As a part of the CG Hanson Inc. development team, George M. Hollins, P.E., PMP has been responsible for over $1 billion in capital project value in his thirty year career as a professional engineer and administrator. He has worked on projects ranging in value from a few thousand dollars to over $100 million — as well as programs and portfolios valued at several hundred million dollars. George has served in key administrative roles throughout his career including University Business Manager and Director of Design and Construction Services for the University of Iowa; Associate Director for Business and Finance for the Iowa Board of Regents; City Engineer for West Des Moines, Iowa; and Development Coordinator for the City of Westminster, Colorado (at that time, Colorado's fastest growing city). George served as owner's representative / project manager for the University of Iowa in converting the former Menard's to Art Studios and Classrooms; developing Music Department Offices, Classrooms, and Rehearsal spaces in lower floors at Capitol and Court Streets; renovating the former fraternity building along River Street into Theatre Department offices and classrooms; reenergizing Old Capitol Mall into the multi -use Old Capitol Town Centre; and developing the BioVentures Center as a public / private partnership at the University Research Park among countless other projects. 8 Linn I Court Lofts Court Street / Linn Street Redevelopment Project 316 Madison — in planning, area: 163,000 SF, costs: $24M (Reference: Charlie Graves) Developed by CG Hanson Inc., Designed by Rohrbach Associates PC 316 Madison is a proposal for a fifteen (15) story residential building catering to university students. The street level entrance and lobby feature a concierge, mailroom and grand stair leading to a mezzanine featuring plush seating, pool tables and other amenities. A planned retail space on the ground floor is intended to provide various sundries and food items for the student population in the building and surrounding area. The professionally managed building contains 126 residential units ranging in size from efficiency to three bedrooms. Each bedroom will have its own bathroom and every unit is furnished with a gracious full -sized kitchen and en -suite laundry. The building cuts a striking silhouette clad in glass, metal and brick. Floor to ceiling windows on the west and east facades provide stunning river and downtown views. The Chauncey — in negotiations with the City of Iowa City, area: 160,000 SF, costs: $49M (Reference: City of Iowa City /Marc Moen) Designed by Rohrbach Associates The Chauncey is a mixed -use fifteen (15) story urban building featuring an arts and entertainment theme. The project will bring two new FilmScene movie theaters, two floors of 12 bowling lanes and art and sculpture gallery space to downtown Iowa City. Up to 35,000 SF of Class A office space is proposed with Rohrbach Associates PC moving into and owning a partial office floor. The Chauncey is designed to include 35 hotel guest rooms with residential units above. All 60,000 SF of the residential units at The Chauncey will be structured as condominiums. A minimum of five of the residential units will be set aside for 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. Linn I Court Lofts Court Street / Linn Street Redevelopment Project _A%4� The University of Iowa - West Campus Residence Hall, Iowa City, Iowa — under construction, area: 180,000 SF, costs: $35M (Reference: UI Facilities) Designed by Rohrbach Associates PC. 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. Plaza on 5th 8 Coralville Center for the Performing Arts, Coralville, Iowa — built, area: 148,000 SF, costs $23M (Reference: City of Coralville/McComas Lacina) Designed by Rohrbach Associates PC Located on the corner of Fifth Street and 12th Avenue in Coralville, Iowa, the 125,000 SF mixed use six story building 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 housing 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. The University of Iowa - College of Public Health Academic Building, Iowa City, Iowa, built, 130,000 SF, costs: $47.7M (Reference: Dean Sue Curry) Designed by Rohrbach Associates PC 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 exterior view of the building is designed to reflect the building's diverse inner life. 10 Linn I Court Lofts Court Street / Linn Street Redevelopment Project 8. 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 investors. A discussion of the financing sources and partnerships utilized for prior projects and references from these parties are also welcomed and encouraged. We have an excellent and long standing relationship with our 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 and life companies sources with success for all parties. Letters of Interest from Lenders 1. Hills Bank and Trust Co. pg. 12 2. University of Iowa Community Credit Union pg. 13 11 -A%4� Nills Bank and Trust Company July 15, 2014 Charlie Graves, President CG Hanson, Inc. RE: former St Pat's Church site project Dear Charlie: 10092 N11 STREET CORALVILLE IA 52241 PHONE (319) 351 -8000 1- 800 -445 -5725 FAX (319) 351 -2529 This letter is to confirm that we have seen the preliminary schematic renderings for your proposed building project and have had discussions with you regarding the financing of this project. Based on what has been proposed and discussed thus far, I can confirm that Hills Bank & Trust Company will certainly have interest in providing financing for this project. Please keep us informed as further information and details become available. Thanks for the opportunity to assist you with this project. Sincerely, r Tim D. Finer Senior Vice President 12 July 14, 2014 319- 339 -1000 or 800 - 397 -3790 • www.uiccu.org Commercial Services PO Box 2240, Iowa City, Iowa 52244 Charlie Graves, President CGHanson Inc. 13 Woodcrest Ln. NE Iowa City, IA 52240 RE: St. Patrick's site Iowa City Dear Charlie, Please let this letter serve as University of Iowa Community Credit Union (UICCU) "letter of interest" to provide financing for the development of the St. Patrick's site. We appreciated the opportunity to review your plans for the site. If you have any further questions, feel free to contact me at 319 - 341 -3074 or swilson @uiccu.org. Sincerely, S tt Wilson r. Vice President Commercial Services 13 soon pi Linn I Court Lofts Court Street / Linn Street Redevelopment Project 9. A 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 (CG Hanson, Inc.) The Design Professional (Rohrbach Associates PC) and the General Contractor (Calacci Construction Co. Inc.) 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. The developer has been, and will continue to be, intimately involved with decisions regarding configuration of all areas (common areas, retail, office, 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. The Developer will continue to work as a "hands -on" partner in seeing this project through to completion. The Developer and Team will work closely with the City, University and others to ensure an optimal project is completed. A management organization will be hired to manage the building when complete. b. General schedule for completion of the Project following property acquisition; From the experience with the negotiation of the Chauncey, Rohrbach Associates has reviewed scheduling this project from the approval of the Developer Agreement because the site acquisition could come after the start of design on the project. We offer the following preliminary schedule for the planning, design and construction of a 12 story, 330,000 GSF site redevelopment and building project: Activity Nbnths 112 13 14 5 16 17 18 19 110111112113114115 16117118119120121122123124125126 27128129130131132133134135136 37 38 39 40 41 42 43 44 45 46 47 481491501 Developer reenent Approval Schenetic and Design Developtnent GIMP Pricing Construction Docs. Package 1 - Site Prep/Fwndations Package 2 - Structure/Shell Package 3 - Finish Construction Site Prep/Foundations Super Stucture/Shell Residential Floors Finish Conrrercial/Retail Floors Finish /Site c. Description of a general plan for construction loan and permanent financing, copies of any letters of intent from prospective purchasers and/or tenants; Charlie Graves and CG Hanson, Inc. have relationships with both UICCU and Hills Bank and Trust. In addition, we also work with Life Insurance companies, Pension Funds, and private debt / equity firms across the U.S. who is poised to invest in sound real estate developments. We believe this places us in an excellent position to secure construction and permanent financing for this project. 14 Linn I Court Lofts Court Street / Linn Street Redevelopment Project d. Description of the marketing approach to secure purchasers or tenants; Charlie Graves possesses a current real estate sales license which is held by Skogman Realty, Coralville, IA. Skogman Realty will provide resources to market both the residential and commercial properties including print and web based advertising. With 9 offices and over 240 experienced agents, their network provides maximum marketing exposure and results. We are also currently having discussions with local and national retailers, restaurants, local healthcare organizations as well as management companies specializing in senior facilities. Cafeteria Alternatives, Inc. of Peoria, Illinois has expressed interest in managing any food related components. Office Levels: 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 user's office space must be developed proactively. There is demand for well located, well managed, quality properties downtown evidenced by • Consistent 100.0 occupancy and continued strong sales at other Downtown Developments Serious requests from numerous prospective tenants and buyers (commercial and residential) requesting detailed information on pre -sales and pre - leasing on downtown projects. e. 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. 15 iii: 10. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 10. If public financial participation is contemplated / requested, a narrative and information including: a. Preliminary project building costs, preliminary pro forma and sources and uses of funds, illustrating anticipated and /or potential financing sources; b. Proposed amount and description of gap financing assistance for the Project. Section 4 provides a link with more information; Costs: Site acquisition, Construction cost and Architectural /Consultant fees $52,027,050 Survey, Printing, Soil testing, Construction testing $ 120,000 FFE $ 1,735,000 Insurance during construction $ 30,000 Construction interest $ 2,663,784 Total $56,575,834 Equity and borrowed funds $42,432,000 Gap (Tax Increment Funding or City Assistance) $14,144,000 Income Commercial Rents $ 837,650 Residential Rents $3,256,440 Total Gross Rents $4,094,090 Expenses Maintenance, Repairs, Utilities, Insurance, Service Contracts, etc. ( Not passed thru ) $ 577,089 Property Taxes ( Not passed thru ) $ 418,120 Total non -pass thru $ 995,209 NOI $3,098,881 Total Property Tax Projections ( Completed ) $1,460,285 c. Description of how public financial participation will further the City's economic development goals; Linn I Court Lofts is requesting financial assistance from the city. By providing assistance, the project can become a viable, productive entity which will help to enhance the employment base by attracting high quality employers. It will also promote highest and best use of the land and encourages better housing and services to the citizens of Iowa City. The property will increase both the residential and commercial property tax base as well. 'I� 16 Linn I Court Lofts Court Street / Linn Street Redevelopment Project d. Description of how the Project addresses and corresponds to market demands and conditions. A market study may be required as a condition of financial assistance. I. University Based Retirement Community (UBRC) A. Components of UBRC University Based Retirement Community (UBRC) has recently emerged as an attractive housing alternative for the aging population. A UBRC is built around the concept of apartments for life featuring universal design and connective technology. An apartment for life is designed to accommodate inhabitants with a wide range of physical abilities and impairments, and includes attractive and discrete features that are adaptable to age —related changes in the need for health care and other support. This built -in adaptability, known as universal design, ensures that the residents are able to carry out the activities of daily life even if they suffer an injury or experience an illness that limits their mobility. The intent of the apartment for life is to offer housing for the remainder of life. An apartment for life is designed to prevent the need to discharge an older adult from a hospital into a nursing facility; it also removes any compelling reason for an older adult to move into another home or residence even as their health decreases and end of life approaches. Moreover, in contrast to nursing and assisted living facilities which require older adults to move into new living spaces as their healthcare needs increase, apartments for life should be the last move a person has to make. An apartment for life should also be situated within a livable community for successful aging, the vital components of which are affordable and accessible healthcare, education and leisure programs. The need for healthcare is fairly straightforward: as people age, they need care for their chronic and acute illnesses or injuries. They may also come to need assistance with the activities of daily life and day care services. It is important, therefore, for a community to be able to provide access to these services. In addition, access to education on topics such as financial literacy, second career options, and successful aging can help older adults retain their independence, while courses in topics such as art, science, and history, provide intellectual stimulation and present an opportunity for intergenerational interaction. Similarly, leisure activities promote wellness and civic engagement, and a generally greater level of social interaction. Each of these is an essential part of the livable community that can support apartments for life. Fortunately, with its excellent supply of healthcare, education and leisure opportunities for older adults, Johnson County already has been designated a livable community, and as such, provides the sort of environment that would facilitate the success of a UBRC development. Developing partnerships with individuals and programs from the local campus is another key aspect of the UBRC concept. Through such partnerships, the UBRC entity and the university are able to take advantage of the resources each has to offer. For example, residents of the UBRC may audit courses, receive discounts on the price of attending campus events, and be provided access to campus libraries. In turn, members of the university community may be afforded access to the amenities of the UBRC development such as a wellness center or 17 Linn I Court Lofts Court Street / Linn Street Redevelopment Project retirement services. This not only provides reciprocal benefits to the members of the university and residents of UBRC, it encourages interaction among the members of those respective groups. Such interaction is important and what makes UBRC distinct from traditional retirement communities. Fortunately, like Johnson County, the University of Iowa already offers a range of educational, research and other programmatic activities most relevant to older adults through the Aging Studies Program, the Aging Mind and Brain Initiative, and the Center on Aging. B. Current Supply of Senior Housing Currently, senior housing following the UBRC model does not exist in Iowa City. A 2006 housing report prepared by the Johnson County Consortium on Successful Aging found an inadequate supply of senior housing that was attractive and affordable to middle income seniors, defined as those who do not qualify for assistance programs nor have sufficient wealth as to afford the entry fee required by local continuing care retirement communities.' There also is a lack of affordable and attractive senior housing adjacent to the University of Iowa campus. This particular finding was not only affirmed by more than 500 seniors who completed the survey but also by local housing developers and realtors who were interviewed as part of the study and reported a lack of affordable housing options for seniors. This is not to say that there are no affordable or attractive housing options for seniors in Johnson County, but it is clear that those that are affordable to middle income seniors typically do not feature the apartment for life design nor are physically located near campus. C. Current Demand for UBRC According to the 2006 housing report, there is strong demand in Johnson County for new construction that incorporates design features that promote older adults' ability to age at home. In addition, seniors reported that access to healthcare, education and leisure services is important. The demand for development of housing suitable to aging persons that incorporates healthcare, education and leisure pursuits has now persisted for nearly a decade in Johnson County. Current Census data also reveals that population projections issued by the Consortium in 2005 have fallen significantly short of the actual population of older adults that live in the county. This means that the demand for affordable senior housing also has likely exceeded expectations. A 2012 survey of the University of Iowa employees provides additional support for the demand related to affordable senior housing. Among the 3,200 employees who responded to the survey, nearly 43% reported that their current home would be hard for someone over the age of 65 to live in. Of those not desiring to remain in their homes, 90% expressed interest in a livable community that includes affordable housing, healthcare and supportive services, and access to education, leisure and transportation. 18 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Similarly, a recent study of employees and staff at Indian Hills Community College was consistent with the results noted above. Survey respondents expressed a substantial desire to remain in their current homes for the rest of their lives, but many acknowledged their current living arrangement would be hard to live in for someone over the age of seventy -five? Likewise, those respondents also largely agreed that they would consider moving into a housing development that incorporated design features that would allow them to live there for the rest of their lives.' Finally, a 2012 report from the Milken Institute ranked Iowa City the second best small metro area for successful aging.° The report lauded the healthcare services available, but expressed specific concerns about city's high cost of living compared to its senior housing demand-5 II. The Project A. Overview This proposed UBRC development is designed to respond to the health, education and leisure needs of the aging population in Iowa City, as noted above. Accordingly, the UBRC development will be built according to the principles of universal design and will include apartments that are affordable to a range of financial capacities. It will also incorporate common space for the use of the residents as well as commercial space that will be rented to businesses serving the residents while attracting non - resident community members. It will also incorporate technology that allows residents to remain connected to their health care providers and community, and will take into account energy efficiency considerations. A. Interior of Apartments Apartments will include extensive universal design features, or features that are accessible to people with a wide range of physical abilities. This means that hallways and doorways will be sufficiently wide to accommodate mobility devices. Handles and switches will be easy to manipulate and outlets will be located so as not to require bending and stooping. Other features will be adaptable to suit the current needs of the resident. For example, cabinets will be made removable so that a wheelchair can roll up to a counter, and counter heights will be adjustable as well. Walls will be reinforced so that grab bars may be installed as needed. The apartments will also be varied in size and shape to accommodate a range of needs. There will be three to four different sizes and layouts available, and each may be outfitted with customized finishes. Regardless of layout or finish, each apartment will conform to the principles of universal design and will incorporate smart home technology. 19 Linn I Court Lofts Court Street / Linn Street Redevelopment Project B. Common Space There will be additional space allocated for residents' use in pursuit of either healthcare, education or leisure. To that end, the common space may contain a wellness center where the residents can exercise and attend classes designed to promote health literacy in the aging population. Common space may target educational needs as well. It may include a classroom in which university courses will be taught and made accessible to the residents. This would present an additional opportunity for intergenerational interaction and to foster a relationship with the university community. Common space dedicated to education may include an emeriti center that would support retirees of the university, both residents and nonresidents, with educational programs and leisure activities and advocacy on behalf of university emeriti. C. Commercial Space Part of the UBRC development will be left available for commercial lease to businesses that will serve the residents of the UBRC development as well as the community at large. One example would be a consignment shop, where residents could bring their used items to be sold to students and other community members. Another possibility would be a restaurant offering healthful menu items that would provide service delivery to the residents and would also be open to the general public for a sit -down meal. Other examples would be a convenience shop that carries household and food items, or a coffee shop that could also serve as a social gathering place. Any of these businesses could provide employment opportunities for the residents who prefer to work. The central idea is that the services offered should be targeted toward both UBRC residents as well as the community, so they must be attractive to a diverse population of consumers. These commercial enterprises create another opportunity for the UBRC development to provide a benefit to the community and facilitate interaction among the residents of the UBRC development and other customers of the businesses, be they students or other community members. 14000 12000 10000 8000 8000 4000 2000 0 Projected Growth among 65+ in Johnson County: 2000 -2025 8535 8729 4949 5006 3569 3726 4 13247 11]68 7073 63H1 5414 6207 _■ Toil � Females 2000 2005 2010 2015 2020 2025 Ma1Ps The blue diamond line above indicates projected growth in seniors. The three blue bars and red line indicate actual measured numbers. 20 11 . Linn I Court Lofts Court Street / Linn Street Redevelopment Project 11. 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. Conceptual layout of commercial and residential floors and parking; e. Conceptual visualization of the pedestrian -level fagade. Executive Summary The Building The Linn I Court Lofts is a vibrant twelve (12) story urban building which will include two levels of retail, two floors of class A office space and nine (9) floors of residential units ranging in size from 900 square feet to 1800 square feet. A minimum of 10% of the residential units will be leased or sold within workforce housing guidelines and developed to the same quality and finishes as the remaining units. The facility will provide one hundred percent of the required parking on site in a multi -level structure. The project is designed as a multi - generational housing community based on the Campus Adjacent Senior Housing concept (CASH) explained elsewhere in this proposal. The proposed retail uses and commercial office functions are intended to provide goods and services to support the overall concept. The Site The proposed site is the half -block parcel located on the south west corner of the intersection of Linn and Court Streets in Iowa City. The site is bounded on the east by Linn Street; on the north by Court Street; on the west by an existing mid -block alley; and on the south by private property. The south 80' of the site is in line with the East Harrison Street right-of-way- The proposed site slopes steeply in two directions with a total elevation change from high point to low point of over 34'. To maximize the use of the site, the commercial and residential building is set on a base of parking that encompasses the full extent of the property. Along Linn Street where the steep slopes are most significant, the parking base steps back to reveal a public outdoor space accessed via a stair or through the building for those utilizing mobility devices. The Architecture The Linn I Court Lofts are a multi -story, multi - volume building clad in brick, metal, and stone. Numerous architectural styles exist in the immediate vicinity of the proposed building; however, brick is the prevailing exterior cladding. As such, the Linn I Court Lofts utilizes brick on its lower volumes in order to better relate to the surrounding neighborhood. Punched windows on the base volume establish a consistent rhythm of solid and void that is carried throughout the project. The bottom two floors of the building contain retail space, lobby and parking. The next two levels will be shelled for commercial office with the remainder of the building dedicated to residential use of both the apartment and condominium variety. The primary organizing element of the building is a central atrium that extends from the lowest retail level up through the 8 floor. The remaining four stories of the building contain loft -like condominiums with commanding views of the surrounding neighborhood. The Parking To maximize the use of the site, parking will be provided below grade in a 3 -level structure with primary access off of Linn Street at the East Harrison Street intersection. A limited, fourth level of parking is provided off of the alley and will be reserved for retail customers. The total parking capacity will be approximately 227 stalls. 21 Linn I Court Lofts Site Plan FIM'..118 -- n') _ IN EAST HARRk. STRF I .i Court Street / Linn Street Redevelopment Project ,r I( I ✓ iE ENT.. 37RE- E 1 \ n � e � tl ILA �- # cIEA HARRISON — STREET I�I MAIIJ PTRKINC EN1fiA1JCC Dill I Site Plan The large site is bordered by Court Street on the north and Linn Street on the east. Primary pedestrian access is from Court Street. Primary vehicular access is from Linn Street. 22 a S, ,R rE�M EAST HARRk. STRF I .i Court Street / Linn Street Redevelopment Project ,r I( I ✓ iE ENT.. 37RE- E 1 \ n � e � tl ILA �- # cIEA HARRISON — STREET I�I MAIIJ PTRKINC EN1fiA1JCC Dill I Site Plan The large site is bordered by Court Street on the north and Linn Street on the east. Primary pedestrian access is from Court Street. Primary vehicular access is from Linn Street. 22 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Renderings 23 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Renderings WE 24 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Renderings 25 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Floor Plans H � 11�JIIIIIIIIIIIIIII�1 i ® BELOW G AD 0 I I I TO HO SES I PARKING: FNTRGNCF LINN STREET PARKING LEVEL 3- RETAIL LEVEL I - ROOF TERRACE BUILDING FLOOR 1 (GROUND FLOOR) Li ALLEY A] STALLS PUBLIC PLAZA PEDESTRIAN ACCESS OPEN 96c 1 TOWNHOUSES 1 she ALLEY L ?NA' STREET � 1 li Il STRFFTLEVELENTRANCE PUBLIC ACCESS 1530 SF I 1530 SF 1 1530 SF 16W SF 16995 I•VIII R TAIL LVL1 W w N C 0 O 30]i 5F U =i Hiwiih4ii SHORT TERM PARKING Ii 10 STALLS 1097 Al 1, -'- , LLVL2 I 1530 RE 1530SF 1 1530 SF1 3071 SF PARKING LEVEL 4- RETAIL LEVEL 2 -ROOF TERRACE BUILDING FLOOR 1 1 32 0 33 E4 Building Base The base of the building contains three (3) levels of parking and houses up to two (2) levels of retail space. 'I� 26 Linn I Court Lofts Floor Plans Court Street / Linn Street Redevelopment Project � II I I I I I II ASE 2 FOOTPRINT II I I II I� COMMERCIAL OFFICE FLOOR (2 FLOORS)\ BUILDING FLOORS 2 & 3 COMMUNITY SPACE I I I L --fi�1 II �I-- 7t- -1 1 II r L CHA E 2 FOOTPRIN� I 1� I T �X� II I I I I I II I- J I I I I II I L— I- RESIDENTIAL LEVEL 1 -2: APARTMENTS BUILDING FLOORS 4 S 5 ,41- i� —� —J 17-1 I �LSP OFFICE SHELLSPACE� No miiiiiiiiiiii il!li M RESIDENTIAL UNITS ATRIUM ATRIUM � I - N F �I o az ee Building Midsection The midsection of the building contains two (2) floors of commercial office shell space capped by two (2) floors of apartments. 27 TOWNHOUSES BELOW COMMERCIAL OFFICE FLOOR (2 FLOORS)\ BUILDING FLOORS 2 & 3 COMMUNITY SPACE I I I L --fi�1 II �I-- 7t- -1 1 II r L CHA E 2 FOOTPRIN� I 1� I T �X� II I I I I I II I- J I I I I II I L— I- RESIDENTIAL LEVEL 1 -2: APARTMENTS BUILDING FLOORS 4 S 5 ,41- i� —� —J 17-1 I �LSP OFFICE SHELLSPACE� No miiiiiiiiiiii il!li M RESIDENTIAL UNITS ATRIUM ATRIUM � I - N F �I o az ee Building Midsection The midsection of the building contains two (2) floors of commercial office shell space capped by two (2) floors of apartments. 27 Linn I Court Lofts Floor Plans I I Court Street / Linn Street Redevelopment Project r—PHASE 2 FOOTPRI tt L— — — — — — o 1 - _L_- f- =T= -T - -F II I I I I I II -L- RESIDENTIAL LEVELS 3-6: APARTMENTSICONDO - ROOF TERRACE 3 BUILDING FLOORS 6 -9 i CPASE 2 FOOTPRINT x I J I i L-------- - - - - -J e18 1 use 1 1218 1 1160 1 12M �— � ATRIUM ATRIUM loos 1361 GREEN ROOF: ?? GREEN ROOF::: ;S> 820 960 9B0 RESIDENTIAL UNIT No 1050 10 RESIDENTIAL LEVELS 7 -9: CONDOMINIUM - ROOF TERRACE 4 BUILDING FLOOR 10 -12 v o u ea Building Top The upper stories of the building contain all residential units ranging in size from 900 SF to over 1,800 SF. 28 Linn I Court Lofts Court Street / Linn Street Redevelopment Project Conceptual square footage of commercial, residential and office space: Commercial /Retail /Parking GSF Retail 22,114 Commercial Office 33,506 Parking 227 stalls 133,758 Community /Circulation /Unassigned Area Core /Community Space 3,836 Circulation /Unassigned 31,310 Residential Preliminary unit sizes range from 900 SF to 1500 SF Apartment (2 floors) 22,680 22 units Apartment /Condo (4 floors) 45,428 36 units Condominium (3 floors) 26,040 27 units Townhouse 14,400 5 units Total program area 333,072 90 units Atrium Roof Terrace + Public Open Space 19,114 20,250 Total building area 372,436 GSF 29 ^iii' 12. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 12. A description of the energy efficiency of the building, including anticipated efficiency above the base standard, and a description of sustainability features proposed to be included. Long -term sustainability and energy efficiency is a primary goal of the Linn I Court Lofts. Sustainable design is efficient design, but it is also uncomplicated, easy to understand, and adaptable to change. Anything less will not maintain its efficiency over the life of the building, and will ultimately become a drain on resources rather than a savings. A variety of strategies will be employed to reach an overall goal of 15% to 20% better than the current Iowa Energy Code. Improved performance will be achieved through the following design strategies: Building Envelope Design Enhanced wall and roof insulation to 30% better than Energy Code minimum, Continuous insulation to prevent thermal bridging and Continuous weather barrier to prevent water infiltration and degradation of building components Green Roof Portions of the roof will be dedicated for green roof planting. The project will utilize a rooftop sedum tray system. These systems have been shown to reduce storm water oufflow as opposed to typical roofs, as well as reducing building cooling needs by absorbing sunlight. Glazing strategies for improved thermal performance and day - lighting Clear Low -e glazing, Argon - filled insulated glazing units, thermally insulated aluminum window frames and or window orientation and lighting controls for daylight harvesting Heating and Cooling Efficiency Strategies Heating and Cooling systems will be designed for efficiency, simplicity, and long -term service. A variety of components and systems will be employed for an over -all reduction is the use of energy. Heating and cooling are planned to utilize highly efficient ground source heat pump and /or variable refrigerant flow heat pump system for a low energy cost, highly efficient and easily maintained system. Heat recovery systems will be used to recapture the heat normally lost from exhaust air. Lighting, Controls, and Day - lighting This project will utilize 100% LED lighting for common areas, outdoor lighting, and within residential units. LED lighting can reduce the electrical usage significantly when compared to incandescent lights. LED lighting can also reduce the fixture heat load, thus reducing the cooling requirements for indoor spaces. Lighting controls will be designed to reduce electrical use when lights are not needed. This will include timer /photo sensors for common area and outdoor lights and Day- Lighting controls to reduce or eliminate electric light use when sufficient natural light is available and occupancy sensors for periodically used spaces, like restrooms & meeting rooms- High-Efficiency Elevators This project will utilize machine room -less traction elevators that typically use only 25% of the electrical energy needed for common hydraulic pump elevators. Photovoltaic Electrical Generation Photovoltaic electrical generation will be utilized to operate distinct aspects of the lighting system like exterior building signage. Rooftop PV collectors will be tied directly to the building exterior signage and key exterior light fixtures to reduce the use of generated electricity. Water Conservation and Utilization The first basic strategy for conservation of water will be the utilization of low -flow plumbing fixtures, faucets, and shower heads. In keeping with the high - quality living environment for residents, high - quality fixtures will be selected for residential units and public facilities. Along with the low maintenance service and quality appearance, these fixtures are designed for low water usage. Clothes washing and dishwashers will be selected for low water usage. This has the potential for considerable water savings as all units will be provided with these appliances. 30 13. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 13. A statement relative to whether any of the principals, development entities, or members of the development team have ever been charged with 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 N/A Status or Outcome N/A Comments N/A 31 iii: 14. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 14. References from financial institutions, city governments, and community organizations that will permit the City to verify the capabilities of the proposer. 1. Reference Letter — U of I Retirees Association 33 2. Reference Letter — Steve Gordon 34 3. Reference Letter — UIHC Aging Mind and Brain Initiative 35 4. Reference Letter — Elder Services, Inc. 36 5. Reference Letter — Victor Regnier, USC Professor, Architecture 37 6. Reference Letter — ICAD 38 Letters from the financial institutions of Hills Bank and Trust Co. and University of Iowa Community Credit Union located in item 8. 