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HomeMy WebLinkAboutA002 - Council Action form dated April 8, 2003 ITEM #_ DATE : April 8 2003 COUNCIL ACTION FORM SUBJECT: DETERMINATION THAT THE REQUEST FOR DESIGNATION OF URBAN REVITALIZATION AREA FOR 121 BEACH AVENUE MEETS THE CRITERIA FOR ELIGIBILITY PUBLIC HEARING FOR THE MULTIPLE I APPROVAL OF REQUEST FOR LY RESIDENTIAL MATRIX AND SETTING THE DATEE OF OF DESIGNATION OF URBAN REVITALIZATION AREA. BACKGROUND: The applicant, Armstrong Properties LLC has submitted a Request for Designation of Urban Revitalization Area for 121 Beach Avenue under the Multiple Family Residential Matrix. (see attached request). ANALYSIS: Staff has determined that the request was complete and the information submitted is correct. The owner has submitted a site plan that will be approved once the platting process is completed. The site plan shows a three-story condominium building with 20 units, and 61 parking stalls being provided. Currently there are no structures on the property. 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, the roll back is the current percentage and 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: Tax rate/$1,000 Valuation = $30.85983 Rollback Percentage = 51 .3874% Estimated Value of new building $2,000,000 Rollback Value of new building $1 ,027,745 Existing Land Value $ 442,000 Rollback Land Value $ 227,132 Existing Land Taxes Paid $13,642 Post Rollback Land Taxes Paid $ 7,005 -1 - Yearly tax revenue on proposed project with no tax abatement: $31,716 Yearly tax revenue on land on proposed project: $7,005 No tax exemption over a 10-year period (Land and Improvements) $387,212 Taxes Exempted Per Schedule Taxes Paid Over 10-Year Period 3 — year $95,148 $ 292,052 5 — year $95,148 $292,062 10 — year $139,550 $247,660 Required Conditions The Criteria for Eligibility under the Multiple Family Residential Matrix (See attached sheet), mandates that the property must display one of two required conditions before it can be determined that the property is eligible to be considered further. These two threshold conditions are: - A slum and blighted condition, or; - An underutilized condition. The applicant has indicated that the site is underutilized in its present condition. For meeting the underutilized portion of the matrix there are three different possibilities: Properties that are vacant in an in-fill area and were previously developed and have had the principal structure removed. Properties that are non-conforming with respect to the base zone must be brought into conformance. Properties that are non-conforming with respect to the flood way fringe must be brought into conformance with applicable flood plain regulations. The applicant addresses the first condition "Properties that are vacant in an in-fill area and were previously developed and have had the principal structure removed". The applicant indicates the property is vacant with 4 houses being removed from the property, one in 1970 and three in 1999. City staff believes the applicant has met the requirement that the properties are vacant and one of the principal structures has been removed. Having met one of the two required conditions the applicant needs to meet one of the optional conditions. 2 Optional Conditions Under the optional requirements of the Multiple Family Residential Matrix there are three options: Structured Parking: A minimum of 70% of the total required parking is provided in a structure. Brick Construction or Similar Masonry Material: 100% of the street face and 50% of the sides of the structure shall be masonry material or Alternative Siding Material; and Landscaping Beyond Required-Landscaping improvements installed at 150% of the required landscaping standard or greater. Affordable Housing and Availability of Affordable Units The applicant addresses the following two alternatives under the first option: Brick or Similar Masonry Material, and Landscaping Beyond Required. The building drawings indicate that the front of the building facing Beach Avenue is 100% brick construction, the south side facing Sunset Drive is 100% brick construction. Both the west side and north sides of the building are proposed to be finished with horizontal steel lap siding. The intent is to have more brick facing the street sides on the corner lot. To the north of the building is an existing, two-story apartment buildings that will somewhat obscure the north portion of the proposed building. (See attached picture). The applicant has indicated that they are attempting to meet the intent of the optional condition by providing the equivalent of 50% of the sides of the building with brick construction by providing 100% on the Sunset Avenue side. The intent of the applicant is to provide a better aesthetic building fagade along the street faces of the building. The site plan shows that the applicant is meeting the 150% of the required landscaping standard. City staff has determined that although the applicant doesn't meet the Optional Condition of having 50% of the sides of the building be of brick or masonry material the intent of the