HomeMy WebLinkAboutA002 - Council Action Form dated October 11, 2005 4 ,I
ITEM # 3`7
DATE 10/11/05
COUNCIL ACTION FORM
SUBJECT: SETTING THE DATE OF PUBLIC HEARING TO ADOPT AN URBAN
REVITALIZATION PLAN, AND TO CONDUCT THE FIRST READING OF AN
ORDINANCE ESTABLISHING THE SOMERSET TOWN CENTER WEST URBAN
REVITALIZATION AREA
BACKGROUND:
On May 24, 2005, the City of Ames received a request that the City Council designate land
for the newly created commercial area in Somerset Subdivision, west of Stange Road, as
an urban revitalization area to provide property tax exemption for retail commercial
businesses at this location. This newly created commercial area is now being platted as
Somerset Subdivision, Twentieth Addition. The proposed commercial development site is
now ready for consideration by the City Council as a new Urban Revitalization Area (URA).
The City Council established URA #7 (see attached map) in September 1997 for the
central, mixed-use portion of Somerset Subdivision. This URA allowed the use of tax
exemption for three specific uses within the district:
1. Sit-down restaurants;
2. Grocery stores; and,
3. Commercial buildings with residential on the upper floors.
An amendment to URA#7 was approved by the City Council in March 2001,which allowed
property tax exemption for all commercial uses. A three-year, 100% property tax
exemption schedule was approved for commercial uses, with the tax incentive program to
expire on May 1 , 2004.
An amendment to the Major Site Development Plan for Somerset Subdivision was
approved by the City Council in February 2005, which changed the proposed uses on a
parcel of land, including approximately 5.60 acres located on the west side of Stange
Road. The proposed land uses were changed from village apartments, village houses, and
one commercial day care site to commercial land uses.
In March 2005, the City Council approved amendments to URA#7 and the Somerset
URA (see attached map) to provide a three-year, 100% tax exemption, both
prospectively and retroactively, to buildings constructed for retail use after May 1,
2001, but prior to July 1, 2008. This is the current tax incentive program for
Somerset commercial development.
ALTERNATIVES:
1. The City Council can set November 22, 2005 as the date for a public hearing to adopt
an Urban Revitalization Plan, and to conduct the first reading of an ordinance
establishing the Town Center West Urban Revitalization Area.
2. The City Council can decide not to set the date for a public hearing on the request to
designate the Town Center West Urban Revitalization Area. The properties in the
Town Center West development are not eligible for tax abatement for improvements
made to the commercial lots, without the designation of this site as an Urban
Revitalization Area.
3. The City Council can refer this request back to staff and/or the applicant for additional
information.
MANAGER'S RECOMMENDED ACTION:
In 2001 , the City Council decided to expand the eligibility for the Urban Revitalization tax
exemption incentive to include all commercial uses in the Somerset Village. The City
Council believed this action was warranted in order to support what the Land Use Policy
declared as the preferred development option, the "Village." At that time, it appeared as
though there was limited interest in developing at Somerset, and expanding the tax
exemption eligibility was seen as a method for stimulating interest in the village concept.
The expanded eligibility was to expire after three years, presumably as a test period to
prove the success of this strategy.
It appears that this three-year tax exemption incentive for retail development in the
Somerset Subdivision has been very successful, since the commercial areas in Somerset
began to develop after the policy change was adopted. If commercial developers are to
build subsequent villages, it is important that the Somerset Village is successful.
Commercial retail development in Somerset requires compliance with extensive
architectural design standards. These standards are necessary to achieve the desired
appearance of development in this subdivision. A property tax incentive, such as that
which is available to retail development in an Urban Revitalization Area, helps to off-set the
added costs of construction associated with building materials and architectural design
details that are necessary to achieve a "Main Street" appearance. It is the hope that
designation of a new Urban Revitalization Area for the Town Center West development will
contribute to the continued development and success of Somerset Village.
Therefore, it is the recommendation of the City Manager that the City Council approve
Alternative #1 . This action recommends that the City Council set November 22, 2005 as
the date for a public hearing to adopt an Urban Revitalization Plan, and to conduct the first
reading of an ordinance establishing the Town Center West Urban Revitalization Area.
Attachments
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SSOCIATES,
REALTORS®
105 South 16th Street
Ames,1A 50010-8009
(515)233-4450-FAX(515)232-5521
MAY 2 4 2006 1:i
email:hunzikerRE@aol.com
CITV CLERi
May 23, 2005 CITY OF AMES3f,I0WA
Honorable Mayor and City Council Members
515 Clark Ave.
Ames, IA 50010
Dear Mayor and Council Members:
The Somerset Developers respectfully request tax abatement for the newly created
commercial area in Somerset, West of Stange Road. The Developers are requesting
abatement for retail commercial and not for office uses. The Developers feel it is
important for the area to develop with as many retail uses as possible rather than into an
office park. The abatement will entice small retail businesses to the area that may not
otherwise be able to afford to locate there.
Thank you in advance for your consideration.
S* cerely,
Chuck Winkleblack