HomeMy WebLinkAboutA009 - Staff Reports dated November 28, 2017 and May 10, 2011 ITEM # 23
Staff Report
URBAN REVITALIZATION TAX ABATEMENT FOR GREEK HOUSING
November 28, 2017
BACKGROUND:
Justin Dodge, representing the Greek Alumni Association, is asking to initiate a tax
abatement program for new construction of Greek houses in the East University Urban
Revitalization Area. The City Council appears to have directed staff to initiate such a
change following the request of Sigma Chi in 2011, but no such changes were ever
brought back to the City Council to approve. Another Greek House, Delta Tau Delta
asked again in 2014 and the City Council declined to move forward at that time. This
report is intended to provide background information on the East University Urban
Revitalization program and seek direction from the City Council.
In 2006, the City Council created the Urban Revitalization Area for the East University
Impacted Area. This area lies east of Campustown and south of Lincoln Way and is the
home of many Greek houses. As an incentive to encourage and support adaptive reuse
of Greek houses, property tax abatement was offered to Greek houses that made
improvements that raised the assessed valuations of their buildings by 5 percent. The
final criteria, as adopted in 2006, to receive tax abatement were:
• The building is an existing or former residence recognized by Iowa State
University as part of the Greek residence system; and
• 70% of the area of existing walls of the structure will remain.
The City Council adopted the urban revitalization plan following the unanimous
recommendation of the Planning and Zoning Commission and the Historic Preservation
Commission.
On May 10, 2011, the Sigma Chi fraternity sought an allowance from the Zoning Code
to demolish their building at 2136 Lincoln Way in order to construct a new chapter
residence. At that same meeting, Sigma Chi asked for an amendment to the urban
revitalization criteria that would allow them tax abatement for the construction of their
new chapter house since the current standards allow abatement only if 70 percent of
the existing exterior walls remain.
Minutes show that the demolition was approved by the City Council on a 6-0 vote. The
City Council also approved a motion (5-1) to direct staff to amend the urban
revitalization criteria to support new construction in accordance with the following
criteria: that the building is an existing or former residence recognized by Iowa State
University as part of the Greek residence system; and that 70% of the area of existing
exterior walls of the structure will remain." No follow-up to this outstanding council
referral was made and no changes to the criteria were adopted.
1
A review of the Council video of that meeting makes clear that the City Council
wanted the Staff to bring back a proposal for the City Council to consider a new
criterion of allowing for tax abatement for new construction of Greek houses in
addition to retaining the existing criteria for renovations. The minutes, as read, do
not appear to reflect that distinction.
In February 2014, Delta Tau Delta, at 2121 Sunset Drive, also sought demolition of their
Greek house in order to construct a new house. The City Council granted that request
(4-2) upon reviewing the required findings of hardship. In September 2014, the Delta
Tau Delta asked the City Council to amend the urban revitalization criteria to
allow them to seek tax abatement for new construction. At the October 14
meeting, the City Council declined to direct staff to pursue this request (5-0-1).
STAFF COMMENTS:
The East University Impacted Zoning Overlay and the Urban Revitalization Area were
established to preserve the historic residences of the Greek neighborhoods. This is
exemplified by the Zoning Ordinance (Section 29.1110) that prohibits demolition of
structures that are or were Greek houses unless it can be established that no
reasonable use can be made and that no alternative uses are feasible. To date, four
requests for demolition of Greek houses have been submitted and approved by the City
Council. All made findings that the City Council accepted of having economic hardships
for the reuse of the existing Greek houses. Two of these, Sigma Chi and Delta Tau
Delta, have completed the demolition and constructed new Greek houses on the same
site. One, Acacia at 138 Gray Avenue, received approval of a site plan, but have not yet
demolished and started construction. The fourth was a house owned by St. Thomas
Aquinas that was last used as a Greek House in 1936. The church sought the
demolition in order to construct a parking deck.
In order to receive tax abatement under the current urban revitalization criteria, a
structure has to have been or is currently a Greek house and that any remodeling,
reconstruction, or addition has to retain 70 percent of the area of the exterior walls.
These criteria, in conjunction with the design standards of the East University Impacted
Overlay District, have allowed several Greek houses to expand. Most of these
expansions have not added significant numbers of beds, but have added mostly
amenity spaces—meeting rooms, study areas, larger dining areas, or theater spaces.
