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Home My WebLink AboutA024 - Council Action Form dated February 10, 2009 ITEM #: Al-G DATE: 02/10/09 COUNCIL ACTION FORM SUBJECT: REQUEST FOR PRIOR APPROVAL OF URBAN REVITALIZATION TAX EXEMPTION FOR PROPERTY LOCATED AT 116 WELCH AVENUE BACKGROUND: Campustown Acquisitions has recently proposed removing the existing buildings at 116- 120 Welch Avenue and constructing a multiple-use building. The developer is requesting prior approval for a 3-year, 100%tax exemption on the increased value in the Campustown Urban Revitalization Area (see letter attached).The expected construction cost or increase in taxable property value for the project are not known at this time. Without prior approval,the property owner would be taking substantial risk to proceed with a project expecting to receive property tax abatement without knowing if the City Council would agree that the project meets the criteria set by the Campustown Urban Revitalization Plan. A future City Council could modify the Campustown Urban Revitalization Plan and change the criteria before the project was completed. Therefore, Chapter 404.4 of the Code of Iowa provides for prior approval of eligibility, by resolution approved by the City Council. Furthermore the Code of Iowa states that the City "shall, by resolution, give its prior approval for an improvement project if the project is in conformance with the plan for revitalization developed by the city or county." However, the Code of Iowa does not mandate a time frame for approval. The attached concept plan document describes a five-story building, with about 2,200 square feet of commercial space on the ground floor, with enclosed parking making up the rest of the ground floor. The upper four floors would contain 28 residential units,with a total of about 88 bedrooms. An access drive and fire lane would extend along the south property line, which also provides access for the property to the south. A five-to ten-foot separation from the north property line may be provided. A ten-foot setback is required on the east property line. The west wall of the ground floor of the building would be on the Welch Avenue property line. Above the second floor, the west wall of the building would step back 15 feet from the Welch Avenue property line, as required by the zoning code. There are several unresolved issues with the site development, such as the relationship between setbacks and penetrations in the building walls, access to the electrical transformer, existing easements, and a possible grade elevation difference between proposed enclosed parking and the existing parking lot on the property to the south. The developer intends to meet the Parking and Mixed Use required criteria and the Design Standards criteria (see matrix attached). No parking is required for the commercial use in this zoning district. Required parking for 28 residential units is 28 parking spaces. Enclosed parking is provided for 20 spaces, which meets the 70% required by the criteria. (The remaining required parking is provided in the Legacy Tower to the east, which has parking beyond its requirement.) The uses shown in the building meet the mixed use criteria. The attached drawings show that the design criterion for pedestrian access directly from the street is met. Compliance for the signage criterion would be confirmed at the time a sign permit is requested. The criteria require that 100% of the street facing exterior facade and 80% of the three remaining exterior facades have clay brick facing for the first four stories. Only the elevation for the front facade has been submitted and it meets the brick material criteria. The City has not yet received the architectural elevation drawings for the three remaining exterior facades. Since the approval of the current Campustown Urban Revitalization Plan in 2006,the City has gained more experience with the on-going impacts of the larger residential buildings in the area and the management of those impacts. Many of these impacts are related to the safety and security of the public and the residents. The Police Chief reports that maintaining safety and security has required more City resources than expected or than other high density residential areas. Based on this experience, staff concludes that the following additional design requirements could reduce these impacts, improve safety and security, and perhaps reduce required City resources: 1. prohibit commercial space on the top floor, reducing public access to the whole building 2. reduce shared common areas that the public can access 3. location and design of entrances and access control to minimize risk 4. prohibit all balconies 5. natural daylight requirements of applicable codes be achieved with exteriorwindows 6. fixed windows only facing the street 7. install windows that the building owner can lock and the tenants can't unlock 8. exterior glass for interior stairwells 9. security measures for separations between buildings 10.increase capacity of fire exits These measures could be included in the building and zoning code requirements, and be mandatory for all construction in the Campustown Service Center zoning district. A voluntary and less restrictive approach would be to require them only for those projects for which tax abatement is granted. This would be accomplished by an amendment to the Campustown Urban Revitalization Plan. The City Council could consider amending the Plan through the following process: At this time the City Council would direct staff to prepare the Plan amendments and by resolution also set a date for a public hearing on the Plan amendments. Required notice would be given to the public and to property owners in the Campustown Urban Revitalization Area. Then the City Council would conduct a public hearing on the amendments. At the same meeting, the City Council could by resolution approve amendments to the Plan. Approved amendments to the Plan would apply to all future tax abatement projects in the Campustown Urban Revitalization Area. If the City Council delays action on the request for prior approval of tax abatement for 116 Welch until after it amends the Campustown Urban Revitalization Plan, then that project would also have to comply with those amendments. 