32 University of Iowa Retirees Association Iowa City, Iowa Celebrrrtl+ q 6 Years of Scrvice to University and Community July 9, 2014 Charlie Graves, President CGUanson Inc. 13 Woodcrest Ln. NE Iowa City, IA 52240 Dear Mr. Graves: As president of the University of Iowa Retirees Association, I am pleased to offer informal support of the idea to develop a senior housing complex in downtown Iowa City that would be adjacent to the University of Iowa campus. The not -for- profit facility in our community could offer another alternative to living arrangements currently available to seniors. Our organization consists of more than 500 University of Iowa retirees, faculty and staff. For 20 years the association has been arranging programs not only benefiting its members but also the University and community. A campus - adjacent housing facility might well foster more such opportunities. Exploring such opportunities as well as consideration of a more formal endorsement would take place at the next meeting of the Association's Board, September 9. Sincerely yours, r enneth Starck UIRA President- 2014 -15 33 July 15, 2014 Charlie Graves, President CGHanson, Inc 13 Woodcrest Lane NE Iowa City, IA 52240 Dear Mr. Graves I offer you my informal support of your mixed use project on the former Catholic Education Center site in Downtown Iowa City. As an owner /manager of various real estate projects, including senior housing, student housing and apartment housing, I would look forward to the opportunity to work further with you on this project should you become the preferred provider. I believe your project would be an asset to the City of Iowa City and a stellar example of the positive impact the new Riverfront Crossings District can have in the area. The uses you are proposing are much needed and would be well received in the downtown area of Iowa City. Sincerely, Steve Gordon 34 L i UNIVERSfrYoF IOWA HEALTH CARE Charlie Graves, President CGHanson Inc. 13 Woodcrest Ln. NE Iowa City, IA 52240 July 14, 2014 Mr. Graves: Satoshi Kitazaki, Ph.D. Aging Mind & Brain Initiative Department of Neurology University of Iowa 2007 RCP, 200 Hawkins Drive Iowa City, ]A 52242 TEL; 319- 467 -5314 FAX- 319 -384 -9955 Satoshi- kitazaki ®uiawa. edu I am writing as a faculty member in the University of Iowa Department of Neurology and the Interdisciplinary campus -wide Aging Mind and Brain Initiative. I am pleased to team about your proposed development that would offer a campus- adjacent senior housing complex here in Iowa City. I am particularly excited to know this mixed -use development that would include "apartments for life" featuring universal design and smart home technology that is consistent with my research. If approved, we will gladly contribute to your development by providing our expertise with designing homes that support individuals as they age. Our familiarity with key design features and their usage should help your development team select those that would be most affordable and attractive to residents. We also appreciate the opportunity to work with your team and determine how we might go about partnering in research projects that feature these "state of the art" apartments. We particularly are interested in how such environments can contribute to physical and cognitive functioning and maintaining the health and wellness of the persons who reside in them. Finally, we would be excited to contribute to the development of other programs that would be tied to the complex and available to all members of the Iowa City community. For example, we look forward to discussing a partnership that can advance our work on brain health by creating a user - friendly, easily accessible program site that can be used older persons here in the greater Iowa City area. Thank you again for contacting us about being involved in this project. Sincerely, Satoshi Kitazaki, Ph.D. Professor Department of Neurology Aging Mind & Brain Initiative University of Iowa M9 OJSERVICES N C O R P O R A T E D Charlie Graves, President CGHanson Inc. 13 Woodcrest Ln. NE Iowa City, IA 52240 July 14, 2014 Mr. Graves: 15565. I st Avenue, Suite A I Iowa Iowa 52240 (319) 338 -0515 www.eidemervicesinc.com As the Executive Director of Elder Services Inc., I am pleased to support your proposal to develop the property on Linn and Court streets into a housing complex that would feature "apartments for life," as well as programs for seniors living in the housing development as well as the greater Iowa City community. As the leader of a local non - profit organization that has provided services to seniors for more than 30 years, I see this development as a welcome addition to the Iowa City landscape. The addition of such housing should help address the booming demand for living arrangements that are affordable to a range of older adults, accessible to persons with varying needs and abilities, and attractive in terms of providing age - relevant programs within an environmentally friendly setting. Moreover, our organization consists of several programs and services that could be easily linked to the development. Foremost among these is our Retired Senior Volunteer Program (RSVP), which has linked older persons with meaningful volunteer and civic engagement experiences for more than 25 years. Linking our RSVP program with your development is just one of the many opportunities we look forward to discussing with you further as this development moves forward. Best of luck with your application. I will look forward to hearing the result. Sii�in� n( /c�Jerely, Susan Blodgett Executive Director Elder Services Inc. Elder Services, Inc. provides programs, services, and resources to assist persons age 60 and over in Johnson County36 and east central Iowa to stay active, independent, and safe in their own homes. AR�CH�ITECT � F�A�IA 10610 LINDBROOK DRIVE LOS ANGELES, CALIFORNIA 90024 (310) 474 -9560 FAX (310) 474.2718 Email regnier @usc.edu Charlie Graves, President CGHanson Inc. 13 Woodcrest Ln. NE Iowa City, IA 52240 July 14,2014 Mr. Graves: As a professor at the USC School of Architecture and the Leonard Davis School of Gerontology, I have considerable expertise in the design and development of campus- adjacent senior housing. I am pleased to offer my support for your proposal to develop a senior housing complex. I am particularly interested in the "apartments for life" approach which has great promise especially in a livable community like Iowa City. As an academic and consultant I have been involved in more than 300 age restricted housing projects in the last 40 years - -I also visited Iowa City in 2012. I applaud your effort to put together a proposal that offers accessible, affordable and attractive senior housing. I also am pleased that your team has been able to take many of the concepts and designs that were created as part of my 2013 architectural design studio and integrate them into your proposal. If this proposal is approved, I will gladly serve as a project consultant. In that role, I can provide insights about how to execute your building design, how to effectively mix the residential housing with non - residential programs and services, and I will share some of the lessons I have teamed from my involvement in other such developments. I am excited that you are carrying forward this concept. Sincerely, Victor Regnier FAI ACSA Distinguished Professor Professor of Architecture and Gerontology 37 Iowa City Area Development Croup Extraordinary opportunities in unexpected places. July 14, 2014 Mr. Graves, I would like to provide this letter of support for your proposal to the City of Iowa City for the RFP for the Court / Linn Site. Based on our conversations and your design renderings, I feel your concept could be a very powerful economic tool that would closely align with our collective strategic goals for creating more employment opportunities, attracting and retaining a talented workforce and for positioning The Iowa City Area and the University of Iowa as a powerful global hub for tech entrepreneurship. You have certainly outlined a bold vision with multigenerational aspects in what you have shared with us. The consideration to include affordable housing units also addresses a big need for our communities. We wish you all the best with this proposal and hope to be a resource for its successful evolution should you be chosen by the city to move forward with this project. Best regards,, Mark Nolte President CAD Group Skype: mark.nolte3 Twitter: @marknolte 316 E Court Street, Iowa City, IA 52240 319.354.3939 I owaCityAreaDevelopment.com 38 15. Linn I Court Lofts Court Street / Linn Street Redevelopment Project 15. The identity of any unique resources, capabilities or assets which the proposer would bring to the Project. Apartment for Life Apartments and condominiums developed for senior housing will be uniquely designed and equipped for people to age in place, not requiring relocation. Universal Design and Smart Home Technology Universal design strives for a barrier free environment. Smart home applications use sensors and other electronics to detect when a person has fallen and follow -up with appropriate actions. Research and Learning Relationships The multi - generational housing configuration provides research and learning opportunities for University faculty and students as evidenced by letters from UIHC and University personnel. Local People working Together The development team of CG Hanson, Rohrbach Associates and Calacci Construction are local Iowa City firms bringing local resources to the planning, design and construction of the project. Rohrbach Associates PC is experienced in planning mixed - use development projects for downtown Iowa City, with 'The Chauncey" and in downtown Coralville with the 'Plaza on 6h projects. The development team is experienced working together on developer and public bid projects within Iowa City and the Corridor. The development team has a strong working relationship with the University of Iowa Hospitals and Clinics and Mercy Iowa City. Good Design Practices including Sustainability Building Information Management History: Although the concept of Building Information Modeling (BIM) has existed for many years, it has only recently become a viable production tool for large scale projects. As with most new technologies, it has taken some time to mature and our team is on the cutting edge of its utilization. Approach to BIM: The Design team uses Revit 2014 to develop the building model and Navisworks 2014 for 39 Linn I Court Lofts Court Street / Linn Street Redevelopment Project visualization and clash detection. In addition to modeling three dimensional aspects of building systems, we include increasingly rich data in the models to facilitate the use of design analysis tools. Building Information Modeling represents a fundamental shift in the production of construction documents. The amount of information that can be included in building system models is virtually limitless. We understand that integrating BIM into our practice is not a one -time event, but rather an on -going process. In recognition of this fact, the Design team has dedicated full time staff position to expanding the depth of our building models, developing and maintaining standards and working with other design team partners to coordinate modeling efforts. BIM Experience: Modeling projects in Revit has become a standard in our practices. In the past year, over 80% of our work has been completed using Revit. In addition to using this software on projects where all team members are utilizing BIM, we often use Revit for the MEP portion of projects even when a 3D background model is not available in order to leverage other analysis and production benefits of the software. Rohrbach Associates PC has extensive knowledge in the planning and design for sustainability. Recognition of that fact is that they have obtained LEED certification for the following projects: UI - College of Public Health — Platinum Certification City of Iowa City — Fire Station #4 — Gold Certification City of Iowa City — Fire Station #2 — Gold Certification City of Coralville — Center for the Performing Arts Certified Level UI - Pappajohn Biomedical Discovery Building — Gold Certification pending UI - New West Campus Residence Hall — Silver Certification pending The design team (Design Engineers specifically) has parking ramp design experience: Davenport, IA Block 32 and 46 Ramps Construction costs: $12.2M Size: 193,000 sf University of Iowa Melrose Avenue Ramp Construction costs: $13M Size: 150,000 sf Davenport, IA Police Facility: Construction costs: $20M Size: 38,000 sf City Parking Structure - Ottumwa, Iowa Construction costs: $12.8M Marriott Hotel and Convention Center - Coralville, IA Construction costs: $8.8M Coralville Intermodal Transit Facility - Coralville, IA Construction costs: $11M Size: 153,000 sf 40 1 iRV, HUB AT IOWA CITY IOWA CITY / IA TABLE OF CONTENTS 1) PROPOSAL SUBMITTAL SIGNATURE 2) LETTER OF INTEREST 3) PRIMARY CONTACT 4) DEVELOPMENT ENTITY INFORMATION 5) DEVELOPMENT ENTITY WITH CITY 6) ORGANIZATIONAL CHART 7) DEVELOPER'S PREVIOUS EXPERIENCE 8) DEVELOPER'S FINANCIAL CAPACITY 9) CONSTRUCTION AND FINANCING PLAN 10) PUBLIC FINANCING 11) VISUAL DESCRIPTION OF BUILDING 12) ENERGY EFFICIENCY OF BUILDING 13) LEGAL RECORDS 14) REFERENCES 15) UNIQUE RESOURCES �l II " i � a i i 1 000 O I ... Ass� HUB AT IOWA CITY IOWA CITY / IA v 1 2 3 3 3 7 9 19 21 25 25 35 35 36 37 J +8i ei I,i N A ' I QII4 flllV p, •� I I� HUB AT IOWA CITY IOWA CITY / IA v 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, or 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: Core Campus Investment Partners LLC Home office address: 2234 W North Ave City, state, zip: Chicago, IL 60647 Name and Title of Representative: Name: Marc Lifshin, Manager Signature: 07/16/2014 July 11, 2014 City of Iowa City 410 East Washington St. Iowa City, Iowa 52240 -1826 Re: Private Developer Proposal for the Court St. / Linn St. Redevelopment Core Campus LLC is excited for the opportunity to be involved in redeveloping a high - profile downtown Iowa City site. We have the expertise and experience in developing multipurpose buildings in large university markets. The strong qualifications and track record of success that Core Campus has exemplified through our past and current projects make us confident that we are the best choice to develop a Class A building that will be a vibrant addition to downtown Iowa City. We have spent an extensive amount of time with architects and planners to ensure that our building is aligned with our design intentions and has the appropriate context in its downtown setting. Core Campus will fully implement a multiuse building that will combine retail, office space, and housing for over 900 students and young professionals. The project will meet and exceed community objectives including high tax valuation, high quality architecture, energy efficient building, and the vibrancy that retail and office employees, and over 900 residents will add to downtown. The building's high level of amenities and security will be a unique and important addition to the city's housing. Core Campus LLC maximizes private debt and equity. No incentives or city resources are required. In fact, the city will receive a significant cash infusion from the purchase price paid by Core Campus. Core Campus is committed to providing high - quality student and young professional housing developments that go well beyond the expectations of those residents, universities and other stakeholders within the communities we serve. We create a home that students want to live in and an environment where parents want to send them to, while simultaneously producing an enticing opportunity for businesses and retailers to thrive in the community. We've found that the vibrancy of our buildings and their community is not only desired by students but also by young professionals in their housing search. What differentiates Core Campus from other owners, operators and developers is not simply our ability to target the right opportunities, but the ability to maximize asset value through a comprehensive property management and leasing /marketing plan. We have a robust infrastructure that matches centralized systems, and management expertise with decentralized local operational expertise. Core Campus employs a dedicated, skilled management team with significant experience in financing, acquiring, developing, and managing rental housing communities. We combine comprehensive institutional real estate investment knowledge with local experience and a proven track record. Core Campus has a fresh and progressive approach towards development and promotes eco- friendly features within their buildings. We also understand that there is a delicate balance that must be achieved between forward- thinking design and institutional quality construction to meet the program requirements while remaining within budget. We have formed a development and management team that is not only qualified and capable, but also eager and excited to develop, construct, and oversee this project in downtown Iowa City. Sincerely, Marc Lifshin • PRIMARY CONTACT PERSON AND CONTACT INFORMATION CORE CAMPUS TOM HARRINGTON e TOMH@CoreCamp.us c 217.369.0038 • DEVELOPMENT ENTITY INFORMATION CORE CAMPUS LLC 2234 W. North Ave. Chicago, IL 60647 c 773- 227 -2850 • DEVELOPMENT ENTITY INFORMATION CORE CAMPUS LLC 2234 W. North Ave. Chicago, IL 60647 c 773- 227 -2850 CORE CAMPUS LLC CORECAMPUS I I CORE CAMPUS HOLDINGS LLC MANAGEMENT LLC INVESTMENT+ ASSET MANAGEMENT PROPERTY MANAGEMENT . Investment Management . Operations Management . Asset Management . Marketing +Leasing . Acquisitions and Development Sourcing . Accounting Services . Debt and Equity Structuring . Human Resources+ Staff Training . Preventative Maintenance Core Campus Holdings LLC is a combined entity . Technology Services of Core Campus LLC and DRW Holdings LLC. Al . Dining Services equity is 100% in -house • DEVELOPMENT TEAM - Core Campus Investment Partners LLC MARC LIFSHIN - MANAGING PARTNER - marcl@corecamp.us Marc Lifshin is a managing partner of Core Campus and is heavily involved in all aspects of the development process. His business acumen equips Core Campus with a fundamental aptitude for conducting negotiations and developing investment strategies, but it is his analytical and technical background that provides integral insights into the mechanics of successfully developing and delivering Class -A, institutional -grade assets. Marc's experience with commercial and mixed -use developments across multiple geographic areas has required collaborative efforts with various local governments, neighborhoods and interest groups. This has led to proficiencies in the use of Planned Urban Developments (PUDs), Tax Incremental Financing (TIF) assignments, Long Term Tax Abatements, planning and zoning as well as the coordinated acquisition and assemblage of multiple parcels. BARRY HOWARD - DIRECTOR OF FINANCES - barryh @corecamp.us Mr. Barry Howard manages project financials during construction - overseeing the contracts, orders, invoicing, and draw disbursements. Barry started in management consulting at Accenture, and has brought his operational skills to the construction industry. He has created a portfolio of tools to divide roles and responsibilities and track and manage project budgets during construction. TOM HARRINGTON JR - DIRECTOR OF ACQUISITIONS - tomh @corecamp.us Tom's responsibilities involve the site identification and acquisition process as well as market analysis, due diligence process and entitlement. He has been personally involved in over $600 million in sales, leasing and development projects involving land, office, residential subdivisions, retail, build -to- suits, multi - family and student housing. Tom served as CEO of The Devonshire Group, comprised of 265 employees, 600 independent real estate agents and had annual revenues in excess of $30 million. Devonshire Group provided services such as SECTION 6 ORGANIZATIONAL CHART commercial real estate brokerage, commercial leasing, site selection, and real estate development among many others. ERIC GRIMM - SENIOR DEVELOPMENT MANAGER - ericg @corecamp.us Eric Grimm's responsibilities include coordinating design and construction of new projects, in addition to performing due diligence and analysis on prospective projects. Mr. Grimm brings extensive experience in architecture, construction and development. Since 2005, Mr. Grimm has managed all phases of work in commercial construction and development on projects ranging from $1 million to $300 million. • MANAGEMENT TEAM - Core Campus Management LLC BRIAN NEISWENDER - MANAGING PARTNER - briann @corecamp.us Mr. Brian Neiswender is a managing member of Core Campus, with duties ranging from due diligence to construction to ensure the final product meets Core Campus' unique vision. In addition, Mr. Neiswender oversees project financing and asset management reporting. Core Campus is the second national student housing real estate group founded by Mr. Neiswender, who brings 18 years of management, acquisitions and development experience to the company. Experience that spans over 20 markets and thousands of units. Brian plays an integral role in the entitlement process and works closely with Ben Modleski to devise site level management plans. BENJAMIN MODLESKI - CHIEF OPERATING OFFICER - benm @corecamp.us Benjamin is a partner of Core Campus and oversees the daily operations and management of the entire portfolio. Mr. Modleski has worked with both commercial, conventional multifamily, and mixed -use properties and has nearly eighteen years of experience exclusively in student housing management and operations. Prior to joining Core Campus, Mr. Modleski served as the EVP for Campus Acquisitions where he oversaw a national portfolio of nearly 8,000 beds in 12 student markets spread across 9 states. Mr. Modleski has also held management positions with McKinney Properties, JPI, Inc, College Park Communities, and GMH Associates Inc. SCOTT STAGER - SENIOR VICE PRESIDENT OF PROPERTY OPERATIONS - scotts @corecamp.us Scott Stager oversees the site accounting for Core Campus and is actively involved in the pre - leasing, marketing, and setup of new projects. Mr. Stager has nearly a decade of experience exclusively in student housing management and operations. Prior to joining Core Campus, Mr. Stager held management positions with Campus Acquisitions and Sterling University Housing. He has extensive experience in site accounting, management and training, operational budgeting, due diligence, and financial analysis and modeling. • DEVELOPMENT + EQUITY PARTNER - DRW Holdings LLC DAVID NELSON - SENIOR PORTFOLIO MANAGER, DRW Mr. David B. Nelson is a Senior Portfolio Manager at DRW Holdings, a proprietary trading firm. Mr. Nelson heads the Global Opportunities Group. This entity was created to utilize Mr. Nelson's fundamental skill set in order to evaluate and execute on investments across a global market. In 2009, Mr. Nelson founded and heads DRW Real Estate Investments LLC, a wholly owned subsidiary of DRW Holdings which is the holding company for all real estate investments. Mr. Nelson also runs the Tactical trading book which looks for opportunities in the liquid trading arena including bonds, equities and options. Since founding DRW Real Estate, Mr. Nelson has acquired 40 properties and sold 5 utilizing $210 million of proprietary capital. Prior to joining DRW, Mr. Nelson was a founder of Pentwater Capital, a hedge fund with $1.3 billion of capital where he ran all credit investment strategies. Mr. Nelson has been in the hedge fund SECTION 6 ORGANIZATIONAL CHART and portfolio management industry since 1998. Prior to hedge fund investing, he was a Principal at two Private Equity firms managing over $1.5 billion in equity. DRW has restructured and re- capitalized a large portfolio of 8 properties all with one developer. The ability to react quickly and to work collaboratively allowed DRW to purchase what many consider the most prestigious addresses in Chicago's gold coast neighborhood. DRW has since invested in over 42 properties in Chicago, Aspen, Arizona, Florida, Oregon, Wisconsin, Mississippi and South Carolina. DRW differentiates itself by being nimble and by transacting quickly as it has no outside investors and manages capital and development projects for its own account. Since the formation in 2009, DRW has structured its portfolio around commercial retail projects, hospitality and market -rent apartments in urban markets and for student housing across the country. • EVANS SPILEOS - CONSTRUCTION MANAGER Evans has over 30 years of experience functioning of the Chief of Operations Officer of (3) major national construction firms; Morse /Diesel, currently known as Amec of America, Schal Associates, currently known as Bovis, and Tishman Construction. Evans Construction Services LLC was founded in February of 2004 by Evans Spileos (Manager). The company is made up of 18 highly skilled and specialized construction professionals all of whom have worked together for over the past 115 years. The basis for founding the company was to fill a void in the market place that currently exists with the pre - development, pre - construction phase of the project. Evans Consulting provides top level executive "hands -on" leadership during the pre - construction phase of a project with a strong emphasis on budget estimating, value analysis of major building systems, schedule, and pre - planning for the program. • DESIGN + ARCHITECTURE KAREN HEROLD - STUDIO K DESIGN Karen Herold and her team have designed the interiors and developed the image and concept of each Hub project. Her team brings a discerning taste and international style to the Hub, as well as the various high end restaurants, hotels and spas across the United State and abroad. GRANT BRANDENBURG - WARE MALCOMB Ware Malcomb is an international design firm offering integrated services to clients throughout the world. Founded in 1972, Ware Malcomb offers planning, architecture, interior design, civil engineering, graphic design and sustainable design services to diverse clients. While Core Campus' breadth of experience and focus is in purpose -built student housing and mixed -use developments, it's members have engaged in the every aspect of the real estate sector, across the entire spectrum of specialities. Aside from development, Core Campus and its principals have decades of experience in consulting, acquisitions, facilities management, build -to -suit and other long -term leasing agreements, licensing agreements as well as experience in healthcare, institutional and other university- centered facilities. Core Campus and it's partners and affiliates are dedicated to producing and adhering to economically and ecologically sustainable architecture, design and building practices. This myriad of talents and experience has allowed Core Campus to engage with partners and successfully implement projects in situations that may not normally be considered plausible, but which were carried out to the mutual benefit of all stakeholders involved. �I SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE - PROJECT LIST HUB ON CAMPUS Location: Tempe, AZ Description: Ground up 19 story residential and mixed use tower. Size: 410,000 SF Total Project Cost: $56,000,000 Completed: 8/2013 • HUB AT OXFORD* Location: Oxford, MS Description: 6 residential buildings and an amenity complex. Size: 211,000 SF on 14 acres of Land Total Project Cost: $25,000,000 Completed: 8/2013 • HUB AT COLUMBIA* Location: Columbia, SC Description: Renovation of existing 20 story office building to mixed use residential and commercial. Size: 506,000 SF Total Project Cost: $51,200,000 Completed: 7/2014 • HUB AT TUCSON* Location: Tucson, AZ Description: Ground up 12 story + Penthouse residential and mixed use tower. Size: 300,000 SF Total Project Cost: $47,000,000 Completed: 7/2014 • HUB AT MADISON Location: Madison, WI Description: Ground up 12 story residential and mixed use tower. Size: 500,000 SF Total Project Cost: $102,500,000 Projected Completion: 8/2015 • HUB AT EUGENE Location: Eugene, OR Description: Ground up 13 story residential and mixed use tower. Size: 298,000 SF Total Project Cost: $42,500,000 Projected Completion: 8/2015 - HUB AT TUCSON II Location: Tucson, AZ Description: Ground up 6 story resic tower. Size: 160,000 SF Total Project Cost: $30,500,000 Projected Completion: 8/2016 • HUB AT CORVALLIS Location: Corvallis, OR Description: Multiple residential buil and amenity complex Size: 380,000 SF on 29 acres of land Total Project Cost: $67,500,000 Projected Completion: 8/2016 HUB ON CAMPUS f -H U _ u SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE am TrA Location: Tempe,Arizona Date Completed: Gross Square Feet: Rentable Square Feet: Project Team: • Owner /Developer: • Architect: • Owners Rep: • Contractor: Residential: 211,716SF August 2013 Parking: 76,309SF Retail: 22,000SF 410,OOOGSF Common + Amenity: 67,078SF 211,716 RSF Project Budget: $56,000,000 Construction Costs: $40,600,000 Financing Method: Private Loan Core Campus Hartshorne Plunkard Evans Construction & Consulting Beal Derkenne Construction Key Staff: • Marc Lifshin (Core Campus) - Manager of Development • Eric Grimm (Core Campus) - Project Manager • Evans Spileos (Evans Construction & Consulting) - Owners Rep • Tom Pope (Hartshorne Plunkard) - Architect • Andrew Beal (Beal Derkenne) - Manager of Construction Relevance to This Project: • Large scale, multi -use complex. • Over 250 high -end residential apartments • Commercial along street frontage • Prime location across the street from the University of Arizona's Sun Devil Stadium. SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE - HUB ON CAMPUS is a 19 -story, 269 -unit, 639 -bed, mixed -use student housing development serving the students of Arizona State University, located on the corner of College Avenue and Veterans Way. The key components of surpassing the fierce competition at ASU were to acquire a superior site location, implement smart, urban growth principals and to deliver an unparalleled amenity package to form a development that would benefit the city, students and the school for years to come. By promoting walkability, providing new retail offerings, a superior residential product and reinvigorating the streetscape, Hub on Campus catalyzed growth and density in a previously under - served and under - developed section of the market. The site is situated adjacent to Sun Devil Stadium, bordering the ASU campus and just 200 feet from a light rail transportation spur, providing residents direct access not only to the ASU Downtown Phoenix Campus, but other surrounding metropolitan areas and the Skyharbor International Airport. The epicenter of Tempe's retail, dining and nightlife, Mill Avenue district, is just a few steps from the front door, while the campus lies directly to the south. There is objectively no better location for privatized student housing in Tempe. The Hub promotes sustainability and smart urban growth by delivering the LEED- certified residential housing and retail offerings right across from ASU's Block 12 planned redevelopment site while providing an anchor on which to implement Tempe's Master Plan to revitalize College Avenue. To further align with these interests, the Hub includes a new streetscape, complete with bike parking, updated street lamps, green parkways and new crosswalks. The "V- Shaped" floor plan of the building allows for unrivaled views into the Sun Devil's stadium, the ASU campus, downtown Tempe and the surrounding countryside from each facade, while providing a backdrop to the 30,908 sgft amenity deck on the fourth floor. The amenity deck is situated on top of over 200 car and 300 bicycle parking stalls, accessible only from the rear of the site and hidden by foliage and streetscape. A street - level lobby as well as an on -site management and leasing office is located at the front of the building, facing Sun Devil Stadium and A- Mountain, and showcases the designer finishes and furnishings found throughout. e f _ .SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE Any competitive property will boast long amenity lists, but the fourth floor of the Hub not only houses some of the most substantial and extensive amenities on the market, but the most uniquely and purposefully built, with the style, design and student in mind. Hub Fit Business Hub and Study Center • Two Fitness centers with state -of- the -art equipment • Private conference rooms • Outdoor Synergy360 machine • Modern computer lab • Fitness on Request kiosk and projection system • Outdoor study terrace • Yoga studio • Community "Quiet" study lounge Hub Spa Hub Club lounge • High -end tanning salon • Kitchenette • Steam room • Media wall • Spa Lounge Area • Custom designer sectional and furnishings • Locker rooms, showers and bathrooms • Bar and dining tables • Game tables Just outside the Hub Club lounge and club room is what really separates the Hub's amenity package; a massive 4th floor amenity deck, overlooking the ASU campus, complete with: • Trellis with day beds and hammocks • Sand volleyball court • Fire pit • BBQ stations • Private cabanas with misters, custom sectionals and TVs • Outdoor cabana with ping -gong and billiard tables • Swimming pool • Lounging /layout pool • Custom 40- person hot tub • 22 foot LED TV screen and integrated concert- quality sound system ills SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE Location: Columbia, South Carolina Date Completed: 7 /1/2014 Gross Square Feet: 506,279 GSF Rentable Square Feet: 318,285 RSF kU Residential: Parking: Retail: Common + Amenity Project Budget: Construction Costs: Financing Method: Project Team: • Project Team: Owner /Developer: Core Campus • Architect: Antunovich Associates • Owners Rep: Evans Construction & Consulting • Contractor: Mashburn & Christman Company (joint venture) Key Staff: • Marc Lifshin (Core Campus) — Manager of Development • Ben Angelo (Core Campus) — Project Manager • Evans Spileos (Evans Construction & Consulting) — Owners Rep • Jeff Zelisko ( Antunovich Associates) — Architect • Matt Brownell (Mashburn Christman) — Manager of Construction 318,285SF 34,000SF 24,087SF 149,907SF $42,500,000 $31,750,000 Private Loan Relevance to This Project: • Location in the center of downtown Columbia, SC. • Multi -use building with Residential, Retail, Parking and also Office /Utility space for large regional company, with shared structures with the city, a conference center and a Marriott Hotel. • High -end residential apartments in downtown settings. SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE The Hub at Columbia is located in the heart of South Carolina's capital and towers over the city with its unique design and structure. Core Campus bought the existing Palmetto Building and completely redeveloped and renovated it for top -of- the -line, luxury-style student housing options. The project consists of over 506,279 gross square feet, with 318,000 net rentable square feet of residential units and over 4,000 square feet in total retail and office space. The 20 -story building houses 848 beds in 260 units and quickly leased up to 100% before its opening in August of 2014. The surrounding restaurants and shopping malls in the Vistas neighborhood make it the perfect location for the almost 850 young professionals and student that will reside there, likely leading to a large and much needed economic stimulus to the downtown area. The Hub was engineered to cater to the rising demand in smart and energy efficient buildings to give the entire project a desired and sustainable environment. Core Campus management teamed up with Antunovich Architects and the 555 International designs to bring superior furnishings and finishes that perfectly complement the overall vision of the project. Together, we took the lead in order to facilitate multiple vendor transactions, deliveries, and installations to ensure a flawless opening date with smooth student transitions. Just a ten minute walk from the University of South Carolina's campus, the building boasts a desirable atmosphere that students are eager to live in. The Hub at Columbia offers an exquisite 11th floor club lounge, on -site leasing office, skyline amenity center, fitness room, exterior spa, and steam room. The connected parking garage provides a truly one of a kind experience with a rooftop pool, sand volleyball court, and an enormous 20 foot television all overlooking some of the city's finest architecture. Units are equipped with stainless steel appliances, granite countertops, ceiling fans in bedrooms, compact fluorescent lamps, high quality and modern furnishings, 42" LCD flat screen televisions, XL beds with plenty of storage, private bathrooms with tile floors, and in -unit washers and dryers. The penthouse units on the top floor include hot tubs, pool tables, and vast amount of living space with skyline views. SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE The 11th floor amenity rooms include: The outdoor amenity deck on the garage roof • Kitchenette features: • Media wall • Custom designer sectional and furnishings • Trellis with day beds and hammocks • Bar and dining tables • Sand volleyball court • Game tables • Fire pit • High -end tanning beds • BBQ stations • Steam room • Cabanas with custom sectionals • Spa Lounge Area • Swimming pool • Locker rooms, showers and bathrooms • Lounging /layout pool • Fitness center with state -of- the -art equipment • 20 foot LED TV screen and integrated concert- • Golf simulator room quality sound system • Yoga studio room • Concessions kiosk with bathrooms and changing rooms SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE Location: Tucson, Arizona Date Completed: 8/1/14 (estimated) Gross Square Feet: 300,283 GSF Rentable Square Feet: 202,091 RSF Project Team: • Project Team: Owner /Developer: Core Campus • Architect: Antunovich Associates • Owners Rep: Evans Construction & Consulting • Contractor: UEB Builders Residential: Parking: Retail: Common + Amenity Project Budget: Construction Costs: Financing Method: Key Staff: • Marc Lifshin (Core Campus) — Manager of Development • Chad Matesi (Core Campus) — Project Manager • Evans Spileos (Evans Construction & Consulting) — Owners Rep • Jeff Zelisko ( Antunovich Associates) — Architect • Mike Hurst (UEB) — Manager of Construction Relevance to This Project: • Prime high - density location • Multi -use building with High -end Residential, Retail and Parking Garage. 