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URBAN RENEWAL PLAN
CAMPUSTOWN URBAN RENEWAL AREA
CITY OF AMES, IOWA
November, 2013
I. INTRODUCTION
Chapter 403 of the Code of Iowa authorizes cities to establish areas within their
boundaries known as "urban renewal areas," and to exercise special powers within these areas.
The City of Ames (the "City") City has been requested by a developer to establish a new urban
renewal area.
Chapter 15A of the Code of Iowa declares that economic development is a "public
purpose" and authorizes local governments to make grants, loans, guarantees, tax incentives and
other financial assistance to private enterprise. The statute defines "economic development" as
including public investment involving the creation of new jobs and income or the retention of
existing jobs and income that would otherwise be lost.
The process by which an economic development urban renewal area may be created
begins with the preparation of an urban renewal plan for a proposed geographic area. A City's
Plan and Zoning Commission must review the plan and inform the City Council if it is consistent
with the City's general plan. All affected counties and school districts must be notified and
given an opportunity to comment on the plan. The City Council must hold a public hearing on
the urban renewal plan, following which, the Council may approve the plan.
This document is intended to serve as the Urban Renewal Plan for an urban renewal area
to be known as the Campustown Urban Renewal Area (the "Urban Renewal Area"). It is
intended that this Urban Renewal Plan will guide the City in promoting economic development
by private enterprises. This document is an Urban Renewal Plan within the meaning of Chapter
403 of the Code of Iowa, and it sets out a proposed project to be undertaken within the Urban
Renewal Area.
11. DESCRIPTION OF URBAN RENEWAL AREA
Campustown Urban Renewal Area would include 1.42 acres of property located along
Lincoln Way east of Welch Ave., property on the east side of Welch Avenue (currently
addressed as 114 Welch) and property on the west side of Stanton Ave. (currently addressed as
107 and 1 I 1 Stanton Ave). A legal description of the property is attached hereto as Exhibit A.
Following its designation as an urban renewal area, a plat of survey will be prepared
consolidating these properties.
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III. URBAN RENEWAL OBJECTIVES
The primary objectives for development within the Urban Renewal Area are:
1. To contribute to a diversified, well-balanced local economy by creating job
opportunities and strengthening the property tax base.
2. To stimulate private investment in the area known as Campustown through public
action and commitment, and to encourage job retention, growth and expansion through the use of
various incentives.
3. To provide tax increment incentives in the form of economic development
payments or other methods authorized by state law.
IV. THE PROJECT
The purpose of this Urban Renewal Plan is a response by the City to a request from a
developer known as Kingland Systems related to the construction of a facility for retail and
office uses on property located within the Urban Renewal Area. Review of the proposed project
by the developer and City staff has determined that financial assistance is required to make the
project economically viable.
V. CITY DEVELOPMENT PLANS AND POLICIES
The City has a general plan for the physical development of the City, as outlined in a
comprehensive plan document and in a zoning ordinance. The comprehensive plan document is
called the Land Use Policy Plan and includes ten goals in broad categories, as well as a number
of objectives to meet those goals. Two that more greatly influence the development of the
Campustown area are quoted below. Emphasis is added to the more pertinent passages.
Goal No. 4. It is the goal of Ames to create a greater sense of place and connectivity,
physically and psychologically, in building a neighborhood and overall community
identity and spirit. It is the further goal of the community to assure a more healthy, safe,
and attractive environment.
Objectives. In achieving an integrated community and more desirable environment,
Ames seeks the following objectives.
4.A. Ames seeks to establish more integrated and compact living/activity
areas (i.e. neighborhoods, villages) wherein daily living requirements
and amenities are provided in a readily identifiable and accessible
area. Greater emphasis is placed on the pedestrian and related
activities.
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4.13. Ames seeks to physically connect existing and new residential and
commercial areas through the association of related land uses and
provision of an intermodal transportation system.
4.C. Ames seeks to psychologically connect the various living/activity areas
through closer proximity of residential areas and supporting
commercial uses, common design elements, and inclusion of community
amenities such as parks and schools. The connections should promote
community identity.
Goal No. 5. It is the goal of Ames to establish a cost-effective and efficient growth
pattern for development in new areas and in a limited number of existing areas for
intensification. It is a further goal of the community to link the timing of development
with the installation of public infrastructure including utilities, multi-modal transportation
system,parks and open space.
S.C. Ames seeks the continuance of development in emerging and infill
areas where there is existing public infrastructure and where capacity
permits.
To support these goals and objectives the City land use policy calls for more businesses and
more housing in Campustown where they can serve the needs of people who wish to be near
ISU, including students and staff, and their families. This "intensification" is to be guided so that
new development is compatible with the existing character of the area. To that end, the City has
adopted the Sub-Area Plan for the University Impacted Area (UTA) and incorporated it as part of
the Land Use Policy Plan. The Sub-Area Plan establishes the following policies for the
development of Campustown that are relevant to the establishment of the Campustown Urban
Renewal Area.
The University Impacted Area will be a distinct, unique area within the community
with a great deal of variety in activities and appearance. It will be made up of
districts, each with a distinct character, well defined by building use, type, scale, setting,
intended activity level, and other characteristics. Compatibility will characterize
transitions among these districts.
To make good use of resources, land uses within the UTA will be intensified, while
also conserving and preserving its existing valuable characteristics by assuring
compatibility between existing and new development.
