HomeMy WebLinkAboutMinutes-04/20/2009April 20, 2009
The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council
Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, April 20, 2009. Mayor Timothy J.
Hurley in the Chair. Roll Call: Cole, Getty, Hart, Steve Schmitt, Welper, Reggie
Schmitt. Absent: Greenwood.
Moment of Silence.
Pledge of Allegiance: Michelle Weidner, Chief Financial Officer.
128891 - Reggie Schmitt/Steve Schmitt
that the Agenda, as amended, for the Regular Session on Monday, April 20, 2009,
at 5:30 p.m., be accepted and approved. Ayes: Six. Absent: Greenwood.
Motion carried.
128892 - Reggie Schmitt/Steve Schmitt
that the Minutes, as proposed, for the Regular Session on Monday,
2009, at 5:30 p.m., be accepted and approved. Ayes: Six. Absent:
Motion carried.
April 13,
Greenwood.
Mayor Hurley read a Proclamation declaring April 19-25, 2009 as Medical
Laboratory Professionals' Week.
Mayor Hurley read a Proclamation declaring April 19-25, 2009 as Arbor Week.
Mayor Hurley read a Proclamation
Housing Month.
Mayor Hurley performed Swearing-in
CONSENT AGENDA
128893 - Reggie Schmitt/Steve Schmitt
declaring April 20-26, 2009 as National Fair
of Police Officer Justin Davidson Brandt.
that the following items on the consent agenda be received, placed on file and
approved:
a. Resolutions to approve the following:
1. Resolution approving Schedule AP642, pp. 1-74, dated April 20, 2009, in
the amount of $2,849,322.65, a copy of which is on file in the City
Clerk's office, together with recommendation of approval of the Finance
Committee.
Resolution adopted and upon approval by Mayor assigned No. 2009-332.
2. Communication from City Clerk transmitting request of McKinstry Elementary
School for an exception to the burning ordinance to burn prairie grass
located in the southeast corner of the athletic field on April 13-30,
2009, with recommendation of'approval of Fire Chief.
Resolution adopted and upon approval by Mayor assigned No. 2009-333.
3. Communication from City Clerk transmitting request from the Crime Victims'
Rights Committee for a variance to the Noise Ordinance on May 2, 2009 from
2:00 p.m. to 4:00 p.m. in conjunction with Crime Victims' Rights Week
event to be held in Lincoln Park, including use of PA system and a band.
Resolution adopted and upon approval by Mayor assigned No. 2009-334.
4. Communication from City Clerk transmitting request from the Neighbors for
Life Neighborhood Association for a variance to the Noise Ordinance on May
30, 2009 from 12:00 p.m. to 4:00 p.m. in conjunction with Lafayette Park
Anniversary Celebration Picnic to be held in Lafayette Park, including use
of PA system.
Resolution adopted and upon approval by Mayor assigned No. 2009-335.
April 20, 2009 Page 2
Consent Agenda continued
b. Motion to approve the following:
1. Greg Fangman, Police Sergeant; Al Bovy and Gus Farmer, Police Officers; to
attend 2009 USPCA Region 21 Detector Certification Trials in Waterloo,
Iowa on April 26-29, 2009, with costs not to exceed $450.00, including use
of city vehicle.
2. Justin Brandt, Police Officer, to attend ILEA 229th Basic Training Police
Academy in Johnston, Iowa on April 26 -July 31, 2009, with costs not to
exceed $5,200.00, including use of city vehicle.
3. Communication from Human Rights Director transmitting transfer of Shelly
Kruger, Administrative Secretary, to the Waterloo Commission on Human
Rights Department.
c. Beer License Permit Application
Class B
Godfather's Pizza, 3811 University Avenue (Renewal) (Expires 4/30/10)
(Includes Sunday Sales)
d. Liquor License Permit Application
Class E
CVS Pharmacy, 2068 Logan Avenue (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
CVS Pharmacy, 2060 Crossroads (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
e. Wine License Permit Application
Class B
CVS Pharmacy, 2068 Logan Avenue (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
CVS Pharmacy, 2060 Crossroads (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
f. Beer License Permit Application
Class C
CVS Pharmacy, 2068 Logan Avenue (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
CVS Pharmacy, 2060 Crossroads (Renewal) (Expires 5/31/10) (Includes Sunday
Sales)
g Beer/Liquor License Permit Application
Class C
Barbados, 229 E. 4th Street (New) (Expires 4/13/10) (Includes Sunday Sales)
h. Bonds.
Ayes: Six. Absent: Greenwood. Motion carried.
BID OPENING
128894 - Getty/Hart
that the date for bid opening be changed to April 27, 2009 at 5:30 p.m. in the
City Hall Council Chambers in conjunction with Asbestos Removal for 181 E. 10th
Street, 116-118 E. 8th Street, 1218 Sycamore Street, 218-220 and 222-224 W. 2nd
Street, Contract No. 133 -AR -04 -13 -09 -GO. Ayes: Six. Absent: Greenwood.
