HomeMy WebLinkAboutA004 - Council Action Form dated November 8, 2005 r ,
ITEM #: a6b Lc,
DATE: 11/08/05
COUNCIL ACTION FORM
SUBJECT: REZONING OF PROPERTY, GENERALLY LOCATED NORTHEAST AND
SOUTHEAST OF THE INTERSTATE 35 AND EAST 13TH STREET INTERCHANGE,
FROM A (AGRICULTURAL) AND PI (PLANNED INDUSTRIAL) TO PRC (PLANNED
REGIONAL COMMERCIAL) AND 0-GNE (NORTHEAST GATEWAY OVERLAY)
DISTRICT
BACKGROUND:
New Application for Rezoning. The developer has withdrawn the previous request for
rezoning and has submitted a new application. The new application requests that the City
Council rezone all of the property at this time. This varies from the previous rezoning
request in that the previous application gave the option of rezoning only the land north of
East 13`�' Street, only the land south of East 13"' Street, or the land on both and north and
south sides of East 13t' Street. The new application includes all of the land as one
rezoning proposal. Please note that this Council Action Form has the same content
as the Action Form for the previous rezoning request, except for the paragraph
above and the section entitled, "ALTERNATIVES."
Applicant Rezoning Request. Wolford Development Options, LLC, prepared and
submitted the request for the proposed rezoning. This is the next step in the process to
develop the land area, generally located in the northeast and southeast quadrants of the
Interstate 35 and East 13t' Street interchange, as a regional commercial center. The
request is to rezone the subject property, as follows:
• Rezone approximately 160.76 acres of land from A (Agricultural) to PRC (Planned
Regional Commercial). This land is generally located northeast of Interstate 35 and
East 13t' Street.
• Rezone approximately 65.27 acres of land from A (Agricultural) to PRC (Planned
Regional Commercial), and approximately 96.61 acres from P1 (Planned Industrial) to
PRC (Planned Regional Commercial). This land is generally located southeast of
Interstate 35 and East 13t' Street.
In addition, it is proposed that if the property in question is rezoned to PRC, the O-GNE
(Northeast Gateway Overlay) District would also be applied.
Previous Approvals. Previous approvals for the subject property include the following:
• On January 27, 2004, the City Council approved Resolution No. 04-024, approving the
request to move the existing location of the Regional Commercial land use designation
from the northeast corner of the Interstate 35 and U.S. Highway 30 interchange to the
northeast and southeast quadrants of the Interstate 35 and East 13�'Street interchange.
The staff report to the City Council, dated.January 13, 2004, is available on the
City's web site at: http://www.city.ames.ia.uslhousingwebiCurrent/current.htm.
• On May 25, 2004, the City Council approved Resolution No. 04-229, approving the
voluntary annexation of the subject property.
The staff report to the City Council, dated May 11, 2004, is available on the City's
web site at: http://www.city.ames.1a.uslhousingweb/Current/current.htm.
On February 8, 2005, the City Council approved Ordinance No. 3818, adopting Section
29.1109 of the Municipal Code. This action established zoning regulations, including
design guidelines and standards for the O-GNE (Northeast Gateway Overlay) District.
This overlay zoning designation is to be applied to the subject property as rezoning to
PRC (Planned Regional Commercial) is adopted.
Section 29.1109 of the Municipal Code is available on the City's web site at:
http://www.city.ames.ia.us/attorneyweb/pdfs/Chap29A11.pdf.
Ownership, Location, and Size of Land Area Proposed for Rezoning. The land area
proposed for rezoning is generally located northeast and southeast of the Interstate 35 and
East 13"' Street interchange.The subject property includes a total of approximately 322.64
acres (see attached Rezoning Map). The parcels of land included in the proposal for
rezoning are summarized as follows:
Land Owner Location Acres % of Total Current Zoning
Cecil Rueter, Todd Rueter, NW %, ° A
& Kim Rueter Co. North of 59.72 18.51 /o (Agricultural)
East 13 St.
