About Iowa City

SUNDAY, FEBRUARY 1, 2015

Iowa City – A Special Place

Offering big-city amenities along with small-town hospitality, Iowa City has it all. Nestled in the heart of the Midwest in east central Iowa in Johnson County, it has long served as a locus for culture, education, variety and fun. A stroll through the downtown pedestrian plaza proves it. Here you will find a real sense of community and friendly commerce. Downtown you might come across college students in a game of chess on the plaza’s life-size game board. On-lookers sit on the plaza’s limestone benches talking politics, philosophy, or Big Ten sports while children climb a nearby jungle gym. A block away, others might be taking a class at the senior center, lounging in outdoor cafés, savoring the fine cuisine the city has to offer. Across the way, you’ll likely hear a local band playing a catchy mix of jazz and blues on the area’s outdoor mini stage. The state’s historic Old Capitol Building looms to the west. A cherished landmark of the University of Iowa campus, it embodies the city’s prominence, grace, and heritage. Whether a first-time visitor or a native returning home, you will discover this place is one where tradition comfortably exists alongside change.

Events & Activities

From music and art festivals to Broadway performances, Iowa City has an event to suit anyone’s taste. During the summer months, live music becomes a part of downtown’s irresistible ambiance. Each July, the city hosts a jazz festival that attracts music enthusiasts from both near and far. The annual Iowa Arts Festival features the state’s best visual art, music, and food. Iowa City is also home to several community theaters, including Riverside Theatre’s Shakespearean stage. Located in City Park, this open-air theater presents shows under the stars.

Iowa City is also home to the recently restored historic Englert Theatre downtown and also has a vibrant Iowa City Community Theatre.

If Broadway productions are more your style, the University of Iowa’s Hancher Auditorium showcases the best in entertainment. Over the years, Hancher has been host to productions such as Rent, Cats, Les Misérables, and Stomp. The Hancher stage is frequented by the likes of Yo Yo Ma, Jerry Seinfeld, and Wynton Marsalis.

Event Calendar:http://www.culturalcorridor.org

Home to the University of Iowa

Founded in 1847, today’s University of Iowa is recognized as one of the nation’s top public universities, offering more than 100 areas of study for its 29,000 students. The institution’s Writers’ Workshop is internationally acclaimed, having fostered the creative talents of Ray Bradbury, Flannery O’Connor, Jane Smiley, and Kurt Vonnegut. The University also includes one of the largest university-owned teaching hospitals in the nation. Providing patient care within 16 medical specialties, the University of Iowa Hospitals and Clinics have been named one of “America’s Best Hospitals” by U.S. News & World Report magazine. Iowa City is also home to Mercy Hospital, a pre-eminent provider of healthcare to the region.

In addition to academics, UI students are able to choose from a wide variety of activities. From intramural sports teams to drama clubs, the University of Iowa has more than 350 student organizations. And, the University’s athletic calendar is always full of the home games, meets, and matches of its 22 Big Ten teams.

Scenic Attractions

Iowa City is proof that the state’s geography isn’t merely a flat and vast plain, but rather a place of rolling hills, lush and scattered woodlands, and tall grasses. In the Iowa City area alone, there are 41 public parks, several of which overlook the scenic Iowa River. Many of these parks are equipped with networks of walking and biking trails, and quaint picnic sites and prairie reserves.

The Coralville Reservoir, just 3½ miles north of Iowa City, offers a multitude of recreational activities. In addition to 5,000 acres of water for pleasure boating, fishing, swimming, and water-skiing, the area is laced with attractive hiking, biking, and cross-country skiing trails. Catch a glimpse of the state’s geologic past at a nearby Devonian Fossil Gorge. Unearthed during the flood of 1993, the gorge contains a variety of fossils more than 350 million years old.

Shopping and Dining Out

Iowa City is full of unique shops – from the Old Capitol Town Center, Pepperwood Plaza, and the Sycamore Mall, the area provides a variety of shopping opportunities. Downtown is unequalled when it comes to offering specialty goods; there you’ll find clothing and jewelry, gifts and toys, books and espresso. The Coral Ridge Mall, located in the nearby city of Coralville, provides other possibilities for the serious shopper.

When shopping, you’re sure to work up an appetite. What better place to dine out than Iowa City? Scattered throughout Iowa City, there are numerous cafés and restaurants that offer a variety of foods, from international dishes to home-style meals. Depending on the weather, you might decide to dine outside at one of downtown’s outdoor cafés.

For more info: http://www.downtowniowacity.com & http://www.iowacitycoralville.org

Iowa City: The Center of It All

Culture and history abound in and around Iowa City. The Amana Colonies are just a 20-minute drive west of the city. The seven colonies offer the best in German home-style food and traditional crafts. The small town of Kalona lies southwest of Iowa City, offering visitors a glimpse into the culture of the Amish population that calls the area home. West Branch is located east of Iowa City and is the birthplace of Herbert Hoover, America’s 31st president. Visitors can learn more about the life and times of the president with a stop at the Herbert Hoover Presidential Library-Museum. Cedar Rapids, located 30 miles north of Iowa City along Interstate 380, proudly recognizes its heritage through the charm of its Czech Village and other cultural attractions.

Strong & Diverse Economy

Iowa City’s economy is as diverse as it is prosperous. The economy is based upon thriving commerce, a major university, and a number of national and international businesses, including several Fortune 500 companies. Iowa City is home to the corporate headquarters for ACT, Moore North America, Pearson, Lear, Oral B Laboratories/Gillette, Procter & Gamble, and scores of smaller industries and businesses.

The University of Iowa is the city’s largest employer, with 23,608 employees. The academic and research mission of the University, along with the health care services provided at its hospitals and clinics, have a tremendous economic impact on the area.

While established firms continue to prosper in Iowa City, opportunities abound for new businesses. The city has land for additional industrial/commercial development. These sites are well suited for offices, manufacturing, warehousing, and/or research facilities.

The City of Iowa City also has a variety of programs to assist with business development. Contact Wendy Ford, Economic Development Coordinator at (319) 356-5248.