Motion carried.
UNFINISHED BUSINESS
128895 - Hart/Steve Schmitt
that communication from Leisure Services Director transmitting recommendation of
award of contract in the amount of $39.74 per acre for Option A; $39.74 per acre
for Option B; $24.74 per acre for Option C; $34.74 per hour for Option D and
$54.74 per acre for Option E to Robert C. Hauptly Construction Co. of Waterloo,
Iowa in conjunction with 2009 Right -of -Way Mowing, be received, placed on file
and "Resolution approving award of said contract", be adopted. Ayes: Six.
Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-336.
• •
• •
April 20, 2009 Page 3
Unfinished Business continued
128896 - Hart/Steve Schmitt
that communication from Assistant City Engineer transmitting recommendation of
award of contract in the amount of $254,757.04 to Helmkamp Construction of Iowa
of Ankeny, Iowa in conjunction with F.Y. 2009 Big Rock Road Bridges Replacement
With Box Culverts, Contract No. 739, be received, placed on file and "Resolution
approving award of said contract", be adopted. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-337.
Greenwood now present at 5:51 p.m.
DOCUMENTS
128897 - Steve Schmitt/Welper
that communication from Leisure Services Facilities Manager transmitting
Completion of Project for work performed by LNS Builders, Inc. of Waterloo, Iowa
at a cost of $15,850.00 in conjunction with 2008 Waterloo Softball Association
Restroom Block Work Project, Portion II, be received, placed on file and
"Resolution approving said documents", be adopted. Ayes: Seven.
Resolution adopted and upon approval by Mayor assigned No. 2009-338.
128898 - Steve Schmitt/Welper
that Public Expo Management Agreement with Waterloo Expo Services Corp. (WESCO)
for management of Expo and events to be conducted at the Expo, be received,
placed on file and "Resolution approving said agreement", be adopted and Mayor
and City Clerk authorized to execute same.
Prior to a vote on the above motion, the following comments were heard.
Chris Wendland, Assistant City Attorney, reported that as a
discussions today, there are some modifications suggested to this
The principle thing is on section 2 of the management agreement
result of
agreement.
concerning
compensation to the city. It has been recommended that it would be an advisable
thing for the city to create a bit more distance with the WESCO organization,
primarily so that the city doesn't have to include the operations of WESCO on
its own books, audits and so forth. Essentially it complicates the arrangement
quite a bit as an extra level of burden and cost for the city if the city
receives the net revenues, (how we defined it before)from this operation. As
things now stand, no one knows whether this is going to cash flow in such a way
as to spin off any net revenues but on the chance that it does if we leave it as
it is written right now then its deemed to be a component unit of city
government and has to be included in the audit and so forth. That raises a host
of issues, which we would prefer not to have to deal with. What has been talked
about instead of doing that is to change section 2 to provide that there is no
set compensation that will come from WESCO to the city. Instead, from time to
time we are going to see how this relationship is working financially. If we
determine that it is becoming revenue producing, then the city may determine
through negotiation with WESCO to provide for some rental payment. In the
absences of that kind of agreement based on a sound financial footing for this
operation there is no rent paid to the city, and by doing that we can side step
this component unit characterization and all the ills that webelieve go along
with that. There are a few other smaller modifications which aren't a matter of
substance but just a matter of cleaning some things up. This is the only one of
substance that we have identified and dealt with so far.
Mayor Hurley explained that these are late developments and discussions have
been going on all day. Mayor Hurley stated that the changes put forth by Mr.
Wendland puts some distance between WESCO and the city. Michelle Weidner's
background and expertise in this saw that it would link us audit -wise if it was
worded the way it is now, so we need to change the language so that there is no
set compensation. If council can agree to that then we could make a motion to
amend and trust that the right legal language will get in there. We can move on
because it is important to the Expo management that we do get on with the
agreement.
Councilperson Hart asked for clarification that any profit that comes from it
does not go to the city or we are not writing it in here as such. Mayor Hurley
responded that if there were net proceeds the city would charge WESCO rent.
April 20, 2009 Page 4
Documents continued
Councilperson Steve Schmitt noted that it is just a great looking facility, and
he certainly hopes it all turns out as projected with the business plan that Mr.
Stoddard put together, but he has some anxiety about approving something without
knowing specifically what it is council is approving. Councilperson Steve
Schmitt stated that he thinks it was Thursday morning that council talked about
the liquor license and some of the other specific expenses of WESCO, and he
thought the answer from Mr. Walsh at that time was he wasn't sure who was going
to pay for the license. Councilperson Steve Schmitt asked if we have gotten to
that point yet or did he misunderstand.
Mayor Hurley responded that conversation is separate from this agreement. They
have applied for the liquor license, but it is important to set up the WESCO
Board, so they have the formal non-profit 501C and the board members are
identified. Mayor Hurley stated he believes the discussion about the money was
for startup operations and funds to pay for the dram shop insurance and those
sort of things, but that has not been determined at this hour.
