HomeMy WebLinkAboutA012 - Council Action form dated December 13, 2005 ITEM#: R
DATE: 12/13/05
COUNCIL ACTION FORM
SUBJECT: AMENDMENT OF THE SOUTH LINCOLN URBAN REVITALIZATION PLAN
On April 7, 2005, Mr. Tom Randall requested that the City Council consider his request for
tax abatement under the City's Urban Revitalization Program for a new real estate office
constructed in 2004 and 2005 at 207 South Third Street, within the South Lincoln
Neighborhood. Mr. Randall cites the need for such an incentive to help overcome the
difficulties in developing commercial uses here, especially on a single lot. Because the
project does not meet the eligibility criteria established by the South Lincoln Urban
Revitalization Plan, approving this request would entail revising that Plan. The City Council
could do that by resolution after a public hearing on the plan amendments.
On November 22, 2005, the City Council set this public hearing date to consider adding
optional eligibility criteria for projects that provide commercial space within a "Key
Redevelopment Site" in the South Lincoln Urban Revitalization Area, and reducing the
minimum square footage required to 1,500 square feet.
BACKGROUND:
The new real estate office at 207 South Third Street is one of two commercial uses
established in the South Lincoln Neighborhood since the area became a mixed-use district.
This development follows these City Council actions to establish commercial use in this
neighborhood:
• August 1997 - approval of the City's Land Use Policy Plan
• April 2002 - approval of the Sub-Area Plan for the South Lincoln Neighborhood
• May 2003 - approval of zoning text amendment and rezoning to create the South
Lincoln Mixed Use District with commercial uses and mandatory design standards
• August 2003 - approval of the South Lincoln Urban Revitalization Plan and Area
(see original Plan attached)
From the time the Land Use Policy Plan was approved, it has been the City Council's goal
that this neighborhood offer commercial development opportunities in a way that is
compatible with the existing attractive characteristics of that neighborhood. That is to be
accomplished through development of a mixture of residential and commercial uses and of
attractive and useful public spaces. These are all to incorporate design elements that are
consistent with the neighborhood character and that together reinforce the identity of this
neighborhood. A set of mandatory design standards is one tool accomplishing this.
Physical features built by the City through its on-going capital improvements program are
another tool. Tax abatement to encourage the private sector to develop mixed-use
projects and/or incorporate certain physical features into redevelopment projects is still
another tool.
Existing Criteria for Tax Abatement. According to the Sub-Area Plan, the central core
area of this neighborhood is generally under utilized and thus qualifies as an Urban
Revitalization Area under Section 404 of the Code of Iowa. The South Lincoln Criteria
Matrix, which is part of the attached Plan, states that a project must meet one of the
following criteria to be eligible for tax abatement:
• Developing ground floor commercial space along with a residential project. The criteria
require less commercial space in areas the Plan identifies as "Key Redevelopment
Sites" because commercial concentration at these locations provides the greatest
public benefit. or
• Providing space for, constructing, and providing public access to activity nodes or
recreation sites at locations identified in the Sub-Area Plan. The criteria also require
larger activity nodes in conjunction with larger development projects, because more
space should be available and the owner receives a larger tax benefit.
Eligible projects can choose from a three-year abatement period, a five-year abatement
period, or a ten-year abatement period with different abatement schedules for each time
period.
Added Criteria for Tax Abatement.
The attached revised criteria matrix (Attachment D) contains the proposed change to the
Plan, in the first optional criterion (second column from left). This change removes the
original requirement that the commercial space must be in a mixed-use project. This would
make eligible any project where commercial use is the only use provided. Also, the
revision lowers the minimum requirement for 2,000 square feet of commercial space to a
minimum of 1,500 square feet.
An advantage of this approach is that it might stimulate more commercial development in
an area the Sub-Plan identifies as an important location for commercial activity. Although
commercial use has been allowed here for two years, few projects have been
implemented. This would be similar to the Urban Revitalization Areas in Somerset, where
the City Council has identified a need and public benefit to encourage commercial land use
in a specific area.
A disadvantage of this approach is that it might be seen as inequitable by owners of other
nearby commercial property, in giving an advantage to redevelop in one commercial
corridor over another.
2
ALTERNATIVES:
1. The City Council can approve the resolution amending the South Lincoln Urban
Revitalization Plan to add optional eligibility criteria for projects that provide commercial
space within a "Key Redevelopment Site" in the South Lincoln Urban Revitalization
Area, and reduce the minimum square footage required to 1,500 square feet.