Workforce & Training

Without question, Iowa City’s greatest asset is its people: well-educated and highly productive workers who demonstrate low absenteeism and turnover rates. The city’s university student population augments the labor force and provides a large pool of part-time workers for area businesses. In addition, the University continuously injects qualified professional and technical expertise into the labor market.

The Iowa City Kirkwood Community College campus has an enrollment of approximately 3,239 students and offers a full Arts and Sciences curriculum. The main campus of Kirkwood Community College is located approximately 20 miles away in Cedar Rapids. It offers distance learning for those who can’t make it to campus, continuing education classes for those who wish to take classes in their area of interest without obtaining course credit, plus customized training programs for area businesses. The National Alliance of Business named Kirkwood its Community College of the Year in 2000 for Kirkwood’s partnerships in developing training programs with the area business community.

Education System

In addition to the University of Iowa and Kirkwood Community College, the Iowa City area provides a variety of excellent K-12 educational opportunities. The award-winning Iowa City Community School District has an enrollment of about 11,000 students from kindergarten through 12th grade. The district includes the nearby communities of Coralville, Hills, and North Liberty. In all, the district has 18 elementary schools, three junior high schools, two senior high schools, one alternative school for seventh through twelfth graders, as well as daycare and pre-school facilities. Iowa City is also home to Regina Catholic Education Center, a private Catholic institution, Willowind School, a private K-8 school, and Preucil School of Music, specializing in the Suzuki method of instruction.

Traveling Time in Hours and Minutes from Iowa City(click for map)

Chicago	3:41
Des Moines	2:01
Kansas City	5:15
Milwaukee	4:36
Minneapolis	4:26
Omaha	4:20
St. Louis	5:26

Fun Facts

• “Iowa” is a Native-American term for “beautiful land”
• Iowa City is the sixth largest city in the state with a population of 67,862
• Iowa City was the state’s first seat of government and served as Iowa’s capital from 1842 to 1857
• When the state legislature moved Iowa’s capital to Des Moines, the University of Iowa was founded in Iowa City to compensate for the loss

Iowa City by the Numbers

Population	67,862
Median Age	24.8 years
Bachelor’s Degree or Higher	55.9%
Average Persons Per Household	2.34
Average High Temperature	59°F
Average Low Temperature	39°F
Average Annual Rainfall	32″
Elevation (range)	630′ – 760′

Iowa City: Best Of…

•  2nd Best Small Metro Area for Business/Careers, Forbes, 2008
• #5 on the Top Ten Cities for Book Lovers list from Livability.com, 2011
• #8 Up and Coming Tech Cities, Forbes, 2008
• #8 on Best Performing Small Cities Index, Milken Institute, 2011
• #10 on Best Cities for College Grads list, Richard Florida, 2010
• 10th Smartest City in the Nation, Forbes, 2008
• #13 on the Best Cities for Business and Careers (small cities) list, Forbes, 2011
• Healthiest Town in the United States, Men’s Journal, 2010
• One of the Top Towns for Jobs, MSN CareerBuilder, 2010
• Johnson County is among the top 25 counties in CNN/ Money Magazine’s Where
  the Jobs Are list, with over 22% growth in the past decade, 2010
• City High and West High School named to Best High Schools, Newsweek, 2012

Iowa City Contacts

City of Iowa City
319-356-5000

Iowa City Downtown Association
319-354-0863

Iowa City Area Chamber of Commerce
319-337-9637

Iowa City Area Development Group
319-354-3939

Iowa City Community School District
319-688-1000

Iowa City/Coralville Convention & Visitors Bureau
319-337-6592 or 1-800-283-6592

Reprinted from Iowa City website ICGov.org.

The Realtor Party

SATURDAY, FEBRUARY 7, 2015

The REALTOR® Party is a powerful alliance of REALTORS® and REALTOR® Associations working to protect and promote homeownership and property investment. The REALTOR® Party speaks with one voice to advance candidates and public policies that build strong communities and promote a vibrant business environment.

Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice about the stability a sound and dynamic real estate market brings to our communities. From city hall to the state house to the U.S. Capitol, our elected officials are making decisions that have a huge impact on the bottom line of REALTORS® and their customers. Through the support of REALTORS®, the REALTOR® Party represents your interests.

What does this mean in the Iowa City – Coralville area for companies like Lepic-Kroeger, Realtors?  The concept of the REALTOR® Party supported by our PAC donations helps protect home ownership and private investment for our clients.  If our clients are happy and productive, we are happy and productive. We support the deduction of interest spent on home ownership on our clients federal and state income taxes.  We support the buyers’ right to choose the proper and appropriate home inspections to be performed prior to purchase and we support the free transfer of our homes without them being taxed like a Tee shirt that says “I am the Ayatollah of Rock ‘n Rolla” on it!  We support programs that assist first time home buyers with achieving the American Dream of home ownership.

Home ownership is core to the American way of life.  We make sure that REALTORS® and their home buying clients have a voice in affairs that effect these issues.

Matt Hektoen, esq informed Commercial Round Table about new 1031 exchange law

WEDNESDAY, FEBRUARY 18, 2015

New Closing Rules and HUD-1 / RESPA Forms to Take Effect August 1

THURSDAY, FEBRUARY 19, 2015

2015 Interest Rate Projections: Here’s How Rates Will Affect Your Money Next Year

FRIDAY, DECEMBER 26, 2014

It’s interest rate projection season here at GOBankingRates. While consumers are busy preparing for the holidays and end-of-year celebrations, we’ve been hard at work analyzing interest rate trends from 2014 and making predictions for what 2015 will bring. Let’s take a look at what rates have been doing over the last year, where they are expected to land in 2015 and what it all means for consumers.

Interest Rates 101

Before we get started, let’s have a quick lesson on what actually causes interest rates to go down or up: what the Fed does, what inflation is, how rate cuts and increases affect inflation, and the difference between target and prime rates.

The Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or just the Fed) is the central banking system of the United States. The current Chair of the Federal Reserve is Janet Yellen, who was appointed by President Barack Obama in February 2014.
The Fed’s three key objectives for monetary policy in the United States are:
• Maximum employment
• Stable prices
• Moderate long-term interest rates.
One way it attempts to achieve this is by controlling the federal funds rate — the rate that banks charge each other for overnight loans, which impacts interest rates.