Councilperson Cole stated that the public Expo agreement that council had in
their packet where we are talking about the only compensation payable by WESCO
to the city shall be net revenues, and she asked is this what was decided, what
we have been talking about in changes.
Mr. Wendland responded what council has in front of them was a draft until late
this afternoon. The draft that he and Ms. Weidner have been working with this
afternoon keeps the first sentence in place and specifically provides as follows
after that: From time to time during the term of this agreement the parties
will negotiate with each other in good faith and will in light of the overall
financial results of Expo operations agree on any rent to be paid to city for
lease of the Expo property. Because the Expo is a new enterprise and the
parties presently lack certaintyabout its financial outlook, the parties agree
that no rent is due and payable at least until such time as the Expo has a
demonstrated record of financial liability.
Councilperson Cole asked if we would be screwing things up horribly if we
actually waited until we had the proper verbiage in front of council before
council votes. Wait one more week so that council can actually see what we are
voting on.
Jay Stoddard stated he has been hoping to get a liquor license in place for the
last month, and every week it seems to be postponed. Its getting down to do or
die sort of thing. The construction of the facility is doing excellent, and he
thinks that is going to line up just fine. Mr. Stoddard stated the biggest
thing on his mind is not the construction, but getting the management agreement
in place and getting a liquor license approved.
Mayor Hurley asked Mr. Stoddard if he has the liquor license application in
process. Mr. Stoddard responded they have the paperwork ready to go, but they
need a dram shop to officially push the application forward, so right now they
are dead in the water waiting for the management agreement to be approved.
Mayor Hurley stated council could act on the agreement tonight with Mr.
wendland's recommended language and the hard copy will come, or wait until the
revised hard copy is in front of council. The other options are to hold a
special council meeting on Thursday morning after the agenda meeting or wait
until next Monday.
Cole/Getty
that this item be tabled and a special council meeting be held on Thursday,
April 23, 2009 following the 8:00 a.m. agenda meeting, and that the up-to-date
language for the agreement be in council's hands within 48 hours.
Prior to a vote on the above motion, the following comments were heard.
Councilperson Cole stated she doesn't think its fair to get something thrown at
council two minutes before they are suppose to vote.
Councilperson Hart noted that one of the areas deals with the removal of snow
and ice, and he asked if there is a chart to show where WESCO takes over the
removal of snow and ice from where the city actually has to take over in those
areas. Mayor Hurley responded .there will be because it mentions snow and ice
several times in article 4b1.
• •
• •
April 20, 2009 Page 5
Documents continued
Councilperson Hart noted it is also mentioned in 5(2) and 7, so he is not clear
about where they stop and at what point the city is responsible for removal of
snow and ice.
Mayor Hurley explained that at the Five Sullivan Brothers Convention Center, the
Ramada is responsible for the steps, landings and items down to the sidewalk
area, and then it becomes the city's responsibility.
Paul Huting, Leisure Services Director, stated that his understanding is the
city would be responsible up to the building, so WESCO is responsible for the
actual sidewalks in and around the building. Mr. Huting stated that the way he
is reading this is it would be similar to the Convention Center where the steps
and the areas immediately adjacent to that building would be the responsibility
of WESCO.
Councilperson Welper stated that when the agreement was being put together,
there were questions as to exactly how we were going to be doing things, and
that it might take a year or two to tweak how we are doing things. We probably
are not going to think of things the first time through. Councilperson Welper
stated he doesn't have a problem with waiting but understands that we are going
to be looking at this in another year or two.
Following comments a vote was
following result. Ayes:
128899 - Reggie Schmitt/Welper
that communication from
Seven.
taken on the above motion to table with the
Motion carried.
Community Planning &
amendment to Development Agreement with Logan Plaza, LLP for $2 million
renovation of the existing Logan Plaza retail center to change the start date to
May 1, 2010 and the completion date to May 1, 2011, be received, placed on file
and "Resolution approving said amendment", be adopted and Mayor and City Clerk
authorized to execute same.
Development Director transmitting
Prior to a vote on the above motion, the following comments were heard.
Councilperson Hart asked in regards to the property how many lease deals have
been proposed to the owner of the property since the beginning of the project
with the CDC. What is the cost per square foot at the Logan Plaza area versus
the assessment for the fair market value for the property. Councilperson Hart
stated he is asking about the number of people looking at being tenants at the
actual Logan Plaza because he has heard conversations of several different
people that have been very interested in the property. Councilperson Hart
stated he also heard that Lockard has done good work trying to make some of
those deals happen somewhere or another.
Brady Gruhn, Lockard Realty, 4501 Prairie Parkway, Cedar Falls, Iowa, and
representing Mr. Rappaport, responded that he would say no less than 20
different lease potentials have been proposed. That would be different
retailers, restaurants, different users of one form or another have been
proposed in that center of variant uses and at variant lease rates. The
activity in that center has been high from a leasing standpoint, from a
commercial real estate standpoint, so there definitely has not been a lack of
effort or activity that has taken place.
