HomeMy WebLinkAboutA004 - Urban Revitalization Plan Area No. 7 1Q599
CITY OF AMES s o Y coup,IOW '
Fit-EQ FOR RECORD
URBAN REVITALIZATION PLAN AM OCT 0 1 1997
AREA NO. 7 q, pi a
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ADOPTED BY AMES CITY COUNCIL
RESOLUTION NO. 97-498
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INTRODUCTION.
For the purpose of providing revitalization benefits pursuant to Chapter 404 Code of Iowa,
the Ames City Council has prepared this urban revitalization plan for the Somerset
Commercial area. The area is shown on Maps#1 .
The legal description for the area is included as Attachment A.
URBAN REVITALIZATION STUDY.
The following items have been addressed as part of this Urban Revitalization Plan:
• Goals and Policies for the Urban Revitalization Area;
• Property Condition;
• Existing Conditions;
0 Proposed Land Uses;
• Proposals for Expanding or Improving City Services;
• Tax Exemption Schedule;
• Qualification of Real Estate for Tax Exemption;
• Increase in Actual Value of Improvements Required;
• Relocation;
• Statement of Applicability; and
• Participation in Other Federal, State,or Private Programs.
GOALS AND POLICIES FOR THE URBAN REVITALIZATION AREA.
The intent of the proposed plan is to stimulate the development on a neighborhood scale
of a commercial center with low and moderate income housing above the ground floor,
by making available to private developers and other private parties the incentives
provided by urban revitalization designation,particularly the property tax exemptions for
qualified real estate.
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The Urban Revitalization Plan is supported by the following goals and policies:
Goal: To encourage specified development in the Urban Revitalization Area.
Policies: 1. Provide a development atmosphere conducive to development with
property owners and potential developers.
2. Encourage public awareness and understanding of the opportunities
afforded in the area and the implications of development.
Goal: To establish the positive aspects of a traditional neighborhood character in
an undeveloped enclave.
Policies: 1. Eliminate nonconforming and inappropriate uses that have a
blighting influence on the neighborhood.
Goal: To increase the tax base in the Urban Revitalization Area.
Policies: 1. The City should support efforts to develop properties in the Urban
Revitalization Area at appropriate densities for compatibility with the
surrounding neighborhood.
Goal: To provide a housing type to serve the residential needs of low and
moderate income persons.
Policies: 1. The use of innovative residential development techniques will be
encouraged to provide a variety of housing types not commonly
associated With conventional development.
Goal: To provide an opportunity for development in an area that has been
characterized by an agricultural use.
Policies: 1. To make available tax exemption through the designation of an
Urban Revitalization Area that will encourage development of the
area in the near future.
PROPERTY CONDITION.
Previous Conditions of Incompatible Land Use.
The subject area was previously a farm.
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Currently, the subject property is vacant. This makes the subject property an
economic liability to the land owner on an underutilized resource of the
community. Tax exemption will be an incentive to help the landowner to better
utilize this property to meet the needs of the area for convenience commercial
services,and affordable housing for persons of low and moderate income.
Existing Lao nd Use.
The dominant land use of the surrounding area is residential, in the form of single-
family detached houses, condominiums, university student housing, apartments,
a church,and a housing for the elderly facility.
Zones.
The existing zoning of the study area is shown on Map#2. Zoning districts in the
surrounding area include the following:
0 R1-10 (Low-Density Residential);
• R-2 (Low-Density Residential);
• R-3 (Medium-Density Residential);
O P-C (Planned Commercial);
Occupancy.
Data has been collected regarding occupancy in and around the Urban
Revitalization Area. The purpose for collecting this data was to determine the mix
of owner-occupied and rental structures.
Occupancy characteristics are shown on Map#3.
The subject property is classified as, 'Not Occupied", since the land has not been
developed and is now vacant.
Land Use Policy Plan (LUPP) Map.
Map #4 shows the LUPP Map designations for the study area. Map#7 shows the
proposed LUPP Map under consideration to replace the current LUPP Map.
PROPOSED LAND USES.
It is anticipated that the subject property will develop as a neighborhood scale commercial
service area with housing for low and moderate income persons. This land use is
consistent with the LUPP Map designations.
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PROPOSALS FOR EXPANDING OR IMPROVING CITY SERVICES.
Capital improvements for the area are planned to occur in accordance with a Development
Agreement between the City and land owners approved by Council Resolution#97-150 on
April 7, 1997.
TAX EXEMPTION SCHEDULE.
All qualified real estate located in the designated revitalization area is eligible to receive
a partial exemption from taxation on the Actual Value added by the improvements as
specified by the schedules below. Any qualified real estate may elect one of the three
schedules specified as follows:
A. The exemption period for ten (10) years. The amount of the partial exemption is
equal to a percent of the Actual Value added by the improvements, determined as
follows:
For the first year, 80%
second 70%
third 60%
fourth 50%
fifth 40%
sixth 40%
seventh 30%
eighth 30%
ninth 20%
tenth 20%
S. The exemption period for five (5)years.
For the first year, 100%
second 80%
third 60%
fourth 40%
fifth 20%
C. The exemption period for three (3) years. All qualified real estate is eligible to
receive a 100% exemption of the Actual Value added by the improvements.
