To: Library Board, City Council, City Manager’s Office

From: Robert Pasicznyuk, Director

Subject: Updated Site Information – FEMA & Terms

Last evening, FEMA provided information relevant to the Council’s decision this
evening (February 24, 2010). Property owners also had the opportunity to adjust
their property’s terms last week. Two made changes – True North and Gazette. I will
include FEMA’s document and property owner term sheets with this
correspondence.

After reading the FEMA document, I had several questions myself. I was afforded
the opportunity to discuss the document’s content with FEMA. They provided helpful
information for me. I will pass that information on to you. A FEMA representative will
be at this evening’s meeting to answer any questions you may wish to pose.

• When considering site costs, FEMA’s position is that they will fund the “least-
cost-alternative.” The Emerald Knights site is the least costly site and
becomes the basis for reimbursement. For land acquisition and preparation,
the reimbursement becomes the sum of $450,000 for demolition and
$3,225,000.00; or $3,675,000.00.

• There appear to be no environmental issues of consequence for all the sites.

• There appear to be no historical issues of consequence for all the sites.

• FEMA will not reimburse any costs related to flood mitigation on a particular
site. They maintain that the mandatory relocation is intended to cure or
handle any flood related issues. If a site is chosen that requires flood
remediation, they will not cover the cost.

2600 Edgewood Road SW, Suite 330 • Cedar Rapids, IA 52404

319-398-5123 • Fax 319-398-0476
www.crlibrary.org
 • On Page 1 of the Eric Wieland correspondence, FEMA’s finding is that the
True North property has “significant flood exposure risk from future 100-year
events.”

• On Page 4 of the same correspondence, FEMA’s finding is that the Emerald

Knights property has the “least amount of risk to property and life from future
flood events.”

• True North is in Flood Zone C. The Gazette Property is located in Flood Zone
X. Emerald Knights is located in Flood Zone X.

Site Cost Update

Gazette:

Site Preparation Estimated Cost $ 800,000.00

Land Purchase from Seller Terms $ 6,750,000.00

Note the seller changed terms on price this past week.

Relocation from Seller Terms $ 250,000.00

Cost Before FEMA Contribution $ 7,800,000.00

FEMA Contribution for site prep and acquisition $

3,675,000.00

Site Cost Gap $ 4,125,000.00

Emerald Knights:

Site Preparation Estimated Cost $ 450,000.00

Land Purchase from Seller Terms $ 3,225,000.00

2600 Edgewood Road SW, Suite 330 • Cedar Rapids, IA 52404

319-398-5123 • Fax 319-398-0476
www.crlibrary.org
 Relocation from Seller Terms $ 0.00

Cost Before FEMA Contribution $ 3,675,000.00

FEMA Contribution for site prep and acquisition $

3,675,000.00

Site Cost Gap $0.00

2600 Edgewood Road SW, Suite 330 • Cedar Rapids, IA 52404

319-398-5123 • Fax 319-398-0476
www.crlibrary.org
True North:

Site Preparation Estimated Cost $ 500,000.00

Land Purchase from Seller Terms $ 4,025,000.00

Relocation from Seller Terms $ 3,475,000.00

*Land acquisition costs for one property owner are still not known.

Estimated Flood Mitigation $ 450,000

Cost Before FEMA Contribution $ 8,450,000.00

FEMA Contribution for site prep and acquisition $

3,675,000.00

Site Cost Gap $ 4,775,000.00

Site Contingencies Update

1. True North removed their contingency which required the City to reimburse
for any site acquisition costs on their end for property over 2 million dollars.

2. True North’s schedule in terms now has them vacate the property by summer
of 2011.

2600 Edgewood Road SW, Suite 330 • Cedar Rapids, IA 52404

319-398-5123 • Fax 319-398-0476
www.crlibrary.org