202,091SF 39,532SF 7,021 SF 51,639SF $47,000,000 $32,500,000 Private Loan SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE Hub at Tucson is a 300,000SF mixed -use purpose -built student housing development serving the the University of Arizona, Tucson. The 12 stories and penthouse include over 7,000SF of first floor retail and contains 594 beds in 164 units. Core Campus worked closely with the City of Tucson as well as neighborhood and special interest groups to create a development that would not only provide high -class architecture and housing for students and young professionals, but provide a high - density economic stimulus to the neighborhood. 6110 01170 0 101 190 : 185100Ing wit to] :1Z: • Private Bedrooms and Bathrooms • Brushed Steel Ceiling Fans in Bedrooms • Fully Furnished with Custom Designed Furniture • Designer Custom Cabinetry in Kitchen and Bath • Upscale Stainless Steel Appliances • USB /Duplex Outlet in Kitchen • Dimmable Fixtures (Living Room and Kitchen) • High -End Plumbing Fixtures including Showerheads with Bluetooth Speakers • Walk -In Shower with Seating and Glass Enclosure* • Wood -Style Flooring • In -Unit Bike Storage ** • Dry Bar with Beverage Cooler* • Keurig Coffee Brewing System • Private Balconies with Breathtaking Views* • Floor -to- Ceiling Low E Glass Windows • Stylish Quartz Countertops • Blackout Shades in Bedrooms 1111N "TUCSON ROOFTOP POOL DECK9W 'MERMPW PZ HUB AT TUCSON RESIDENTIAL UNIT • Porcelain Tile in Bathrooms • Walk -In Closets* • Built -In Organization in All Closets • Custom Roller Shades in Living Room • Insulated Interior Walls • Stackable, Full Size Washer and Dryer • 42" Flat Screen HDTV in Living Room • Cable, Internet and Trash Included in Rent • Furniture Included in the Unit: • Private Bedrooms and Bathrooms • Mounted flat -panel 42" TVs in each living room • Full -sized beds with bed frame • Desk and desk chair • Sectional couch in each unit • Love seat (depending on size of unit) • Side table(s) in living room • Bar stools (depending on size of unit) SECTION 7 DEVELOPER'S PREVIOUS EXPERIENCE COMMUNITY FEATURES • Rooftop Infinity Edge Pool • Rooftop Hot Tub (20 People) • Rooftop Sun Deck with Patio Chairs and Tables, Loungers, Pool Table and Foosball Table • Exterior Terrace with Grilling Area, Fireplace and Seating Area • 22 -Foot LED Outdoor TV Screen • Clubroom with Kitchen, TV and Gaming Area with Pop a Shot, Pool Table and Shuffleboard • State of the Art Fitness Center Featuring Fitness on Request/Yoga Studio • Relaxing Spa Featuring Sauna, Steam Room and Tanning • Outdoor Sand Volleyball Court • Trellis with Hammocks, Misters and Outdoor Seating • Spacious Study Rooms Perfect for Individual or Group Work • Scholarly Floors with Controlled Elevator Card Access • Executive Business Center with Macs, PCs and Printers • Building -Wide Secured High Speed WiFi • Gated Private Parking with Secured Roll Down Door, Bike Storage and Self- Service Car Wash Station • Controlled Access to Building • Lifestyle Features: • Walking Distance to the University of Arizona and University Avenue • On -Site Professional Management Core Campus LLC's partners have developed over $1.3 billion of real estate over the past decade and Core Campus currently owns $500m of properties throughout the United States. Core Campus LLC has revenue from a variety of sources including development work, general contracting, income from properties, and management of properties. Core Campus LLC has strong equity positions in all Core Campus projects. Core Campus' financials are managed by a diverse team estate and accounting professionals. The Core Campus internal development team oversees development and construction budgets and project draws throughout construction. Core Campus has real estate professionals with finance, construction management, and accounting backgrounds. Core Campus projects are managed by Core Campus Management, a wholly owned Core Campus LLC entity. Core Campus Management is responsible for property leasing and revenue generation, property management, and management of operating expenses. The Core Management team has managed over $1.5 billion of real estate properties and currently is managing the $500m of Core Campus properties. Core Campus has a long -term partnership with DRW Real Estate (DRW), a large real estate investment and development firm based in Chicago. DRW is responsible for financing Core Campus projects and providing a portion of equity. The DRW team consists of a principal with over $2 billion of real estate development experience, and support analysts including a certified public accountant and a construction financial analyst. Outside of the Core and DRW development partnership are professional real estate accountants and consultants. Core projects accounting is handle by YG Financial, a full service accounting firm that Core Campus partners have worked with for over 10 years. The Core and DRW partnership is consulted by a Price Waterhouse Coopers real estate accounting team and Roberts, McGivney, and Zagotta LLC, a legal firm with strong real estate transaction and accounting experience. Core project financials are circulated monthly by YG Financial and reviewed and approved by both Core Campus LLC and DRW Real Estate. Core Campus and DRW work with YG Financial on all entity tax returns and DRW Real Estate's internal accounting department provides additional review. SECTION 8 DEVELOPER'S FINANCIAL CAPACITY BMO ® Harris Bank A pan of BMO Financial Group July 11, 2014 Mr. Marc Lifshin Managing Principal Core Campus 2234 West North Avenue Chicago, Illinois 60647 Commercial Real Estate 111 West Monroe Street Chicago, IL 60603 Re: Proposed development for the Court St. /Linn St. Redevelopment Site, Iowa City, IA Dear Marc, Pursuant to your request, BMO /Harris Bank N.A. ( "Bank ") is pleased to present this letter of interest indicating the Bank's willingness to possibly providing a construction loan for the above referenced property. This opportunity would continue our relationship that we have established in providing financing for two of your current projects that are located in Tucson, AZ and Madison, WI. We have received certain information from you regarding this project and we look forward to providing a comprehensive competitive construction loan proposal at the appropriate time. This letter is for discussion purposes only and should not be construed as a formal commitment to lend by Bank. Final approval of any request for credit is subject to approval by the credit committee of Bank and is subject to the completion of customary due diligence including but not limited to the review and approval of final plans and specifications, permitting, budget, environmental assessments, appraisal and pro forma operating statements. Sincerely, BMO /Harris N.A. "V ✓lY'� yLtN�- William J. Schlesser Senior Vice President. BMO Ha,nz Bank N A. SECTION 8 DEVELOPER'S FINANCIAL CAPACITY PNC July 10, 2014 City of Iowa City 410 East Washington Street Iowa City, IA 52240 -1826 PNC Real Estate One North Franklin Street, Suite 2150 Chicago, IL 60606 P: 312384.4628 E: tracy.larrison@pnc.wm Tracy S. Lamson Senior Vice President RE: Private Developer Proposal for the Court St./Linn St. Redevelopent Site Dear Sir or Madame: With respect to the above - referenced project it is my pleasure to provide this letter for you to use for any party seeking references for Core Campus. PNC confirms that Core Campus has maintained an excellent relationship with the Bank for approximately three years and has been provided approximately $60 Million of credit facilities to date on projects located in Mississippi and Oregon. All of the loan facilities have been handled as agreed and all aspects of each project have been handled with the utmost of integrity and professionalism. PNC is one of the largest and most active Commercial Real Estate lenders in the country and has experience in all property types including complex mixed use developments. The Bank is confident the development team could execute a highly successful development and PNC would be interested in providing development financing. Please contact me if you have any questions or require other information. Best Regards, racao s Za -tl�nr Tracy S. Larrison Senior Vice President Core Campus is a company whose Principles staff have over half a century of combined experience developing and managing student housing. We have experience in several top markets throughout the country, with projects totaling over 12,000 beds. Our services include acquisitions, development and in -house management. Since our development services are in- house, we are able to work strategically with our management team to develop and build a product tailored to the needs and desires of the local markets that we invest in. Furthermore, our in- house management team allows us to implement a strategic leasing plan with the ability to quickly adapt to the changes in the market. Core Campus strives to be the pioneering developer in each market we target. Core Campus has a robust infrastructure that matches centralized systems and management expertise with decentralized local operational expertise. Core Campus employs a dedicated, skilled management team with significant experience in financing, acquiring, developing, and managing developments. We combine comprehensive institutional real estate investment knowledge with local experience and a proven track record. We are committed to providing high - quality developments that go well beyond the expectations of the residents, universities and other stakeholders within the communities we serve. What differentiates Core Campus from other owners, operators and developers is not simply our ability to target the right opportunities, but the ability to maximize asset value through a comprehensive property management and leasing /marketing plan. In -house development enables Core Campus to work strategically with the management team to develop student housing tailored to the needs of the local markets. In -house management allows Core Campus to develop strategic leasing plans that have the ability to quickly adapt to the changes in student preferences. Having both development and management in -house allows Core Campus to design the property management plan specifically to the market and the building. The coordination between Core Campus Management and Core Campus Development starts early in the planning process long before construction begins. It continues with staffing at the site level to build a brand through marketing resulting in a strong lease up during construction. As a development nears completion, local staff works with Core Campus on punch list items and lead the push to bring the job to a positive close. All the above help ensure a seamless transition from construction to operations. Additionally, the Company's accounting services are provided by a third -party accounting firm, YG Financial Group, which has extensive experience in student housing assets and which delivers best -in -class reporting to support the management team. Quality management is not just report focused on achieving budgeted goals but also on the satisfaction of our residents. While high occupancy is key metric in determining resident and parent satisfaction with our property and management, we also conduct periodic surveys of our residents. These surveys no only help remedy and correct concerns the students may have but they also help management in the implementation of new policies and procedures nationally. Core Campus Development facilitates an efficient, defined process for bringing first -class product from start to finish, including asset underwriting and financial feasibility analysis, economic impact analysis, concept design and development, entitlements and due diligence, contract negotiation and purchasing, construction management and delivery/turnover of the final product to market. Thorough, upfront attention to detail enables Core Campus Development to deliver on projects that provide strong, predictable returns in a variety of real estate markets over a number of asset classifications. .SECTION 9 CONSTRUCTION AND FINANCING PLAN Core Campus Management contains specialized operating systems that sets us apart from the competition and is one of the reasons we fully lease up our projects year after year. Our comprehensive management program includes all aspects of initial operations, corporate support, and expertise in the following areas: • MANAGEMENT PROCESS • Marketing and leasing • Business administration • Facilities maintenance • Information technology management • Customer service tracking • Accounting services • Asset management and financial consulting • Human resources and staff training • Risk management • Dining services • MARKETING • Identification of target market, appropriate messages, media availability and plan execution timeline • Development of marketing budget • Competitive analysis • Rental rate recommendations • Project logo, branding concepts, collateral marketing materials and lease documents • Signage packages • STAFFING • Recruiting, hiring, and training property -level staff • General manager, assistant general manager, resident director and resident assistants • Business and leasing staff • Maintenance staff • Corporate support and supervision • OPERATING • Comprehensive management plan development includes the following: • First -year operating budget • Marketing plan • Capital plan • Physical set -up of administrative and leasing offices • Physical set -up of model unit • Utilities set -up • Monthly management and initial lease -up meetings SECTION 9 CONSTRUCTION AND FINANCING PLAN - B: GENERAL SCHEDULE FOR COMPLETION ID 1 ask 8 Motle ® a a a ® a ask Name REP Process Submit RFP RFP Selection Process (estimated) Finalize with City of Iowa City (estimated) Due Diligence & Financing Site Due Diligence Secure Financing Architecture & Engineering Schematic Drawings Design Development Permit Drawings Construction Drawings Construction Administration Permitting Subm it for Perm it pectin creep Obtain Permit Construction Bid to Co ntracto rs Contract Pre Construction Construction llurabon Start Fn lm Foods 121 days Wed 7/16/14 Wed 11 /31 /lr 1 day Wed 7/16/14 Wed 7/16/14 60 days Thu 7 /17/14 Wed 10/8/14 2 60 days Thu 10/9/14 Wed 12/31/143 120 days Thu 1/1/15 Wed 6/17/15 60 tlays hu 1 /1 /15 Wed 3/25/15 4 60 tlays hu 3/26/15 Wed 6/17/15 6 817 days Sun 6 /1/14 Mon 7 /17 /17 151 days Sun 6/1/14 Fri 12/26/14 60 days Thu 1 /1 /15 Wed 3/25/15 9,4 60 days Thu 3/26/15 Wed 6/17/15 10 60 days Thu 6/18/15 Wed 9/9/15 11 08 days Thu 12/24/15 Mon 7/17/17 21SS 61 days? Thu 6/18/15 Thu 9/10/15 60 days Thu 6/18/15 Wed 9 /9/15 11 1 day' Thu 9/10/15 Thu 9/10/15 15 543 days Thu 6/18/15 Mon 7 /17 /17 45 days Thu 6/18/15 Wed 8 /19/1511 30 days Thu 8/20/15 Wed 9/30/15 18 60 days Thu 10/1/15 Wed 12/23/1519 08 days Thu 12/24/15 Mon 7 /17 /17 20,16 Half22 S O 2 3 4 5 6 7 8 D 1 2 h 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Occupancy 0 days Mon 7/17/1 Mon 7/17/17 21 Project Sectionib_Construction Date :Fri 7 /11/14 Task split ��. . .. . . Milestone ♦ Summary Project Summary External rocks External Milestone ♦ .�� Inactive Task Inactive Milestone Inactive Summary Manual Task Duration only O Manual Summary Rollup Manual Summary Start only C Finish only 3 Deadline 1 Progress Page 1 • C: GENERAL FINANCING PLAN D14 HaIf12D15 HaIf22D15 HaIf12D16 HaIf22D16 HaIf12Dll H NDIF AMIIASONDI FMAMI IASONDIF AM11 Financing for this project would be secured through commercial lender. Please reference Section 8 for additional information regarding Core Campus' history with commercial lenders. Core Campus has a long-term partnership with DRW Real Estate (DRW), a large real estate investment and development firm based in Chicago. DRW has provided a portion of equity on all Core Campus projects to date. • D: MARKETING APPROACH Our primary goal is to create an innovative branding and marketing campaign for our Hub product. We bring a creative, innovate edge to our marketing and advertising campaigns that is aligned with the positioning and quality of our product. Our marketing efforts begin in our pre-development phase. During this initial phase we identify the target market, research the appropriate messages to the target market, research the media availability and begin formulating our full marketing campaign. We have found that students are linked together through a strong network of social media and digital communication. Peer to peer influence is key to where they choose to live. Being part of that conversation is a key to running a successful marketing campaign. We focus primarily on the following topics: SOCIAL MEDIA • Develop and execute rich social content SECTION 9 CONSTRUCTION AND FINANCING PLAN • Expand leasing technology and resident engagement to Facebook • Host resident contests via social media • Become an active voice on the university's social media platforms WEB MEDIA Design and develop a branded Web site to serve as an online hub for Hub residents and prospects, specifically: • Integration with an online leasing portal • Virtual tour interface • Social media integration • Events calendar • Online lease and utilities management for current residents • Privatized residents' forum and community features PRINT MATERIAL • University Newspaper • University Alumni Magazines and Publishing's • Local Newspaper • Campus Guide Books • Student Organization Guides • University Coupon Books LOCALIZATION • Co -brand with local businesses to provide students with exclusive offerings • Partner with student organizations to establish brand recognition among close -knit groups of peers • Support local charities or service projects on behalf of the student body PROMOTION • Offer referral incentives • Exclusive events for residents and friends and family • Incentivize early, repeat, and long -term leases • Appoint resident ambassadors to attract new and return leases and volunteer as model units EVENT ACTIVITIES • Sports events: volleyball, basketball, sandbag toss, billiards, ping -gong, etc. • Tailgating parties • Pool party /cook -out • Food cart courts at leasing office lot • Best of college movies marathon (projected on additional outside screens with no sound for visual interest) • X- Box/Play Station on -site gaming trailer and competition. • E: PROPOSE PURCHASE PRICE Core Campus proposes to pay a purchase price of $4,500,000 less customary prorations in cash at closing. Core campus will not require a financing contingency. Core Campus is not seeking any financial incentives from the city. The combination of cash proceed to the city and no requirement for use of city resources while producing a high tax value parcel is an outstanding result in maximizing the city's return on an underutilized asset. Core Campus and it's affiliates do not intend to use any public financing at this juncture. • DESIGN NARRATIVE For this mixed -use project - a luxury residential building with 20,000 sf of office space - we started off by creating a massing study to assign volumes and locations of spaces with similar functions. The office component is located to north of the site to provide an active use along the major street frontage (Court Street) on the two lower floors. Since there is a significant slope to the site we are proposing to provide an outdoor light well for the lower level of office space along Court Street. The office space has prominent street corner visibility at the intersection of E Court Street and S Linn Street with its own entrance canopy feature. Along the street frontage of the secondary street (Linn Street), we have located the various residential amenity spaces to provide additional active uses along the eastern frontage of the building with an access point to the integral parking structure at the southern end. The parking structure can also be accessed on the 2nd level from the alley on the west side of the site. On the 3rd floor, the main mass of the residential building is set back 10' from the lower to levels to provide privately landscaped roof terraces for the units on that level. The floor plates then form a "C- shape" to enclose the parking garage within the building development on the lower levels. The garage exterior is screened by a "green wall" system along the west face of the building up to the 6th floor, where a luxurious private outdoor landscaped space for the residents sits atop the parking garage. VISUAL DESCRIPTION OF Above this level, the geometry of the residential plan takes on an "E- shaped" configuration that provides expansive views to the west overlooking the nearby river and university campus. The uppermost floors feature (3) large outdoor 'sky decks' facing the west. The exterior building massing has repeated elements of protruding rectangular shapes and recessed planes throughout the facade that create volumes to function as balconies and sun shading devices. F These elements take on a playful puzzle -like nature with tone -on -tone color accents as they are rotated around the building both vertically and horizontally, similar to a rubik's cube. A stone -clad base at the lower (2) levels anchor the 15 -story building to the site at street level, while aligned vertical elements provide emphasis to the street corner that is wrapped by a thin horizontal canopy that serves to visually tie the various uses of the development together at the pedestrian level. ■ IM wION 11 VISUAL DESCRIPTION OF BUILDING • PROJECT POSITIONING AND GENERAL DATA PROJECT DATA SITE AREA 1.30 AC (60,000 SF) ZONE: CB-5 BLDG SETBACK Z MIN 8' MAX STORIES: 8 (15 vd BONUS) 10' FACADE SETBACK AFTERSi6 FL 20,000SFOFFICE 30% MAX 3 BDRM NO PARKING 1x130' ALONG ST. MAX NON -RESI. PARING 1I500SF BUILDING AREA 611.655 BE PARKING READ: 1 BRDM- 0.5SPACESh1NIT 2BDRM- 1SPACEAINIT 3BDRM- 2SPACESh1NIT UNITS vs PARKING: 113DRM- 150'0.5- 75PKNG 213DRM- M- 1.0- 172PKNG 3 BERM - 108.2.0 - 216 PKNG TOTALS- 818 DEEM & 453 PKNG PARKING PROVIDED: RESIDENRAL: 483 STALLS OFFICE: 34 STALLS (1.]11000 SF) TOTAL: 497 PARKING STALLS N' PROPOSED SQUARE FOOTAGES AND UNIT MIX TOTALBEDS 818 TOTAL UNITS 430 Parking Provided 1 Basement 1 1st 12nd 13 rd 14th 15th 16th 17th I 8th I 9th 1 10th I 11th 112th 13th 114th 115th 1TOTAL stalls 1 691 88 1 85 1 86 1 86 1 83 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 497 Note: Parking is not required for non - residential uses in CB -5 zoning district, but if provided can be no more than 1/500s1 (office - 20,000sf / 500sf - 40 stalls max) Total Bldg Are total residential area Area 331,587 sf N of units per floor units /stalls 430 avg sf /ea ]]1 Bdrms/ Unit Avg. Area Basement 1st Bud 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th total units %of total units 1 475 sf 0 0 12 6 6 6 12 12 12 12 12 12 12 12 12 12 150 34.88 2 800 sf 0 0 2 10 12 10 14 14 15 15 15 15 15 15 10 10 172 40.00 3 1075 sf 0 0 4 4 4 4 8 6 11 9 11 9 11 9 12 6 108 25.12 TOTALBEDS 818 TOTAL UNITS 430 Parking Provided 1 Basement 1 1st 12nd 13 rd 14th 15th 16th 17th I 8th I 9th 1 10th I 11th 112th 13th 114th 115th 1TOTAL stalls 1 691 88 1 85 1 86 1 86 1 83 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 497 Note: Parking is not required for non - residential uses in CB -5 zoning district, but if provided can be no more than 1/500s1 (office - 20,000sf / 500sf - 40 stalls max) Total Bldg Are total residential area Area 331,587 sf %of net bldg 85.26% units /stalls 430 avg sf /ea ]]1 total parking area 182,074 sf 25' 2 800 sf total amenity 13,042 sf 3 n/a 43' total common/mil 50,137 sf - totalstairs /elev /trash 14,600 sf n/a total office 20,215 sf 611,655 sf 388,933 sf Bdrms/ Unit Avg. Area W D 1 475 sf 19' 25' 2 800 sf 32' 25' 3 1075 sf 43' 25' .SECTION 11 VISUAL DESCRIPTION OF BUILDING Space Area (sf) % /flr office 0 residential 24,720 85.77% amenity 432 parking 0 - common /util 2,750 stairs /elev /trash 920 L office 28,822 0 residential 24,720 87.07% amenity 0 0 28,833 parking 0 -_ common /util 2,750 stairs /elev /trash office 920 28,390 0 residential 28,833 87.21% amenity 216 87.21% parking 0 ._ common /util 3,092 stairs /elev /trash 920 office 33,061 0 residential 28,833 87.21% amenity 216 office residential parking 0 -_ common /util 3,092 stairs /elev /trash office 920 33,061 0 residential 28,833 87.21% amenity 216 920 28,606 0 24,720 parking 0 common /util 3,092 stairs /elev /trash 920 L 33,061 Space Area (sf) % /flr office 0 residential 28,833 87.21% amenity 216 0 3,092 stairs /elev /trash 920 TOTAL 33,061 office residential 0 28,833 87.21% amenity 216 parking 0 : common /util 3,092 stairs /elev /trash office residential 920 0 28,833 87.21% amenity 216 parking 0 :ommon /util 3,092 stairs /elev /trash 920 TOTAL 33,061 office residential 0 24,450 85.47% amenity 216 parking 0 : common /util 3,020 stairs /elev /trash office residential 920 28,606 0 24,720 86.42% amenity 216 parking 0 common /util 2,750 stairs /elev /trash 920 TOTAL • I 28,606 611,655 VISUAL DICRIPTION OF BUILDING • BASEMENT AND FIRST FLOOR PLAN SOUTH LINN STREET E- w w H E- E- 0 O o H Lo U) LU w OFFICE 19,292 SF FLOOR 1 2 U W L_.� F_J 1 COMPUTER FITNESS SALES CLUB ROOM LOBBY 1363 SF CENTER 1363 SF 1271 SF 814 SF 3159 SF RAMP UP \ / i RAMP ON 390' PUBLIC ALLEY (ABOVE) Y� m� STOR SPA z 899 SF 0 88 STALLS ~ RAMP UP \ / i RAMP ON 390' PUBLIC ALLEY (ABOVE) Y� m� STOR wION 11 VISUAL DESCRIPTION OF BUILDING FLOOR 2 + FLOOR 3 1. 10' FLOOR 3 370' 10' , FLOOR 390' PUBLIC ALLEY LEVEL Y, I I 2BR ROOFTERRACE I I I I I 2BR 2BR 1BR 1BR OPEN TO 1BR 1BR I 2BR I I 2BR 2BR I 3BR BELOW I 3BR IF. _ - _y. _ - y. __. - 1 _. _1. -1._. i. -y. _ - y. __. i. __. - i6R 1BR w 86 STALLS w r co O 2BR 2BR r O I � RAMP UP / RAMPDN _TI 36R I 36R 2BR 2BR 10' FLOOR 3 370' 10' , FLOOR 390' PUBLIC ALLEY LEVEL Y, SECTION 11 VISUAL DESCRIPTION OF BUILDING FLOOR 4 + FLOOR 5 BALCONY ,i 2BR 26R 26R 36R 36R iT OP NTO 3BR 3BR 2BR 2BR 26R 3BR BELOW I 3BR _ - _ - _ y.___. _. . -i.._ y. ___. _ y.___. _..y. IRE 1RR 2BR 2BR 2BR 3BR ISE IBR 3BR 2BR 2BR 2BR 3BR I OPEN TO 3BR M IF. BEIjOW I y.______ - y.___i.___ 3BR 2BR ISE B LO 1BR 26R 36R __— ----- - 2BR 6R 2BR . __..1 2BR IBR IBR �F____ (V) r IBR I F. - - - -.i I IBR TER ISE 370' ' L 3BR 3BR 2BR 2BR FLOOR 7 Nv li li ,I li li 2BR 2BR 2BR ISE ISE 2BR 2BR ISE 11 ISE 2BR 2BR 2BR 3BR I Ir 2 _2- STORY I 3BR F.------ i..------ y ------ . . -i.. --- y. ------ y. ------ .. y. ------ . 2BR li 2BR li 2BR li IBR li ISE IBR li IBR 2BR li 2BR li 2BR 3BR I I I 3BR 3BR I 3BR IF. y.______ - ------ y. --- i.---- 2STCRYI2STCRY ___y. ______i _. y ------ _ -T F— Fcaxwy T BE 2BR 3BR ISE 2BR 3BR 2BR 2BR - 2BR 'I. - __ RAMPUP / TRAMPDN ___ _i 2BR 36R IBR (V) IBR F. -. _ - - - -.i IBR 18R CO ER O IBR i OUTDOOR 4860 SF OUTDOOR F - L CW C v R O iF 5 7 BE 370' B OR5 3BR VIEWS TO MVERC PUS 3BR 2BR & FOOTBALLSTRDIUM 26R FLOORS 370' SECTION 11 VISUAL DESCRIPTION OF BUILDING FLOOR 6 + FLOOR 7 FLOOR 7 260' 553 j 2BR 2BR 2BR 3BR 3BR I 3BR TER 2BR 2BR 2BR 3BR 3BR 3BR 2- STORY 2 -STORY 2BR 2BR 3BR 3BR 3BR I L 3BR 2BR FLOOR 6 3BR I 2BR I 3BR OUTDOOR COURTYARD R175SF COVERED PAT" a C8805F o VIEWS TO RIVER, CAMPUS & FOO�ALL STADIUM 3BR I 2BR I 3BR OUTDOOR COURTYARD R175SF 3BR 2BR 2BR 6R E0 F � 3BR 3BR I 3BR 2BR I wION 11 VISUAL DESCRIPTION OF BUILDING BALCONY FLOORS 8 -13 TYP. 6R 2BR 2BR 213R 1BR 1BR 3BR 3BR 3BR 3BR i OPED TO I I i y - -y. _ BALCONV 1BR I I I 2BR li 2BR 1BR 1BR - - Fcunw 1BR 1BR 2BR li 2BR li 2BR 3BR I 3BR II. 2BR iBR 2BR 3BR OPL BR 3BR I�F BEI W M 2BR r i6R l - - - - -L Who i6R II J _ - J I I 3BR 2BR 'IBR OPENTO OPENTO BELM BELOW 36R 'I 2BR 36R h 2BR 2BR 2BR IIF - - -- -j 2BR zo iBR 1BR (Y) 16R I IF - - - -_ 36R 36R -i I i6R iBR 1BR I!T_ 3BR I 3BR 2BR 3BR 2BR 2BR FLOOR 11 103' 55' 102' 55' 79110Z01:iCmo110Z01:i!i FLOOR 15 i[IPA l.'i.'il iBR iBR I 2BR 2BR 2BR 36R y. y L ___------- .1______ iBR T 2BR 3BR Ih `101A 2BR 2BR 2BR iBR iBR iBR iBR BALCONY 2BR III 6R 2BR 2BR 213R 1BR 1BR 3BR 3BR 3BR 3BR i OPED TO y. y - -y. _ 1_____. 1BR BELM 3BR - - Fcunw 3BR 2BR iBR 3BR II. 2BR iBR 2BR 3BR BR I�F 2BR i6R -T - - - - -L i6R O IF_____ i6R OPENTO OPENTO BELM BELOW __ - -. 3BR iBR 3BR 36R IL. 16R OPEN TO OPENTO I 2STORY II II 2-STORY BELOW I. BELOW FLOOR 15 i[IPA l.'i.'il iBR iBR I 2BR 2BR 2BR 36R y. y L ___------- .1______ iBR T 2BR 3BR Ih `101A 2BR 2BR 2BR iBR iBR iBR iBR I 2BR 2BR 2BR III 6R 3BR I 3BR 3BR O 3BR i - - -y. -y. y. 1BR y. y - -y. _ 1_____. 1BR 3BR MII 2BR 2BR 2BR iBR iBR iBR iBR I 2BR 2BR 2BR III 3BR I 3BR 3BR I 3BR i - - -y. -y. y. 2STORY12STORY y. y - -y. _ 1_____. 3BR 2BR iBR iBR 2BR 3BR 26R 2BR i6R i6R O i6R 3BR 36R 16R 2STORY II II 2-STORY 3BR iBR IIL 1BR 3BR 3BR 3BR J 2STORY 2-STORY OUTDCCR SKYp K SKY BECK DEECCK J.SE 1C BE o iC%SE o, N FLOOR 14 102' 0 55' , 102' 0 55' WION 11 VISUAL DESCRIPTION OF BUILDING • MASSING STUDY lvlu�wlly v uw lluill lm� ------------ L- - - - - -- Massing View from SW Core Campus typically strives to achieve LEED certification for its Hub projects. To achieve LEED Core typically focuses on a multitude of different Design and Construction credits, which vary from job -to -job. High efficiency mechanical systems are just one key element of Core's green buildings. In the last such systems have included a central plant with chillers which cycle cold water through a 2 pipe system to individual fan coils located in the residential units, common areas and retail spaces. Heating is provided by electric reheat coils located with the individual fan coil units. This system exceeds the underlying energy code and is capable of attaining additional LEED points for LEED projects. Incorporation of recyclable materials, use of sustainable and local materials, and energy efficient fixtures are also a part of Core's standard design practice. None of the principals, development entities, or members of the development team have ever been charged with or convicted of a felony nor has there been any litigation involving the principals, development entities, or members of the development team during the past five years. • BRUCE WALDEN - Director of Real Estate Services, University of Illinois 506 S. Wright St, Suite 208 Urbana, IL 61801 (217)244 -8496 bwalden @uillinois.edu Core Campus Relationship Contact: Tom Harrington • GARY ANNA - Vice President for Business Affairs - Bradley University Swords Hall 207 Peoria, IL 61625 (309) 677 -3150 gma @bradley.edu Core Campus Relationship Contact: Tom Harrington • OSCIE BROWN - General Manager Communication Services - SCANA (Regional Utility) Building B 100 Scanna Parkway Cayce, SC 29033 (803) 360 -8807 obrown @scanna.com Core Campus Relationship Contact: Tom Harrington • DR. FLOYD HOELTING - Executive Director of the Division of Housing & Food Services, University of Texas University of Texas at Austin H and F Division Office PO Box 7666 Mail code El 800 Austin, TX 78713 (512) 471 -8631 fl:L)ydh@austin.utexas.edu Core Campus Relationship Contact: Ben Modleski • STEPHANIE SALAZAR - Director, Local Community & Government Relations - Arizona State University 6027 South Sagewood Ironwood Building Mesa, AZ 85212 (480) 727 -0656 Stephanie.Salazar @asu.edu Core Campus Relationship Contact: Ben Modleski • CORE CAMPUS Core Campus is primarily a student housing provider and employs its resources to acquire, develop and manage all of its properties internally, and the principals of this group have considerable experience with similar developments in other markets. Over the past four years, Core Campus has been involved in acquisitions and /or development of approximately $1.3 billion of student housing assets, involving over 12,000 beds in a number of university markets, including but not limited to: University of Texas, University of Arizona, Arizona State University, University of Illinois, University of Mississippi, University of Oregon, University of South Carolina and the University of Wisconsin Madison. Core Campus was formed in 2010 with a fresh and progressive approach towards development, mainly focusing on mixed -use student housing developments. Core Campus identifies market needs and develops well thought out floor plans and amenities that provide tenants with the best possible place to live, work and succeed. Core Campus Management was formed shortly after Core Campus Development in 2010. Core Campus Management prides itself on its ability to follow through and strives to provide its tenants with the best possible building management available, but providing first -class service, which starts with its first -class staff. Core Campus specializes in acquisitions, developments and in -house management, working strategically with our management team to develop and build a product tailored to the needs and desires of the local markets where we invest. Furthermore, our in -house management team allows us to implement a strategic leasing plan with the ability to quickly adapt to the changes in the market Core Campus strives to be the pioneering developer in each municipality we target, so that our name is the first thing students, tenants, and universities think of when they are looking for innovative first -class projects. Core Campus Development is based on out Chicago, Illinois. The firm has 10+ key people, including the managing member, several development managers, accounting, and administrative support staff. All phases of development run out of the Chicago office. Core Campus Management is based out of Austin, Texas. Core Campus Management employs over 60 professionals throughout the country that range from Chief Operating Officer to local property managers and support staff. Every Core Campus managed project is staffed with several full time staff including managers, engineers and additional support/leasing staff. • AWARDS - HUB ON CAMPUS Student Housing Business (SHB) Innovator Award for Best New Development Greater Than 200 Beds 2014 Student Housing Business (SHB) Innovator Award for Best Architecture Greater Than 200 Beds 2014 Engineering News Record (ENR) Best Residential /Hospitality Project Southwest 2013 Real Estate & Development (RED) Best Multifamily Project Greater Than 250k SF 2014 ILI LEI ll; '' J 14141:1`; L'IJ l zl i I L -ailtl 14I_L'I 11' Ni ra Nk,bM' U r wqw Coun Redevelopment Proposal Sherman Associates Content Section Proposal Submittal Signature Form .................................................... ..............................1 SignedCover Letter ............................................................................ ..............................2 Contacts............................................................................................. ..............................3 DevelopmentEntities ......................................................................... ..............................4 ContractEntities ................................................................................ ..............................5 OrganizationalChart .......................................................................... ..............................6 Experience......................................................................................... ..............................7 FinancialCapacity .............................................................................. ..............................8 ProjectNarrative ................................................................................ ..............................9 Financial Narrative (Sources & Uses) ................................................. .............................10 VisualDescription ............................................................................. .............................11 EnergyEfficiency ............................................................................... .............................12 Litigation........................................................................................... .............................13 References........................................................................................ .............................14 Unique Resources, Capabilities & Assets ........................................... .............................15 11 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, or 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 Associates Inc. Home office address: 233 Park Avenue South, Suite 201 City, state, zip, Minneapolis, MN 55415 Name and Title of Representative: Name: George Sherman Signature: Date: 07/15/14 19 2 F&sherman ASSOCIATES July 15, 2014 City Clerk City Hall 410 East Washington Street Iowa City, Iowa 55240 Re: Sherman Associates Proposal for the Court St /Linn St Redevelopment Dear Iowa City Staff, Sherman Associates and our development partners are pleased to submit the enclosed proposal for redevelopment at South Linn Street and East Court Street. The enclosed materials demonstrate our team's mixed use and urban infill experience. It shows our ability to deliver a product that is in line with the city's goal of an urban, downtown - density development. We propose to develop the site into three distinct yet interconnected uses. We would develop 91 market rate residential units, a nationally branded 146 key hotel and 23,000 square feet of flexible office space. The development would include 329 structured parking stalls, to serve the needs of the site. Sherman Associates and associated entities would be the long term owner and operator of all components of this development. This development would bring street level vibrancy and vertical development to the area. Our team possesses three key competencies that will enable us to deliver this product on time and on budget: • Effective Public- Private Partnerships: 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. • Thoughtful Design and Quality Construction: The development team has experienced design and construction professionals on staff to ensure quality and timely delivery. Effective communication with stakeholders allows us to create innovative and aesthetically appealing building while ensuring that budgets are held. • 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 Linn & Court Street project. The development team is excited about the possibility of partnering with Iowa City to develop this underutilized parcel into one 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 review process. Sincerely, George Sherman President Sherman Associates, Inc. 233 ParkAvcnue South, Suite 201, Minneapolis, MN 55415 Tel: 612- 332 -3000 Fax, 612 - 33'2-81 19 • www.sherman- associales.com Shxmnnn Assocfne,s is on Equol Opportunity Employer 3 Sherman Associates, Inc. 233 Park Avenue South, Suite 201 Minneapolis, Minnesota 55415 Phone: 612.332.3000 Fax: 612.332.8119 PRIMARY CONTACT 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. ADDITIONAL CONTACTS George Sherman, President /Owner 612.332.3000 1 Bsherman @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. 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 19 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. I DQ�Q�opc Q�� EMORoQO Sherman Associates, Inc. 233 Park Avenue South, Suite 201 Minneapolis, Minnesota 55415 612.332.3000 George Sherman: 100% owner Sherman Associates Development LLC 233 Park Avenue South, Suite 201 Minneapolis, Minnesota 55415 612.332.3000 George Sherman: 100% owner Craftsman Construction, Inc. 233 Park Avenue South, Suite 201 Minneapolis, Minnesota 55415 612.332.3000 George Sherman: 100% owner To be formed single asset entity 5 C:1 UTIBRU architects ARCHITECT LMARK SWENSON Principal mark.swenson@esgarch.com ,r CITY OF IOWA CITY r&sherman A S S O C I A T E S SHIVEFIATTC-RY ". STRUCTURAL, LANDSCAPE PHIL LARSON Vice President plamon@shive-hattery.com GEORGE SHERMAN President and Principal Developer JACKIE NICKOLAUS Vice President /Project Manager TONY KUECHLE Vice President /Project Manager WILL ANDERSON Associate Project Manager I CONSTRUCTION MANAGER RICH KIEMEN Senior Vice President RON WAGNER Vice President � 1" knutson �1 ENERGY DESIGN JIM DOUGLAS, PE, LEEDAP Project Manager JimD @TWGI.com GENERAL CONTRACTOR BRADJOHNSON Vice President /General Manager bjohnson@KnutsonConstruction.com 7 phufan LamDQUOSUZOO pc quflQ M C �pQ�oQ�c�Q Sherman Associates, Inc. 233 Park Avenue South, Ste. 201 Minneapolis, Minnesota 55415 Phone: 612.332.3000 www.sherman-associates.com Virlssherman 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 ourfirm 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 Contacts George Sherman, President /Owner 612.332.3000 1 fisherman @sherman - associates.com Jackie Nickolaus, VP / Project Manager 515.491.5103 1 inickolaus @sherman - associates.com Rich Kiemen, VP Construction 612.604.0865 1 rkiemen @sherman - associates.com Susan Fauver, General Council 612.604.0853 1 sfauver @sherman - associates.com Chris Sherman, VP / Project Manager 612.604.08591 csherman @sherman - associates.com Tony Kuechle, VP / Project Manager 612.604.0852 1 tkuechle(a@sherman- associates.com Will Anderson, Associate Project Manager 612.604.0866 1 wanderson @sherman - associates.com phuffian LamDQUOME200 p quflQ M C �pp�oQ�c�Q Zenith Condominiums I aLoft Hotel Minneapolis 901 2nd Street South Minneapolis, MN 55415 Use: Hotel, Housing (condos), Commercial Development Team: Developer- Sherman Associates Architect- ESG Architects GC- BOR -SON Construction Project Value: $61 Million 9 9 3 i phuffian LamDQUOME200 p quflQ M C �pQ�oQ�c�Q Sheraton Hotel Duluth 1 311 Superior — 301 E Superior St, Duluth MN Use: Hotel, Housing (condo) ill rfl r, Av- Development Team: i i raw Developer- Sherman Associates Architect- ESG Architects [J L GC- Oscar 1. Boldt Construction �e y� /- Project Value: $40 Million �:3 FohandM Sherman Associates has completed more than $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 Sherman Associates projects recently completed or under development that highlight the complexity and variety of the firm's financing experience. Riverside Plaza: 1,303 Residential Units & K -8 Charter School Minneapolis, MN Total Development Cost: $132 Million 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, Equity Rayette Lofts: 88 Residential Units & Commercail (Under Construction) St. Paul, MN Total Development Cost: $25 Million Financing: Conventional Mortgage, Federal Historic Tax Credits, State Historic Tax Credits, Metropolitan Council TBRA /TOD, Energy Credits, Equity Harrison Lofts: 60 Residential Units & Commercial Davenport, IA Total Development Cost: $8 Million 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, Equity West Side Flats: 178 Residential Units & Commercial St. Paul, MN Total Development Cost: $38 Million Financing: HUD Insured Mortgage, TIF, MHFA HOME Funds, Department of Employment and Economic Development, Metropolitan Council TBRA, Equity The Nexus: 142 Residential Units & Commercial (proposed) Des Moines, IA Total Development Cost: $27.5 Million Financing: HUD Insured Mortgage, City Assistance, Brownfield Tax Credits 5-0 pr�4aN H aTT00OWS Sherman Associates proposes a mixed -use development at the corner of South Linn Street and East Court Street in Iowa City, Iowa. Our proposal calls for the construction of a hotel, market rate rental housing, office space and a parking structure. The development would capitalize upon the site's prominent urban location and would advance the City's goal of transforming underutilized property to active uses. It would build upon the already vibrant and walkable downtown area. The development is consistent with the City's Economic Development Policy and Downtown Strategic Plans. This proposal is being presented to stimulate dialogue regarding potential public /private partnership terms. Sherman Associates would acquire the parcel and develop the entire 1.93 acre site as one project into three distinct yet interconnected uses. Residential - The residential component would consist of 91 units. A variety of layouts would be available including efficiency, one bedroom and two bedroom. We expect the project to attract a variety of potential residents. However we anticipate young professionals working in the Iowa City market to be primary residents. Units would feature high quality interior finishes in line with class A market rate apartment products. The amenity package would include a rooftop deck, community room, pool, patio, theater room and fitness center. The 5 story residential structure, clad in brick, glass and metal panel, would anchor the south side of the project. Upon construction completion the residential portion would be owned and operated by an entity associated with the developer. Hotel - The proposed nationally branded hotel would include 146 guest rooms. Due to its location we anticipate bookings from both business and leisure travelers. Amenities would include a restaurant, meeting rooms, exercise facility, pool and patio. The hotel structure would be six stories, with the front entrance on grade at East Court Street. Upon construction completion the hotel portion would be owned and operated by an entity associated with the developer. Office - Included within the proposal is 23,302 square feet of office space. It will be accessible off of south Linn Street, from its own separate entrance. The space will have a creative feeling with a curtain wall of glass and soaring ceiling heights. The office space will have access to the parking garage. We currently underwrite the space to serve as incubator space for the Iowa City Market. pr�4aN H aTT00OWS Parking - The parking structure would have a capacity of 329 vehicles. The parking structure would serve the residential, office and hotel development. The parking structure would not be visible from the street as it would be lined bythe residential and hotel developments. This proposal package details the developer's intent to transform this site from an underutilized parcel to an active multi -use development. This site is poised to become a tremendous asset to the neighborhood, the Riverfront Crossing Area and to Iowa City. Organization & 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. Effective communication and partnership between the development team and a local government entity enabled a successful 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 leverages this experience and strong relationships with financial institutions. Thoughtful Design and Quality Construction: Sherman Associates 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. 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 Linn & Court site. This is a result of an organizational approach that values communication and places a premium on accountability and delivery. Schedule It is anticipated that the project will be completed within 18 - 24 month following commencement of construction. Property acquisition and construction commencement are anticipated to occur in summer, 2015. A detailed construction schedule will be provided at a later date. pr�4aN H aTT00OWS Financing Plan Project will be financed with conventional debt, owner equity, and gap sources. Sherman Associates would like to open a dialogue with city staff regarding potential gap sources. Potential gap sources may include: 1) Tax Abatement: $2.5M - $3.5M 2) Tax Increment Financing: $8M - $10M 3) Construction Cost Savings: $4M - $5M 4) Subsidy of Incubator Office Space: $4M - $5M 5) New Market Tax Credit (Contingent on NMTC Award): $3.5 - $4 Million 6) Housing Enterprise Zone Credits & Sales Tax Rebate: $1 - $3.5 Million See financing section. Marketing Approach Sherman Associates marketing staff and external vendors conduct an extensive review of the surrounding neighborhood and market comparables. Sherman Associates marketing staff conducts advertising analysis and projections. Marketing budgets include but are not limited to: • Internet Listing Services • Brochures and Other Marketing Materials • Office Setup and Staffing Costs • Open House Events • Referral Services • Site Signage A marketing plan and lease -up schedule is developed. Goals and leasing incentives are put in place. Sherman Associates marketing staff works closely with compliance, regional management and executive management to assure that marketing plan is executed and all deadlines are met. Proposed Purchase Price for Land Sherman Associates proposes that the City provide the land at no cost to the development. City contribution of the land helps to fill the project financing gap. See sources & uses document. 10 Iowa City Mixed Use Development - Summary Document 07.14.14 Uses Hotel Housing Commercial; Total Land Costs - - - $3.5-$4 Architectural & Engineering Costs 700,000 650,000 300,000 ; 1,650,000 Construction Costs 24,102,963 22,303,955 7,991,692 ; 54,398,610 Financing/interim Costs 1,716,767 803,613 343,475 ; 2,863,855 Other Costs 4,500,000 2,858,121 673,161 ; 8,031,282 Total Uses 31,019,730 26,615,689 9,308,328 66,943,747 Sources Developer Loan 21,047,343 12,978,510 3,752,841 37,778,693 Developer Equity 4,600,000 3,850,000 1,400,000 9,850,000 Gap 5,372,387 9,787,179 4,155,487 ; 19,315,053 Total Uses 31,019,730 26,615,689 9,308,328 ; 66,943,747 Potential Gap Sources (Millions) Tax abatement $2.5-$3.5 Tax increment financing $8-$10 Construction cost savings $4-$5 Subsidy of incubator office space $.75-$1 New Market Tax Credits $3.5-$4 HEZ Credits & Sales Tax Rebate $1-$3.5 $19.75-$27 Public Financial Participation Sherman Associates staff desires to conduct discussions with City staff regarding project gap financing. Public financial participation in this project will further the City's economic development goals. This project will increase residential density, bring a mix of uses to the area and create vertical development in the downtown core. The location is walkable and the design contributes to a vibrant streetscape. The mix of users at the site- hotel guests, office users and residents, will contribute to the economic vitality of the area. The economic benefits of investment in this site will be felt by businesses and individuals in the surrounding neighborhood. Market Demands and Conditions Sherman Associates has conducted preliminary market analysis at the site. The uses proposed are viable. There is demand for market rate rental housing, office and hotel rooms in the area. Sherman has developed over 8,500 multifamily homes, two hotels and over 600,000 square feet of commercial space, throughout the Midwest. This experience, coupled with the expertise of local staff based in Iowa, has given the developer confidence in the preliminary design and underwriting of this project. Should our proposed project move forward, additional market studies would be conducted. The project would be further refined based on this additional analysis. f l: I�ri7 1( i] G% IJC H�C eIaC YKUJ<'/► IJI�7 �/► II��l�l �t/ �( i7 9i�► �J L'I:III�ZeI��C�►JI��7�lllziiaCY �I,Cy�Cyri]a1:1� HOTEL, HOUSING AND OFFICE COMPONENTS OF THIS PROJECT IC Hotel Sources and Uses 07.15.14 Uses Total Per Unit PGSF Land Costs Architectural & Engineering Costs 700,000 ; 4,795 ; 7.27 Construction Costs 24,102,963 ; 165,089 ; 250.31 Financing Costs 1,716,767 11,759 17.83 Other Costs 4,500,000 ' 30,822 ' 46.73 Total Uses 31,019,730 212,464 322.14 Sources Developer Equity 4,600,000 31,507 47.77 Loan 21,047,343 144,160 218.57 Gap 5,372,387 ; 36,797 ; 55.79 Total Uses 31,019,730 ; 212,464 ; 322.14 Gap - Assumptions # of keys 146 Gross SF 96,294 IC Hotel Development Costs 07.15.14 Land Costs Total Per Unit PGSF Land Acquisition - - - Subtotal - - - Architectural & Engineering Costs Architect Fees 600,000 4,109.59 6.23 Engineer Fees 100,000: 685: 1.04 Subtotal 700,000 4,795 7.27 Construction Costs Construction Cost(.. 15,960,000: 109,315: 165.74 General Conditions 1,476,300: 10,112: 15.33 Escalation 159,600 € 1,093 € 1.66 Contingency (owner) 500,000 3,425 5.19 Project Fee 959,595 € 6,573 € 9.97 CM Fee 500,000 € 3,425 € 5.19 Parking Construction 4,547,468 € 31,147 € 47.22 Subtotal 24,102,963 € 165,089 € 250.31 Financing Costs Alta Survey /Platting 6,000: 41 0.06 Appraisal Fees 6,000 € 41 € 0.06 Carrying Costs 1,157,604: 7,929: 12.02 Lender Closing Fees 50,000: 342: 0.52 P &L Insurance - - Construction Insurance 40,000 '_. 274 '_. 0.42 Environmental Phase 1 2,500 17 0.03 Inspecting Architect - - Legal 150,000 1,027 1 1.56 Lender Site Inspection 10,000 € 68 € 0.10 Loan Origination Fees (Construction) 210,473 € 1,442 € 2.19 Loan Origination Fees (Perm) - - Tax contract & Flood Certificate - - Title / MRT 84,189: 577: 0.87 Subtotal 1,716,767: 11,759: 17.83 Other Costs FF &E 2,000,000 13,699 20.77 Ownership Direct Purchases 309,900 Guest Room Corridors 100,000 Public Area 100,000 Hotel Room FF &E 876,000 OS &E 489,100 Signage(Interior &Exterior) 50,000 Technology 75,000 Ownership Startup Fee 500,000: 3,425: 5.19 City /Govt Fees - - Development Fee 2,000,000: 13,699: 20.77 Subtotal 4,500,000: 30,822: 46.73 TOTAL DEVELOPMENT COST 31,019,730 ': 212,464 ': 322.14 Assumptions # of keys 146 Gross SF 96,294 Iowa City Mixed Use Housing Development Preforms Prgect Name: Address_ City, State_ Zipcotle 5224D County Johnson B. Site 8 Structure Information 1. SITE INFORMATION a. Total Site Area SF 84871 Acres 1 93 Density 47 uN.4acre b_ Legal Description_ 2. BUILDING INFORMATION Types of Structures Housing Siators _ Type of Bustling Nu in her of Buildings Nu in her of Stories Numberof Units Gross Sul Feet New Construction Monlhly Tenant Rent Rent Reslriclon 94AMI Income Restncton 94AMI 91 92180 Rehabilitation 91 ]99 $ 1358 $ 123,614 quantity Totalftizaring 0 0 91 92 180 Non-Housing Space Total Rental lncome(mo): Total Rooms: 00 Total Rental lncome(yr): 1483366 3tl 2299 Administrator $ - 3e Community Space C Bud Debt $ - Common Area _ g. Other Loss_ sec $ - Total Non-Housing 0 11 0 0 Tote /Recta /Loss Totals ace: 1 0 1 0 91 92180 7z714 rentable (1). We& up (WU), Townhmnes (TH), Ekvzto-(E), Single Family (S1), DWbx (OP). (2). Totalnmroerofine nhalskW m,exc Mdetacn dga Wa aredetac daccessory Ww Ms. II. Development Information Unit Type (MR ,TG) #Betls Numberof Units Unit Size F1 Monlhl Rent Gross Monthly Rent Potential Tenanl Ulililks Monlhly Tenant Rent Rent Reslriclon 94AMI Income Restncton 94AMI Total Renlal Rooms MR UntlergmuntlGamges 91 ]99 $ 1358 $ 123,614 quantity $ rename $ - 3c 11,106 Unifs: 91 ]2,]14 $ 123614 Total Rental lncome(mo): Total Rooms: 00 Total Rental lncome(yr): 1483366 Market Rate $1.70 Average PSF 1. Commercial Space sf $/psfNr $ Tote /Commercia /Revenue 2. Parking Spaces 794 Surface $ 103,836 b_ Com mercol Vacancy $ - UntlergmuntlGamges �quan:Z 1]4 quantity �$renl/me $7600 $rent /mo $ 158688 George hudivitlual) quantity $ rename $ - 3c 11,106 tl_ Other Income Vacancy $ 158,688 Tote / Parking Revenue Ill. Operating Budget A. Annual Income 1. RENTAL INCOME a_ Rental Income Potentol la. 1,483,366 b_ Commercollncome Potentol 11, . - c_ Parking Rent Potential 1c_ 158,688 Tote /Renta//ncome Total Rental Income Potential S 1,642,054 2. OTHER INCOME a_Tenant Fees (specify) perunit 2a b_Launtlrylncome perunit 2b. - c_FormitetlSecunty0eposits perunit 2c_ - tl_ Interest Income 2tl_ e_ Misc_ Income 2e. 32841 Tota /Othenccome S 32.841 3. RENTAL LOSS a_ Rental Vacancy 794 3a. $ 103,836 b_ Com mercol Vacancy 1094 31, . - c_ Parking Vacancy ]94 3c 11,106 tl_ Other Income Vacancy 794 3tl 2299 e_ Rent Concessions $ - 3e C Bud Debt $ - 3f _ g. Other Loss_ sec $ - 3g. Tote /Recta /Loss S 11].243 4. TOTAL REVENUE 1. Rental Income $ 1 842,054 2. plus_ Otherincome $ 32,841 3. less_ Rental Loss $ 117,243 Tota /Revenue $ 1557652 Profonna Page 1 of 5 Iowa City Mixed Use Housing Development Preforms 1. ADMINISTRATIVE EXPENSES a_ Advertising /Marketing 110 $I per unit b_ Management Fee $ Per Unit Per Month Fee_ $43 %Total Revenue_ 300;5 c_ Legal d Audding e_ Bookkeeping / Accounting C On -Site Management Salary g_Telephone h_ Other (specify) a_ Elevator Maintenance / Contract b_ Exterminating c_ HVAC Repair Services d Other Contract Services e_ Maintenance & Jandonol Supplies C Grounds Maintenance g- Snow Removal h_ General Repair Services i_ Paint / Damaging Materials ]- Maintenance& Janitorial Payroll k. Other (specify) I. Other (specify) 3. UTILITIES a_ Water b_Sewer ._Trash d Gas &Oil e. Electricity 4. TAXES, RESERVES & ESCROWS a_Insurance b_ Real Estate Taxes c_ Replacement Reserves d_ Miscellaneous Reserves S. OTHER EXPENSES a_ Security Expense b_ Support Services (s c_Tax Credit Mondonng Fees d_ Mortgage Insurance Premium (MIP) e_ Other (specify) C Other (specify) 6. TOTAL EXPENSES 1. Administrative Expenses 2. Maintenance Expenses 3. Utdites 4. Taxes, Reserves & Escrows 5. Other Expenses C. Net Opemgng Income a 10 000 b. 46'7W 1c_ 5,000 ld 2b. 5000 1e_ 2c. 6000 if 2d 70DW 1g- 2e. 2560 1h. 2L TotaiAdminismitive Expenses $ 145,230 2a. 8,(X0 2b. 2c. 8,(X0 2d 2e. 12,500 2L 5000 2g. 5 000 2h. 40 000 2L 25000 2)_ 40000 2k. 211 1 Tote /M mtermnce Expenses $ 143,500 3a 2000 3b. 10000 3c. 8,000 3d. 5 000 3e. 20 000 Totai Utilities $ 65000 4a. 30000 $Per Unit $ 2,100 4b. 191,100 $Per Unit $ 400 4c. 36400 $Per Unit 4d. - Total Taxes, Reserves, & Escrows $ 257,500 If 5000 pec hp Total Other Expenses 1. 145230 21 500 3. 65 000 41 257,500 5_ 1 5000 Total Operating Expenses S 616,230 S 6,772 Expanse Per Unk A Annual Income A 1,557,652 B_ Operating Expenses B_ 616230 Net Operating lucome $ 941422 PerMnth: $ 78,452 Per Ung (Vr): $ 10345 Per Ung(me). $ 862 Pmforma Page 2 of 5 1. Supportable Mortgage Based on Stabilized NOI N01 Debt Coverage Ratio 2. Other Am orb zed Subordinated Debt Iowa City NSxed Use Housing Development Preforms $ 941,422 1 20 NO /AVagabh /or Debt Serv/ce $ 784,519 Amortrzation Annual Debi Tote / Subordinated Debt Serv/ce $ 3. Total Net Operating Income Available for Debt Service less Total Subordinated Debt $ 784,519 1. Mortgage Based on Income Approach a First Mortgage Terms Rah: 450% Term: 40 b_ Debt Service Factor Debt Coruhnt: 005395 Amortimdon: 40 MP. 065% Debt Constant with MP 0.06045 c_Annual Fee Fee Type: Maximum Supportable Mortgaged Basedon NOL $ 12,978,510 Per Unit: $ 142,621 2. Mortgage Based on Loan to Value a_ Cap Rate 600% b_Cappetl N01 $ 15690,375 c_ Loan to Value 80% Maximum Supportable Mortgaged Based on LTV: $ 12,552,300 Per Unit: $ 137,937 3. Mortgage Based on Loan to Cost a_ Total Development Cost $ 26,615,689 b. fia. Commercial Conslrud on $ 26,615,689 c.86% of HDMIM Development Foot $ 22889,493 Maximum mortgage based on LTC: $ 22889,493 Per Unit: $ 251533 4. Negotiated Mortgage Selected Mortgage Amount: $ 12978518 Per Und: $ 142621 Pmfonna Page 3 of 5 1. AcquisitionRlefinance a_ Acquisition Cost b_ Legal Fees c_ Existing Structures tl_ Other 2. Site NOrk Iowa City hSxed Use Housing Development Preforms a_ On site Work b_ OfiSAe Work for Utility /Paving Extension c_ Demolition tl_ Garages (not included in rent) e_ Parking (not included in rent) C Landscaping g. Other Total Acquisition/Refinance Total Site Work Total Cost l0% 70% Historic B. COnstrui a_ New Building (Residential) per unit 8 139,21014 b_ New Building (Parking) c_ Lead Based Paint Interim Control it Accessory Build ing(s)(ncl garages in rent) e_ Other Gross Construction 21509957 C Community Service Facility g. General Requirements I Gralilons R Escalation i_ Construction Contingency I Prolect Fee k_ Construction Supervision Net Contraction 21r 759r95s' I. Owner GOnstiuction Contingency 25% in Asbestos AbatementiContainment n Other Less EZ Saes Tax Rebale Less Energy Rebate Less Builders Eligible Bass Reductum Total Contraction Submral She Work &Co soudion 22,303,955 Per Uref $245,09341 12,673,583 a_ Gonstmcton Interest 5001000 8836374 b_ Gonstmcton Loan Originator Fee c Gonstmcton Loan Inspection 10 000 it Taxes Ounng Construction e_ Water, Sewer and Impact Fees C Other Hamel and Liability Insurance 00000 Total Interim Costs 570,000 250 000 543999 22303,955 4. Professional Fees a_ Architect Fees -Oesgn b_ Architect Fees - Supervision Toter Archiect: $G5O0LO c_ Engineer Fees it Atiomey Fees (Real Estate) e_ Accountant Fees C Other g. Other 487 500 162,500 %af Cone[ 291% TotalProfessionlFees 650,000 S. Interim Costs a_ Gonstmcton Interest 5001000 b_ Gonstmcton Loan Originator Fee c Gonstmcton Loan Inspection 10 000 it Taxes Ounng Construction e_ Water, Sewer and Impact Fees C Other Hamel and Liability Insurance 00000 Total Interim Costs 570,000 6. Financing Fees & Expenses a_ Bond Premium b_ Bond Costs c Cared Report it Cost of Issuance e_ Permanent Loan Origination Fee C Permanent Loan Credit Enhancement g. Mai Fees h_ Letter of Credit (LOG) Fees i_ Tito and Recording I Placement Fee k_Other H U O Inspection Fee (05D%) I. Other HUO Applicator Ever M 30%) Total Financing Fees & Expenses Parfonna Page 4 of 5 1) 2) 3) 4) 5) 6) 7) 8) 9) 101 Iowa City Nfzed Use Housing Development Preforms T. Soft Cosh a_ Property Appraisal b_ Markel Study c_ Environmental Report d Survey e_ Rent -0p Marketing I Tax Cradd Application Fees g- Tax Cradd Compliance Fee h_ Tax Cradd Reservation Fee i_ 8609 Fee ]- Cost Certification /Accounting Fees k_ Permanent Relocation Expenses I_ Temporary Relocation Expenses in Furnishings and Equipment • Capital Needs Assessment Report • Legal Fees I, . Other q. Other Tota/ Soft Costs 9. Syndication Costs a_ Bridge Loan Fees and Expenses b_ Organizational (Partnership) c. Tax Opinion it Other Tote/ Syndication Fees 9. Developers Fees a. Develoger Fee %of roe 597% b_ Develoger Overhead c. Consultant Fee d. Other Toh/Deve/opers Fees to. Project Reserves a. Working Capital Reserve (4%of HUD mortgage loan) b. Operating Deficit Reserve (6 months mdebt service;required by HUD) c. Escrows it Other Tom / Project Reserve perun/t: persgft: $ 26615689 $ 292,480 $ 40 5.15% $ 12978510 142,621 Owner Equity 30% 70% Historic CT, m /Bes /sbr Tax Cred/ts Gap $ Tow $ $ $ peronft: $ - 1,W0,000 $ - $ - S - persgft: $ - Persgft: $ - $ - S - D. Total Mortgageable Cosh 1500,000 Total Development Costs $ 26,615,689 519,140 905,121 385980 $ 25,710,569 I 905,121 Total Deve/o ment Costs C. Total Basis for Tax Credits perun/t: persgft: $ 26615689 $ 292,480 $ 40 5.15% $ 12978510 142,621 Owner Equity 30% 70% Historic CT, m /Bes /sbr Tax Cred/ts Gap $ Tow $ $ $ peronft: $ - parmet: $ - $ - S - persgft: $ - Persgft: $ - $ - S - D. Total Mortgageable Cosh Total Development Costs $ 26,615,689 less_ Pra l Reserves 905,121 $ 25,710,569 A. Sources of Funding 1. Negotiated Mortgage Amount: $ 12,978,510 Name of Source Type Amortization Rah Amount Per Unit Notes First Mortgage, Loan 40 5.15% $ 12978510 142,621 Owner Equity $ 3,850,000 42,308 Gap $ 9,787,179 107 551 $ 26,615,689 $ 292,480 Gap: positive I (negative) $ Profonna Page 5 of 5 IC Office Sources and Uses 07.15.14 Uses Total PGSF Land Costs - , Architectural & Engineering Costs 300,000 12.87 Construction Costs 7,991,692 342.95 Financing Costs 343,475 ; 14.74 Other Costs 673,161 28.89 Total Uses 9,308,328 399.45 Sources Developer Equity 1,400,000 60.08 Loan 3,752,841 ; 161.05 Gap 4,155,487' 178.32 Total Uses 9,308,328 399.45 Gap - Assum tions Gross SF 23,303 Iowa City Office July 15, 2014 Cost Budget A 8 E Fees Reimbursables $ 270.000 $ 30,000 Financing Costs Alta Survey City Review Costs $ 5,000 Appraisal Fees Years Rate Avg Bal. $ 4,000 Carrying Costs 0.75 4.50% 60% $ 209,588 Closing Fees 0% $ $ 500 P&L insurance Project Management Fee $ 3,500 Construction Insurance 23,302 $ 10,000 Environmental Phase 1 $ $ 2,500 Inspecting Architect 23,302 $ $ 3,000 Lender Legal Sign $ 10,000 Lender Site Inspection Loan Amount $ 2,500 Loan Origination Fees (Construction) 0.50% $ 10,350,000 $ 51,750 Loan Origination Fees (Perm) $ 10,350,000 $ - MRTConstruction 0.240% $ 10,350,000 $ 24,840 MRT Permanent $ 10,350,000 $ - Guaranty Fee 0.50 $ $ - Tax contract & Flood Certificate $ 2,000 Title Insurance $ 10,350,000 $ 8,798 Title Disbursing Fees - $ 3,000 Recording Fees of Deed 8 Loan Doc's $ $ 2.500 WAC Fees` Units 0 $ 343,47511 Land Costs Land Acquistion $ - Development Costs City Review Costs $ 5,000 Escrow & Legal Costs Resale $ - Acquisition Fee 0% $ - $ - Project Management Fee Shell Constrcutiion Cost 23,302 Legal Fees 112.12 $ 75,000 Leasing Commissions 23,302 $ 5.00 $ 116,510 Sign 4,418,187 $ 10,000 Park Dedication Fees 25.00 $ - SAC Fees* Units 0 $ - Storm Water Mgmt Fees $ - Space Planning Fees 23,302 $ 0.50 $ 11,651 Soil Borings $ 5,000 Traffic Study $ - Trunk Dedication Fees $ - WAC Fees` Units 0 Watershed Fees $ - $ 223,161 on Costs Construction Surveying Construction Testing Shell Constrcutiion Cost 23,302 $ 112.12 $ 2,612,531 Parking /Storage Constrcution Cost 23,303 $ 189.60 $ 4,418,187 Office Tl's 23,303 $ 25.00 $ 582,575 CM Fee 23,303 $ 6.44 $ 150,000 Construction Contingency 3% $ 7,613,293 $ 228,398.78 F lopers Fee $ 45000000 Of Tax Credit Totals $ 9,308,328 xvoaay w.w.iawrrcorrrsFiwuco,.,rrsa vraa,re- m1s14FiwL cn au4119�4 11 w 3 a � 0 0 w � > X 3 � o NO u r a � a I I r - -1 1 a v ro ro X N C II O Q D b N [C v v N C J L N M on o m m �m Y A N � � b � � h N � G v N 0 v \ v r] wro Mo o X 3 � o V O }nU W , O O N O 0 0 m 0 O 'v v wro M o I > � U X 3 � o V a 3 0 �. 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Q) c� I. vo _v v vy °0 u, ro Mo o X 3 � o V a 3 0 �. Q) c� o " CD a s 0 W v 0 wro Mo o X 3 � o V a 3 0 �. Q) c� s 0 v Q� W= vo �a v wro Mo o X 3 � o V a 3 0 �. Q) c� u u u u 0 N m N O a N II II II N U O O N O d Ln X N N EO m O X N X v U � N 0 j U O Z 0 � a m aI N w D y U � Z N N Y 6 � N [C ' d K 2 O N O v E E w m M o I > � U X 3 � o V O } U Q) VJ� m m o u o N v o n w of O 90 E O ^ N ^ N ^ N ^ N ^ N z� E m m m m m m m y OLL VI O O O O O O a N u 92 N M 0 0 0 0 0 dm 0 0 0 0 0 0 0 OI y H � O WOI OI ONI O M w N N O [�J N m a vI cp ^ 2 � N VI d C ^ � m m m m m O � a N LL c0 c0 c0 c0 c0 a N 0 [C U m 0 0 0 0 01 � OLL aI U C O � � cp ^ m OI O N m a �, w � � N Jd N m a vI Io ^ O H u u u u 0 N m N O a N II II II N U O O N O d Ln X N N EO m O X N X v U � N 0 j U O Z 0 � a m aI N w D y U � Z N N Y 6 � N [C ' d K 2 O N O v E E w m M o I > � U X 3 � o V O } U Q) VJ� 12 Energy Efficiency Sherman Associates has engaged The Weidt Group as energy consultant for the project. The Weidt Group will complete energy design and energy modeling services. Sherman Associates and The Weidt Group have participated successfully on numerous projects together. As the long term owner and operator of this development, Sherman Associates is interested in creating an energy efficient building. We will explore implementing items such as solar and utility monitoring systems. We will explore pursuing LEED certification. As project design and development move forward, the energy efficiency scope will be refined. Sherman Associates is committed to developing an efficient building. 13 CONFIDENTIAL 5 YEAR LITIGATION SUMMARY AS OF JULY, 2014, FOR SHERMAN ASSOCIATES, INC. AND AFFILIATES INVOLVING CLAIMS OF $50,000 OR MORE Active Matters 1. Northeast Quadrant LLC ( "Northeast Quadrant' ), an affiliate of Sherman Associates, Inc. (the "Company'), has been sued by the Essex on the Park Owner's Association (the "Essex Association ") in Minnesota State Court, Second Judicial District, Ramsey County, for alleged construction defects in the Essex condominium project. Specifically, the complaint alleges "systemic defects in the design and construction of the Project that result in excessive sloping of the floors." The defendants (Northeast Quadrant LLC; the general contractor, Kraus Anderson; a material subcontractor, Structural Components Systems, Inc.; and the rough carpenter for the project, J. Eiden Construction) sought to have the claims dismissed by summary judgment on the grounds that the claims are time - barred by the applicable statutes of limitations and repose. The judge denied the summary judgment motions, holding that there are material issues of fact pertaining to the statute of repose and statute of limitations that a jury will need to decide at trial. The trial block for this case has been set for July 7 through July 25, 2014. Northeast Quadrant and Essex Association are negotiating a settlement. 2. The Company and its affiliate, Water Street Brownstones LLC ( "Water Street "), the developer of the Water Street Brownstone Condominium project in Des Moines, Iowa, have been threatened with a lawsuit by the Homeowners Association of the Water Street Brownstone Condominiums (the "Water Street Association ") alleging liability for water infiltration issues. The Company and Water Street have put the general contractor (Hansen Company) and the architect (Elness Swenson Graham) on notice of the claims and in the case of the general contractor, that it tender the defense to its insurer, and that both the general contractor and the architect defend and indemnify the Company and Water Street to the extent a lawsuit is commenced. The Company and Water Street are currently working with the Water Street Association to further investigate the issue. 3. The Company, Lyons Court LLC, Sibley Court Apartments LLC, Sibley Park Apartments, LLC, Vine Street Lofts LLC and Sherman Associates Development LLC (the "LLCs "); and Lyons Court Limited Partnership, Sibley Court Limited Partnership, Sibley Park Limited Partnership and Vine Street Limited Partnership (the "LPs ") and George E. Sherman ( "Sherman") are defendants in a matter styled The Lander Group, Inc. v. Sherman Associates, Inc., et al., Hennepin County Court File No. 27- CV -13- 19388. In that case, the Plaintiff seeks a judgment in the principal amount of $445,371.00, legal and equitable relief under Minn. Stat. § 322B against the LLCs; and legal and equitable relief under Minn. Stat. § 321 against the LPs. The Plaintiff filed an Amended Compliant and the Company, LLCs, LPs and Sherman have filed Joint and Separate Answers and Counterclaims. Plaintiff moved for partial summary judgment on its declaratory judgment claim. Plaintiff seeks a judgment declaring that Sherman Associates, Inc. is solely responsible for paying for any operating deficits of the LLCs and LPs. The Court took the motion for partial summary judgment under advisement. 4. The Villas at Little Canada Owners' Association (the "Villas Association ") filed suit against Craftsman Construction Incorporated ( "Craftsman") and The Villas at Little Canada, LLC ( "VLC "), each an affiliate of the Company. This construction defect litigation involves a thirteen (13) multi -unit townhome development, known as the Villas of Little Canada, located in the Little Canada, Minnesota (the "Villas "). Craftsman served as the general contractor and VLC served as the developer for construction of the Villas. The Villas Association filed suit asserting that systemic defects and/or omissions in the materials and/or design and/or installation and/or construction of the common elements and units, including but not limited to retaining walls, drainage, hardscape, asphalt, steps, siding, deck supports, and roofing exist at the Villas. The matter is being defended by the insurer for Craftsman and VLC which has filed an equitable third -party complaint against various subcontractors. Discovery and investigation is in the preliminary stages, and Trial is set for November 17, 2014. 5. SA Russell Lamson Limited Partnership, an affiliate of the Company, is the subject of an investigation being conducted by certain Federal and State government agencies related to the recording in Black Hawk County, Iowa of a Land Use Restrictive Agreement. The investigation is still pending and employees of the company have participated in voluntary interviews with the agencies conducting the investigation. Also, the company has produced documents as requested by the agencies conducting the investigation. The U.S. Government conducted a search of Sherman Associates' Minneapolis office on May 6, 2014 pursuant to a search warrant dated May 6, 2014. 6. The Company and its affiliates are parties to property tax challenges on an annual basis. 7. The Company and its affiliates are also involved in unlawful detainer actions on a regular basis for residential and commercial tenants. Concluded Matters The following matters are included because they have occurred within the last five years but are resolved: 1. 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 Midtown Exchange Project located in Minneapolis, Minnesota. The suit alleged that after development was complete, Ryan provided operating budgets that were substantially higher than those delivered during acquisition and development of the Projects. Midtown Limited Partnership was notified of a potential action against it in arbitration by the Owner's Committee for the Midtown Exchange Project in November 2012. The claim is for common area costs in excess of $100,000 allegedly owed by Midtown Limited Partnership. The parties have settled both disputes above. 