At the time of the adoption of the urban revitalization criteria in 2006, the Council Action
Form described the reaction of the Greek community to these criteria:
"Greek organizations support both the demolition provision and the Urban
Revitalization Area as a single program to manage these resources in the East
University Impacted Area. Together, these would help them preserve and update
the Greek buildings and thus keep the Greek neighborhood intact. This incentive
would also be available for interior renovation, such as is required to install fire
sprinklers as long as the value of the improvement is more than 5% of the existing
building value. Greek residents and alumni believe that without the support of tax
abatement, the zoning provision that discourages demolition would harm the
2
Greek neighborhood, because it might prevent certain Greek chapters from
continuing if they cannot afford to renovate their house."
From this, it appears that the tax abatement was clearly tied to the desires of the City
Council and the Greek community to retain the existing Greek houses and to encourage
their renovation.
At this time, Sigma Chi and Delta Tau Delta, through Mr. Dodge representing the Greek
Alumni Association, have resurrected their requests to seek tax abatement for their
newly constructed Greek houses. Both these projects saw a significant increase in
valuations in 2016. After speaking with the City Assessor, these two projects could still
be eligible for some level of abatement if the City Council amends the criteria and they
submit their application by February 1, 2018. The Iowa Administrative Code allows a
project to seek tax abatement up to two years following completion of the project but
they would forfeit the first two years of whatever abatement they were seeking (3 years
at 100 percent or five and ten years at a sliding percent). After two years, the IAC
precludes a property owner from seeking any abatement.
This request is being brought forward without an initial referral from the City
Council for two reasons. The first is that it seeks to clarify and initiate direction
already given by the City Council in 2011. The second is the time-sensitive nature
of the tax abatement process. If the criteria are not amended and an application
from the property owner is not received by February 1, 2018, the property will not
be eligible for any abatement as more than two years will have passed since the
new assessment of the completed project.
The video of the 2011 meeting makes clear that the City Council wished to consider a
proposal to add "new construction of Greek houses as an eligible criterion for tax
abatement (and not the other two options presented by staff of offering abatement if the
design of the new house exceeds the mandatory zoning standards or if the project adds
a structured parking component). Staff cannot account for why this referral was not
brought back or why Delta Tau Delta did not refer to it in 2014 when they, too, sought
tax abatement. In any case, staff supported the initial request to include new
construction of Greek houses as eligible for tax abatement as an additional
criterion in the East University Urban Revitalization Area.
If the City Council concurs, staff will return to the City Council with a resolution
amending the criteria in time for these two Greek houses to submit an application for tax
abatement prior to the February 1, 2018, deadline.
Attachments:
1. East University Urban Revitalization Area
2. East University Urban Revitalization Criteria
3. East University Urban Revitalization Abatement Schedules
4. May 10, 2011 Staff Report of Tax Abatement for New Greek House
5. Minutes of May 10, 2011
6. Delta Tau Delta request of September 18, 2014
7. Minutes of October 14, 2014
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EAST UNIVERSITY URBAN REVITALIZATION AREA
University Area
Urban Revitalization Areas
Legend
OAKL AND$T Ij O
1 N Q Urban Revitalization Areas
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Overlay Zoning District
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Approved by = ',QRM ST CESSNASt SaTH ST
u r Ames City Council
April 25,2006
4
EXISTING EAST UNIVERSITY URBAN REVITALIZATION CRITERIA
EAST UNIVERSITY IMPACTED
REQUIRED
Existing or former residence recognized by Iowa State University as part
of the Greek Residence system.
AND
Seventy percent (701/,of of the area of the existing exterior walls of the
structure will remain.
NOTE: Sprinkler retrofit projects within this area qualify if all
improvements add 5% or more to the actual value of the property.
5
EAST UNIVERSITY URBAN REVITALIZATION ABATEMENT SCHEDULES
All qualified real estate located in the designated 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.
6
32b
STAFF REPORT
TAX ABATEMENT FOR NEW GREEK HOUSE AT 2136 LINCOLN WAY
May 10, 2011
The Beta Omicron Chapter of Sigma Chi proposes to demolish their residence at 2136
Lincoln Way and build a new chapter residence at that location. The chapter seeks tax
abatement for this project. (See attached letter.)