Patrick T. Payer Irrevocable NE % A
Trust North of 40.02 12.40% (Agricultural)
& Christine A. Hunziker East 13t'' St.
Patrick T. Payer Irrevocable SE % A
Trust North of 39.90 12.37% (Agricultural)
& Christine A. Hunziker East 13"' St.
W 2/3 PI
Barilla America, Inc. South of 96.61 29.94% (Planned Industrial)
East 130' St.
E 1/3 A
Barilla America, Inc. South of 55.18 17.10% (Agricultural)
East 13'h St.
Interstate 35 Right-of--Way I-35 r.o.w. ANorth of 21.12 6.55% (Agricultural)
United States Government North
13t' St.
Interstate 35 Right-of-Way -35 r.o.w. ASouth of 10.09 3.13% {Agricultural}
United States Government South
13`� St.
Total 322.64 100%
See attached rezoning plat document and legal description.
2
Jurisdiction, Land Use, Zoning, and LUPP Designation. The following table is an
analysis of the subject area in terms of its relationship to adjacent land uses, existing
zoning, and LUPP Map designations.
NORTHWEST NORTH NORTHEAST
Jurisdiction: Ames Jurisdiction: Story County Jurisdiction: Story County
Land Use: Interstate 35 Land Use: Crop Production Land Use: Crop Production
Veterinary Ketelsen Marsh
Research
Existing Government/ Existing Agricultural (AII) Existing Agricultural (Al)
Zoning: Airport(G-A) Zoning: Story County Zoning: Story County
LUPP Government/ LUPP Agricultural/ LUPP Planned
Designation: Airport Designation: Farmstead Designation: Industrial
Greenwa
WEST y= r'. SUBJECT.ARE'* _ EAST
Jurisdiction: Ames Jurisdiction: Ames Jurisdiction: Story County
Land Use: Interstate 35 Land Use: Agricultural Land Use: Crop Production
Veterinary Land
Research
Existing Government/ Existing Agricultural (A) Existing Agricultural (Al)
Zoning: Airport(G-A) Zoning: Planned Ind.(PI) Zoning: Story County
LUPP Government/ LUPP Regional LUPP Planned
Designation: Airport Designation: Commercial Designation: Industrial
SOUTHWEST SOUTH SOUTHEAST
Jurisdiction: Ames Jurisdiction: Ames Jurisdiction: Story County
Land Use: Interstate 35 Land Use: UP RR Tracks Land Use: Crop Production
Industrial Industrial
Existing General Existing Planned Existing Agricultural(Al)
Zoning: Industrial (GI) Zoning: Industrial (PI) Zoning: Story County
LUPP General LUPP Planned LUPP Agricultural/
Designation: Industrial Designation: Industrial Designation: Farmstead
3
Infrastructure/Public FacilitieslEmergency Response. The following table is a
description of the infrastructure, public facilities,'and emergency response that will serve
the subject property.
Transportation Development of the subject property will require the developer to
make improvements as specified in the Zoning Agreement.
Bike path construction_will be required along East 13t' Street,
inside the boundaries of the subject property. This will be
addressed in the Zoning Agreement.
Cy-Ride Future development of the area will likely create the need for a
new Cy-Ride bus route on East 13t' to the Planned Regional
Commercial (PRC)site. The decision to ultimately serve the area
rests with the Transit Board.
Electric The subject property is located outside of the service territory for
the City of Ames Municipal Electric service. Upgrades, including
substation improvements, will be necessary by the electric
provider that serves this area.
Water Existing water service will be extended into the subject area.
This will be addressed in the Zoning Agreement and as part of
the subdivision review process.
Sanitary Sewer Existing sanitary sewer service will be extended into the subject
area. This will be addressed in the Zoning Agreement and as
part of the subdivision review process.
4
Storm Sewer The natural drainage of the area east of Interstate 35 is from
north to south, away from Ketelsen Marsh. The USGS map
identifies a designated waterway draining from the marsh, south
through the subject property. Any alteration or management of
this waterway must comply with IDNR and Army Corps of
Engineers requirements.