2. Capital Heights City Home Owners' Association (the "CH Association ") commenced a lawsuit against the Company, Craftsman and Capital City Homes LLC, a affiliate of the Company (`CCH ") asserting claims of breach of statutory warranties, breach of express and implied warranties, and negligent construction. This construction defect case involves a development known as Capital Heights located in St. Paul, Minnesota. This Project contains seven buildings where six buildings contain pitched roofs with asphalt shingles and one building contains a flat roof with an EPDM membrane. CHC was the developer for the project and Craftsman served as the general contractor. Craftsman contracted with various subcontractors to supply materials and/or labor for the construction of the project. The primary claim surrounds the construction of the flat roof of the one building at the project, though there are other claims relating to the exterior siding, trim around windows and garage doors, and retaining walls. Craftsman commenced a third -party action against pertinent subcontractors pursuant to the CH Association's construction defect claims. The matter was being defended by the Defendants' insurer and it has settled. 3. The Company and its affiliate, River Point West LLC ( "RPW LLC "), were named as defendants in a lawsuit by Hubbell Terminal Corporation ( "Hubbell "). The lawsuit claimed that the RPW LLC breached its obligations under a purchase agreement. The parties settled the matter and RPW LLC paid Hubbell $690,000.00 over three (3) payments. 4. 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`s 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 I' day of each month until paid. 5. The Company was named as a defendant in a lawsuit by Hannon Security Services, Inc. ( "Hannon "). The lawsuit claimed that the Company breached its obligations under a contract relating to security services relating to payment of $86,902.85. The parties entered into a Settlement Agreement pursuant to which the Company paid Hannon $75,050.38 over three (3) payments. 6. Wisconsin Security Police ( "WSP ") sought a breach of contract claim in Milwaukee County circuit court against Highland Park Apartments LLC ( "Highland "), SA Boulevard Apartments LLC ( "Boulevard "), and the Company arising out of the failure to pay for security services WSP provided from April 2009 through September 2009. The parties entered into a Settlement Agreement in September of 2011 pursuant to which the Company agreed to pay $125,000 in full satisfaction of any and all claims. 7. Bottineau Commons LLC (`Bottineau "), Craftsman and the Company were named as defendants in a lawsuit brought by the Bottineau Townhomes Owners' Association (the ` Bottineau Association ") relating to alleged construction defects at certain units in the Bottineau Townhomes project. Craftsman and the Company have been improperly named in the action and the action was not filed. The parties inspected the units and conducted necessary repairs and this matter is resolved. 8. River Point West LLC, an affiliate of the Company, was a defendant in a matter styled Metro Demolition, Inc. vs. River Point West LLC, in Court File No. CE 71577, Polk County, IA, and brought an arbitration proceeding against Metro Demolition, Inc., AAA No. 65- 110 - 00109 -12. The parties entered into a Settlement Agreement, in which the Company agreed to pay $50,000.00 on or before November 1, 2012, and the remaining principal balance of $119287.11 in 24 equal monthly payments of principal and interest in the amount of $5,180.03. The Company is current on its payments and the Settlement Agreement settled the claims in the state court action and the arbitration. 9. The Company was a defendant in a matter styled as Kaambo Market, LLC (the "Tenant'), Plaintiff vs. Sherman Associates, Inc., Defendant and Sherman Associates, Inc., Third -Party Plaintiff vs. Abdirashid Jama and Emad Y. Abed (the "Lease Guarantors' ), Court File No. 27- CV -09- 21373. The nature of the litigation was a lease dispute. Tenant sued to enforce a five -year renewal option and alleged it was entitled to damages in an amount in excess of $50,000.00. Tenant sought to amend its Complaint to assert a claim for rescission and restitution of all funds it invested in the leased premises, which it claimed exceeded $1,000,000.00. The Company sought to evict Tenant and obtain judgments against Tenant and Lease Guarantors for certain amounts due and owing under the Lease. The trial court granted the Company summary judgment on all of the Tenant's claims and summary judgment on the Company's claims against the Tenant and Lease Guarantors. On June 27, 2011, the Court of Appeals, in Appellate Court File No. A10 -1810, affirmed the trial court's decision. 10. Grande Market Square, LLC, an affiliate of the Company, was a defendant in in a matter commenced in Dakota County, Minnesota by RREF SSl Acquisitions, LLC. The parties entered into a Confidential Settlement Agreement in May 2012. 14 15 MnogaQ Ramurgw, c apabduflVez M AwMo 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. • 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 MILLENNIUM "MILLENNIUM" The Vision Millennium will be Iowa City's newest "Class A" addition to the vibrant downtown landscape. It will meet the demands of the "Millennials ": the generation born between the years 1980 and 2000 which require high quality living, amenities, and a walkable living environment. Anchoring Millennium will be a 20,000 SF office space primarily catered to a co- working environment, including desks and suites rentable monthly, shared conference rooms, and a high level of common area amenities including coffee lounges and high quality furniture and architecture. This space will serve Iowa City's already thriving entrepreneurial startup scene as well as maturing companies. Millennium will also include 190 "Class A" residential rental units. Millennials desire space that is engaging, highly amenitized, modern, and active. Millennium will offer exactly that, with finishes unrivaled in any apartment community in Iowa City, a 1,500 square foot fitness center, a 12,000 square foot courtyard and outdoor kitchen, hot tubs, and fire pits, as well as a clubhouse that rivals any Iowa City nightlife (though supervised). We are pleased to introduce to you, MILLENNIUM: MILLENNIUM A r —i y -e Real E.t.t,. I,.iti,.l... CA111MI I..VfT'.U.SnI.LR�[�!I.Y } II[I.VY.BIRIJ�I:R C.RPITwL $(NA'TN�44 } AV%RS I�MCISMISALSMAIT W defy 16.2014 id Davidson EcarbmK Cevelopnlsft A1ffi"5MC9 City Mo 410 Cast Wasf kqM St lovre Cdy. love 57740 R E: Raq uest for Proposal - Co u rt St. ! L it n St .Redevelopment Site jell I am pealed to mrnb A our proposal for the Coot St. ! Lin SL Rode el;pnent Sid. We have been wa:*g (he status of this site far flip past 12 months, awafirg be q*okinity to team wih kwa City to adhere k mmmc dnADIment gals. Cu team, over the past year. has put together a Wbrant urban ildi devebp $Fmt 11at fits with the City's stated gals and master plan. Wre b*m Ctr p*O Can be a Cwrltwq";* d k wa Ciy's mbar landKape, irlcapuatirlg afiordatAe, hgh doss Wrg anemiAm6 as weft as adfige* office spree C9mg W new and gRmng businesses General ton 41 prgwsak pmehase Wine: Eamest Morey: Lad Purchase Closing: Comirucioo slat: Pull& AmisWm - Offim: Pubic Assistance - Reaidaltial $2700A00 wfdin 30 days of accepted pcpoA oe:amer, 2614 012015 GapTF irormg, 15-yea tape abatement tone W111 lM C4,5 steady empkryment and popu411or1 growth, a wtmt bml ewliomy, and a der-0rne peek educatinal irsiil *m. we are cond m in the owrDFmc vi&1*y of ba davftn k plat. Cur project, named 7dilennkm', wi dig ova $30 nAM of iwqstmek b lays city's boon Core, hadig upon t11e Citys momentum bust it mccwlt yeas. We befiee our p*d meets or exceeds each of 1w City's desired obpe we9 fa the redevelopment of fits site, ad we lack b wad b bekq one of fie felt rmj r daldbpneat projects launched order themesly appimedRrvedcet OromwW Master R m. RCS has a 30 year w1ory ilvesvg in real estate, wig $1 t&m in uansack no and wtlh over $1 b" of assets Cnrwntly ruder umoger oA. Vh padre and dev ft high grotty teal estate across the VnW Stags and iltwrnafiorally. We hays easy and reli * Kms to CaOhl. wide ova X100 pion of inestor equdy %Wwd as of mid -yea 2014, ad over $1 billion it inalefig ~ by lenders for fiche projecl9. We pride it our bae:k record of stmoss equally as strug as cur relatk nahps and reprtatiom vidll municyaitie9 and larders. We hope Sw indoerpropasal an eorllirgoppAo ity for rempToble "thin Iowa CIS. and welook tanraro b waking w1h you on this prged. Thank you for mro derig Real Capital Sduliau as yow *veloweat parLew Regards, Mace) Arsumit PIMA 9WW25701 Fm 8�94"4mI T1 CerARmkmpork�y9Jr62M WUMWCO UW7I IfM/roolpoplloMlJ76nkpLm I W ro=opRoIhWbrR Chart for Millennium RCS - Millennium Iowa City, LLC Contact: Tim Fredregill, Associate - MILLENNIUM PRIMARY CONTACT 303 -533 -1643 tfredregill(cD realcapitalsolutions. com 371 Centennial Parkway, Suite 200 Louisville, CO 80027 Developer RCS - Development, LLC Contact: See Above Design Team Architect EVStudio Contact: Bill Foster, Director of Architecture 303 - 945 -3482 bill(cDevstudio.com 1117 Cherokee Steet Denver. CO 80204 Structural Engineer EVStudio MEP EVStudio Civil Engineer TBD: Likely a local candidate such as Shoemaker & Haaland Contractor TBD: Likely a local candidate such as McComas Lacina Property Manager - Residential TBD: Likely a national mgmt firm such as Greystar or Riverstone Property Manager - Office TBD: Likely HUB, ICAD, or small entrepreneurial endeavor Legal Real Capital Solutions Contact: Rudy Fettig, Senior Counsel 303 -533 -1627 rfettigCcilrealcapitalsolutions .com 371 Centennial Parkway, Suite 200 Louisville, CO, 80027 3 MILLENNIUM Team • Owner: • RCS — Millennium Iowa City, LLC 371 Centennial Parkway, Suite 200 Louisville, CO 80027 • This is the legal entity with which the City will contract • Contracting authorities are Marcel Arsenault (CEO of Real Capital Solutions) and Sharon Eshima (President of Real Capital Solutions) • Equity Financing: • Millennium's single - purpose entity, RCS — Millennium Iowa City, LLC, will be owned 100% by Marcel Arsenault (CEO & Founder of Real Capital Solutions), or a to -be- determined investment vehicle owned 100% by Marcel Arsenault • As of year -end 2013 (last financial statement), Marcel Arsenault maintains over $123 million in liquid assets and a net worth of $462 million • Manager of RCS— Millennium Iowa City, LLC: o Real Capital Solutions 371 Centennial Parkway, Suite 200 Louisville, CO 80027 Real Capital Solutions Real Capital Solutions was founded by Marcel Arsenault in 1984, under the name Colorado & Santa Fe Land Company. Founded in 1984, the Company has evolved from the dominant regional real estate investment company into a nationally- focused real estate investor and developer. Using an entrepreneurial approach to both management and leasing, our portfolio quickly grew to over 4.5 million square feet, making us one of the largest real estate investment companies in the Rocky Mountain region. Real Capital Solutions now employs 80 people, with a full- service team including asset management, acquisitions, development, accounting, and legal services. "Real Capital Solutions creates exceptional value in real estate" 4 Marcel Arsenault CEO — Real Capital Solutions Jarvie Worcester MILLENNIUM • Marcel has been a life -long problem solver and serial entrepreneur. He has 25 years experience in the real estate business as owner of Real Capital Solutions, one of the largest private commercial real estate companies in Colorado. • Never lost outside investor money on a real estate deal. • Passionate about his industry, he is tough, tenacious, driven, entrepreneurial, and lives for problem solving VP— RCS Development • Entitlement and pre - development for over $700 million of projects while at Vail Resorts Development Company • Management of projects as large as $243 million • BA from the University of Arizona Eller College of Business Administration Tim Fredregill Associate — RCS Development • Civil engineering degree from the University of Iowa (honors) • MBA from the University of Colorado Leeds School of Business • 3 years experience as a structural engineer • Project lead on multifamily development projects including Maple Leaf (70 ' units), Residence at Midland (290 units), Colony Ridge (160 units), Presidential MANRidge (120 units), Arrowhead (85 units), Millennium (196 units), and 1620 Central , Street (47 units) Ken Cope VP— Apartment Capital Solutions • Managed apartment portfolios in excess of 3,000 units _ _ • Acquired over $600 million in multifamily assets throughout the U.S. a • MBA in Finance from Indiana University, graduating Cum Laude it, IN 5 Graham Riley VP — Commercial Capital Solutions MILLENNIUM • Over 18 years of commercial real estate and development experience. • Developed 1,000,000 sf of industrial, office and flex product • Executed $600MM+ in acquisitions, sales and developments in multiple markets. • Graduate of the University of Wisconsin, Madison with a BA in Real Estate /Risk Management and Insurance. Certified Commercial Investment Member (CCIM) Rudy Fettig Senior Counsel — Real Capital Solutions • Has extensive experience in all phases of complex real estate transactions, including major acquisitions, real estate finance and commercial leasing. • Responsible for all legal aspects of the acquisition, structuring and finance of each of the Real Capital Solutions investment. • Rudy received his Juris Doctorate from the University of Denver. R MILLENNIUM Real Capital Solutions Apartment Portfolio Real Capital Solutions Apartment Portfolio Property Name City State Current Units Units Under Construction or Planned Year Built Value The Canopy Jacksonville FL 360 360 1985 $23,206,683 The Bluffs Junction City KS 602 602 2007 $49,892,440 Summit Springs Lawton OK 246 246 2008 $9,390,204 Pine Terrace Lawton OK 72 72 1980 $1,200,000 Patriot Pointe Junction City KS 129 129 2007 $11,012,856 Antem Colorado Springs CO 528 528 1985 $43,000,000 Eden's Edge Jacksonville FL 244 244 2008 $19,717,029 Stonegate Del Rio TX 112 112 2007 $8,340,230 Cantata Albuquerque NM 260 260 2012 $34,000,000 Diamond Mesa Albuquerque NM 264 456 2012 $31,000,000 Maple Leaf Arvada CO 70 70 2014 $15,000,000 79 West Panama City Beach FL 296 296 2010 $21,000,000 Residence at Midland Midland TX 290 2014 $38,000,000 Colony Ridge Thornton CO 160 2014 $33,000,000 Presidential Ridge Thornton CO 120 2014 $26,000,000 Millennium Norman OK 196 2014 $47,000,000 Arrowhead Glendale AZ 85 2014 $22,000,000 1620 Central Street Evanston IL 47 2015 $16,500,000 Total 3,183 4,273 $449,259,442 Real Capital Solutions Office Portfolio • Acquired 170 commercial properties valued at over $2 billion over the past 30 years • To date, RCS has acquired nearly 11 million square feet of commercial property • One of the largest private owners of real estate in Colorado • Currently manages a portfolio of 38 properties valued at over $190 million 7 MILLENNIUM Relevant Project Experience Park Terrace — San Diego, CA • 223 unit residential over 22,000 sq ft of retail • 14 & 8 story towers located in San Diego's Gaslamp District .".. Built to suit the active and cosmopolitan lifestyle of the area: Petco Park, fine dining, high end retail within blocks • Duties (Jarvie Worster): Acquisition, entitlement, construction ^ reporting, sales & marketing • Contact: Jarvie Worster (iarview @email.com. 970 - 470 -0627) Strata — San Diego, CA • 236 unit residential with 12,000 sq ft of retail 28 story high rise with ground level townhomes in the East Village Luxury apartments and high class living in an active urban environment • Duties (Jarvie Worster): Acquisition, entitlement, project management, financing, sales & marketing • Contact: Jarvie Worster (iarview @email.com. 970 - 470 -0627) Millennium — Norman, OK $42 million, 196 unit apartment development near the University of Oklahoma Completion scheduled for July, 2015 Will pay approximately $500,000 in property taxes annually • "I'm hopeful this project will set an example for other future projects" - Ward 7 Council member Stephen Holman Duties: Acquisition, entitlement, project management, financing Contact: Tim Fredregill (tfredre ¢ill @realcaoitalsolutions.com. 303 -533 -1643) Ll IL E 1620 Central Street — Evanston, IL • $13.4 million, 47 unit Class A apartment development on Chicago's suburban north shore • Completion scheduled for spring, 2016 • 4 story walk up style multi - family development designed for and integrated into small town suburban lifestyle • Duties: Acquisition, entitlement, project management, MILLENNIUM financing • Contact: Tim Fredregill ( tfredregilI @realcapitalsolutions.com. 303 -533 -1643) One Hill Ski Place — Breckenridge, CO • 88 luxury condominiums with hotel amenities • 3,000 sq ft office, 2,200 sq ft retail, 15,000 restaurant • Mountain resort lifestyle in heavily trafficked ski area • Duties: Project management, construction management, project closeout, sales & marketing • Jarvie Worster (iarview @email.com. 970 - 470 -0627) Four Corners — Telluride, CO • 120,000 sq ft mixed use residential with 20,000 sq ft retail and commercial • Planned for townhomes, condos, retail, restaurant, nonprofit art campus • Duties: Acquisition, entitlement • Contact: Brian Wilson ( bwilson @realcaoitalsolutions.com, 303 -533- 1689) E MILLENNIUM Millennium — Project Summary • Property purchase for the full $2.7 million that the City paid for the site • 8 Stories of high -end construction • 186,200 Square Feet: 166,200 residential & 20,000 office • 263 Parking Spaces (233 garage, 30 surface) • "Class A" finishes throughout • Will pursue Enterprise Green Communities or LEED certification, including, but not limited to: • Solar Photovoltaic Panels (RCS is one of the largest financers of solar in Colorado) • Low or no -VOC paints and finishes • Energy efficient windows & insulation • Recycled construction materials Project Summary Units Required Spaces Studio 0.5 Count Size (Sq. Ft.) Residential 15 8 Studio 15 350 1 Bedroom, 1 Bath 15 500 2 Bedroom, 2 Bath 120 800 3 Bedroom, 3 Bath 40 1,050 Residential Units 190 150,750 Residential Common Area 15,450 Total Residential 166,200 Office 20,000 Total Project 186,200 Millennium Office Parking Count Required Unit Mix Spaces /Unit Units Required Spaces Studio 0.5 15 8 1 Bedroom 0.5 15 8 2 Bedroom 1 120 120 3 Bedroom 2 40 80 Residential Parking Required 216 Residential Parking Provided 233 Office Parking Provided 30 Total Parking Provided 263 • 20,000 SF of badly- needed "Class A" office space in Iowa City's downtown • 30 dedicated parking spaces reserved for office tenants • More parking can be allocated to office if demand proves, as Millennium offers 263 parking spaces in total, more than is required by code • Additional parking is available at the Court Street Transportation Center, one -half block away, in which 90 spaces are currently available • Office will primarily be a co- working model, with desks and suites available for rent at a monthly rate • Portions of the office may be subdivided for businesses desiring their own private office space independent of the co- working office • Architecture: 10 MILLENNIUM • High quality, modern interior finishes • Grand glass fagade entry and outdoor plaza • Provides overflow space for expansion of the IC Colab • RCS is in discussions with private companies for management of the co- working office space, meaning the office doesn't necessarily have to be managed by ICAD. • Real Capital Solutions has pursued several co- working development opportunities, including "Industry" in Denver, and "HUB" projects in New York and elsewhere. Therefore underwriting and financing Millennium's co -work space will not be overly challenging (for some it may) • HUB: • Real Capital Solutions has received a letter of interest from HUB, a co- workspace developer and operator, regarding the co- working opportunity at Millennium • There are 52 HUBS globally, 9 in the United States King's OToss �1SO °s..u10 r -VIA, �T11. Bay Area �dor 11 MILLENNIUM Impact Hubs are where change goes to work. Part innovation lab, part business incubator, and part community center, we offer our members a unique ecosystem of resources, inspiration, and collaboration opportunities to grow impact. We believe a better world evolves through the combined accomplishments of creative, committed and compassionate individuals focused on a common purpose. Joining our diverse community of members and collaborators will inspire, connect, and enable you to develop your best work every step of the way. Our goal is to jointly create platforms and experiences that inspire, connect and enable individuals and institutions around the world to sustainably impact society. Through our direct and collaborative efforts we support journeys of impact on many different levels. A look at our 2012 assessment reveals that more than 400 new ventures have been started by members of Impact Hub while current initiatives have created more than 1,500 new jobs and generated solutions in the many diverse fields of their activity. Members felt inspired to take positive actions, connected to a supportive community and enabled in their own journey of creating positive impact. Modern yet comfortable, our spaces foster collaboration and creativity for individuals, groups, and events alike. Our spaces are uniquely- designed creative environments that provide the infrastructure to work, meet, and learn. http://www.impacthub.net 12 MISSION July 16,2014 Tin Freundldl Impact HUB San Francisco 901 Mission St Soli 105 San Francisco, CA 94103 Tim FredreOl Reel Capital Solutions 371 Centennial Pkwy LouivAle, CO 80027 RE: Iowa City Impact HUB Tlm: MILLENNIUM We at Impact HUB are excited that lows City is seeking impact investment opportunities! The HUB is a global network of a rgan izatio ns ded hated to making a positive impact The Huh connects Impact buslness,entrepreneurs,and Investors with the common purpose of taking positive action toward achieving abetter world. There are currently mare than 50 HUBS around the globe, including nine in the United States. Of time olne, MlsslonHUB wholly owns those In San Francisco, Berkeley, New York City, PhUadelphia (and are now working oa opening up DC), and has mloorlty stake In all the US HUBS- Boston, Las Angeles, Boulder, Seattle, and Oakland. We are very pleased that lows City is interested in pursuing the presence of an impact investment incubator, and would be Interested In fu rther d La ussing leasing the office space In yo u r develop went. Please keep us apprised of the status of you r p roject, and if you have any to rther questions for me do not hesitate to ask Thank you for the opportunity, and to r thinking of the HUB. Sincerely, Tim Ftemdllcb Board Director, Impact HUB San Francisco San Frandsco -- Berkeley- NewYorkClty - Philadelphia Members ofa Netwwk ofMore than 50 fmpoctHVDs Across RveCon0nene5 Corporate Offices: 901111 Street #105, San Frandsce, CA 9410 3 1415-624-58811 www3mpacrhubnet 13 MILLENNIUM Millennium Residential • 190 residential rental units, providing an estimated $500,000 annually in property tax revenues • High quality architecture: • A grand entry plaza with glass facade • Mixture of historic and modern exterior finishes, with elegant but neutral exterior colors o Modern interior finishes throughout • Full -time , full- service management on duty 24 hours a day o Professional, nationally recognized "best in class' management company • Secure entry, electronic "key fob" locks to all units, and dozens of security cameras, ensuring safe and responsible living • Top notch amenities including: o 1,500 Professional -grade fitness center • Business center • Clubhouse including pool tables, coffee bar, big screen TV's: A truly engaging recreational and social space for recreation and interaction with millennial peers • Study lounges 0 233 parking spaces dedicated to the residential units: 203 garage and 30 surface spaces (263 spaces provided in total — 30 for office tenants) 0 12,000 square foot outdoor courtyard including high end landscaping, outdoor kitchen /barbeque areas, a gas fire pit, patio heaters for year -round use, and hot tub • Pulls students out of the surrounding residential neighborhoods and puts them closer to campus. This can the residential neighborhoods to a setting more appropriate for families. • Shortage of high - quality rental housing stock in relation to peer cities with tier -one universities • A mixture of studios, 1- bedroom, 2- bedroom, and 3- bedroom units, catering to young millennials. The target renter is a blend of young professionals (undoubtedly some of which will work downstairs in the Millennium office space), students, and staff /faculty of the University. Millennium Affordable Residential • 20 units will be offered at low- income housing standards of 80% of Area Median Income • The developer is not requesting any City incentives subsidize the affordable residential component of Millennium Residential Unit Mix Low- Income 80 %AMI Market Rate Total Studio - 15 15 1 Bedroom, 1 Bath 15 - 15 2 Bedroom, 2 Bath 5 115 120 3 Bedroom, 3 Bath - 40 40 Total 20 170 190 of Total Units 10.5% 89.5% Millennium Plans Le MILLENNIUM Level 1 Level 2 15 MILLENNIUM Level 3 Level 4 -8 16 MILLENNIUM Millennium Renderings Looking Southeast from Court Street Looking West Through Paza, South of Office Space Looking Southwest from Courth Street 17 MILLENNIUM Project Management & Ownership • Owner: RCS — Millennium Iowa City, LLC • Equity Financing/Owner of the holding company (above) 0 100% Marcel Arsenault (CEO & Founder of Real Capital Solutions), or a to -be- determined investment vehicle owned 100% by Marcel Arsenault o As of year -end 2013 (last financial statement), Marcel Arsenault maintains over $123 million in liquid assets and a net worth of $462 million • Debt — Construction Financing • Construction loan personally guaranteed by Marcel Arsenault • Access to construction financing is readily available for Real Capital Solutions investments. We currently maintain loan capacity of more than $1 billion between our different lending relationships (lender references below), including most of the major national lenders. o Impeccable reputation with our real estate lenders (reference list below) • Competitive Advantage: Real Capital Solutions has the unique ability to finance, develop, and manage a proiect from start to finish. No additional resources are required for successful proiect completion, since the equity is internal, the construction financing is readily available, and we have a full- service team of 80 employees. Contact Title, Firm Phone Peter F. C. Armstrong Vice President, Commercial Real Estate, TCF Bank (720) 200 -2461 Jane Reed Sr. Vice President, 1P Morgan Chase Bank (303) 244 -3019 Todd Grover Sr. Vice President and Manager, Compass Bank (303) 217 -2224 Steve Bye Exec. Vice President, Sr. Managing Director, NorthMarq Capital, Inc. (303) 225 -2100 John Perkins President — Collegiate Peaks Bank (303) 481 -1301 Ralph Pace US Bank (303) 505 -4170 Wes Carrington Wells Fargo (720) 947 -6622 Contact Title, Firm Phone Robert Schuberth Principal, Schuberth Real Estate (773) 248 -3343 Conrad Schuberth Principal, Schuberth Real Estate (773) 248 -3343 Blair Richardson Principal, Bow River Capital (303) 861 -8466 Joel Pitlor CEO, Pitlor Associates (617) 549 -9255 Larry Mizel Chairman, MDC Holdings (303) 804 -7702 (If unavailable): (303) 773 -1442 Ray Baker Wayne Hutchins President & CEO, CU Foundation (303) 813 -7905 MILLENNIUM Schedule Millennium Project Schedule 8/1/2014 11/1/2014 2/1/2015 5/1/2015 8/1/2015 11/1/2015 2/1/2016 5/1/2016 8/1/2016 n Development (ruction Documents Purchase no & Excavation Project Financing • Millennium will be broken out into condominium units (legal ownership structure) for both the residential and commercial portions of the project • We are not requesting any assistance with the financing of the project: All equity and debt required for completion are available at this time Project Budget Financing Equity Debt Land Purchase $2,700,000 25% $ 675,000 75% $ 2,025,000 Residential Costs Construction Costs $24,380,577 Soft Costs $3,888,676 Total $28,269,253 25% $ 7,067,313 75% $ 21,201,940 Office Costs Construction Costs $3,188,000 Soft Costs $640,000 Total $3,828,000 35% $ 1,339,800 65% $ 2,488,200 Total Project Budget $34,797,253 $9,082,113 $25,715,140 19 CVbank. MILLENNIUM Marcel Pusenault Chairman. GEO and Fmndor Real Capital Solutions 371 Centennial parkway, Suite 200 Louisville. CO 84027 July 16, 2014 dax ma reel: As you know, US Bank has enjoyed a lon"landmg lending relationship with you dating hack to 1098. Over the last few years, our relationship has grown to an extensive nine figure tending level associated with multi pk real estate projects throughout the United States. Real Capital Solutions and you personalty, have performed as agreed on all of our loans Thank you For informing US Bank of your passible Iowa City Studeni HouainomIxed Use project We have an interest in such construction financing and look forward to further discussing the loan as the project material idea in the coming weeks. We greatly apprectate our long-aftrtdi ng relationship and look torwa rd to doing addrtional business with you and Reel Caput Solutions in the future. uabmink.eom uk Comrneraat Real Estate 20 MILLENNIUM Operating Income & Assistance • The residential component of Millennium does not require any assistance from the City of Iowa City, nor any state incentives • The office component of the Millennium does require assistance, as the operating income is not sufficient to be a financial viable project without it • We are requesting property tax abatement through inclusion in the pre- existing redevelopment area at Court Street & Linn Street. The TIF assistance will not be an up -front cash commitment to help finance the project, but will rather be a forgiveness of property tax from the office component. We are requesting a 75% property tax abatement for a 15 years period. Residential Revenues- Millennium 2014 Proj. Asking Rents 3,705,336 Gross Potential Rent 3,705,336 Vacancy (129,687) Concessions (71,513) Other Rent Loss (25,642) Bad Debt Expense (18,527) Net Rental Income 3,459,967 Other Income 288,810 Total Revenue 3,745,777 Operating Expenses Total Expenses 1,534,554 NOI 2,213,924 Office Revenues - Millennium Cap Rate 6.25% All -In Cost, Including Land $ 4,140,000 Value 35,422,776 Rent, NNN $ 12.00 Loan -to -Value 70% Total Rent, NNN - Annual $ 240,000 Max LTV Construction Loan 24,795,944 Tax Abatement $ 114,079 Loan -to -Cost 75% Income with Tax Abatement $ 354,079 Cost Residential 28,269,253 Cap Rate 8.0% Cost Residential Land 2,250,000 Off ice Value without Abatement $ 3,000,000 Total Residential Cost 30,519,253 Office Value with Abatement $ 4,425,992 Max LTC Construction Loan 22,889,440 Margin without Abatement Margin with Abatement 0.72 1.07 Max Construction Loan 22,889,440 21 MILLENNIUM EXHIBIT "A" Proposal submittal signature form The undersigned attests to hlslher 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 helshe 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, or 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 verity 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: Real Capitai Solutions Home office address: 371 Centennial Parkway, Suite 200 City, state, Zip: Louisville, CO 80027 Name and Title of Representable: Name. Marcel Arsenault, CEO Date_ 16 July 2014 7s 22 MILLENNIUM EXHIBIT "B" LISTING OF LAWSUITS OR LITIGATION WITHIN THE PAST FIVE YEARS Lawsuit or Litigation See attached Status or Outcome Pend mg Comments Sea allached 23 MILLENNIUM EXHWIT B (cont'd} Lawsuits against Real Capital Solutions, Inc.: See next page Beth lawsuits were brought by condominium homeowners' associations in connection with asserted defects in fully - constructed 4ondgminiums purchased (hut not constructed) byaifiliates of Real CapilW Solulrons, and subsequently sold to end users. Liability far construction defects r2sts with the original develaperstuilders of the condominiums. Real Capital Solutions played no role in the development or construction of the condprnlhium units — it simply purchased and sold the units as is Ihorefvre named m these lawsuits. 24 MILLENNIUM DIS7T11CT COLZr, COUNYY OF IEFF MZ9C i, SPATS OF CQUIRADO r�son Cctm6ined Court 100 !effmalk Cmmty paskv cold®, CO 88491 1•laliiiff: hdAPL$ LEAF CONDOMINIUM AS$OCIA716N, ING, a Colaredo Nonp"m Corpoffdoa Dehmdmter D.R. HORTON, Wa — DENVfM, a Delaware Cm?w=nq REAL CAi7AL SOLUTIONS. INCn, s Caiatado Corporation; CCS — MAP[ LEAF L LLC, it COURT USE ONLY t',o€grado L,imitedLlab ty Comp>my. Atlorocye For ptsinti Miehad A. Hem C� Numb= roshua �. liitYpatricfp McKtx aw Rhp# & Reara, LLC }y YFYAS1Mu 18437 Park Mtado� Drive BuLk ing E, Suite 1 d1 l.00e Trek CO 80124 Ph=Number- [343) 561 -0750 Ally. kce . No.; 31886 Atty-Rep:. No.; 37776 YI A7lf' WVS. COSiFL RII AND JURY DEMAND Plabliff MAPLE LEAF OUNDCUNKN ASSOCIA710N, M. (hmeimdler She 1AS30CLk7TON "j, a Cvlm4v omprofa corpmuL6 m, XAug dimugh ire Board of Direaim and duoagb its sttamcp , iblClrio m6lbody & Heern, LLC, hereby cmnpleim on ih awn hehelf anti, pursuant t4 C-TZS. $ 38- 33.3 -302. op bchdf Df its Menbats agar the Flrfeodants, and Bch of Iharn,aa Sottovrs THY MOMKI AND TDR EAR 1. 71M Plaintiff is the A530CiA710N, ading by and through ils Hoard of Dirwbm The ASSOCiAT10N is tDd aC all rnlm= tb= W been a mrpotstim oWnimd end wJAtn$ wpja, and by virtu6 pi the CDkm dD Re'7sPd Nonprofit Coipm-mEan A" (C.R.3. Title 7, Aracies 121 -in w wall as the Cokutxlo Common bmmrt OwneraMp Act (Ca& § 38- 33.1 -191 er sq.) (" C ONO OTIM31i to Pm k minagan= uu�nt=mzc, PvsaTwm. oarlaaL and opmwn pf thid ce[taln Gowlmm= project lucaCed in the Cmuq of 25 WSTRICT COURT, COUNTY OF ARAPAHOS, STATE OF COLORADO Court Address: 7325 S. Potomac 12 EALTERRA CONDOMINIUMS ASSOCIATION, iNC., a Colorado Hari-profit earpormiean, on ilia oxm 6ohalf, and on beWf of its mambas DEFENDANTS: CCS BALTERRA 1, LLC, a Colorado Limited Lisbilify Campanyj AMENAULT HOLDIN{1S, LLC, a Colorado Limited Liability Comparty; and REAL CAPITAL SOLUTIONS, INC_ a Colarjuii7 corporation_ MILLENNIUM A COURT USE ONLY A Attomey, Benson, Karane, Steez & Ne150n, p.C, Case No.: 2014CY4}p529 Name: .kffrcy p, Kwane Div_ Ashley IL Hill Address: 110 N. Rubry Drive, Ste, 200 Golden, CO 96403 phoiwNo.: (724) 898 -96H Fax Nn_: (720) 846 -9681 E -mmij: jkermne[?bensoapc.wm ah i l]� b e rrs P n 7d . P t>sn Affy. jam. No.: 34546 44900 SUMMONS � TO THE ABOVIZ NAMED DEFENDANT: CCS 13ALTERRA I. LLC UP Columdu &. soma Fe Reu! F601R Co-mpany — Regielxred Agent 371 Cimtenrdal Patkw4y, #200 Louisville, 06 SO027 YOU ARE HEREBY SuramONED end required to Pre with the Clerk of this Court en tuism or tither response tb the attached Complaint. If serujce or the Summom and 100*wlaim wns made upon You within the Sme of Colorado. you ere laquirao bi file your answw or outer remrMpw within 21 days slier suds service uper. vmi. I earwce of the 5umrnma end Complaint wax made upon you awtlde of the State of Colorado, yri tv required to file your answer or ohm regMy a wi0h 35 days after such service upon you. Your mmwcT or eountnr:lalm roust be acmmtpamied wiM ale apo itdbje filing Fee. If ydu fail w fra your answer or ether r p,] tse to the Coanplsint in wittin¢ within the applicable tlme period, the Caun tr eltterjudgment by defnuk egoinil You Fm the relief dewommd in ale m wth `- +��yaI i DIt fZlnitai lmlP. *No members of the development team or principals have been convicted or charged of a felony. 