This property is located in the Greek house neighborhood south across Lincoln Way
from the Iowa State University campus, within the East University Impacted Urban
Revitalization Area (See Attachments A & B). Demolition of a Greek house in this
location requires that the City Council determine that specific criteria are met, including
economic hardship. A separate Council Action Form addresses an application to the
Council for permission to demolish the existing Greek house in order to construct the
proposed new residence. Generally, the applicant is making the case that the current
building does not meet the needs of current students, that it is economically more
feasible to build a new Greek house than to renovate the current house to meet these
needs, and that donors will support new construction but will not support renovation
adequately.
Setting a high standard for allowing demolition of Greek houses recognizes that the
concentration of Greek houses makes this neighborhood distinctive from the other parts
of the University Impacted Area and Ames. The East University Impacted Urban
Revitalization Area provides partial property tax abatement as an incentive to
encourage and support adaptive reuse of Greek houses. The abatement is available
under the following criteria:
• The building is an existing or former residence recognized by Iowa State
University as part of the Greek residence system; and,
• 70% of the area of existing exterior walls of the structure will remain.
This incentive is available for any improvement to a qualifying property that adds more
than 5% of the existing building value. Because City policy emphasizes
preservation in the East University Impacted Area, tax abatement is not currently
available for new construction.
All of the City's Urban Revitalization Programs provide tax abatement under the
common objective of helping development happen with qualities and characteristics that
benefit the community and that may not be built without the tax abatement. With this
overall objective in mind, the City Council could consider the following qualities and
characteristics in order to offer tax abatement:
1
A. New Construction By Greek Organizations
The proposed new Greek house will be an attractive asset for one of the most important
and attractive corridors in Ames that leads to Iowa State University. Even more
important, approval of this project will allow this Greek chapter to help this neighborhood
endure. City policies recognize that the Greek organizations are a major reason for
some of the outstanding qualities of in this neighborhood. The City Council can
structure a tax abatement policy that would apply to new construction of
residences by Greek organizations.
B. Design That Exceed Mandatory Standards
The architecture of many buildings in the area are noteworthy because of building scale,
stylized architecture, enduring materials, variety in form, richness of detail, and
attractive front landscapes. The architectural design standards in the zoning ordinance
for this area reflect these characteristics. The proposed plan for the building and site for
the Sigma Chi chapter meets these design standards and in fact exceeds the standards
in the following respects (See Attachment C):
• Building Materials: accents of stone and contrasting brick patterns,
• Building trim and detail materials: lintels, sills, finials and balustrades of
cut stone or cast concrete
• Building Form: more variation in plane of facades
• Roof types: cascading roof forms, steeper pitch, greater variety in shapes,
facing all directions
• Pedestrian entrance: cast accents around door, heavy wood door
• Windows: window proportions, segmented windows, true divided or
leaded glass panes and stone or cast lintels
If the City Council concludes that the extent to which the proposed design
exceeds the required design standards benefits the community, Council can
structure a tax abatement policy to encourage design that exceeds the mandatory
standards.
C. Providing Structured Parking
The need for parking in and around this neighborhood is an issue the City Council hears
about frequently. It is especially challenging for new construction that must meet
modern parking requirements on properties where this parking was never anticipated.
In the case of the Sigma Chi chapter, a variance allowed front yard parking to
accommodate the required parking. This approach will not always be adequate or
appropriate on other properties. In other parts of the community, structured parking has
been the best response and the City Council has offered tax abatement when parking
structures are built, such as in Campustown. The City Council can offer tax
abatement for structured parking in the East University Impacted Urban
Revitalization Area.
2
STAFF COMMENTS:
The current tax abatement policy promotes preservation of Greek houses. Staff
believes that broadening this policy to include new construction of Greek houses
could be warranted only if either combination of A and B or of A and C are
offered. It appears that the Sigma Chi proposal meets criteria A and B. If the City
Council would like to consider these criteria for tax abatement in the East
University Impacted Urban Revitalization Area, it can direct staff to prepare a
proposal to amend the tax abatement criteria to support new construction in
accordance with the combination of criteria being proposed above.