2. The City Council can deny approval of the resolution amending the South Lincoln
Urban Revitalization Plan to add optional eligibility criteria for projects that provide
commercial space within a "Key Redevelopment Site" in the South Lincoln Urban
Revitalization Area, and reduce the minimum square footage required to 1,500 square
feet.
3. The City Council can refer this request back to staff and/or the applicant for additional
information.
MANAGER'S RECOMMENDED ACTION:
The vision behind the sub-area plan for the South Lincoln Neighborhood is an area with the
vitality of integrated land uses, lively spaces that encourage social activity and strong
connections to the rest of the community. The City's land use policy encourages
redevelopment with diverse and more intense land uses, while encouraging a sense of
place. Such an area just a few steps away from the Main Street Cultural District can
certainly enhance our urban core.
The mandatory development standards, well illustrated by the new real estate office,
combined with other elements of the sub-area plan may perhaps make developing in the
South Lincoln Neighborhood somewhat of a challenge for some. As was true in Somerset,
early success is important in order to attract commercial businesses.
It is the recommendation of the City Manager that the City Council adopt Alternative
#1. This would amend the South Lincoln Urban Revitalization Plan to add an optional
eligibility criterion for projects that provide commercial space within a"Key Redevelopment
Site" in the South Lincoln Urban Revitalization Area, and reduce the minimum square
footage required to 1,500 square feet. This will help encourage commercial development
in concentrated locations near key intersections of cars, busses, bicycles, and pedestrians,
one way to achieve the City's vision for this neighborhood.
Attachment
3
CITY OF AMES
URBAN REVITALIZATION PLAN
For
SOUTH LINCOLN URBAN REVITALIZATION
AREA
ADOPTED BY AMES CITY COUNCIL
Resolution No. 03-347
August 26, 2003
URBAN REVITALIZATION PLAN
South Lincoln Neighborhood
1. Property Address: See Attachment A. (Which is not attached)
2. Legal Description: See Attachment B (Two pages, graphics and description).
3. Assessed Valuation: Land: See Attachment A. Buildings: See Attachment A.
4. Owners: Name: See Attachment A. Address: See Attachment A.
5. Zoning District and Classification: S-SMD (South Lincoln Mixed Use District).
6. City Services: No enhancements are planned.
7. Applicability of Revitalization: Revitalization shall be applicable only to that subset
of eligible property within the above legal description that qualifies under the Urban
Revitalization South Lincoln Criteria Matrix. See Attachment C.
8. Duration: There is no end date.
9. Relocation: The plan does not require the displacement of any persons, and there
will be no relocation benefits provided.
10. Percent Increase in Value Required: The value-added requirement is a five (5)
percent increase in actual value.
11. Federal, State, or Private Grant/Loan Programs for Residential Improvements: There
are no grants or loans.
12. Existing Land Use: See Attachment A**.
13. Geocode: See Attachment A.
14. Tax Exemption Schedule: The exemption period is for three(3) years, five(5) years,
or ten(10) years. All qualified real estate is eligible for tax exemption of the value
added by the improvements according to the terms of the exemption selected. The
overall improvement value to the property will need to be at least 105% of the
current assessed value to qualify for the program. See Attachment D.
**(c-10, r-70, etc.) refer to the City Assessor's land use codes.
Attachment B-1
Urban Revitalization Plan
South Lincoln Neighborhood
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QSouth Lincoln Urban Revitalization Area �T
® Key Redevelopment Sites Key Redevelopment Sites, Activity Nodes and W'r E
Recreation Sites locations shown are approximate.
Activity Nodes See South Lincoln Sub-Area Plan for location S
information.