Optional Condition is being met and in this situation offers a good alternative with 100% of the brick construction along both street faces. The optional condition of 150% of the required landscaping is also being met. ALTERNATIVES: 1. The City Council can determine that the request for designation of an urban revitalization area for 121 Beach Avenue meets the criteria for eligibility and direct staff to prepare an urban revitalization plan for this area. 2. The City Council can determine that the request for designation of an urban revitalization area for 121 Beach Avenue meets the criteria for eligibility only if the proposal is changed to indicate that one half of the north side of the building is of brick or masonry material and direct staff to prepare an urban revitalization plan for this area. -3- 3. The City Council can determine that the request for designation of an urban revitalization area for 121 Beach Avenue does not meet the criteria for eligibility. 4. The City Council can refer this request back to staff and/or the applicant for additional information. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt alternative #1. This will approve the determination that the property at 121 Beach Avenue meets the criteria for eligibility as an Urban Revitalization Area and will direct that an Urban Revitalization Plan be prepared for this area. A public hearing will be scheduled for May 13, 2003 for the designation of this revitalization area. COUNCIL ACTION: -4- ARMSTRONG PROPERTIES LLC 54643 282ND STREET-AMES-IOWA 50010 y Phone(515)296-1933 Fix(515)579,3811 Mobile(515)291-5483 December 23, 2002 Mark Reinig, Economic Development Coordinator Department of Planning and Housing Room 214, City Hall 515 Clark Street Ames, IA 50010 Re. REQUEST for URBAN REVITALIZATION DESIGNATION Dear Mark: Enclosed please find our application for the condominium project at Beach and Sunset. We are very excited about the opportunities this program offers for improving the appearance of the proposed building. In that we hope to begin construction as soon as possible with occupancy planned for August 1, 2003, we are prepared to work closely with you to quickly get a determination of eligibility. If you need anything further or wish to discuss the project,please contact either Jon or myself at your convenience. Thank you. Very truly yours, William Armstrong enclosures REQUEST for DESIGNATION of URBAN REVITALIZATION AREA For SUNSET BEACH CONDOMINIUMS Beach Avenue & Sunset Drive Ames, Iowa 20 Unit Rental Condominium Prepared by: Jon Chester William Armstrong 54643 282"d Street Ames, IA 50010 515.597.3810 REQUEST for DESIGNATION of URBAN REVITALIZATION AREA for SUNSET BEACH CONDOMINIUMS TABLE OF CONTENTS A. PROJECT DESCRIPTION B. APPLICATION FORM C. CRITERIA FOR ELIGIBILITY D. PROJECT SITE PLAN WITH BUILDING ELEVATIONS A. PROJECT DESCRIPTION PROJECT: Sunset Beach Condominiums, located at Beach Avenue and Sunset Drive, Ames, Iowa, will consist of 20 luxury rental 0911 , condominium units, some with balconies and - lofts. The design includes a total of 48 bedrooms with 38 standard and oversized bathrooms. Consistent with the high profile c, location,the building's exterior design will use masonry construction on the Beach and Sunset elevations. Under-building parking will be ss provided on two elevations. Extensive landscaping is planned to complement the exterior of the building. It is the Developer's SUNSET DR r intention to qualify this project for the Urban Revitalization Program and receive tax abatement based on the assessed value of the improvements. The project will be constructed on five lots that,during the course of the work,will be reconfigured as two parcels through the minor subdivision process. Access to parking will be from both Beach Avenue and Sunset Drive. BUILDING: A 23,000 square feet,three-story wood frame building is planned. Highlights of the design include a brick exterior on street facing elevations; first floor handicap accessibility; oversized bed and bath rooms; full kitchens and appliances;washer/dryers in each unit; and under-building parking. Unit Mix: One Bedroom designed for 2 tenants 5 -- Two Bedroom designed for 3 tenants 4 Three Bedroom designed for 4 tenants 9 Four Bedroom designed for 5 tenants 2 Total Units: 20 Parking: A total of 60 parking spaces,including 24 reserved under-building stalls,will be provided. Utilities: The landlord will provide gas heat and garbage pick-up while tenants pay electric and sewer-water charges directly to the Ames Utility Department. Appliances: A stove, refrigerator, dishwasher, sink-disposal, - microwave-vent combination,and a washer/dryer will be furnished r' with each unit. SITE: Located on the east side of Beach Street across from the k_ Fisher Theater and Stephens Auditorium of the Iowa State Center; the site area approximates 36,833 square feet.This photo from the southeast confirms that the site is underutilized vacant ground. -_ ZONING: The site is located in a High Density Residential area of the University Impacted District Overlay(represented by the hash marks on the insert).Near the Campus Town Service Center zone as well as the university(government zone),the Sunset and Beach site is ideally located to serve those seeking an apartment near the campus,the Greek system,and Ames's premier sports and entertainment complex,as well as campus town merchants. tr �Y4,610? 