There is an undefined flood plain in the southeast portion of the
subject area. All construction on the site will be subject to a
NPDES permit with permanent controls for storm water quantity
and quality.
Future development in the area will require special attention to
soil erosion,water pollution, and other harmful effects associated
with storm water run-off. Measures to contain the quantity of
storm water run-off and improve its quality before it is released
south and downstream into natural areas will be required of future
development.
Future development will assure that run-off will be collected and
controlled through a system of surface drainage, subsurface
sewers, and storm water detention areas. Storm water quality
and quantity will be accounted for in mitigation facilities.The rate
of storm water run-off will not be increased above the
pre-development level of run-off. Any proposed development
within the subject area will require-preparation of a storm water
management plan by the developer.
Fire/Emergency The City's fire response time goal is to have 85%of the land area
Response of the city within a maximum fire response time of five minutes.
The calculated average response time from Fire Station#1 to the
subject property is five minutes. This will place the response
generally within the City's response time goal.
Mary Greeley Medical Center will provide ambulance service to
the development. Response time from Mary Greeley is also
approximately five minutes.
5
Land Use Policy Plan (LUPP). The following is an analysis of goals and policies of the
LUPP that apply to rezoning of the subject property to PRC (Planned Regional
Commercial):
Goal 1. Recognizing that additional population and economic growth is likely, it is the goal
of Ames to plan for and manage growth within the context of the community's capacity and
preferences. It is the further goal of the community to manage its growth so that it is more
sustainable, predictable, and assures quality of life.
• Zoning is an effective way of assuring that development occurs in a manner consistent
with the Land Use Policy Plan (LUPP).
Objective 1A. Ames seeks to diversify the economy and create a more regional
employment and market base. While continuing to support its existing economic activities,
the community seeks to broaden the range of private and public investment.
• The LUPP and the Commercial Land Needs Assessment report indicate a need for
commercial expansion. The subject area is identified as a sustainable location for
regional commercial growth. Rezoning to PRC would further the City's ability to manage
the land resources and support future economic activities that could broaden the range
of private and public investment in the City of Ames.
Objective 1 B. Ames seeks to integrate its growth with an economic development strategy
for the Central Iowa region.
• The Central Iowa region depends on the services that the City of Ames provides.
Employment, medical, commercial, and industrial activities within the City of Ames
maintain the health of the surrounding Central Iowa region. Rezoning to PRC could
reserve necessary land resources for future regional commercial opportunities in
Central Iowa.
Goal 2. In preparing for the target population and employment growth, it is the goal of
Ames to assure the adequate provision and availability of developable land. It is the further
goal of the community to guide the character, location, and compatibility of growth with the
area's natural resources and rural areas.
• The subject area is represented on the City's Land Use Policy Plan Map as an area that
can accommodate regional development. Rezoning of the subject area to PRC would
give the City the ability to assure that future growth in the area is compatible and in
character with the City's future expectations.
6
Objective 2A. Ames seeks to provide between 3,000 and 3,500 acres of additional
developable land within the present City and Planning Area by the year 2030. Since the
potential demand exceeds the supply within the current corporate limits, alternate sources
shall be sought by the community through limited intensification of existing areas while
concentrating on the annexation and development of new areas. The use of existing and
new areas should be selective rather than general.
• The supply of land for regional commercial development is limited within the existing
corporate limits. There are very few locations in Ames that can accommodate regional
scale commercial land uses (100,000 square feet buildings, 15-20 acre pad sites). In
order to meet future needs, absent of large scale clearance and redevelopment of
existing development, land must be made available at the fringe of the community,
preferably where good regional access can be provided. The applicant's proposal is
consistent with this objective in that it seeks development where it is most appropriate
and as designated on the Land Use Policy Plan Map. It is in keeping with the City's
adopted policy for regional commercial growth.