Inflation

On its most basic level, inflation is the rate at which the prices of goods and services rise. As inflation rises, purchase power falls — every dollar buys a smaller percentage of that good or service. The Fed tries to sustain a rate of inflation of 2 to 3 percent to keep the growth of prices at a minimum.
There is no universal agreed-upon cause of inflation, but there are two widely accepted theories: demand-pull and cost-push. Demand-pull is essentially “too much money chasing too few goods” and cost-push is basically “too many people chasing a single good or service.” The oil crisis of the 1970s is a good example of cost-push inflation — the cost of gas dramatically increased and consumers had no suitable alternative.
Both theories actually describe overall aspects of inflations: demand-pull explains how it starts and cost-push describes why it’s so difficult to control once it starts.
Related: 10 Best Bank Accounts to Beat Inflation

Interest Rate Cuts

When the federal funds target rate is reduced, interest rates get cut. The Fed rate is important because many other rates follow this rate closely. Fed rate changes help the economy strike a balance between low inflation and sustainable economic growth; when rates are low, there is more money available for lending, which trickles down to consumers and stimulates economic growth.
Low rates are great for consumers in the market for a new house or car — they encourage borrowing. If rates are too low, they can cause excessive growth, which can lead to inflation. Inflation erodes purchasing power and can lead to unsustainable economic expansion.
Low rates also aren’t good for savers; consumers yield next to nothing on short-term CDs, money market accounts, and checking and savings accounts.

Interest Rate Increases

The Fed raises the federal funds target rate to slow inflation and return economic growth to sustainable rates. Rate increases impact consumers’ wallets, depending on how dramatic the increase is. Higher rates mean it’s more expensive to finance goods, like homes or cars, or pay off debt.
Rate increases can also have a negative impact on people who live off a fixed income: Increased inflation affects their standard of living, since they don’t have the ability to increase their income. If rates get too high, financing is too expensive, which slows the economy and can even lead to contraction — a decline in growth for two or more consecutive quarters.
Interest rate increases aren’t necessarily always terrible news for consumers — they are meant to stabilize growth, avoid hyperinflation and can also be a sign the economy is improving. Rate increases are also favorable for consumers with liquid assets — short-term CD, money market, checking and savings accounts will yield higher returns.

Target Rate vs. Prime Rate

The Fed’s target rate is for bank-to-bank lending. The prime rate is the base rate banks charge consumers. The most credit-worthy consumers can get prime rate financing, the lowest possible rate available; but the more credit risk a consumer poses, the higher his rate will be over the prime rate. That’s what lenders call “prime plus premium” — your premium is affected by your credit score, assets, income and more.

Current Interest Rates: A Brief History

In 2007 to 2008, the Federal Reserve took extreme actions in response to the financial crisis in order to stabilize the U.S. economy: Short-term interest rates were reduced to near zero to help households and businesses finance new spending and stabilize prices. Since then, interest rates have stayed low and the economy has showed slow signs of improvement.

Early 2014

The majority of economists didn’t expect a rate increase in 2014, and they were right. Early 2014 saw the same low rates we have today, but there was a surge in the housing market and new car sales.
From a historical standpoint, car loans were at bargain-basement prices and terms were incredibly competitive between both big banks and credit unions. International Business Times reported that 2014 new car sales were on pace to hit their highest rate since 2007, immediately before the Great Recession.
Home buyers continued to take advantage of still-affordable home prices and the historically low mortgage rates they saw at the end of 2013. At the turn of the year, home prices were 31.5 percent below their 2006 peak and the percentage of monthly family income spent on mortgage payments was just 15.6 percent, down from 23.5 percent in mid-2006, according to data from Clear Capital.

Mid-2014

In the summer of 2014, Fed officials predicted the target interest rate would be 1.13% at the end of 2015 and 2.5% a year later, which was higher than previously expected. In March, they estimated the rate would rise to 1% by the end of next year and 2.25% at the end of 2016. Yellen downplayed the significance of the rate forecasts, saying, “I think every participant who’s filling out that questionnaire has a considerable band of uncertainty around their own individual forecast.”

Late 2014

The end of 2014 saw some surprising U.S. economic data: The Labor Department’s October jobs reports showed unemployment was down to 5.8 percent (its lowest level since 2008) and the economy added 214,000 jobs. At the same time, average U.S. gas prices fell below $3 a gallon for the first time since 2010, according to AAA, and the U.S. dollar touched a four-year high of 88.19, reports Reuters.
Still, retail sales growth was slow and new housing construction fell in October. The Fed lowered growth expectations for the remainder of 2014 and kept the short-term interest rate near zero. New York Federal Reserve President William Dudley said in an October speech, “It is still premature to begin to raise rates. The labor market still has too much slack and the inflation rate is too low… The consensus is that lift-off will take place around the middle of next year. That seems like a reasonable view to me.”

2015 Interest Rate Predictions

Late in 2014, the Fed indicated that mid-2015 will see a rate increase, but there is no definitive word on how much or exactly when. When asked, Yellen only said the Fed expects rates to stay low for a “considerable time,” but declined to say just how long. She has repeatedly stated it all depends on how the economy performs. Interest rate forecasts are based on some of the most difficult economic variables to predict, but that hasn’t stopped experts from trying: Most private economists agree that the Fed will raise rates mid-2015, but investors are betting on rates staying at record lows for longer, according to Bloomberg.
But at a June press conference, Yellen warned investors not to become overly confident in the current monetary policy. It is important “for market participants to recognize that there is uncertainty about what the path of interest rates, short-term rates, will be, and that’s necessary because there’s uncertainty about what the path of the economy will be,” she said. “Economic activity is rebounding in the current quarter and will continue to expand at a moderate pace thereafter.”
What does this all mean? The Fed has confirmed a rate hike will happen, Janet Yellen has warned investors not to get too comfortable and the economy is actively rebounding, but the timing is still unclear and experts continue to debate the issue. Whether we see a rate hike in the first quarter or third, here is what consumers can expect sometime in 2015:

