At large: Matt Hayek

Important progress has been made downtown but more is required.

The bar entry ordinance helped to calm an out-of-hand situation and will encourage a more balanced business landscape. The private sector, city and university are pursuing numerous redevelopment plans. New restaurants, retail, commercial and residential ventures were launched over the last year. Other projects are on the horizon.

We are blessed with almost no empty storefronts and the level of investment interest is higher now than even two years ago.

Likewise, Riverfront Crossings south of Burlington Street is moving forward with engagement from the development community. This project represents a quantum leap forward in terms of expansion of the tax base, new multiuse structures and riverfront amenities - all in proximity to the central business district and the university campus. We think it will produce dense, sustainable, infill development and deliver the most change downtown in a generation.

The proposed SSMID (self-supported municipal improvement district) will, if passed, bring together the disparate businesses downtown and empower them to market and support the central business district. Many cities including Cedar Rapids have seen the benefits of such organization, and I hope Iowa Citians will be supportive.

Redevelopment outside of downtown also is a priority. Towncrest on the east side and Moss Green on the north side are great examples.

Iowa City's past use of tax increment financing (TIF) is conservative especially when compared to neighboring jurisdictions. We have around $25 million of property value in TIF projects, less than

4 percent of the county total. We do not divert tax dollars from one project to fund others, instead terminating each as soon as the debt is repaid. Other communities run their TIF projects for 20-plus years and continue to divert the property taxes well after a project's debt is repaid. The school district and county suffer as a result.

Iowa City will continue to use TIF judiciously, but we need to expand its use to be competitive. Our economic development policy states that Iowa City's projects will be transparent, based on clear guidelines, terminated as soon as possible, and not used to lure business from neighboring jurisdictions.

An Iowa City TIF project worth noting is Plaza Towers in the heart of downtown. The city received certain amenities it wanted (a hotel facility and grocery store), and the development was so successful the debt was repaid 12 years ahead of schedule. The city promptly released the TIF, and Plaza Towers now pays almost $1 million a year in property taxes to the schools, county and city.

Iowa City has many advantages, among them stable employers, a growing population and a vibrant arts-and-culture scene. We are a dynamic community that attracts both students and retirees. We make plenty of “best of”

lists.

Yet Iowa City also faces challenges that cannot be ignored. The biggest is financial. We are no longer immune from national economic trends. Our revenue sources - federal, state and local - are contracting while the cost of operating government only expands. We have lost tax base to the suburbs.

It is imperative that we address this trend. Fortunately, City Hall has begun to retool. The new city manager is pursuing efficiencies and cost-control measures. Our economic development approach has been energized, with numerous projects launched over the last year and more under way.

By streamlining operations and expanding the tax base, we can position the city to thrive during what many believe will be an indefinite economic stagnation. I believe Iowa City is starting to move in the right direction.

Matt Hayek has served on the City Council since 2008 and as mayor since 2010. He is an attorney with Hayek, Brown, Moreland & Smith, LLP, and is married with three young children. Comments: mhayek@hhbmlaw.com