I.C. project not only city’s call

By Wally Taylor

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The Gazette's June 8 editorial “It's the City Council's call” made a grievous error regarding the contract between the city of Iowa City and Marc Moen for the

$2.5 million tax increment financing deal that will help Moen build a 14-story building on Iowa City's Ped Mall.

The contract says in Part II, Article I, Section 101:

“Subject to authorization by state and federal law, the City agrees to sell not less than $2,700,000 general obligation bonds or urban renewal tax increment revenue bonds or notes (‘Bonds') with a 20-year repayment schedule to fund a construction grant to the Redeveloper and to finance the Project as outlined below provided, however, that the City may, in its sole discretion, fund such grant in whole or in part through any other means available to the City other than the sale of bonds. In no event will the City sell any such bonds until Redeveloper has satisfied the financial commitment obligations stated in Part I, Section 5, paragraph e and Article III, Section 303. The City shall have no obligation to issue bonds if the City has received a petition for an election as allowed under Iowa Code Section 384.24(3)(q) or subsequent enactment by the Iowa state legislature providing for the right of petition.”

It's there in black and white. The city is not “contractually bound to the project,” as you stated. If the city receives a petition for a special election, the city has no obligation to issue bonds.

The editorial also stated that there is “no evidence that the council ignored public input on this issue.” Read the minutes of the April 3 City Council meeting when the Council voted 6-0 to approve this deal. There were no comments because it took everyone in the city by surprise.

But now that residents know what is happening and are petitioning to give their public input, The Gazette argues that it is the council's call. You cannot have it both ways, saying the council considered public input but then saying public input doesn't matter.

Issuing bonds is not strictly a council decision. That is why the law allows residents to call for a special election. Contrary to The Gazette's assertion, public input through comments to the council will be ignored because the council has already decided, and the general election is meaningless because this project will not be an issue in the campaign. Furthermore, it is OK to bog down the process. That is what democracy is all about.

There is no credible evidence that Moen needs the $2.5 million from the city to complete this project. The National Development Council, which purportedly concluded that the TIF was necessary, presented a conclusory report to the City Council that does not explain how it reached this conclusion. The National Development Council is an organization designed to promote development (as its name implies). Of course it is going to justify the need for public funds.

I hope that The Gazette, and especially the residents of Iowa City, will get all the facts. There is no reason the taxpayers of Iowa City should be on the hook for a bailout to a developer who can finance the project himself.

Wally Taylor is a Cedar Rapids attorney with experience in land use issues. Comments:

wtaylor784@aol.com