S:TLAN SWCouncil Boards Commissions\CC\Urban ReviteAUniversity Impacted-East\2136-Lincoln-tax abatement-05-10-1 I.doc
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FROM RICK BURNETT PHONE NO. : 7033229523 May. 04 2011 10:42RM P2
DPride in Our Past,
Sec wing our Future
Ames City Hall MAY - 4 2011
P.O. Box 811
Ames, Iowa 50010 CITY CLERK
CITY OF AMES•IOWA
Honorable Mayor and Members ot the (once :
Subject: Request for consideration of tax abatement for new construction
The Sigma Chi Fraternity at 2136 Lincoln Way, Ames,Iowa is planning to construct a new Chapter House
at the Lincoln Way location.
We are aware of a tax abatement program for renovation projects In the East University m pactednder Area current
(O-UIE), East RH District of Ames. We understand that we do not qualify for this prog
rules because our project is new construction.
We would ask for consideration to participate In this program and would like to know what can be done
to qualify. The start date for our project is approximately June 1;Z012 with completion In July 2013.
Sigma Chi has chosen to construct an entirely new Chapter House rather than renovate the existing
structure for the following reasons:
• Cost- due to the age, condition and design of the current house a renovation would cost
considerably more than new construction.
The ability to provide exceptional quality, appearance and livability in a newly constructed house.
• 'The lack of financial support by Alumni for a renovation.
Superior long term maintenance and operational aspects of a totally new design.
We.believe that our new Chapter House accomplishes the following which are in line with the best
interests of the City of Ames and Iowa State University.
• A.Greek residence will remain on this prominent site thus helping to maintain the character of the
area.
The building will'be of the highest quality construction and design which will improve the appearance
of this very visible gateway area.
The building will have a much higher valuation than a typical Greek house.
• The Sigma Chi fraternity will set a new high standard of quality for the Greek system.
We,respectfully ask for your consideration in this matter. Our goal in this project is to develop a top
flight.product that has long term financial stability. We.sincerely believe that this new Chapter House.;for
the Sigma Chi fraternity is of considerable benefit to the Ames community and to Iowa State University.
Res ectfully
C,*
cn� ��+.�`-ct�-Ca►� ��,�e�a 1� a-� .fox�Ia L I
Jon Hall
Corporation Board President
Beta Omicron Chapter
Sigma Chi
B@ta Omicron Chaptar.of Sigma Chi Fraternity
:R0_,e6x396 '• Ankeny,M S0021
MINUTES OF THE JOINT MEETING OF THE AMES CITY COUNCIL AND THE
HUMAN RELATIONS COMMISSION,AND
REGULAR MEETING OF THE AMES CITY COUNCIL
AMES, IOWA MAY 10,2011
Excerpt
DEMOLITION OF SIGMA CHI HOUSE AT 2136 LINCOLN WAY: Planner Benson
explained that the property is located in the Greek house neighborhood south across Lincoln
Way from the Iowa State University(ISU)campus on the southeast corner of Lincoln Way and
Gray Avenue. This property is owned by the Beta Omicron Chapter of Sigma Chi. The Sigma
Chi Fraternity house was built in 1964. This area has a special zoning classification because of
the concentration of Greek houses and because of the architecture of those houses in the
neighborhood. Therefore,the Municipal Code requires the Council to approve any demolition
of an existing or former Greek house in the East University-Impacted Area. The purpose of the
strict demolition standards in this district is to assure "....architectural compatibility with the
valued characteristics of existing structures and landscapes,such as location,height,materials,
and the appearance of variety of forms and of architectural styles..." Therefore, demolition of
existing (Greek) structures is prohibited unless "the structure cannot be used for the original
intended purpose and/or no alternative reasonable use can be identified and the property owner
can show evidence that an economic hardship will be created if the structure cannot be
removed."
Mr. Benson reported that the applicant proposed to demolish the existing Greek house and
construct a new one. The applicant provided a"case for economic hardship"that explains the
background and reasons for the proposed project. Generally, the applicant is making the case
that the current building does not meet the needs of current students,that it is economically more
feasible to build a new Greek house than to renovate the current house to meet these needs,and
that donors will support new construction but will not adequately support renovation. Planner
Benson explained that the key element in the application for"economic hardship"is the number
of people that have to live there to sustain a chapter house. There are expenses, and the house
has to have enough residents (at a charged rate) to sustain the house. The Sigma Chi Chapter
is at a point that it can no longer be sustained with the number of people living in the house. The
house no longer meets the needs of the students living there. Mr. Benson indicated that
according to the architect's proposal, it would cost $2.6 million to renovate the house. To
construct a new building would cost about$2.5 million. A brand new facility with all of the new
amenities would attract more students,and throughout the Chapter,there is much more support
for the new construction proposal.