Mortgage Rates

The housing market of 2014 was better than it had been in years, with a low number of homes entering foreclosure, favorable mortgage rates and more affordable housing options available to consumers. The impact of a mortgage rate hike really depends on the kind of financing the consumer has, whether the mortgage has a fixed or adjustable rate, and what the loan is tied to.
30-year fixed-rate mortgages are typically tied to the yield on 10-year treasury bonds, and rates on adjustable rate mortgages (ARMs) are tied to the federal funds rate. The average 30-year fixed mortgage rate fluctuated between 4% and 4.5% for most of the year, and Freddie Mac is predicting rates will rise to 5% in late 2015.
Here is an estimate of how a rate hike might impact a monthly payment on a 30-year, $200,000 mortgage:

• Current rate: 4.22% = $980 per month
• 2015 rate: 4.40% = $1,002 per month
• 2020 rate: 6% = $1,199 per month

In 2015, median home prices, mortgage rates and number of homes for sale are expected to see a moderate increase. Remember: Increased rates aren’t always bad for consumers. They are meant to stabilize growth to a sustainable pace. Higher mortgage rates, stabilized pricing and an increase in inventory will hopefully help solve the supply and demand issues that plagued 2014.

Credit Card Rates

Consumers with fixed-rate credit cards won’t see a change in their payments, but those with variable rate cards will. Most credit cards are linked to the prime rate and a federal funds rate increase will lead to higher interest payments. The average consumer household with credit card debt carries a whopping $16,000 balance, according to NerdWallet, and they should expect a change in the payment and terms.
Here is how a rate hike will affect the monthly payments on $16,000 of credit card debt if the borrower attempts to repay the loan within five years:

• Current rate: 13.02% = $364 a month
• 2015 rate: 13.75% = $370 a month
• 2020 rate: 15.75% = $387 a month

Even if a consumer has a fixed-rate card, the credit card company can increase the rate at any time, as long as it provides the consumer with advance notice. Consumers with credit card debt should prepare for a rate increase by either paying off the debt before mid-2015, transferring the debt to a less expensive alternative or trying to negotiate better terms with their credit issuers.

Auto Loan Rates

Auto loan rates have been historically low in recent years, leading to an influx of new car purchases in 2014. The National Automobile Dealers Association expects the auto loan rate hike in 2015 to be minimal, with consumers continuing to benefit from favorable lending terms. The rate gaps between new and used cars will narrow, but consumers will still see a large disparity between new and used car loans with four-year repayment terms.
In 2015, auto loan rates will stay low and demand will remain high, which means competition between lenders will be fierce. A recent survey from WalletHub found that credit unions provide 40 percent lower interest rates for new car loans and 44 percent lower rates for used car loans than traditional banks. Car buyers will see better pricing and longer terms from big banks, as they start to vie for a bigger piece of the auto loan pie.

Savings, Money Market and CD Rates

Let’s just call these 2014 rates what they were: brutal. The five-year CD had an increase of 0.04% APY, with all other terms showing zero or even a -0.01% change. As expected, five-year terms also yielded the highest returns, at 1.08% APY, while six-month terms offered just 0.18% APY.
Savings and money market accounts saw the same dismal yields as CDs, with virtually no change from 2013 to 2014, though of the two, money markets had a higher average rate of 0.17% APY, compared to a 0.09% APY average savings account rate.
In 2015, CD fans might find themselves stuck with underperforming investments: Either the rates won’t be competitive in the current market or the rate of inflation will be higher than the yield, and the investment will lose money. Account holders may choose to break the terms of the CD to get into a better rate, which will result in penalties, or they can try to ride out the terms.
Moving forward to 2015 and beyond, it would be wise for consumers to investigate more flexible options, like add-on or bump-up CDs, and split CD investments among varying maturity terms (called “CD laddering“). Traditional banks, credit unions and alternative financial institutions will all offer competitive pricing on savings, money market and CD accounts, so savers should shop around before committing.

The Bottom Line

The Fed will tighten money policy in 2015 before the unemployment rate gets too low, sparking inflation, but it will be a conservative and cautious approach, so as not to disrupt the recovering economy. Interest rates will not begin to rise dramatically until the Fed sees full employment and stable inflation, which probably won’t happen until 2016 or later.

Reprinted from Gobankingrates.com on 12-26-2014

Lepic Kroeger, Realtors August Group Expands Commercial Property Management

THURSDAY, NOVEMBER 27, 2014

Jeff Edberg, CCIM, SIOR and Rachel Barnes, CCIM add two commercial buildings and three new

residential management clients to their professional property management portfolio under the Lepic- Kroeger, Realtors brokerage umbrella. August Group Property Management now serves a 9,988 square foot office / service multi tenant building in Coral Court, Coralville and a 22,000 foot retail multi tenant building near the Waterfront Hy-Vee in Iowa City. They also just added three owners with multiple residential condos to the client list.

Professional property management first relieves the property owner of the mundane, yet exacting task of collecting monthly rent, paying the monthly bills and managing the financial accounts for their properties. The real “meat and potatoes” of property management is in seeking new efficiencies for clients. Consolidation of physical services such as snow removal and landscaping can secure lower pricing for clients and monitoring services such as insurance coverage can avoid potential liability pitfalls while insuring clients are paying the right rate for services. Property managers continually monitor the market rent value to insure owners are receive the right rental rate, insuring the safety of the investment and monitoring expenses so everything runs smoothly and efficiently.

For more information just call Jeff Edberg at 319-331-6187 or email him at jeff@icrealestate.com.

Tax Deal Extends 15-year Leasehold Recovery

SATURDAY, NOVEMBER 8, 2014

Like it or hate it, the American Taxpayer Relief Act of 2012, also known as the “fiscal cliff fix,” does have some real pluses for commercial real estate investors. Perhaps the most beneficial is the reinstatement of the 15-year recovery period for leasehold improvements. The ability to depreciate tenant improvements on a straight-line basis over 15 years expired in 2011. The new act extends it through 2013 and makes it retroactive to 2012. Other provisions that might help commercial real estate investors and practitioners:

Mortgage debt forgiveness, to a maximum of $2 million, is extended through 2013.
Capital gains remain at 15 percent for single taxpayers earning under $400,000, $450,000 for couples. Make more and you have to pay 20 percent on gains.
The Alternative Minimum Tax exemption amount has been raised to $50,600 for singles and $78,750 for married couples. Plus, the AMT is now indexed to inflation.
The estate tax exemption remained at $5 million and was indexed for inflation.
Expensing of capital equipment (Section 179) is increased to $500 million with a $2 million threshold for both 2012 and 2013.
The 50 percent bonus depreciation is extended through 2013 on new equipment acquired for business use.