2 ALTERNATIVES: 1. The City Council can a. direct staff to prepare amendments to the Campustown Urban Revitalization Plan; and b. set a date of February 24, 2009 for a public hearing for approval of the amendments; and c. defer consideration of prior approval of tax abatement for 116-120 Welch Avenue until after action on the amendments and a complete application for prior approval of tax abatement is received. Under this alternative, the amendments to the current criteria for tax abatement under the Campustown Urban Revitalization Plan will apply to this project. 2. The City Council can approve eligibility for urban revitalization tax abatement for property located at 116-120 Welch Avenue under the following conditions: a. the structure shall fully conform to the attached development plan, consisting of: i. Site Plan dated 12-22-08 ii. All Schematic Elevations documenting compliance with the criteria for tax abatement iii. First Floor Plan — Option 2 dated 1-19-09 iv. Second floor Plan dated 12-22-08 v. Third — Fifth Floor Plan dated 12-22-08 b. the entire project shall be completed in conformity to an approved Minor Site Development Plan and all other requirements of the Ames Municipal Code. Under this alternative, any amendments to the current criteria for tax abatement under the Campustown Urban Revitalization Plan will not apply to this project. 3. The City Council can deny prior approval for urban revitalization tax abatement for property located at 116-120 Welch Avenue, if it finds that the project as proposed does not conform to the current criteria for tax abatement under the Campustown Urban Revitalization Plan. 4. The City Council can refer the request to staff for further information. MANAGER'S RECOMMENDED ACTION: If the City finds that a completed project, or a proposed project for which prior approval is requested, meets the requirements of an Urban Revitalization Plan, it must approve that project for tax abatement. Staff does not have enough information to make a recommendation on whether the Plan requirement will be met. In addition,the City Council should remember that State law does not mandate a time frame for that decision, even if all of the information is provided. 3 A benefit of delaying this request for prior approval and considering amendments to the Campustown Urban Revitalization Plan is that the City may be able to reduce public risk and better protect public resources for projects that seek public incentives. Therefore,the City Manager recommends that the City Council: a. direct staff to prepare amendments to the Campustown Urban Revitalization Plan as described above; and b. set a date of February 24, 2009 for public hearing for approval of the amendments; and c. defer consideration of prior approval of tax abatement for 116-120 Welch Avenue until after action on the amendments and a complete application for prior approval of tax abatement is received. This recommendation allows the City to consider changes to this incentive program that would apply equally to all future projects in Campustown seeking tax abatement. It will also give the applicant the opportunity to provide further information needed to demonstrate compliance with the Campustown Urban Revitalization Plan. 4 Request for Prior Approval of Tax Abatement 23�'!I North AVC, 116—120 Welch Ave. Chicago,I!60647 Ames, Iowa 50014 Ph-312.278.6937 Jeff Benson,Planner Department of Planning and Housing Room 214,City Hall 515 Clark Ave. Ames,IA 50010 Ph.515.239.5400 I January 15,2009 II Mr.Benson, I kindly request consideration for'Prior Approval'of a Tax Abatement through the University Area Urban Revitalization Program for our proposed site development at 116-120 Welch Ave. Campus Acquisitions files the request under the Campustown Criteria Matrix through the Parking and Mixed Use categories. The proposed development will have ground floor retail and parking in a structured garage with residential units above on floors 2 through 5.The proposed development intends to meet the criteria for design standards as listed in the matrix. The development will have building signage per design guidelines as well as 100%brick on the front fagade as indicated by the concept elevation. � 'I The fire department has preliminarily approved our proposed access to our site development. Campus Acquisitions will continue to work with City of Ames engineers to achieve a mutually acceptable resolution with respect to electrical transformers,site grading issues as well as shared easement access. I i I am readily available to answer any questions you have with respect to our proposed I development at 116-120 Welch Ave.I look forward to working with the City of Ames to achieve a high quality building that we both can be proud of. 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LU Jo a N m LQI Q H1HON W — m 173fONd m o N Q =W en m N Q N CV m cm r =MM CD Q� N N M�M —1Ll N Lll + C Z ell) CV J r� � 0 0 L O CL. - LL f t e � F JJ s CAFAPPROVAL SS BK SL DM JP To be sent to: J.J. Smith Campus Acquisitions 2234 W. North Avenue Chicago, Illinois 60647