HomeMy WebLinkAboutA003 - Council Action Form dated December 13, 2005 ITEM #: 361a"L
DATE: 12/13/05
COUNCIL ACTION FORM
SUBJECT: DETERMINING ELIGIBILITY OF A PORTION OF THE BLOCK BOUNDED
BY GRAY AVENUE, SUNSET STREET, AND BEACH AVENUE AS AN URBAN
REVITALIZATION AREA UNDER THE MULTIPLE FAMILY RESIDENTIAL CRITERIA
MATRIX, PREPARING AN URBAN REVITALIZATION PLAN,AND SETTING THE DATE
OF PUBLIC HEARING
BACKGROUND:
On October 3, 2005, the City received an application to establish an Urban Revitalization
Area, which would include six parcels bounded by Gray Avenue, Sunset Street, and Beach
Avenue (see Attachment A). In this area, a project is planned thatwill ultimately include the
demolition of all eight residential buildings, two garages, and the construction of two
multi-family residential buildings, in several phases. The first phase is underway: several
buildings have been removed and a 26-unit building is under construction. The application
materials (Attachment B) describe and illustrate this first phase project.
On July 12, 2005, the City Council denied a previous request to establish an Urban
Revitalization Area on these properties, based on the required criteria for slum and blight.
The current application is based on the criteria for underutilized properties, that the
properties have been and will be vacant.
Process for Urban Revitalization Program.
If the City Council decides to proceed, several steps are involved in establishing the Urban
Revitalization Area and receiving the partial property tax abatement:
• A resolution finding that: "rehabilitation", or "conservation", or "redevelopment", or
"economic development" of the area is necessary.
• Preparation of a "plan".
• Public hearing, after mailed notice to owners and tenants, and adoption of the
"plan".
• Enactment of an ordinance designating the area.
• Construction of a project that meets the criteria that the approved Urban
Revitalization Plan establishes for this Urban Revitalization Area.
• City approval of an application for the Urban Revitalization Program tax abatement,
for every tax year in which improvements are made in a project that meets the
criteria.
• Calculation of the value of the actual tax abatement to establish taxable value.
The City and the City Assessor are both involved, with the City establishing the Area and
Plan and confirming that a built project is eligible, and the Assessor establishing the
taxable value.
The action to be considered by the City Council at this time is to determine if the
request meets its goals and policies for the Urban Revitalization Program. If so,
then Council would direct staff to prepare the Plan and set a date of Public Hearing
on establishing an Urban Revitalization Area and Plan for the subject area.
In analyzing this request, staff uses the Criteria for Eligibility underthe Urban Revitalization
Multiple Family Residential Criteria Matrix established by the City Council (Attachment C).
Under this policy, the proposed project must meet one of the "Required" criteria and one of
the "Optional" criteria.
Required Criteria.
The two required criteria are:
• A slum and blighted condition, or
• An underutilized condition.
The applicant has indicated that the site is underutilized in that the principal
structures on the site have been or will be removed and the site will be vacant.
To be considered underutilized, the property must meet one of the criteria listed under
"Underutilized" in the left column of the Urban Revitalization Multiple Family Residential
Criteria Matrix, which are, in summary:
• Vacant or previously developed with the buildings removed
• Non-conforming with respect to the base zone (RH)
• Non-conforming with respect to the floodway fringe
• Parking ramps within 300 feet of the Downtown/Campustown Service Center
(DCSC) Zoning District
The property and proposed project do not meet any of the last three criteria. The
application is based on the first of these criteria. The subject property originally contained
eight residential buildings, some of which still exist and have residents. The buildings in
Phase I were vacant and have already been demolished. According to the applicant, the
buildings in Phase II will become vacant in the future.
The Phase I buildings have been removed. A demolition permit was issued on August 15,
2005. The application for this permit stated that demolition was expected to be complete
by August 20. A footing and foundation permit was issued on August 16, 2005, and a
building permit was issued September 14, 2005. Construction is now underway. The
"Phase I" portion of the property is therefore certainly vacant now. It may have been
vacant of residents for several weeks before demolition began, and it may have been
vacant of a building for several days before excavation and foundation work began.
2
Optional Conditions.
The applicant has selected the following two of the optional requirements of the Multiple
Family Residential Criteria Matrix:
• Brick Construction or Similar Masonry Material: 100% of the street face and 50%of
the sides of the structure shall be faced with brick or similar masonry material.
• Landscaping Beyond Required: Landscaping improvements installed at 150% of
the required landscaping standard or greater.