Councilperson Hart asked is the amount that is being offered per square foot
versus is there some kind of assessed value per square foot for the particular
area that a developer would start with. Lets say it could be between $10.00 to
$12.00 per square foot.
Mr. Gruhn responded there really is no set formula. Commercial real estate is
not a science, its more of an art. You evaluate the market conditions, you
evaluate not only the location of that particular piece of property that your
marketing but also the conditions that factor into things that are outside of
your control. We are all well aware of that as you can flip on any TV station
at any time and figure out what the economic conditions are right now that we
have here to prevent some of the lease deals from being executed.
Mayor Hurley asked of those 20 or so lease potentials, over time has that rental
cost per square foot been fairly stable or has it varied according to the rental
leaser.
April 20, 2009 Page 6
Documents continued
Mr. Gruhn responded that the leasing efforts begun over a year ago and,
unfortunately, the economic conditions were pretty much in step with the
beginning of a decline in economic conditions throughout the nation almost at a
simultaneous time.
Mayor Hurley asked Mr. Gruhn if he could characterize when we say leasing
potentials did those range anywhere from contacts to a nibble to a bite and off
the hook.
Mr. Gruhn responded they would range from somebody who has absolutely zero
interest where you are basically cold calling. Your going out, your knocking on
doors to see if you can find a level of interest that is unsolicited, and that
is what their leasing team does. They go out and knock on doors. It has ranged
all the way up to two people who have had a level of interest that they would
consider to be elevated; 50/50 in his line of business is an elevated level of
interest. You may or your may not get the deal done. They have seen the lease
rates move with the economy, but unfortunately it comes down to a factor that is
outside of just a lease rate. Businesses right now have greatly pulled back all
over the country, and it really is outside of just being able to offer a low
lease rate. Not necessarily this project specifically but on other projects
that they have worked on leasing efforts. You could offer somebody a zero lease
rate, but if it doesn't fit in their business plan than they will not go for it.
Mayor Hurley asked Mr. Gruhn in his segment of real estate market if there is
any consensus forming as to when we will bottom out and will start see increased
interest.
Mr. Gruhn responded they are seeing a little bit of a bottoming out. The thing
with the commercial real estate industry is there is even a longer lag time with
commercial real estate than there is going to be with the other segments of the
economy. Housing will start to show an improvement before commercial real
estate. The indications are that it could be, if we do reach the bottom here
within the next couple of months, optimistically speaking it may lag behind
another six, eight or twelve months before we start to see real market
improvement in a commercial real estate.
Councilperson Hart asked if there have been any very serious possible tenants to
go there that have for one way or another not been able to bring the two
together to start that lease agreement or to move into Logan Plaza because this
letter that council has talks about caused interested tenants to delay their
commitment to Logan Plaza until more clarity, it talked about Menard's and
talked about all those other factors. Have there been any serious commitments
made as far as folks having all their interest and everything they needed to do
to move in.
Mr. Gruhn responded they have reached a point where they have been able to get
people to begin the process of putting things on paper, and that is always a
good step in their industry. When you get people to start putting things on
paper to start to pay their attorneys to review letters of intent or lease
agreements, you know that your at a good point, and they have reached that point
with a few tenants. They are still at that point of negotiating with current
tenants, not current in the center, but with tenants currently that have
expressed an interest of going in there. The letter that Mr. Rappaport sent
out on April 15, 2009 addressed to the council and to the Mayor is a really good
synopsis and snap shot of really what is encompassing that particular center.
The activity has stayed high. Lockard's efforts and Mr. Rappaport's efforts
have stayed elevated throughout this entire process. They have reached a very
good point with some tenants that for reasons outside of our control they are
not able to be consummated, but they continue to have good conversations. At
this particular point in time, although they are not able to disclose exactly
who they are dealing with, but they are having continued discussions with some
of those that they have literally been talking to for six or eight months. As
well as new tenants and potential tenants that have come on board within
probably the last two to three months.
Councilperson Hart stated the question about fair market value and its not a
easy process to determine, but is there a number that is assessed to the area of
Logan Plaza. That developers or someone would say okay per square foot a good
market value to attract tenants to this particular location would be this
number. Or is there not a number. Or what is being charged now per square foot
when someone comes to Mr. Gruhn, what is that number right now.
• •
April 20, 2009 Page 7
Documents continued
Mr. Gruhn responded it is going to vary. Every retailer has their own Performa
that they need to make their numbers work. You have retailers that their
average ticket is going to be $50.00 or $150.00 when people walk out. You also
have retailers such at Dollar Tree, just to throw them out as an example,
everything they sell is a dollar. So when your dealing with different price
points with different retailers they can obviously fit within a different
economic box than others. Lockards' job, as real estate professionals, as
consultants and advisors to Mr. Rappaport, is to help him determine where that
market is on a retailer by retailer basis. When they approach each retailer
they have to do their own evaluation externally of what that retailer is willing
and able to pay for that particular space. Mr. Rappaport as a developer and
Lockards also operate and has development, have our own performer as a
developer. Basically you have to .go through and determine whether or not doing
a deal is advantageous to you or if its not advantageous to you. So there is
obviously a break even at a point of diminishing returns as well from a
developers standpoint.
