I Can See Clearly Now

League of Women Voters

Proclamation.
Thank you for attending today.
We have many local elected officials
here today including Linn County
leaders and mayors and council
members from various communities.
Thank you for your attendance.
I want to give special thanks to my
City Council colleagues. Each of the
nine members of the Council has a
unique background and list of
experiences. Over the years, I have
had the opportunity to work with
many different government officials at
1

all levels federal, state, county and

local. Our Council members have
proven to be among the finest people
I have worked and served with. Even
when we disagree on the issue at
hand, I know that my colleagues
always have the best interest of Cedar
Rapids at heart. It is indeed my
privilege to work with them.
Councilman Russell and
Councilwoman Weinacht have just
finished their first year on the Council.
It didnt take them long to begin
contributing to the success of our
community.
Councilmen Gulick, Shey and Shields
are the pioneers on the City Council.
We refer to them as pioneers because
they were part of the original Council
2

that was elected after Cedar Rapids

changed its form of government. Ten
years ago the voters approved
changing from the commission form
of government to a council-manager
form of government. These three
pioneers have guided our city through
this transition very well.
This year there are four council seats
up for election. These seats are
currently filled by Councilwoman
Weinacht, Councilwoman Poe, and
Councilman Olson. They have my
complete support and they should
have yours. Their passion and
commitment to Cedar Rapids is
unwavering.
The other Council seat up for election
this year is currently filled by Monica
Vernon. She has chosen to run for
3

higher office the U.S. Congress and

will therefore not be seeking
reelection. Monica has served on the
Council for eight years through some
of the most trying and the most
exciting times our city has faced. This
will be her last official State of the
City event as a City Council member.
I would like to thank her for her years
of service and ask you to do the
same.
The City Council sets the policy.
These policies are put into action by
our very capable City Manager Jeff
Pomeranz and his impressive senior
leadership team. They dont do this
on their own. They effectively lead a
support team of 1300 who carry out
the day to day activities that are
necessary to keep our city moving
forward. Last year I described their
4

efforts as taking care of business,

something they continue to do daily.
Lets thank them.
Each year, as I begin to write this
speech, I try to find a phrase or theme
that defines the current state of our
city. In previous State of the City
speeches, I have found these themes
in music. This year is no exception.
Johnny Nash had a hit song back in
the 70s some of you may not
recognize it. If you are over 50, you
should. It is called, I Can See Clearly
Now. The song starts with I can see
clearly now. The rain is gone. To me,
this represents the transition from a
focus on flood recovery to other
issues and priorities. Flood recovery
has been hovering over our city for
the last six years. We still have some
work to do as we continue to rebuild
5

neighborhoods and demolish a few

remaining structures, but these things
are no longer center stage. The rain
is gone.
The song continues with I can see all
obstacles in my way. We recognize
that, as a community, we have other
obstacles and challenges to deal with.
Today I will highlight five major policy
decisions the City Council has made
to address these obstacles. At the
end of my speech, you will have the
opportunity to express your opinion
about these decisions.
Paving for Progress
The first policy involves our streets,
something, my council members will
agree, we hear more questions and
comments on than any other issue. In
2013 voters overwhelmingly
6

supported a 10-year local option sales

tax to address the poor condition of
our streets. We are calling this
Paving for Progress and it involves
much more than filling potholes. It is
a long-term approach with a focus on
preserving, maintaining and repairing
the hundreds of miles of streets in our
city.
Paving for Progress includes the
rating of every street according to its
condition. Some streets need a
complete overhaul while other streets
may need just a little attention now to
extend their life. This rating system
allows Public Works to prioritize their
efforts and get more out of your tax
dollars.
The local option sales tax that you
entrusted us with will result in $18
7

million in annual revenue for our

streets. The Council, along with Jeff
Pomeranz, wants to ensure these
dollars are spent wisely. As a result,
Jeff brought in an organization that
specializes in best practices and
asked them to audit the Public Works
Department. They provided us with a
report of over 200 recommendations
to improve the process and
procedures that will be used to ensure
our streets are repaired efficiently and
effectively. I want to congratulate Jeff
along with Dave Elgin, our Public
Works Director. It takes courage to
ask a third party to review your
operations because you might not like
the results. Sometimes you are not as
good as you think you are. Asking for
an audit is one thing. Implementing
the suggestions takes additional
8

commitment and they have already

begun that process.