Once the selection of the schedule is made and the exemption is granted, the owner
is not permitted to change the method of exemption.
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9 -7-
10599 C S�
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INCREASE IN ACTUAL VALUE OF IMPROVEMENTS REQUIRED.
The City of Ames will use a five (5) percent increase in actual value requirements. This is
the same percent increase in actual value requirement that is used in all other urban
revitalization districts designated by the City.
RELOCATION.
The City of Ames will not require that any provisions be made or any compensation to be
paid for the relocation of any persons in the subject area. The area is vacant and such
provisions are not necessary.
STATEMENT OF APPLICABILITY.
The revitalization is applicable to only some of the commercial and residential property
within the designated revitalization area. Revitalization, more specifically the tax
exemption provided by this revitalization plan, is applicable to only a subset of eligible
property for which all requirements set out in this plan are met and which is either:
A. a building that is used 100% as a grocery store,
B. a building that is used 100% as a sit-down restaurant,
C. a building that is used for what is classified as "retail" under the Standard
Identification Code (SIC) of the U.S. Department of Commerce if a second and any
subsequent story of such building is used 100% as apartments leased to low and
moderate income persons for an annual rental amount that does not exceed 30% of
80% of the median gross family income prevailing in Story County, Iowa, as
determined for the year preceding the year of the lease,
and;is so used continuously for a period of ten years from its first year of tax exemption
under this plan.
It is a requirement of this plan that for a property to receive any property tax exemption
the property shall be the subject of a covenant with the City of Ames, approved by the
Ames City Council,that runs with the land to bind the title holder of the land, any contract
purchaser of the land,and any trustee of the land to the duties,limitations, obligations and
remedies for the City stated in this revitalization plan.
INJUNCTION REMEDY
It is a requirement of this revitalization plan that the land title holders,contract purchasers
of land,and trustees of land that is the subject of the plan be amenable, one and all,to the
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91- 10599 l ��
City of Ames having injunctive relief as a remedy for any land use in the revitalization
area that is contrary to the provisions of this revitalization plan; and, such injunctive
remedy shall be agreed to as a part of the aforesaid required covenant running with the
land.
RECAPTURE OF TAX EXEMPTION BENEFITS FOR BREACH OF LOW AND
MODERATE INCOME HOUSING REQUIREMENTS
It is a requirement of this revitalization plan, and it shall be a provision of the aforesaid
required covenant running with the land, that the owners of the land shall pay to the City
of Ames all past tax exemption benefits accrued with respect to a property granted tax
exemption because of low and moderate income housing provided as aforesaid if any of
four contingencies occur as follows:
A. Knowingly renting to a person who has an income that has been verified to be
greater than what is allowed as low and moderate income as established for Story
County,Iowa for purposes of the programs and policies of the U.S. Department of
Housing and Urban Development.
B. If an apartment as aforesaid is vacant for a period of one hundred twenty days or
longer, before ten years after the first year of its tax exemption, without a
reasonable explanation.
C. If an apartment as aforesaid is occupied for some use but not occupied for
residential use for a period of thirty days or longer,before ten years after the first
year of its tax exemption.
D. If an apartment as aforesaid is rented for an amount that exceeds a rate of 30% of
80% of the gross median family income prevailing in Story County, Iowa, as
determined for the calendar year preceding the calendar year of the rental,before
ten years after the first year of its tax exemption.
The amount of payment to be made to the City of Ames shall be computed by city staff in
consultation with property tax officials to establish the dollar amount of property taxes that
would have been paid but for the property tax exemption allowed pursuant to this plan.
That amount shall be due and payable on the tenth day following the City's written
demand for payment;and,shall be due and payable from the party that held legal title to
the land on the date that the said contingency was discovered by the City of Ames, and
shall also be due and payable from any contract purchaser of the land, and from any
trustee holding the land in trust. The said obligations of payment shall be joint and
severable.
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9 `7-10599 (-7
The lessor of a low and moderate income housing unit under this plan shall execute a
twelve month written lease with the tenant of the housing unit and shall provide copies
of that lease,and documentation to verify the tenants income, to the Housing Coordinator
of the City of Ames, at the beginning and ending dates of each lease term.
RECAPTURE OF TAX EXEMPTION BENEFITS FOR MISUSE OF COMMERCIAL
PROPERTY
It is a requirement of this revitalization plan, and it shall be a provision of the aforesaid
required covenant running with the land, that the owners of the land shall pay to the City
of Ames all past tax exemption benefits accrued with respect to the property granted tax
exemption under this plan if any of three contingencies occur as follows:
A. If a property that received tax exemption on the basis of a building being used 100%
as a grocery store is used in whole or in part for some purpose other than a grocery
store or as a sit-down restaurant before ten years after the first year of its tax
exemption,
B. If a property that received tax exemption on the basis of a building being used 100%
as a sit-down restaurant is used in whole or in part for some purpose other than a
sit-down restaurant or as a grocery store before ten years after the first year of its
tax exemption.
C. If a property that received tax exemption on the basis of being used for what is
classified as "retail" under the Standard Identification Codes of the U.S.