Councilperson Hart asked if Mr. Rappaport's number, since he is the developer,
been he been pretty consistent with what Lockards.
Mr. Gruhn responded its very inline with the market. There definitely is a
realism behind the center. Mr. Rappaport is a realist. He has been in this
business and has owned numerous centers. He understands the art of the deal and
where that point of diminishing to return is, so yes it has definitely been
approached from a very realistic standpoint. But each deal is also structured
differently. There are a thousand different ways from the structure of a real
estate lease deal. Percentage rent on sales to somebody taking a space in as is
condition and asking for maybe a tenant improvement allowance, and they will
take in at a lower lease rate. To somebody asking for you to turn over the
space to them turnkey ready for them to move in, opening up and start selling.
It really is a very fluid movable number so he is not able to just say $7.00 per
square foot or something like that. Its really something more complex than
that.
Councilperson Hart stated that the OCS grant has a specific deadline. We have
two OCS grants and now we are probably looking at a third OCS grant and the fact
that we are going to ask for an extension when we know that that OCS grant is
tied to deadlines, its tied to creating jobs in that area, and its tied to
several different things. How would the federal government look at us when they
have already given a couple different grants, and then we still don't have a
product that is produced from working out because the Logan Plaza area was the
first OCS grant that we applied for. Councilperson Hart stated his question is
when is the deadline for the first OCS grant and how is it going to look that we
have three OCS grants without a completed project that has created jobs in this
particular area when we are talking about extending the deadline for the
developer as we speak.
Morgan Wortham, Executive Director of the Highway 63 CDC, stated that we
received the first OCS grant in September 2007. Its a three year grant so we
have to complete it by September 30, 2010, and the agreement is the creation of
52 jobs in the Logan Plaza Center.
Mayor Hurley asked Ms. Wortham if extensions available on OCS grants.
Ms. Wortham responded extensions are available on OCS grants up to an additional
year. That would be something we would have to go through the process of
requesting from our federal grant administrator. We would have to write a
written request with a good reason and demonstration that we will still meet
those goals by the end of that extension period. Ms. Wortham stated that we
have until September 2011 for the second grant that was received in September
2008, and that is for a separate project not on the Logan Plaza site but in the
same general area for a sit down restaurant.
Councilperson Hart stated he knows that the CDC has had a stake in the OCS grant
with the anchor being the Logan Plaza. Councilperson Hart asked if we go ahead
and apply for an extension, has there already been soft costs that the CDEC has
expended to try to help, whether its architectural or it is to help Mr.
Rappaport have those things. If there are no more deadline than what happens to
that money. Ms. Wortham responded it goes back to the federal government if we
don't utilize it by our grant period.
April 20, 2009 Page 8
Documents continued
Councilperson Hart asked if we spent $100,000.00 already where does the money
come from to pay back the grant, does that money come from the developer. Ms.
Wortham responded as long as we did that in good faith the federal government is
not going to ask us to pay that money back to them. Ms. Wortham stated as long
as we did our due diligence as far as proceeding with the project in good faith,
they are not going to ask for that money back. What it does do is it
jeopardizes future funding that we may get from the federal government.
Noel Anderson, Community Planning & Development Director, stated on the first
OCS grant in terms of meeting that deadline they are under construction for the
smaller mini mall. One of the reasons that they began construction of the mini
mall was because of some of the clients that were looking at the site. The
Logan Plaza Center is not how you would build a strip mall today. Its a little
bigger, its a little bit deeper and the spaces are a little bit different than
newer ones you would see today. They built that smaller strip mall that is
under construction right now to try to get some of those tenants in there that
are looking right now for spaces, so that is working toward the creation of
those 52 jobs.
Mr. Gruhn stated they have 7,500 square feet that was built to accommodate more
to Mr. Hart's question about the market and what is available out there. The
smaller strip malls that we have all seen throughout the entire Cedar Valley.
There are a number of these smaller strip centers or mini malls as they are
called being built, and that is to accommodate the market. Some of the smaller
financial services, sandwich shops, hair cutters, businesses like that to go
into the mini malls. Mr. Gruhn stated they have all worked very closely on this
because they all want to see success in this area, and Ms. Wortham's mentioning
of good faith is right on the button when your talking about some of these
grants and these funds being expended. Mr. Rappaport in very good faith did go
out and construct a building without any tenants pre -signed up, but knowing
where the current conditions are right now and he went out on his own dime and
constructed 7,500 square feet to meet this market right now. Mr. Gruhn stated
he thinks a very good case can be made as far as extensions of not only OCS
grant money but as well as this development agreement, just to show his desire
to see improvement and to have success up in that area
Councilperson Hart asked if the free standing building is tied to this
particular development agreement or was the actual Logan Plaza building tied to
the agreement. Mr. Anderson responded there were separate development
agreements for the new strip mall and the existing center for the City of
Waterloo portion.