Objective 2B. Ames seeks to assure the availability of sufficient suitable land resources to
accommodate the range of land uses that are planned to meet growth. Sufficient land
resources shall be sought to eliminate market constraints.
• Without regional commercial expansion,the community will be short of the commercial
services necessary to serve its citizens and the region. In order to eliminate future
market constraints, it is essential that the community plans for and reserves necessary
land resources for expansion.The rezoning proposal provides a suitable location that is
consistent with the Land Use Policy Plan Map and provides suitable land area to
address future market constraints.
• Rezoning to Planned Regional Commercial would further the implementation measure
in the Land Use Policy Plan that states, "The most critical areas for commercial and
industrial annexation include the following: Regional Commercial/Planned Industrial
proposed areas east of 1-35." (Page 120, LUPP)
Objective 2C. Ames seeks a development process that achieves greater compatibility
among new and existing development.
• Zoning assures that a development process achieves greater compatibility among new
and existing development.
• In order to assure future compatibility, design standards and guidelines have been
adopted for application to the subject property at the time of rezoning, as an overlay
zoning district described as the: O-GNE (Northeast Gateway Overlay) District.
7
Objective 2D. Ames seeks a development process that achieves greater conservation of
natural resources and compatibility between development and the environment.
• In order for the City of Ames to assure that future development in the area achieves
greater conservation of natural resources and compatibility between development and
the environment, the land must be under City of Ames zoning regulation for regional
commercial development. The PRC Zoning Classification and O-GNE Overlay enables
the City to impose building placement standards, lighting standards, buffer systems,
and other mitigation measures on land in the subject area.
Goal 3. It is the goal of Ames to assure that it is an "environmentally-friendly" community
and that ail goals and objectives are integrated with this common goal. In continuing to
serve as a concentrated area for human habitat and economic activity,Ames seeks to be
compatible with its ecological systems in creating an environmentally sustainable
community.
• Future regional commercial land uses in the subject area will be integrated into the
natural environment and required to mitigate harmful impacts to the surrounding
ecosystem.
Goal 4. It is the goal of Ames to create a greater sense of place and connectivity,
physically and psychologically, in building a neighborhood and overall community identity
and spirit. It is the further goal of the community to assure a more healthy, safe and
attractive environment.
• Future development in the subject area should take into account architectural quality,
site aesthetics, and community identity. This can most effectively be achieved by the
City of Ames if the area is zoned as PRC and the O-GNE design standards and
guidelines are applied to the development.
Goal 5. It is the goal of Ames to establish a cost-effective and efficient growth pattern for
development in new areas and in a limited number of existing areas for intensification. It is
a further goal of the community to link the timing of development with the installation of
public infrastructure including utilities, multi-model transportation system, parks, and open
space.
• As land is annexed into the City, it may be zoned as Agricultural. Rezoning is then
necessary, prior to development, to bring the subject property into conformance with
the LUPP Map designation.
Objective 5A. Ames seeks to establish priority areas for growth in which there are
adequate and available land resources and infrastructure to meet the major development
requirements through the year 2030.
• The subject area is adjacent to infrastructure that can be extended into the area by the
developer. There are adequate land resources included in the area proposed for
rezoning to meet the City's land resources needs for regional commercial growth
through the year 2030.
8
Objective 5B. Ames seeks to attract public and private capital investment in the priority
areas for growth on a concurrency basis (i.e. having infrastructure available at the time of
development approval). Public capital improvements (e.g. trunk sewer lines and a major
street system)could be used to leverage the location of development and the availability of
land.
• As indicated in the Industrial Study, the subject area is inclose proximity for extension
of urban infrastructure (water, sewer, streets). Per the Zoning Agreement, the vast
majority of these public improvements will be bome by the developer.
Objective 5C. Ames seeks the continuance of development in emerging and infill areas
where there is existing public infrastructure and where capacity permits.