Mr. Benson pointed out that the Sigma Chi Chapter would have to meet all of the standards of
the East University-Impacted Overlay District and City staffs evaluation of the design. Since
the Chapter hasn't gotten permission to demolish the house,site and architectural plans haven't
been fully developed. This will be a condition, subject to the City Council's approval. He
further noted that a variance from the Zoning Board of Adjustment was received to the existing
parking. The parking capacity for the house will be 50. Mr. Benson said that approval of the
demolition should be conditional upon receiving the Minor Site Development Plan along with
submittal of complete plans for a building permit application.
Doug Sharpe,managing partner with BSB Design,reported that the existing building was built
in the 1960s, and that it is in a significant location along Lincoln Way, which is the entry into
the"Greek p
.communitY " He explained more details of the new Greek house. Mr. Sharpe stated
that the Chapter is asking for the opportunity to "raise the bar" for the Greek community and
improve its property. He advised that this will also solidify the standing of the Sigma Chi
Fraternity.
Moved by Larson, seconded by Davis, to adopt RESOLUTION NO. 11-232 approving the
demolition of the Greek residence at 2136 Lincoln Way provided the following conditions are
met before the demolition permit is issued: a) a Minor Site Development Plan is approved by
the Planning and Housing Department; b) submittal of complete plans for a building permit
application consistent with the building elevations reflected on the schematic design of the
Sigma Chi Fraternity and with any applicable design standards; and, c) proof of financing for
the building as reflected on the schematic design of the Sigma Chi Fraternity is approved by the
City Attorney,
Roll Call Vote:6-0. Resolution declared adopted unanimously,signed by the Mayor,and hereby
made a portion of these minutes.
TAX ABATEMENT FOR NEW SIGMA CHI HOUSE AT 2136 LINCOLN WAY: City
Planner Jeff Benson reported that the Beta Omicron Chapter of Sigma Chi proposes to build a
new chapter residence at the 2136 Lincoln Way location, and the chapter seeks tax abatement
for this project. Generally, the applicant is making the case that the current building does not
meet the needs of current students, that it is economically more feasible to build a new Greek
house than to renovate the current house to meet these needs, and that donors will support new
construction, but will not support renovation adequately.
Setting a high standard for allowing demolition of Greek houses recognizes that the
concentration of Greek houses makes the neighborhood distinctive from other parts of the
University-Impacted Area. The East University-Impacted Urban Revitalization Area provides
partial property tax abatement as an incentive to encourage and support adaptive reuse of Greek
houses. This incentive is available for any improvement to a qualifying property that adds more
than 5%of the existing building value,but because City policy emphasizes preservation in the
East University-Impacted Area, tax abatement is not currently available for new construction.
Mr. Benson stated that the reasoning behind this is to be consistent with the City's goals and
policies for this area,in that it is a Greek neighborhood. It is a benefit to the community to have
a Greek house remain in the neighborhood rather than having the property turn over to some
other use. He said that by approving the tax abatement,it would be done as an incentive to keep
the Greek Chapter at its current location. Through the City's various tax abatement programs
around the community, staff tries to focus incentivizing qualities that projects would not have
otherwise. If the City finds that individuals are building "quality" into a project above and
beyond what is required by Code, that would be a basis for tax abatement incentives. If the
design proposed exceeds the minimum standards to a certain level, that would be incentivized
through tax abatement. Mr. Benson further indicated that if parking is provided through a
parking structure, as is done throughout Campustown, and if a party performs a development
that adheres to the Code and provides the required parking in a"structure,"tax abatement can
also be provided in these situations.
Council Member Larson asked if the current facility has installed a sprinkler system yet. It was
reported that the system was installed back in 1994. He said that this project would be worthy
of a tax abatement. He said that the assessed value for property taxes will bring a much more
attractive facility to the area.