26 Marian Karr IP7 From: Geoff Fruin Sent: Friday, October 24, 2014 4:09 PM To: Kelli Andresen; Tom Markus; Simon Andrew Cc: Shannon McMahon; Marian Karr Subject: RE: Iowa Initiative for Sustainable Communities presentation Thanks Kelli. I will plan to attend. Marian, can you please forward the invitation to the Council per the UI's request? represented. Thanks, Geoff From: Kelli Andresen Sent: Friday, October 24, 2014 3:27 PM To: Tom Markus; Geoff Fruin; Simon Andrew Cc: Shannon McMahon Subject: Iowa Initiative for Sustainable Communities presentation As you know, the Communications team has been working with a class from the UI School of Journalism and Mass Communication as part of the City's partnership with the Iowa Initiative for Sustainable Communities (IISC). The class is working in teams to come up with a marketing /communications campaign to enhance our reputation as a sustainable city nationally, regionally and locally. So far, the group seems quite creative and hardworking and we're looking forward to seeing the results of their work. Each team will present their ideas to us, as well as a group of strategic communication advisers, from 12:30 to 2:30 p.m. on Wednesday, Dec. 17 in the Brownell Boardroom, E254 Adler Journalism Building. They have requested that we invite the City Manager's Office, as well as City Council. If you are available, please add this to your calendars. Could you also extend the invitation to Council? It's not necessary for them all to attend, but it would be nice to have some Council presence. Please let Shannon or I know if you have any questions. Thanks, Kelli MEN mom SHOP MALL 1 1. ppPW-MA1 X11111 PUBLIC ACCOMMODATION: EACH AND EVERY PLACE, ESTABLISHMENT OR FACILITY OF WHATEVER KIND, NATURE OR CLASS THAT CATERS OR OFFERS SERVICES. FACILITIES OR GOODS TO THE GENERAL PUBLIC FOR A FEE OR CHARGE. Presented by Tom Good, A Consultant and Civil Rights Specialist with over 25 years of Training Experience. The program is free and open to the public, but pre - registration is required email humanrights@jowa-city.org or call 356 -5022 to register. The program is ideal for service providers, store owners /managers, restaurant owners/ managers, hotel owners /managers, mall management as well as the general public to understand and learn your rights. Sponsored by the Human Rights Commission www.icgov,org/humanrights ~ - *A,t CITY OF IOWA CITY MEMORANDUM Date: October 27, 2014 To: Geoff Fruin, Assistant City Manager From: Brenda Nations, Sustainability Coordinator Re: Mayors Climate Protection Agreement signature submitted As directed, I submitted the electronic form the new 2014 revised Mayors' Climate Protection Agreement and listed myself as a contact. The submittal was accepted, but verification emails are not sent by the website. After speaking with the coordinator for the website, in January there will be a media release with a list of the mayors who signed the revised agreement. More information will be available at that time. Cc: Doug Boothroy, Neighborhood and Development Services Director r _ 'P10 CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240 -1826 (3 19) 3S6 -5000 (319) 356 -5009 FAX www,icgov.org October 21, 2014 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Electronics Technician Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Electronics Technician. Brian Goerdt IOWA CITY CIVIL SERVICE COMMISSION Lyra Dickerson, Chair 10 -30 -14 IN I joint Meeting Johnson County Board of Supervisors - Iowa City Community School District - City of Iowa City - City of Coralville - City of North Liberty - Other Johnson County Municipalities and School Districts Monday, October 27, 2014 North Liberty City Hall Minutes Call to order North Liberty Mayor Kuhl called the joint meeting of Johnson County entities to order at 4:30 p.m. Elected officials present: City of Coralville - Jill Dodds, Laurie Goodrich, Bill Hoeft and Mitch Gross; City of Iowa City - Mayor Matt Hayek, Kingsley Botchway, Jim Throgmorton, Susan Mims, Terry Dickens and Michelle Payne; City of North Liberty - Mayor Gerry Kuhl, Terry Donahue, Dave Moore, Coleen Chipman and Brian Wayson; City of Solon - Brad Kunkel; Johnson County - John Etheredge, Pat Harney, Rod Sullivan and Janelle Rettig; Iowa City Community School District - Tuyet Dorau, Chris Lynch, Brian Kirschling and Jeff McGinness; City of Swisher - Mayor Christopher Taylor. Discussion /update items Liberty High School Water /Sewer Extensions and development /road plans North Liberty City Administrator Ryan Heiar presented information regarding the planned projects in support of the development of Liberty High School. North Liberty is working closely with the city of Coralville and the School District. North Liberty's infrastructure projects relating to the school project will be bid in February 2015. Highway 965 Project Update Heiar provided an update on the Highway 965 Project. The entire roadway will be open during the winter. Coralville City Administrator Kelly Hayworth provided an update on the Coralville 965 project. There will be no construction during the winter. School developments Iowa City Community School District Superintendent Steve Murley presented updates on school developments. Liberty High School will be a three stage construction project with the first phase housing 1,000 students, the second phase will be the outside work and the third phase will be the additional accommodations for another 500 students. The Liberty High School project will be beginning in the spring of 2015 when the frost comes out of the ground. The new elementary on the south side of Iowa City will be opening at the start of the 2015 school year. The new elementary schools in Coralville and on American Legion Road will open in 2019. The district plans to have the attendance boundaries completed by the end of the school year. Doug Boothroy, City of Iowa City Neighborhood and Development Services Director, presented an updated on the south area neighborhood plan for Iowa City. Tim Kuehl, Superintendent of the Clear Creek Amana Community School District, reported that a new elementary is under construction that will be opening in August 2015. The middle school addition is also projected to open August 2015. Courthouse Annex Bond Referendum Johnson County Supervisor Pat Harney presented information regarding the Courthouse Annex Bond Referendum on the ballot on November 4. Legislative issues and priorities for 2015 Johnson County Supervisor Janelle Rettig shared that Linn County and the Linn County urban cities come together to hire a lobbyist to advocate jointly on issues. Johnson County's priorities are infrastructure and the legislature limiting funds to counties. Iowa City Mayor Hayek reported that Iowa City's priority is the multi residential taxation class limitations on revenues. Opportunities for collaboration and communication Rettig commented that the County Supervisors held a joint meeting with the Swisher City Council and will be meeting with North Liberty in November. She encouraged all cities to have joint meetings with the Supervisors. ICCSD Letter to Municipalities: Inclusionary Zoning Iowa City School Board President Chris Lynch offered some background on the letter sent to the cities regarding inclusionary zoning. The group discussed a variety of issues relating to housing and affordability. The consensus through the discussion was to have each jurisdiction discuss the issue with help from Tracey Achenbach from the Johnson County Housing Trust Fund and the Affordable Homes Coalition. After individual entities have determined their own implementation methods, all would come together to share and possibly discuss further. Community IDs Mayor Kuhl provided an update on the most recent meeting held on Community IDs. Rettig provided additional information on the community ID program. Emerald Ash Borer plans and strategies Iowa City Forestry Superintendent Zachary Hall provided information for the group on the Emerald Ash Borer (EAB) issue. The state has hired a new urban forest specialist for eastern Iowa that will serve as the EAB educator. Swisher Mayor Chris Taylor presented information on Swisher's tree survey. EAB was discussed generally. General entity updates The Johnson County update was presented by Supervisor Rettig. Johnson County is providing early voting at numerous locations including the North Liberty Community Center and at high school football games. In response to the Hunger Forum held recently, the County initiated county -wide hunger meetings. The meetings are facilitated by Johnson County Social Services Lynette Jacoby. The next, and final, two meetings will be held on November 18 and December 8 at 4 p.m. at the Health and Human Services Building. Attendance is by self- invitation. North Liberty's update was offered by Mayor Kuhl. The North Liberty Food Pantry has received a grant for a community garden. Rettig reported that the County is working on using the poor farm for gardens for feeding the community. Next meeting date and time The next meeting with be hosted by Iowa City on Monday, January 26, 2015 with the social starting at 4 p.m. and the meeting at 4:30 p.m. Public comment Amy Nielsen from the Board of the North Liberty Community Pantry reported that the Pantry has received a grant of $38,000 and needs a donation of $38,000 to match. Nielsen asked for cities to put money in their budget to create a county wide mobile mental health response team. Adjournment The meeting was adjourned at 5:52 p.m. Marian Karr From: Tracey Mulcahey <tulcahey @northlibertyiowa.org> Sent: Wednesday, October 29, 2014 4:00 PM To: Michon Jackson; Marian Karr; Tom Markus; Thor Johnson; Kelly Hayworth; Ryan Heiar; 'Cami Rasmussen; Kim Colvin; Irobertson @cca.k12.ia.us; sups @co.johnson.ia.us; Tim Kuehl Cc: Kent Ralston Subject: FW: Joint Meeting - Requested Materials Attachments: AffordableHousingUpdate - 09222014.pdf Good afternoon. Kent Ralston is sending the attached based on the request for information on Monday evening at the joint meeting. If you have questions about this, please let Kent know. Thanks. Tracey Mulcahey Assistant City Administrator /City Clerk City of North Liberty, Iowa 3 Quail Creek Circle P.O. BOX 77 North Liberty, IA 52317 319.626.5712 — phone Note the email address change.... tmulcahey@northlibertyiowa.org Please remember that items sent and received on this account may become public record. From: Kent Ralston [mailto :Kent - Ralston @iowa - city.org] Sent: Wednesday, October 29, 2014 3:26 PM To: Tracey Mulcahey Subject: Joint Meeting - Requested Materials Hi Tracey — if you could please distribute this correspondence to those that were responsible for organizing the `Joint meeting' on Monday it would be much appreciated. Update to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area September 2014 -1/"M""10- a11�.P Metropolitan Planning Organrsatty 410 E Washington St. • Iowa City. la $2240 Housing frost Fund johnSnnt County Prepared by the Metropolitan Planning Organization of Johnson County ( MPOJC) and the Housing Trust Fund of Johnson County ( HTFJC) Kent Ralston, Director, MPOJC Kris Ackerson, Asst. Transportation Planner Brad Neumann, Asst. Transportation Planner Darian Nagle -Gamm, Traffic Engineering Planner Kelly Davila, Transportation Planning Intern David Sweeney, Transportation Planning Intern Tracey Achenbach, Executive Director, HTFJC Table of Contents List of Tables and Figures iv Introduction 1 Existing Conditions 2 Population and Demographic Data 2 Economic and Employment Data 6 Poverty 6 Free and reduced lunch program 7 Employment 9 Distribution of income 11 Median household income 12 Income by age of householder 13 Basic Housing Trends 17 Household composition 18 Owner - occupied versus rental 18 Housing stock 19 Building permits 20 Housing vacancy 21 Housing Costs and Cost Burden 22 Renter 22 Homeowner 24 Income versus housing cost 26 Cost burden illustrated 28 Conclusion 30 Strategies to Increase Affordable Housing Opportunities 30 Figures Figure 1 Population trends, 2000 -2012 2 Figure 2 Projected population growth 3 Figure 3 Population distribution by age group, 2012 4 Figure 4 Families in poverty —number and percentage 6 Figure 5 ICCSD FRL program — proportion and total participants 7 Figure 6 Employment and mean salary by sector 10 Figure 7 Income distribution by jurisdiction, 2012 11 Figure 8 Median household income, 2000 -2012 12 Figure 9 County income distribution by age group, 2007 13 Figure 10 County income distribution by age group, 2012 14 Figure 11 Owner- occupied and rented units 18 Figure 12 Growth in single and multifamily housing units, 2000 -2012 19 Figure 13 Total building permits issued, 2007 -2013 20 Figure 14 Vacancy rates by jurisdiction 21 Figure 15 Proportion of cost - burdened renters by jurisdiction 22 Figure 16 Median housing value for owner - occupied units 24 Figure 17 Proportion of cost - burdened owners by jurisdiction 25 Figure 18 Percent change in median housing value and median household income by 26 jurisdiction, 2000 -2012 Figure 19 Median gross housing costs as a percentage of household income 26 Figure 20 Median gross rent versus 30 percent monthly wages by selected industries 28 Figure 21 Percent monthly wage needed to pay median rent for selected industries 29 Tables Table 1 Historical population trends 2 Table 2 Population distribution by age group, 2012 4 Table 3 Population distribution by race and ethnicity for the urbanized area 5 Table 4 FRL data by school year, ICCSD 8 Table 5 Unemployment in civilian labor force, by region, state, and nation 9 Table 6 Median household incomes by jurisdiction 12 Table 7 Income distribution by age of householder by jurisdiction, 2012 15 Table 8 Non- family households 17 Table 9 Households with children 17 Table 10 Regional growth in housing stock, 2000 -2012 19 Table 11 Annual breakdown of building permits issued, 2007 -2013 20 Table 12 Cost - burdened renters by region, county, and state 23 Table 13 Severely cost - burdened renters by region, county, and state 23 Table 14 Cost - burdened homeowners by region, county, and state 25 Table 15 Severely cost - burdened homeowners by region, county, and state 25 Table 16 Change in median gross rental costs by jurisdiction, county, and state 28 iv Introduction This document provides an update to the Affordable Housing Market Analysis completed by Mullin & Lonergan Associates in 2007. This document is not intended to be a replication of that analysis, but rather to compare socio- economic conditions and housing needs of 2007 to today, and to discuss strategies to help meet identified needs. This update to the 2007 analysis was requested by the Metropolitan Planning Organization of Johnson County's ( MPOJC) Urbanized Area Policy Board, which ultimately led MPOJC staff to work with the Housing Trust fund of Johnson County to develop this report. The 2007 document is intended as a point of departure. However, data for the year 2007 is largely unavailable for our community since the American Community Survey (ACS) had only begun to standardize their data collection in 2005. Therefore, data used in the generation of the this document is largely derived from Census estimates, primarily Census 2000 and ACS 2008 -2012 3 -Year and 5 -Year estimates. Additionally, county, state, and national data are used to provide broader context as appropriate. Census data was preferred to local data sources because it maintains consistent methodology and statistical rigor. 1 Existing Conditions Population and Demographics From 2000 to 2007, the population of the urbanized area grew from 84,672 to an estimated 91,339, a 7.9 percent increase. The population has grown more rapidly since the 2007 study was released, increasing to an estimated 103,800 by 2012, a 13.6 percent change. Suburban communities continue to grow the fastest, with the population of Tiffin growing by 90 percent and the population of North Liberty growing by 148 percent since 2000. Figure 1 POPULATION TRENDS, 2000 -2012 100% r 80% 60% 40% 20% _. ....._ 0% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY URBANIZEDAREA JOHNSON HEIGHTS COUNTY ■ Population in 2000 ■ Population growth, 2000 -2012 Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) Historical trends reflect the trajectory of suburban population growth. Across Iowa, populations in rural counties generally decline, while metropolitan areas gain in population. The population of Johnson County increased 18 percent between 2000 and 2010, compared to the state's 4 percent increase in population during the same period. Table 1. Historical population trends CORAL- YEAR • .• . TIFFIN VILLE CITY LIBERTY HEIGHTS AREA COUNTY 1960 2,357 33,443 334 311 1 841 1 37,952 I 53,663 2,757,537 1970 6,130 46,850 1,055 299 55,599 72,127 2,824,376 1980 7,687 50,508 2,046 413 69 61,723 81,717 2,913,808 11,265 1990 10,347 59,738 2,926 460 42 74,513 96,119 2,776,755 2000 15,123 62,220 5,367 975 7 84,672 111,006 2,926,324 2010 18,907 67,862 13,374 1,947 51 103,141 130,882 3,047,646 Source: U.S. Census Bureau (1960 -2010 Decennial Censuses) 2 Over the next 25 years, MPOJC projects that population will continue to grow in every jurisdiction except University Heights. By 2040, the population of the urbanized area is estimated to grow by 39 percent to 144,600, up from 103,800 in 2012. The majority of this growth will be concentrated in the suburban municipalities. Figure 2 PROJECTED POPULATION GROWTH 200,000 175,000 150,000 125,000 100,000 182,200 Source: ACS 2012 Population Estimates; MPOJC Long -Range Transportation Plan, Population Projections (based on decennial Census data) 3 79,500".,, 75,000 50,000 _P. 31,900 7 28,100 25,000 18,9 r 13 1,,8585 7 4,100 1,318 1,000 _ CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY URBANIZED JOHNSON HEIGHTS AREA COUNTY 1 - 2012 ■ 2020 ■ 2030 ■ 2040 Source: ACS 2012 Population Estimates; MPOJC Long -Range Transportation Plan, Population Projections (based on decennial Census data) 3 Due to the large student population at the University of Iowa, the urbanized area has proportionally more residents between ages 18 and 24 than other urbanized areas in the state. However, each jurisdiction has a slightly different age composition. Nearly half of the population of Iowa City and more than 44 percent of the urbanized area population are under age 25. Coralville's population reflects its large number of family households, with proportionally more children than the urbanized area average. The age distributions of North Liberty and Tiffin are similar, as Figure 3 illustrates. Table 2. Population distribution by age group, 2012 NORTH AGE CORALVILLE IOWA CITY LIBERTY HEIGHTS AREA COUNTY <10 2,825 5,658 2,413 311 192 11,399 15,058 10 to 17 1,591 4,427 1,067 213 42 7,340 10,909 18 to 24 2,466 23,134 1,155 115 391 27,261 28,862 25 to 34 3,613 11,252 3,836 419 296 19,416 22,169 35 to 44 2,861 6,025 2,379 276 68 11,609 15,115 45 to 54 2,083 6,734 1,167 198 104 10,286 15,037 55 to 64 2,032 5,581 884 191 108 8,796 13,132 265 1,460 5,553 429 134 117 7,693 11,345 TOTAL 18,931 68,364 13,330 1,857 1,318 103,800 131,627 Source: U.S. Census Bureau, (ACS 2008 -2012 5 -Year Estimates) Figure 3 POPULATION DISTRIBUTION BY AGE GROUP, 2012 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CORALVILLE IOWA CITY r% U. 8% i i NORTH LIBERTY i TIEPIN r'. " UNIVERSITY HEIGHTS r' I URBANIZED AREA r JOHNSON COUNTY r' ■ Less than 10 ■ 10 to 17 ■ 18 -24 ■ 25 -34 ■ 35 -44 ■ 45 -54 ■ 55 -64 65 and over Source: U.S. Census Bureau, (ACS 2008 -2012 5 -Year Estimates) 4 Overall, the population of the urbanized area has become more racially diverse since the 2000 Census. Since 2007, however, growth has slowed among Black and Asian populations. Meanwhile, the Hispanic population is growing more quickly. Table 3. Population distribution by race and ethnicity for the urbanized area Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 - 20125 -Year Estimates) Economic and Employment Data Poverty The U.S. Census Bureau collects data on individuals in poverty by comparing family incomes to thresholds established by the federal government, which are adjusted annually for inflation. The 2012 poverty thresholds are defined as $11,720 for a single person and $23,492 for a family of four. The number of families in poverty increased in all of the communities in the urbanized area, with the exception of Coralville. The poverty rate in Iowa City is high compared to the rest of the urbanized area. This is not surprising given the large number of students who typically have low incomes but may be partially or fully supported by their families. Figure 4 12% 10% 8% 6% 4% 2% 0% FAMILIES IN POVERTY - NUMBER AND PERCENTAGE CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY URBANIZED JOHNSON HEIGHTS AREA COUNTY 02000 ■ 2012 Source: U.S. Census Bureau, (2000 Census and ACS 2008 - 20125 -Year Estimates) 2 Free and Reduced Lunch Program Schoolchildren whose families' incomes fall below the poverty line are eligible to participate in a free and reduced lunch program. The total number of students in the Iowa City Community School District (ICCSD) enrolled in the free and reduced lunch program (FRL) has nearly doubled since 2003. While school district boundaries do not align with the jurisdictional boundaries used for the purposes of this report, free and reduced lunch data gives a general sense of economic assistance needed in the metro area. Between 2000 and 2012, the number of households with children in Johnson County increased 14 percent (See Table 9), but the number of FRL participants increased 98 percent. Figure 5 35% 30% 25% 20% 15% 10% 5% 0% Source: Iowa City Community School District 7 ICCSD FRL PROGRAM - PROPORTION AND TOTAL PARTICIPANTS 3,143 3,139 2,109 2,394 2,452 2,272 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Table 4. Free and reduced lunch program data by school and year, ICCSD Source: Iowa City Community School District 2000 2007 2013 TOTAL TOTAL FUR TOTAL TOTAL FLR TOTAL TOTAL FUR SCHOOL ENROLLED FLR RATE ENROLLED FLR RATE ENROLLED FLR RATE ELEMENTARY •• BORLAUG N/A N/A N/A N/A N/A N/A 323 85 26.3% CVL CENTRAL 458 129 28.2% 448 123 27.5% 421 141 33.5% GARNER N/A N/A N/A N/A N/A N/A 491 103 21.0% HILLS 164 84 51.2% 152 82 54.0% 108 69 63.9% HOOVER 275 29 10.6% 306 36 11.8% 354 91 25.7% HORN 303 24 7.9% 294 39 13.3% 454 130 28.6% KIRKWOOD 366 132 36.1% 441 211 47.9% 328 236 72.0% LEMME 273 58 21.3% 283 49 17.3% 364 93 25.6% LINCOLN 256 3 1.2% 256 4 1.6% 238 14 5.9% LONGFELLOW 276 42 15.2% 284 31 10.9% 330 65 19.7% LUCAS 420 134 31.9% 426 153 35.9% 433 234 54.0% MANN 261 131 50.2% 249 116 46.6% 245 136 55.5% PENN 331 71 21.5% 391 97 24.8% 504 122 24.2% ROOSEVELT 248 107 43.2% 298 139 46.6% N/A SHIMEK 224 13 5.8% 220 15 6.8% 199 26 13.1% TWAIN 295 192 65.1% 220 147 66.8% 266 209 78.6% VAN ALLEN 284 72 25.4% 487 100 20.5% 467 93 19.9% WEBER 493 73 14.8% 494 50 10.1% 476 167 35.1% WICKHAM 435 22 5.1% 452 24 5.3% 479 34 7.1% WOOD 432 198 45.8% 486 239 49.2% 529 408 77.1% MIDDLE r JUNIOR HIGH SCHOOLS NORTH CENTRAL N/A N/A N/A 308 44 14.3% 461 92 20.0% NORTHWEST 907 173 F179 19.1% 620 154 24.8% 643 205 31.9% SOUTHEAST 677 26.4% 660 189 28.6% 749 328 43.6% SCHOOLS HIGH CITY HIGH 1,542 234 15.2% 1,359 242 17.8% 1,413 503 35.6% WEST HIGH 1,754 268 15.3% 1,838 316 17.2% 1,939 478 24.7% TATE HIGH 69 26 37.7% 119 63 52.9% 146 111 76.0% DISTRICT TOTAL 10,743 2,394 22.3% 1 11,091 1 2,663 24.0% 12,360 4,173 33.8% Source: Iowa City Community School District 10 § � � . ®�« .64 �\ \ ; ° � \. ( � � & ( / .� \ +1 . f� \� ( ' 4. ` *� |] � - � \ 10 Distribution of Income Distribution of household income is a good indicator of how income varies with respect to location and may help jurisdictions better understand their affordable housing needs. Figure 7 illustrates income distribution by jurisdiction. The proportion of households with income between $75,000 and $150,000 in each jurisdiction was very similar in 2012, although University Heights had a much higher percentage of households earning $150,000 or more. Compared to the other communities in the area, Iowa City had a much higher percentage of households earning less than $20,000, likely due to the large student population. Figure 7 INCOME DISTRIBUTION BY JURISDICTION, 1 $150,000 1 111 11 111 111 1 111 1 111 1 111 1 111 •.• • •• 11.2% 4.5% 3.8% 15.9% 12.2% 10.3% 14.6% 16.1% 11.2% 11.6% 11.8% 12.9% 11.6% 14.0% 14.3% 19.7% 15.6% 18.6% 18.2% 16.5% 17.3% 19.4% 10.1% 17.1% Source: U.S. Census Bureau (ACS 2008 -2012 5 -Year Estimates) 11 Median Household Income The 2007 market study reported a slight increase in real median household income throughout the urbanized area between 2000 and 2007. When adjusted for inflation, median household incomes dropped by nearly 7 percent between 2000 and 2012. By jurisdiction, median household incomes dropped 12.4 percent in Iowa City, 16.2 percent in Tiffin, and 12.5 percent in University Heights from 2000 to 2012. During the same period, median household incomes increased by 7.9 percent in Coralville and 0.6 percent in North Liberty. Table 6. Median household incomes by jurisdiction YEAR CORALVILLE IOWACITY NORTH TIFFIN UNIVERSITY URBAN JOHNSON LIBERTY HEIGHTS AREA COUNTY 2000 $52,479 $48,202 $58,570 $58,406 $67,430 $57,017 $55,207 2012 $56,635 $42,220 $58,904 $48,929 $59,018 $53,141 $53,993 Source: U.S. Census Bureau (2000 Census and ACS 2008 -012 5 -Year Estimates) Figure 8 MEDIAN HOUSEHOLD INCOME, 2007 -2012 $58,000 $57,017 :' $ss,z07 �.{ $54,585 $53,993 $54,392 $53,000 $53,141 ,�'`�, ;a $51,379 $51,129 `? t; $50,347 $48,000 ^',E,; Y. sjx�1 amti V $43,000 Zvi Kx a G $38,000 °x� .;• URBANIZED AREA JOHNSON COUNTY IOWA t' 2000 ■ 2007 ■ 2012 Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 -012 5 -Year Estimates) 12 Income by Age of Householder Showing income distribution by age of householder can help identify which segments of the population may be most impacted by housing costs. Figures 9 and 10 show income distribution by age for 2007 and 2012. A common misconception in Johnson County is that the majority of the lowest income households are comprised of students. However, in 2007, the majority of households in the county earning less than $20,000 (approximately 6,000 out of 10,938) of had a householder over the age of 25. This proportion increased in 2012. Figure 9 COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2007 i $150,000 1,199 2,13S 333 * $150,000 157 2,289 2,949 411 *$100,000 121 3,026 ', * $75,000 678 4,833 2,977 980 * $50,000 394 2,273 1,702 * $40,000 702 2,053 0' * $30,000 1,161 1,893 11108 931 * $20,000 4,693 3,175 1,341 1,459 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ■ Under 25 ■ 25 -44 ■ 45 -64 ■ 65+ Source: U.S. Census Bureau (ACS 2005 -2007 3 -Year Estimates) 13 Figure 10 COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2012 �23 1,396 2,925 506 < $150,000 < $100,000 < $75,000 < $50,000 < $40,000 < $30,000 < $20,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ■Under25 025 -44 045 -64 ■65+ Source: U.S. Census Bureau (ACS 2008- 20125 -Year Estimates 14 When income distribution by age is examined for each community, Iowa City has the highest proportion of households with income below $20,000. This is true even when the households with a householder under age 25 are discounted. In Iowa City, 4,289 of 20,985 households (20.5 percent) with a householder age 25 or older have a household income less than $20,000. For the remaining municipalities, that proportion is under 10 percent. In total, there are 5,618 urbanized area households with a householder over the age of 25 and income less than $20,000. Table 7. Household income distribution by age of householder by jurisdiction, 2012 CORALVILLE rider 25 5 64, Total % Total % Total % Total % < $20,000 463 49.7 350 10.0 247 10.0 123 14.7 <$30,000 87 9.3 461 13.2 78 3.2 133 15.9 < $40,000 120 12.9 229 6.5 190 7.7 91 10.9 < $50,000 99 10.6 398 11.4 148 6.0 61 7.3 <$75,000 110 11.5 692 19.8 598 24.2 118 14.1 < $100,000 21 2.3 SSO 16.6 376 15.2 155 18.5 < $150,000 31 3.3 446 12.7 380 15.4 89 10.6 2 $150,000 0 0.0 343 9.8 455 18.4 68 8.1 Total <$20,000 931 3692 100 3499 100 IOWA CITY 25.3 2472 1003 100 13.3 838 850 100 22.1 <$30,000 1117 9.9 411 5.5 608 15.8 <$40,000 387 8.1 438 5.8 241 6.3 <$50,000 405 F6.1775 9.8 718 9.5 386 10.0 <$75,000 485 19.2 1150 15.3 759 19.7 <$100,000 161 11.7 1132 15.0 365 9.5 <$150,000 34 10.5 1440 19.1 334 8.7 2 $150,000 23 0.4 520 5.4 1235 16.4 303 7.9 Total < $20,000 6309 125 100 25.7 9612 NORTH 212 100 LIBERTY 5.8 7527 146 100 11.3 3846 152 100 39.6 < $30,000 33 6.8 319 8.7 90 7.0 112 29.2 0.0 181 <$40,000 141 29.0 284 7.7 149 486 11.5 17 4.4 1291 100 <$50,000 68 14.0 390 10.6 142 11.0 32 8.3 <$75,000 42 8.6 685 18.6 306 23.7 57 14.8 <$100,000 77 15.8 898 24.4 146 11.3 14 3.6 < $150,000 0 0.0 709 19.3 234 18.1 0 0.0 F Source: U.S. Census Bureau (ACS 2008 -2012 5 -Year Estimates) 15 $150,000 0 0.0 181 4.9 78 6.0 0 0.0 Total 486 100 3678 100 1291 100 384 100 Table 7. (Continued) Income distribution by age group by jurisdiction Source: U.S. Census Bureau (ACS 2008 -2012 5 -Year Estimates) 16 Under25 25 -44 45 -64 65+ Income Total % Total % Total % Total % * $20,000 14 25.0 31 7.6 9 3.4 10 11.0 * $30,000 0 0.0 21 5.1 23 8.7 25 27.5 * $40,000 12 21.4 72 17.6 55 20.9 28 30.8 * $50,000 0 0.0 88 21.6 31 11.8 11 12.1 * $75,000 12 21.4 70 17.2 57 21.7 10 11.0 < $100,000 18 32.1 84 20.6 11 4.2 3 3.3 <$150,000 0 0.0 30 7.4 58 22.1 4 4.4 50,000 0 0.0 12 2.9 19 7.2 0 0.0 l 01$'20,000 56 100 408 100 25 -44 263 100 91 100 65+ me - Total % Total % Total % Total % 64 47.4 41 20.9 2 1.8 6 8.2 * $30,000 31 23.0 8 4.1 2 1.8 16 21.9 * $40,000 22 16.3 2 1.0 0 0.0 12 16.4 < $50,000 4 3.0 13 6.6 3 2.7 3 4.1 < $75,000 10 7.4 41 20.9 25 22.1 9 12.3 * $100,000 0 0.0 47 24.0 10 8.8 4 5.5 * $150,000 4 3.0 26 13.3 18 15.9 12 2 $150,000 0 0.0 18 9.2 53 46.9 11 V!: Total 135 100 196 100 113 100 73 Source: U.S. Census Bureau (ACS 2008 -2012 5 -Year Estimates) 16 Basic Housing Trends Household Composition Non - family households are very common in the urbanized area, as many students share housing to reduce costs. In Coralville, Iowa City, and University Heights, there were proportionally fewer non - family households in 2012 than in 2000, while in North Liberty and Tiffin there were proportionally more. There was little measurable change in the overall proportion of non - family households in Johnson County as a whole. Between 2000 and 2012, the proportion of households with children decreased in all communities within the metro area with the exception of Tiffin. Table S. Non - family households Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) Households with children have different social and economic characteristics and housing needs. Factors such as location, size of housing unit, and proximity of other households with children may influence a family's decision to purchase or rent one home over another. The proportion of housing suitable for family occupancy should correspond to the proportion of families with children. Furthermore, a variety of single and multifamily units provides families with more options to make housing choices based on location. Table 9. Households with children Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 S -Year Estimates) 17 Owner - Occupied versus Rental Units Communities generally maintain a 3 -to -1 ratio of owned to rental units. The urbanized area as a whole has nearly a 1 -to -1 ratio. This is not surprising given the large student population in Iowa City. From 2000 to 2012, the proportion of owner - occupied properties increased in the urbanized area and the county. Coralville and Iowa City have higher proportions of rental properties than the other jurisdictions. Tiffin has expanded its proportion of owner- occupied units, while North Liberty and University Heights have reduced their proportions of owned units. Figure 11 OWNER- OCCUPIED AND RENTAL UNITS 0% 50% 100% 2000 a 00 2012 u 2000 u 0 2012 i 2000 z z m 2012 1 z 2000 2012 .1• ti 2000 ¢ x w z i 2012 0 N 2000 1 Q Z W Q K a ¢ 2012 a 2000 .n Z 0 o a 2012 Q 2000 3 ° 2012 ■ Owned units ® Rental units i i Source: U.S. Census Bureau (2000 Census and ACS 2008- 20125 -Year Estimates) 18 Housing Stock Between 2000 and 2012, all jurisdictions added to their housing stock. However, the majority of this growth has been in single - family housing. The most growth has occurred in North Liberty and Tiffin. North Liberty nearly doubled its number of single - family housing units and nearly tripled its multifamily units during this period. Tiffin doubled its supply of single - family and multifamily units. By jurisdiction, growth in housing stock has generally corresponded with population growth. Figure 12 GROWTH IN SINGLE AND MULTIFAMILY HOUSING UNITS, 2000 -2012 100% � r 75% r 50% 3,357 T: 12,518 " 25% 267 143 -- I 1,208 ' 693 0% s SF MF SF MF SF MF SF MF SF MF CORALVILLE IOVIACITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS, • Number SF units, 2000 ■ SF units constructed, 2000 -2012 • Number MF units, 2000 ■ MF units constructed, 2000 -2012 Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates). For the purposes of this section, singlefomily (SF) refers to both attached and detached single -unit homes. Multifamily (MF) includes all structures with two or more apartments. Table 10. Regional growth in housing stock, 2000 -2012 Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5 -Year Estimates( 19 Building Permits Building permit data show that proportionally more single - family housing permits have been issued than multifamily permits since 2007. This could indicate that an insufficient amount of land is zoned for multifamily development in the urbanized area, or that developers have less of a financial incentive to construct new multifamily dwelling units. Figure 13 TOTAL BUILDING PERMITS ISSUED, 2007 -2013 1400 1299 1220 1200 1075 1000 800 690 600 433 400 158 124 2000 IN 1■ 0 0 . ■ CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY UNINCORPORATED HEIGHTS COUNTY ■Single - family ■Multifamily Source: State of the Cities Data System Building Permits Data Systems, HUD Table 11. Annual breakdown of building permits issued, 2007 -2013 NORTH CORALVILLE IOWA CITY YEAR LIBERTY HEIGHTS COUNTY �a c175 2007 79 0 107 254 54 34 0 I 0 0 79 0 2008 48 0 156 115 290 24 19 16 0 0 88 38 2009 62 0 168 40 255 12 16 20 0 0 98 26 2010 40 0 153 59 136 0 13 16 0 0 82 20 2011 71 122 126 99 157 20 23 54 0 0 54 21 2012 77 10 223 176 136 20 19 18 0 0 101 0 2013 66 0 219 479 71 47 34 0 0 0 107 24 Subtotals 443 132 1220 1075 1299 177 158 124 0 0 609 129 ALL PERMITS 575 2295 1476 282 0 738 Source: State of the Cities Data System, HUD 20 Housing Vacancy Housing vacancy rates are helpful indicators of occupancy turnover and housing mobility. The housing industry generally regards a 5 percent vacancy rate as optimal. At this rate, there is neither a surplus nor deficit of available units, which helps regulate housing costs and mitigate cost burden. Some housing units are considered occupied although the owner does not always live there. In order to discount these units from the vacancy rate, the following formula is used to compute vacancy rate by tenure (owner- occupied or renter - occupied): # vacancies by tenure (# vacancies by tenure + # occupied units by tenure) Since 2000, owner vacancy rates have decreased in every jurisdiction except University Heights, while rental vacancy has increased in every jurisdiction except North Liberty. It is important to note that the majority of vacancy rates across the urbanized area remain below the industry standard of 5 percent. Figure 14 VACANCY RATES BY JURISDICTION 10% aR a ei 8% 6% 4% br a 29'0 m ro ( m 0% - CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY JOHNSON COUNTY HEIGHTS B2000: Owner vacancy rate ■ 2012: Owner vacancy rate 2000: Rental vacancy rate ■ 2012: Rental vacancy rate Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) 21 Housing Costs and Cost Burden The Census collects data on housing costs as a proportion of household income. Housing is considered "affordable' if occupants pay no more than 30 percent of their gross annual income on rent or owner housing costs. Occupants paying more than 30 percent of gross annual income towards housing are considered cost - burdened, while those paying more than 50 percent are considered severely cost - burdened. The U.S. Census Bureau defines gross rent as the combined cost of rent and selected utilities, while gross homeowner costs refers to mortgage and insurance payments, and selected utilities. Renter The 2007 Affordable Housing Market Analysis reported a 4.4 percent increase in rents between 1990 and 2000 in Johnson County, after being adjusted to 2000 dollars. Rents also increased 4.4 percent between 2000 and 2012 after being adjusted to 2012 dollars.' The proportion of renters in the urbanized area who were considered cost - burdened totaled over 55 percent in 2012. Figure 15 illustrates growth in the number of cost - burdened renters, including a rise in those who are severely cost - burdened. Although the proportion of cost - burdened renters declined in Iowa City, Tiffin, and University Heights, the proportion of severely cost - burdened renters increased in every jurisdiction. Figure 15 PROPORTION OF COST- BURDENED RENTERS BY JURISDICTION 45% CORALVILLE IOWA CITY NORTH LIBERTY In Cost-burdened renters, 2000 Til TIFFIN UNIVERSITY URBANIZEDAREA HEIGHTS ■ Cost - burdened renters, 2012 s Severely cost - burdened renters, 2000 ■ Severely cost - burdened renters, 2012 Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) ' U.S. Census I'% A number of cost- burdened renters may be presumed to be student households, but many are not. The Census does not differentiate age of the 10,761 cost - burdened renters. There are 7,912 households with a householder under age 25. Discounting this entire age group of householders 2,849 cost - burdened renters remain, therefore cost burden is not only limited to college -aged persons. Because not all renters under the age of 25 are students, the actual number of cost - burdened renters who are not students is higher than this estimate. Tables 12 and 13 indicate that the proportion of cost - burdened renters is similar to that of the state while the proportion of severely cost - burdened renters is far higher in the urbanized area than the state as a whole. Table 12. Cost- burdened renters by region, county, and state URBANIZED YEAR 2000 3,747 21.1 3,871 20.7 51,524 17.1 2007 N/A 3,958 20.2 61,412 19.1 2012 3,840 19.7 4,129 19.7 67,436 20.1 Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 -2012 5 -Year Estimates) Table 13. Severely cost- burdened renters by region, county, and state URBANIZED YEAR 2000 5,021 28.3 5,130 27.5 43,292 14.4 2007 N/A 6,616 33.8 65,196 20.3 2012 6,921 1 35.6 7,057 33.7 71,558 21.4 Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 - 20125 -Year Estimates) 23 Homeowners Figure 16 shows the median housing value for owner- occupied units in the urbanized area increased substantially between 2000 and 2012. In Coralville, the median housing value was $157,100 in 2000, and by 2012 it had increased to $186,500. The median housing value in Iowa City in 2006 was $161,900 and by 2012 it had increased to $181,000. Median housing values in University Heights increased from $216,100 in 2000 to $246,800 in 2012. Tiffin's housing values increased from $132,000 in 2006 to $146,000 in 2012. On average, median housing values increased 16 percent across the urbanized area between 2000 and 2012. The greatest increases in housing value in 2012 are found in North Liberty (24 percent) and Coralville (19 percent). The highest median home values were reported in University Heights at $246,800. Figure 16 MEDIAN HOUSING VALUE FOR OWNER- OCCUPIED UNITS $300,000 $246,800 $250,000 $216,100 $200,000 $186,500 $181,000 $157,100 $161,900 $155,500 $146,000 $150,000 $125,600 $132,400 $100,000 $50,000 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS s 2000 ■ 2012 Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) Like renters, homeowners in the urbanized area are increasingly cost - burdened. According to the 2000 Census, 15.6 percent of homeowners were paying more than 30 percent of their income for housing costs. Of these, 4 percent were severely cost - burdened. Each of these proportions increased by 2012. From 2000 to 2012, the proportion of homeowner households in the urbanized area who were considered cost- burdened nearly doubled between 2000 and 2012. Because of population growth, the actual number of cost - burdened homeowners increased 134 percent over this period, increasing from 2,133 to 4,997. 