• With the exception of the subject property,there are no infill areas within the community
that can provide the needed land area, accessibility, and the necessary public
infrastructure capacity to sustain substantial regional commercial expansion without
demolition and clearance of existing structures in good condition.
Goal 7. It is the goal of Ames to provide greater mobility through more efficient use of
personal automobiles and enhanced availability of an integrated system including
alternative modes of transportation.
• Regional commercial growth requires transportation systems that can efficiently and
effectively distribute vehicular traffic in and out of the community. Therefore, the most
efficient location is at an access point to a limited access thoroughfare, such as
Interstate 35 and U.S. Highway 30. This proposal includes land area where efficiencies
can be gained by its close proximity to Interstate 35. The area provides for future
commercial development in a location that can provide greater regional mobility.
Goal 9. It is the goal of Ames to promote expansion and diversification of the economy in
creating a base that is more self-sufficient and that is more sustainable with regard to the
environment.
• Future regional commercial growth is necessary to stay in pace with the demand
associated with both the growing region and the growth from within the community. In
order for the City of Ames to accommodate regional growth, it must have land in its
inventory of adequate size to contain it. Rezoning of the subject property will provide
adequate land resources to promote regional commercial expansion. It will allow the
City of Ames to maintain enough land to meet the community's existing and future need
to establish a more self-sufficient regional commercial base.
9
Objective 9A. Ames seeks more diversified regional employment opportunities involving
technology-related services and production, office centers, and retail centers.
• Given the limited land resources for regional expansion opportunities within the
community, the expansion opportunity that exists with the subject property is essential
to meet this objective. Retail centers require sufficient land resources to provide more
diversified regional employment opportunities. The LUPP states that the subject area
should be reserved for regional commercial growth; rezoning would provide the
necessary land resources to meet this objective.
Planning and Zoning Commission Recommendation. On October 19, 2005, by a vote
of 6-0, the Planning and Zoning Commission recommended approval of the request to
rezone the subject property, generally located northeast of Interstate 35 and East 13t'
Street,from A(Agricultural)to PRC (Planned Regional Commercial), and,generally located
southeast of Interstate 35 and East 13t' Street, from A (Agricultural) to PRC (Planned
Regional Commercial), and from Pl (Planned Industrial) to PRC (Planned Regional
Commercial), with the O-GNE (Northeast Gateway Overlay) District.
ALTERNATIVES:
1. The City Council can approve the request to rezone the subject property, generally
located northeast of Interstate 35 and East 13t' Street, from A (Agricultural) to PRC
(Planned Regional Commercial), and, generally located southeast of Interstate 35 and
East 13t' Street, from A (Agricultural)to PRC (Planned Regional Commercial), and
from PI (Planned Industrial)to PRC (Planned Regional Commercial),with the O-GNE
(Northeast Gateway Overlay) District. Under this alternative,the City Clerk should be
directed not to publish the rezoning ordinance until the Developer acquires the site in
accordance with the Zoning Agreement.
2. The City Council can deny the request to rezone the subject property, generally
located northeast of Interstate 35 and East 13t' Street, from A (Agricultural)to PRC
(Planned Residential Commercial), and generally located southeast of Interstate 35
and East 13t�' Street, from A (Agricultural) to PRC (Planned Regional Commercial),
and from PI (Planned Industrial) to PRC (Planned Regional Commercial).
3. Action on this request can be postponed and referred back to City staff and/or the
applicant for additional information.
10
MANAGER'S RECOMMENDED ACTION:
City staff supports the request to rezone the subject property to PRC (Planned Regional
Commercial) for the following reasons:
1. Rezoning of the subject propertyto Planned Regional Commercial is consistentwith the
Land Use Policy Plan Map designation of Regional Commercial. The rezoning to
Planned Regional Commercial is also supported by the LUPP goals and objectives, as
described in this report.
2. Alternative locations for regional commercial expansion, of the size proposed, do not
exist in the community. Extensive redevelopment of multiple commercial sites would be
necessary to accommodate the scale of development proposed. There are no other
individual sites in the community that are suitable for such development.