2
Moved b Larson seconded b Maha ni directing staff to prepare a proposal to amend the tax
Y � Y Y � g p p
' n in accordance with the followin
g criteria:that the
abatement criteria to support new construction g
building is an existing or former residence recognized by Iowa State University as part of the
Greek residence system;and,that 70%of the area of existing exterior walls of the structure will
remain.
Council Member Wacha advised that tax abatement is in place for the renovation of existing
buildings. He said that this is the new construction of the fraternity and that it goes above and
beyond the minimum standards. Council Member Wacha stated that he didn't like setting a
precedent that would allow tax payers money to pay for that"above and beyond" use.
Council Member Goodman said that he was not a strong supporter of tax abatement in most
situations. However,it comes down to whether or not there is an appreciable community benefit
to the subsidy. In this case, he feels that there is.
Vote on Motion: 5-1. Voting Aye: Davis, Goodman, Larson, Mahayni, Orazem. Voting Nay:
Wacha. Motion declared carried.
COUNCIL COMMENTS: Council Member Larson requested that staff update the Council on the
proposed Flood Buy-Out through the Hazard Mitigation Grant Program. City Manager Schainker
indicated that it could be placed on the Council's next agenda.
Moved by Larson, seconded by Wacha, to refer to staff the letter from the Ames Chamber of
Commerce and the Ames Economic Development Commission regarding infrastructure costs
associated with annexation of approximately 630 acres of property along East Lincoln Way.
Vote on Motion: 6-0. Motion declared carried unanimously.
Moved by Wacha, seconded by Goodman, to refer to staff the letter from Manatt's, Inc.,
regarding the portable concrete plant located at the Cyclone Truck Stop (1811 South Dayton
Avenue).
Vote on Motion: 6-0. Motion declared carried unanimously.
Mayor Campbell reported that County Auditor Lucy Martin is willing to speak to the Council
about the City's redistricting since the Census. The Council is interested in hearing her report.
ADJOURNMENT: Moved by Davis to adjourn the meeting at 10:21 p.m.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Jill L. Ripperger, Recording Secretary
3
a
ru
Gamma Pi of Delta Tau Delta Inc.
September 18,2014
Honorable Mayor and Honorable Members CITY MANAGER'S OFFICE
of the Ames City Council
City of Ames
Room 238,City Hall SEP 2 2 2014
515 Clark Ave.
Ames, 1A 50014
CITY OF AMES, to A
Re: Request for Tax Abatement at 2121 Sunset Drive
Dear Mayor and Council Members:
The Delta Tau Delta fraternity building is located at 2121Sunset Drive and located in the East
University Impacted Area and the Historic Greek Neighborhood. Over the last 9-months we have
been working with the Ames Planning and Zoning department to finalize the site plan for a new
structure as well as parking variances to comply with current zoning requirements. The site plan was
approved and the zoning variances have been granted. We received approval from the City Council in
February 2014 to demolish the existing building structure and construct a new building for the
fraternity on the same site. The demolition was completed in July/August of this year and
construction of the new building has begun. In consideration of the substantial investment in the new
building,we are requesting a property tax abatement be granted for the new building.
Guided by the Land Use Policy Plan(LUPP)and subarea plan for the University impacted Area
(UTA), we are submitting this request to establish new criteria to help support our protect, and possibly
support other Greek housing corporations that might invest in remodelling of existing structures or
construct entirely new structures. The UTA calls out for the City to support investments that preserve
or enhance the neighborhood through property tax abatement(Page 8, UTA, 2005). See attached letter
and supporting pages from the LUPP and UTA. The current version of the plan for the Historic Greek
neighborhood grants consideration of tax abatement only for remodeling of existing structures.
In 2012,the Gamma Pi of Delta Tau Delta house corporation conducted a feasibility study with RDG
Planning and Design in Ames on options for either an extensive remodeling of our existing 1952
building or starting over with a completely new building on the same site. That analysis lead us to a
decision for demolition of the existing structure and constructing a new building as the most economic
viable alternative. The Gamma Pi Chapter of Delta Tau Delta was the first fraternity on the lowa State
campus in 1875 and we've had a continous presence on campus since 1911. Our current building
housed 56 students and the new building will house 64. We had made substantial investments in the
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existing structure since 1952, including a major addition in 1971,additional internal remodeling in 1990-
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1994, and the addition of full facility fire sprinkling in 2007-2008. However,when considering current
building codes,a remodel of the exising structure was going to be cost prohibitive when compared with a
new structure. The new building will be 100%compliant with the current building code(IBC 2012)and
will also be 100%ADA compliant.
