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HomeMy WebLinkAboutA004 - Council Action Form dated September 19, 2000 t ITEM # Q. DATE 09/19/00 COUNCIL ACTION FORM SUBJECT: MOTION DETERMINING THAT THE REQUEST FOR DESIGNATION OF URBAN REVITALIZATION AREA FOR 2922 WEST STREET MEETS THE CONDITIONS FOR ELIGIBILITY UNDER THE MULTIPLE FAMILY RESIDENTIAL CRITERIA MATRIX AND TO PROCEED WITH SETTING THE DATE OF PUBLIC HEARING FOR APPROVAL OF REQUEST FOR DESIGNATION OF URBAN REVITALIZATION AREA. ACTION FORM SUMMARY: The City of Ames has received, from the property owner of 2922 West Street, a Request for Designation of Urban Revitalization Area under the Multiple Family Residential Criteria Matrix, for a proposed project consisting of a 3 story, 20 unit apartment building. It is the belief of staff that the request meets the conditions for eligibility for designation as an Urban Revitalization Area under the Multiple Family Criteria Residential Matrix. A date for Public Hearing should be set for approval of the Request for Designation of Urban Revitalization Area. BACKGROUND: On September 1, 2000 the City of Ames received a Request for Designation of Urban Revitalization Area for property located at 2922 West Street. This property has an approved site plan for a 3 story, 20-unit apartment building of wood and masonry construction, with 59 parking spaces being provided. It would be constructed on 4 lots, which currently have 4 vacant houses on the properties. The action to be taken by the City Council is to determine if the request meets the conditions for eligibility under the Urban Revitalization Multiple Family Residential Criteria Matrix. If the City Council determines that it does, it then needs to set a date of Public Hearing for approval of the Request for Designation of Urban Revitalization Area for 2922 West Street. ANALYSIS: The applicants have submitted a Request for Designation of Urban Revitalization Area for 2922 West Street under the Multiple Family Residential Criteria Matrix (see attached request). Staff has determined that the request is complete and the information submitted is correct. The applicant indicates that there are four vacant houses at 2916, 2920, & 2926 West Street, and 224 Howard, which are to be removed and the properties combined to create 2922 West Street. The City Inspections Office has inspected the properties and have found all four properties to have severe problems that meet various criteria in the abatement of dangerous buildings section of our local building code and are therefore candidates for the Urban Revitalization Program. The total current assessment for all four properties is $326,800 and the total tax revenue is currently $9,643.85. The estimated cost of the new apartment building is $1,200,000 and the estimated future tax revenue without abatement would be $39,345.63. The following analysis is 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 based on the following valuation: Estimated Value $ 1,200,000 Tax rate/$1,000 Valuation = $29.50996 Land Value $ 133,300 Total Value $ 1,333,300 Existing Value $ 326,800 Land and improvements Taxable Value $1,006,500 On new improvements only Yearly tax revenue on improvements, existing value = $29,701.77 No tax exemption ever a ten year period = $297,017.70 l-axes Exempted Per Taxes Paid Over 10-Year Schedule Period 3-Year: $ 89,105.31 $207,912.39 5-Year: $ 89,105.31 $207,912.39 10-Year: $130,687.79 $166,329.74 Required Conditions The conditions for eligibility under the Multiple Family Residential Criteria Matrix (see attached sheet), mandate that the property must display one of two required conditions 2 before it can be determined that the property is eligible to be considered further. These two threshold conditions are: - Slum and Blighted - Underutilized The applicant has indicated that the site is Slum and Blighted in its present condition. To meet the Slum and Blighted condition of the matrix the property has to meet the following: - Properties where a majority of the assessed valuation of the properties has been determined to be substantially unsafe or to have an unsafe use by the City Council. It is staffs' belief that the applicant's request meets the Slum and Blighted requirement. Since staff believes the applicant meets one of the two required conditions, it has analyzed the Optional conditions. The applicant has selected the following Optional condition: "Brick or Similar Masonry Material and Landscaping Beyond Required." Staffs' analysis of the request with respect to these Optional conditions, is as follows: Optional Conditions The two options selected by the Applicant under the Optional conditions of the Multiple Family Residential Criteria Matrix are: - Brick or Similar Masonry Material - 100% of the street face and 50% of the sides of the structure shall be faced with brick or a similar masonry material; and - Landscaping Beyond Required - Landscaping improvements installed at 150% of the required landscaping standard or greater. The applicant has an approved site plan which shows the apartment building designed with brick construction on 100% of the street face and 50% on the sides of the structure, as well as brick along the bottom quarter of the rear side of the apartment building. The landscaping requirement of 150% of the required is exceeded, as the landscaping proposed is 383% of the required under the Zoning Ordinance. The landscaping requirement under the Zoning Ordinance is a minimum of 1 landscaping unit for every 60 feet of frontage along a public street. Therefore, this property would be required to have 3 6 units of landscaping. The design has the following landscaping units: 9 over story trees 9 units 14 under story trees 7 units 10 evergreens 5 units 2 existing over story trees 2 units Total landscaping 23 units Shrubbery required is 36 and 58 are proposed to be planted. Based on this analysis it is staffs' conclusion that this request meets the Optional condition of"Brick or Similar Masonry Material and Landscaping Beyond Required." STAFF CONCLUSIONS: City staff has determined that the applicant has met the Required Slum and Blighted condition from the Multiple Family Residential Criteria Matrix. Staff has also determined that the project does meet the Optional Condition of "Brick or Similar Masonry Material and Landscaping Beyond Required." It is staffs' belief that since the request meets the Required and Optional conditions, that this request be approved. Further, the proposal should be allowed to proceed to the next step in the process, which is for City Council to set a date of public hearing for the approval of the Request for Designation of Urban Revitalization Area for 2922 West Street. ALTERNATIVES: 1. The City Council can determine that the Request for Designation of Urban Revitalization Area for 2922 West Street meets the conditions for eligibility and set a date of public hearing for the approval of the Request for Designation of Urban Revitalization Area. City Council can also direct staff to prepare the Urban Revitalization Plan. 2. The City Council can determine that the Request for Designation of Urban Revitalization Area for 2922 West Street does not meet the conditions for eligibility. 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 of Slum and 4 Blighted and the Optional condition of"Brick or Similar Masonry Material and Landscaping Beyond Required" of the Multiple Family Residential Criteria Matrix. Since the project meets both the Required and Optional conditions it is the recommendation of the City Manager that the City Council adopt Alternative #1. This action will approve the Request for Designation of Urban Revitalization Area for 2922 West Street and set a date for public hearing of October 24, 2000. COUNCIL ACTION: 5