In addition to Paving for Progress, the

Council has adopted a complete
streets policy. This approach
requires that other factors are
considered when a street is repaired
or rebuilt. These factors include the
condition of the sewer and water
lines, sidewalk improvements, the
need to bury power lines, the
installation of bike lanes and trail
connections, improved street LED
lighting, signage and converting oneway streets to two-way. And dont
forget the trees. They provide an
important part of the street
landscape. Have you seen the green
9

Gator Bags at the foot of recently

planted trees throughout the city?
These innovative bags are a steady,
controlled way of watering young
trees that increases their chance of
developing into a tall, shady canopy
over our streets.
This is a long-term effort. The backlog
is severe. It will require your patience
and cooperation as you travel through
construction zones throughout the
city for many summers to come. It
may take up to three years or more
before we feel a sense of progress.
So this is the question. Do you like
this more comprehensive complete
streets approach? You will have an
opportunity to vote a little later.

10

Open for Business

The second topic I would like to
highlight is our decision to create an
open for business climate with a
focus on supporting entrepreneurship,
creativity and growing our own.
Open for business is not just
political rhetoric. It is a
comprehensive approach designed to
create a climate or an environment in
which the private sector can grow
their businesses, create jobs and
invest with confidence. It
acknowledges that government plays
a role in fostering private enterprise
but it shouldnt control or inhibit
private enterprise. Government isnt
an adversary of the private sector.
Instead, government is a partner, a
relationship which yields good results
11

for both the private sector and our

city.
We are reaping the rewards of our
efforts. Our unemployment rate
currently stands at 3.9%. We are
seeing growth in jobs, population,
housing stock, payroll numbers and
property tax base. The increase in
our property tax base has allowed us
to keep our property tax levy at the
same rate for the seventh consecutive
year. Our levy stands at $15.22 per
thousand valuation and gives us a
competitive advantage when
measured against other communities.
On your table is a sheet of paper with
a comparative chart.
Part of our open for business
climate includes the use of tax
increment financing or TIF as it is
12

referred to. TIF often gets attention

because it is controversial. Some
view the use of TIF as a government
giveaway program. This is not the
case as I will demonstrate.
An example of growing our own can
be found in Apache Hose. Fifty years
ago Bob South started Apache Hose
and Belting out of the trunk of his car.
Today it is a thriving employee-owned
company on the southwest side of the
city. Last year, Apache began
investigating options for expansion.
They had two expand in Cedar
Rapids or expand in another state.
After a thorough analysis and
assessment of both locations, the
decision was close. The Council chose
to offer a TIF package that partially
led them to choose to expand here.
They are breaking ground on a new
13

multi-million dollar construction

project that will add 15 new jobs to
Cedar Rapids. Without TIF, this may
not have happened.
As I said earlier, TIF is not a
government giveaway program. It is
a way for cities to provide a tax
discount for a limited period of time
and is used to incentivize companies
to expand or relocate to the city. The
discount isnt forever. At the end of
the discount period, the company
returns to paying the full tax value.
Do you remember the old YMCA
building on First Avenue? It was
demolished to make room for the new
Cedar Rapids Bank and Trust building.
That project received a TIF which will
expire in 2017. Going forward, the
building will be paying 100% tax
14

value. Ultimately the city comes out

ahead because future tax revenues on
that property in its improved condition
far outweigh the discount provided by
TIF.
Another example is the HyVee on First
Avenue. Years ago the City Council
struggled over the decision to award a
Tax Incentive to HyVee. The Council
had never offered an incentive to a
retail operation before. On the other
hand, the HyVee was an essential part
of the Wellington Heights and Mound
View Neighborhoods. In the end the
Council chose to award the incentive.
It has now expired. HyVee is paying
the full tax value and the
neighborhood has a much needed
place to buy their groceries. On your
table is another handout which
contains some examples of the use of
15

TIF and how it has benefitted Cedar

Rapids.
TIF is just a piece of the open for
business climate. Open for
business also influences how the city
addresses right-of-way issues, zoning
issues and permitting. Jeff Pomeranz
has transformed these processes so
that every city employee is working
together to provide the climate that
truly is open for business. This
ultimately yields a considerable return
on investment for the city.
So I ask you: Should we continue our
aggressive approach to be open for
business?
Retail Development
16

