HomeMy WebLinkAboutA021 - Staff Report dated November 12, 2013 30c
Staff Report
TAX INCREMENT REBATE DEVELOPMENT AGREEMENT
WITH KINGLAND SYSTEMS
November 12, 2013
An essential step in finalizing the City's commitment to the incentive that has
conceptually been agreed to for the Campustown redevelopment project being
proposed by Kingland Systems is to prepare a Tax Increment Rebate Development
Agreement. In order to stay within the project timeframe established by Kingland, the
approval of this agreement by the City Council is scheduled for December 10, 2013. (A
previous action by the Council on this agenda set the date of hearing for this
agreement).
Prior to drafting an agreement for Kingland's consideration, staff believes it is important
to first receive direction from the City Council regarding the most significant terms of the
agreement. It should be emphasized that, since the City has been asked to provide over
$2,000,000 in incentives for the project, the Council is in a position to ask the developer
to perform above and beyond the normal requirements of the City.
Listed below are staff's suggestions for major terms to be included in the agreement.
However, it is understood that the Council might want to add to or modify this list.
• The Tax Increment Rebate Development Agreement should be for a period of
10 years or $2,064,530 in TIF rebate, whichever occurs first.
• Kingland should be required to enter into a minimum assessment agreement
at a taxable value that will assure the requested TIF rebate amount.
At the current TIF rate of 23.35297 the required minimum assessment will be
$8,840,545. In accordance with a minimum assessment, the taxable value could
be higher or increase over the term of the agreement, but could not go lower.
• Kingland should agree that it cannot apply for and is ineligible for other
abatement programs during the term of the agreement for property included in
the agreement.
• A non-appropriation clause should be included in the agreement so that the
TIF debt will not be counted against the City of Ames' debt limit.
• The agreement should be finalized by the parties in a timely manner to assure
that the base value of the property is locked in and there is no reduction in the
current level of taxable value of the property included in the urban renewal area.
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• The agreement should contain a provision to assure that any abatement or
reduction in property tax on the subject property due to the provisions of the
State of Iowa Property Tax Reform bill of 2013 be counted towards the
maximum rebate amount under the agreement.
• Ground level uses should be restricted to "Retail Sales and Service Uses" and
"Entertainment, Restaurant, and Recreation Trade Uses."
The Zoning Ordinance allows for a much broader array of commercial uses,
including offices, on first floors in the Campustown Service area. While the
City staff believes the use restrictions mentioned above are more in
keeping with the City's vision for this business district and the desires of
the students who offered input into the project, Kingland representatives
would prefer that these use restrictions be limited to the period of the tax
rebate, or ten years.
• A minimum of one tenant space on the ground floor should include pre-planned
restaurant mechanical and ventilation space and ductwork.
• The Welch Avenue building facade should include a Welch entry.
• The Lincoln Way Avenue facade should include a corner entrance near
Welch.
• A hard-scaped alternate public space near the Welch Avenue entrance should
be included.
• The Lincoln Way Avenue building facade shall have an architectural
appearance of multiple storefront bays (minimum of four).
• The Welch Avenue facade shall have the appearance of multiple storefronts
(minimum two) along the ground level.
• The ground floor may include a office lobby access from Lincoln Way.
• The site should include a minimum of 70 on-site parking spaces.
• The windows along the ground level storefronts shall remain open and clear
to allow for visibility into or through the spaces.
• A Public Safety Security Plan for lighting and surveillance cameras within the
parking areas should be provided as part of the Minor Site Plan Review.
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• If a parking deck lower level is provided, it should have secured access for
office employees (doorways and fencing).
• A Construction Management Plan should be submitted to the City prior to
demolition of the Lincoln Way buildings to coordinate on- and off-site
transportation, parking, and construction coordination issues with the general
contractor.
• A planned sign program should be submitted to the Planning and Housing
Department for review and approval prior to occupancy of a tenant space of the
building. The plan should identify intended sign locations, awnings, material, and
finishes, etc.
In addition to the provisions itemized above, there may be other elements that Council
might wish to add to this list. For example, Council may want to specify that Kingland
bring in an anchor retail tenant of a specified size, or may want to exclude specific types
of retail use within the Kingland building.
NEXT STEPS
After giving direction regarding the terms to be included in this agreement,
Council should take the following actions:
1. Direct staff to prepare a Tax Increment Rebate Development Agreement
reflecting those major issues.
2. Set December 10, 2013 as the date of public hearing for the Campustown
Tax Increment Financing Development Agreement.
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