0904450 0904475000 0903350000 0904375000 , 0 S-GA ,f 97.�5Q1(b F 091D10DQDD rn Sunset and Beach site 0 cn a � m m z rn PART B. REQUEST for DESIGNATION of URBAN REVITALIZATION AREA Application Farm 1. Property Address: 119, 121, & 125 Beach and 2013 & 2017 Sunset, Ames, Iowa 50014 2. Property Identification Number(Geocode): 09-09-226-070; 09-09-226-080; 09-09-226- 090; 09-09-226-110; & 09-09-226-110 3. Legal Description: The five lots for which the codes are listed above are being replatted into a single parcel. Please see the site plan for the current legal description of the five lots. 4. Street Address of the properties to be included in the Urban Revitralization Area: 119,121, & 125 Beach and 2013 &2017 Sunset, Ames, Iowa 50014 5. Property Owner: Jon H. Chester and William Armstrong 54643 282°d Street Ames, IA 50010 515.597.3810 or 515.296.1933 6. Contact Persons: Jon H. Chester or William Armstrong 54643 282"d Street Ames, IA 50010 515.597.3810 or 515.296.1933 waaga iastate.edu I certify that I have submitted all the required information to apply for approval or the Request for Designation,of Urban Reviit lization Area and that the information is factual. F' Signed by: Date: 12-23-02 C. CRITERIA for ELEGIBILITY Multiple Family Residential Criteria Matrix Required Criteria Slum and Blighted It is my understanding that this site was approved for urban revitalization as part of a project(now abandoned)for construction of a nine-story complex.At that time there were two or three single family houses on the property—all in very poor condition and likely substantially unsafe for human habitation.The previous developer removed these structures, but failed to properly remove and cap the utility extensions serving these buildings. While the building structures have been removed,to assure safe use of the property,the work of removing abandoned utility lines and properly capping the extensions at the street must be completed. Underutilized The property, vacant land serving only as a collection point for wind-blown trash, is located among multifamily apartments and Greek houses. The two principle performing arts building of the Iowa State Center are directly east of the property. This property is the classic definition of"underutilized."The project contemplated for this parcel is fully in conformance with the requirement of its current RH university overlay zoning. It is not in a flood way or flood way fringe area. Optional Criteria Brick or Similar Material and Additional Landscaping This development parcel is at the corner of Beach Avenue and Sunset Street. The primary entrance elevation will face Beach Avenue. A no-entrance elevation will face Sunset Street. Siding material proposed for both of the street facing elevations is 100%masonry. The masonry is planned to rap the north facing non-street elevation. The percent of masonry on the north elevation is yet to be determined. Due to load bearing limits associated with the need to provide access to under-building parking, no masonry is planned for the facade of west elevation of the building facing the parking lot. The amount of masonry will be substantially equivalent to the amount on 100% of one street facing and 50% of two side elevations of a conventional non- corner lot. Landscaping at 150% of the standard required is contemplated, as well. This property is not in an historic district. Structural Parking The design standard for this zone calls for 1.25 parking stalls per bedroom. For the planned 48 bedrooms 60 stalls are included in the design: 47 standard, 10 compact, and 3 ADA(handicapped)stalls. Of these parking places 20,including all ofthe ADA spaces are in a structure, 7 accessed from the Beach entrance and 13 from the Sunset accessed parking lot at the rear of the building. The in-structure parking constitutes 33% of the total parking required. Affordable Housing It is the expectation of the developer that, due to the location of the site in close proximity to the university and the Iowa State Center,most Sunset Beach tenants will be ISU upper-class and graduate students. Moderate and low-income families with children and the elderly are unlikely to show interest in living near the university in the midst of the Greek system properties. Under these realities, attempting to qualify a portion of the project as HUD affordable housing is not planned. Multiple Family Residential Criteria Summary This vacant in-fill parcel is underutilized and constitutes a blight on the neighborhood,especially given the incomplete demolition of several houses by the previous developer. To revitalize the property,we propose to construct a condominium with a 100%masonry facade on the two street facing elevations, some masonry on the north-side facade, but no masonry on the back, west-facing elevation. 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