Ms. Wortham stated as far as the OCS money is concerned its all tied into one
project We consider the whole site, the Logan Plaza site, meaning all the
property that Mr. Rappaport owns to be a part of the project. We have expended
dollars for both the strip mall and for the Logan Plaza Center. Both of them
are all one project, so jobs created in the strip mall are jobs counted towards
the goal of the project.
Councilperson Getty asked if when the OCS grant was first granted wasn't it for
the Hy -Vee building. Ms. Wortham responded that is correct, it was for the
existing Logan Plaza Center, the old Logan Plaza building, the whole center.
Mayor Hurley stated the existing center is not built like a strip mall would be
today. Its deep, broad and it would be a lot smaller, so he tried to jump on
his own on the smaller 7,500 square feet mini mall that he is doing to attract
potential tenants.
Mr. Gruhn responded that is very accurate. Its not prototype. Any developer
that goes out and does something spec, in other words without tenants pre -signed
giving their specifications of the exact size of space that they want, its very
difficult and especially in this economic environment. Mr. Gruhn stated he does
not think you will find very many spec buildings of large size going up. The
7,500 square foot retail center was built out front. Those tenants tend to fit
themselves into those spaces, 1,200 square feet, 1,500 square feet, and 2,000
square feet. That is something that could be built and seize the opportunities
that are available in this current economic time. It shows vibrancy, it shows
development is happening out there, and it does lend itself well towards another
tenant that may be of larger size. There is 16,000 to 17,000 feet in the old
Hy -Vee box in the center. Without something fresh, without something happening
sometimes things get stale, so its a good first step to seize on the market
right now, but it also show that things are progressing. Hopefully, Menard's
and continued things happen down the road. That is all going to help benefit
this.
• •
• •
April 20, 2009 Page 9
Documents continued
The bottom line is an extension of this particular development agreement is not
just necessary its paramount to continuing any of that momentum in progress that
we have seen to date, and continuing all of that and being able to seize and
jump on those opportunities as they do become available in the next hopefully
six to twelve months.
Councilperson Hart stated he thinks it says the renewal of existing CVS lease,
extension of the Dollar General lease, so he was just confused, take care of
home first.
Mr. Gruhn responded those are extremely important. There are existing tenants
that are in the center and its extremely important to be able to maintain the
existing tenants that you have. More vacancy is definitely not going to help
the cause up there so some tremendous steps have been taken by the Lockard team
as well as Mr. Rappaport to ensure that what is there currently continues to
remain there so that it can be built on and not go back to ground zero or square
one and start rebuilding.
Councilperson Hart stated he has heard that there has been some disconnect in
regards to fair market value. Whatever that is structured as being between
$10.00 to $12.00 for some of the existing members, and then actually wanting the
owner's price for the development which is a little bit higher, but he has to
know what he is doing if he is doing it. Councilperson Hart asked if there is
any way to put some parameters around them to say look if someone comes with
what we heard was the fair market value of between $10.00 to $12.00 and they
have a legitimate established business they are ready to do business. Are there
some parameters that can be put around this development agreement so he knows
that there is then a great effort made to fill those places up. He has heard
Lockards did great work, the company has done great work to bring people there,
but there has been a disconnect in regards to actually leasing out that
particular building. That is why he is wondering are there parameters, is there
a fair market value, is there something we can say to make sure that if we give
this extension that they are going to work with those with the money with the
fair market value.
Mr. Gruhn stated they have been hired to perform to the best of their abilities
and to do the greatest service to their client, Mr. Rappaport. And in turn to
do the greatest service to the community that they live in and serve as well.
Mr. Gruhn stated he thinks it would be very difficult to place any type of
parameter for a couple of different reasons. There is a private business owner
and developer who has his own Performa and things that he knows he must meet.
But also just because of the ameba like tendencies of the industry that we are
in right now and the economy that we are in right now, you can assign a number
to something, and if the deal isn't structured under the terms that fit the way
that you have assigned that box your not going to fit in it. You might actually
hinder the process rather than help it in the long run.
Councilperson Hart stated there is no one there right now, zero tenants.
Mr. Gruhn stated Councilperson Hart may have heard as far as deals being there
but not getting one, but he cannot, in all good conscious, place the blame
solely on one entity and especially on Mr. Rappaport. He thinks that has had
more to do with economic conditions than anything that has been done in some
type of sabotage. Mr. Rappaport has a huge vested interest in this project
succeeding and has done everything that he can to try and get these deals pushed
over the finished line. Mr. Gruhn stated that he thinks that with the momentum
that we have with the tenants re -upping that are currently in place and with a
little bit more time to see some of these things turn around both economically
as well as some of the things that we have currently working and in the
pipeline. An extension
everyone involved in this
of our labor. Obviously,
getting done not just to
right now where they want
continue to work extremely
Councilperson Hart thanked
everything that was send.
