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Home My WebLink AboutA018 - Council Action Form dated December 16, 2014 ITEM # 27 DATE: 12-16-14 COUNCIL ACTION FORM SUBJECT: SE 161h STREET URBAN REVITALIZATION PLAN AMENDMENT FOR DEERY BROTHERS BACKGROUND: On October 14, 2014, the City Council approved an amendment to the development agreement with Deery, Deery and Deery, LLC (Deery Brothers) for the properties located at 1700 SE 16th Street. The amendment substituted a new Exhibit "C" reflecting changes that occurred from the project's initial approval in October 2012 to completion of the project in October 2014. Notable alterations included less excavation for a shallower detention pond on the west side of the business, a smaller building, (now 23,611 square feet —700 square feet smaller than proposed), changes to the parking and landscaping, and changes to outdoor storage. Staff determined that all these changes met current zoning regulations at the time of the approval of the project. The development agreement was established in conjunction with an urban revitalization plan that relied upon the same development plan exhibits as part of the basis for eligibility for receiving tax abatement. Council's approval of the amendment to the development agreement necessitated a corresponding change to the urban revitalization plan for consistency. Due to requirements for public hearing notices, this amendment was not part of the October 14th meeting. Accordingly, the public notice has been published and action is now requested on amending the urban revitalization plan. The urban revitalization plan includes the information required by Code of Iowa Section 404.2(2) (included in Attachment 1) as well as the site plan (separate attachment). At this time, the Council is not making a determination of project consistency with the urban revitalization plan along with the proposed amendment. A formal determination of consistency with the tax abatement criteria (Attachment 2) will occur upon the property owner's application for tax abatement. That Council action will likely occur in February 2015. The proposed change to the urban revitalization plan does not change the performance standards for flood mitigation required by the urban revitalization criteria. The applicant will still need to demonstrate compliance with the 1 t qualifying criteria to be eligible for tax abatement even with these changes to the site improvements. ALTERNATIVES: 1. The City Council can approve the resolution amending the urban revitalization plan for Deery Brothers. 2. The City Council can choose not to amend the Deery Brothers urban revitalization plan. MANAGER'S RECOMMENDED ACTION: At its October 14th meeting the City Council approved the changes to the site plan for Deery Brothers. These changes were the result of Deery Brothers making field changes to their development that were not consistent with the approved site plan. These changes happen in most large projects, but since this site is governed by an urban revitalization plan as well as a development agreement, the changes also need to be approved by the City Council. Deery Brothers sought and received approval of those amendments prior to the October 23, 2014 deadline as spelled out in the development agreement. This amended urban revitalization plan is a necessary follow-up to the action of the City Council in October. This action was delayed due to the statutory requirements for publication of a notice of a public hearing. Therefore, it is the recommendation of the City Manager that the City Council accept Alternative #1, thereby amending the urban revitalization plan with Deery Brothers. 2 ATTACHMENT 1: URBAN REVITALIZATION PLAN URBAN REVITALIZATION PLAN Southeast le Street First Urban Revitalization Area The following is the Urban Revitalization Plan for the Southeast 1.601 Street First Urban Revitalization Area. The plan contents are defined by Code of Iowa Section 404.2(2)and are provided below. In addition, the proposed Deery Bros' :Motors site plan is hereby made a part of this Plan. a) Legal Description: A subdivision of Parcel E, as shown on the Plat of Survey filed on September 3, 1998 at Inst. No. 98-12413, and Parcel G and Parcel 11, is shown on the Plat of Survey(Corrected)filed on February 8,2001 at hist.No.01- 01457, all being in the North Half of Section 13, Township 83 North, Range 24 West of the 5th P.M., City of Ames, Stork County, Iowa. all together containing 23.58 acres. b Existing Valuations: Address Parcel Owner Assessed Assessed Identification valmition Valuation Number Land Buildings 1400 SE 16 Street 09-13-100-215 Pyle Land.LLC $9,100 $0 c/o Dennis Pvle 1500 SE 16 Street 09-13-100-230 Pyle Land,LLC $8,700 $0 c/o Dennis Pyle 1598 SE 16 Street 09-13-100--245 Family Realty,LLC $21,7(K) $0 ci Dennis Pvle 1698 SF,16 Street 1 (19-13-200-010 t Famil v Realty,LLC c) Owners and Addresses: Address Parcel Owner Owner Address Identification Number 1400 SE 16 Street 09-13-100-215 Pyle Land,L IX PO Box 763 c/o Dennis Pyle Ames,IA 50010 1500 SE 16 Street 79-13-100-33U Pyle Land,LLC PO Box 763 c o Dennis Pyle Ames,IA 50010 1598 SE 16 Street 09-13-100-245 Family Realty,LLC PO Box 763 c/Dennis Pyle I Ames,IA 50010 1698 SE 16 Street 09-13=_'U0010 Family Realty,LLC PO Box 763 Ames,IA 50010 d) Zoning and I.,and iises: Address Existing Zoning Existing Land Proposed Use Land Use 1400 SE 16 Street A-Agriculture, Vacant Greenway Floodway Overla 1500 SE 16'Street HOC-Highway Oriented Vacant Commercial Commercial: O-GSE-Southeast Gateway Overlay 3 ..........................._.........._.1...................................._............................_.__..._.......__............................. .._...................... ................. _..... ......_..._..................... 1598 SE 16 Street HOC•Highway Orienrted Vacant Commercial Commercial; O-GSE-Southeast Gatewa•Overlav 1698 SE 16"Street HOC-Highway Oriented Vacant Conunercial Commercial; O-(iSE-South east Gatewa•Overlay Zoning District.Boundaries GIIT r E.. i4 HOC SE 16th S rem,—......... ... HOC HOC US Highway 30 ............. 5 S-GA p .. .. .�. I ......_. _ ...... +.._.. .._.......................................... ...`-- --— — Legend N .r°rof—d Urb-ReaiiaiZ,11—Arse ��ra.p' ,ArilE!S Oty 60'.MV! a 2n 40 e) City Services: No improvement Or expatluOns of'Cky services are proposed. 4 f) z�pplicability of Revitalization: Revitalization shall be applicable only to that subset of eligible property within the above legal description that qualifies tinder the SE 16t''Street C iiteria.Watrix. g) Relocation: The plan does not require the displacement of any persons,and there will be no relocation benefits provided. h) Tax Exemption Schedule: The exemption period is for either three(3)years,five (5)years, or ten(10)years. All qualified real estate is eligible for tax exemption of the value raided by the improvements according to the terms of the exemption selected. i) Percent Increase in Value Required: The value-added requirement is a fifteen (15)percent increase in actual value. j) Federal State or Private GrrantrLoan Prograrrs for Residential Improvements: There are no grants or loans involved.There are no residential improvements proposed. SAPLAN_SHR\Urban RcYite\URA PlanSSE_16th'Deay_Plan.docx 5 ATTACHMENT 2: TAX ABATEMENT CRITERIA URBAN REVITIALIZATION POLICY Southeast 16th Street The City Council will consider establishing Urban Revitalization Areas and Plans for properties that meet all of the following qualifying criteria: 1. The properties have frontage on Southeast 16`"Street between South Duff Avenue and South Dayton Avenue. 2. Fill or other flood proofing will be placed on the site up to an elevation of, at least, 887 feet (NGVD29), when an engineer registered in Iowa provides written certification that raising the land would result in "no rise" to the Base Flood Elevation (100 year flood level). 3. The cost incurred after making the request for tax abatement for the placement of fill for flood proofing up to an elevation of 887 feet or above and/or channel improvements (See Criterion 6),if applicable,is expected to be equal to or greater than the value of the City's portion of the tax abatement. 4. A public sidewalk is to be constructed along the south side of the Southeast 16th Street adjacent to the property. 5. The property will be used for uses permitted in the applicable zoning district except for the following as further defined and described in the Ames Zoning Ordinance: a. Wholesale trade b. Mini-storage warehouse facilities c. Transportation,communications,and utility uses d. Institutional uses e. Adult entertainment businesses f. Detention facilities g. Agricultural or industrial equipment sales h. Agricultural and farm related activities 6. Owners of property abutting a river must perform channel improvements (widening, straightening,clearing,etc.)and provide certification from an engineer registered in Iowa that the improvements will mitigate flooding. These improvements must be approved by the DNR,Army Corps of Engineers,and the City of Ames. Since satisfaction of criterion 3,5,and 6 cannot be guaranteed at the time of approving the tax abatement incentive, a developer agreement prior to the approval of the Urban Revitalization Plan will be required to assure that the City will repaid an amount equal to the tax abatement received for any criterion not met. In addition,the developer agreement should require that the conditions that allowed the determination of"no rise"be maintained by the property owner. (Approved by Ames City Council on June 12,2012) 6