This analysis is based on the plans for the single proposed 26-unit condominium building in
Phase 1. The plans show that the building is to have brick and similar masonry
construction on 100% of both street faces and at least 50% of the sides of the structure
(see Attachments D and E for Building Elevations).
The landscaping requirement under the Zoning Ordinance is one landscaping unit for every
60 feet of frontage along a public street. This property would be required to have seven
units of landscaping. According to the approved landscaping plan (Attachment F), in
addition to existing trees to remain and required parking lot screening, the design has the
following landscaping units:
3 over story trees 3.0 units
80 shrubs 13.3 units
Total landscaping 16.3 units
The landscaping requirement of 150% of the required is exceeded, as the landscaping
proposed is 233% of that required under the Zoning Ordinance.
Value of Property and Tax Revenue.
The following analysis is based on these premises:
• An Urban Revitalization Area encompassing all seven existing properties as
proposed.
• Existing 2005 building and land value of the Assessor proposed building value
estimated by City staff.
• Three of the existing buildings demolished and three of the lots combined, on which
the proposed 26-unit condominium building is constructed.
• No changes in the property value or tax rate overtime are taken into consideration.
• The taxable value of the new condominium building will be subject to the residential
rollback.
The total current assessed value of all of the properties is $1,244,204, with total property
tax revenue of $37,650. The estimated value of the new condominium building is
$2,764,000. The estimated future tax revenue for the entire subject area with the new
building without abatement would be $64,775 per year.
3
The taxes abated under the three different tax schedules are listed below based on the
following estimated valuation:
Estimated building value $ 2,764,000
Existing building value $ 315,300
Estimated added value $ 2,448,700
Estimated added taxable value $ 1,174,500
Estimated Taxes Abated
Per Schedule
3-Year: $ 107,845
5-Year: $ 107,845
10-Year: $ 158,173
This analysis does not consider additional taxes abated for the second condominium
building to be developed in Phase Two.
ALTERNATIVES:
1. The City Council can determine that the Request for Designation of an Urban
Revitalization Area for a portion of the block bounded by Gray Avenue, Sunset Street,
and Beach Avenue (Phases I & II) does not meet the criteria for eligibility.
`2. The City Council can determine that the Request for Designation of an Urban
.,,Revitalization Area for a portion of the block bounded by Gray Avenue, Sunset Street,
and Beach Avenue (Phases I & II) meets the criteria for eligibility, direct staff to prepare
an Urban Revitalization Plan, and set a date of public hearing for January 24, 2006.
3. The City Council can determine that the Request for Designation of an Urban
Revitalization Area only for that portion of the block bounded by Gray Avenue, Sunset
Street, and Beach Avenue Phase I meets the criteria for eligibility, direct staff to
prepare an Urban Revitalization Plan, and set a date of public hearing for January 24,
2006.
4. The City Council can determine that the Request for Designation of an Urban
Revitalization Area for a portion of the block bounded by Gray Avenue, Sunset Street,
and Beach Avenue (Phases I & 11) does not meet the criteria for eligibility, and instruct
the staff to develop options for revising the definition of underutilized so that the original
intent of the urban revitalization program is accomplished.
4
MANAGER'S RECOMMENDED ACTION:
The City Council considered a request for Urban Revitalization Area designation for this
same property in July 2005, based on the slum and blight criteria. At that time, one of
Council's main concerns was that if this property qualifies, then very many properties in
Ames would also meet the criteria. The Council found that the proposal did not meet the
intent of the criteria and rejected the request for tax abatement.
The owner now is coming before the City Council requesting tax abatement eligibility based
on the criteria for underutilization as allowed for in the Criteria Matrix (see Attachment C).
Since the owner has committed to meeting the optional criteria for brick and landscaping,
the relevant criterion for this request centers on the definition of underutilized. The matrix
defines underutilized as properties that are vacant in an infill area that were previously
developed and had a principal structure removed. This is a difficult request for which to
provide a recommendation since only two of the seven lots in the requested area are
vacant at this time. The owner has indicated the remaining buildings in the area in question
will be vacated and removed in the future.
If the City Council desires to stick to the specific wording of the decision matrix,
Alternative #1 should be approved rejecting the owner's request for tax abatement
on all seven lots (Phase I & II).
Since the area designed on Attachment A as Phase I is vacant, it is technically in
compliance with the decision matrix. Therefore, assuming the City Council is
supportive of the exact wording of the existing matrix, it is the recommendation of
the City Manager that the City Council approve Alternative#3. This action will signify
that the Council has determined the area within Phase I only meets the eligibility
criteria, will direct staff to prepare an Urban Revitalization Plan, and will set a date of
public hearing for January 24, 2006.
