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HomeMy WebLinkAboutA003 - Council Action Form dated August 28, 2007 ITEM # �Q- DATE 08/28/07 COUNCIL ACTION FORM SUBJECT: URBAN REVITALIZATION CRITERIA FOR UNIVERSITY IMPACTED AREA (UTA) WEST BACKGROUND: In July 2007, City Council referred to staff a letter from the owners of the properties at 405 and 415 Hayward Avenue requesting tax abatement to support redevelopment of this former Greek house into the Iowa House Bed and Breakfast. This would require that the City Council set up a new Urban Revitalization Program. The Iowa Code allows cities to establish Urban Revitalization Areas when the areas meet one of the following criteria: 1. Conditions exist that are detrimental to the public health, safety, or welfare. 2. Conditions exist that arrest sound growth, retard housing accommodation, constitute economic or social liability and menace public health, safety, or welfare. 3. Buildings exist needing preservation or restoration because of age, history, architecture, or significance. 4. The area has been designated an economic development area. 5. The area has been designated a housing or residential development area. For areas that meet one or more of these criteria, the City Council has previously approved eight Urban Revitalization Plans that also fulfill the indicated additional policy objectives: 1. Commercial Urban Revitalization Plan, which encourages increasing underrepresented business uses or encourage efficient use of parking areas. 2. Urban Revitalization Sprinkler Retrofitting Plan, which supports fire sprinkler systems for specified types of uses of existing buildings. 3. Somerset Urban Revitalization Plan, which encourages buildings used for retail sales and services. 4. South Lincoln Urban Revitalization Plan, which encourages commercial and mixed-use infill projects with public amenities. 5. Downtown Urban Revitalization Plan, which encourages appropriate historic styles for fagade improvements. 6. Campustown Urban Revitalization Plan, which encourages parking structures for new mixed-use buildings and adaptive reuse of older buildings. 7. East University Impacted Urban Revitalization Plan, which encourages preservation and restoration of Greek houses. 8. North Sheldon Urban Revitalization Plan, which encourages adaptive reuse of older buildings. The proposed Iowa House property at 405 and 415 Hayward Avenue is located in the West University Impacted Area. The City Council has previously adopted the following policies regarding historic resources in this area: 1 . The City's Land Use Policy Plan supports conservation measures where there is a "substantial presence of historically and architecturally significant residential structures . . ." 2. The Sub Area Plan for the University Impacted Area includes a policy for "Using the Urban Revitalization Program to support investments that preserve and reuse historic resources through property tax abatement." Because there was little historic analysis available at the time, the Sub-area Plan for the University Impacted Area only identified two specific areas where it was most likely that historic resources occur (see attached map): • Campustown Urban Revitalization Area • North Sheldon Urban Revitalization Area The Urban Revitalization Plans approved by the City Council for these two areas allows tax abatement for improvements to any building more than 50 years old if 70% of the exterior is preserved. The recent research report by Will Page, the Multiple Property Documentation Form for the Fourth Ward, has identified ten historic contexts that can be associated with historic properties in the University Impacted Area and surrounding areas of west Ames, and identifies examples of such properties. These contexts help distinguish historic buildings from old buildings. The Iowa State Historic Preservation Office and the National Park Service use these contexts to determine whether specific areas or properties meet the National Register Evaluation Criteria and are likely to be included in the National Register of Historic Places. Given this background, it would be consistent with the City's adopted policies for the City Council to establish a new program whereby properties within the West University Impacted Overlay Zoning District are eligible to be designated as an Urban Revitalization Area if they meet the following criteria: • Properties are located within the West University Impacted Overlay Zoning District, and • The National Park Service has determined that one or more of the properties has a structure(s) that meets the National Register Evaluation Criteria, and • Improvements are being made to one of the National Register eligible structures which preserve 70% or more of the area of existing exterior walls of the structure and which preserve and/or restore original or historic materials and designs. It should be noted that State law requires Urban Revitalization Areas to contain two or more properties. Should such a program be approved, the City Council would take action on each request for a new Urban Revitalization Area as it has done for Multiple Family Urban Revitalization Areas and as it currently does for Commercial Urban Revitalization Areas. 2 After the project is completed, the staff would then review the completed project and report to the City Council, which takes action annually in February to approve projects in any of the City's Urban Revitalization Areas as qualifying for tax abatement. The property owner could request a three-, five- or ten-year abatement schedule. The property at 405 and 415 Hayward Avenue meets these criteria, based on staff review of the project through the Development Review Committee process and through the variance process. (See attached National Park Service letter and project drawings.) The process to establish a new Urban Revitalization Area is to prepare a Plan and hold a public hearing, with 30 days published notice and notice to all property owners within the area, followed by City Council approval of an Urban Revitalization Area by ordinance and of an Urban Revitalization Plan by resolution. ALTERNATIVES: 1. The City Council can take the following four actions: a. Establish a new Urban Revitalization Program for properties within the West University Impacted Overlay Zoning District with the following eligibility criteria: i. Properties are located within the West University Impacted Overlay Zoning District, and ii. The National Park Service has determined that one or more of the properties has a structure(s) that meets the National Register Evaluation Criteria, and iii. Improvements are being made to one of the National Register eligible structures which preserve 70% or more of the