At the core, in the Campustown Service Center, buildings are the largest and residential
densities are the greatest, supporting lively commercial activity at the street level.
Building placement, design and materials reinforce a dynamic, pedestrian-friendly
neighborhood character.
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The objectives and proposed project outlined in this Urban Renewal Plan are consistent with the
above goals and policies identified and adopted as part of the City's planning process.
VI. TAX INCREMENT FINANCING PROCEDURES
Under the Iowa Urban Renewal Law, in order to assist in the development of new private
enterprises, the City may be requested to provide a property tax incentive in the form of an
agreement that returns certain incremental property tax revenues to a developer as economic
development payments. As part of the establishment of an urban renewal area, the City will
adopt an ordinance to create a tax increment district (the "TIF District"), within which the
property taxes eventually paid by new private development will be used to pay costs of urban
renewal projects, including economic development agreements. The use of these tax revenues in
this manner is known as tax increment financing ("TIF").
Depending on the date on which a TIF District is legally established and the date on
which debt is initially certified within a TIF District, an original taxable valuation is established
for the property within a TIF District, which is known as the "base valuation." The "base
valuation" is the assessed value of the taxable property in a TIF District as of January 1 of the
calendar year preceding the calendar year in which a City first certifies the amount of any
obligations payable from TIF revenues to be generated within that TIF District. When the value
of the property inside a TIF District increases by virtue of new construction or any other reason,
the difference between the base valuation and the new property value is the "tax increment" or
"incremental value."
Procedurally, after tax increment debt has been incurred within a TIF District, property
taxes levied by the city, the county, the school district and the area college against the
incremental value, with the exception of taxes levied to repay debt incurred by those jurisdictions
and the school district physical plant and equipment and instructional support levies, are
allocated by state law to the City's tax increment fund rather than to each jurisdiction. These
new tax dollars are then used to repay any tax increment obligations incurred in the Urban
Renewal Area.
VIL EFFECTIVE PERIOD
This Urban Renewal Plan will become effective upon its adoption by the City Council
and will remain in effect until it is repealed by the City Council. State law allows the collection
of incremental property taxes generated within the Urban Renewal Area for up to twenty years.
Each project or activity to which incremental property tax revenues will be devoted will be
subject to such restrictions as may be deemed necessary and appropriate by the City Council
VI IL PLAN AMENDMENTS
This Urban Renewal Plan may be amended in accordance with the procedures set forth in
Chapter 403 of the Code of Iowa in order to carry out any purposes consistent with state law.
IX. CITY DEBT INFORMATION
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Chapter 403 of the Code of Iowa requires that any urban renewal plan include certain
information with respect to City general obligation debt, ability to incur additional debt and the
amount of proposed tax increment debt to be incurred. Here is that information for this Urban
Renewal Plan and the proposed project:
CURRENT GENERAL OBLIGATION AND REVENUE BOND DEBT
Amount Outstanding
Date of Interest Originally Final As Of
General Obligation Bonds Issue Rates Issued Maturity June 30, 2013
Corporate purpose 10-2006 4.00% $ 5,285,000 06-2018 $ 2,570,000
Corporate purpose 11-2007 3.75% 9,630,000 06-2019 5,660,000
Corporate purpose 10-2008 3.75-4.15% 8,355,000 06-2020 5,435,000
Corporate purpose 10-2009 2.00-3.50% 11,165,000 06-2021 8,050,000
Corporate purpose 09-2010 2.00-2.50% 6,690,000 06-2022 5,275,000
Refunding 05-2011 2.00-3.35% 5,980,000 06-2021 3,440,000
Corporate purpose 11-2011 1.00-2.40% 6,675,000 06-2023 5,600,000
Corporate purpose 10-2012 1.50-3.00% 12,660,000 06-2032 11,815,000
Corporate purpose/refunding 07-2013 2.00-3.125% 22,540,000 06-2032 22,540,000
Total General Obligation Bonds Outstanding $ 70,385,000
Revenue Bonds
Mary Greeley Medical Center 10-2011 3.00-5.625% $65,000,000 06-2036 $ 64,540,000
Mary Greeley Medical Center 11-2012 2.07% 26,000,000 06-2027 24,545,000
Total Revenue Bonds Outstanding $ 89,085,000
TOTAL ALL BONDS OUTSTANDING 159,470,000
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CURRENT CONSTITUTIONAL DEBT LIMIT AND CAPACITY
As of the Fiscal Year Ended 6/30/2013
Total Actual Valuation $ 3,485,540,534
State Mandated Debt Limit* $ 174,277,027
City Reserve (25% Of Limit)** $ 43,569,257
Un- Reserved Debt Capacity $ 130,707,770
Total Debt Subject to Limit $ 70,385,000
Avaliable Un-Reserved Debt Capacity ($/%) $ 60,322,770 46.15%
Total Debt Capacity Available $ 103,892,027 59.61%
Notes:
*Iowa Staturory debit limit is 5 percent of total actual valuation
** City Policy reserves 25 percent of available debt capacity
Proposed Amount of Tax Increment Financing
The City intends to enter into a Tax Increment Financing (TIF) rebate agreement with the
developer of the project to provide a rebate of 100 percent of eligible incremental property taxes
for a period of ten years or an amount not to exceed$2,064,530, whichever comes first. The TIF
agreement will be structured such that the amount of the TIF rebate will not be included as debt
subject to the state mandated debt limitation.
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EXHIBIT A
LEGAL DESCRIPTION
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EXHIBIT B
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