Department of Commerce is used in whole or in part for some other purpose before
ten years after the first year of its tax exemption.
The amount of payment to be made to the City of Ames shall be computed by the City's
staff in consultation with property tax officials to establish the dollar amount of property
taxes that would have been paid but for the property tax exemption allowed pursuant to
this plan. That amount shall be due and payable on the tenth day following the City's
written demand for payment;and,shall be due and payable from the party that held legal
title to the land on the date that said contingency was discovered by the City of Ames, and
shall also be due and payable from any contract purchaser of the land, and from any
trustee holding the land in trust. The said obligations of payment shall be joint and
severable.
PARTICIPATION IN OTHER FEDERAL, STATE, OR PRIVATE PROGRAMS.
The City does participate in the Community Development Block Grant Program under the
auspices of the U.S. Department of Housing and Urban Development. The program is
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q-�- 10599 ( g�
directed toward rehabilitation for low- and moderate-income, owner-occupied, and
single-family residences within target areas of the City.
The City has used Community Development Block Grant funds in the past to help leverage
private investment. CDBG funds have been used to acquire property for redevelopment
and also for rehabilitation of existing properties.
The City has also used Iowa Housing Finance Authority funds. These funds have been
used to provide financial assistance for first-time home buyers attempting to purchase
adequate housing.
It is not the intention of the City to apply for any other sources of funding be used in this
area.
There are no federal, state, or private grant or loan programs likely to be a source of
funding,for residential improvements, in the revitalization area.
law/Somerset.414
rev.7/3/97
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9�- 19549 (9)
P-C ZONING DESCRIPTION:
TH
(S.M/) OIFGTHE SOUTHEAST WEST CORNER ONE-QUARTEROF THE(SE. 1/)U ONE-HALF
AT THE OF SECTION
28, TOWNSHIP 84 NORTH, RANGE 24 WEST OF THE 5th P.M., AMES.
STORY
COUNTY.
H82ON 28, A
THE
SOUTH
DISTANCELINE
OF THE S. 1/2 OF THE SE. 1/4 0F SAID SECT
OF 1201;06 FEET TO THE POINT OF BEGINNING; HENCE NORTHERLY
ALONG A 812.66 FEET RADIUS CURVE CONCAVE EASTERLY, A
DISTANCE OF 116.87 FEET, SAID CURVE HAVING A CHORD BEARING
OF NOB-°47'05 W AND A CHORD LENGTH OF 116.77 FEET: HENCE,
N90100'00"E, A DISTANCE OF 213.29 FEET: THENCE. NOOs00'00"E, A
DISTANCE OF 150.00 FEET: THENCE, N90°-00'00"E, A DISTANCE OF
516.11 FEET; THENCE SOUTHERLY ALONG A 250.00 FEET RADIUS CURVE
CONCAVE EASTERLY, A DISTANCE OF 78.34 FEET, SAID CURVE HAVING
A CHORD BEARING OF SO4°59'14'W AND A CHORD LENGTH OF 78.24
FEET. THENCE, S00Q00'00"E. A DISTANCE OF 180.05 FEET TO THE
NORTH LINE OF THE N. 1/2 OF THE NE. 1/4 OF SECTION 33.
TOWNSHIP 84 NORTH, RANGE 24 WEST OF THE 5th P.M.. AMES.
STORY COUNTY, IOWA: THENCE, S00°0o'0O"E. A DISTANCE OF 36.21
FEET: THENCE SOUTHERLY ALONG A 91.99 FEET RADIUS CURVE
CONCAVE EASTERLY, A DISTANCE OF 66.89 FEET, SAID CURVE HAVING
A CHORD BEARING OF S20149'53"E AND A CHORD LENGTH OF
65.42 FEET: THENCE. S41°39'46"E. A DISTANCE OF 179.17
FEET: THENCE. N90900'00"W, A DISTANCE OF 391.38 FEET:
THENCE. S00ROO'OO"W, A DISTANCE OF 252.76 FEET; THENCE.
S89238'28"W, A DISTANCE OF 220.00 FEET; THENCE, Noo40o'00'E.
A DISTANCE OF 228.00 FEET; THENCE, S89138'28"w, A DISTANCE
OF 180.00 FEET: THENCE. N002-00'00.E, A DISTANCE OF 6.31 _
FEET: THENCE NORTHERLY ALONG A 375.40 FEET RADIUS CURVE
CONCAVE WESTERLY, A DISTANCE OF 111.38 FEET, SAID CURVE
CHORDHAVING A
110 98 FEET: T 0HEN E. N 17 s00'00"W O DISTANCE OF 83.33'00'W AND A CHORD LENGTH OF
THENCE NORTHERLY ALONG A 812.66 FEET RADIUS CURVE CONCAVE
EASTERLY, A DISTANCE Of 58.09 FEET, SAID CURVE HAVING A
CHORD BEARING OF N14157'08"w AND A CHORD LENGTH OF 58.07
FEET To SECTION 33EANDRTH LINE OF TO THE POINTHOFNBEGINNING.2 OF THE NE. 1/4 Of SAID
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