HomeMy WebLinkAboutA012 - Memo from City Assessor dated October 5, 2000 515 Clark Avenue
City Assessor Ames,Iowa 50010
Phone (515)239-5370
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DATE: October 5, 2000
TO: Mayor Tedesco & Ames City Council
FROM: Richard Horn, City Assessor P
RE: Assessment of Parkland/Open space/Common Areas
At the September 26, 2000 meeting, the Council requested that the City Assessor explain the
assessment of parkland, open space and common areas. The request came up during the
discussion of urban revitalization exemptions in Somerset Village, so the explanation is specific to
Somerset although the procedures, values and considerations are similar in other subdivisions.
PARK LAND: Park land owned by the City is exempt municipal property and is not assessed. It
must be devoted to public use and not held for profit. Privately owned land is generally taxable
property. The City may operate private land as exempt municipal property under certain
circumstances outlined in Chapter 427.1 subsection 2 of the Iowa Code. Private land used for
religious or charitable purposes may be exempted after making an application to the assessor.
COMMON AREAS/ OPEN SPACE: Parcels that are designated "outlots" on the subdivision plat
with further development as buildable lots prohibited. Common areas contribute to the value of
the neighborhood and may contain improvements such as guest parking and recreational structures
or facilities. These common area parcels are usually owned and maintained by an owner's
association and fall into two general categories:
1. Common /buffer areas: These areas exist in several subdivisions in Ames and are often
irregular in shape and may contain drainage, flowage and utility easements. Restrictions are
placed on the use of the land and future development into buildable lots is prohibited. For the
2001 assessment the land area will be valued at about $5,700 per acre. These parcels are
usually classified residential. At the current levy and rollback, the common land would have
an annual tax bill of about $92 per acre. Buildings, structures, and paving will increase the
assessed value.
There are about 11.3 acres that will be assessed in this manner in the recorded Somerset
subdivisions. The developer transfers common areas to owner associations as the subdivision
improvements are completed. Either the Somerset Property Owners Association, Inc. or the
Somerset Town Home Association, Inc. owns and maintains most of the parcels comprising the
11.3 acres. The taxes for each parcel will be billed to the owner's association holding title.
2. Targeted use areas: Jointly used and maintained facilities, such as the commercial parking lot
and the clubhouse in Somerset. These parcels will be classified commercial and assessed at
fair market value.
If more information is needed, please contact me.
Commonarea0010.doc