Rachel Barnes, CCIM

THURSDAY, MAY 1, 2014

Rachel Barnes, an eight year veteran of Iowa City area commercial real estate sales and leasing has just earned the CCIM designation issued by the Commercial Investment Institute a sanctioned body of the National Association of Realtors.  The Realtors CCIM designation is the “gold standard” for commercial real estate excellence in the world.  Out of the 997,148 real estate agents in the United States, just 13,000 of them hold the CCIM designation.  There are now just four CCIM designees in Johnson County, Iowa. The course of study involves several week long core courses with a comprehensive final exam.  There are also rigorous commercial real estate experience requirements of designees.  The course of study covers graduate level discounted cash flow and investment analysis, site selection, demographic analysis, marketing, business practice and ethics components.  Investors seeking the highest degree of expertise, experience and ethical standards look for CCIM designees!

Congratulations, Rachel Barnes, CCIM for earning this high distinction!

2015 Interest Rate Projections: Here’s How Rates Will Affect Your Money Next Year

FRIDAY, DECEMBER 26, 2014

It’s interest rate projection season here at GOBankingRates. While consumers are busy preparing for the holidays and end-of-year celebrations, we’ve been hard at work analyzing interest rate trends from 2014 and making predictions for what 2015 will bring. Let’s take a look at what rates have been doing over the last year, where they are expected to land in 2015 and what it all means for consumers.

Interest Rates 101

Before we get started, let’s have a quick lesson on what actually causes interest rates to go down or up: what the Fed does, what inflation is, how rate cuts and increases affect inflation, and the difference between target and prime rates.

The Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or just the Fed) is the central banking system of the United States. The current Chair of the Federal Reserve is Janet Yellen, who was appointed by President Barack Obama in February 2014.
The Fed’s three key objectives for monetary policy in the United States are:
• Maximum employment
• Stable prices
• Moderate long-term interest rates.
One way it attempts to achieve this is by controlling the federal funds rate — the rate that banks charge each other for overnight loans, which impacts interest rates.

Inflation

On its most basic level, inflation is the rate at which the prices of goods and services rise. As inflation rises, purchase power falls — every dollar buys a smaller percentage of that good or service. The Fed tries to sustain a rate of inflation of 2 to 3 percent to keep the growth of prices at a minimum.
There is no universal agreed-upon cause of inflation, but there are two widely accepted theories: demand-pull and cost-push. Demand-pull is essentially “too much money chasing too few goods” and cost-push is basically “too many people chasing a single good or service.” The oil crisis of the 1970s is a good example of cost-push inflation — the cost of gas dramatically increased and consumers had no suitable alternative.
Both theories actually describe overall aspects of inflations: demand-pull explains how it starts and cost-push describes why it’s so difficult to control once it starts.
Related: 10 Best Bank Accounts to Beat Inflation

Interest Rate Cuts

When the federal funds target rate is reduced, interest rates get cut. The Fed rate is important because many other rates follow this rate closely. Fed rate changes help the economy strike a balance between low inflation and sustainable economic growth; when rates are low, there is more money available for lending, which trickles down to consumers and stimulates economic growth.
Low rates are great for consumers in the market for a new house or car — they encourage borrowing. If rates are too low, they can cause excessive growth, which can lead to inflation. Inflation erodes purchasing power and can lead to unsustainable economic expansion.
Low rates also aren’t good for savers; consumers yield next to nothing on short-term CDs, money market accounts, and checking and savings accounts.

Interest Rate Increases

The Fed raises the federal funds target rate to slow inflation and return economic growth to sustainable rates. Rate increases impact consumers’ wallets, depending on how dramatic the increase is. Higher rates mean it’s more expensive to finance goods, like homes or cars, or pay off debt.
Rate increases can also have a negative impact on people who live off a fixed income: Increased inflation affects their standard of living, since they don’t have the ability to increase their income. If rates get too high, financing is too expensive, which slows the economy and can even lead to contraction — a decline in growth for two or more consecutive quarters.
Interest rate increases aren’t necessarily always terrible news for consumers — they are meant to stabilize growth, avoid hyperinflation and can also be a sign the economy is improving. Rate increases are also favorable for consumers with liquid assets — short-term CD, money market, checking and savings accounts will yield higher returns.

Target Rate vs. Prime Rate

The Fed’s target rate is for bank-to-bank lending. The prime rate is the base rate banks charge consumers. The most credit-worthy consumers can get prime rate financing, the lowest possible rate available; but the more credit risk a consumer poses, the higher his rate will be over the prime rate. That’s what lenders call “prime plus premium” — your premium is affected by your credit score, assets, income and more.

Current Interest Rates: A Brief History

In 2007 to 2008, the Federal Reserve took extreme actions in response to the financial crisis in order to stabilize the U.S. economy: Short-term interest rates were reduced to near zero to help households and businesses finance new spending and stabilize prices. Since then, interest rates have stayed low and the economy has showed slow signs of improvement.

Early 2014

The majority of economists didn’t expect a rate increase in 2014, and they were right. Early 2014 saw the same low rates we have today, but there was a surge in the housing market and new car sales.
From a historical standpoint, car loans were at bargain-basement prices and terms were incredibly competitive between both big banks and credit unions. International Business Times reported that 2014 new car sales were on pace to hit their highest rate since 2007, immediately before the Great Recession.
Home buyers continued to take advantage of still-affordable home prices and the historically low mortgage rates they saw at the end of 2013. At the turn of the year, home prices were 31.5 percent below their 2006 peak and the percentage of monthly family income spent on mortgage payments was just 15.6 percent, down from 23.5 percent in mid-2006, according to data from Clear Capital.