The third policy I want to highlight is

retail development. The city has
historically shied away from recruiting
retail to Cedar Rapids. Perhaps this
was because retail jobs are generally
classified as low wage jobs. Maybe it
was because success in retail is tied
so closely to the condition of the
economy. Whatever the reasons, the
Council has decided that recruiting
retailers should be an important piece
of our economic development policy.
Here is why.
First, we look at this as a quality of life
issue. We often hear people say,
When are we going to get a Trader
Joes? or a Cosco or a you fill in the
blank. The people of our city work
hard to earn a living. They like to
reap the rewards of that work by
buying things at a variety of stores.
17

Secondly, an increase in retail activity

adds to the local option sales tax
revenue. Over the next ten years, we
will use this for our Paving for
Progress initiative. More retail sales
will result in more money to fix our
streets. Finally, the State of Iowa has
agreed to share a portion of sales tax
growth to help us build flood
protection. Traditionally the state has
kept all sales tax revenue, but we
were instrumental in passing
legislation to get this changed. More
retail sales will mean more money for
flood protection.
The recruitment of new retail
enterprises is similar to traditional
economic development in that it can
take years to put a deal together. Jeff
Pomeranz and Scott Olson have been
attending the International Shopping
18

Center Convention for many years.

Three years ago Scott began working
to recruit Fresh Market to Cedar
Rapids. Their store opened last fall on
the former site of the East K-Mart.
Other retail endeavors include the
Westdale Mall and the Nash Finch
redevelopment projects and The
Fountains project on Edgewood Road.
Should we continue to focus a portion
of our economic development
strategy on retail? You will have an
opportunity to answer this question
shortly.
Infill Development
The fourth policy area I want to
discuss is infill development.
Traditionally cities expand
19

geographically with development on

the perimeter of the city boundaries.
This is called urban sprawl. Since the
flood, we have chosen a different
direction. We have focused on
developing from the inside out. This
does not mean that we have
abandoned all opportunities for the
city to grow geographically. Our longstanding support of the Highway 100
project testifies to that. We expect
the Highway 100 project to lead to
more development on the west side of
town.
Infill development is a good strategy
because it saves the city money. The
water lines, sewer lines, streets and
other infrastructure are already in
place for infill projects. New
developments add more infrastructure
20

which requires maintenance, an

additional expense to the city budget.
While our infill development efforts
initially focused on flood inundated
areas, it is no longer limited to those
areas. There are other parts of the
city that are receiving some much
needed investment from developers.
For example, the Nash Finch property
on Blairsferry Road is being
redeveloped by Hunter Parks. An old
industrial site with declining tax value
and an eyesore on the city landscape
will become a place of new retail
opportunities, additional jobs and
more tax revenue for the city.
The city has lots of opportunities for
further infill projects due, in part, to
flood buyouts. We are anxious to get
these properties back on the tax rolls
21

but we wont do it all at once. You

wont see all the available properties
in Kingston Village or Newbo or other
parts of the city sold and developed
simultaneously. That would result in a
glut in the market. Instead, you will
see a gradual return of these
properties to the private sector.
What is your opinion on this strategy?
Should we continue to focus on infill
development with some geographical
growth?
City Beautification
The last major policy issue I want to
talk about today is city beautification.
Any good realtor will tell you how
important curb appeal is when it is
time to sell your house. If a potential
buyer drives up to your house and
doesnt like how it looks on the
22

outside, they may choose to drive on

by, never even stepping inside the
door. It is the same with our city. It is
important for us to have good curb
appeal.
What does this mean from a city
standpoint? First, it means taking
care of what you have. The Welcome
to Cedar Rapids sign on the south
entrance to the city is a good example
of this. The sign was in bad disrepair.
Part of it was on the ground and
leaning against one of the posts. That
didnt do much for our curb appeal.
The sign was replaced and is now
much more welcoming. A similar sign
will be added to the northern entrance
to the city this year.
The airport is our front porch for over
a million people who fly in and out of
23

the airport every year. It is in the

midst of a $40 million improvement
project. Have you seen the new
wooden awning and stone faade as
you drive up to the curb in front of the
terminal? They are a beautiful
reflection of our local natural
resources and provide some
wonderful curb appeal for our city.
Other improvements include some
landscaping along 380. This was
accomplished with the help of Eye on
380, a non-profit group that, like the
Council, is concerned about how our
city looks. The Tree of Five Seasons
Park received a facelift and looks
great. The city manager has helped
the effort along with his One Bag
Challenge. Through this program,
the city provides specially colored
bags and free curbside pick up to
24

