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HomeMy WebLinkAboutA010 - Council Action Form dated March 28, 2000 ITEM # 44 DATE 03/28/00 COUNCIL ACTION FORM SUBJECT: MOTION DETERMINING THAT THE REQUEST FOR DESIGNATION OF AN URBAN REVITALIZATION AREA FOR 316 LINCOLN WAY DOES NOT MEET THE CRITERIA FOR ELIGIBILITY UNDER THE COMMERCIAL CRITERIA MATRIX. ACTION FORM SUMMARY: The City of Ames has received a Request for Designation of an Urban Revitalization Area for the property located at 316 Lincoln Way under the Commercial Criteria Matrix. The property owner proposes eliminating the trailer park at 316 Lincoln Way and developing a Dairy Queen Franchise on the site. Staff has determined that the request does not meet the criteria for eligibility for designation as an Urban Revitalization Area under the Commercial Criteria Matrix and recommends the denial of the request. BACKGROUND: On March 7, 2000 the City of Ames received, from the property owner of 316 Lincoln Way, a Request for Designation of Urban Revitalization Area. The project consists of the removal of a trailer park and the construction of a 2,130.8 square foot Dairy Queen franchise building on the site. This property has an approved site plan for the Dairy Queen franchise building. Currently there are 14 trailers on the site occupied by residents. The action to be taken by the City Council is to determine if the request meets the Criteria for Eligibility under the Urban Revitalization Commercial Criteria Matrix. If the City Council determines that it does, then City Council needs to set a date of Public Hearing for approval of the Request for Designation of Urban Revitalization Area for 316 Lincoln Way. ANALYSIS: The applicant has submitted a Request for Designation of Urban Revitalization Area for 316 Lincoln Way under the Commercial Criteria Matrix (see attached request). Staff has determined the request is complete and the information submitted is correct. The existing trailer park has been functioning since 1951 as rental units. The trailer park is not a permitted use in the General Commercial Zoning District, but is a legal non- conforming use. The proposed project is a permitted use within the General Commercial Zoning District, which will result in the removal of a non-conforming use. The following analysis is estimated from the building value estimated by the property owner and the established land value by the City of Ames. The tax rate is the current tax rate, no change is taken into consideration over a 10 year period on the value of the property and the rate of taxes. The taxes deferred and collected analyzing the three different tax schedules are listed below on the following valuation: Estimated Value of Building $256,000 Tax rate/$1,000 Valuation: $29.83319 Land Value $259,000 Total Value $515,000 Yearly tax revenue: $15,364.09 No tax exemption over a ten year period = $153,640.90 Taxes Exempted Per Taxes Paid Over 10-Year Schedule Period 3-Year $46,092.27 $107,548.63 5-Year $46,092.27 $107,548.63 10-Year $67,602.01 $ 86,038.90 Required Conditions The Criteria for Eligibility under the Commercial Criteria Matrix (see attached), mandates that the property must display one of four required conditions before it can be determined that the property is eligible to be considered further. These four threshold conditions are: - A slum and blighted condition, or; - An underutilized condition, or; - Zoning nonconformity, or, - Floodway fringe nonconformity. The applicant has indicated that the property meets the Required Condition of Non- Conforming, with respect to the base zone that will be brought into conformance. To meet the Non-Conforming portion of the matrix, the current use of the property needs to be a use that is not permitted because of base zoning regulations. Under the General Commercial Zoning District, trailer parks are not permitted. Trailer Parks are allowed only in the R-5 Zoning District. - City staff believes the applicant has met the requirement of non-conformity, with respect to the base zone that will be brought into conformance. 2 Optional Conditions Under the optional requirements of the Commercial Criteria Matrix there are two options: -Underrepresented: Properties that are to include a business use where the actual sales of the business use are below the expected sales for the business use as determined by the City Council to be of benefit to the City. This is to be supported by a retail leakage study. - 1) Design Standards 2) Landscaping 3) Signage and one of the following: 4) Shared Parking or Structured parking: 1) Meets any applicable design standards, 2) landscaping of 25% of the area of the lot and landscaping area is located adjacent to streets or neighboring property, 3) signs utilize wall mounted, ground mounted, or monument signs, and 4) shared parking with another commercial property allowing for joint access and or drive aisle movement between the properties with cross easements or meet a structured parking requirement based on a square footage requirement to the percentage of parking provided in a parking structure. The applicant addresses the optional requirement of: 1) Design Standards, 2) Landscaping, 3) Signage, and 4) Shared or Structured Parking: 1) Design Standards: The Design Standards for the General Commercial Zoning District have been met. The Design Standards for this zoning area are meeting setback requirements, parking requirements, and traffic flow requirements for the site plan in a General Commercial Zoning District. 2) Landscaping Standards: The Landscaping Standards that state that 25% of the area of the lot is landscaped and landscaping is appropriately used on the street facing side, as well as adjacent property sides, have been met. 3) Signage Standards: The Signage Standards have not been met. The applicant is utilizing wall mounted signs on the east and west sides of the building. The applicant is also utilizing a monument sign on the west-end of the property. All of these are allowed under the Commercial Criteria Matrix. The applicant is also utilizing a pole sign on the east- end of the property and this is not permitted under the Optional Signage Standard. 4) The Shared Parking Standard: The Shared Parking Standard is not being fulfilled by the applicant for this commercial development. The applicant has indicated that an attempt to coordinate shared parking with property owners to the east, west, and south failed as the adjoining commercial property owners refused to share parking. The applicant also indicates that there is a topography problem to the east and a public alley to the south that would also inhibit the shared parking scenario. 3 City Staff has determined the applicant has met the required (non-conforming condition), and has met the optional conditions of Design Standards and Landscaping, but has not met the Signage and Shared Parking conditions that are required to be met under this optional condition of the Commercial Criteria Matrix. ALTERNATIVES: 1. The City Council can determine that the request for designation of an urban revitalization area for 316 Lincoln Way does not meet the criteria for eligibility. 2. The City Council can direct that the staff revise the Commercial Criteria Matrix criteria where the revisions might or might not enable the property at 316 Lincoln Way to be designated as an Urban Revitalization Area. 3. The City Council can refer this request back to staff for additional information. MANAGER'S RECOMMENDED ACTION: Staff has determined that the project does meet the Required Condition with respect to the non-conforming base zoning condition of the Commercial Criteria Matrix. City staff has determined that the applicant has met some, but not all, of the Optional Conditions. To have the property at 316 Lincoln Way recommended for consideration as an Urban Revitalization Area, the project needs to meet all of the Optional Condition standards that are chosen, which is required under the Commercial Criteria Matrix. The applicant has met the Required Condition of Underutilized and the Optional Conditions of Design Standards and Landscaping. The applicant has not met the Optional Conditions of Signage and Shared Parking. Since it is essential that the applicant meet both the Required and the selected Optional Conditions, it is the recommendation of the City Manager that the City Council adopt Alternative #1. This action will deny the Request for Designation as an Urban Revitalization Area for 316 Lincoln Way on the basis of the project not meeting all of the Optional Conditions (Signage and Shared Parking) set forth in the Urban Revitalization Commercial Criteria Matrix. This is the first request under the new Urban Revitalization Commercial Criteria Matrix. There is little doubt that improvement to this site would benefit the community. The City Council should decide if the Criteria Matrix, as currently approved, is accomplishing the objectives of the program. If you conclude this is not the case, the staff should be directed to revisit the Commercial Criteria Matrix and recommend possible revisions. 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