Mid-2014

In the summer of 2014, Fed officials predicted the target interest rate would be 1.13% at the end of 2015 and 2.5% a year later, which was higher than previously expected. In March, they estimated the rate would rise to 1% by the end of next year and 2.25% at the end of 2016. Yellen downplayed the significance of the rate forecasts, saying, “I think every participant who’s filling out that questionnaire has a considerable band of uncertainty around their own individual forecast.”

Late 2014

The end of 2014 saw some surprising U.S. economic data: The Labor Department’s October jobs reports showed unemployment was down to 5.8 percent (its lowest level since 2008) and the economy added 214,000 jobs. At the same time, average U.S. gas prices fell below $3 a gallon for the first time since 2010, according to AAA, and the U.S. dollar touched a four-year high of 88.19, reports Reuters.
Still, retail sales growth was slow and new housing construction fell in October. The Fed lowered growth expectations for the remainder of 2014 and kept the short-term interest rate near zero. New York Federal Reserve President William Dudley said in an October speech, “It is still premature to begin to raise rates. The labor market still has too much slack and the inflation rate is too low… The consensus is that lift-off will take place around the middle of next year. That seems like a reasonable view to me.”

2015 Interest Rate Predictions

Late in 2014, the Fed indicated that mid-2015 will see a rate increase, but there is no definitive word on how much or exactly when. When asked, Yellen only said the Fed expects rates to stay low for a “considerable time,” but declined to say just how long. She has repeatedly stated it all depends on how the economy performs. Interest rate forecasts are based on some of the most difficult economic variables to predict, but that hasn’t stopped experts from trying: Most private economists agree that the Fed will raise rates mid-2015, but investors are betting on rates staying at record lows for longer, according to Bloomberg.
But at a June press conference, Yellen warned investors not to become overly confident in the current monetary policy. It is important “for market participants to recognize that there is uncertainty about what the path of interest rates, short-term rates, will be, and that’s necessary because there’s uncertainty about what the path of the economy will be,” she said. “Economic activity is rebounding in the current quarter and will continue to expand at a moderate pace thereafter.”
What does this all mean? The Fed has confirmed a rate hike will happen, Janet Yellen has warned investors not to get too comfortable and the economy is actively rebounding, but the timing is still unclear and experts continue to debate the issue. Whether we see a rate hike in the first quarter or third, here is what consumers can expect sometime in 2015:

Mortgage Rates

The housing market of 2014 was better than it had been in years, with a low number of homes entering foreclosure, favorable mortgage rates and more affordable housing options available to consumers. The impact of a mortgage rate hike really depends on the kind of financing the consumer has, whether the mortgage has a fixed or adjustable rate, and what the loan is tied to.
30-year fixed-rate mortgages are typically tied to the yield on 10-year treasury bonds, and rates on adjustable rate mortgages (ARMs) are tied to the federal funds rate. The average 30-year fixed mortgage rate fluctuated between 4% and 4.5% for most of the year, and Freddie Mac is predicting rates will rise to 5% in late 2015.
Here is an estimate of how a rate hike might impact a monthly payment on a 30-year, $200,000 mortgage:

• Current rate: 4.22% = $980 per month
• 2015 rate: 4.40% = $1,002 per month
• 2020 rate: 6% = $1,199 per month

In 2015, median home prices, mortgage rates and number of homes for sale are expected to see a moderate increase. Remember: Increased rates aren’t always bad for consumers. They are meant to stabilize growth to a sustainable pace. Higher mortgage rates, stabilized pricing and an increase in inventory will hopefully help solve the supply and demand issues that plagued 2014.

Credit Card Rates

Consumers with fixed-rate credit cards won’t see a change in their payments, but those with variable rate cards will. Most credit cards are linked to the prime rate and a federal funds rate increase will lead to higher interest payments. The average consumer household with credit card debt carries a whopping $16,000 balance, according to NerdWallet, and they should expect a change in the payment and terms.
Here is how a rate hike will affect the monthly payments on $16,000 of credit card debt if the borrower attempts to repay the loan within five years:

• Current rate: 13.02% = $364 a month
• 2015 rate: 13.75% = $370 a month
• 2020 rate: 15.75% = $387 a month

Even if a consumer has a fixed-rate card, the credit card company can increase the rate at any time, as long as it provides the consumer with advance notice. Consumers with credit card debt should prepare for a rate increase by either paying off the debt before mid-2015, transferring the debt to a less expensive alternative or trying to negotiate better terms with their credit issuers.

Auto Loan Rates

Auto loan rates have been historically low in recent years, leading to an influx of new car purchases in 2014. The National Automobile Dealers Association expects the auto loan rate hike in 2015 to be minimal, with consumers continuing to benefit from favorable lending terms. The rate gaps between new and used cars will narrow, but consumers will still see a large disparity between new and used car loans with four-year repayment terms.
In 2015, auto loan rates will stay low and demand will remain high, which means competition between lenders will be fierce. A recent survey from WalletHub found that credit unions provide 40 percent lower interest rates for new car loans and 44 percent lower rates for used car loans than traditional banks. Car buyers will see better pricing and longer terms from big banks, as they start to vie for a bigger piece of the auto loan pie.

Savings, Money Market and CD Rates

Let’s just call these 2014 rates what they were: brutal. The five-year CD had an increase of 0.04% APY, with all other terms showing zero or even a -0.01% change. As expected, five-year terms also yielded the highest returns, at 1.08% APY, while six-month terms offered just 0.18% APY.
Savings and money market accounts saw the same dismal yields as CDs, with virtually no change from 2013 to 2014, though of the two, money markets had a higher average rate of 0.17% APY, compared to a 0.09% APY average savings account rate.
In 2015, CD fans might find themselves stuck with underperforming investments: Either the rates won’t be competitive in the current market or the rate of inflation will be higher than the yield, and the investment will lose money. Account holders may choose to break the terms of the CD to get into a better rate, which will result in penalties, or they can try to ride out the terms.
Moving forward to 2015 and beyond, it would be wise for consumers to investigate more flexible options, like add-on or bump-up CDs, and split CD investments among varying maturity terms (called “CD laddering“). Traditional banks, credit unions and alternative financial institutions will all offer competitive pricing on savings, money market and CD accounts, so savers should shop around before committing.