3. Economic benefits to the entire community will result from development of the subject
property as a regional commercial center. New construction and permanent jobs will be
created for the local workforce. The increased value of commercial property will
contribute toward the City's ability to maintain the level of City services to all visitors and
residents of Ames. Construction of infrastructure, primarily by the developer, will
facilitate development of property designated Planned Industrial to the east of the
subject property.
4. The need for increased shopping opportunities in the City has been expressed by many
members of the community. This development could reduce the trips taken to the Des
Moines Metropolitan area by Ames' residents.
Therefore, it is the recommendation of the City Manager that Alternative # 1 be
adopted. Alternative#1 is a recommendation that the City Council approve the request to
rezone the subject property, generally located northeast of Interstate 35 and East 13"'
Street,from A(Agricultural)to PRC (Planned Regional Commercial), and generally located
southeast of Interstate 35 and East 13t' Street, from A (Agricultural) to PRC (Planned
Regional Commercial), and from PI (Planned Industrial) to PRC (Planned Regional
Commercial), with the O-GNE (Northeast Gateway Overlay) District. In addition, the City
Clerk should be directed not to publish the rezoning ordinance until the Developer acquires
the site in accordance with the Zoning Agreement.
Attachments
1.1,
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Ames Smart Growth has consistently been opposed to rezoning of the property at E 13`h Street
and I-35 for regional commercial development. We have done research, looked at national
trends, found other cities with similar situations and studied their solutions, and spent much time
talking and analyzing the rezoning issue among our members. We have tried to present facts and
rational arguments against rezoning. We would like you to consider the following points as you
try to make your own decision about rezoning.
1. Ames has shown slow, steady growth over the years. Ken Stone showed us that growth
was 10.9%form 1980 to 2000. Growth in the counties north of Ames,which is where
Wolford claims his primary market area is,have actually shown a very slow population
decline over that period. Are there any factors that would lead us to believe that we will
experience very rapid growth that would necessitate adding much more retail? We are
already opening up SE 164'Street to retail by opting to pave it. South Duff is going to grow
with the building of a super Wal-Mart. We have planned a downtown charrette to try to
revitalize the commercial area downtown. How much growth can we reasonably expect
and how much growth can we absorb?
2. Trends now are toward mixed-use development. This trend locates retail closer to where
people live and work. The National Governors Association is in favor of mixed-use
development. Each of you was given a copy of a book titled New Community
Development showing that the ideas of smart growth have been adopted by governors
across the ideological spectrum and across the country. The cities of Ankeny and Des
Moines are planning such developments. Our LUPP gives preference to village residential
which puts retail in neighborhoods.
3. The location of retail at E 13°i and I-35 would add to the city's costs,both one-time
and ongoing,recurring costs. According to an earlier staff report 7-10%of police activity
occurs at regional commercial locations. That means an increase in police costs. Cy-Ride
costs would be at least$300,000 per year to maintain a route to the site. A bike path to the
site would cost$250,000. There would be more infrastructure to maintain. We have asked
for a fiscal impact study but have not seen one. Wolford says that North Grand would fail
if he succeeds. North Grand is currently the city's largest property tax payer,as well as the
generator of the most sales tax. What happens to the city if we lose those dollars? What
will replace them?
4. There would be more traffic to disturb Ketelsen Marsh. The long-range
transportation plan proposes paving of 570"from E 13"to Bloomington Road. This is
related to additional traffic from regional commercial at that location. Commercial
development will impact the biology of the marsh but we do not know to what extent.
5. The current market study submitted by Wolford Development needs to be updated. The
size of the proposed development has changed considerably and new data is needed to
accurately reflect that change. The original plans called for almost 1.2 million square feet.
Now with the rezoning agreement, building permits will be issued with only 329,000 sq.
feet occupied. Ken Stone repeatedly said that retail is basically a fixed-sum game in Ames
because the population is not growing that quickly. On top of this,Wolford has bargained
to provide very little new retail. Thus the sales at his lifestyle center are going to be the
sales that are currently made at existing businesses in Ames. What is the gain in sales tax
income to Ames,if any, from the lifestyle center sales?