24 Figure 17 PROPORTION OF COST - BURDENED OWNERS BY JURISDICTION 20% 18% 16% 14% E o .r 12% 10 %.. - 8% 6% m - - m 0 %:,: ,.... .. :.... :...: CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY URBANIZED AREA HEIGHTS ■ Cost - burdened owners, 2000 ■ Cost - burdened owners, 2012 ■Severely cost - burdened owners, 2000 ■ Severely cost- burdened owners, 2012 Source: U.S. Census Bureau (2000 Census and ACS 2008 -2012 5 -Year Estimates) Table 14. Cost - burdened homeowners by region, county, and state URBANIZED AREA 2000 2,133 11.6 2,783 15.2 93,730 14.1 2007 N/A 6,962 22.8 178,905 20.2 2012 4,997 1 22.0 6,489 20.3 169,575 19.1 Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 -2012 5 -Year Estimates) Table 15. Severely cost- burdened homeowners by region, county, and state URBANIZED AREA 1OHNSONCOUNTY YEAR IOWA .. 2000 541 4.0 740 3.9 28,037 4.2 2007 N/A 2,375 7.8 56,972 6.4 2012 1,689 1 7.4 2,138 6.7 56,941 6.4 Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 -2012 5 -Year Estimates) 25 Income versus Housing Cost According to Census estimates, housing values in the urbanized area increased by an average of 15.8 percent from 2000 to 2012 after adjusting for inflation. In comparison, real median household income decreased by nearly 7 percent during the same period. Figure 18 shows median incomes have not kept pace with rising home values. As the percentage of income spent on housing has increased, so has the proportion of cost - burdened households (Figure 19). Figure 18 PERCENT CHANGE IN MEDIAN HOUSING VALUE AND MEDIAN HOUSEHOLD INCOME BY JURISDICTION, 2000 -2012 30% 23.8% 18.7% 20% 7.9% 11.8% 10.3% 14.2% 10% `4 , 1.0% .. 0% a CORALVILLE IOWA NORTH LIBERTY TIFF UNIVERSI HTS -10% -12.4% -12.5% -20% -16.2% ■ Change in median housing value, 2000 -2012 as Change in median household income 2000, 2012 Source: U.S. Census Bureau (2000 Census, ACS 2008- 20125 -Year Estimates) Figure 19 MEDIAN GROSS HOUSING COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME 60% 50% 40% 30% 30 percent household 209, income 0% CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS RENT2000 ■RENT2012 -OWN 2000 ■OWN 2012 Source: U.S. Census Bureau (2000 Census, ACS 2008 - 20125 -Year Estimates). North Liberty had zero homeowners paying more than 30 percent household income in 2000. 26 The National Low Income Housing Coalition's (NLIHC) annual publication of Out of Reach provides data on housing and affordability for metropolitan areas, counties, and states. In 2006, it was reported that the 'housing wage' in Johnson County was $13.62, which is the wage that was necessary in order to afford the Fair Market Rent (FMR) for a two- bedroom apartment, which was $708 at that time. In 2013, the FMR had increased to $853, which raised the housing wage necessary to afford rent to $16.40, or an annual salary of $34,112. As illustrated on page 10, the average salary for six of the 21 employment sectors in Johnson County are not high enough to afford rent on a two- bedroom unit in the Johnson County. In total, those six sectors made up over half of the employees in the County, which represented workers in food preparation and serving, sales, production, personal care, healthcare support, and farming. In the 2007 Market Analysis, it was noted that median housing values in Johnson County had increased 30 percent between 1990 and 2000; however, real median income had also increased by nearly 13 percent. In the 2007 analysis, it was estimated that households with income below $50,000 (approximately the low -to- moderate income level) would decrease by 494 in the urbanized area by 2012. According to the Census, there were 21,712 households in the urbanized area with income below $50,000 in 2012. In an attempt account for the student population, when the households with a householder under age of 25 are removed, there were still 14,828 households in 2012 with income below $50,000. Most significant is the number of households with a householder over the age of 25 with household income below $20,000. In 2012, that totaled 5,618 households in the urbanized area. MA Cost Burden Illustrated To illustrate the magnitude of cost burden in the urbanized area, Figure 20 compares median gross rent for 2012 versus 30 percent of mean full -time wages for the two industries with the largest workforces. Combined, the Office and Administrative Support and Food Preparation and Serving industries employ more than one in four workers. The food services industry has the lowest mean salary for any sector — $20,043 in 2013. The office and administration industry employs the largest proportion of workers in the urbanized area, nearly 16 percent, at a mean salary of $35,278. Figure 20 also illustrates that employees in each industry would have a difficult time finding affordable rental housing in the area. Figure 20 MEDIAN GROSS RENT VS. 30 PERCENT MONTHLY WAGES BY SELECTED INDUSTRIES $1,400 $1,200 $1,000 882 $00 $6600 $501 $400 $200 CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY URBANIZEDAREA HEIGHTS 11111111111112012 Median gross rent, per month 30% full time wages per month, one earner, Office and Admin. Support 30% full time wages per month, one earner, Food Prep. and Serving Source: U.S. Census Bureau (ACS 2008 - 20125 -Year Estimates and Iowa Wage Survey, 2013.) Table 16. Change in median gross rental cost byjurisdiction, county, and state (adjusted to 2012 dollars) YEAR .• NORTH LIBERTY HEIGHTS AREA COUNTY 2000 1 $748 1 $763 1 $740 $784 1 $676 1 $741 $752 2012 1 $743 1 $793 1 $874 $922 1 $1,191 1 $793 $789 CHANGE 1 -0.7% 1 3.9% 1 18.1% 1 17.6% 1 76.2% 1 7.0% 4.9% Source: U.S. Census Bureau (2000 Census, ACS 2005 -2007 3 -Year, and ACS 2008 -2012 5 -Year Estimates) 28 To cover median Iowa City rental costs in 2012, a single- income, full -time employee in food services making the average salary for that industry would expect to allocate more than half of his or her earnings towards rent. A typical office worker would expect to allocate slightly less than 30 percent of his or her income, falling just below the cost - burden threshold. These trends hold throughout the urbanized area. Figure 21 PERCENT MONTHLY WAGE NEEDED TO PAY MEDIAN RENT FOR SELECTED INDUSTRIES 48% CORALVILLE 27% IOWA CITY 51% 29% NORTH LIBERTY 6 32% TIEPIN 60% 34% UNIVERSITY HEIGHTS 77% 0% 30% 60% 90% ■ Food Services ■ Office and Adminstrative Support Source: U.S. Census Bureau (ACS 2008 -2012 5 -Year Estimates) and Iowa Wage Survey, 2013. Homeownership would also likely be unaffordable for many workers in these sectors, especially when considering the added costs of property taxes, utilities, and homeowners' insurance. A single- income office worker can afford to spend no more than $881— 30 percent of average monthly wages on home- ownership. The approximate property tax rate in Iowa City is 2.0 percent .2 On a $100,000 home, that cost equates to $91 per month. The average cost of utilities is $230, and the average cost of homeowners' insurance is $50.3 When these costs are accounted for, only $510 remains for a mortgage payment, limiting the number of affordable housing options for office workers. Given the same parameters, a single- income householder in the food services industry would have only $130 to make a mortgage payment. For a single- income worker in this industry, homeownership is essentially impossible. Only 21 homes in the urbanized area sold for $100,000 or less in 2013, according to the Iowa City Area Association of Realtors. The majority of these were clustered in neighborhoods south of Highway 6 and east of Gilbert Street in Iowa City, which indicates that homebuyers also face geographical constraints when searching for affordable housing. 2Johnson County Assessor 3 American Housing Survey, 2011 29 Conclusion This update to the 2007 Affordable Housing Market Analysis indicates that affordable housing needs are still unmet and are growing in the urbanized area. Below is a summary of findings: • Real median housing values increased between 2000 and 2012 by an average of 15.6 percent while real median household income decreased by nearly 7 percent during that same time. • The number and percentage of families in poverty in the urbanized area increased from 1,038 (6.2 percent) in 2000 to 1,684 (8.2 percent) in 2012. • The percentage of participants in the Iowa City Community School District Free and Reduced lunch program has increased from 22.3 percent of the student population in 2000 to 33.8 percent of the student population in 2013. • In 2006, the hourly wage required to afford a two- bedroom apartment in the urbanized area was $13.62. As of 2013, the wage required is $16.40. • While the proportion of renters considered to be cost - burdened (paying more than 30% of their income for housing) decreased slightly (1.4 percent) in the urbanized area between 2000 and 2012 the proportion of severely cost burdened renters (paying more than 50% of their income on housing) increased by 1,900 households, a 7.3 percent increase. • Nearly one quarter of the homeowner households were cost - burdened in the urbanized area in 2012, in increase of 6 percent from 2000. The number of severely cost - burdened increased by over 1100 households, or 3.4 percent. • Those working in food preparation /serving jobs and office /administrative support jobs comprise over 25 percent of the employees in the urbanized area, and the average salary for each is $20,043 and $35,278 respectively. Workers in these sectors would have difficulty finding affordable rental housing the urbanized area. Homeownership would be very difficult for workers in these sectors. • Twenty percent of Johnson County households earned less than $20,000 in 2012, and over half were households with a householder age 25 and over. Strategies to Increase Affordable Housing Opportunities The strategies to address housing needs that were outlined in the 2007 Affordable Housing Market Analysis are still valid, since the need for more affordable housing is even more evident now than in 2007. The analysis of each strategy was updated to reflect affordable housing conditions today. While there have been some initiatives undertaken to address the increased need for affordable housing, updating the 2007 Market Analysis was the first step in a collaborative effort to address affordable housing regionally. Listed below are the strategies as outlined in the 2007 Affordable Housing Market Analysis. 1) Change Public Perception This is the most imperative conclusion from the 2007 market study and the one that must occur before any real substantive improvement in the provision of affordable housing occurs. Without this initiative, 011 public opinion about the definition of affordable housing, what it looks like, the need for it, and who lives in it will not change. Without a public perception change, it is very difficult for public officials to initiate public policy, pursue financing options, and work collaboratively toward addressing the need fpr affordable housing. The change in perception should begin with local government officials. Once local government officials better understand affordable housing, they can assist with efforts to end the misconceptions within the community. A group of interested persons and organizations interested in making Johnson County a more affordable place to live was formed in late 2013, as the Johnson County Affordable Homes Coalition ( JCAHC). One of the group's initiatives is to educate the public, which includes city /county staff and elected officials. The group's education campaign initiative includes printing posters, flyers, and other information that provide images of low -to- moderate income persons, including showing them in occupations for which their pay qualify them as low -to- moderate income. Another goal of the public education campaign is to provide a consistent definition for affordable housing, what it looks like, and the extent of its need in the community. An important initiative of the JCAHC is also working with cities to implement policy changes in order to increase the availability and financial options for development of more affordable housing. 2) Public Policies A more detailed explanation of public policy strategies is provided in the 2007 Market Analysis; however, it is worthy to note that implementation of most of these policies for the benefit of affordable housing has not occurred since 2007. Some of the policies identified in 2007 include preserving existing affordable housing units, increasing the amount of land zoned for multi - family housing, and inclusionary zoning. While there may be a few recommendations that have been implemented by a few communities, they have not been conducted on a consistent basis or as an urbanized area initiative. The update to the 2007 Market Analysis was intended to facilitate dialogue on the possible implementation of public policy changes as a region, or urbanized area. Officials in the area could begin the dialogue by discussing which of the policies identified in 2007 are feasible, identify those which are not, and determine other policies that may be more feasible to implement and would increase affordable housing opportunities in the urbanized area. Without proactive public policy changes, the market on its own does not create the necessary affordable housing as evidenced by the increased need. 3) Financing Strategies The Housing Enterprise Zone designation, offered as a possible funding source in the 2007 Market Analysis, is no longer available through the Iowa Economic Development Authority; however, the Workforce Housing Tax Credit program (WHTC) was created to replace it effective July 1, 2014. The WHTC gives developers tax credits for specific types of housing. In addition, communities are encouraged to research all state housing programs available through the Iowa Economic Department Authority and the Iowa Finance Authority. The Housing Trust Fund of Johnson County should also be contacted in regard to availability of funding and for assistance with identifying other potential funding sources. The State Housing Trust Fund program is operated by the Iowa Finance Authority (IFA) and the State Legislature has appropriated funding for trust funds since 2004. There are currently 27 housing trust funds across the state, and only one trust fund can be certified to cover a geographic area. Housing 31 Trust Fund of Johnson County (HTFJC) is the local housing trust fund that receives state funding and then through an application process, awards it to developers, organizations, and other entities that propose projects that will preserve or create affordable housing. Since the creation of HTFJC, it has awarded over $3 million for projects that have benefited nearly 300 households in Johnson County. The Johnson County Board of Supervisors and the Cities of Coralville, Iowa City and North Liberty have provided annual funding to HTFJC, which is combined with the state funding and then awarded through an application process to affordable housing projects in the county. The 2007 Market Analysis recommended that a more dedicated stream of revenue be identified to capitalize HTFJC, such as increasing the recording fee on deeds and mortgages, which would then be used by HTFJC for affordable housing projects. 4) Create an Environment for Collaboration and Cooperation A more detailed explanation of the collaboration and cooperation strategies is provided in the 2007 Market Analysis; however, the intent of this initiative was to foster a cooperative environment among local governments, for - profit and nonprofit builders, and the University of Iowa. With the exception of the City of Iowa City's UniverCity program, it is unclear how much of the collaboration and cooperation that does occur is the result of a community's initiative. The UniverCity program was initiated by the City of Iowa City with the intention of stabilizing neighborhoods by creating a healthy balance of rental properties and owner - occupied properties surrounding downtown and the University campus. It is a cooperative relationship with the University of Iowa, local lenders, City of Iowa City, Iowa City Housing Authority, and Friends of Historic Preservation. Between 2011 and 2014, the project has acquired 56 homes, and sold 38 of them. The purchase price of the homes has ranged from $70,855 to $246,558, with an average sales price of $156,902. While this program has created more homeownership opportunities in Iowa City, it is evident by the growing need for affordable housing in the urbanized area that development of other partnerships and a spirit of collaboration and cooperation continue to be necessary to facilitate affordable housing development. 32 7 Council Member Throgmorton Economic Development IP12 A LIVABILITY FACT SHEET Oil For many years, public transit, bicycle lanes, trails and sidewalks have suffered from a lack of investment. The consequences are congestion, inactivity and obesity, as well as more air pollution and traffic crashes and a loss of economic vitality. If current trends continue, total U.S. costs resulting from obesity are expected to be as high as $957 billion by 2030' The price of poor air quality due to transportation is predicted to be between $50 billion and $80 billion a year.' Expenses from traffic crashes in urban areas are expected to exceed $299 billion annually,3 with congestion costs adding $121 billion or more to the bill each year.^ A more balanced transportation system is needed or these costs will continue to climb and undermine the nation's economic health and quality of life .5 One study estimates that if the U.S. would grow in a more compact way between 2000 and 2025, the country could save $110 billion in local road costs.' A more balanced transportation system saves and earns money. For instance, bicycle infrastructure creates an average of 11.4 jobs for every $1 million spent while road -only projects create 7.8 jobs per $1 million? After slowing traffic and improving bicycling on Valencia Street in San Francisco's Mission District, nearby businesses saw sales increase by 60 percent, which merchants attributed to increased pedestrian and bicycle activity.' Houses with above - average levels of walkability command a premium of about $4,000 to $34,000 more than homes with average levels of walkability.9 A 1999 study by the Urban Land Institute of four new walkable communities determined that home buyers were willing to pay $20,000 more for the houses than they would for similar homes in less walkable areas. A nationwide survey by Smart Growth America of 17 development studies concluded that dense, mixed -use development costs 38 percent less than conventional suburban development on average, generates 10 times more tax revenue per acre and saves municipalities an average of 10 percent on public services such as police, ambulances and firefighting'° 1. American Heart Association. Statistical FactSheet2013 Update. https: / /www.heart.org /idc /groups/ heart- public / @wcm/ @sop / @smd /documents/ downloadable /ucm_319588.pdf 2. Federal Highway Administration. (2000) Addendum to the 1997 Federal Highway Cost Allocation Study Final Report (adjusted to 2008 dollars), www.fhwa. dot .gov /policy /hcas /addendum.htm ` W%W. )Walkable and Livable Real ROf.hTni. Communities Institute MYTH - BUSTING! ■ "Investing in downtown is expensive, the suburbs are cheaper to develop." Revenue - starved cities can garner far more taxes per acre from downtown multistory buildings than from strip malls and housing subdivisions. And in the next 20 years, the needs and preferences of aging baby boomers, new households and one - person households will drive real estate market trends. Downtown locations are likely to attract many of these people" Asheville, N.C., has a big box retail store less than three miles east of its downtown. The tax value of the store is $20 million, but it sits on 34 acres of land, yielding about $6,500 an acre in property taxes. A remodeled department store in downtown Asheville generates $634,000 in tax revenue per acre.12 ■ "Big box retailers bring big revenues to our town." Big box retail encourages sprawling land uses, automobile dependence and the paving of large tracts of land. The stores contribute to the decline of urban and neighborhood centers because they pull retail activity out of central business districts and into the urban fringe. As local businesses close, residents increasingly use automobiles and travel farther to shop. Several studies have found that for every job created at a big box store one to two existing jobs in the community are destroyed" A University of Massachusetts study found that income spent on a locally owned business had four to five times the local economic impact of a big box store does. Further, when a big box store closes, the community is left with a huge, unappealing building with limited reuse options. ■ "Narrow roads hurt business." By reducing traffic speeds and accommodating people who are walking and bicycling, narrower roads are one of the best ways to increase retail revenues. This technique, called a "road diet," can even create more on- street parking spaces. The slower speeds provide drivers with better sight lines and make streets, entrances and exits easier to negotiate 19 ■ "We need more parking lots, not less." In Portland, Ore., property values and customer volume in parking - restricted areas near transit stations are higher than in other areas, and the properties sell and rent quickly even without dedicated parking spaces. An off - street parking space costs between $3,000 and $27,000 to build and about $500 a year to maintain and manage. On- street parking is more efficient and can bring in as much as $300,000 per space in annual revenues" ■ "Cars bring more business than walking or bicycling." Walkers and bicyclists tend to spend more money at local businesses than driversdo16 Bicycle -and pedestrian - friendly streets boast slower speeds that allow drivers to more easily see business storefronts. The North Carolina Department of Transportation found that although bicycle facilities in the Outer Banks cost $6.7 million to build, they bring an annual economic gain of $60 million and 1,400 jobs created or supported. After the installation of protected bicycle lanes on New York City's 8th and 9th avenues in the fall of 2007, retail sales increased up to 49 percent compared to 3 percent in the rest of Manhattan 1J 3. AAA. (2008, updated 2011) Crashes vs. Congestion Report - What's the Cost to Society? Cambridge Systematics, Inc. http://newsroom.aaa.com/wp- content /uploads /2011/11/2011 _AAA_CrashvCongUpd.pdf 4. Federal Highway Administration, Texas Transportation Institute. ( 2012) Urban Mobility Report http ✓ /www.fhwa.dot.gov /congestion/ 5. American Public Health Association. (March 2010) Backgrounder: The Hidden Health Costs of Transportation. http:// www. apha.org /NR /rdonlyres /B96832A2- FA00-4D79-99AB-F0446C63B254/0/TheHiddenHealthCostsofTransportationBackgrounder.pdf 6. BurchelI,Ret aI. TCRP Report 74.Transportation Research Board /National Research Council.(2002)The Costs of5prowl -2000. Transit Cooperative Research Program. Washington, D.C. National Academy Press. 7. Garrett-Peltier, H. Political Economy Research Institute, University of Massachusetts at Amherst. (June 2011). Pedestrian and Bicycle Infrastructure :A National StudyofEmploymentimpacts. http : / /www.peri.umass.edu /fileadmin /pdf /published studylPERI_ABikes_June2011.pdf 8. National Complete Streets Coalition. (2012) It's a Safe Decision: Complete Streets in California. httpl/ www. completestreets .org /webdocs /resources/cs -in- california.pdf 9. Cortright, J. CEO's for Cities. (2009) http://www.ceosforcities.org/pagefiles/WalkingtheWalk-Summary.pdf l0. Smart Growth America. (May 2013) Building Better Budgets. A National Examination of the Fiscal Benefits ofSmart Growth Development. httpl /www smartgrmthamerica.org/documents/building-better-budgets.pdf 11. EPA. (February 2014) Smart Growth and Economic Success: Investing in lnfil /Development. httpl/ www. epa. gov /smartgrowth /pdf /economicsuccess/ Developer- Infill- Paper- 508b.pdf HOW TO GET IT RIGHT Because economic development can make or break a community, it's important to get it right. Try the following: ■ Embrace placemaking Strong networks of streets and destinations foster social networks, interaction and strong economies. But great places can only exist when people choose to participate in creating them. That's why architects, designers, planners and engineers need to move beyond shaping cities through the lens of their professional disciplines and instead partner with residents, advocates and people who work in transportation, economic development, parks and health agencies. Engaging the people who will be living in or using the end result provides a larger vision for the space and community. ■ Small projects, big results Consider doing a simple, low -cost project first, such as striping a bike lane. This will give people a chance to get comfortable with the concept and allow municipal staff to document the outcome. Sidewalk cafes, striped crosswalks and community gardens are improvements that can be done quickly and foster economic growth. ■ Focus on downtown From villages to cities, downtowns have traditionally been the heart of a community, a place where people work, shop, socialize, volunteer and often live. In recent decades downtowns in America have suffered from the proliferation of enclosed malls, strip malls, big box retail outlets and office parks at the urban edge. Dedicate efforts on revitalizing the downtown core with walkable, mixed -use development and destinations. ■ Utilize form -based code Form -based code offers a powerful alternative to conventional use -based zoning by addressing the relationship between building facades and the public space the shape and size of buildings in relation to one another and the size and types of streets and blocks. The codes are adopted into city or county law and are drafted to implement a community plan. 12. Badger, E. (March 2012) 'The Simple Math That Can Save Cities From Bankruptcy.' The Atlantic Cities. Retrieved March 8,2014: http:/ /www. theatianticcities.com/jobs-and- economy /2012/03/si mple- math - can -save- cities -ban kruptcy /1629/ 13. Curran, D. (January 2002) The POLIS Project, Smart Growth BC. Challenging the Sprawl of Big Box Retail: The Smart Growth Approach to Zone Itand They Will Come'Development 14. Tan, C.H.( September /October 2011) 'Going on a Road Diet" Public Roads. Federal Highway Administrat ion, FHWA- HRT -11 -006. Vol. 75, No. 2. httpW www.fhwa.dot.gov/publications/publicroads/llseptoct/05.dm 15. Litman, T. Victoria Transport Policy Institute. (August 2013) Transportation Cost and Benefit Analysis II- Parking Costs. http: / /www.vtpi.org and Shoup, D. Instead of Free Parking. (1999) http:// shoup. bol. ucla .edu /InsteadOfFreeparking.pdf 16. Krag, T. Aalborg University, Denmark. (2002) Commerce and Bicycles 17. NYC Department of Transportation. (2012) Measuring the Street: NewMetrics for2lst Century Streets. httpJ/ www. nyc. gov /html /dot/downloads /pdf /2012- 10- measuring - the - street.pdf 18. Jaffe, E. (2011) `The Economics of Urban Trees! The Atlantic Cities. http : / /www.theatianticcities.com/ housing/ 2011 /09/ where - trees - rule -real- estate /223/ SUCCESS STORIES ■ Portland, Oregon: Economic Dividend By enacting a growth boundary, increasing density, introducing mixed land uses and investing in transit, walking and biking, Portlanders are saving time and money on transportation. (More than $2.6 billion has been funneled back into the local economy.) Portland area residents travel about 20 percent fewer miles every day, or 8 million less miles per day, compared to other large metropolitan regions. (Vehicle miles traveled per person per day peaked in 1996.) A commitment to smart growth policies and the prevalence of walkability has attracted people and business to the region. In one decade the number of college educated 25 to 34 year - olds increased by 50 percent, which is five times faster than in the nation as a whole. Even design elements such as street trees can raise property values. Trees on the street in front of Portland homes add more than $7,000 to selling prices1e ■ West Palm Beach, Florida: Clematis Street A once - lively Main Street anchored by a plaza, library and waterfront on one end and a historic train station on the other, Clematis Street was only 30 percent occupied in 1993. After a $10 million traffic- calming project rebuilt a fountain, restored key buildings and provided for event spaces, property values on the street doubled, $350 million in private investment came to the area and more than 80 percent of the building space became occupied. As traffic slowed, social links between neighbors increased, trash along the streets disappeared, and the area evolved from abandoned to alive. The average home sale price increased from $65,000 to $106,000. ■ Lancaster, California: Lancaster Boulevard The redesign of its main boulevard helped transform downtown Lancaster into a thriving residential and commercial district by adopting a form -based code, streetscaping, new public facilities, affordable homes and local businesses. The project won the EPA's top smart growth award and has generated almost $300 million in economic output and nearly 2,000 jobs. AARP LIVABLE COMMUNITIES Mail 601 E Street NW, Washington, DC 20049 Email livable@aarp.org Online aarp.org /livable WHY IT WORKS As this chart comparing data from 30 cities across 10 states shows, for every dollar in property taxes raised by a county for a single family home, $5.99 was raised for a city home within the county and up to $287.25 was raised for valuable five- to 10 -story mixed -use properties. Ratio of County Property Taxes Per Acre uses Source: urban- three.com RESOURCES 1. Smart Growth and Economic Success: The Business Case. EPA. (2013) http://www.epa.gov/smartgrowth/pdf/business—case.pdf 2. Smart Growth and Economic Success: Investing in Infill Development. EPA. (February 2014) http: / /www.epa.gov /smartgrowth/ pdf /econom icsuccess /Developer - Infill- Paper- 508b.pdf 3. Bicycling Means Business: The Economic Benefits of Bicycle Infrastructure. Flusche, D. League of American Bicyclists, Advocacy Advance. (2009 -2012) http:// www. advocacyadvance .org /site_images/ content /Final_Econ_Update(small).pdf 4. "National Award for Smart Growth." Lancaster, California. EPA. Video. https: / /www.youtube.com /watch ?feature= player_ embedded &v= pojylzK2uSM S. Bikenomics: How Bicycling Can Save the Economy. Blue, E. (2013) 6. Choosing Our Community's Future : A Otizens'Gulde to Getting the Most Out of New Development. Goldberg, D. Smart Growth America. http: / /www.smartg rowthamerica.org /documents /Choosing -our- commu nitys- future.pdf WALKABLE AND LIVABLE COMMUNITIES INSTITUTE Mail 2023 E. Sims Way #121, Port Townsend, WA 98368 Email community @walklive.org V- Online walklive.org o AARP I WALC Institute (2014) N_ a. N T o C- V- p NV W� do V� pr M X_N X_M X �7 Source: urban- three.com RESOURCES 1. Smart Growth and Economic Success: The Business Case. EPA. (2013) http://www.epa.gov/smartgrowth/pdf/business—case.pdf 2. Smart Growth and Economic Success: Investing in Infill Development. EPA. (February 2014) http: / /www.epa.gov /smartgrowth/ pdf /econom icsuccess /Developer - Infill- Paper- 508b.pdf 3. Bicycling Means Business: The Economic Benefits of Bicycle Infrastructure. Flusche, D. League of American Bicyclists, Advocacy Advance. (2009 -2012) http:// www. advocacyadvance .org /site_images/ content /Final_Econ_Update(small).pdf 4. "National Award for Smart Growth." Lancaster, California. EPA. Video. https: / /www.youtube.com /watch ?feature= player_ embedded &v= pojylzK2uSM S. Bikenomics: How Bicycling Can Save the Economy. Blue, E. (2013) 6. Choosing Our Community's Future : A Otizens'Gulde to Getting the Most Out of New Development. Goldberg, D. Smart Growth America. http: / /www.smartg rowthamerica.org /documents /Choosing -our- commu nitys- future.pdf WALKABLE AND LIVABLE COMMUNITIES INSTITUTE Mail 2023 E. Sims Way #121, Port Townsend, WA 98368 Email community @walklive.org V- Online walklive.org o AARP I WALC Institute (2014) M IP13 MINUTES Preliminary CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE OCTOBER 13, 2014 EMMA HARVAT HALL, CITY HALL, 8:00 A.M. Members Present: Susan Mims, Michelle Payne, Matt Hayek Staff Present: Wendy Ford, Jeff Davidson, Tracy Hightshoe, Tom Markus, Sara Greenwood Hektoen Others Present: Kevin Hanick, Mark Seabold, John Arlotti, Tom Jackson (via phone), Andre Perry, Joe Tiefenthaler RECOMMENDATIONS TO COUNCIL: Payne moved to recommend approval of the request for financial assistance for EMRICO, LLC, project as discussed. Hayek seconded the motion. The motion carried 3 -0. Hayek moved to recommend the request for TIF financial assistance as discussed. Payne seconded the motion. The motion carried 3 -0. Payne moved to recommend the request for continued financial support of the Englert Theater. Hayek seconded the motion. The motion carried 3 -0. Hayek moved to recommend the request for continued financial support of Mission Creek Festival. Payne seconded the motion. The motion carried 3 -0. Hayek moved to recommend the Towncrest incentives for 2500 Muscatine Avenue. Payne seconded the motion. The motion carried 3 -0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Mims at 8:05 A.M. CONSIDER APPROVAL OF MINUTES: Minutes of the July 14, 2014 meeting were reviewed. Mims asked if there was any discussion. Payne moved to approve the minutes as presented. Hayek seconded the motion. Motion carried 3 -0. City Council Economic Development Commission October 13, 2014 Page 2 of 8 CONSIDER A RECOMMENDATION TO CITY COUNCIL FOR A REQUEST FOR FINANCIAL ASSISTANCE FOR EMRICO LLC A RIVERSIDE DRIVE URBAN RENEWAL AREA PROJECT: Ford introduced Kevin Hanick, who is representing the development team for the EMRICO project, a multi - family housing project on Riverside Drive, just south of the railroad overpass. For this $16.1 million project, the applicant is requesting $1.8 million in TIF rebates from the City. Ford said they are proposing 96 rental units, with a mix of studio, one - bedroom, two- bedroom, and six three - bedroom apartments. Of these, 12 will be priced to serve the workforce housing rental market. The developer will be arranging