Loading...
HomeMy WebLinkAboutA029 - Staff Report dated November 26, 2013 22 KINGLAND SYSTEMS DEVELOPMENT USE AND DESIGN RESTRICTIONS November 26, 2013 Background: On November 12, 2013, the City Council reviewed a staff report that outlined possible terms that could be included in the Tax Increment Financing (TIF) agreement with the Kingland Systems developers. It should be emphasized that because the City has been asked to provide over $2 million in incentives for this project, the Council is in a position to ask the developer to perform above and beyond the normal requirements of the City. While there was agreement with all of the design terms suggested in this report, Kingland representatives were most concerned with the suggestion by staff that certain land use restrictions be placed on the property in perpetuity. They preferred that any use restrictions be tied to the maximum length of the incentive, ten years. In response to this impasse, the City Council directed the City staff "to work with Kingland on desired and possibly required uses and prohibited uses and a compromise on the retail use restriction." As directed, the staff completed discussions with Kingland and are now offering a new approach to this issue. In order to understand this new position, it is important to understand the following breakdown of the leasable space on the ground floor of the new building. Suite A 14,049 square feet 62% Suite B 3,195 square feet* 14% Suite C 2,770 square feet 12% Suite D 2,582 square feet 12% Total Leasable 22,596 square feet 100% Space *equipped for restaurant PROPOSED COMPROMISE REGARDING USE RESTRICTIONS The proposed compromise position involves the following three parts: 1) Until the amount of the TIF rebate to the developers equals $2,064,530 or ten years after the first TIF rebate is received by Kingland, whichever comes 1 first, the uses on the ground floor will be restricted to Retail Sales and Services and Entertainment, Restaurant, and Recreational Trade as defined in Article 5 of Chapter 29 of the Municipal Code. (See Attachment A) 2) For ten years after the amount of the TIF rebate to the developers equals $2,064,530 or ten years after the first TIF rebate is received by Kingland, whichever comes first, the uses on the ground floor for at least 17,244 square feet of the leasable space will be restricted to Retail Sales and Services and Entertainment, Restaurant, and Recreational Trade as defined in Article 5 of Chapter 29 of the Municipal Code. However, if during this ten year period a suite space on the ground floor is vacant for more than twelve consecutive months, the use restrictions will be removed for that suite; thereby, making it available for lease for any use allowed by the current Zoning Code. PROPOSED PROHIBITED USES: Kingland officials are also willing to prohibit the following uses at any time on the ground floor of their building: • Adult entertainment facilities, as defined by the Ames zoning regulations • Casino • Gambling or betting office. (This prohibition shall not apply to the incidental sale of lottery tickets for approved lotteries by a retail business.) • Firearms shooting range • Massage parlor or hot tub facility DRIVE-THROUGH PROHIBITION: Because the proposed site plan does not include a drive-through, it would not be allowed on the site unless later approved by the City Council. Even though the approved plan will not include a drive-through, Kingland officials support specifying this prohibition in the TIF agreement. DURATION OF CONTRACT: Because it has been agreed that certain prohibited uses mentioned above will never be allowed, the contract should not be terminated unless mutually agreed by the parties. However, the contract will allow for the elimination of the certain use restrictions as per the conditions identified above in paragraphs 1 and 2 in the Proposed Compromise Regarding Use Restrictions section. STAFF COMMENTS: Kingland officials have worked diligently to develop a compromise proposal that balances the desires of the City Council with the needs of potential financing 2 entities. Staff believes that the compromise being offered satisfies the Council's expectations as directed on November 12. Therefore, staff is recommending approval of the provisions described above. If the Council agrees with these proposals, along with the other issues identified in the November 12, 2013, staff report (Attachment B), a motion should be passed directing the staff to incorporate all of the concepts into a TIF agreement for approval on December 10, 2013. 3 ATTACHMENT A Retail Sales and Services—General Definition. Uses that involve the sale, lease or rental of new or used consumer products, including prepared foods,to the general public and uses providing services involving predominantly personal or business services, including repair of consumer and business goods. (Noted exceptions for trade uses of lumber yard and vehicle sales) Retail Sales: Stores selling, leasing, or renting consumer, home, and business goods including: Antiques Appliances Art Art supplies Automobile supplies (no services) Bicycles and Motorized Bicycles Books and printed material Clothing Sup Computer hardware and software sales and service Convenience Store Dry goods Electronic equipment Fabric Furniture Garden supplies Gifts Groceries Hardware Home improvements Household products Jewelry Music supplies Newspaper distribution Office machines Package liquor Pets Pet food Pharmaceuticals Plants and flowers 4 Shoes Sporting goods Stationery Tobacco products Toys Food sales (not including seating areas): Bakeries Candy Delicatessens Retail Personal, Business and Repair Services: Animal grooming salons Blueprinting and photocopying services Branch banks Business and commercial trade schools Business and management consulting services Dance or music schools Dry cleaning collection and distribution centers Emergency medical care facilities Employment agencies Hair,tanning, and personal care services Kennels Laundromats Locksmiths Martial arts instruction Office equipment rental Photo drop-off Photographic studios Quick printing Recycling drop-off Scientific and professional instrument repair Sign making Tailors Television, bicycle, motorized bicycle, clock, watch, shoe, gun, appliance and office equipment repair Upholsterers Veterinarian offices 5 Entertainment, Restaurant and Recreational Trade Definition. Facilities providing entertainment or recreation services and eating and drinking establishments. Uses Included Banquet halls Bars and taverns Billiards and pool halls Bowling alleys Catering establishments Exhibition and meeting areas (20,000 sf or less) Game arcades Health clubs and gyms Ice or roller skating rinks Indoor firing ranges Lodges and social clubs Membership clubs Movie theaters Restaurants, cafes, delicatessens (with seating areas) Swimming pools Tennis Theaters 6 ATTACHMENT B ISSUES TO BE ADDRESSED IN THE KINGLAND TIF AGREEMENT EITHER IN THE NARRATIVE OR REFLECTED IN THE APPROVED PLAN • 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 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. • 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 fapade shall have the appearance of multiple storefronts (minimum two) along the ground level. • The ground floor may include office lobby access from Lincoln Way. • The site should include a minimum of 70 on-site parking spaces. 7 • 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. • 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, materials, and finishes, etc. • The types and durations of ground level use restrictions will reflect the compromise proposal described above. s