Greenwood now absent at 6:33 p.m.
such as this would definitely be advantageous to
process, and he thinks we will see the fruits of all
as real estate professionals they work for the deal
getting letters of intent so they are at that point
to see this thing completed as well, and they will
hard, and he thinks the extension will help.
Mr. Gruhn for his clarity and his help and accepts
April 20, 2009 Page 10
Documents continued
Councilperson Steve Schmitt asked Mr. Gruhn when he talks about these 20
potential opportunities are those all in the original building or does that
include the new building out in front.
Documents continued
Mr. Gruhn responded he would classify those more in the existing building
because that is a different tenant set that they have been working with since
the onset and construction of the new building. That opens up a whole new pool
for them to fill. The ones that he was speaking of originally had to do with
that back building.
Documents continued
Councilperson Steve Schmitt stated those 50 something jobs that are suppose to
be created with that OCS grant do those necessarily have to be in the original
building or could all 50 of those jobs or 53 or whatever it is could those
theoretically be in that new strip mall.
Ms. Wortham responded yes some of them can be in the new strip mall. That is
correct we are able to count jobs on the site Mr. Rapport owns, the entire site,
including the strip mall and the old center so jobs created there are counted
towards the project total.
Councilperson Steve Schmitt stated so we could theoretically have that new strip
mall up and running and have the building standing vacant behind it.
Ms. Wortham responded theoretically, yes. As long as we show to the federal
government and to the office of community services that we are in good faith
attempting to redevelop that center. They are more concerned about job creation
then hard construction and redevelopment, so if there is 52 jobs in the area
then that is what they want to see.
Councilperson Getty stated he has known Mr. Rappaport and his Logan Avenue
business ventures for probably 20 years, and this document is the first time to
his knowledge in those 20 years that there is a document that Mr. Rappaport put
his name on, signed and was dated for the OCS grant in August 2008.
Councilperson Getty stated he thinks the city should stick with the agreement
that we made with Mr. Rappaport at that time that this building moved on instead
of sitting there for another 12 months, 24 months by the time he gets it built
and asking for the next year and year after. Councilperson Getty stated we are
talking 24 months out, and he feels that his request for delay for one year
should be denied, and that is what he is going to support.
Following comments a vote was taken on the above motion with the following
result. Ayes: Two. Nays: Cole, Getty, Hart, Steve Schmitt. Absent:
Greenwood. Motion failed.
128900 - Reggie Schmitt/Welper
that communication from Assistant City Engineer transmitting Notice of Intent
for NPDES Coverage Under General Permit with the Iowa Department of Natural
Resources in conjunction with F.Y. 2009 Big Rock Road Bridges Replacement with
Box Culverts, Contract No. 739, be received, placed on file and "Resolution
approving said Notice of Intent", be adopted and Mayor authorized to execute
same. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-339.
RESOLUTIONS TO BE ADOPTED
128901 - Reggie Schmitt/Welper
that "Resolution setting
conveyance for $117,000.00
Crystal Marie Kennedy", be
of same. Ayes: Six. Abse
date of hearing as April 27, 2009 on sale and
property generally located at 923 Oneida Street to
adopted and City Clerk instructed to publish notice
nt: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-340.
April 20, 2009
ORDINANCES TO BE ADOPTED
128902 - Cole/Reggie Schmitt
Page 11
that "an Ordinance amending the 2007 Waterloo Code of Ordinances by repealing
Section 5-1B-1, Definitions; Section 5-1B-2, Keeping of Dangerous Animal
Prohibited; and Subsection A, Report Required: Information, of Section 5-1B-3,
Regulations On Keeping, of Chapter 1, Animal Control, of Article B, Dangerous
Animal and Dogs, of Title 5, Police Regulations; and enacting in lieu thereof
new Section 5-1B-1, Definitions; Section 5-1B-2, Keeping of Dangerous Animal
Prohibited; and Subsection A, Report Required: Information, of Section 5-1B-3,
Regulations On Keeping, of Chapter 1, Animal Control, of Article B, Dangerous
Animal and Dogs, of Title 5, Police Regulations (allowing certain constricting
snakes less than six feet and making exception for religious purposes and
museums", be received, placed on file, considered and passed for the first time.
Ayes: Six. Absent: Greenwood. Motion carried.
128903 - Cole/Reggie Schmitt
that rules requiring ordinances to be considered and voted for passage at two
prior meetings be suspended. Ayes: Six. Absent: Greenwood. Motion carried.