area of existing exterior walls of the structure and which preserve and/or restore original or historic materials and designs. b. Determine that the proposed project at 405 and 415 Hayward meets these criteria c. Direct staff to prepare an Urban Revitalization Plan for 405 and 415 Hayward Avenue based on these criteria d. Set a date of public hearing for October 9, 2007 2. The City Council can deny the request for tax abatement for 405 and 415 Hayward Avenue and make no changes to the current Urban Revitalization Programs of the City. 3. The City Council can refer the request to staff for further information. MANAGER'S RECOMMENDED ACTION: In responding to this referral, staff considered the following elements: a) changes to the other Urban Revitalization Areas that already exist in the University area; b) whether this tax abatement program should be available outside the East and West University Impacted Overlay Zoning District; and 3 c) whether a qualified person should be able to provide evidence and/or an expert opinion that a property is associated with one or more historic contexts that the Multiple Property Documentation Form for the Fourth Ward report documents, instead of the National Park Service. Staff concluded that it may be premature to make tax abatement available for large areas of the community without solid evidence that a given property is historic and a clear understanding of the impact. The City is just initiating a preservation plan for the entire community that will help determine how and where to apply various preservation techniques. The City Council is also considering a grant application to support the cost of a study to provide evidence that the College Heights area south of the University is eligible for the National Register of Historic Places. All of this will provide information and understanding to guide future changes to the Urban Revitalization Programs of the City. In the meantime, the City has already adopted specific policies that support tax abatement as a tool for historic preservation in the University Impacted Areas. Where the State and Federal agencies have reviewed the evidence and determined that a property qualifies for the National Register of Historic Places, the City Council should consider tax abatement. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative #1 to take the following actions: a. Establish a new Urban Revitalization Program for properties within the West University Impacted Overlay Zoning District with the following eligibility criteria: i. Properties are located within the West University Impacted Overlay Zoning District, and ii. The National Park Service has determined that one or more of the properties has a structure(s) that meets the National Register Evaluation Criteria, and iii. Improvements are being made to one of the National Register eligible structures which preserve 70% or more of the area of existing exterior walls of the structure and which preserve and/or restore original or historic materials and designs. b. Determine that the proposed project at 405 and 415 Hayward meets these criteria c. Direct staff to prepare an Urban Revitalization Plan for 405 and 415 Hayward Avenue based on these criteria d. Set a date of public hearing for October 9, 2007 It should be noted that the City Council also directed staff to consider options for alternative uses for large residential structures such as Greek houses. Staff has completed research, including how other jurisdictions provide for uses for Greek houses, and presented a written report to the Planning and Zoning Commission. The Commission suggested that staff seek reaction to the report from the affected neighborhoods and from Greek system residents and alumni. Staff will be completing these activities in September, after which this report will be presented to the City Council. 4 K HILLTOP RD x � COLORADO AVE CIOzz � o O D r- rn m S WILMOTH AVE '.......WILMOTH AVE o z a i m ... m � o CD -0 --1 (n v cn O cn N 0 a rt N3lJ 1S3b0J 3 � N o4 (3D m STATE AVE y . r: O HOWARD AVE w0 d 0 ................ W �• � 0 0 CD °- CAMPUS AVE Z3 �+ m a ccncn • _ _ • n . cn 1 .... HYLAND AVEcc -� cn ♦ C ...�.....�........ ......................... .............. cr a 2) C Z (D i. HAYWARD AVE % � <. a N .........................,Z N. 'C WELCH AVE u C v 0 0• D °�' m .................6 ........ v < 0 STANTON AVE o > FIT N cl) D m o 0 �J 7 •••ti O cl) cn v cn LYNN AVE ......... O � C v (n a r ,< C M • (Q 'SG ASH AVE - •••••••• .. N 2• cDO < y co r♦ INCL �F c m � v Q cn O _ v D 0 co cn .............. < m O n v D ; c - 0 -0 rn m cn -4 ti. v a BEACHAVE .......•••••••••• i••••� A 2 _ O P� NT F rh�yT ip United States Department of the Interior 0 NATIONAL PARK SERVICE �4RCH s 'kg► 1849 C Street,N.W. Washington,D.C.20240 IN REPLY REFER TO. July 16,2007 Russ McCullough,Ph.D. Iowa House Building,L.L.C. 119 Stanton Avenue P.O.Box 1099 Ames,IA 50014 PROPERTY: Sigma Sigma-Delta Chi Fraternity House,401 Hayward Avenue,Ames,IA 50014 PROJECT NUMBER: 20248 TAXPAYER ID NUMBER: 25-8591518 Dear Mr. McCullough: The National Park Service has determined that the subject property appears to meet the National Register Criteria for Evaluation and will likely be listed in the National Register of Historic Places if nominated by the State Historic Preservation Officer according to the procedures set forth in 36 CFR Part 60. This determination is made in response to the Historic Preservation Certification Application--Part 1 submitted to this office. Please be advised that Federal regulations require submission of interior and exterior photographs of the building before the start of rehabilitation work. No photographs of the interior were submitted with the Part 1 application. While the four photographs of the exterior of the building are minimally sufficient for us to make this preliminary determination,these photographs do not provide enough information about the pre-rehabilitation appearance and condition of the property to evaluate a Part 2 application. Photographs showing the building interior prior to the start of the rehabilitation as well as additional photographs of the exterior must be submitted,in duplicate,to the State Historic Preservation Office with the Part 2 application. Obtaining"certified historic structure"status is the first step in qualifying for.maximum tax benefits under Federal Laws. These benefits apply only to structures that have either undergone or are about to undergo rehabilitation that can be certified in accordance with the Secretary of the Interior's"Standards for Rehabilitation." If you have any questions,please call the State Historic Preservation Office or me at(202)354-2028. 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