We do understand the current policy in effect(Page 6—East UTA RevialiIiazation Plan)limits tax
abatement for situations in which:
a. Existing or former residences recognized by Iowa State University as part of the Greek Residence
system.
AND
b. Seventy percent(70%)of the area of the existing exterior walls of the structure will remain.
In our case,we are replacing an older fraternity structure with a new fraternity structure on the same site.
The old structure no longer met the architectural standards for the East University Impacted Area and the
cost to bring it into compliance as well as configuring the old building with an extensive remodel to meet
current building codes was not economically feasible. An extensive remodel would also been very
difficult from a structural perspective and leaving 70%of the 1951 original structure and 1971 addition in
place would limit future programmatic use in the building. A copy of the current application packet for
the"University Area Urban Revitalization Program"is enclosed as a point of reference for this letter.
Under the current criteria,as noted above,our current project would not meet the criteria for
consideration of a tax abatement.
A building permit for the new structure has been granted and,as noted above,construction of the new
building has begun. The building will be complete and ready for occupancy by August 1, 2015. The new
building has been designed in acordance with the architectural and site development standards established
for the East University Impacted Area. We realize the timeline for consideration of a tax abatement might
take 4-5 months and we are asking for your consideration in the last part of this year.
We are requesting your consideration of an abatement schedule similar to what is currently in place for
the East University Impacted Area. A tax abatetment in the early years of our project will provide a
financial buffer for the annual operations of the facility during the time the remainder of the capital
campaign contibutions from alumni are received. The total construction cost for the project is$6.3
million, not including soft costs for engineering and architectural.
The new building will be a great addition to the Greek neighborhood and a great facility for the young
men who will reside there over the next 80-years. A set of before and after illustrations are enclosed with
this letter.
My contact information,as well as our corporate address,are included below.
Stephen E. Jones,P.E.
President,Garnma Pi Delta Tau Delta Inc.
30530 Doe Circle
Huxley, IA 50124
515-450-0311; s6on�t41e.,edu
2
Charles Safris
Gamma Pi Delta Tau Delta, Inc. (corporate address)
4107 Greenview
Urbandale, IA 50322
515-276-2996; ,,�il.'ris,'iiaiiiac.coiii
Thank you for your consideration of this request.
in r Y,
LXVA
Step o t%s, P.E.
President
Gamma Pi of Delta Tau Delta,Inc.
Enclosure: Sub-area Plan for the University Impacted Area.
cc: Steve Schainker,City Manager,City of Ames
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MINUTES OF THE JOINT MEETING OF THE AMES CITY COUNCIL
AND ELECTRIC UTILITY OPERATIONS REVIEW & ADVISORY BOARD
AND REGULAR MEETING OF THE AMES CITY COUNCIL
AMES, IOWA OCTOBER 14, 2014
Excerpt
COUNCIL COMMENTS: ...
Moved by Goodman,seconded by Corrieri,to direct staff to respond to Gamma Pi of Delta Tau
Delta,Inc.,to convey that the City Council is not interested in pursuing a tax abatement program
for new construction.
Vote on Motion: 5-0-1. Voting aye: Betcher, Corrieri, Gartin, Goodman, Orazem. Voting nay:
None. Abstaining due to a conflict of interest:Nelson. Motion declared carried.
Moved by Gartin,seconded by Nelson,to refer to staff the letter from Heartland Baptist Church
to start the process for a text amendment for steeple height.
Vote on Motion: 4-2. Voting aye: Betcher, Gartin, Nelson, Orazem. Voting nay: Corrieri,
Goodman. Motion declared carried.
Moved by Gartin,seconded by Corrieri,to refer to staff to defer the request to change the LUPP
for Eastgate (Dayton/E. 13`h Street) for discussion at a later date.
Vote on Motion: 6-0. Motion declared carried unanimously.
ADJOURNMENT: Moved by Orazem to adjourn the meeting at 11:20 p.m.
Diane Voss, City Clerk Ann H. Campbell, Mayor
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