6. No economic impact study has been requested by the City Council. We do not know what
impact the proposed development will have on existing retail in Ames and surrounding
towns. Many cities require new retail over a certain square footage to prepare impact
studies so they will know if many local businesses will suffer as a result of the new
development.
7. If the Wolford lifestyle center were to be successful in causing North Grand Mall
to cease to be a viable regional commercial center then what would you want to see
that area become? Would you use public funds in the form of tax abatements or
Tax Increment Financing, as the Wolford market study suggested, to revitalize the
North Grand area? This is a cost that needs to be considered if you vote to support
the Wolford mall.
8. Have you sought real alternatives to adding all new commercial at one location
along the interstate? Are there infill locations that could serve that purpose?
Information is available on all the unused space. Again, using existing locations is
the current mainstream thinking about how to revitalize areas. People want a sense
community, not a sense of sprawl.
9. Obesity is becoming a national problem Does this development help people find
reasons to walls or bike to shopping destinations or does it make those non-
motorized options less likely given the lack of connectivity to the proposed
lifestyle center?
10. The vision for Ames is the bioeconomy. The land that you are considering for
rezoning may be much more valuable as agricultural land where crops can be
grown to be used for fuel or for food for human consumption or to be processed
for another use.
11. Gas prices are continuing to rise. World demand for oil is increasing faster than
the supply which means prices are not likely to go down. The location at E 131h
and 1-35 means that Ames residents will be paying more for gas to drive to a more
distant place to shop.
12. Experts in retail trade analysis like Dr. Kenneth Stone have determined that Ames does
not have retail leakage in most categories. The larger cities in central Iowa are all
drawing from the surrounding smaller towns. Do we want to undermine the efforts of
surrounding towns to keep at least some local retail for their residents?
Ames Smart Growth wants decisions to be based on facts and good planning principles.
STATEMENT BY AMES SMART GROWTH ON THE EAST 13TH ST. ZONING
AGREEMENT
On November 23, 2004 the City Council instructed the City Manager to negotiate a zoning
agreement with Wolford Development. This agreement was to have contained a number of
provisions that were weakened in the subsequent negotiations. Ames Smart Growth believes that
the expectations expressed by the city were reasonable,and that if Wolford Development was not
willing to accept these provisions, the city should not have been willing to surrender. Although
Ames Smart Growth is opposed to the development of commercial retail on East 13th Street, we
believe that if this development must take place, it should be held to the highest standards. The
following items are limited to issues relevant to the zoning agreement, and do not address the
other reasons that Ames Smart Growth is opposed to the development.
1. THE SIZE OF THE DEVELOPMENT. Those who want retail commercial development on
East 13th Street have expectations based on the early proposals by Wolford Development,which
called for 587,00 square feet of gross leasable area in the"mall" and 470,000 in the "power
center." The original sales projections for this development rivaled those of Jordan Creek. The
current version of the zoning agreement requires only 498,000 square feet in the"mall" (or
"lifestyle center"),with only two anchors. Of this a total of 160,000 square feet must be new to
Ames. In fact,building permits will be granted when Wolford Development has commitments
for only 329,000 sq ft, with 80,000 new to Ames, and there is very little in the way of recourse if
the remainder of the required development fails to materialize. People probably imagine certain
desirable stores being in this mall, although Wolford Development has made no announcements
about any potential leases. (They claim they cannot obtain leases until the land has been rezoned,
in spite of the fact that they did so, and announced the names, in Kalispell, Montana.) The
"power center"is not required at all,according to the current version of the zoning agreement,
although certain requirements are stated if it is built. Of course, more may be built than the -
minimum requirement,but we cannot be sure of this. For these reasons the city should reject the
current zoning agreement.