The City Council members might be concerned that although the letter of the matrix is
being met, the original intent of facilitating the revitalization of deteriorated structures
and/or properties not being used to their fullest and best use is not. Under the current
wording of the matrix, there is no direction as to the length of time a property or structure
must be vacant, or the quality of the condition of the structure in order to qualify for
underutilization. Almost every property or structure, regardless of its condition, can qualify
for tax abatement as the matrix is currently written. If this is a concern of the Council,
then Alternative #4 can be approved. This action will reject the current request and
direct the staff(as was the case with the definition of slum and blight) to bring back
options for revising the decision matrix to ensure that it helps the Council better
accomplish the goal of the urban revitalization program.
Attachment
Attachment A
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,Map Prepared by Department of Planning and Housing, July 8,2005
ATTACHMENT B
REQUEST for DESIGNATION of
URBAN REVITALIZATION AREA
Application Form
1. Property Addresses & P.I.N. Numbers:
211 Beach Avenue 09-09-229-050
215 Beach Avenue 09-09-229-060
201 Beach Avenue 09-09-229-040
2008 Sunset Drive 09-09-229-030
210 Gray 09-09-229-0000
2. Legal Descriptions: Lots 1, 2, 12, 13, 14, 15, Block 2, College Height Second Addition
and Lot 1, College Heights Fourth Addition (formerly Lots 3, 4, 5,
6, 7, and the N 1/2 of Lot 8, Block 2, College Heights Second Add.)
3. Property Owner: Sunset Beach, L.C. &Armstrong Family LLC
54643 282n1 Street
Ames, 1A 50010
515.597.3810
4. Contact Person: Jon H. Chester
54643 282°d Street
Ames, IA 50010
Office: 515.597.3810
Fax: 515.597.3811
i ch e st er(a,huxcomm.net
I certify that I have submitted all the required ' ormation to apply for approval of the Request for
Designation of Urban Revitalization Area an t the information is factual.
Signed by: Date: 10-3-05
4Jonster,
ner, Sunset Beach, L.C. Armstrong Family LLC
Manager
MPLANNING
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ATTACHMENT B
Request for Designation of
Urban Revitalization Area
Criteria for Eligibility
Multiple Family Residential Criteria Matrix
Underutilized
The principal structures on the site either have been or will be removed and the site will be vacant.
The original 25 units on the site will be replaced by approximately 65-70 new multi family units.
Phase I of the project has begun on the west half of the site and will provide 26 units. Phase II will
proceed upon completion of Phase I.
Optional Criteria
Brick or Similar Material and Additional Landscaping
The Phase I building will face Gray Avenue with its
primary
Gray
building material facing Gray Avenue and Sunset Drive will betel 0%omasonr Avenue. The exterior
g texture
and color similar to 121 Beach. The rear and side elevations will contain masonry on t with he first floor
level. Landscaping will meet 150% of the required landscaping.
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"Jon Chester" To <jripperger@city.ames.ia.us>
<jchester@huxcomm.net> cc
11/22/2005 04:14 PM bcc
Subject Request for Urban Revitalization
Jon H. Chester
54643 282°d Street
Ames, IA 50010
Office: 515.597.3810
Fax: 515.597.3811
November 22, 2005
Mayor Ted Tedesco
City Council
CITY OF AMES, IOWA
Room 214, City Hall
515 Clark Street
Ames, IA 50010
Re: Request for Designation of Urban Revitalization Area
Dear Mayor Tedesco and City Council Members:
Please place our request for eligibility for the Urban Revitalization Program on the agenda for the
A,
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council meeting of December 13, 2005 for the following properties:
Property Addresses & P.I.N. Numbers:
211 Beach Avenue
09-09-229-050
215 Beach Avenue
09-09-229-060
201 Beach Avenue
09-09-229-040
2008 Sunset Drive
09-09-229-030
210 Gray
09-09-229-0000
Legal Descriptions: Lots 1, 2, 12, 13, 14,
15, Block 2, College Height Second Addition and Lot
1, College Heights Fourth Addition (formerly Lots 3,
4, 5, 6, 7, and the N 1/2 of Lot 8, Block 2, College
Heights Second Add.)
Property Owner: Sunset Beach, L.C. & Armstrong Family LLC
nd
54643 282 Street
Ames, IA 50010
515.597.3810
r
Thank you for consideration of this matter.
Jon Chester