The Bottom Line

The Fed will tighten money policy in 2015 before the unemployment rate gets too low, sparking inflation, but it will be a conservative and cautious approach, so as not to disrupt the recovering economy. Interest rates will not begin to rise dramatically until the Fed sees full employment and stable inflation, which probably won’t happen until 2016 or later.

Reprinted from Gobankingrates.com on 12-26-2014

Iowa Business Property Tax Credit

THURSDAY, JANUARY 29, 2015

The Iowa Department of Revenue announces implementation of the new Business Property Tax Credit. The Business Property Tax Credit is one of the components of the largest tax cut in Iowa history signed into law by Governor Branstad on June 12, 2013. 2013 Iowa Acts Senate File 295 provides a Business Property Tax Credit for certain commercial, industrial, and railroad properties. The credit does not apply to residential or agriculturally classified property. One credit is available for each qualified property unit. A property unit consists of contiguous parcels of the same classification that are owned by the same person and operated by that person for a common use and purpose. Applications for credit against 2013 property tax assessments must be received by the county or city assessor by January 15, 2014. The actual amount of credit each property unit will receive depends in part upon the total value of all property units and the average consolidated rates in each unit. The credit calculation is designed to spend ninety-eight percent of the amount appropriated by the Legislature to the Business Property Tax Credit Fund. For the first year of the credit $50 million was appropriated to the Fund. The Legislative Services Agency has estimated that the maximum first year credit amount will be approximately $523.

Since Senate File 295 was signed into law, the Department has been working closely with local government officials to develop the tax credit process, starting with the taxpayer’s application all the way through the actual adjustments to taxpayers’ property tax statements. The Department has created a page on its website devoted exclusively to 2013 commercial property tax reform. On this web page taxpayers can access and print a copy of the Business Property Tax Credit Application Form and view answers to questions that have been asked (Q and As).

The Department is in the final stages of rule development, but cautions that rules cannot possibly address every scenario that might be encountered in administering the credit. “We encourage people to visit our website and view the Q and As,” said Julie Roisen, the Department’s Property Tax Division Administrator. “If their questions aren’t already answered there, they can submit them to us online. We will add the new Q and As to the body of information we are accumulating.” The Department updates the Q and As weekly.

For more information on the Business Property Tax Credit, including the application form, visit the Department’s website at www.tax.iowa.gov/2013-property-tax-reform.

Note that applications are due by March 15th 2015. The application can be found athttps://tax.iowa.gov/sites/files/idr/forms1/54024_0.pdf

All About Iowa City

Iowa City – A Special Place

Offering big-city amenities along with small-town hospitality, Iowa City has it all. Nestled in the heart of the Midwest in east central Iowa in Johnson County, it has long served as a locus for culture, education, variety and fun. A stroll through the downtown pedestrian plaza proves it. Here you will find a real sense of community and friendly commerce. Downtown you might come across college students in a game of chess on the plaza’s life-size game board. On-lookers sit on the plaza’s limestone benches talking politics, philosophy, or Big Ten sports while children climb a nearby jungle gym. A block away, others might be taking a class at the senior center, lounging in outdoor cafés, savoring the fine cuisine the city has to offer. Across the way, you’ll likely hear a local band playing a catchy mix of jazz and blues on the area’s outdoor mini stage. The state’s historic Old Capitol Building looms to the west. A cherished landmark of the University of Iowa campus, it embodies the city’s prominence, grace, and heritage. Whether a first-time visitor or a native returning home, you will discover this place is one where tradition comfortably exists alongside change.

Events & Activities

From music and art festivals to Broadway performances, Iowa City has an event to suit anyone’s taste. During the summer months, live music becomes a part of downtown’s irresistible ambiance. Each July, the city hosts a jazz festival that attracts music enthusiasts from both near and far. The annual Iowa Arts Festival features the state’s best visual art, music, and food. Iowa City is also home to several community theaters, including Riverside Theatre’s Shakespearean stage. Located in City Park, this open-air theater presents shows under the stars.

Iowa City is also home to the recently restored historic Englert Theatre downtown and also has a vibrant Iowa City Community Theatre.

If Broadway productions are more your style, the University of Iowa’s Hancher Auditorium showcases the best in entertainment. Over the years, Hancher has been host to productions such as Rent, Cats, Les Misérables, and Stomp. The Hancher stage is frequented by the likes of Yo Yo Ma, Jerry Seinfeld, and Wynton Marsalis.

Event Calendar:http://www.culturalcorridor.org

Home to the University of Iowa

Founded in 1847, today’s University of Iowa is recognized as one of the nation’s top public universities, offering more than 100 areas of study for its 29,000 students. The institution’s Writers’ Workshop is internationally acclaimed, having fostered the creative talents of Ray Bradbury, Flannery O’Connor, Jane Smiley, and Kurt Vonnegut. The University also includes one of the largest university-owned teaching hospitals in the nation. Providing patient care within 16 medical specialties, the University of Iowa Hospitals and Clinics have been named one of “America’s Best Hospitals” by U.S. News & World Report magazine. Iowa City is also home to Mercy Hospital, a pre-eminent provider of healthcare to the region.

In addition to academics, UI students are able to choose from a wide variety of activities. From intramural sports teams to drama clubs, the University of Iowa has more than 350 student organizations. And, the University’s athletic calendar is always full of the home games, meets, and matches of its 22 Big Ten teams.

Scenic Attractions

Iowa City is proof that the state’s geography isn’t merely a flat and vast plain, but rather a place of rolling hills, lush and scattered woodlands, and tall grasses. In the Iowa City area alone, there are 41 public parks, several of which overlook the scenic Iowa River. Many of these parks are equipped with networks of walking and biking trails, and quaint picnic sites and prairie reserves.

The Coralville Reservoir, just 3½ miles north of Iowa City, offers a multitude of recreational activities. In addition to 5,000 acres of water for pleasure boating, fishing, swimming, and water-skiing, the area is laced with attractive hiking, biking, and cross-country skiing trails. Catch a glimpse of the state’s geologic past at a nearby Devonian Fossil Gorge. Unearthed during the flood of 1993, the gorge contains a variety of fossils more than 350 million years old.