I Recreation Sites Map prepared August 20, 2003 by the Department of Planning and Housing
Attachment B-2
URBAN REVITALIZATION PLAN
Legal Description
for the South Lincoln Urban Revitalization Area
Commencing at the northwest corner of Lot 6, Cayler's Second Addition, Ames,
Iowa; thence south along the west line of said Cayler's Second Addition, 392.3
feet; thence west along the centerline of South 4th Street extended east, 298.2
feet; thence north 212.7 feet; thence west 182.73 feet to the northeast corner of
Lot 8, Cayler's Subdivision, Ames, Iowa; thence south 180 feet to the southeast
corner of said Lot 8; thence continuing south 33 feet along the east right-of-way
line of South 0' Street to the centerline of South 4th Street; thence west 98.67
feet along said centerline; thence south 217 feet to the north line of Lot 3,
Lindholm's Addition, Ames, Iowa; thence west along the north line of Lots 3, 2,
and 1, Lindholm's Addition to the northwest corner of said Lot 1; thence
continuing west along the south line of Lots 8, 9, and 10 of Clark's Subdivision,
Ames, Iowa, to the southwest corner of said Lot 10; thence west to the east line
of Lot 5 in the NW % of Section 11, T. 83 N., R. 24 W., Ames, Iowa; thence south
along said line to a point 60 feet north of the southeast corner of said Lot 5;
thence west 180 feet to the east line of Lot 5, Cooper's Subdivision, Ames, Iowa;
thence north along the east line of said Lot 5 to the southeast corner of Lot 4,
Cooper's Second Subdivision, Ames, Iowa; thence continuing north along the
east line of said Lot 4, 180 feet to the northeast corner of said Lot 4; thence north
66 feet to the south line of Lot 3, in the NW % of Section 11, T. 83 N., R. 24 W.,
Ames, Iowa; thence west to the southwest corner of vacated alley (a.k.a. the
southeast corner of Part Lot 3 in the NW '/4 of Section 11, T. 83 N., R. 24 W.,
Ames, Iowa); thence north 120 feet; thence west 60 feet; thence north 150.6 feet
to the south right-of-way line of South 3rd Street; thence northeasterly 84.5 feet
along the south right-of-way line of South 3`d Street to the east line of Lot 1 ,
Black's 4th Addition, Ames, Iowa; thence north across South 3rd Street right-of-
way to the southwest corner of Lot 16, Black's 2"d Addition, Ames, Iowa; thence
north 180 feet along the west line of Lots 16, 13, and 12 of Black's 2"d Addition,
Ames, Iowa to the northwest corner of said Lot 12; thence east along the north
line of said Lot 12, 180 feet to the northeast corner of said Lot 12; thence north
281.5 feet along the east line of Lots 9, 8, 5, 4, and 1 of Black's 2"d Addition,
Ames, Iowa, to the northeast corner of said Lot 1; thence north 66 feet across
South 2nd Street right-of-way, extended west, to the southeast corner of Lot 12,
Black's 3rd Addition, Ames, Iowa; thence north along the east line of Lots 12, 9,
and 8 of Black's 3rd Addition, Ames, Iowa, to the northeast corner of said Lot 8;
thence continuing north 10 feet to the centerline of the east/west alley in Block A,
Black's 3rd Addition, Ames, Iowa; thence east along the centerline of said alley to
the centerline of the South Walnut Avenue right-of-way; thence continuing east
along the centerline of the east/west alley in Block 4, Isaac Black's Addition,
Ames, Iowa, to the centerline of South Washington Avenue right-of-way; thence
south to the centerline of the east/west alley in Block 3, Isaac Black's Addition,
Ames, Iowa, extended west; thence east along the centerline of said alley to the
centerline of South Kellogg Avenue; thence north along the centerline of South
Kellogg Avenue to the centerline of the east/west alley of Block 2, Isaac Black's
Addition, Ames, Iowa, extended west; thence east along the centerline of said
east/west alley to the centerline of South Sherman Avenue; thence south along
the centerline of South Sherman Avenue to the centerline of South 3rd Street;
thence east along the centerline of South 3rd Street to the point where said
centerline intersects the east line of Clark's Subdivision, Ames, Iowa, extended
north; thence south to the point of beginning, as shown on Attachment B-1 .
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Attachment D
URBAN REVITALIZATION PLAN
South Lincoln Neighborhood
Tax Exemption Schedule
All qualified real estate located in the designated South Lincoln Urban Revitalization
Area is eligible to receive a partial exemption from taxation on the Actual Value added by
the improvements as specified by the schedules below. Any qualified real estate may
elect one of the three schedules.
The exemption period for ten (10) years. The amount of the partial exemption is
equal to a percent of the Actual Value added by the improvements, determined as
follows:
For the first year, 80%
second 70%
third 60%
fourth 50%
fifth 40%
sixth 40%
seventh 30%
eighth 30%
ninth 20%
tenth 20%
The exemption period for five (5) years.
For the first year, 100%
second 80%
third 60%
fourth 40%
fifth 20%
The exemption period for three (3) years. All qualified real estate is eligible to receive
a 100% exemption on the Actual Value added by the improvements for each of the three
years.
Carefully examine the exemption schedules before making a selection. Once the
selection of the schedule is made and the exemption is granted the owner is not
permitted to change the method of exemption.
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