128904 - Cole/Reggie Schmitt
that "an Ordinance amending the 2007 Waterloo Code of Ordinances by repealing
Section 5-1B-1, Definitions; Section 5-1B-2, Keeping of Dangerous Animal
Prohibited; and Subsection A, Report Required: Information, of Section 5-1B-3,
Regulations On Keeping, of Chapter 1, Animal Control, of Article B, Dangerous
Animal and Dogs, of Title 5, Police Regulations; and enacting in lieu thereof
new Section 5-1B-1, Definitions; Section 5-1B-2, Keeping' of Dangerous Animal
Prohibited; and Subsection A, Report Required: Information, of Section 5-1B-3,
Regulations On Keeping, of Chapter 1, Animal Control, of Article B, Dangerous
Animal and Dogs, of Title 5, Police Regulations (allowing certain constricting
snakes less than six feet and making exception for religious purposes and
museums", be considered and passed for the second and third times and adopted.
Ayes: Six. Absent: Greenwood.
Ordinance adopted and upon approval by Mayor assigned No. 4939.
NEW BUSINESS
128905 - Welper/Cole
that communication from Superintendent of Streets transmitting request to seek
bids for various asphalt emulsions/bituminous products for the upcoming oiling,
seal coating, chip sealing, fog sealing and crack sealing programs, be received,
placed on file and "Resolution approving said request", be adopted. Ayes: Six.
Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-341.
128906 - Getty/Hart
to instruct City Engineer to prepare plans, specifications, form of contract,
etc. in conjunction with F.Y. 2009 Economic Stimulus Overlay, Contract No. 758,
be received, placed on file and approved. Ayes: Six. Absent: Greenwood.
Motion carried.
128907 - Getty/Hart
that plans, specifications, form of contract, etc. in conjunction with F.Y. 2009
Economic Stimulus Overlay, Contract No. 758, be received and placed on file.
Ayes: Six. Absent: Greenwood. Motion carried.
128908 - Getty/Hart
that "Resolution preliminarily approving plans, specifications, form of
contract, etc. in conjunction with the above described project", be adopted.
Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-342.
April 20, 2009
New Business continued
128909 - Getty/Hart
Page 12
that "Resolution setting date of hearing on plans, specifications, form of
contract, etc. as April 27, 2009 at 5:30 p.m. in the City Hall Council Chambers
on the above described project", be adopted and City Clerk instructed to publish
notice of same. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-343.
128910 - Steve Schmitt/Welper
to instruct Superintendent of Traffic Operations to prepare plans,
specifications, form of contract, etc. in conjunction with Parking Access and
Revenue Management System (PARMS), be received, placed on file and approved.
Ayes: Six. Absent: Greenwood. Motion carried.
New Business continued
128911 - Steve Schmitt/Welper
that plans, specifications, form of contract, etc. in conjunction with Parking
Access and Revenue Management System (PARMS), be received and placed on file.
Ayes: Six. Absent: Greenwood. Motion carried.
128912 - Steve Schmitt/Welper
that "Resolution preliminarily approving plans, specifications, form of
contract, etc. in conjunction with the above described project", be adopted.
Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-344.
128913 - Steve Schmitt/Welper
that "Resolution setting date of hearing on plans, specifications, form of
contract, etc. as May 11, 2009 at 5:30 p.m. in the City Hall Council Chambers
and taking of bids on the above described project", be adopted and City Clerk
instructed to publish notice of same. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2009-345.
ORAL PRESENTATIONS
128914 - Mayor Hurley stated that last week's council session was long and there was a
lot of good thought and discussion around agenda items, so when it was time for
the orals he was not as prepared as he probably should have been as presider.
Some of the comments that were made fall squarely in that context, and he
doesn't think its too strong to call it hate messaging or hate mongering. He
needs to remind folks. We start out with general rules of participation for the
orals and we ask you to keep comments germane, refrain from personal,
impertinent and slanderous remarks and hold comments to three minutes. What
happened last week was just a good example of the kind of things that we don't
want to entertain. The City of Waterloo, the administration, the council and
the vast majority of people celebrate our diversity of all types, and we do that
by ordinance. Last week in the heals of the supreme court's same sex marriage
passage, we had some things spill over. First of all its not something the city
controls. When we invite people to come forward for orals its about city
business and things that we can control. Certainly their personal opinions
based on whatever, this is America and citizens are welcomed to that but we will
not tolerate it. Mayor Hurley stated if that happens again, he is going to ask
that person to stop his comments and either shift gears or sit down. If the
person refuses to do that we will have them escorted from the room. That is the
only fair and proper way of dealing with those kind of things.
Councilperson Hart reported that today East High had diversity in regards to
Mayor Hurley's comments and had a great time. They have excited young people
and throughout the week they are having various activities, so if people want to
stop by East High, it would be a great time.
Cole/Reggie Schmitt
that the above oral comments be received and placed on file. Ayes: Six.
Absent: Greenwood. Motion carried.
• •
• •
April 20, 2009 Page 13
ADJOURNMENT
128915 - Welper/Steve Schmitt
that the Council adjourn at 6:48 p.m. Ayes: Six. Absent: Greenwood. Motion
carried.
rei\..Q„A—
Nancy Eckert, CMC
City Clerk