Shopping and Dining Out

Iowa City is full of unique shops – from the Old Capitol Town Center, Pepperwood Plaza, and the Sycamore Mall, the area provides a variety of shopping opportunities. Downtown is unequalled when it comes to offering specialty goods; there you’ll find clothing and jewelry, gifts and toys, books and espresso. The Coral Ridge Mall, located in the nearby city of Coralville, provides other possibilities for the serious shopper.

When shopping, you’re sure to work up an appetite. What better place to dine out than Iowa City? Scattered throughout Iowa City, there are numerous cafés and restaurants that offer a variety of foods, from international dishes to home-style meals. Depending on the weather, you might decide to dine outside at one of downtown’s outdoor cafés.

For more info: http://www.downtowniowacity.com & http://www.iowacitycoralville.org

Iowa City: The Center of It All

Culture and history abound in and around Iowa City. The Amana Colonies are just a 20-minute drive west of the city. The seven colonies offer the best in German home-style food and traditional crafts. The small town of Kalona lies southwest of Iowa City, offering visitors a glimpse into the culture of the Amish population that calls the area home. West Branch is located east of Iowa City and is the birthplace of Herbert Hoover, America’s 31st president. Visitors can learn more about the life and times of the president with a stop at the Herbert Hoover Presidential Library-Museum. Cedar Rapids, located 30 miles north of Iowa City along Interstate 380, proudly recognizes its heritage through the charm of its Czech Village and other cultural attractions.

Strong & Diverse Economy

Iowa City’s economy is as diverse as it is prosperous. The economy is based upon thriving commerce, a major university, and a number of national and international businesses, including several Fortune 500 companies. Iowa City is home to the corporate headquarters for ACT, Moore North America, Pearson, Lear, Oral B Laboratories/Gillette, Procter & Gamble, and scores of smaller industries and businesses.

The University of Iowa is the city’s largest employer, with 23,608 employees. The academic and research mission of the University, along with the health care services provided at its hospitals and clinics, have a tremendous economic impact on the area.

While established firms continue to prosper in Iowa City, opportunities abound for new businesses. The city has land for additional industrial/commercial development. These sites are well suited for offices, manufacturing, warehousing, and/or research facilities.

The City of Iowa City also has a variety of programs to assist with business development. Contact Wendy Ford, Economic Development Coordinator at (319) 356-5248.

Workforce & Training

Without question, Iowa City’s greatest asset is its people: well-educated and highly productive workers who demonstrate low absenteeism and turnover rates. The city’s university student population augments the labor force and provides a large pool of part-time workers for area businesses. In addition, the University continuously injects qualified professional and technical expertise into the labor market.

The Iowa City Kirkwood Community College campus has an enrollment of approximately 3,239 students and offers a full Arts and Sciences curriculum. The main campus of Kirkwood Community College is located approximately 20 miles away in Cedar Rapids. It offers distance learning for those who can’t make it to campus, continuing education classes for those who wish to take classes in their area of interest without obtaining course credit, plus customized training programs for area businesses. The National Alliance of Business named Kirkwood its Community College of the Year in 2000 for Kirkwood’s partnerships in developing training programs with the area business community.

Education System

In addition to the University of Iowa and Kirkwood Community College, the Iowa City area provides a variety of excellent K-12 educational opportunities. The award-winning Iowa City Community School District has an enrollment of about 11,000 students from kindergarten through 12th grade. The district includes the nearby communities of Coralville, Hills, and North Liberty. In all, the district has 18 elementary schools, three junior high schools, two senior high schools, one alternative school for seventh through twelfth graders, as well as daycare and pre-school facilities. Iowa City is also home to Regina Catholic Education Center, a private Catholic institution, Willowind School, a private K-8 school, and Preucil School of Music, specializing in the Suzuki method of instruction.

Traveling Time in Hours and Minutes from Iowa City(click for map)

Chicago	3:41
Des Moines	2:01
Kansas City	5:15
Milwaukee	4:36
Minneapolis	4:26
Omaha	4:20
St. Louis	5:26

Fun Facts

• “Iowa” is a Native-American term for “beautiful land”
• Iowa City is the sixth largest city in the state with a population of 67,862
• Iowa City was the state’s first seat of government and served as Iowa’s capital from 1842 to 1857
• When the state legislature moved Iowa’s capital to Des Moines, the University of Iowa was founded in Iowa City to compensate for the loss

Iowa City by the Numbers

Population	67,862
Median Age	24.8 years
Bachelor’s Degree or Higher	55.9%
Average Persons Per Household	2.34
Average High Temperature	59°F
Average Low Temperature	39°F
Average Annual Rainfall	32″
Elevation (range)	630′ – 760′

Iowa City: Best Of…

•  2nd Best Small Metro Area for Business/Careers, Forbes, 2008
• #5 on the Top Ten Cities for Book Lovers list from Livability.com, 2011
• #8 Up and Coming Tech Cities, Forbes, 2008
• #8 on Best Performing Small Cities Index, Milken Institute, 2011
• #10 on Best Cities for College Grads list, Richard Florida, 2010
• 10th Smartest City in the Nation, Forbes, 2008
• #13 on the Best Cities for Business and Careers (small cities) list, Forbes, 2011
• Healthiest Town in the United States, Men’s Journal, 2010
• One of the Top Towns for Jobs, MSN CareerBuilder, 2010
• Johnson County is among the top 25 counties in CNN/ Money Magazine’s Where
  the Jobs Are list, with over 22% growth in the past decade, 2010
• City High and West High School named to Best High Schools, Newsweek, 2012

Iowa City Contacts

City of Iowa City
319-356-5000

Iowa City Downtown Association
319-354-0863

Iowa City Area Chamber of Commerce
319-337-9637

Iowa City Area Development Group
319-354-3939

Iowa City Community School District
319-688-1000

Iowa City/Coralville Convention & Visitors Bureau
319-337-6592 or 1-800-283-6592

Reprinted from Iowa City website ICGov.org.