encourage all of us to get involved by

picking up litter. Future
improvements include more median
landscaping, more public art and new
street lights in the downtown area.
Green Square Park will get a major
facelift.
City beautification includes the
business community as well. We are
asking developers to consider the
appearance of a development as they
make their plans. Building design,
facades and placement, elevations
and landscaping should create a look
that is aesthetically pleasing.
Our efforts to beautify our city also
include the adoption of the nuisance
abatement policy called Safe CR. This
policy was designed to address some
of the rundown properties that were
25

owned by a handful of negligent

landlords. The development of this
policy was not easy. It included
months of comprehensive study and
the solicitation of public input. We
were concerned about being heavyhanded in our approach and yet
wanted to address the negative
effects that neighbors next to
rundown properties were
experiencing. Their property values
were lower simply because the
property next door was in disrepair
and neglected and they were
powerless to do anything about it.
Properties are not casually labeled
nuisance properties. There is a series
of steps that must be carefully
pursued before this designation is
made. Take, for example, the multiunit residence at 110 16th Street NE,
26

just across from the First Avenue

HyVee. The property was identified as
a nuisance property due to excessive
police calls. In addition, we had
received numerous complaints of over
occupancy, pest infestations, and a
lack of overall property maintenance.
After unsuccessful attempts to work
with the owner to address the issues,
the property was formally declared a
nuisance. The property was sold to a
new owner who has made a
substantial investment in the property
and transformed it into a property
that its residents are glad to call
home.
Not everyone agrees on this policy. It
has even resulted in the filing of a
couple of lawsuits against the city. On
the other hand, neighbors near the
rundown properties are glad for the
27

policy. It has increased their property

value and improved the enjoyment
factor of their homes. Neighborhood
associations are grateful for the help
it provides them in beautifying their
neighborhoods.
So what do you think? Should we
continue our efforts to beautify our
city? You can express your opinion at
the end of my speech.
These are not the only policy issues
the Council has addressed. They are,
I believe, the most significant in terms
of their impact on moving our city
toward a prosperous future. The
Council sets the policy and the city
operations team puts those policies
into practice. The Council and the
operations team are in alignment. I
believe the residents of Cedar Rapids
28

are in alignment with us and heres

why.
One of my mentors at CRST has been
Dave Rusch. He introduced me to a
word that, in a way, measures
community alignment. The word is
pissivity. No, I did not misspeak. I
said pissivity. Now you wont find this
word in Websters, but you can find it
in the Urban Dictionary. They define
Pissivity as the level
of anger in a person, basically how
pissed off a person is. I like to
conduct my own unofficial polls.
When I first ran for mayor, I would ask
people how they felt about Cedar
Rapids. I generally found that, out of
ten people, seven people had a high
pissivity level, two were neutral and
one was happy. Now, when I ask, the
numbers are quite different. I find
29

that seven people are happy, two are

still neutral and one has a high
pissivity level. I guess you will always
have at least one person who is hard
to please. Johnny Nash sang, All of
the bad feelings have disappeared.
Well, maybe not all of the bad feelings
have disappeared, but most have. In
any case, citizens seem to
be in alignment with the Council.
Major policy decisions are only part of
the job of being mayor and serving on
the City Council. Sometimes we have
to make decisions on a hot button
issue, an issue that elicits strong
emotional reactions from people. A
few people have asked me what
guides us when considering these
kinds of decisions. Let me explain
with a story.
30

My second oldest son is currently

serving in the U.S. Navy. He was in a
holding period for about nine months,
awaiting his departure date for basic
training. He wanted to make a little
money while he waited so he found a
part-time job. His employer told him
he would be working 20 hours a week.
The schedule came out his first week
and he only had eight hours. I asked
him why he didnt get the 20 hours
they had indicated. He wasnt sure so
I advised him to ask the manager. As
children often do, he chose to ignore
my advice. He said he would wait to
see what happened the next week.
The next weeks schedule came out
and he was scheduled for eight hours.
I reminded him of the financial impact
of this on his wallet and again
suggested he discuss the matter with
31

the manager. Once more he foolishly

ignored my advice. The third week
was the same story only eight hours.
He finally talked to the manager
about it and reported back. The
manager had given more hours to
other people because they had asked
for them. In the fourth week, he was
scheduled for 20 hours. The lesson in
this story is that you have to stand up
for yourself.
Cedar Rapids is no different than my
son. He needed to stand up for
himself and sometimes we have to do
the same for our city. For example,
we actively pursued flood recovery
money. We are still working for the
remainder of our flood protection
funding. No other entity will intercede
on our behalf. We have to do it
ourselves.
32

