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HomeMy WebLinkAboutA005 - Council Action Form dated March 6, 2001, URA 3 ITEM # a I GG, 4 DATE 3/6/01 COUNCIL ACTION FORM SUBJECT: MOTION DIRECTING STAFF TO PREPARE AN URBAN REVITALIZATION PLAN FOR THE DOWNTOWN AND A RESOLUTION SETTING A DATE OF PUBLIC HEARING FOR APRIL 24, 2001 FOR THE FIRST READING OF AN ORDINANCE ESTABLISHING THE DOWNTOWN URBAN REVITALIZATION AREA AND APPROVING THE REVITALIZATION PLAN FOR THAT NEW AREA. BACKGROUND: When the City Council eliminated the Urban Revitalization Area (URA) for the downtown area in August 1999 there was discussion concerning the creation of a new district for generally the same area in the future. The City Council delayed any decisions until the anticipated Downtown Design Guidelines issue was decided. On December 5, 2000 the City Council reviewed a draft of the Downtown Design Guidelines and the financial assistance program. Staff was directed to take the draft documents to downtown business and property owners for input and to include the possibility of an Urban Revitalization tax incentive program for the area. There has been positive feedback concerning the probability of business and property owners taking advantage of a tax incentive if it is offered along with the Design Guideline program, for the proposed renovation project for fagades of the downtown buildings. The proposed boundaries of the Downtown URA are proposed as the area that the Downtown Design Guidelines Program has designated, which are.- North: North side of Fifth Street (Includes properties on the north side of Fifth Street.); • East: West side of Duff Avenue; • South:North side of Union Pacific Railroad right-of-way; and, • West: East side of Grand Avenue. In the new Urban Revitalization program each Urban Revitalization Area designation is on a "case by case" basis. The URA designation is then specifically given to the property that is benefiting from the tax incentive. Under the Downtown URA any of the properties within the boundary area would be eligible, if the proposed improvements meet the requirements under a proposed criteria matrix (see the attached criteria matrix). Each individual property will not need to go before City Council for designation as an Urban Revitalization Area. { The Downtown URA is proposed to accomplish three goals- 1. Encourage reinvestment into the Downtown area; 2. Encourage the utilization of the Design Guidelines for fagade improvements; 3. Encourage retail uses in the designated Downtown area. The proposed program includes three provisions that are required for all properties to meet in order to be eligible for the tax incentives. These three provisions should serve to accomplish the goals stated above: • Under the Required section of the Criteria Matrix, properties must be located within the designated Downtown. This requirement will designate the area already targeted for the Downtown Design Guidelines Program as eligible for applying for the tax incentive. • Another requirement would be that the property utilize the Downtown Design Guidelines for facade improvements and implement 100% of the applicable facade improvements by an approved designer that are addressed in the Downtown Design Guidelines. This requirement will achieve a historically correct fagade for the building that is receiving the tax incentive. If the fagade improvements are approved, then other improvements to the building would be eligible for the tax abatement. • If a first floor of a building is vacant it is proposed that the front half of the first floor be required to have a retail use. If the first floor is not vacant, and has a permitted use, then it is eligible for tax abatement. No houses in the Downtown area will be eligible for this program. This requirement will encourage the establishment of retail uses where storefronts are vacant. The tax abatement schedules are proposed to be the existing 3-year, 5-year, or 10-year schedules from which to choose. The overall improvement value to the property will need to be at least 105% of the current assessed value to qualify for the program. ALTERNATIVES: 1. The City Council can approve the motion to direct staff to prepare an Urban Revitalization Plan for the Downtown and a resolution to set a date of public hearing for April 24, 2001, for the first reading of an ordinance establishing the Downtown Urban Revitalization Area. 2. The City Council can deny approval of the motion to direct staff to prepare an Urban Revitalization Plan for the Downtown and a resolution to set a date of public hearing for April 24, 2001, for the first reading of an ordinance establishing the Downtown ' f Urban Revitalization Area. 3. The City Council can refer this request back to staff. RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council approve Alternative #1. This action will direct City staff to develop an Urban Revitalization Plan for Downtown and set a date of public hearing for April 24, 2001 for the first reading of an ordinance establishing the Downtown Urban Revitalization Area. COUNCIL ACTION: URBAN REVITALIZATION DOWNTOWN CRITERIA MATRIX REQUIRED Downtown District • Properties must be located within the designated Downtown. Utilizing the Design Guidelines for FaVade Improvements • Properties must use the Downtown Revolving Loan Fund for fagade improvements; AND • Implement 100% of the recommended fagade improvements by an approved designer. Design Guideline treatments to be followed as applicable: • Streetscape • Upper facades • Upper windows • Storefronts • Transoms • Display windows • Kickplates • Entrances • Signs • Awnings and canopies • New Construction If P floor is vacant, then the front half of the P floor is required to have a retail use. If the P floor is not vacant, and has a permitted use, then it is eligible. Furthermore, no residential structures are eligible.