for these units to be under the management and compliance review of the Housing Fellowship. She noted that this project is also adjacent to two public infrastructure projects scheduled for the near future. One is a pedestrian tunnel that will punch through the west side embankment of the railroad overpass on Riverside, and the other project is for streetscape improvements along this same section of Riverside Drive, from approximately Myrtle Drive down to the Highway 1 /Highway 6 intersection. Davidson added that the infrastructure project is one for the entire area, which they would hope to coordinate with this project. Davidson stated that the streetscape project will be similar to what Coralville has done with Highway 6. Payne asked if the tunnel will be part of the first phase, and Davidson said yes. Ford stated that Tom Jackson, present via phone, has been working with the developer and the City to ensure that the development costs are reasonable. She stated that Jackson has substantiated the $1.8 million gap, by among other things, the higher -end architectural features and the 71 underground parking units. Ford noted that there is a report on this financial analysis in the Committee's packet and she invited questions from Members. Ford noted details in the master plan document for the Riverfront Crossings area call for enhancing the pedestrian experience, transitioning to more of an urban area and improving the streetscape for safety and beautification. She added that the plan also calls for a variety of housing types in this area. She noted how the project matches up with the Council's strategic planning priorities including creating and building healthy neighborhoods, creating a strong urban core, and engaging in strategic economic development activities. Ford stated staff believes this could be a catalyst project for the area, and as it progresses, would show the vitality of the neighborhood and encourage additional investment in the area. She said the project goes above and beyond the City's benchmarks for projects in which they provide financial assistance, noting how the project meets economic development criteria. It redevelops an underutilized property. It seeks only TIF rebates. Noting the benefits of rebates as opposed to up front funding, Ford said, the entire risk falls on the developer with rebates. She concluded by saying staff is recommending that the City support this project with $1.8 million in TIF rebates. Davidson added that there has been conversation about this area and why the City should help promote development here. He stated that he believes the five points in Tom Jackson's memo justify the financial gap and why the City should support the project. Kevin Hanick reiterated some of Ford's information pointing out that of the 96 rental units, 90 are studios, one - bedroom, and two- bedroom units. He stated that this project City Council Economic Development Commission October 13, 2014 Page 3 of 8 is designed for a different clientele than many residential projects in town. He said they are trying to appeal to young professionals and graduate students -- who he believes have been underserved with housing options. The location is ideal as it is close to downtown. Hanick spoke highly of the Riverfront Crossings plan and the recent positive changes in the area. Hanick shared renderings of the proposed building, pointing out specific details of the architecture, parking and the site. He noted the plan to do a lot of landscaping, including an interior courtyard. Solar panels will be installed on the building rooftop to help produce electricity. He stated that they are ready to move forward as soon as possible. Markus spoke to the form -based code now being used in the Riverfront Crossings district, and how this building is all residential and not a combination of commercial and residential. He asked for further explanation of it, in light of the request for TIF. Davidson responded, stating that staff had several discussions with Hanick regarding a mixed -use building in this project. He stated that the use for this land is consistent with the plan. Hanick added that in his opinion the commercial on the lower floors with residential above has not always yielded good results because the commercial areas are often difficult to keep leased. Markus asked Davidson to elaborate. Davidson responded that this would be the last piece of property able to be zoned for all - residential in the immediate area. Hanick talked about the partnership with the Housing Fellowship and that they would manage 12 units for affordable housing. Payne asked if the affordable housing will be capped at 120% of median income. She also asked what the average rents are slated to be on these units. Hanick noted that studio units are as small as 500 square feet, and three - bedroom units are as large as 1,300 square feet, with the average unit somewhere around 800 square feet. Tom Jackson, responding by phone, stated that rents will be anywhere from 92 -cents a square foot up to $1.40 a square foot depending on the unit. He added that there is a lot of variety between floorplans. Markus asked Jackson to comment on vacancy rates and whether a 2 or 3% rate is about right. Jackson responded, noting that he thinks 2% is low, but that he has heard it is at times less than 1 %. Hayek noted that he needs help in understanding how rents for this targeted demographic are not well established when the housing market in Iowa City is so tight. He stated that the rental market overall in the downtown area is exceptionally tight, which is why there are such high rental rates. Davidson asked Jackson if he could speak to this further — item 1 in his report — about what he took into account as far as the rent structure for these types of units at this location. Jackson stated that he was referring back to the market study, but that they still need to see where the appraiser comes in; and that, with this being a new development of this type in this area, a blended rate was used. Hanick added that one of the things that pushed him towards this type of development was the lack of anything like it in years on the west side. Payne noted that the rents appear to be comparable to others downtown. Mims stated that she has a concern with using TIF since it is all residential, and she also has a concern that they are opening the floodgate to further requests in the Riverfront Crossings area. She questioned the precedent they would be setting if they were to approve this request. City Council Economic Development Commission October 13, 2014 Page 4 of 8 Jackson and Davidson each responded. Hanick noted the increase in property tax that the City will realize on this property once it is developed. Markus asked Hanick about what the City could expect to see on this site if they were not able to offer TIF assistance. Hanick responded that he has been inundated with out -of -state college housing developers who would love to develop the site. Continuing, Hanick stated that to do something less with this site, in his opinion, would be a disservice to the Riverfront Crossings district. He believes this site deserves a quality project, one that will inspire like- minded projects. Markus asked staff if the underground parking for this project is absolutely necessary, if ground parking wouldn't be sufficient. Davidson noted that it would be possible, that they did look at some examples of this. However, when looking at the quality of the unit types and the target audience for this, they believe that underground parking should be offered here. If only surface parking were offered, according to Davidson, the courtyard and green space would most likely be cut from the plan due to space. Markus spoke to the catalyst effect he hopes this project will have, noting that this area has struggled over the years. The hope is to inject some quality residential into the area, which will then create the demand for higher quality commercial. Markus reminded Members that this is a site - specific TIF that would be a rebate only, meaning that this project has to successful on its own in order to generate the taxes to be rebated. He believes this reduces the risk to the City. Davidson spoke to the many upgrades in the Miller- Orchard neighborhood over the past years, and that this area is one that they have been pushing to change. He added that he believes this project would truly be an investment in that neighborhood. Mims stated one way to look at a catalyst project, is as a test for what works and what does not work so that when future projects present themselves, they will have had some experience. Mims stated that she is uncomfortable with this for several reasons, including not understanding exactly how the TIF rebate will work. She questioned how the increment will be divided between the rebate and what is left to flow to the City, the County, and the School District. Ford stated that about three - quarters of the taxes generated are eligible to rebate the developer, and the other one - quarter continue to flow to the City, County and School District. Jackson added that about $175,000 a year will be available for the rebate. Markus stated that he noted very different styles between Ford's report and Davidson's report. He noted that Ford's report can serve as a model of how they do this, but that they really need that estimated information in the report. As they move through projects such as this, he expect the reporting format to be refined. The goal is to get these reports consistent so there aren't so many questions. Regarding the affordable housing issue, Mims stated that she is also concerned about going up to 120% of median income. She questioned if the City wants to be supporting people with high enough incomes to be able to afford the rents on their own. Markus stated that it would seem to him if you reduce the amount from 120% to something else, it does increase that gap, pushing more burden on the developer. Davidson stated that the reason staff used that level is because Council identified this as their workforce housing parameters. Jackson added that he met with Steve Long and Hanick last month on the 120% issue and he further explained the analysis. Hayek shared his views on this issue, noting that what causes him to flip from 'mildly against' to 'mildly supportive' of this request is the catalyst argument. The location and catalyst potential of this project are extremely important in Hayek's opinion. He did note City Council Economic Development Commission October 13, 2014 Page 5 of 8 his concerns with the precedent this may set, noting the importance of the big picture of how this plays into the Riverfront Crossings district. Payne asked if the underground parking is included in the rent or separate. Hanick stated that will provide each lease with one surface parking spot. Underground parking would be an additional expense. Payne moved to recommend approval of the request for financial assistance for EMRICO, LLC, project as discussed. Hayek seconded the motion. The motion carried 3 -0. CONSIDER A RECOMMENDATION TO CITY COUNCIL FOR FINANCIAL ASSISTANCE FOR IOWA CITY MARKETPLACE, A SYCAMORE AND FIRST AVENUE URBAN RENEWAL AREA PROJECT: Davidson spoke to this request, noting that staff has been working with the owner of the mall property as they try to get the mall space spruced up and filled with tenants. The proposal is in regards to the former Von Maur space and a plan to lease it to Lucky's Market, a fresh -food, organic grocery store. Planet Fitness is another business that would lease the back, or south part of this space. The first phase of the Iowa City Marketplace project, according to Davidson, is around $4.4 million, which includes the renovation of the anchor store space and improvements to the parking lot and pedestrian walkability. The request is for $1.75 million in TIF financial assistance. He introduced Mark Seabold, the project architect, and John Arlotti, the mall owner's representative. Davidson continued, noting that the Sycamore Mall is being rebranded as the Iowa City Marketplace, and the proposed occupant for the anchor space is consistent. There is also a plan for the remainder of the mall, also consistent with this rebranding. Davidson noted that this $1.75 million tax increment financing assistance would be structured as a rebate. He further explained how they are using the entire urban renewal district in order to fund $1.75 million. Davidson stated that they have worked closely with the County Assessor on this particular project as it is predicated on the taxable value of the mall being increased from the current $10.2 million to $16 million. Davidson shared some renderings of the mall with the Members, noting that the owner has shared some of the other changes with current tenants upgrading their spaces and new tenants wanting to lease space. The mall is currently 40% vacant. With the addition of Lucky's and Planet Fitness, this would go to 25% vacant. Davidson stated that with the many upgrades, pedestrian access to the mall will be a major one. Davidson then pointed out changes to the roadway, parking and sidewalk links, noting that these will greatly enhance the pedestrian access. Mims asked if the outlot buildings are something that will be done in the near future. Davidson and others responded, noting that with the amount of parking area, these are definitely something that could be done in the future. Davidson also pointed out some of the sustainability features of the new renovations. To summarize, Davidson stated that the request is to assist in getting Lucky's Market and Planet Fitness established in the former Von Maur space. This project is part of a larger project that will rebrand the mall as Iowa City Marketplace; and raise the taxable value from $10.2 million to $16 million, which translates to annual City Council Economic Development Commission October 13, 2014 Page 6 of 8 property taxes paid from $347,000 to $566,000 per year. The project is an approximate six -year TIF, and staff recommends this proposal, according to Davidson. Payne voiced concerns about traffic one First Avenue near Panera. Davidson responded that staff had the same concern, and the MPOJC analysis showed that a right -in entrance is benign and may well aid in traffic movement. Markus noted how the overall project will enhance traffic issues and access, etc., making the whole area run smoother. Arlotti spoke briefly about the project, noting that the goal is to change the whole character of the area. He shared how he has looked at this project from a national level, and over the past few years has worked to keep the mall vibrant, even with its high vacancy rate. He noted that they have a stake with the local businesses located in the mall, and they very much want this project to succeed. The social aspect of this mall is important to the local citizens, according to Arlotti, and the mall is working to keep all of these things going and remain vibrant. Hayek moved to recommend the request for TIF financial assistance as discussed. Payne seconded the motion. The motion carried 3 -0. CONSIDER A REQUEST FOR CONTINUING FINANCIAL SUPPORT OF THE ENGLERT: Payne moved to recommend the request for continued financial support of the Englert Theater. Hayek seconded the motion. The motion carried 3 -0. Mims noted that this is an annual budget item for the City, and that she is happy to see the continued improvements in the Englert's financial status. She asked Andre Perry about the collaboration between the Englert and the Mission Creek Festival. He noted it began in 2014, with a three -year agreement. The Englert believes they can help make the Festival an institution as it has proved itself over the years. Payne noted that on the Profit and Loss Statement it looks like the Englert was in the red as of the end of August. Perry affirmed, noting that a portion of the flood and University - related uses are gradually moving back to the campus or to other sites. As these uses find new homes, the Englert is seeing a drop in rental revenue. He added that the Board has discussed the fact that 2014 through 2016 will be a real challenge for them. Perry thanked the City for their continued support, noting that they plan to continue making the Englert even more viable. CONSIDER A REQUEST FOR CONTINUING FINANCIAL SUPPORT OF MISSION CREEK FESTIVAL: Hayek moved to recommend the request for continued financial support of Mission Creek Festival. Payne seconded the motion. The motion carried 3 -0. City Council Economic Development Commission October 13, 2014 Page 7 of 8 Andre Perry introduced the Programming Director for Mission Creek, who is also the new Executive Director for Film Scene, Joe Tiefenthaler. Mims stated that she is really excited about this Festival, that it brings in people from every walk of life to the City with an array of artistic interests. She agreed with what Markus stated earlier, that this is the type of event helps to raise Iowa City's position as a real arts and culture center for not only Iowa, but also the Midwest. Members briefly discussed the increased success of the Festival. CONSIDER A RECOMMENDATION FOR TOWNCREST INCENTIVES AT 2500 MUSCATINE AVENUE: Hayek moved to recommend the Towncrest incentives for 2500 Muscatine Avenue. Payne seconded the motion. The motion carried 3 -0. Hightshoe noted that staff has been working with the owner on this building since 2009 when they filed a demolition permit. She further explained how the Towncrest design standards have increased costs associated with them, and that this request is in relation to what the owner could build and what now are the Towncrest design standards. A design was submitted and staff is recommending up to $25,000 to cover a portion of the increased costs of design in this project. Markus stated that this would be similar to the fagade improvement program done in the downtown area. Staff recommends this request, noting how positive it will be for the Towncrest area. STAFF UPDATES: Davidson quickly noted that the Art Museum announcement is expected at the Board of Regents' meeting on October 23. Markus added that Davidson and Ford have transitioned into the new economic development roles beautifully, and that Members will be seeing some new projects soon. Davidson stated that they will most likely need a November meeting. Hightshoe spoke briefly to the micro -loan program. The Council had set aside $75,000 to target more lower- income and minorities for micro - loans. She stated that staff is working with a local lender and she briefly explained how the program would work. COMMITTEE TIME: None. OTHER BUSINESS: None. ADJOURNMENT: Payne moved to adjourn the meeting at 9:46 A.M. Hayek seconded the motion. Motion carried 3 -0. City Council Economic Development Commission October 13, 2014 Page 8 of 8 Council Economic Development Committee ATTENDANCE RECORD 2013-2014 Key: X = Present O = Absent O/E = Absent/Excused TERM o 0 0 0 o o s NAME EXP. w o o Michelle 01/02/14 X X X X X X X Payne Matt 01102/14 X X X X X X X Hayek Susan 01/02/14 X X X X X X X Mims Key: X = Present O = Absent O/E = Absent/Excused October 17, 2014 To whom it may concern, CITY OF IOWA CITY Planning & Community Development 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356 -5230 (3 19) 356 -5217 FAX www.lcgov.org You are invited to attend a Community Planning Open House to discuss planning for future development in the Civic District and the North Clinton /Dubuque District of Iowa City and to identify any issues the City should consider in planning documents for these areas. Thursday, October 30 5:30- 7:30pm Emma Harvat Hall, Iowa City City Hall 410 E. Washington Street, Iowa City The Civic District is bounded roughly by Iowa Avenue to the north, Van Buren Street to the east, Burlington Street to the south, and Gilbert Street to the west (see enclosed map). The North Clinton /Dubuque Street District is bounded by Bloomington Street to the north, Dubuque Street to the east, Jefferson Street to the south, and Clinton Street to the west (see enclosed map). These areas were not included in the Downtown Master Plan or Central District Plan and the City is now working to amend the Comprehensive Plan to include these areas. As a property owner, resident, or business owner of a property in one of these areas, your input is valued in the planning process. Please also visit www.icgov.org /planupdate to take a short online survey about your preferences for these areas. If you have any questions or concerns, please contact me by phone at 356 -5252 or by email at john-yapp@iowa-city.org. Sincerely, John Yapp Development Services Coordinator Enclosures Location map NORTH CLINTON /DUBUQUE ST CIVIC DISTRICT DISTRICT DAVENPORT ST ' a88 sr, L ' U RM44 am ' P2 15 ,a, an R � 402 410 22 430 B 5 a,e ' 600 314 a, ' AVE 3r3 310 r 308 0 fO b O to BLOOMINGTON BLOOMINGTON ST O � 230 °' ° , I City Hall 22 P2 227 224 410 222 PRM 218 ' WASHINGTON ST 405 ` 605 61 ,b ey CIA hounce # 204 212 1 wan 406 Ramp 2 MARKET ST CB5 CB1 ' ' 404 U 405 J5096; b 128 a V) 130 Z 124 ? __ COLLEGE ST O 0 f20 ' � f35 � 05 T50T Z >20 2 v • • �.g�• . , •118, ' P. - ' Rec Center LE •',•V .,', •• ,.'.•••',. 220 220 . 9 5500151 •• JEFFEftSO�l. ST' •• ' • ' LI ST • ' v~i 461- , sQ. •' • .. ' _ 477 . • ' ' m ^—1 P2 ' 402 S R IOWA AVE ' U WRY CITY OF ION CITY aND Marian Karr From: Tom Markus Sent: Monday, November 03, 2014 11:47 AM To: Marian Karr Subject: FW: Pilot Policy From: Tom Markus Sent: Monday, November 03, 2014 11:47 AM To: Marian Karr Subject: FW: Pilot Policy If you are making a distribution please include this. From: Donley, Robert [BOARD] [mailto:bdonley @iastate.edu] Sent: Monday, November 03, 2014 11:41 AM To: Tom Markus Subject: RE: Pilot Policy Hey Tom: Sorry for the delay in getting back to you — I tried to take the weekend off from reading e-mail, and do some work on my dissertation. Anyway, the answer is yes — it was approved without change. As you stated last week — we now have a policy on PILOTs, which is in large part due to the great work done by you and your staff in calling this to our attention. So I thank you for helping me to understand the dynamics, and certainly some of the longer term issues and challenges that PILOTS may have on local cities and towns including Iowa City. You have my commitment to continue our communication and to work together to address our mutual concerns going forward. All the best, =. Robert Donley Executive Director Board of Regents, State of Iowa Phone: 515 -281 -6426 Fax: 515- 281 -6420 From: Tom Markus [mailto :Tom - Markus @iowa - city.org] Sent: Friday, October 31, 2014 3:57 PM To: Donley, Robert [BOARD] Subject: Pilot Policy I know the committee approved the policy as submitted by staff. My question is did the full Board of Regents approve the policy as submitted w/o change? I intend to update the city council next Tuesday so I wish to be accurate. T Marian Karr From: Patty McCarthy <patty - mccarthy @icpl.org> Sent: Friday, October 31, 2014 5:11 PM To: Council Subject: Iowa City Public Library news Attachments: Exhibit_ICPL.pdf Dear City Councilors, We invite each of you to visit a very special exhibit at the Iowa City Public Library. "Remembering Our Fallen" is available today through November 8 on the first floor at the Library. In conjunction with the exhibit, Iowa author and Veteran Miyoko Hikiji will read from her memoir "All I Could Be: My Story as a Woman Warrior in Iraq," at Noon on Wednesday, November 5, 2014, in Meeting Room A at the library. All are welcome. Thank you for your consideration and helping us spread the word about these opportunities. Warm regards, Patty Patty McCarthy, Director of Development Iowa City Public Library patty - mccarthy @icpl.org 123 S. Linn St. Iowa City IA 52240 -1803 319.356.5249 s -! a traveling photo exhibit honoring the Iowans who have died from wounds suffered in a war zone since September 11, 2001 November 1 - November 8, 2014 1st Floor Gallery, Iowa City Public Library 1:4 IOWA CITY ank � ve PUBLICI LIBRARY � b City, IA 52240 319 -356 -5200 • www.lcpl.olg wire MOmi11u151 ."' 168, Sae 1661 5un 1E -5 `ly 00— 1 / DRAFT IP14 1 CITIZENS POLICE REVIEW BOARD MINUTES — October 13, 2014 CALL TO ORDER: Chair Joseph Treloar called the meeting to order at 5:30 P.M. MEMBERS PRESENT: Melissa Jensen, Royceann Porter (5:34P.M.), Mazahir Salih MEMBERS ABSENT: None STAFF PRESENT: Staff Patrick Ford and Kellie Tuttle STAFF ABSENT: None OTHERS PRESENT: Captain Doug Hart of the ICPD RECOMMENDATIONS TO COUNCIL (1) Accept CPRB Report on Complaint #14 -03 REPORT FROM NOMINATING COMMITTEE Jensen and Salih were appointed to the nominating committee at the September 15th meeting. Salih reported that the committee met and the recommendation was for Jensen to serve as Chair and Treloar as Vice - Chair. NOMINATIONS FOR OFFICE OF CHAIRPERSON AND VICE - CHAIRPERSON Motion by Salih and seconded by Jensen to nominate Jensen for Chair and Treloar for Vice - Chair. Motion carried, 3/0, Porter absent. PRESENTATION ON LOCAL OPTION SALES TAX & THE CITY BUDGET City Finance Director Bockenstedt gave a PowerPoint presentation to the Board regarding the Local Option Sales Tax. CONSENT CALENDAR Motion by Treloar and seconded by Salih to adopt the consent calendar as presented or amended. • Minutes of the meeting on 09/15/14 • ICPD Department Memo #14 -20 (August 2014 Use of Force Review) • ICPD Use of Force Report - August 2014 Motion carried, 4/0. OLD BUSINESS Charter Review Update — Tuttle referenced the current and proposed language from the September 15th meeting which was included in the meeting packet. Tuttle stated that she did not believe the change reflected the concerns that past Board members had regarding questions being directed to the Board regarding police procedures and not having police presence at the forums to answer those questions. Treloar liked the proposed change to the language and made the motion to recommend changes. Motion by Treloar, seconded by Salih to recommend the proposed changes in language to the Charter Review Commission. Motion carried, 4/0. CPRB October 13, 2014 Page 2 NEW BUSINESS None. PUBLIC DISCUSSION None. BOARD INFORMATION None. STAFF INFORMATION Ford had some concerns regarding the 90 day deadline for the Board and thought they should be prepared to move as quickly as possible at the first meeting after receiving the Chief's report. In order to be able to set the level of review at that first meeting he had 3 suggestions that he wanted the Board to consider regarding the complaint review process. First he thought that the Board should amend their ordinance so that when the Chief compiles a report that it must have the audio /video included if there is any. Captain Hart said that when the reports are being processed he does a memo stating to include any audio /video with the report. Secondly Ford suggested that as soon as the Clerk's office receives the Chief's report it should be sent to the Board as soon as possible, instead of in the next meeting packet. Lastly he thought they should set a guideline as far as viewing /listening to the audio /video ahead of time. By receiving it earlier and having already reviewed the audio /video, the Board could then be prepared to set the level of review at the next meeting. After discussion, the Board agreed to not make any changes to the ordinance at this point regarding receiving audio /video with the Chief's report and that staff will mail out the Chief's report as soon as they are received and inform the Board if there is audio /video and the length of time. Motion by Treloar, seconded by Salih to review any audio /video less than 30 minutes at the next meeting, and if the audio /video is over 30 minutes Board members will set up a time with staff to review before the next meeting. Motion carried, 4/0. Tuttle stated that the deadline for applications for the vacancy on the Board was Wednesday, October 22nd EXECUTIVE SESSION Motion by Treloar, seconded by Salih to adjourn into Executive Session based on Section 21.5(1)(a) of the Code of Iowa to review or discuss records which are required or authorized by state or federal law to be kept confidential or to be kept confidential as a condition for that government body's possession or continued receipt of federal funds, and 22.7(11) personal information in confidential personnel records of public bodies including but not limited to cities, boards of supervisors and school districts, and 22 -7(5) police officer investigative reports, except where disclosure is authorized elsewhere in the Code; and 22.7(18) Communications not required by law, rule or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications from such persons outside of government could reasonably believe that those persons would be discouraged from making them to that government body if they were available for general public examination. Motion carried, 4/0. Open session adjourned at 6:09 P.M. CPRB October 13, 2014 Page 3 REGULAR SESSION Returned to open session at 7:35 P.M. Motion by Treloar, seconded by Salih to request a 60 -day extension for CPRB Complaint #14 -02, due to requesting that the Police Chief modify the findings in the Chief's investigative report, pursuant to the authority of local ordinance 8- 8- 7(B)(2). Motion carried, 4/0. Motion by Salih, seconded by Treloar to to forward the Public Report as amended for CPRB Complaint #14 -03 to City Council. Motion carried, 4/0. TENTATIVE MEETING SCHEDULE and FUTURE AGENDAS (subiect to change) • November 10, 2014, 5:30 PM, Helling Conference Rm • November 11, 2014, 5:30 PM, Helling Conference Rm (Moved to Monday, November 10th) • December 9, 2014, 5:30 PM, Helling Conference Rm • January 13, 2015, 5:30 PM, Helling Conference Rm • February 10, 2015, 5:30 PM, Helling Conference Rm Motion by Treloar, seconded by Salih to move the November 11th meeting to Monday, November 10th at 5:30 P.M. due to scheduling conflicts. Motion carried, 4/0. ADJOURNMENT Motion for adjournment by Treloar, seconded by Salih. Motion carried, 4/0. Meeting adjourned at 7:38 P.M. y� V unnun AD f9 y 1 q O FBI ~ W " �• l J td td O I a� o. � � N n oa '•. n fD � y . '� CD IIOQ �D i ' o0 tij N �C O x x x ZI O �4 DC O yC N o� i O x O x N 00 I 7C yC yC yC yC � � w { > k X ; >C � O �'C ✓C h' N x ; X W O� yC O 00 W 1 q O FBI ~ W " �• l J td td O I a� o. CITIZENS POLICE REVIEW BOARD A Board of the City of Iowa City 410 East Washington Street Iowa City, IA 52240 -1826 (319) 356 -5041 October 13, 2014 r-� e- a CD To: City Council : }- Complainant City Manager Sam Hargadine, Chief of Police Officer(s) involved in complaint ., From: Citizen Police Review Board Re: Investigation of CPRB Complaint #14 -03 This is the Report of the Citizens Police Review Board's (the "Board ") review of the investigation of Complaint CPRB #14 -03 (the "Complaint "). BOARD'S RESPONSIBILITY Under the City Code of the City of Iowa City, the Board's responsibilities are as follows: 1. The Board forwards all complaints to the Police Chief, who completes an investigation. (Iowa City Code Section 8- 8- 7(A).) 2. When the Board receives the Police Chiefs report, the Board must select one or more of the following levels of review, in accordance with Iowa City Code Section 8- 8- 7(B)(1): a. On the record with no additional investigation. b. Interview /meet with complainant. c. Interview /meet with named officer(s) and other officers. d. Request additional investigation by the police chief, or request police assistance in the board's own investigation. e. Perform its own investigation with the authority to subpoena witnesses. f. Hire independent investigators. 3. In reviewing the Police Chiefs report, the Board must apply a "reasonable basis" standard of review. This means that the Board must give deference to the Police Chiefs report, because of the Police Chiefs professional expertise. (Iowa City Code Section 8- 8- 7(13)(2)).) 4. According to Iowa City Code Section 8- 8- 7(B)(2), the Board can recommend that the Police Chief reverse or modify the Chiefs findings only if: a. The findings are not supported by substantial evidence; or b. The findings are unreasonable, arbitrary or capricious; or c. The findings are contrary to a police department policy or practice, or any federal, state or local law. 5. When the Board has completed its review of the Police Chiefs report, the Board issues a public report to the city council. The public report must include: (1) detailed findings of fact; and (2) a clearly articulated conclusion explaining why and the extent to which the complaint is either "sustained" or "not sustained ". (Iowa City Code Section 8- 8- 7(B)(3)).) 6. Even if the Board finds that the complaint is sustained, the Board has no authority to discipline the officer involved. BOARD'S PROCEDURE The Complaint was initiated by the Complainant on 07/15/2014. As required by Section 8- 8 -5(B) of the City Code, the Complaint was referred to the Chief of Police for investigation. The Chief's Report was filed with the City Clerk on 08/26/2014. The Board voted on September 15, 2014 to apply the following Level of Review to the :Chiefs�,Report: On the record with no additional investigation, pursuant to Iowa City Code Section (a). The The Board met to consider the Report on August 26, 2014, September 15, 2014 arcyOctober 13� ;014. Board members reviewed audio and /or video recordings of the incident. FINDINGS OF FACT On July 10, 2014, Iowa City police officers were conducting surveillance on a residence as part of an ongoing narcotics investigation. During the surveillance, a vehicle pulled into an adjacent parking lot, left the lot, and later returned with two individuals who entered the building under surveillance. The individuals left a short time later. The vehicle was followed by officers, and eventually stopped by a marked police unit for speeding. The registered owner of the vehicle was identified as the driver, who is also the Complainant. The Complainant was unable to provide valid proof of insurance for the vehicle. Officers requested the assistance of the canine officer who was present as part of the surveillance investigation. The canine positively alerted at the vehicle. Both the Complainant and the passenger were twice asked to exit the vehicle before complying. Officer A conducted a pat down search of the Complainant, nothing is found: The Complainant is asked to sit on the curb. The passenger is also searched, and is found in possession of $5000 in cash. Officers locate an empty bag smelling strongly of marijuana in the back seat of the vehicle. During the pat downs and the search of the vehicle, the Complainant is very vocal about being harassed and the legality of the search. Officer B shows the bag to the Complainant and says "take a whiff of this hombre." The Complainant voices his displeasure with the comment and Officer B apologizes. The Complainant continues to yell and curse. After the search is completed, the Complainant is issued a citation for no insurance, and he and the passenger are allowed to leave. ALLEGATION 1 — Illegal Search of the Vehicle. The Complainant alleges the statement the canine alerted on his vehicle is false because the dog never approached his vehicle. The review of the video clearly shows the canine approaching and alerting at the back area of the vehicle. The U.S. Supreme Court has ruled that a positive alert by a trained canine is probable cause to search a vehicle. Allegation: Illegal Search of the Vehicle - Not sustained ALLEGATION 2 — Harassment. The Complainant says there is a pattern of his vehicle being stopped and searched by the Iowa City Police Department because of the color of his skin. In checking electronic records, there is no record of any contact between the Iowa City Police Department and the Complainant prior to the stop that resulted in the complaint. A search of Iowa Courts Online shows the Complainant has received speeding citations from other law enforcement agencies. Allegation: Harassment - Not sustained ALLEGATION 3 — Use of a Racial Epithet. The Complainant alleges he was called "Hombre" in a racist manner by Officer B. Online research shows no racist meaning for the word. Checks with three members of the Hispanic community confirm there is no racial, offensive, or derogatory meaning to the word when used in the context it was used by Officer B. When the Complainant stated he was offended by the term, Officer B apologized and advised it was not his intent. After reviewing the video, the Board agrees Officer B's intent was not to be offensive. Officer B was immediately counseled by his supervisor regarding the manner and tone in which he speaks could be interpreted. Allegation: Use of a Racial Epithet - Not sustained COMMENTS None. r1 -3 X" 4 L '-I' .l . lr4ry