Traffic Cameras
This is why we are standing up to the
Department of Transportation on the
issue of the traffic enforcement
cameras. The cameras were installed
at the recommendation of the Police
Department. They view the cameras
as a way to protect the safety of
police officers and the general public.
There have been fewer accidents and
no deaths on that portion of 380 since
they were installed. This is a local
control issue. Should some
bureaucratic rule trump the safety of
police officers and the driving public?
I am willing to keep standing up for
Cedar Rapids.
So the question is: Should we
continue our efforts to keep the traffic
cameras?
33

Gaming License
Two years ago, the voters expressed a
very strong opinion that Cedar Rapids
should pursue a gaming license. They
said yes for a host of reasons: new
construction jobs, an increase in
permanent jobs, an expanded tax
base, additional donations for
nonprofit organizations, construction
of a portion of flood protection for the
west side, more entertainment
choices and to keep gaming money
local. Later, the regulatory
commission voted 4 1 against it,
expressing concern that a Cedar
Rapids casino would cannibalize
surrounding casinos. They claimed
that these casinos rely on Cedar
Rapidians like you to travel to their
towns and spend money at their
facilities. Without this income, those
34

casinos might suffer. My question is

this, If Cedar Rapids represents 10 or
15 or 20% of their market, why
havent they developed a mechanism
whereby Cedar Rapids receives some
of the benefit of their profit? Why
dont they donate an equivalent
percentage of their nonprofit
contributions to nonprofits in Cedar
Rapids? Instead, Cedar Rapids is
completely boxed out of any benefit
of gaming no license and no percent
of the revenue. They are happy to
take our money but they dont want
any part of sharing.
The situation is no better at the state
level. The state distributes $11
million from gaming revenue to the 84
non-gaming counties. This results in
$130,000 for Linn County, about 67
cents per person. How many times
35

can you play the penny slot machines

with that? By comparison,
Pottawatamie County, a gaming
county, receives $15 million each
year. Lyon County, also a gaming
county, in northwest Iowa receives
$1.3 million. Now my pissivity level is
going up!
So here is the question: Should we
continue the efforts to obtain a
gaming license for Cedar Rapids?
Thankfully not all of the issues we
face as a city are highly divisive. But
even when they are, the Council
maintains civility in our discussion
and debate with a goal of being fair to
all points of view. I learned the
importance of fairness from my dad,
who is here with us today. Like me,
he has served as mayor. Many years
36

ago he was elected mayor of a small

town in Pennsylvania called Fairview.
He defeated a long-time mayor whose
family was very well connected. How
did this happen? My dad enjoyed
working with other people in the
community. For example, he served
four years as a Pennsylvania State
Police Auxiliary and was President of
the Little League. He was Vice
President of the Lions Club. He had a
reputation in the community for being
fair in all of his dealings and people
respected him for that. Later, he
moved to Iowa and worked at Amana
Refrigeration. He has been retired
from Amana for several years but I
still run into people who tell me my
dad was good to work with because
he was always fair. Like my dad, the
Council desires to be fair. When you
37

are fair with people, it leads to less

pissivity and more alignment in your
town.
In 2014 Cedar Rapids received a very
prestigious award. Every year the
National Civic League selects 10 cities
to receive special recognition by
naming them All America Cities.
Cedar Rapids was one of those
chosen. This is remarkable
considering that just six years earlier
we were a flood-ravaged city.
This award signifies an official stamp
of approval on the progress we have
made.
We should celebrate this progress and
that brings me to this years
challenge to you.
Cedar Rapids is the City of Five
Seasons. That fifth season is the time
38

to enjoy the other four seasons. Are

you taking the time to enjoy?
On your tables today are bowls
containing five different flavors of lip
balm, each one representing one of
the five seasons. Weve chosen the
flavor entertainmint to symbolize
that fifth season. The rain has
stopped and has resulted in a whole
host of ways to enjoy life in Cedar
Rapids. Have you enjoyed a concert
at the McGrath Amphitheater? Have
you attended an event at the
beautifully restored Paramount or
Theatre Cedar Rapids? Have you
shared a good meal or sipped a nice
glass of wine with friends at any of
the many restaurants throughout the
city? Have you watched the sunset
over Cedar Lake as you walked the
trail? Lets take the time to enjoy all
39

our city has to offer because I agree

with Johnny Nash: Its gonna be a
bright, bright sunshiny day.

40