2. TAX BENEFITS OF THE DEVELOPMENT. One of the central reasons for the
development, according to those who support it,is the potential benefit in taxes(both sales and
property)to the city of Ames. Although the zoning agreement does not deal directly with this
issue,the proposed tax benefits depend on the size and nature of the development, and these are
affected by the zoning agreement. In particular, sales tax expectations are based on the 2003
market study by Strategic Edge. This study assumed a development of 700,000 square feet in the
"mall"and 470,000 square feet in the"power center," and specifically stated that its estimates
were based on the"synergy" of the entire development and should not be divided into parts(as if
the"mall,"or a portion of it,without the"power center"would bring its full share of sales tax
revenues). So even if this market study is accepted(and many have argued that it is flawed),we
have no idea what the tax benefits from the current proposal would be. In particular, the current
version of the zoning agreement redefines"retail"to include office space, which does not bring in
sales tax revenue at all. The part of the development that is not new to Ames will consist of
stores that move from their present locations in the city;their sales tax cannot be considered new
(except for any sales that may result from being located on the interstate). If there is to be a
development,it should at least do what its supporters wanted it to do. For these reasons the city
should reject the current zoning agreement.
3. UNSTATED OR UNDERSTATED COSTS OF THE DEVELOPMENT. There are many
costs to the city treasury from this proposal, and it has been suggested that these are likely to
exceed the tax benefits. Some of these costs are directly increased by the current version of the
zoning agreement(as compared to the original expectations of the city). In particular,Wolford
Development is no longer required to contribute.... toward a bike path to the development, and is
contributing only$50,000(rather than$100,000)toward the purchase of a new Cyride bus. The
bus system is partly supported by taxes,and the fund for trail and bike path development already
has projected shortfalls of$75,000 in fiscal 2004-05 and$260,000 in 05-06, without including
bike paths to the mall. Therefore both the bike path and bus service will be an additional expense
to the city in taxes under the current version of the zoning agreement. In effect Wolford
Development is asking the city council to tax the residents for transportation outside of the
current city area to the new development. Added to this will be costs for maintaining
infrastructure(such as road repairs),providing police and fire protection, increased sewage
processing, snow plowing roads, and so forth. If the same commercial development were done
in the existing city, for instance at North Grand Mall or on south Duff or downtown, the same
benefits would accrue without any of these additional costs. For these reasons the city should
reject the current zoning agreement.
4. TIME DELAYS. City staff went out of its way to meet with Wolford Development to
negotiate the terms of the zoning agreement at times convenient to the developer. City staff
waited for the lawyer chosen by Wolford Development to complete drafts of the zoning
agreement and responded to those in a timely manner. City staff then waited for Wolford
Development to agree or ask for more changes to the agreement. The delays in this process were
due to Wolford Development,not to the city. Now Wolford Development is asking for an
additional year(beyond what is stated in the current version of the zoning agreement)to complete
the leasing requirements. But changes are occurring in the city that may affect the viability of
regional commercial development on East Thirteenth Street;these include redevelopment of
North Grand Mall and new commercial development on South Duff. At the same time, other
planning decisions are being made on the assumption that the East I3th Street development will
take place. It is important for the city to have a quick resolution of this issue. The city should
reject Wolford Development's request for an extension until December 2007.
5. IS THE DEVELOPMENT A"DONE DEAL?" It has often been reported that one person or
another has called this development a"done deal." But this is the exact opposite of what has been
maintained by the city throughout the process. At each stage it was claimed that the city was
"only" changing the LUPP,or"only" annexing the land, and so forth; it was said that the time to
oppose the project would come later. But when "later" comes,the decision was made earlier and
is a done deal! In an honest government there are no"done deals"until the last vote has been
taken. Furthermore, in an honest government the votes are taken after open deliberation,in
public, so that voters can hold their representatives responsible for the decisions that are made.
Ames Smart Growth expects to hear this kind of discussion of the points made here, and in the
public input sessions,at the next city council meeting before the vote on the zoning agreement.